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AI chatbots are already being used to send custom email pitches. It shows how AI like ChatGPT may soon play a significant role in business, with companies like Salesforce and Microsoft beginning to offer tighter integration between the chatbot and their software.

A recent viral Tiktok showed how it’s possible to use ChatGPT integrated with Google Sheets to write ten custom LinkedIn messages to executives asking for a meeting. It identified different potential companies in an industry and their CEOs, and generated different outreach notes for each one, including a unique question to ask.

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“I think we’re at a very interesting inflection point of how we’ll begin to use AI in the future in our day-to-day lives that wasn’t as easily accessible even six months ago, before ChatGPT was more readily available to the public,” said Alex Klufas, a creator who makes videos focused on working in the tech industry.

The video — and previous viral posts displaying similar techniques — clearly struck a nerve, with 2.5 million views, and scores of comments asking how it worked.

Generative AI and tools using large language model (LLM) techniques like ChatGPT have led to a boom as big tech companies and startups alike race to integrate software capable of producing content that resembles something a human would write.

Few LLM-based products are actually making money. Microsoft and Google are working to integrate next-level chatbots into search engines. Companies are working on using these bots to write marketing copy or computer code.

There’s one particularly promising application that could be commercialized in the near future: Using the power of a chatbot to quickly write and automate emails with a little bit of personalization, perhaps for sales, marketing, or personal networking. Microsoft and Salesforce announced new products this week with that exact feature.

Financial analysts at Credit Suisse pointed to email generation several times in a note earlier this month as a concrete and near-term use for the technology. The analysts estimated Microsoft’s recently announced generated AI sales features could help it take market share and potentially add over $768 million in annual revenue.

Products coming to market

On Tuesday, Salesforce announced its LLM product called EinsteinGPT, which uses an OpenAI ChatGPT model. It can automatically write marketing emails — a logical integration because Salesforce’s main product is a web app that keeps track of how often salespeople contact leads.

In a tweet on Tuesday, Salesforce CEO Marc Benioff demoed the software, using it to identify two contacts at a company, then automatically generating a one-sentence email trying to arrange a meeting. In the demo, EinsteinGPT softened the cold outreach email after the user told the software to be less formal.

Salesforce hasn’t set a price for the tools yet but said it’s in testing now with pilot customers.

Microsoft announced on Monday that it would integrate generative AI based on ChatGPT into a set of tools for business called CoPilot. One of its primary features is using AI to generate emails.

In a demo video, Microsoft showed the feature integrated into an Outlook mailbox and provided examples of using it to reply to a request for proposal, or to suggest a meeting time with a customer.

In the example, an inbound email wanted to follow up on a potential sales deal, and Microsoft’s feature offered four different draft replies, including one that offered a discount and another that addressed a concern.

Microsoft says that its AI email writer can take important context from the email thread, like the price that was previously discussed, and stick it in the response drafted by AI. In the example provided by Microsoft, the user takes the AI draft and edits it before sending it.

Microsoft’s feature is currently in beta testing, but will be released to customers of Microsoft’s Viva Sales feature on March 15, the company said on Monday.

Some startups have even trained their sights on developing customized AIs that can respond to messages the same way that their owner would, by analyzing a user’s previous email and text interactions and integrating it into a personalized AI model.

“The benefit is people who would want to communicate with you where you don’t have time to get back to them, where you don’t have time to offer your mind,” said Suman Kanuganti, founder of personal.ai, a chatbot currently in beta mode. “In those scenarios, you can choose to either have your AI help you in co-pilot mode or offer [automatic] responses to them in autopilot mode.”

Shortcomings

Some worry that the ability to generate email text could be abused to spam people and that chatbots could be used to phish for people’s private passwords.

“We could see mass targeted messages and spam indistinguishable from dedicated email,” JPMorgan analysts wrote in a note this month that examined the AI industry.

ChatGPT is also prone to “hallucinating,” or making stuff up. It merely predicts what the next word or part of a phrase should be based on statistics, and doesn’t know whether it’s correct or not.

Microsoft said in its announcement that it would use data from its software to ground the replies in facts, and has a thumbs-down button so users can tell the bot that a response was unhelpful. That helps train the model to avoid the same mistake in the future. A Salesforce executive previously told CNBC that it was moving as quickly as it could without compromising a responsible, ethical approach.

But the limits of ChatGPT were clearly visible in the viral TikTok video. While some recommendations were correct, several of the CEOs ChatGPT recommended for outreach were either former CEOs or are not currently an executive at the company. While the text for the cold outreach looked appropriate, it would still likely require a human to make sure everything was actually right.

“I think anyone using this technology, as nascent as it is, has to do that due diligence,” Kluflas said. She didn’t end up sending the notes generated by ChatGPT because she’s not currently looking for a job.

But she’s still excited about using ChatGPT to help her make TikToks and other content for social media. Her latest application is to use ChatGPT to produce TikTok captions packed with the keywords that make her videos easier to find online.

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Alibaba posts profit beat as China looks to prop up tepid consumer spend

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Alibaba posts profit beat as China looks to prop up tepid consumer spend

Alibaba Offices In Beijing

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Chinese e-commerce behemoth Alibaba on Friday beat profit expectations in its September quarter, but sales fell short as sluggishness in the world’s second-largest economy hit consumer spending.

Alibaba said net income rose 58% year on year to 43.9 billion yuan ($6.07 billion) in the company’s quarter ended Sept. 30, on the back of the performance of its equity investments. This compares with an LSEG forecast of 25.83 billion yuan.

“The year-over-year increases were primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations,” the company said of the annual profit jump in its earnings statement.

Revenue, meanwhile, came in at 236.5 billion yuan, 5% higher year on year but below an analyst forecast of 238.9 billion yuan, according to LSEG data.

The company’s New York-listed shares have gained ground this year to date, up more than 13%. The stock fell more than 2% in morning trading on Friday, after the release of the quarterly earnings.

Sales sentiment

Investors are closely watching the performance of Alibaba’s main business units, Taobao and Tmall Group, which reported a 1% annual uptick in revenue to 98.99 billion yuan in the September quarter.

The results come at a tricky time for Chinese commerce businesses, given a tepid retail environment in the country. Chinese e-commerce group JD.com also missed revenue expectations on Thursday, according to Reuters.

Markets are now watching whether a slew of recent stimulus measures from Beijing, including a five-year 1.4 trillion yuan package announced last week, will help resuscitate the country’s growth and curtail a long-lived real estate market slump.

The impact on the retail space looks promising so far, with sales rising by a better-than-expected 4.8% year on year in October, while China’s recent Singles’ Day shopping holiday — widely seen as a barometer for national consumer sentiment — regained some of its luster.

Alibaba touted “robust growth” in gross merchandise volume — an industry measure of sales over time that does not equate to the company’s revenue — for its Taobao and Tmall Group businesses during the festival, along with a “record number of active buyers.”

“Alibaba’s outlook remains closely aligned with the trajectory of the Chinese economy and evolving regulatory policies,” ING analysts said Thursday, noting that the company’s Friday report will shed light on the Chinese economy’s growth momentum.

The e-commerce giant’s overseas online shopping businesses, such as Lazada and Aliexpress, meanwhile posted a 29% year-on-year hike in sales to 31.67 billion yuan.  

Cloud business accelerates

Alibaba’s Cloud Intelligence Group reported year-on-year sales growth of 7% to 29.6 billion yuan in the September quarter, compared with a 6% annual hike in the three-month period ended in June. The slight acceleration comes amid ongoing efforts by the company to leverage its cloud infrastructure and reposition itself as a leader in the booming artificial intelligence space.

“Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth. We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth,” Alibaba CEO Eddie Wu said in a statement Friday.

Stymied by Beijing’s sweeping 2022 crackdown on large internet and tech companies, Alibaba last year overhauled the division’s leadership and has been shaping it as a future growth driver, stepping up competition with rivals including Baidu and Huawei domestically, and Microsoft and OpenAI in the U.S.

Alibaba, which rolled out its own ChatGPT-style product Tongyi Qianwen last year, this week unveiled its own AI-powered search tool for small businesses in Europe and the Americas, and clinched a key five-year partnership to supply cloud services to Indonesian tech giant GoTo in September.

Speaking at the Apsara Conference in September, Alibaba’s Wu said the company’s cloud unit is investing “with unprecedented intensity, in the research and development of AI technology and the building of its global infrastructure,” noting that the future of AI is “only beginning.”

Correction: This article has been updated to reflect that Alibaba’s Cloud Intelligence Group reported quarterly revenue of 29.6 billion yuan in the September quarter.

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Elon Musk’s xAI raising up to $6 billion to purchase 100,000 Nvidia chips for Memphis data center

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Elon Musk's xAI raising up to  billion to purchase 100,000 Nvidia chips for Memphis data center

Elon Musk listens as US President-elect Donald Trump speaks during a House Republicans Conference meeting at the Hyatt Regency on Capitol Hill on November 13, 2024 in Washington, DC. 

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Elon Musk’s artificial intelligence company xAI is raising up to $6 billion at a $50 billion valuation, according to CNBC’s David Faber.

Sources told Faber that the funding, which should close early next week, is a combination of $5 billion expected from sovereign funds in the Middle East and $1 billion from other investors, some of whom may want to re-up their investments.

The money will be used to acquire 100,000 Nvidia chips, per sources familiar with the situation. Tesla‘s Full Self Driving is expected to rely on the new Memphis supercomputer.

Musk’s AI startup, which he announced in July 2023, seeks to “understand the true nature of the universe,” according to its website. Last November, X.AI released a chatbot called Grok, which the company said was modeled after “The Hitchhiker’s Guide to the Galaxy.” The chatbot debuted with two months of training and had real-time knowledge of the internet, the company claimed at the time.

With Grok, X.AI aims to directly compete with companies including ChatGPT creator OpenAI, which Musk helped start before a conflict with co-founder Sam Altman led him to depart the project in 2018. It will also be vying with Google’s Bard technology and Anthropic’s Claude chatbot.

Now that Donald Trump is President-elect, Elon Musk is beginning to actively work with the new administration on its approach to AI and tech more broadly, as part of Trump’s inner circle in recent weeks.

Trump plans to repeal President Biden’s executive order on AI, according to his campaign platform, stating that it “hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology” and that “in its place, Republicans support AI Development rooted in Free Speech and Human Flourishing.”

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Amazon was questioned by House China committee over ‘dangerous and unwise’ TikTok partnership

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Amazon was questioned by House China committee over 'dangerous and unwise' TikTok partnership

Amazon logo on a brick building exterior, San Francisco, California, August 20, 2024.

Smith Collection | Gado | Archive Photos | Getty Images

Amazon representatives met with the House China committee in recent months to discuss lawmaker concerns over the company’s partnership with TikTok, CNBC confirmed.

A spokesperson for the House Select Committee on the Chinese Communist Party confirmed the meeting, which centered on a shopping deal between Amazon and TikTok announced in August. The agreement allows users of TikTok, owned by China’s ByteDance, to link their account with Amazon and make purchases from the site without leaving TikTok.

“The Select Committee conveyed to Amazon that it is dangerous and unwise for Amazon to partner with TikTok given the grave national security threat the app poses,” the spokesperson said. The parties met in September, according to Bloomberg, which first reported the news.

Representatives from Amazon and TikTok did not immediately respond to CNBC’s request for comment.

TikTok’s future viability in the U.S. is uncertain. In April, President Joe Biden signed a law that requires ByteDance to sell TikTok by Jan. 19. If TikTok fails to cut ties with its parent company, app stores and internet hosting services would be prohibited from offering the app.

President-elect Donald Trump could rescue TikTok from a potential U.S. ban. He promised on the campaign trail that he would “save” TikTok, and said in a March interview with CNBC’s “Squawk Box” that “there’s a lot of good and there’s a lot of bad” with the app.

In his first administration, Trump had tried to implement a TikTok ban. He changed his stance around the time he met with billionaire Jeff Yass. The Republican megadonor’s trading firm, Susquehanna International Group, owns a 15% stake in ByteDance, while Yass has a 7% stake in the company, NBC and CNBC reported in March.

— CNBC’s Jonathan Vanian contributed to this report.

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