📈 Elon Musk to monetise Grok, Lib Dems push for YouTube ad regulation, and Chat GPT 5's shaky start

Elon Musk has announced plans to integrate advertising into the responses generated by Grok, the AI chatbot developed by his AI startup xAI, as part of a broader strategy to revive X’s struggling advertising business. Speaking during a live session with marketers, Musk described monetising Grok through paid suggestions as a way to offset the high costs of operating AI, particularly expensive GPUs. The move follows the departure of X CEO Linda Yaccarino and aims to further automate and refine ad targeting using xAI’s technology. X, formerly Twitter, has faced challenges with ad relevance and brand safety, worsened by controversies such as Grok’s past promotion of antisemitic content. Despite the backlash, X claims improved performance in ad auctions, lower costs, and a 40% rise in web ad conversions.

Why it matters: This shift will introduce new opportunities and challenges for marketers. While it may enhance ad targeting and revenue potential, the platform's ongoing issues with brand safety could deter some advertisers. 📰 FT

The Liberal Democrats are urging the UK government to implement stricter regulation of YouTube advertising following a surge in scams involving deepfakes, fake endorsements by public figures, and fraudulent investment schemes.

A notable example includes AI-generated ads impersonating consumer expert Martin Lewis to promote cryptocurrency scams, which have triggered widespread complaints. Additional scam ads include fake products, diet pills, and government grant schemes.

Despite increasing viewership, YouTube has surpassed ITV in weekly UK audiences, particularly among children, its ads lack real-time oversight or independent regulation unless formal complaints are made. Unlike TV ads, which must be pre-approved under ASA rules bolstered by Ofcom oversight, online ads are governed under a more lenient, voluntary tech industry framework.

Why it matters: This call for regulation highlights the growing concern among marketers about the lack of oversight and potential damage to brand trust. Stricter rules could lead to more secure and accountable advertising, which benefits both consumers and brands.📰 The Guardian

WPP, a major UK advertising group, announced a strategic shift as it prepares for leadership transition and the impacts of the AI era. Outgoing CEO Mark Read emphasised leaving the company well-positioned for future AI-driven changes. Cindy Rose, a former Microsoft executive, will assume the CEO role in September and lead a comprehensive review of WPP’s strategy and spending priorities. Amid industry challenges, including client budget reductions, AI disruption, and underperformance in China, WPP halved its interim dividend to allow flexibility for the new strategy. The company, which includes agencies like Ogilvy and VML, has faced declining revenue and a sharp drop in share value, losing over half its market capitalisation this year.

Why it matters: WPP's review signals how top agencies are preparing to integrate AI and adapt to an evolving industry landscape. Marketers should anticipate a focus on digital transformation and AI-driven efficiency. 📰 WSJ

In 2025, artificial intelligence continues to influence global industries significantly, with notable developments and mounting concerns. OpenAI has decided to release two of its chatbot AI models for free, sparking discussions in the tech community. In regulatory news, U.S. authorities, led by Transportation Secretary Sean Duffy, are investigating the growing use of AI in dynamic airline ticket pricing amid fairness concerns.

Meanwhile, in Abu Dhabi, MGX is planning to raise up to $25 billion for an AI-centered investment fund, underlining the sector's financial momentum. However, AI's rapid integration is also affecting employment, with over 10,000 job losses in the U.S. this year attributed to the technology.

Why it matters: The job impact of AI is a growing concern for marketers, particularly in industries heavily dependent on automation. As AI takes over more tasks, it’s crucial for businesses to balance innovation with workforce planning.📰 Economic Times

Digital Course Assistant is an AI-powered membership designed for online course creators, offering plug-and-play tools to speed up course building, content creation, and marketing, helping solopreneurs and small teams work smarter and scale faster.

This initiative aims to streamline the course creation process, making it more accessible and efficient for educators and entrepreneurs in the digital learning space.

By integrating AI tools, the platform seeks to enhance the quality and reach of online courses, providing creators with innovative solutions to meet the growing demand for digital education.

Why it matters: This membership model offers a new way for course creators to leverage AI tools to streamline production and marketing, making it easier for marketers to build and scale digital education products. 📰 Yahoo Finance

OpenAI's highly anticipated ChatGPT-5, unveiled on August 7, 2025, promised a leap towards artificial general intelligence (AGI). However, its rollout has been met with a mix of enthusiasm and criticism, leading to swift adjustments by OpenAI.

 Key features and enhancements
GPT-5 introduces multimodal capabilities, allowing users to interact through voice, images, and even generate code. This adds a new layer of flexibility, enabling richer user engagement with the model. Alongside these new capabilities, GPT-5 has significantly improved its reasoning skills, addressing one of the most notable limitations of earlier versions. The reduction in hallucinations means that responses are more accurate and reliable, making it a stronger tool for professionals who rely on precise data. Furthermore, GPT-5 now offers personalization options, allowing users to customize the AI's tone and style, choosing personalities like "Cynic" or "Listener." The ability to change the interface's accent colours adds another layer of personalization, catering to a wider variety of user preferences.

Controversies and user backlash
While GPT-5 has introduced impressive advancements, the rollout has not been without controversy. One of the main issues has been the 200-message weekly limit imposed on GPT-5’s Thinking model for Plus subscribers, leading to complaints from users about reduced accessibility to the new features. This has caused frustration among users who expected more robust access to the advanced model. Another significant controversy was the removal of GPT-4o, which many users preferred due to its more engaging conversational style. The absence of GPT-4o led to significant user backlash, with many expressing dissatisfaction over the more mechanical and less nuanced responses of GPT-5. Users also noted that GPT-5's performance was inconsistent at times, with some reporting less impressive conversational abilities compared to earlier models, particularly in complex, open-ended discussions.

OpenAI's response
In response to the backlash, OpenAI has made some immediate changes to improve user experience. The company has reintroduced GPT-4o for Plus subscribers, acknowledging that the model had a significant fan base due to its warmth and engaging conversational tone. OpenAI has also increased the rate limits for GPT-5, offering Plus subscribers more opportunities to interact with the advanced model without running into restrictions. Additionally, OpenAI is considering the introduction of GPT-5 Pro access for Plus subscribers, allowing limited queries to access the model's more advanced features. These changes reflect OpenAI’s attempt to balance cutting-edge AI innovation with user expectations.

Our takeaway: While GPT-5 introduces significant advancements in AI capabilities, the user backlash highlights the importance of balancing innovation with user preferences. OpenAI’s swift adjustments show they are responsive to feedback, but the challenge remains in aligning cutting-edge technology with user expectations for consistency and accessibility.📖 Read the more on Tech Radar

In this video, the creator shares a detailed breakdown of how a single YouTube video generated over $110,000 in potential leads for an AI agency within just seven days. The video delves into the strategies employed, including content creation, targeting, and engagement tactics that contributed to this impressive outcome. It's a valuable resource for marketers looking to leverage AI tools and platforms to boost lead generation and sales - Watch it here.

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