In today’s Digest, we discuss Google’s launch of ‘AI Mode’ in Search, EU’s investigation into TikTok’s ‘SkinnyTok’ content over potential harm to minors and TikTok Shop US staff being told to work from home amid looming layoffs, as well as the IAB’s updated digital advertising contract terms.

Google Introduces ‘AI Mode’ in Search

Google is rolling out a major update to its flagship search engine with the introduction of ‘AI mode’, a conversational feature designed to rival generative AI platforms like ChatGPT. Announced at its annual I/O developer conference in Mountain View, the update will be available to all US users and promises a more interactive, question and answer experience within Search and Chrome.

According to Alphabet CEO Sundar Pichai, as a “total reimagining of search,” AI mode shifts away from traditional link lists towards a more intuitive chatbot style interface. The move is the latest in Google’s ongoing push to integrate generative AI into its core products, even as concerns mount that the changes could undercut the company’s dominant advertising driven business model.

EU Investigates TikTok Over ‘SkinnyTok’ Harm to Minors while Layoffs Loom for US TikTok Shop Employees 

The European Commission has launched a probe into TikTok’s recommendation algorithms over concerns that its platform may be amplifying harmful content promoting extreme thinness, referred to as 'SkinnyTok'. The investigation focuses on TikTok’s compliance with the Digital Services Act (DSA), with regulators questioning how its algorithm serves up content glamorising unhealthy eating habits, including rapid weight loss, restrictive diets, and body comparison trends. 

The Commission is currently coordinating with EU member states on the matter. Commission official Gerard de Graaf Regnier said that they are taking the issue “very seriously”, signalling heightened regulatory pressure on the ByteDance-owned platform.

In response, TikTok denied targeting minors and said it applies age restrictions on content that promotes dangerous body standards, while maintaining that the platform has safety measures in place to safeguard teenage users. 

Meanwhile, TikTok has instructed employees in its US e-commerce division to work from home amid impending layoffs, as the company looks to streamline operations. In an internal memo seen by Bloomberg, Mu Qing who assumed leadership of TikTok Shop US last month, warned staff to expect “operational and personnel changes”.

The memo, distributed late Tuesday (20th May), cited the need for a “more efficient operating model” across the platform’s US e-commerce operations and global key accounts team. Mu signalled that the restructuring aims to improve performance and reduce costs.

The cuts follow a broader leadership shakeup and come amid mounting regulatory pressure on the platform’s US operations.

IAB Opens Public Comment on Updated Digital Advertising Contract Terms

The Interactive Advertising Bureau (IAB) has released a draft of its updated General Terms for Digital Advertising Agreements, opening a 60 day public comment period through 21st July, 2025. The new terms are designed to streamline contracting across the digital advertising supply chain and reflect the realities of today’s programmatic ecosystem.

Developed in collaboration with stakeholders across brands, agencies, publishers, and ad tech companies, the revision marks the first significant update to the IAB's standard terms in over two decades.“The original terms were created nearly a quarter of a century ago,” said Michael Hahn, EVP and General Counsel at IAB and IAB Tech Lab. The IAB says the updated framework aims to accelerate deal making, reduce legal friction, and foster greater flexibility to support future innovation. Feedback from across the industry is encouraged during the public comment window.