The Download: Microsoft’s stance on erotic AI, and an AI hype mystery

Mustafa Suleyman, CEO of Microsoft AI, is trying to walk a fine line. On the one hand, he thinks that the industry is taking AI in a dangerous direction by building chatbots that present as human: He worries that people will be tricked into seeing life instead of lifelike behavior.

On the other hand, Suleyman runs a product shop that must compete with those peers. Last week, Microsoft announced a string of updates to its Copilot chatbot designed to make Copilot more expressive, engaging, and…