News/Business
SoftBank-OpenAI venture faces hurdles amid tariff concerns
SoftBank's ambitious $100 billion AI infrastructure partnership with OpenAI has stalled just months after its high-profile announcement, caught in economic uncertainties surrounding Washington's trade policies. This slowdown of the Stargate project represents a significant setback for SoftBank founder Masayoshi Son's vision to deploy massive capital into American AI development, highlighting how geopolitical tensions and tariff concerns can derail even the most well-funded technology initiatives. The big picture: SoftBank and OpenAI's Stargate project, unveiled in January with promises of immediate $100 billion deployment and potential expansion to $500 billion, has failed to materialize beyond initial announcements. Despite the bold proclamations from...
read May 12, 2025Pedal to the metal: Penske’s AI accelerates fleet intelligence innovation
Penske Truck Leasing's Catalyst AI platform represents a significant advancement in fleet management technology, applying machine learning to transform massive vehicle datasets into actionable intelligence for commercial transportation companies. The platform's latest update introduces sophisticated comparison capabilities and metric customization that enable fleet operators to identify performance gaps and make more strategic operational decisions. With its ability to analyze over 100 billion data points annually across hundreds of real-time models, Catalyst AI addresses the growing recognition among business leaders that AI integration is crucial for organizational resilience in the transportation sector. The big picture: Penske Truck Leasing has released an enhanced...
read May 12, 2025Turkish manufacturing embraces AI to speed up digital shift
MESS, the Turkish Employers Association of Metal Industries, is transforming manufacturing in Türkiye through its comprehensive innovation center MEXT. Launched in 2020 with McKinsey's partnership, MEXT provides digital transformation, sustainability capabilities, and AI integration for Turkish manufacturers that represent 40% of the country's total manufacturing exports. This ambitious initiative is strategically positioning Türkiye's industrial base to remain competitive in an increasingly digitalized global manufacturing landscape. The big picture: MESS serves as a vital industrial association representing over 230,000 employees across Türkiye's key manufacturing sectors, including automotive, machinery, durable goods, iron and steel, and cabling. The organization has a significant economic...
read May 12, 2025AI in customer service is quickly becoming mandatory
Customer service is rapidly transforming with AI-powered chatbots becoming the default for handling product inquiries, complaints, and refunds. With 85% of customer service leaders actively exploring customer-facing AI solutions, businesses that haven't implemented these technologies will soon find themselves playing catch-up. This shift represents a fundamental change in how companies manage customer interactions that directly impact satisfaction, brand perception, and ultimately sales revenue. The big picture: AI chatbots are transforming customer service interactions across industries, with widespread adoption already underway. According to recent survey data, an overwhelming 85% of customer service leaders are currently exploring AI solutions for customer-facing applications....
read May 12, 2025Spreadsheets are being stripped from business processes by AI-powered tools
Artificial intelligence is rapidly transforming business operations, threatening to displace spreadsheets as the fundamental tool for reporting and analysis. New research from Salesforce shows overwhelming momentum toward AI adoption in service organizations, with 83% of decision-makers planning to increase AI investments next year. This shift represents a significant inflection point for business intelligence tools, suggesting that AI's ability to automate, analyze, and deliver insights will soon make traditional spreadsheet-based workflows obsolete. The big picture: AI adoption is accelerating dramatically across service organizations, with spreadsheets predicted to be replaced as the dominant business reporting method by 2027 or sooner. Research shows...
read May 12, 2025Klarna shows why empathy still matters in automated customer service
Klarna's dramatic shift away from AI-only customer service signals a growing recognition in the tech industry that human connection remains essential, even in the age of artificial intelligence. After initially claiming its AI chatbot could replace 700 human representatives and laying off workers in 2024, the buy now, pay later company is now actively recruiting human agents to ensure customers always have access to empathetic service. This pivot represents a significant course correction in how businesses balance automation with human touch in customer experiences. The big picture: Klarna is pivoting from its AI-only customer service strategy to a hybrid approach...
read May 12, 2025The next generation of companies will look like Tomorrow.io
Tomorrow.io exemplifies a new breed of AI-native companies, demonstrating how artificial intelligence can fundamentally transform business operations with significantly reduced human staffing. Unlike traditional companies that retrofit AI into existing structures, Tomorrow.io has integrated AI across all operations from its inception, enabling just 150 employees to manage 10 departments spanning weather forecasting, satellite operations, and government services. This approach offers a glimpse into how future enterprises might function with AI handling core business functions while humans focus on strategic direction and innovation. The big picture: Tomorrow.io represents an early implementation of the AI-driven company concept, using artificial intelligence across all...
read May 12, 2025Pinterest leverages AI tools to outpace revenue expectations
Pinterest's AI-powered advertising tools are driving stronger-than-expected revenue growth, highlighting how visual discovery platforms are capitalizing on artificial intelligence to attract advertisers despite economic uncertainties. The company's focus on direct response ads and its growing Gen Z user base are proving particularly valuable as it navigates a complex advertising landscape affected by both international trade tensions and changing import regulations. The big picture: Pinterest forecast second-quarter revenue between $960 million and $980 million, exceeding Wall Street estimates of $966.3 million and sending shares soaring 16% in after-hours trading. The company's first-quarter revenue reached $855 million, beating analyst expectations of $846.6...
read May 12, 2025IBM survey reveals the gap between AI investment and business results
IBM's survey of 2,000 CEOs reveals a significant reality gap in AI investment outcomes, with just 25% of initiatives delivering expected returns. Despite this shortfall, enterprises are doubling down on AI investments over the next two years, particularly in AI agents that can automate entire tasks across multiple systems. This dichotomy between underwhelming results and accelerating investment highlights both the fear of missing out driving corporate AI strategies and the complex implementation challenges enterprises face. The big picture: Only a quarter of AI initiatives have delivered the expected return on investment according to IBM's survey, revealing a stark contrast between...
read May 11, 2025Microsoft eyes OpenAI investment for future IPO, FT reports
OpenAI and Microsoft are navigating a critical restructuring of their partnership that has far-reaching implications for both companies' AI ambitions. The renegotiation centers around enabling OpenAI's potential IPO while securing Microsoft's long-term access to leading AI technologies beyond their current agreement. This high-stakes deal revision reflects the evolving dynamics in AI as OpenAI seeks greater independence while Microsoft aims to protect its massive investment and technological advantage in the competitive AI landscape. The big picture: OpenAI and Microsoft are reworking their multibillion-dollar partnership terms to accommodate OpenAI's future IPO plans while ensuring Microsoft maintains access to cutting-edge AI models. Key...
read May 9, 2025American Express AI chief reveals strategy for lifestyle brand innovation
American Express is strategically modernizing its technology operations around AI and customer-focused innovation to differentiate itself in the financial services industry. The company's CIO outlines a progressive approach to leveraging generative AI while maintaining rigorous governance frameworks, revealing how American Express balances technological advancement with its core brand identity as both a payments company and lifestyle brand. The big picture: American Express CIO Radhakrishnan emphasizes technology's central role in delivering on the company's brand promise while working to establish the financial services provider as a technology differentiator. His comprehensive technology operation supports American Express as an integrated payments company that...
read May 9, 2025Will AI era leadership roles go the way of “Chief eCommerce Officer”?
The traditional C-suite is evolving as AI and data management become core business functions rather than specialized domains. Chief AI Officers (CAIOs) and Chief Data Officers (CDOs) may follow the path of once-prominent Chief eCommerce Officers, who disappeared once online sales became integrated throughout organizations rather than existing as separate functions. This shift suggests a future where AI literacy becomes a fundamental skill for all executives rather than the domain of dedicated leadership positions. The big picture: The specialized C-suite roles created during technological transitions often disappear as those technologies become mainstream and integrated throughout organizations. More than 29% of...
read May 9, 2025ChatGPT explores new subscription models for AI users as compute cost rises
OpenAI is exploring new subscription options beyond its current monthly plans to increase revenue streams for its expensive AI operations. The company appears to be developing weekly, annual, and even lifetime subscription tiers for ChatGPT, potentially offering users more flexibility in how they access premium AI features. The big picture: OpenAI is quietly testing multiple new subscription options for ChatGPT as the company seeks to address the substantial costs associated with running advanced AI models. References to weekly, annual, and lifetime subscription plans were discovered in the latest ChatGPT app builds by tipster @M1Astra and confirmed by Android Authority. These...
read May 9, 2025South African CIOs transform AI hype into measurable business results
South African CIOs are adopting a more pragmatic approach to AI investments, focusing on targeted high-impact deployments rather than broad implementation. Financial services group Sanlam and manufacturers like Lactalis Southern Africa exemplify this strategic shift, allocating AI budgets toward solutions that deliver measurable business outcomes. This evolution marks a departure from earlier experimentation phases as organizations now demand tangible returns on their AI investments while leveraging the technology to enhance customer experiences and operational efficiency. The big picture: Enterprise AI investment is accelerating, with Foundry's AI Priorities Study 2025 showing nearly half of organizations now allocating dedicated AI budgets, up...
read May 9, 2025How AI lets startups stay lean and win big
AI-native startups are rethinking traditional corporate scaling by leveraging artificial intelligence to maintain smaller, more efficient teams while expanding their market reach. Unlike established giants such as Amazon that grew through massive hiring sprees and subsequently struggled with bureaucracy, today's AI-focused companies are demonstrating how powerful technologies can allow businesses to stay lean and agile even as they scale. This emerging approach challenges conventional wisdom about organizational growth and may represent a fundamental shift in how successful companies structure their operations. The big picture: AI tools could be reshaping what startup organizational charts look like, potentially allowing companies to scale...
read May 9, 2025Epicor rolls out industry-focused AI and carbon accounting tools
Epicor's annual user conference showcases a dual focus on AI-powered business solutions and sustainability tracking that transforms carbon emissions into a measurable cost center. These initiatives represent Epicor's push to deliver practical industry-specific AI solutions while also addressing growing environmental reporting requirements, particularly significant for international manufacturers who face increasingly stringent emissions regulations. This balanced approach aims to both improve operational efficiency and prepare businesses for a more sustainability-focused future. The big picture: Epicor unveiled AI advancements and sustainability tools at its Insights 2025 conference, including general availability of Epicor Prism enhancements and a new Carbon Cost Rollup solution for...
read May 9, 2025“Digital labor” is reshaping Salesforce’s growth strategy
Salesforce CEO Marc Benioff sees a transformative shift unfolding where AI agents are becoming an essential workforce alongside humans. This vision isn't theoretical—it's happening now, with companies already deploying digital labor that autonomously handles customer interactions, drafts business strategies, and collaborates with leadership. This represents a fundamental reimagining of how businesses operate, potentially expanding Salesforce's addressable market from hundreds of billions into the trillion-dollar range. The big picture: Salesforce is pivoting toward what Benioff calls "digital labor," expanding from traditional enterprise software into a market he estimates at $3-12 trillion. Despite already being the world's second-largest enterprise software company with...
read May 9, 2025How Paradies Lagardère uses AI to support human-centered service
Paradies Lagardère is leveraging artificial intelligence to enhance operations across its 700+ stores, restaurants, and bars in 90 North American airports. The travel retailer focuses on what it calls "useful technology" rather than novelty, employing AI solutions that work behind the scenes to improve customer experiences while empowering employees to provide better service. This approach demonstrates how established retail businesses can integrate AI strategically without compromising their customer-first philosophy or replacing human workers. The big picture: Paradies Lagardère is implementing AI-driven solutions that enhance operations without disrupting the customer experience or replacing employees. CEO Gregg Paradies emphasizes the company's commitment...
read May 9, 2025How Andy Jassy is future-proofing Amazon’s innovation engine
Amazon CEO Andy Jassy's leadership approach blends startup principles with enterprise-scale management strategies, striking a balance that could shape the future of Amazon and corporate America. In a wide-ranging interview, Jassy reveals how he's transforming Amazon's culture by flattening hierarchies and requiring full-time office presence, while simultaneously pursuing ambitious AI investments across all technology layers. His emphasis on customer-focused problem-solving, organizational nimbleness, and full-stack AI development offers a roadmap for how large organizations might maintain innovation velocity in rapidly evolving markets. The big picture: Jassy is steering Amazon through significant organizational and technological transformation while attempting to preserve the company's...
read May 9, 2025OpenAI risks falling behind in the AI race
OpenAI's position as the frontrunner in artificial intelligence appears increasingly precarious as competitors close the gap and structural challenges mount. Once the undisputed leader following ChatGPT's breakout success, the company now faces a diminishing competitive advantage in a rapidly evolving landscape. This shift raises fundamental questions about whether OpenAI can maintain its prominence or will become just another player in an increasingly crowded field. The big picture: OpenAI's early lead in the AI race has significantly eroded, with competitors catching up and the company potentially losing its distinctive edge in the market. While ChatGPT initially left competitors scrambling to respond,...
read May 9, 2025How custom AI is shaping the future of work
Custom AI helps organizations blend their proprietary data with large language models, creating specialized AI systems that provide more accurate responses in specific domains. Microsoft's corporate VP for AI platforms, Eric Boyd, suggests that beyond simple question-answering capabilities, the next frontier of AI development involves creating autonomous applications that can independently perform complex work tasks. Understanding how to effectively customize foundation models with proprietary information is becoming increasingly important as organizations seek to leverage AI for specialized use cases. The big picture: Custom AI allows companies to enhance general-purpose AI models with their own specialized data, resulting in more precise...
read May 8, 2025Contractor Appointments scales to $134M using Zapier and AI
Contractor Appointments demonstrates how AI-powered automation can dramatically transform small business operations with tangible financial results. The lead generation company's integration of Zapier with AI tools has enabled them to generate $134 million in client revenue, showcasing how strategic automation can create exponential growth for service businesses without requiring massive staff expansion or technical expertise. The big picture: Contractor Appointments leveraged Zapier's automation platform combined with AI tools to streamline their lead generation processes for contractors. By connecting various business applications and implementing intelligent workflows, they achieved significant revenue generation for their clients. This case study highlights how small businesses...
read May 8, 2025San Antonio Spurs adopt ChatGPT Enterprise in slam dunk business move
These boots were made for talking in natural language. The San Antonio Spurs are pioneering a values-driven approach to enterprise AI adoption that has transformed their organization both on and off the court. By implementing ChatGPT Enterprise within their operations, the NBA franchise has created a model that balances technology innovation with their cultural foundations of humility, teamwork, and purpose, yielding measurable results while helping them compete effectively as a smaller market team. The big picture: The Spurs have achieved remarkable AI adoption metrics across their organization in under six months, with staff AI fluency increasing from 14% to 85%....
read May 8, 2025ServiceNow launches AI-powered workflow automation ecosystem at Knowledge 2025
ServiceNow is significantly expanding its AI capabilities with a new partner ecosystem and autonomous agents designed to revolutionize enterprise workflow automation. At its Knowledge 2025 event, the company unveiled the Workflow Data Network, a comprehensive data integration system that connects AI tools to enterprise data across various sources and partners, alongside autonomous agents that can handle complex IT tasks independently and a new Core Business Suite that streamlines operations across departments. The big picture: ServiceNow's Workflow Data Network creates a unified ecosystem for AI-powered workflow automation by connecting enterprise data across more than 100 integrations and multiple technology partners. The...
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