Digest: Publicis Lifts Forecast Again as AI Fuels Growth; California Moves to Govern AI Chatbots; EU Strikes Compromise on Sustainability Reporting

"Publicis has revised its full-year organic growth forecast upward for the second time this year, citing artificial intelligence as the central force behind its accelerating performance. CEO Arthur Sadoun emphasised during a press briefing that "It is artificial intelligence that allows us to accelerate our clients' growth and to accelerate our own." With 73% of its operations now AI-powered, Publicis is positioning itself as a leader in data-driven advertising innovation."

"California Governor Gavin Newsom has signed SB 243 into law, making the state the first in the US to mandate safety protocols for AI companion chatbots. The legislation, aimed at protecting children and vulnerable users, holds companies such as Meta, OpenAI, Character AI, and Replika legally accountable for failing to meet new safety standards. Governor Newsom emphasised the dual nature of emerging technologies, noting their potential to inspire and educate while also posing serious risks when left unregulated."

""We've seen some truly horrific and tragic examples of young people harmed by unregulated tech," he said, calling for responsible innovation that prioritises child safety. The law, which takes effect 1st January, 2026, requires companies to implement age verification, issue warnings about chatbot interactions, and establish protocols for addressing suicide and self-harm. It also introduces penalties up to USD$250,000 (£186,100) for those profiting from illegal deepfakes."

Publicis revised its full-year organic growth forecast upward for the second time this year, attributing accelerating performance primarily to artificial intelligence. The company reports that 73% of its operations are now AI-powered and positions itself as a leader in data-driven advertising innovation. AI was credited with enabling acceleration of clients' growth and the company's own performance. California enacted SB 243 to mandate safety protocols for AI companion chatbots, holding companies legally accountable and requiring age verification, warnings, and protocols for suicide and self-harm, with penalties up to USD$250,000. The European Parliament's Legal Affairs Committee approved a plan to ease sustainability reporting rules for businesses.

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