This Week, AI Showed Up in Tech Earnings and the Job Market

Recent big tech earnings reports presented a varied perspective on the impact of artificial intelligence (AI) this week, while workers across different industries experienced its effects.

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AI's influence is extending into numerous sectors such as digital entertainment, medicine, and healthcare. However, despite its significance, the latest earnings reports from major tech companies indicated that AI is not yet the primary driver of revenue gains and stock market reactions. Instead, investors primarily focused on the overall performance of established core businesses. Nevertheless, this earnings season, tech companies in the US have shown an increasing interest in discussing AI, shifting the conversation away from recession-related concerns.

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In the financial sector, US regulators approved a plan aimed at identifying and addressing conflicts of interest arising from the adoption of AI by financial firms.

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In response to the commitment made at the White House to follow voluntary AI guidelines, industry leaders, including Alphabet Inc.'s Google and OpenAI Inc., formed an industry body to mitigate risks associated with AI models.

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The US Senate introduced a measure as part of the annual defense policy bill, subjecting certain US investments in China to new requirements, including those related to semiconductors, AI, and quantum computing. Additionally, President Joe Biden is planning to sign an executive order by mid-August that will restrict critical US tech investments in China.

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Amidst the summer season, the environmental impact of the AI boom is becoming harder to ignore. The energy-intensive AI data centers, requiring massive amounts of water, are facing opposition due to extreme heat and drought conditions.

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On a positive note, AI does hold potential solutions to climate challenges. One example is Montreal-based AI startup RailVision Analytics, which developed software to help locomotive engineers make small adjustments in their driving to reduce rail's carbon footprint.

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Recent research indicated that AI continues to reshape the job landscape. A McKinsey & Co. report revealed that the AI wave is likely to disproportionately impact female workers compared to their male counterparts.

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Surprisingly, a survey conducted by the Pew Research Center showed that workers who are most exposed to AI, meaning those with a higher likelihood of having their work activities replaced or aided by technology, do not generally perceive their jobs to be at risk.

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Furthermore, a feature story in Bloomberg Businessweek shed light on Hollywood's growing concerns about AI's encroachment on jobs in the entertainment industry. While financial considerations remain a priority in labor negotiations, the rise of AI has turned the dispute into an existential crisis.

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Looking ahead, more tech companies, including Apple Inc. and Amazon.com Inc., will release their earnings next week. Anticipate increased discussions about AI in relation to these companies' performances.

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