Home Ad Exchange News CNET Backpedals On AI-Generated Content; FTC Fines Microsoft $20M For Collecting Kids’ Data

CNET Backpedals On AI-Generated Content; FTC Fines Microsoft $20M For Collecting Kids’ Data

SHARE:
Comic: A.I. Ad Campaign

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.

Rise (And Fall) Of The Machines

CNET made waves in January when it started publishing articles that were completely generated by AI. 

But the publisher is already rethinking how it’s using AI to write content after some early missteps, The Verge reports. Half of the 70 AI-generated articles it published this year needed to be corrected by human editors because of factual errors or potential plagiarism.

In a memo shared with employees on Tuesday, CNET promises to no longer publish stories written solely by AI. It also says it will not publish AI-generated images and videos “as of now.” But it will continue to use AI to analyze data and existing text, create outlines for story ideas and generate “explanatory content.”

CNET’s decision comes weeks after 100 of its employees formed a union through the Writers Guild of America, East. The fledgling union cited the company’s push for AI-generated content and a lack of editorial independence as chief concerns.

Child’s Play

The FTC hit Microsoft with a $20 million fine on Monday for illegally collecting children’s personal information via Xbox consoles.

When creating an Xbox user account, which is required to play games, users must provide personal information, including their name, date of birth and email. If users indicate they’re under 13 years old, parental consent is required to complete the process.

The FTC says Microsoft violated the Children’s Online Privacy Protection Act (COPPA) by collecting names and contact info before confirming the user’s age. From 2015 to 2020, Microsoft retained that personal information even if a parent never completed the registration process. Microsoft claims a technical glitch prevented the user data from being deleted and that its engineering team “took immediate action” to fix the glitch. It also said the data was never monetized or used during that time.

Microsoft is overhauling its registration process to be COPPA-compliant. Now, users must provide their date of birth before any other personal information. The company has promised to retroactively obtain parental consent for all child accounts created prior to May 2021 if the user is still under 13. 

Microsoft says it’s also creating a new age verification system, with testing planned for coming months.

Can’t Buy Me Love 

Consumers weary of influencer marketing are jumping ship for user-generated content, The Drum reports, according to a survey of 1,000-plus US consumers released today. 

Take the findings with a grain of salt, though: UGC content agency EnTribe conducted the survey.

Why the ascent of UGC? People, particularly Gen Z users, trust their fellow consumers – especially when they enthusiastically champion a given product or brand because they truly love it – more than paid influencers. 

Only 12% of consumers said they were willing to buy an influencer-promoted product. And 81% said brand influencers either had a neutral or negative effect on their perception of brands. So-called influencer fatigue led 51% of those surveyed to scroll past influencer content without engaging. A whopping 62% of participants claimed they never bought a product hawked by an influencer, and 42% who did make a purchase regretted it later. 

In contrast, 86% of respondents said they were of a mind to trust a brand that publishes UGC (sans sponsorships).

But Wait, There’s More!

How Google’s top lawyer is preparing to fight legislation on AI and tech censorship. [Bloomberg]

Hundreds of Gannett journalists representing two dozen local US newspapers strike to demand leadership change. [AP]

Meta introduces Performance 5: The five best practices that increase campaign performance when using its ad platform. [release]

IAB Tech Lab launches Advanced TV Commit Group to promote interoperability and standardization across the TV ecosystem. [release]

Generative AI startup Jasper rolls out Campaigns, its enterprise marketing campaign platform. [release

Apple’s on the “don’t say AI” train. Machine learning’s up for grabs, though. [The Verge

Tagged in:

Must Read

A Publisher Didn’t Get Its UID2 Setup Right. The Trade Desk Didn’t Notice. What Went Wrong?

TTD confirmed that this CTV publisher’s errors would have made its UID2s useless for ad targeting. But TTD also said it wouldn’t have had enough information to flag anything wrong.

Criteo Faces Tough Headwinds Until Agentic AI Ad Revenue Materializes

Criteo shares dropped by 20% Wednesday morning after the company reported shaky Q1 earnings and revised its guidance downward for the rest of the year.

Disney’s New CEO Is Focused On Two E’s: Engagement And ESPN

On Wednesday, Josh D’Amaro led his first earnings call as the new CEO of Disney. The company closed last quarter with $25.2 billion in revenue, a 7% year-over-year increase. Disney Entertainment advertising revenue rose 5% YOY, but ESPN ad revenue was down 2% YOY, although subscription and affiliate revenue was up 6%.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

People Inc. Looks Inward For Growth As Its Search Traffic Downsizes

People Inc. previewed plans to downsize by focusing mainly on its key properties. The strategy makes sense considering its publishing portfolio has lost about two-thirds of its Google traffic.

Kamran Asghar, Global CEO & Co-founder, Crossmedia

POSSIBLE 2026: Industry Experts Dish On AI – And Other Trends To Watch

At POSSIBLE 2026 in Miami, the ad industry was over the hype around AI. 

Will OpenAI’s New Measurement Tools And Ads Manager Prove Its Worth As An Ad Channel?

OpenAI announced a CAPI, along with the public launch of its self-serve ads manager, as the latest features of its rapidly evolving ads business.