News/Finance
Vanguard model predicts AI has 45% chance to transform economy with vastly different stock returns
Vanguard's global chief economist Joseph H. Davis has released new research suggesting that if artificial intelligence truly revolutionizes productivity, its benefits will extend beyond tech giants to traditional value stocks across all sectors. His proprietary model assigns a 45-50% probability to an "AI transforms" scenario where technological breakthroughs drive faster economic growth, compared to a 35-45% chance of disappointing AI adoption leading to economic stagnation. What you should know: Vanguard's economic model projects two drastically different investment landscapes over the next decade, with dramatically different asset class performance depending on AI's actual impact. In the optimistic "AI transforms" scenario, the...
read Sep 12, 2025Bank of New York Mellon invests $10M in Carnegie Mellon AI research lab
Bank of New York Mellon is investing $10 million over five years to establish an AI research lab at Carnegie Mellon University, with the physical BNY AI Lab set to open this academic year. The partnership positions both organizations at the forefront of AI research in financial services while strengthening Pittsburgh's growing reputation as an artificial intelligence hub. What you should know: The collaboration extends far beyond basic research funding, creating comprehensive opportunities for students and faculty alike. The BNY AI Lab will support faculty-led research and multi-disciplinary projects focused on AI governance, trust, and accountability frameworks for financial services....
read Sep 11, 2025Study finds central banks only partially shielded from political influence
A new study using AI agents to simulate Federal Reserve meetings found that political pressure significantly polarizes central bank decision-making, even within institutions designed to be independent. The research by George Washington University academics suggests the Fed is "only partially insulated from politics," revealing how external scrutiny can fragment board consensus and increase dissent in monetary policy discussions. The simulation setup: Researchers created AI agents modeled on real Federal Open Market Committee (FOMC) members using their historical policy stances, biographies, and speeches to replicate the July 2025 meeting. The AI agents processed real-time economic data and financial news to reach...
read Sep 10, 2025Custody bank BNY joins the 5% of companies seeing real AI ROI with internal tool
BNY, one of the world's largest custody banks, is among just 5% of companies seeing meaningful return on investment from artificial intelligence initiatives, according to the bank's Chief Information Officer. The company has developed an internal AI tool called "Eliza" and is working toward 100% employee adoption of AI technology, positioning itself as a leader in enterprise AI implementation. What you should know: BNY stands out in a crowded field where most companies struggle to demonstrate concrete AI ROI. Only 5% of organizations are currently seeing meaningful returns on their AI investments, according to Leigh-Ann Russell, BNY's Chief Information Officer...
read Sep 10, 2025The Big Rethink: Klarna CEO admits company shifted from AI cost-cutting after $15B IPO
Klarna's CEO Sebastian Siemiatkowski admitted the Swedish fintech company moved too aggressively with AI implementation, prioritizing cost-cutting over service improvements after raising $1.37 billion in its U.S. IPO. The admission comes as the buy-now-pay-later lender, valued at $15 billion, shifts its AI strategy toward enhancing customer and merchant experiences rather than simply reducing operational expenses. What you should know: Klarna has spent the last six months course-correcting its AI approach after recognizing it "over indexed" on cost reduction. The company cut its workforce from 5,000 to 3,800 employees last year, with AI chatbots handling customer queries that previously required 700...
read Sep 9, 2025California tax and fee bureaucracy launches $445K AI assistant to handle calls
California's Department of Tax and Fee Administration has launched an AI-powered virtual assistant to help its call center handle taxpayer inquiries, marking one of three state-funded AI initiatives under Governor Gavin Newsom's broader technology adoption effort. The $445,000 pilot program aims to eliminate the need to reassign workers during peak tax season when call volumes spike by over 50%, while potentially enabling the department to answer over 10,000 additional calls annually. The big picture: California is testing generative AI across government services while navigating labor concerns and public trust issues as the technology becomes more prevalent in public sector operations....
read Sep 9, 2025Ledger leaders: Fintech company Ramp hits $22.5B valuation with AI-powered expense automation
Ramp has raised $22.5 billion in valuation across two funding rounds just two months apart, cementing its position as one of the fastest-growing fintech companies challenging American Express in the corporate credit card market. The six-year-old startup, which crossed $1 billion in annualized revenue in August and serves over 45,000 businesses, is leveraging AI-powered automation to transform how companies manage expenses and spending—positioning itself to capture market share from established financial giants with a 169-year head start. The big picture: Ramp has evolved from a simple corporate credit card company into a comprehensive financial platform that promises to save businesses...
read Sep 9, 2025Citigroup hires IBM veteran as new AI head to accelerate banking transformation
Citigroup has appointed Shobhit Varshney, a longtime IBM executive, as its new head of AI to accelerate the bank's artificial intelligence initiatives across its operations. The hire signals Wall Street's intensifying race to integrate AI deeper into banking, as Citi joins competitors like JPMorgan and Goldman Sachs in deploying AI tools to automate routine work and boost efficiency. What you should know: Varshney joins from IBM, where he led data and AI for the consulting business across the U.S., Canada, and Latin America. He will report to Chief Operating Officer Anand Selva and work closely with Chief Technology Officer David...
read Sep 5, 2025Medical misinformation via TikTok, Facebook costs US healthcare up to $300M daily, survey finds
Medical misinformation on social media platforms has evolved into a significant economic burden for American healthcare, with AI technology accelerating the spread of false health claims. A 2025 survey of over 1,000 U.S. physicians found that 61% reported patients being influenced by misinformation at least moderately in the past year, with 57% saying it significantly undermines their ability to deliver quality care. The big picture: False health information spreads 70% faster than accurate content on social platforms, according to MIT research, because people naturally share novel and emotional content over factual information. The World Health Organization has termed this phenomenon...
read Sep 4, 2025Visa’s AI toolkit cuts payment integration time from weeks to hours
Visa has expanded its Intelligent Commerce platform with Model Context Protocol (MCP) support, making it easier for developers to build AI-powered shopping experiences using Visa's payment network. The update includes a new MCP Server and Visa Acceptance Agent Toolkit that should accelerate development from weeks to hours, positioning Visa to capture more of the growing AI-driven e-commerce market. What you should know: The MCP Server creates a streamlined integration layer that connects AI assistants to Visa's payment APIs while maintaining security standards. Developers can now access Visa Intelligent Commerce APIs through the MCP Server, which Visa describes as a "ready-made...
read Sep 3, 2025PayPal offers 430M users free $200 Perplexity AI browser trial
PayPal and Venmo users in the U.S. and select global markets will receive early access to Perplexity's new AI-powered Comet browser through a free 12-month trial of the startup's Pro subscription, worth $200 annually. This partnership gives the Nvidia-backed AI search company access to PayPal's 430 million users while positioning PayPal's new subscriptions hub as a gateway for premium digital services. What you should know: The collaboration marks one of the first major offerings in PayPal's newly launched subscriptions management hub, which helps users track and manage recurring payments. Users can sign up for Perplexity Pro directly through the PayPal...
read Sep 2, 2025Chinese AI chip maker Cambricon hits $81B valuation despite revenue risks
Cambricon Technologies, a Beijing-based AI chip designer, has seen its stock price soar to a market valuation of approximately $81.2 billion, surpassing established companies like MediaTek and SMIC despite generating significantly lower annual revenue. The meteoric rise reflects investor enthusiasm for China's domestic AI hardware ecosystem, though questions remain about the sustainability of its growth amid heavy client concentration and geopolitical pressures. The big picture: Cambricon's financial turnaround has been dramatic, generating RMB28.81 billion (approximately $4.03 billion) in revenue during the first half of 2025—more than 40 times the figure from a year earlier. The company also achieved profitability with...
read Sep 2, 2025AI startup “WagerGPT” and more chase $150B sports gambling market with mixed results
A growing number of entrepreneurs are developing AI-powered gambling tools, betting that artificial intelligence can give ordinary bettors an edge in the rapidly expanding online sports betting market. While some claim success rates of 56-60 percent compared to standard odds of 52 percent, the field remains largely experimental with no clear wave of newly minted millionaires emerging from AI-assisted gambling. The big picture: The convergence of America's booming $150 billion sports betting industry with the AI gold rush has created a cottage industry of startups promising to turn bots into winning bet-makers. Americans spent over $150 billion on sports-related wagers...
read Sep 1, 2025Death, Taxes and AI: IRS adopts new tech for fraud detection as 95% of US companies embrace automation
The IRS is increasingly integrating artificial intelligence into its operations, from call centers to fraud detection systems, as part of a broader technology transformation following pandemic-related challenges. This shift reflects a wider trend where 95% of U.S. companies now use generative AI, marking a significant evolution in how both public and private sectors leverage automation for core functions. The big picture: Danny Werfel, former IRS Commissioner and current strategic advisory board member at alliant, describes AI as presenting both "an opportunity and a risk" for tax administration, with the agency expanding from initial call center applications to chatbots and scam...
read Aug 29, 2025How Intuit ditched chatbots and built AI agents that actually work
When Intuit's CEO demanded the company deliver its most ambitious AI launch by September 2023, the $200 billion software giant behind QuickBooks, TurboTax, and Mailchimp responded with characteristic speed. The result was Intuit Assist—a chatbot-style assistant grafted onto existing applications to demonstrate the company's AI credentials. It was supposed to revolutionize how small businesses managed their finances. Instead, it flopped spectacularly. "When you take a beautiful, well-designed user interface and you simply plop human-like chat on the side, that doesn't necessarily make it better," Alex Balazs, Intuit's Chief Technology Officer, reflects on the failed launch. The chatbot consumed valuable screen...
read Aug 27, 2025Richtech Robotics stock rises 4.9% on Starbucks and Domino’s partnerships
Richtech Robotics Inc. stock surged 4.89% on August 27, 2025, following strategic partnerships with major brands including Starbucks, Domino's, and Airbnb for AI-driven automation solutions. The uptick reflects growing investor confidence in the company's ability to integrate cutting-edge robotics technology into mainstream business operations, despite underlying financial challenges that continue to pressure profitability metrics. Key financial metrics: Richtech Robotics, a publicly traded automation technology company, reported revenues of $4.24 million but continues to face profitability challenges with negative EBIT and net income measures. The company maintains strong liquidity with a current ratio of 120.2, indicating solid coverage of short-term financial...
read Aug 27, 2025Leveraged AI ETFs face $260B test as Nvidia earnings loom
The AI-driven boom in leveraged ETFs tied to individual stocks is set to face a critical test with Nvidia's Wednesday earnings report, as investors have poured billions into speculative products designed to amplify their AI-themed bets. This surge reflects unprecedented retail investor appetite for AI exposure, with 112 new leveraged ETFs launching in 2025 compared to just 38 in all of 2024, creating what analysts warn is an increasingly crowded and volatile market. The big picture: AI companies now dominate the leveraged ETF landscape, with more than half of all 190 single-stock leveraged and inverse ETFs in the U.S. connected...
read Aug 27, 2025Snowflake raises 2026 forecast to $4.4B as AI drives analytics demand
Snowflake raised its fiscal 2026 product revenue forecast to $4.40 billion, up from $4.33 billion, driven by strong enterprise demand for AI-powered data analytics services. The cloud analytics company's shares jumped 11% in extended trading as organizations increasingly prioritize artificial intelligence spending and modernize their data infrastructure. Key financial results: Snowflake's second-quarter performance met expectations while showing strong growth momentum. Product revenue reached $1.09 billion for the quarter ended July 31, aligning with analyst estimates compiled by LSEG, a financial data provider. Remaining performance obligations—a key metric for booked revenue—hit $6.9 billion, representing 33% growth year-over-year. The revised annual forecast...
read Aug 22, 2025SoundHound AI trades cheaper than Palantir despite tripling revenue growth
SoundHound AI and Palantir Technologies present compelling but different investment opportunities in the AI sector, with SoundHound trading at a significantly cheaper valuation despite faster growth rates. The growth trajectories: Both companies are capitalizing on AI adoption but in different market segments and scales.• SoundHound AI more than tripled its revenue to $43 million in Q2 2025, targeting the conversational AI market projected to reach $61 billion by 2032.• Palantir's revenue grew 48% to just over $1 billion in Q2, driven by its Artificial Intelligence Platform (AIP) adoption across commercial and government sectors.• SoundHound raised its 2025 revenue guidance to...
read Aug 22, 2025Um, about that dismissal: Commonwealth Bank rehires 45 workers after AI voice bots fail
Australia's Commonwealth Bank was forced to rehire 45 customer service workers after replacing them with AI voice bots that failed to handle the workload effectively. The embarrassing reversal highlights the risks of premature AI implementation and adds to growing evidence that many businesses are regretting their decisions to replace human workers with artificial intelligence. What happened: Commonwealth Bank, one of Australia's largest banks, initially announced the job cuts as part of an effort to automate customer service and reduce call volumes, leaving only a small team to handle complex inquiries. The bank's AI voice bot was supposed to handle routine...
read Aug 21, 2025Islamic finance’s $4T sector embraces prosocial AI
The convergence of Islamic finance principles and prosocial AI is creating a values-driven approach to financial technology that prioritizes ethical outcomes alongside efficiency. This alliance between a $4 trillion global Islamic finance sector and AI systems designed to benefit people and planet demonstrates how traditional moral frameworks can guide technological innovation toward more sustainable and socially responsible outcomes. What you should know: Both Islamic finance and prosocial AI share fundamental commitments to ethical principles, social justice, and human wellbeing that extend beyond profit maximization. Islamic finance prohibits riba (usury), gharar (excessive uncertainty), and mysir (gambling), while prosocial AI advocates for...
read Aug 20, 2025OpenAI’s lean ledger AI runs finance operations with just 45 people instead of 300
The traditional Chief Financial Officer role is evolving rapidly as artificial intelligence transforms finance operations across the technology sector. Recent insights from finance executives at OpenAI, SnapLogic, and Gorgias reveal how leading companies are automating core financial processes—while highlighting critical implementation challenges that even AI-native organizations struggle to overcome. This transformation isn't simply about replacing spreadsheets with algorithms. Companies are fundamentally reimagining how finance teams operate, moving from manual reconciliation and reporting toward real-time automation and strategic analysis. The results are striking: OpenAI operates with 45 finance professionals instead of the 200-300 typically required for a company their size, while...
read Aug 20, 2025Job alert: Y Combinator-backed Coris hiring AI engineer for $125K-$160K fraud detection role
Coris, a Y Combinator-backed fintech startup, is hiring an AI Engineer to build machine learning systems for fraud detection and risk management in global commerce. The role combines advanced AI model optimization with backend infrastructure development, targeting candidates with 3+ years of experience in Python, PyTorch, and production ML systems for a salary range of $125K-$160K plus equity. What you should know: The position focuses on solving complex fraud detection challenges using AI-first approaches rather than traditional rule-based systems. Coris partners with major platforms like GoFundMe, Kajabi, and Clio to automate merchant onboarding and risk decisions. The company describes itself...
read Aug 20, 2025AI stocks tumble as tech selloff accelerates amid valuation concerns
AI and tech stocks declined this week as Wall Street's summer rally lost momentum, with the Nasdaq falling 0.67% on Wednesday after a 1.46% drop on Tuesday. The pullback reflects growing investor caution about AI valuations and comes ahead of Federal Reserve Chair Jerome Powell's closely watched speech at Jackson Hole on Friday, which could signal the central bank's rate-cutting plans. What you should know: Major AI and tech stocks are experiencing their first significant correction after months of gains driven by artificial intelligence enthusiasm. The Nasdaq was on track to snap back-to-back weeks of gains, while the S&P 500...
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