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What's up? You're reading Inclined AI. I promise this newsletter will end better than the Superbowl.

Here's our lineup:

• The cost of AI is understated

• Replika dislikes erotica

• AI is like a pigeon

• Microsoft plans to add GPT to Office Suite

Google is Dropping Dimes

It turns out that paying for AI integrations into your search engine is not cheap. In fact, Morgan Stanley estimates that Google takes a $6B hit to EBIT (earnings before interest and taxes) if 50% of queries provide a ~50-word LLM response.

That’s wordy, but the point is these models are expensive to run, and the cost rises at the scale Google is at.

No wonder they mentioned AI responses would not be automatically generated for every search engine response.

So, What’s the End Game?

A lot of business questions remain. Developing AI comes with costs, and running ChatGPT isn’t cheap either. So, monetizing these tools is important.

You should expect more data sales to companies and ads in your chats. It’s coming down the pipeline.

This is a cost you can offset, though, but companies have to respond to it, not individuals. 

The other big news from the weekend stems from reports on AI’s impact on climate. The internet contributes to 1.6 billion annual tons of greenhouse gases.

Wired reports that the efforts to integrate AI into search engines will compound this number and add to our carbon output. We all pay for that.

Data centers need a big upgrade and, in their current state, contribute to one percent of the world’s greenhouse gases. We need them bigger and better to run everyone’s recipe requests and party planning prompts.

Brace yourself; the long-term costs of AI will need to be addressed. I’m sure the companies won’t kick the can on this one…right?

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And It’s Gone

Friday, we discussed a writer dating his chat AI made by Replika. Now, the same company is backing away from its “Erotic Role Play” (ERP) offering. 

Italy barred the app in their country over a week ago and signaled that more fighting was on the way for Replika if they wanted to continue to offer ERP in the EU.

By all accounts, the removal of the adult content on Replika is now underway. This means a ton of chatbots are about to get dumped, and right before Valentine’s Day; what a shame.

More Restrictions are Coming

The Italian government will not draw the line here. Every government across the globe is debating the ethics and regulations surrounding AI.

Here’s the direct short-term issue. Many lonely people were pushed to pay for a pro-version of Replika. 

The company deployed a sexually aggressive growth campaign within their product to convince people to pay more money for ERP. Now they’re going back on their word. 

Do they get their money back? I am asking for a friend, obviously. I definitely didn’t shell out cash for the annual subscription. That would be silly.

Quick Nuggets

🐦 Pigeon brains, do they function the same as AI?

🛒 Shopify’s AI projects are starting to take shape 

😐 Welp: AI is not enough to hype up and save Appen

📎 ChatGPT-like Clippy? Microsoft wants to add AI to more tools

🎥 More women in AI, please. The film industry is struggling to make that happen

🔨 Teaching Tools: Toolformer showcases what language models can teach themselves

📷 AI, photography winner and controversial part of a recent contest

🔮 Marty! Your future depends on your ability to write prompts

💒 Matchmaker and date guider, OkCupid has a new role for ChatGPT

🎬 AI-Made Movies are here

🤖 Next-gen LLMs are being examined by Forbes

📰 Semafor persuades Prometheus to talk about the Holocaust

🔥 Fresh Products

• Chatmate - artificial people to be friends with (link)

• Kinso - product finder AI (link)

• DenoLyrics - Audio to Text lyrics (link)

• Cognify - AI app studio (link)

• AI Food Robot - Food not prepared by humans (link)

• Shello - ChatGPT in your iPhone & Mac (link)

• ChainGPT - AI-powered blockchain construction (link)

• Snape - Job description generator (link)

• Codenull - No-code AI for free (link)

• Dumme - AI creates shorts (link)

• Pictory - Video creation made easy (link)

• Opera - new AI features in the browser (link)

• Krikey - AI-generated avatars (link)

• Versy - Text-to-Space (link)

• Open Assistant - open LLM (link)

• Script Assistant - AI goes Hollywood (link)

• Perplexity AI - discover and learn faster (link)

Good Content, Sick Beats

I’m most concerned that an “Ed Sheeran” impersonation in ChatGPT is the one spitting these bars. Every line is better than anything DJ Khaled’s personally written and performed, and that’s saying something.