Need to Know News - February 27th, 2025
In this week's Need to Know News edition:
🤖 OpenAI unveils GPT-4.5 while admitting it's not a "frontier model"...
🤖 Allstate confesses their AI is "nicer than our agents" to customers...
🤖 94% of companies are throwing money at AI while only 21% know what they're doing...
And whole lot more!
OpenAI Launches GPT-4.5
OpenAI has released GPT-4.5, its newest and largest language model. The company calls it their "most knowledgeable model yet." It features improved writing capabilities, better world knowledge, and a refined personality.
OpenAI states GPT-4.5 is not a frontier AI model. Its performance falls below o1 and o3-mini on most evaluations. But it does improve on GPT-4's computational efficiency by more than 10x.
The model was trained using new supervision techniques combined with traditional methods. These include supervised fine-tuning and reinforcement learning from human feedback. GPT-4.5 hallucinates less than GPT-4o and slightly less than o1.
Initially available to ChatGPT Pro users, GPT-4.5 will roll out to other user tiers in the coming weeks. OpenAI CEO Sam Altman called it a "giant, expensive model."
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Claude 3.7 Sonnet and Claude Code Are Here
Anthropic announced Claude 3.7 Sonnet. This is their most advanced AI model to date. The system is the first hybrid reasoning model on the market. It delivers both rapid responses and visible step-by-step thinking.
In the AI development space, Claude 3.7 Sonnet shows marked improvements in coding tasks. Anthropic has paired this release with Claude Code. This new command line tool is available in limited preview.
The model rolls out immediately across all Claude plans and partner platforms. Extended thinking features will be available on all paid tiers. Prices remain unchanged despite the upgrades.
Amazon Unveils Alexa+
Today, Amazon launched Alexa+, a new version of its voice assistant. The system uses generative AI to become smarter and more helpful. Alexa+ is easier to talk to than before. It understands casual speech and responds more like a person would. Users can speak naturally without choosing perfect words.
The assistant works with many services through systems Amazon calls "experts." These help Alexa+ control smart homes, book tables at restaurants, and complete tasks on its own. Alexa+ also remembers things about you. It knows what you've bought and what music you like. You can tell it about your preferences to get better help.
The new service starts in a few weeks for certain Echo device owners. It costs $19.99 per month. Amazon Prime members get it for free.
DeepSeek Rushes to Launch New AI Model as China Goes All In
Chinese startup DeepSeek is rushing to release its next-generation AI model. The company plans to launch R2 earlier than the original May timeline. This comes after their R1 model triggered a trillion-dollar sell-off in global markets last month.
The new R2 model aims to improve coding capabilities. It will also offer reasoning in languages beyond English. These developments have not been previously reported. Industry experts suggest R2's release could further challenge U.S. tech dominance.
Now You Can Create Apps with Poe
Quora announced Poe Apps, a new platform for building visual interfaces using AI models. The system expands beyond Poe's chat-focused approach to meet more complex user needs.
Poe Apps allows creators to combine multiple AI models with custom JavaScript logic. Users can build these applications without coding. All through the new App Creator tool, which runs on Claude 3.7 Sonnet.
The platform taps into Poe's existing model library of over 100 AI systems. This includes recent releases like DeepSeek R1, Claude 3.7 Sonnet, and various image and video generation tools.
For creators, Poe handles the financial risk of API calls through its points system. The company will also provide distribution to quality apps through its existing channels. Which gives developers immediate access to millions of users.
Meta plans to release standalone Meta AI app
Meta will soon release its own AI app, separate from Facebook and Instagram. The company plans to launch it by June this year. Mark Zuckerberg wants Meta to be the top AI company by the end of 2025.
Right now, Meta AI works inside other Meta apps. Since April, it has replaced the search feature in Facebook, WhatsApp, and Instagram. This has helped it reach many users quickly. Meta says about 700 million people use its AI each month. But experts find it hard to compare this with ChatGPT because Meta AI isn't a separate app yet.
Our Insurance AI is Nicer than Our Agents - Allstate
Allstate is now using AI to write emails to customers about their insurance claims. The company says these computer-written messages are more friendly and clear than ones human agents write.
The AI doesn't use confusing insurance terms that upset customers. It explains things simply and shows more understanding when people are stressed about damages. Every day, Allstate handles about 50,000 messages to customers. While the AI writes these emails, human workers still check them before sending.
Other insurance companies are trying similar technology. Nationwide uses AI to summarize information but still lets humans write the messages.
Allstate promises this change won't take away jobs. The company is also testing if AI can look at pictures of damaged cars to figure out repair costs.
ElevenLabs is Launching its Own Speech-to-Text Model
ElevenLabs, a company known for making AI voices, has created a new tool called Scribe. This tool changes spoken words into written text. Until now, the company only turned text into speech.
Scribe can work with over 99 languages. For 25 of these languages, including English, it gets the words right more than 95% of the time. The company says Scribe works better than similar tools from Google and OpenAI.
The new tool does more than just write down words. It can tell you who is speaking in a recording. It also marks exactly when each word is said. This makes it perfect for adding subtitles to videos.
Right now, Scribe only works with recordings, not live speech. ElevenLabs charges $0.40 for each hour of audio it changes to text. The company plans to make a version that works in real-time soon.s.
94% of Businesses Are Investing More in AI—Yet Only 21% Have Successfully Operationalized It
A new study from Qlik and ESG shows a major gap between AI spending and results. While 94% of businesses are investing more in AI tools, only 21% have fully put AI to work in their operations.
Most companies rush to adopt AI without proper planning. They collect massive amounts of data but struggle to use it effectively. Many lack basic safeguards to prevent problems.
The research reveals several key challenges. Companies gather data from hundreds of sources daily. Yet few have strong rules to ensure this data is accurate and fair. Less than half strongly agree their policies are consistently followed.
"AI isn't a tech problem—it's an execution problem," notes Stephen Catanzano from ESG. Without better planning, companies risk wasting their AI investments.
Seamless Journeys: AI’s Rising Role in Coordinating Consumer Travel
Travel companies are racing to add AI tools that create smoother experiences for travelers. Kayak plans to launch AI agents this year that can help users search and book trips without leaving their platform.
These new AI agents can do more than just provide information. They can complete multi-step tasks like making reservations and handling payments. Kayak CEO Steve Hafner says humans will still oversee the process, especially before any payment is made.
Other travel giants are taking different approaches to AI. Sabre uses AI to connect travel suppliers with buyers more efficiently. Their tools help make pricing more consistent and offers more personal.
Meanwhile, Costco Travel has partnered with Travelport to use AI-powered search. Tripadvisor is working with Perplexity AI to enhance trip planning with better recommendations.
Thanks for reading.
Until next time!
The AI Marketers
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