Tech faces its Big Tobacco moment, but teens have already moved on

The "Big Tobacco moment" for technology may be on the horizon, but the next generation of tech is focusing on removing screens and integrating software into the background. The trials involving Meta, like the one in Oakland, California, are centered around the strategies employed by companies to keep teenage users engaged. However, the future of tech appears to be shifting towards AI, with a growing emphasis on software that works seamlessly without the need for constant interaction.

Teenagers tend to adapt to new technologies far quicker than companies, regulators, or courts can keep up. Platforms like Instagram and Facebook have faced scrutiny over their impact on children, but chatbots are set to be the next major development in the industry. In response to the ongoing lawsuits surrounding youth suicides, OpenAI has launched ChatGPT for Teens, which includes additional safeguards against content related to self-harm, eating disorders, and sexual conversations, as well as a "Study Mode" feature that encourages students to focus on their homework rather than receiving immediate answers.

Despite the legal challenges faced by companies such as OpenAI, a recent Gallup poll indicates that nearly half of US adults aged 18 to 29 believe that AI does more harm than good. This sentiment has grown significantly since 2024, which may pose a significant challenge for the tech industry. The emergence of Luddite clubs on college campuses and the growing authenticity movement in China, where people prefer non-AI created content, further highlight this shift in preferences among young people.

The core of social media's business model is at stake in the Meta trial, according to a Vanderbilt law professor quoted by CNBC's "Squawk Box." However, the children have already moved on from social media, with many opting for alternative platforms or steering clear of technology altogether.