AI news you can't miss this week

Smart toys, major price cuts, privacy troubles, smarter browsing & AI replacing analysts

Best AI tools of this week:

1️⃣ Mattel revolutionizes childhood with OpenAI-powered interactive toys

2️⃣ OpenAI makes o3 model 80% more affordable

3️⃣ Meta AI turns into a privacy nightmare with accidental public sharing

  • Microsoft Edge gets AI-powered history search that understands typos

  • McKinsey replaces junior analysts with AI for presentation creation

WEEKLY AI RECAP / 9 - 14 June 2025

🧸 Mattel brings AI to toys 🧸
Kids' toys are getting conversational

Mattel has partnered with OpenAI to create interactive toys that can actually talk and remember conversations. Think Barbie dolls that speak multiple languages or Hot Wheels with AI commentary. The first AI-powered toy launches by the end of 2025. The big concern? Privacy and data collection from children's conversations.

💰 OpenAI slashes o3 prices by 80% 💰
Premium AI becomes affordable

OpenAI dramatically cut o3 model pricing from expensive to just $2-8 per million tokens - same performance, much cheaper. They also introduced o3-pro at 87% lower cost than before. This makes professional AI tools accessible to smaller businesses that couldn't afford them previously.

⚠️ Meta AI privacy disaster ⚠️
Private chats accidentally going public

The Meta AI app has confusing privacy settings causing users to unknowingly share sensitive conversations publicly. People are accidentally broadcasting tax questions and personal problems. Despite billions invested, the app only has 6.5 million downloads since April.

INTERESTING TO KNOW

🔍 Microsoft Edge gets smarter search 🔍

Microsoft is testing AI-powered browser history that understands natural language. You can find old websites by typing descriptions like "that chicken recipe site" instead of remembering exact titles. Currently in beta, it even handles typos and vague descriptions.

📊 AI replaces analysts at McKinsey 📊

The consulting giant now uses AI to create PowerPoint presentations - work traditionally done by junior analysts. The AI generates complete decks in hours instead of days. While this reduces entry-level hiring, McKinsey says junior staff are moved to higher-value client work.

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