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AI Hype Is Hiding Signs of a Recession

Author

Saidul Islam
September 15, 2025

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Welcome back to BrainBuzz

Today’s Recipes:

  • ⏳ AI Can Make You Live Forever...

  • 🤯 Fixing Hallucinations Could End ChatGPT as We Know It

  • ✈️ American Airlines Turns to AI to Speed Up Fares

  • How AI Can Help You Enjoy Fall Activities

  • Hackers Exploit ChatGPT to Forge IDs

  • AI Hype Is Hiding Signs of a Recession

  • AI Tutorial of the Day

  • And More….

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LATEST DEVELOPMENTS

AI 'deadbots' mimic deceased loved ones to offer comfort, but raise consent, legal, and ad-monetization risks without clear safeguards.

Key details

  1. What’s new: An AI “digital afterlife” industry now builds lifelike replicas of the dead, or “deadbots.”

  2. How it works: These bots can mimic speech patterns and distinctive facial gestures to simulate presence.

  3. The promise: Some services claim to help people cope with grief via interactive, familiar-feeling conversations.

  4. The risks: Consent and ownership are murky, who controls a person’s likeness, data, and voice after death?

  5. Monetization threat: Deadbots could be used to sell products, turning digital remains into persuasive ad channels.

  6. Regulation gap: Ethical and legal frameworks lag behind the tech’s capabilities and commercialization push.

Takeaway: Powerful grief tech without strong consent, ownership, and ad rules risks exploiting our dead, and the living.

OpenAI’s “fix” for hallucinations would boost costs and reduce confident answers, risking user drop-off and hurting consumer AI economics.

Key details

  1. What OpenAI found: LLMs are optimized to “guess” because evaluations reward test-taking, not uncertainty.

  2. Proposed fix: Penalize confident errors more than uncertainty; give partial credit for expressing doubt.

  3. Expert warning: Adding uncertainty makes models say “I don’t know” more, frustrating users and reducing engagement.

  4. Cost impact: Quantifying confidence requires extra computation across millions of queries, spiking operating costs.

  5. Business risk: Higher costs + less decisive answers could undermine already thin revenues and investor confidence.

  6. Niche exception: Stricter uncertainty may make sense in high-stakes enterprise use where errors are very costly.

  7. Core problem: Consumer incentives still favor confident, fast answers over fewer hallucinations.

The article argues incentives for consumer AI remain misaligned with reducing hallucinations, so they will persist.

Takeaway: Until incentives change, “guessing” stays cheaper and stickier, so consumer chatbots will keep hallucinating.

American will use AI to automate filing millions of fares daily, promising efficiency gains while rejecting personalized pricing of customers.

Key details

  1. Context: After criticizing Delta’s AI pricing pilot, American now explores AI for revenue management tasks.

  2. Scope: AI will help file and update “uncountable” fares multiple times per day in a dynamic market.

  3. Policy: American says it will not tailor fares to individual customer data.

  4. Rationale: Goal is time savings and faster competitive response, not letting bots set final prices.

  5. Expert view: Analysts say AI should make airlines more responsive and competitive.

  6. Beyond pricing: American is testing generative AI for faster rebooking and disruption recovery.

Takeaway: AI is coming to airfare operations for speed and scale, without personalized pricing, at least for now.

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MORE AI & TECH UPDATES

As fall arrives with its cozy charm, AI tools like ChatGPT are becoming unexpected travel planners…

A suspected North Korean hacking group known as Kimsuky has reportedly used ChatGPT to help forge a deepfake South Korean military ID as part of a phishing attack targeting journalists, researchers, and human rights activists…

Despite record-breaking stock market highs, the U.S. economy is showing clear signs of a slowdown, masked largely by investor enthusiasm for artificial intelligence…

OpenAI has signed a monumental $300 billion contract with Oracle to secure cloud computing power over five years starting in 2027, marking one of the largest cloud infrastructure deals ever…

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HOW TO AI

In a world increasingly driven by artificial intelligence, the idea of having a personalized AI assistant is no longer a futuristic fantasy.

Key Highlights:

  • Start with a Clear Purpose.

  • Leverage No-Code and Low-Code Platforms.

  • Focus on Iterative Development.

  • Prioritize Data Privacy.

  • Embrace the Power of Prompt Engineering.

  • Consider the Ethical Implications.

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