FTI Consulting News Bytes – 15 May 2026

FTI Consulting News Bytes

It’s been another bumper week of news in the TMT space, with AI and digital trust dominating headlines. In this week’s newsletter, we start with online lifestyle magazine SheerLuxe, which sparked outrage after unveiling AI-generated fashion influencers. M&A activity has also continued bubbling as eBay dismissed GameStop’s extraordinary $56bn takeover bid as “not credible”. Governments continue to grapple with the challenges of AI, with the Trump administration’s trip to China including talks on AI safety guardrails. Elsewhere, the UN warned that AI-powered abuse and deepfakes are increasingly targeting women in public life, and WhatsApp launched a new “incognito” AI chat mode.

This week’s news

Fashion magazine creates fake influencers — and followers hate them

According to The Times, SheerLuxe has sparked backlash after launching four AI-generated influencers designed to offer fashion and beauty advice, with critics accusing the publisher of promoting unrealistic beauty standards and replacing human creativity with artificial personas. The virtual characters, including “beauty obsessive” Gigi and fashion-focused Brooke, drew criticism from followers and industry figures alike, who argued AI influencers cannot authentically recommend products or replicate lived experiences. Fashion activist Brett Staniland said the move showed SheerLuxe had failed to listen to its audience, while marketing experts warned consumers are increasingly resistant to brands using AI in ways perceived to replace real people. 

Ebay rejects $56bn GameStop bid  

eBay has rejected a surprise $56bn takeover approach from GameStop, calling the unsolicited bid “neither credible nor attractive” amid concerns over financing, governance and the risks of combining the two businesses. The video game retailer, led by chief executive Ryan Cohen, had proposed a cash-and-stock deal valuing eBay at $125 per share and argued the merger would create a dominant online marketplace for gaming and collectibles. Despite eBay’s rejection, Cohen has signalled he may pursue a hostile bid directly with shareholders, insisting he “won’t take no for an answer” as the unusual takeover battle continues to attract attention across Wall Street and social media, the Financial Times reports.

US and China discuss AI guardrails to safeguard most powerful models

The US and China are holding talks in Beijing on AI safety guardrails as officials seek to prevent powerful AI models from being exploited by criminal or terrorist groups, writes Reuters. US Treasury Secretary Scott Bessent said the discussions would focus on establishing best practices that balance innovation with security, while maintaining America’s lead in the global AI race. The talks come amid concerns over vulnerabilities exposed by Anthropic’s new Mythos AI system, which has reportedly prompted urgent software fixes across the banking sector. Meanwhile, NVIDIA chief executive Jensen Huang is attending the summit as reports emerge that the US has approved sales of advanced H200 chips to a number of Chinese companies, highlighting the delicate balance between cooperation and competition in AI development.

UN warns women in public life face increasingly sophisticated online violence 

A report by UN Women warns that women in public life — including journalists, activists and campaigners — are facing increasingly sophisticated online abuse driven by AI, anonymity and weak legal protections, according to a global survey conducted in 2025 across 119 countries. The report, writes The Guardian, found rising use of deepfakes, non-consensual image sharing and AI-generated sexual abuse, with many women experiencing anxiety, PTSD and self-censorship as a result. Researchers said these attacks are often coordinated to damage reputations and silence women from public debate. The UN warned that online misogyny and “virtual rape” technologies threaten decades of progress in gender equality and urged governments and tech companies to strengthen safeguards, accountability and legal protections. 

WhatsApp launches totally private ‘incognito’ conversations with its AI chatbot

WhatsApp has launched an “incognito” mode for its AI chatbot, allowing users to have conversations that are not stored or monitored by Meta, according to the BBC. The feature is aimed at sensitive topics like health, finances and relationships, and means neither the user nor the AI’s responses will be monitored if the feature is activated, and past conversations will disappear from the chat for the user. The feature is being met with some concern, however, as cybersecurity experts warn the lack of records could reduce accountability if harmful AI advice contributes to injury or death. Meta says strict safeguards will block harmful or illegal requests. 

Top Tweets of the Week

• Mark Kleinman, City Editor, Sky News: Revealed: Revolut is targeting a late summer launch for a private banking service in Britain that will cater to customers with at least £500,000 on deposit; it will then be followed by expansion into France, and potentially other markets, next year. 
• WIRED: There’s a strange and under-discussed side effect of the AI boom: what it’s doing to family dynamics. By which we mean: how it’s potentially destroying family dynamics. https://t.co/exgPqh8tla
• DW News: Three major artists from pop, past and present, will perform during half time of the World Cup final this year. The Superbowl-style pageant will eat into the time to analyze the biggest football game in four years. https://t.co/viLzCYcXqW

Number of the week

$135 bn The amount Netflix has spent on film and TV over the past decade, according to Reuters.