Lab Weekly - 09/05/2025
The growing AI fatigue, Plus, the latest news about Gemini’s new image model, micro-drama ecosystem, and more must-know news and stats
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On the Cultural Fatigue around AI
Besides the technical limitation of the LLM models, the recent vibe shift on AI is reflective of, and arguably, a direct result of the growing cultural fatigue around AI. Compression culture, parental panic, and the remaining trust gap. Here’s how everything from compression culture to parental panic plays into it.
In case you missed it…
Streaming Enters Its “Profitability Era” — What Comes Next?
Hollywood is finally figuring out how to make the streaming model work, and the numbers speak for themselves. Looking ahead, new bundling strategies and consolidations signal a new playbook for entertainment brands.
The Smart Home Ecosystem is Decaying — Can AI Save it?
Years of neglect, combined with the tech industry’s shifting focus to AI priorities, have left its smart home ecosystem crumbling. Looking ahead, both Google and Amazon plan to keep pushing more AI assistants into smart homes. Could AI be its savior?
Google Gemini’s AI Image Model Gets A ‘Bananas’ Upgrade [TechCrunch]
Google is upgrading its Gemini chatbot with a new AI image model that gives users finer control over editing photos. Officially named Gemini 2.5 Flash Image, the new model rolled out on Tuesday to all users in the Gemini app, as well as to developers via the Gemini API.
Interestingly, Google is still actively referring to it as Nano Banana (a codename from the testing process) in various places, with a banana emoji now present in the Gemini prompt bar. And it has been quite a hit so far, as 9to5Google reports that it’s responsible for drawing over 10 million first-time Gemini app users.
If Nano Banana can truly maintain better identity and scene fidelity in image editing than others, Google could gain a competitive edge to catch up with OpenAI’s popular image tools and draw users from ChatGPT. For creators and brands, this means faster mockups, A/B variants, and personalized visuals from a single chat thread.
Related: Nano Banana responsible for 10+ million first-time Gemini app users [9to5Google]; Google stock jumps 8% after search giant avoids worst-case penalties in antitrust case [CNBC]
Cineverse Forms ‘MicroCo’ to Create Serialized, Short-Form Mobile Content [Variety]
Micro-drama is having a moment. The format, built on 60-to-90 second, cliffhanger-driven soapy serials, is already a juggernaut in China and has broken out in the U.S. via apps like ReelShort, which has achieved about 370 million downloads and generated $700 million in-app revenue in Q1 2025. The Washington Post reports weekly passes around $20 for some vertical “soap” apps.
Interestingly, the booming vector is creating a new content ecosystem in Hollywood. Cineverse and Lloyd Braun’s Banyan Ventures are launching MicroCo, a U.S. studio + platform focused on micro-dramas. And The Ankler reports that Kasey Esser is producing Love Under Fire as, reportedly, the first independently produced micro-drama. Could this move micro-drama production from app-owned, in-house production to indie projects sold to multiple distributors worldwide, a distribution model closer to traditional film sales than short-form social videos.
Related: Vertical drama series from streaming apps are taking over social media [WSJ]; Microdramas are Minting New Six-Figure Careers [The Ankler]
Starbucks Activates Visual AI for Inventory in North America [Remix Reality]
Starbucks is rolling out a visual AI inventory system, built by NomadGo, across all company-operated North American stores by the end of September. Using handheld scans plus computer vision, spatial recognition, and AR overlays, staff can quickly assess shelves, surface real-time availability, and flag low quantities. The platform is already live in thousands of locations, with future updates set to trigger automatic restocking, signaling a broader shift to AI-driven supply management.
The integration of AI tools into real-world operations hasn’t exactly been smooth sailing for brands. For example, Taco Bell’s open-ended voice AI at drive-thrus, which stumbled with glitches and suffered from customer pranks, is now being reconsidered by the chain. Overall, visual AI deployed for back-of-house assistance beats front-of-house automation in the near term. But, for brands to fully harvest the full potential of AI, they still will need to move toward more complex or front-of-house applications, gradually layering AI into customer service, personalization, or real-time interactions.
Related: Taco Bell rethinks future of voice AI at the drive-through after glitches and pranks [WSJ]; Microsoft and NFL announce multiyear partnership to use AI to enhance game day analysis [CNBC]
Situational Awareness:
Neon offers free couples therapy to “Together” audiences [The Wrap]
To promote its new body-horror film Together, which explores toxic codependency in relationships, distributor Neon pulled some fun stunts, including releasing a night-vision video using special tech to track how a viewer’s pupil dilated during the film’s most eye-popping moments, and partnering with online mental health provider OurRitual to offer free couples’ therapy to anyone who felt the film’s themes hit a little too close to home. It’s a clever way to generate buzz and align with the theme of the movies as well as the increasing emphasis on mental wellness among younger generations.
Instagram finally releases dedicated iPadOS app [The Verge]
After years of requests from users, Instagram will finally have a dedicated app for iPad. Most notably, it opens directly to a Reels feed, and its timing follows April reports that Meta accelerated iPad development amid TikTok’s legally and politically precarious position in the U.S. Well, TikTok is not going anywhere now, it seems, but Instagram still wants to compete on tablet screens as well.
Adobe’s Premiere video editor is coming to iPhone for free [The Verge]
Adobe making Premiere a free iPhone app with one-tap exports to TikTok, YouTube Shorts, and Instagram reinforces the idea that the creator economy is mobile-first, with access to pro-grade tools highly democratized, emphasizing ease-of-use and convenience.
Waymo granted first permit to begin testing autonomous vehicles in New York City [CNBC]
The Google subsidiary will start testing eight vehicles in Manhattan and Downtown Brooklyn through late September. No words yet on when the larger rollout will begin, or who the ridesharing partner would be. Waymo’s CEO said the company surpassed 10 million robotaxi trips in May.
Spotify launches a DM feature in a bid to become more social [TechCrunch]
Spotify’s new in-app Messages aims to keep sharing inside Spotify, build a “taste graph” for better recommendations, and boost retention. Spotify positions Messages as a way to fuel word-of-mouth that drives more shares—and thus more plays—for artists and podcasters while avoiding direct fan DMs to creators, a safer path that still expands discovery. However, it might create a user privacy wrinkle that Spotify might need to rectify.
In the last two decades, the share of American adults who say they exercise or play sports on any given day has increased by about 20%. Year-to-year ATUS data can jitter up and down, but what’s clear is that in the last four years, Americans have been exercising at record-high levels.
NFL ads are more effective than anything on linear, but ads during streaming-exclusive games outperformed in the 2024-25 season. Streaming ads were 66% more effective than the cable and broadcast average during the most recent NFL season, per data from EDO. On Netflix, for instance, the first NFL Christmas Day games proved 84% more effective than the average NFL broadcast for entertainment brands and 70% more effective for pharmaceuticals.
GLP-1 medications accounted for $360.9 million, or 35.7%, of the top 10 prescription linear TV ad spending in H1 2025, according to a July iSpot.tv report cited by eMarketer. But, over half of Gen Z (55.3%) and millennials (50.3%) who are aware of GLP-1s have seen their ads on social media, per a December eMarketer survey.
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