News/Economy
AI advances faster than corporations can possibly adapt, executives warn
Executives at Semafor's World Economy Summit highlighted a growing disconnect between AI's rapid technological advancement and corporate America's ability to adapt organizationally. While AI is enabling breakthrough innovations like Formula 1 teams using digital twins instead of physical testing, legacy companies are struggling to rewire decades-old business processes quickly enough to keep pace with the technology. What you should know: AI is delivering on ambitious promises faster than many anticipated, creating practical solutions that were impossible just years ago. Sassine Ghazi, CEO of Synopsys, a chip design software company, pointed to Formula 1 as an example where teams now create...
read Oct 17, 2025Uber’s gig within gig allows drivers to make money labeling AI data
Uber has launched a pilot program in the US that allows its drivers to complete data labeling tasks during downtime, expanding on a similar initiative already running in India. The move positions Uber to become a major player in the AI training data market by leveraging its global workforce of drivers and delivery workers to help enterprises scale their artificial intelligence efforts. What you should know: Uber's AI Solutions division is testing a program where select US drivers and couriers complete digital tasks like recording speech samples, submitting multilingual documents, and uploading images. The pilot builds on a successful program...
read Oct 17, 2025AI data centers projected to comprise 12% of US electricity consumption by 2028
Rising electricity costs across America are increasingly linked to the artificial intelligence boom, as data centers powering AI tools strain the power grid and drive up consumer bills. The average price of electricity has jumped 13% since 2022, with data centers projected to consume up to 12% of US electricity by 2028—nearly triple their 2023 usage—creating unprecedented demand that utilities struggle to meet. What you should know: Individual consumers are feeling the impact of AI's massive power requirements in their monthly electricity bills. Kentucky nurse Lindsey Martin saw her bill spike from around $150 two to three years ago to...
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4 power-hungry AI data centers spark citizen concerns in Southeast Michigan
At least four massive AI data centers are being proposed across Southeast Michigan, sparking heated community debates about their environmental and economic impacts. The surge comes as Michigan lawmakers recently extended tax breaks for data center projects, positioning the state to capitalize on the AI boom while raising concerns about water usage, energy consumption, and transparency in rural communities. What you should know: These hyperscale data centers require enormous amounts of power and water to operate AI systems and keep them cool. A single AI server can consume more than 10 kilowatts of power, with specialized chips drawing up to...
read Oct 16, 2025Fed policymaker: Anyone claiming AI certainty is “a hubristic fool”
Federal Reserve Governor Stephen Miran said Thursday that predicting artificial intelligence's impact on the U.S. labor market is "very difficult to anticipate," despite AI's potential to significantly boost productivity growth. Speaking at Semafor's World Economy Summit, Miran dismissed anyone claiming certainty about AI's labor effects as "a hubristic fool," highlighting the uncertainty even top economic policymakers face as they navigate AI's integration into the economy. What he's saying: Miran emphasized both AI's promise and the inherent unpredictability of its economic effects. "I think AI has the potential to really raise the productivity growth rate in the economy, which would be...
read Oct 14, 2025Only 13 countries ready for AI workforce transformation, claims study
Artificial intelligence is reshaping the global economy at breakneck speed, but most countries remain woefully unprepared to train their workforces for an AI-driven future. While nearly half of today's jobs could vanish within two decades due to automation, an estimated 65% of current elementary school students will eventually work in careers that don't yet exist—many of them requiring sophisticated AI knowledge. This workforce transformation presents both an enormous challenge and opportunity. A comprehensive study examining the national AI preparation strategies of 50 countries reveals stark disparities in how governments are approaching this challenge, with only 13 nations demonstrating comprehensive plans...
read Oct 14, 2025IMF economist: AI investment boom could trigger dot-com-style correction, though little more
The International Monetary Fund's chief economist Pierre-Olivier Gourinchas warns that the current AI investment boom could lead to a dot-com-style market correction, though he believes it's unlikely to trigger a systemic financial crisis. Unlike the 2008 housing bubble that relied heavily on debt financing, today's AI investments are funded primarily by cash-rich tech companies, reducing the risk of broader economic contagion. The big picture: Tech companies are pouring hundreds of billions into AI infrastructure without the leverage-based financing that made previous bubbles systemically dangerous. AI-related investment has increased by less than 0.4% of U.S. GDP since 2022, compared to the...
read Oct 14, 2025Google and World Bank partner on AI services for emerging markets
Google and the World Bank have partnered to develop AI-powered public digital infrastructure in emerging markets, focusing on interoperable networks that will help citizens access government services through simple devices in over 40 languages. The collaboration combines Google Cloud's AI technology with the World Bank's development expertise to create Open Network Stacks for critical sectors including agriculture, healthcare, and education. What you should know: The partnership builds on a successful pilot program that has already demonstrated real-world impact for underserved populations. A pro bono pilot in Uttar Pradesh, India, helped thousands of smallholder farmers increase their profitability through AI-powered agricultural...
read Oct 14, 2025France’s Publicis raises growth forecast as AI powers 73% of operations
French advertising giant Publicis raised its full-year organic growth forecast for the second time in 2025, crediting artificial intelligence as its primary growth driver. The company now reports that 73% of its operations are AI-powered, demonstrating how strategic AI implementation can deliver measurable business results amid ongoing debates about AI's practical value. What you should know: Publicis has systematically invested €12 billion ($12.7 billion) in data, technology, and AI infrastructure since 2015, enabling the company to monitor consumer behavior across more than 4 billion individuals globally. The advertising firm now individualizes marketing strategies at unprecedented scale, leveraging this massive data...
read Oct 14, 2025BlackRock exec says AI investments aren’t in a bubble—capacity is the real problem
BlackRock's Alex Brazier says artificial intelligence investments are not in a bubble and current valuations appear "pretty reasonable." He argues that the primary challenge facing AI development today is capacity constraints, which recent large-scale deals have been designed to address. What you should know: Brazier's assessment counters growing concerns about AI investment overheating in the current market environment. The BlackRock executive specifically pointed to capacity as the main bottleneck limiting AI progress, rather than inflated valuations or speculative investment. Recent mega deals in the AI space have been strategically focused on addressing these capacity constraints. In plain English: When Brazier...
read Oct 14, 2025Democrats, Republicans on same page as data centers become bipartisan political target
Local and state candidates across both parties are increasingly targeting data centers as a key campaign issue, blaming them for rising electricity bills as AI investments drive massive energy demands. The bipartisan backlash is particularly intense in Virginia's suburbs, where voters are becoming single-issue opponents of data center expansion despite the industry's economic benefits. The big picture: Data centers have become an unexpected political lightning rod, uniting Republicans and Democrats in opposition to what they see as corporate freeloading on local energy infrastructure. In Prince William County, Virginia, both Republican Patrick Harders and Democrat George Stewart agreed to block future...
read Oct 13, 2025Old school coal relied on as US datacenter power needs surge
US datacenters are increasingly turning to coal power due to rising natural gas prices and surging electricity demand driven by AI workloads. This shift represents a significant reversal for climate goals, as coal generation has increased nearly 20% year-to-date, with Jefferies, a financial services firm, projecting this trend will continue through 2027 as operators race to bring new capacity online during the expected 2026-2028 demand surge. What you should know: The datacenter boom is forcing utilities to extend the life of coal plants they had planned to decommission. In Omaha, one power company reversed plans to stop burning coal, citing...
read Oct 10, 2025Wall Street analysts debate if AI buildout spending slows economic growth
Wall Street analysts are increasingly questioning whether artificial intelligence, the driving force behind the current three-year bull market, might actually be hindering short-term economic growth despite its long-term promise. The debate centers on whether massive AI infrastructure investments are diverting resources from other productive economic activities, creating immediate headwinds even as they build the foundation for future productivity gains. The big picture: Top economists at major financial institutions are split on AI's current economic impact, with some warning that the technology's resource demands may be creating growth gaps in the near term. UBS's Paul Donovan, global chief economist for UBS...
read Oct 10, 2025Maryland lawmakers prepare AI regulation bills targeting housing, employment
Maryland lawmakers are set to consider multiple AI regulation bills during the January legislative session, addressing concerns about misuse in industries, privacy violations, and misinformation. The proposed legislation reflects growing recognition that artificial intelligence requires comprehensive oversight, with state officials comparing its transformative potential to electricity while acknowledging similar risks. What you should know: Maryland's General Assembly will weigh several AI-focused bills covering education, employment screening, and consumer protection. State Del. Caylin Young, a Baltimore Democrat, views AI as "transformational" and comparable to "the wheel, like electricity, like the computer and the semiconductor." Young's proposed education bill would require the...
read Oct 10, 2025Insurance brokerage Acrisure cuts 400 jobs globally as AI takes over accounting operations
Acrisure, a Grand Rapids-based insurance brokerage company, announced it will implement artificial intelligence for accounting operations, resulting in 400 job cuts globally—200 of which will come from its Grand Rapids headquarters. The decision highlights the growing tension between AI-driven efficiency gains and workforce displacement as companies increasingly turn to automation to streamline operations. What you should know: The AI implementation specifically targets accounting functions, representing a significant shift in how the insurance brokerage handles financial operations. Acrisure's move affects 400 positions worldwide, with half of the cuts concentrated at the company's Michigan headquarters. The decision reflects a broader trend of...
read Oct 9, 2025AI bubble concerns grow as handful of companies do all the stock market work
AI investments are driving U.S. economic stability despite President Trump's tariff and immigration policies creating business uncertainty. Deutsche Bank analysts warn that without tech-related spending, the U.S. "would be close to, or in, recession this year," but growing concerns about AI's actual utility could threaten this economic lifeline. The big picture: Seven major tech companies heavily invested in AI are single-handedly pulling the broader S&P 500 forward, with massive infrastructure investments like the $500 billion Stargate program and Nvidia's $100 billion OpenAI commitment keeping the economy afloat. Nvidia recently became the first U.S. company to hit $4 trillion in market...
read Oct 9, 2025Hard hats over hard tech: Sanders proposes robot tax as AI threatens 100M US jobs
Bernie Sanders has proposed a "robot tax" on corporations to address potential job displacement from AI automation, warning that artificial intelligence could eliminate nearly 100 million US jobs within a decade. The Vermont senator's plan would redistribute wealth created by AI technologies back to affected workers, addressing what he sees as a growing productivity-wage gap that has left American workers behind despite massive corporate profit increases. What you should know: Sanders' report outlines a dire scenario where AI automation could devastate employment while corporations pocket the benefits. The report warns that "AI and automation could destroy nearly 100 million US...
read Oct 9, 2025Bank of England warns AI hype could trigger global market crash
The Bank of England warned on Wednesday that global financial markets could face a "sharp correction" if investor sentiment turns negative on artificial intelligence or the U.S. Federal Reserve's independence. The central bank's Financial Policy Committee issued its strongest warning to date about AI-triggered market risks, noting that U.S. stock valuations have reached levels similar to the dotcom bubble peak and expressing concern about potential spillovers to Britain's financial system. The big picture: Market concentration and AI-driven valuations have created unprecedented vulnerability in global financial markets. The five largest companies now represent 30% of the S&P 500's total valuation, marking...
read Oct 9, 2025Trump takes 10% stake in mining firm, stock jumps 300%
The Trump administration has taken a 10 percent stake in Trilogy Metals, a tiny Canadian mining company, sending its stock soaring nearly 300 percent over 48 hours. This marks the latest in a series of government equity investments that signal a dramatic shift from traditional regulatory approaches to a venture capital-style strategy focused on securing America's position in the AI supply chain race. The big picture: The White House is operating more like an investment firm than a traditional government regulator, taking direct equity stakes in companies critical to semiconductor and mineral supply chains. The administration has also invested in...
read Oct 8, 2025AI transforms tasks rather than eliminates jobs, says conservative think tank analyst
AI won't replace entire jobs but will transform the specific tasks workers perform, according to James Pethokoukis, an economic policy analyst at the American Enterprise Institute, a conservative think tank. His perspective challenges common narratives about AI-driven unemployment, suggesting a more nuanced view of how artificial intelligence will reshape the workforce rather than eliminate it entirely. What you should know: Pethokoukis argues that AI's impact on employment will be task-specific rather than job-eliminating, fundamentally changing how work gets done without necessarily reducing overall employment.• This perspective appeared during a CNBC "Power Lunch" discussion about recent AI employment analysis.• The conversation...
read Oct 7, 2025San Francisco reigns supreme, adding 11K tech jobs while other cities stagnate
San Francisco has reasserted its dominance in tech hiring with unprecedented force, adding nearly 11,000 net new positions over the past 12 months—nearly double New York's growth and dwarfing other metropolitan areas by massive margins. This hiring surge, driven primarily by artificial intelligence expansion, signals that geography remains a critical factor for tech career advancement despite years of remote work predictions. The data reveals a stark reality: while many proclaimed the death of Silicon Valley during the pandemic, San Francisco has not only recovered but accelerated past its competitors. For professionals seeking to break into tech or advance their careers,...
read Oct 7, 2025AI firms’ $500B interlocking, circular investments raise bubble concerns
A growing network of circular investments among AI's biggest companies is raising concerns about an artificial bubble, with Nvidia investing in OpenAI while OpenAI buys services from Oracle and CoreWeave—both of which purchase Nvidia chips. This interconnected web of deals, worth hundreds of billions collectively, mirrors patterns that preceded the 2000 dot-com crash and could threaten the entire industry if AI productivity gains fail to materialize. The circular deal structure: Recent partnerships reveal how tightly interwoven the AI ecosystem has become, with companies essentially funding each other's growth. Nvidia plans to invest up to $100 billion in OpenAI, which announced...
read Oct 6, 2025Jargon-heavy AI ads blanket San Francisco, leaving non-techies scratching their heads
San Francisco Chronicle columnist Carl Nolte observes how artificial intelligence advertising has dramatically transformed the city's visual landscape, with AI company ads now dominating public transportation and subway stations. The ubiquitous presence of these cryptic, tech-focused advertisements signals San Francisco's latest reinvention as it emerges from recent challenges with a new identity centered around AI innovation. What you should know: AI advertising has become inescapable across San Francisco's public transportation system, featuring messages that would have been incomprehensible just a year ago. Muni buses display ads for AI code review tools like "Code Rabbit," while entire subway stations are covered...
read Oct 6, 2025China deploys 300K robots to compensate for manufacturing workforce shrinkage
China installed nearly 300,000 new industrial robots last year—accounting for over half of all global robot installations—as the nation deploys automation to counter a shrinking population that has declined for three consecutive years. This robotic surge is sustaining China's manufacturing dominance despite losing about 2 million people in the latest count, fundamentally reshaping global supply chains and industrial competition. The big picture: China's demographic crisis is driving an unprecedented automation revolution that's keeping factories operational while the working-age population shrinks by tens of millions over the next decade. The country's operational robot stock has surpassed 1 million units, far outpacing...
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