Category: 3. Business

OpenAI has announced that it has made the new GPT-5 AI model more “warmer and friendlier” following initial feedback that the model felt too formal. The AI startup says that while the changes are subtle, GPT-5–powered ChatGPT should now feel more approachable.

Despite adding some light flattery in the model with gestures like “Good question” and “Great start,” OpenAI says GPT-5 shows no increase in sycophancy (being overly agreeable with users) compared to the earlier GPT-5 personality.

The new update is rolling out to all users and should take about a day to complete.

Meanwhile, head of ChatGPT Nick Turley said that users can further customize ChatGPT’s personality through the Custom Instructions settings. He also hinted at new upcoming ways to tailor ChatGPT’s personality according to user preference.

Notably, OpenAI also provides an option to choose from four different personalities — Cynic, Robot, Listener, and Nerd — to tailor GPT-5’s responses. However, this feature is currently restricted to paying customers and does not apply to the free tier of the app.

Why did OpenAI have to make changes to GPT-5?

OpenAI had high hopes for its GPT-5 rollout, with CEO Sam Altman creating significant hype around the new AI model in the past few months. However, when the model finally launched last week, it was met with anything but a warm reception from users.

ChatGPT users complained that GPT-5’s responses were shorter and seemed to lack the emotional depth of the previous model. Just a few months ago, OpenAI faced criticism for making GPT-4o too sycophantic, but this time, its new model received backlash for almost the opposite reasons.

Another major reason the GPT-5 launch fell flat was user frustration over the removal of all older AI models from ChatGPT. This not only disrupted workflows for many but also reduced usage limits for $20/month ChatGPT Plus subscribers, who went up in arms and threatened to cancel their subscriptions.

OpenAI then increased the rate limits for ChatGPT Plus users, first for the standard model and later for the GPT-5 Thinking model as well. The company also brought back the model picker in ChatGPT to allow users to select which AI model should answer their queries.

WASHINGTON: US Senator Josh Hawley launched a probe into Facebook parent Meta Platforms artificial intelligence policies on Friday, demanding documents on rules that had allowed its artificial intelligence chatbots to engage a child in conversations that are romantic or sensual.

Both Democrats and Republicans in Congress have expressed alarm over the rules outlined in an internal Meta document first seen on Thur­sday. Hawley, a Republican from Missouri, chairs the Senate subcommittee on crime and counterterrorism, which will investigate “whether Meta’s generative-AI products enable exploitation, deception, or other criminal harm to children, and whether Meta misled the public or regulators about its safeguards”, he said in a letter to Meta CEO Mark Zuckerberg.

“We intend to learn who approved these policies, how long they were in effect, and what Meta has done to stop this conduct going forward,” Hawley said.

Meta declined to comment on Hawley’s letter. The company said previously that “the examples and notes in question were and are erroneous and inconsistent with our policies, and have been removed. In addition to documents outlining those changes and who authorised them, Hawley sought earlier drafts of the policies along with internal risk reports, including on minors and in-person meetups. Media reported on Thursday about a retired man who died while travelling to New York on the invitation of a Meta chatbot.

Meta must also disclose what it has told regulators about its generative AI protections for young users.

Published in Dawn, August 16th, 2025

ISLAMABAD: Specialised committees set up by the prime minister to promote a cashless economy have outlined ambitious national targets for the State Bank of Pakistan (SBP), aimed at accelerating the growth of digital financial services and fintech adoption across the country.

Under the PM’s Cashless Economy initiative, key goals include raising the number of active digital merchants to 2 million by the end of 2025-26, increasing mobile and internet banking users from the current 95 million to 120m within a year, and doubling annual digital payment transactions to 15 billion.

According to finance ministry sources, another primary target is routing 100pc of overseas remittances through bank accounts or mobile wallets, up from the current 80pc. This move seeks to eliminate cash payouts and boost transparency in remittance flows.

Following the directives of the committee chaired by the prime minister, the SBP is expected to play a pivotal role in expanding mobile banking services to all segments of society.

2m digital merchants and 15bn transactions targeted by FY26

Meanwhile, Minister for IT and Telecom Shaza Fatima said Pakistan, with over 143 million broadband users, has significant potential to transition to a cashless economy. “Mobile wallets now outnumber traditional bank accounts, and the branchless banking infrastructure is robust,” she said, noting the government’s commitment to reducing reliance on physical currency and promoting digital payments. However, she acknowledged that among the four cellular mobile operators, only two — Jazz and Telenor — have established strong mobile wallet platforms.

Telenor’s Easypaisa, launched in 2009, was Pakistan’s first mobile wallet and has since evolved into the country’s first digital bank. Farhan Hassan, Chief Digital Officer of Easypaisa Digital Bank, said the platform now offers a full range of banking services similar to those of traditional banks, helping to drive financial inclusion for millions of unbanked and underbanked Pakistanis. Easypaisa currently has around 18 million monthly active users, including 14 million mobile app users.

JazzCash, which began operations in 2012, remains the market leader with 21 million monthly active users and 15 million app users, making it the largest digital financial service provider in the country. Khayam Siddiqi, Head of Communication at JazzCash, attributed this growth to the ease of account opening, which requires no paperwork or branch visits. “Digital wallets offer a suite of services in one place — nano loans, savings, insurance, welfare disbursements, and everyday payments,” he said.

While JazzCash has gained traction in rural areas, Easypaisa enjoys a strong presence in urban centres. Despite occasional speculation surrounding its future amid the Telenor-PTCL merger, Easypaisa has retained a loyal user base. The strength of mobile digital wallets lies in their simplicity — accounts are linked to mobile phone numbers, and transactions are facilitated by local shopkeepers acting as agents for cash-in and cash-out services. In contrast, Upaisa, the mobile wallet offered by Ufone, has a limited footprint, while Zong has yet to enter the digital market.

Published in Dawn, August 16th, 2025

KARACHI: The Pak­is­tan Stock Exchange (PSX) ended flat on Friday as sustained profit-taking in the latter half of the session wiped out earlier gains, with the benchmark KSE-100 index slipping 38 points amid concerns over IMF review delays and falling global oil prices.

The index opened on a strong note and climbed to an intraday high of 1,005 points, but investor caution ahead of the weekend led to profit-booking, pushing the benchmark down to close at 146,491.63 — a marginal decline of 0.03pc, according to Topline Securities Ltd.

Ahsan Mehanti of Arif Habib Corp said the market was weighed down by concerns about losses at State-Owned Enterprises, delays in the IMF’s next review under the Extended Fund Facility, unmet tax collection conditions by provinces, and declining international oil prices.

Engro Fertilisers, Luc­ky Cement, Engro Cor­po­ration, Meezan Bank, and Airlink collectively added 512 points to the index. Meanwhile, losses in Oil and Gas Development Company, United Bank, Pakistan Petroleum, Hub Power, and Mari Petro­leum pulled the index down by 499 points.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that investors largely squared off weekly positions, reflecting mix­ed sentiment. “The index failed to hold above 147,000 as traders adopted a cautious stance,” he said.

Despite the flat close, the index extended its weekly winning streak to an eighth consecutive week, gaining 1,108 points or 0.76pc. It opened the week at 145,650, touched a high of 147,977 and a low of 145,259 before settling at 146,491.

Market participation slowed, with trading volumes down 26.81pc to 473.6 million shares and traded value dropping 19.59pc to Rs32.88bn. Aisha Steel led the volume chart with 30.02 million shares traded.

Published in Dawn, August 16th, 2025

A US senator on Friday announced an investigation into whether Meta AI chatbots were allowed to engage in potentially harmful online exchanges with children.
Republican Senator Josh Hawley posted a copy of a letter to Meta chief executive Mark Zuckerberg demanding all documents and communications related to a report that its AI chatbots were permitted to have “romantic” and “sensual” exchanges with minors.

“We have clear policies on what kind of responses AI characters can offer, and those policies prohibit content that sexualizes children and sexualized role play between adults and minors,” a Meta spokesperson said in response to an AFP inquiry.

Hawley said the Senate Judiciary Committee’s Subcommittee on Crime and Counterterrorism, which he heads, will start an investigation into whether Meta generative AI products “enable exploitation, deception, or other criminal harms to children.”

Meta was put on notice to preserve all relevant records and submit them to Congress by September 19.

The Missouri senator cited a reported example of Meta’s AI chatbot being allowed to refer to an 8-year-old child’s body as “a work of art” and “a treasure I cherish deeply.”

The Federal Board of Revenue (FBR) has set a Rs. 200,000 transaction limit for cash payments on e-commerce Cash on Delivery (CoD) orders. This decision was announced through Circular No. 02 of 2025-26 (Income Tax), dated August 12, 2025.

The move supports the government’s ongoing push toward a cashless economy. Section 21(s) of the Income Tax Ordinance, 2001, confirms that this cash limit applies to retail outlets as well.

FBR explained that the new limit aims to promote digital payments and reduce dependence on cash transactions. It is also expected to improve transparency, simplify payment processes, and curb tax evasion.

E-commerce businesses and consumers must now comply with the Rs. 200,000 cash limit for CoD orders. Authorities believe this step will strengthen Pakistan’s shift toward digital financial systems.

Client Alert  |  August 15, 2025

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From the Derivatives Practice Group: This week, ISDA and the Futures Industry Association submitted a joint response to the Reserve Bank of Australia on its consultation on guidance for Australia’s clearing and settlement facility resolution regime.

New Developments

CFTC Staff Issues No-Action Letter Regarding Event Contracts. On August 7, the CFTC’s Division of Market Oversight and the Division of Clearing and Risk announced they have taken a no-action position regarding swap data reporting and recordkeeping regulations for event contracts in response to a request from the Railbird Exchange, LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization.

SEC Division of Corporation Finance Issues Staff Statement on Certain Liquid Staking Activities. On August 5, the SEC issued a statement regarding certain liquid staking activities. The statement aims to provide greater clarity on the application of federal securities laws to crypto assets, specifically addressing a type of protocol staking known as “liquid staking.” Liquid staking refers to the process of staking crypto assets through a software protocol or service provider and receiving a “liquid staking receipt token” to evidence the staker’s ownership of the staked crypto assets and any rewards that accrue to them. The statement clarifies the division’s view that, depending on the facts and circumstances, the liquid staking activities covered in the statement do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 or Section 3(a)(10) of the Securities Exchange Act of 1934. [NEW]

Acting Chairman Pham Launches Listed Spot Crypto Trading Initiative. On August 4, CFTC Acting Chairman Caroline D. Pham announced that the CFTC will launch an initiative for trading spot crypto asset contracts that are listed on a CFTC-registered futures exchange (a designated contract market). This is the first initiative in the CFTC’s crypto sprint to start implementation of the recommendations in the President’s Working Group on Digital Asset Markets report.

Acting Chairman Pham Announces CFTC Crypto Sprint. On August 1, CFTC Acting Chairman Caroline D. Pham announced that the CFTC will kick off a crypto sprint to start implementation of the recommendations in the President’s Working Group on Digital Asset Markets report.

New Developments Outside the U.S.

ESMA Publishes Data for Quarterly Bond Liquidity Assessment. On August 1, ESMA published its new quarterly liquidity assessment of bonds. For this period, there are currently 1,346 liquid bonds subject to Markets in Financial Instruments Directive (“MIFID II”) transparency requirements. As indicated in the public statement released on March 27, 2024, the quarterly liquidity assessment of bonds will continue to be published by ESMA.

New Industry-Led Developments

ISDA and FIA Respond on Australian Clearing and Settlement Facility Resolution Regime. On August 11, ISDA and the Futures Industry Association (“FIA”) submitted a joint response to the Reserve Bank of Australia (“RBA”) on its consultation on guidance for Australia’s clearing and settlement facility resolution regime. The associations welcome publication of the draft guidance, which provides greater clarity and transparency on the RBA’s approach to the resolution of clearing and settlement facilities in Australia. However, the associations encourage the RBA to provide greater detail on certain aspects of its approach to resolution, including explicit assurance that the power to direct a central counterparty to amend its rules would not be used to amend any rights that any clearing participant has to terminate contracts with or take other action against a clearing house and, more broadly, under what circumstances the RBA would use this direction power. [NEW]

ISDA Releases SwapsInfo First Half of 2025 and the Second Quarter of 2025. On August 7, ISDA released a research note that concludes interest rate derivatives trading activity increased in the first half of 2025, driven by continued interest rate volatility, evolving central bank policy expectations, and persistent macroeconomic uncertainty. Trading in index credit derivatives also rose, as market participants responded to a changing macroeconomic environment and sought to manage credit exposure.

ISDA Responds to IFSCA on Derivatives Reporting and Clearing. On August 5, ISDA responded to the International Financial Services Centres Authority’s (“IFSCA”) consultation on reporting and clearing of over-the-counter (“OTC”) derivatives contracts booked in International Financial Services Centres. In the response, ISDA provided several recommendations including removing one-to-one hedging requirements for OTC derivatives, especially those referencing foreign or IFSC-listed securities, to align with global practice and support flexible risk management.

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The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Marc Aaron Takagaki, Hayden McGovern, Karin Thrasher, and Alice Wang*.

Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:

Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)

Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)

Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)

Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)

Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)

Adam Lapidus, New York (212.351.3869,  alapidus@gibsondunn.com )

Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)

William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )

David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)

Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )

Hayden K. McGovern, Dallas (214.698.3142, hmcgovern@gibsondunn.com)

Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)

Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)

*Alice Wang, an associate in the firm’s Washington, D.C. office, is not admitted to practice law.

© 2025 Gibson, Dunn & Crutcher LLP.  All rights reserved.  For contact and other information, please visit us at www.gibsondunn.com.

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TORONTO — More than 300 Air Canada flights, many of them international trips, have been canceled as the clock ticked closer Friday to a possible strike by flight attendants, leaving travelers stranded around the world and scrambling during the peak summer travel season.

The bitter contract fight between Canada’s largest airline and the union representing 10,000 of its flight attendants escalated Friday as the union turned down the airline’s request to enter into government-directed arbitration, which would eliminate its right to strike and allow a third-party mediator to decide the terms of a new contract.

Flight attendants were poised to walk off the job around 1 a.m. EDT on Saturday. Around the same time, Air Canada said it would begin locking out the flight attendants from airports. The actions threaten to impact about 130,000 travelers a day.

Federal Jobs Minister Patty Hajdu on Friday urged both sides to work with federal mediators “and get a deal done.”

“Time is precious and Canadians are counting on you,” Hajdu said in a statement.

The Canadian carrier already started canceling flights Thursday. It expects to call off 500 flights by the end of Friday and almost all of its flights by Saturday morning. A complete shutdown threatens to impact about 130,000 people a day, and it could affect some 25,000 Canadians a day who may become stranded abroad.

By Friday afternoon, Air Canada had called off at least 128 domestic flights and 194 international flights that were scheduled to depart on Friday and Saturday, according to aviation analytics firm Cirium. On Thursday, when the airline said it was beginning it’s “phased wind down” of most operations, 18 domestic flights and four international flights were canceled.

Montreal resident Alex Laroche, 21, and his girlfriend had been saving since Christmas for their European vacation. Now their $8,000 trip with nonrefundable lodging is on the line as they wait to hear from Air Canada about the fate of their Saturday night flight to Nice, France.

Laroche said he considered booking new flights with a different carrier, but he said most of them are nearly full and more than double the $3,000 they paid for their original tickets.

“At this point, it’s just a waiting game,” he said.

Laroche said he was initially upset over the union’s decision to go on strike, but that he had a change of heart after reading about the key issues at the center of the contract negotiations, including the issue of wages.

“Their wage is barely livable,” Laroche said.

Air Canada and the Canadian Union of Public Employees have been in contract talks for about eight months, but they have yet to reach a tentative deal.

Both sides say they remain far apart on the issue of pay and the unpaid work flight attendants do when planes aren’t in the air.

The airline’s latest offer included a 38% increase in total compensation, including benefits and pensions over four years, that it said “would have made our flight attendants the best compensated in Canada.” But the union pushed back, saying the proposed 8% raise in the first year didn’t go far enough because of inflation.

Passengers whose travel is impacted will be eligible to request a full refund on the airline’s website or mobile app, according to Air Canada.

The airline said it would also offer alternative travel options through other Canadian and foreign airlines when possible. But it warned that it could not guarantee immediate rebooking because flights on other airlines are already full “due to the summer travel peak.”

How long the airline’s planes will be grounded remains to be seen. But Air Canada Chief Operating Officer Mark Nasr has said it could take up to a week to fully restart operations once a tentative deal is reached.

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Associated Press airlines writer Rio Yamat reported from Las Vegas.