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Will AI Empower PR or Make It a Monster?; Target Sales Hit by Boycott; Google Search Takes on the Chatbots; Levi Finds a New Home for Dockers
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Good morning. Today, AI spits out an enraging story pitch; Target’s troubles mount; flashy AI conversationalists get some well-funded new competition; and Authentic Brands takes in another name that needs love.
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Microsoft created an AI tool to summarize its mentions in news stories, podcasts and social media so its PR team can better respond. PHOTO: FRANK HOERMANN/SVEN SIMON/ZUMA PRESS
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A recent email to journalists stood out from the typical flood of press releases with its jarring subject line, Patrick Coffee reports for CMO Today: “You care more about Tesla than a cancer killing thousands.”
The pitch scolded reporters for prioritizing Tesla earnings and celebrity gossip over Mainz Biomed, a firm that develops tests for colorectal cancer. “You’ve been covering crap that doesn’t matter,” it said. “Do better.”
The email was generated entirely by an AI tool that sought attention by combining the grabby Tesla name with a confrontational tone, according to the agency that sent it.
Is this the future of PR?
The email is an extreme example of AI being used for PR without proper oversight, industry veterans said. But the field is already being changed.
Microsoft has developed a generative AI interface that summarizes company appearances in news stories, podcasts and social-media posts so its comms team can more quickly develop a response strategy.
And when a client is the subject of negative headlines, the PR firm Golin can use AI to both track real-time reactions and test potential responses on synthetic focus groups created by large language models.
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Content from our sponsor: Deloitte
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Generative AI Risks and How to Manage Them
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Generative AI introduces potential new risks to the enterprise across four distinct categories, but there are strategies business leaders can use to help manage them. Read More
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Target on Wednesday lowered its financial forecast for the fiscal year, citing uncertainty around tariffs, the economy and consumer demand. PHOTO: JEENAH MOON/REUTERS
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Target said a laundry list of problems dragged down its quarterly sales, including a boycott by shoppers who disagreed with its decision this year to end some diversity programs, Sarah Nassauer writes.
Target’s sales have been tepid for years, but they got even worse in the three months ended May 3, with comparable sales falling 3.8%.
Target’s quarterly sales fell in part because of softer spending on things that people want, but don’t need, and a broad decline in consumer confidence, CEO Brian Cornell said.
Cornell said the boycott played a role but that he couldn’t gauge how much.
Related: Boycotts against Target’s rollback of DEI initiatives are also hitting Black-owned businesses with products on the retailer’s shelves. Some say they still support the boycotters’ mission. [WSJ]
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Apple executive Eddy Cue said Google searches in Safari had recently dropped for the first time in two decades. PHOTO: SUZANNE CORDEIRO/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Google has started offering search users an “AI Mode” that answers queries in chatbot style without the usual list of links, Katherine Blunt reports.
It’s Google’s most ambitious attempt yet to confront the AI upstarts that threaten its flagship search product and largest source of revenue.
Google has performed as much as 90% of the world’s web searches. It could lose traffic and ad revenue if users shift to AI-driven alternatives.
Robby Stein, Google’s vice president of product for search, said the company is considering ways to include ads within AI Mode results. “We view that as part of the content mix that people actually want,” he said.
Google Glass redux? Warby Parker and Kering Eyewear each said they have partnered with Google to develop AI-powered glasses. [WSJ]
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Levi Strauss said in October it was considering a sale of Dockers, a brand highly dependent on department stores like Macy’s. PHOTO: CRISTINA ARIAS/COVER/GETTY IMAGES
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Levi Strauss is selling Dockers to Authentic Brands Group for $311 million, potentially rising to $391 million due to an earn-out, as CEO Michelle Gass centers the company on its namesake brand, Connor Hart writes.
Levi under Gass previously exited the company’s Denizen fashion line and closed a footwear business in Europe. It also launched a Levi’s marketing campaign with Beyoncé and began rolling out more new Levi’s products.
Authentic, a global brand-development and licensing company, said Dockers fits its portfolio of brands with strong heritage, loyal consumers and global recognition. Other Authentic properties include Juicy Couture, Brooks Brothers, Aéropostale, Reebok and Sports Illustrated.
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2.7 million
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Average viewers for the WNBA’s matchup between the Indiana Fever and the Chicago Sky featuring Caitlin Clark and Angel Rees
on the first day of the new season. The league is trying to build on last year’s breakthrough season, when viewership, attendance and merchandise sales all soared.
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‘Voice-native’ AI models don’t necessarily need to convert speech into text for processing and then turn their output back into speech. ILLUSTRATION: THOMAS R. LECHLEITER/WSJ, ISTOCK
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A new generation of customer-service voice bots is here, spurred by advances in artificial intelligence and a flood of cash. [WSJ]
Duolingo’s latest social-media stunt can’t “cute-post” the company out of the backlash to its AI HR policy. [Fast Company]
Chanel said it won’t make tariff-driven price increases in the U.S. until it sees where the levies shake out. [Fashion Network]
How marketers from Madewell to M.M.LaFleur are using Substack to express a different side of their brands. [Modern Retail]
Meta for the first time will start removing expired political ads from its Ad Library. [Axios]
Progressive CMO Remi Kent is leaving after nearly four years in the role. [Ad Age]
Fanatics will let fans test their skills against Tom Brady, Kevin Durant and Alex Rodriguez at its second annual Fanatics Fest marketing event. [CNBC]
Mattel and TriStar Pictures are developing the toymaker’s next great film adaptation: a movie based on Whac-A-Mole. [Deadline]
The logo for this NBA player’s signature Adidas shoe is probably trying to do too much. [Creative Bloq]
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