Open AI's new India office | Google's new AI mode | What is AI psychosis?

The world of Artificial Intelligence has only begun to affect human lives. In times like these, staying up-to-date with the AI world is of utmost importance. Storyboard18 brings you the top AI news of the day.

OpenAI to establish first India office in New Delhi later this year

OpenAI, the company behind ChatGPT, has announced plans to open its first office in India later this year. The office, which will be located in New Delhi, marks a significant step in the firm’s strategy to deepen its footprint in one of its largest and fastest-growing markets.

The organisation confirmed on 22 August that it has formally registered an entity in India and has already begun building a dedicated local team. The new team will work closely with a range of stakeholders, including government bodies, industry partners, developers, businesses, and academic institutions, to foster stronger collaboration around artificial intelligence.

Read More: MIT study finds 95% of firms struggling to reap returns on AI investments

Google’s AI mode rolls out to 180 countries, adds restaurant bookings and tailored results

Google has announced a major global expansion of its AI Mode feature, extending access to 180 new countries in English and introducing a suite of agentic and personalised capabilities. Until now, the feature was only available to users in the United States, United Kingdom and India.

AI Mode allows users to ask complex questions directly within Search and continue with follow-up queries for deeper exploration of a topic. The company said it plans to expand the feature further by supporting additional languages and regions in the near future.

Read More: Google’s AI mode rolls out to 180 countries, adds restaurant bookings and tailored results

Meta restructures AI division into four units to drive superintelligence push

Meta Platforms Inc. has once again reorganised its artificial intelligence operations, this time splitting its newly created AI division into four distinct teams in a bid to sharpen focus and accelerate progress towards what it terms “superintelligence.” The restructuring involves reallocating many of the company’s AI employees and integrating recently acquired talent, reflecting the scale of investment Meta has made in this area.

The internal shake-up was announced in a memo circulated on Tuesday by Alexandr Wang, Meta’s recently appointed Chief AI Officer and former chief executive of Scale AI. In the message, Wang emphasised the urgency of reorganising the company’s AI efforts to align with the ambition of developing systems more capable than humans.

What is 'AI Psychosis'? Microsoft’s AI chief warns of illusions of consciousness

The rapid rise of artificial intelligence has sparked both excitement and unease, with a growing number of reports about people forming emotional attachments to chatbots. From individuals claiming to fall in love with AI to treating these systems as living companions, such incidents are now being described as symptoms of AI psychosis.

This phenomenon, which refers to humans perceiving AI systems as conscious beings, has caught the attention of Mustafa Suleyman, Microsoft’s Chief Executive of AI and former co-founder of Google DeepMind. Suleyman, who has long been considered one of the most influential voices in the AI space, admitted in a recent post on X (formerly Twitter) that the idea of so-called “AI consciousness” keeps him awake at night.

MIT study finds 95% of firms struggling to reap returns on AI investments

Despite the frenzy around artificial intelligence and its promise to revolutionise industries, a new study by the Massachusetts Institute of Technology (MIT) suggests that the vast majority of companies are failing to see any meaningful returns on their AI investments.

The report, titled “The GenAI Divide: State of AI in Business 2025”, found that nearly 95 per cent of firms which attempted to incorporate generative AI into their workflows have experienced no measurable impact on profits. This revelation comes even as technology giants such as Microsoft and Google continue to restructure workforces, laying off staff and increasingly turning to AI in pursuit of higher margins.