In today’s Digest, we cover Walmart exploring ads for its Sparky AI shopping agent, Warner Music Group settling with an AI music firm and launching a joint venture, and YouTube trialing new feed control features.

Walmart explores ads for Sparky AI 

Walmart is testing advertising within its new AI-powered shopping assistant, Sparky, as part of a broader push to reshape digital retail experiences. Introduced to the company’s mobile app in June, Sparky functions like a conversational agent, helping users compare products, summarise reviews, and suggest items for different occasions.

Sources familiar with the initiative say Walmart has been experimenting with a format called “Sponsored Prompt,” which integrates ads directly into Sparky’s chat interface. This approach could open the door to monetising AI-driven shopping interactions, offering brands a new way to reach consumers in real time.

Warner settles with AI music firm

Warner Music Group has struck a landmark deal with AI music start-up Suno, a year after suing the company over copyright concerns. Under the agreement, Warner will allow users to create AI-generated tracks using the voices, names, and likenesses of artists who opt into the programme.

Starting next year, Suno will launch licensed models on its platform, which already boasts 100 million users. The update will introduce paid downloads for audio files, while free-tier songs remain shareable. Warner described the collaboration as the first of its kind, signalling a new era where AI and artistry converge under regulated frameworks.

YouTube trials new feed control features

YouTube is testing a new feature that gives users more control over the videos appearing in their home feed. Dubbed “Your Custom Feed,” the tool allows participants to refine recommendations by entering simple prompts, offering a conversational way to influence the platform’s algorithm.

According to YouTube, “ If you are part of the experiment, you will see ‘Your Custom Feed’ appear on your Home page as a chip besides ‘Home’. When you click into it, you can update your existing Home feed recommendations by entering a simple prompt.”