Welcome back. Today, ad-industry leaders say AI is starting to deliver; blind-boxed Labubus turn shoppers into collectors; and Tesla’s latest big bet hits the road.

After several years of small experiments with AI and big anxieties over its impact, ad executives got with the program at last week’s Cannes Lions festival, Katie Deighton reports after five days on the ground in France.

“We’ve moved beyond the promise and the fear to the practical application,” said Don McGuire, chief marketing officer at chip maker Qualcomm, adding that the company is saving 2,400 hours a month by using an AI agent-building tool called Writer.

But lower-ranking attendees darkly joked at post-programming parties that they’d be replaced by their artificial counterparts before the next festival.

And research published Monday raised some red flags for agencies. Three-quarters of agencies using AI aren’t passing on the costs to clients, according to the 4As and Forrester, up from 41% in 2024.

“That is deeply concerning,” said Jay Pattisall, principal analyst at Forrester, who wrote in the report that “agencies are backsliding into antiquated commercial models that led to the commoditization and lack of transparency associated with marketing services.”

Final word(s) on Cannes: The most coveted award at the festival, the Titanium Grand Prix, went to AXA and Publicis Conseil for “Three Words,” in which the French insurance giant added “and domestic violence” to its list of covered reasons for emergency relocations. [Ad Age]

The furry dolls with sharp-toothed smiles known as Labubus are inspiring obsession among apprehensive shoppers seeking a little excitement and indulgence, Shen Lu writes. 

Labubus, owned by Chinese collectible-toy company Pop Mart, are constantly out of stock. Some can fetch hundreds of dollars on the second-hand market. On Google, searches for Labubu have beaten out ones for Elon Musk on most days since late April.

The dolls are feeding on consumers’ desire to splurge on affordable, feel-good pleasures at a time of economic and political uncertainty.

“I don’t know if I will ever be able to buy an apartment or house,” said Anastasiia Shkorinenko, 25. A Labubu is “a little joy in the moment because it’s not that expensive, you can get it and you can be happy about it.”

The Labubu hunt also taps into customers’ gambling impulses, because most of the Pop Mart’s products are sold in blind boxes.

“It’s a feeling like this Labubu chose you,” said Shkorinenko.

Tesla rolled out its long-promised robotaxi service in Austin on Sunday, entering the growing autonomous ride-hailing market, where its technology will be put to the test against market leader Waymo, Becky Peterson reports.

There won’t be a human driver behind the wheel, but there will be a safety monitor in the front passenger seat. Fares will be a flat $4.20, CEO Elon Musk said, extending his lengthy streak of 420 references.

Cathie Wood’s ARK Invest projected that autonomous ride-hailing could be a $951 billion business for Tesla by 2029, at which point the service could make up about 90% of Tesla’s earnings.

But former Tesla President Jon McNeill, who is on the board of General Motors, questioned whether the robotaxi business is as large as Tesla and its supporters have projected. “It’s hard to square how people are arriving at a $1 trillion opportunity,” he said.

The Los Angeles Dodgers committed $1 million to assisting the families of immigrants affected by “recent events in the region.” The team, which has a significant Hispanic fan base, earlier said it had denied ICE agents access to its parking lot. [WSJ]

Why you might see LeBron James become an NBA analyst for Amazon Prime. [Front Office Sports]

Walmart is spending billions of dollars on its new headquarters in Arkansas as part of its effort to update its image. [NYT] 

Meta CEO Mark Zuckerberg has become the company’s AI recruiter-in-chief, making first contact with potential recruits and hosting them for meals at his homes. [WSJ]

BTS fans hope K-pop group BTS will reunite now that its members have all completed their mandatory two years of military service. [WSJ]

The company behind Applebee’s and IHOP plans to use artificial intelligence in its restaurants and behind the scenes to streamline operations and encourage repeat customers. [WSJ]

How the Crunchwrap became bigger than Taco Bell. [New York]