In today’s Digest, we cover Publicis raising its forecast again as AI fuels growth, California moving to govern AI chatbots, and the EU striking a compromise on sustainability reporting.

Publicis lifts forecast again as AI fuels growth

Publicis has revised its full-year organic growth forecast upward for the second time this year, citing artificial intelligence as the central force behind its accelerating performance. CEO Arthur Sadoun emphasised during a press briefing that “it is artificial intelligence that allows us to accelerate our clients' growth and to accelerate our own." With 73% of its operations now AI-powered, Publicis is positioning itself as a leader in data-driven advertising innovation. 

California moves to govern AI chatbots

California Governor Gavin Newsom has signed SB 243 into law, making the state the first in the US to mandate safety protocols for AI companion chatbots. The legislation, aimed at protecting children and vulnerable users, holds companies such as Meta, OpenAI, Character AI, and Replika legally accountable for failing to meet new safety standards. 

Governor Newsom emphasised the dual nature of emerging technologies, noting their potential to inspire and educate while also posing serious risks when left unregulated. “We’ve seen some truly horrific and tragic examples of young people harmed by unregulated tech,” he said, calling for responsible innovation that prioritises child safety. 

The law, which takes effect 1st January, 2026, requires companies to implement age verification, issue warnings about chatbot interactions, and establish protocols for addressing suicide and self-harm. It also introduces penalties up to USD$250,000 (£186,100) for those profiting from illegal deepfakes.

EU parliament reaches compromise on sustainability reporting reductions

The European Parliament’s Legal Affairs Committee has approved a plan to ease sustainability reporting rules for businesses. This move is part of the Omnibus Simplification Package, first proposed by the European Commission in February, which aims to reduce the reporting burden under two major climate-related laws: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). A final vote is expected on 20th October.

These directives were introduced under the European Green Deal to make companies report their environmental impact and take responsibility for their supply chains. But after the 2024 elections, concerns about the cost to businesses and the economy led to political pressure to scale back. The new proposal reflects that shift, aligning closely with the Council’s more business-friendly stance.

While environmental advocates had hoped for stronger commitments, the Parliament’s compromise suggests a softer approach. Once the Parliament, Council, and Commission finalise their positions, they’ll enter a “trilogue” to negotiate the final version of the law.