This week, AI reshaped content distribution and platform policy, as the industry faced rising tensions between innovation and safety. In today’s Madtech Daily, we discuss AliExpress, TikTok, and WeChat facing privacy complaints, Publicis’ quarter 2 growth being boosted by creative and media, as well as WPP’s campaign encouraging UK investment.

AI’s influence on news distribution deepens this week, raising fresh concerns among publishers. Google has begun rolling out AI-generated summaries in Discover, its main news feed within the Google Search app on iOS and Android. This has prompted renewed concern among publishers already grappling with declining referral traffic. The new feature replaces headlines with a carousel of publisher logos in the top-left corner accompanied by publications with AI-generated story briefs. 

AI is also quietly reshaping company structures. TripleLift has implemented a round of significant layoffs, as the digital advertising industry prepares itself for a leaner second half of the year. The creative supply-side platform reportedly reduced its workforce across multiple departments and geographies late last week. 

The European Union is however taking a firmer stance on how AI is built and governed. The EU has published its Code of Practice for general-purpose AI models, pressing ahead with implementation despite mounting pressure from tech giants and the US government. The code aims to provide clarity around obligations under the EU’s AI Act and is due to come into effect next month. It targets advanced systems such as OpenAI’s GPT-4 and Google’s Gemini, outlining requirements around copyright compliance and risk monitoring.

And as the EU looks to manage AI’s future, it’s also tackling another urgent issue: online safety for younger users. France, Spain, Italy, Denmark, and Greece are set to pilot an age verification app designed to strengthen online protections for children. The upcoming European Digital Identity Wallet will allow member states to customise its integration, either as a standalone solution or part of a national ID app. 

Similarly, Reddit has also begun rolling out age verification for UK users seeking access to mature content, in compliance with the country’s Online Safety Act. The platform is working with identity verification firm Persona to verify users through either a selfie or a photo of a government-issued ID.