THE HOT STORY

AI 'boosts efficiency but not productivity'

The Netherlands Organisation for Applied Scientific Research (TNO) has found that while AI can enhance efficiency, it does not guarantee increased productivity. TNO investigated how four organisations deployed AI. “The results show that AI accelerates and simplifies work processes at the organisations, but that productivity gains are not a standard consequence,” said the researchers, who also highlighted that employers need to give more consideration to how AI affects employees' working conditions. “AI influences not only the quantity of work, but also the quality of work.” According to the researchers, employers often focus only on improving productivity through task automation, and do not consider the consequences for their workers' day-to-day.

NL Times

WORKFORCE

Toyota and JLR warn ‘Made in Europe’ plan threatens investment and jobs

Toyota and Jaguar Land Rover have warned that “Made in Europe” manufacturing targets threaten investment and jobs, making cars produced in Europe even more expensive than Chinese vehicles.

Financial Times

STRATEGY

Volkswagen to shrink workforce by 19,000 by year's end

Reuters reports that Volkswagen CEO Oliver Blume is set to tell investors at the upcoming AGM that the auto maker is pressing ahead with sweeping job cuts ‌and cost reductions in Germany as planned, reducing its workforce by 19,000 by the end ⁠of the year.

Reuters

Microsoft's Xbox plans major layoffs next month

Microsoft's Xbox division plans major layoffs next month and significant cuts to marketing and other budgets. The job cuts ‌would mark the first major restructuring under Asha Sharma, who took charge as CEO of the gaming unit in February. Sharma has previously identified what she said were the organisation's challenges, saying the business had plunged to a 3% "accountability margin" and that the company needs to "reset the business" which was "not in a healthy spot".

Bloomberg

REGULATION

BASF urges overhaul of EU carbon scheme

BASF has called for a significant reform of the European Union's Emissions Trade System (ETS), citing concerns that its stringent conditions could harm industries. Chief executive Markus Kamieth noted that the current framework is too rigid, potentially leading to job losses and reduced value creation. The EU plans to review the ETS later this year amid rising criticism from member states and businesses. Kamieth emphasised the need for flexibility in the system, especially as energy costs rise due to the Iran war, which may exacerbate supply chain issues.

France 24

RISK

Netherlands expands investment screening rules

The Netherlands is to expand its investment screening regime in a bid to better protect knowledge deemed critical to national security. The 2023 law already applies screenings to the semiconductor and quantum computing sectors, and will now be expanded to apply to artificial intelligence, advanced materials, nanotechnology, sensor and navigation technology, nuclear technology for medical use, and biotechnology. “The Netherlands is the target for cyber operations, espionage and sabotage. That is why, as a government, we must protect and strengthen our knowledge, innovations and businesses,” Economic Affairs Minister Heleen Herbert said. “Our goal remains an open economy but we remain vigilant about risks,” she added.

Bloomberg

EU countries weigh ‘tearing apart’ bloc’s diplomatic service

France and Germany are discussing proposals for a radical overhaul of the EU’s 15-year-old diplomatic service in an attempt to improve the bloc’s response to geopolitical crises, the FT reports.

Financial Times

TECHNOLOGY

JPMorgan Chase plans to deploy more powerful AI agents

JPMorgan Chase is set to deploy advanced AI agents later this year that can operate autonomously for extended periods, marking a significant step in corporate AI adoption. Derek Waldron, JPMorgan chief analytics officer, told CNBC: “We've entered now the era of long-running autonomous agents . . . [that] means that agents don't just run for two or three minutes to carry out a goal or some instructions of a human, they can run for an hour or two.” The bank has already seen a 20% increase in private banking gross sales due to AI tools, which have enhanced client interactions by analyzing market activity and client positions overnight. While some jobs may be displaced, Waldron emphasized that the focus is on creating a sustainable competitive advantage rather than merely cutting costs. He noted that the bank is shifting its approach to software development, considering in-house capabilities over traditional vendors, as the competitive landscape evolves.

CNBC

Amazon founder says AI will bring 'golden ages' not mass job losses

Dismissing fears of mass job losses linked to AI, Amazon founder Jeff Bezos believes the technology will create new roles and transform industries, delivering "multiple golden ages."

Financial Times

CYBERSECURITY

Chinese hackers 'pose biggest espionage threat to tech firms'

A report from cybersecurity firm CrowdStrike says China-linked hackers presented the biggest espionage threat to technology companies over the past year, observing that such hacking campaigns align with Beijing’s strategic priorities and a sustained interest in technology ‌development, intellectual property, and information with strategic and economic value. Meanwhile, the report said North Korean hacking campaigns have “posed a major threat” in the past year, and Russia and Iran-linked hacking groups also heavily target other countries’ technology sectors for intelligence ⁠collection and destructive malware attacks.

Reuters

INTERNATIONAL

Half of Americans fear AI could put someone in their household out of a job

A Reuters/Ipsos poll ‌reveals that more than half (53%) of Americans worry that the rise of AI could put them or someone in their household out of work. The survey of 4,531 U.S. adults nationwide found that the fear was spread fairly evenly across respondents by age, gender and education level. The poll found college graduates said they use AI more, with 50% saying they employ it regularly, compared to 34% of people without degrees and 40% of people overall.

Reuters

Extreme heat threatens productivity at Indian garment suppliers

Indian garment factories supplying retailers including Uniqlo, Tesco, and Marks & Spencer are experiencing productivity losses of up to 10% during peak summer months as extreme heat affects worker attendance, product quality and delivery reliability, according to a report by the NYU Stern Center for Business and Human Rights. The study of 10 factories found temperatures exceeding 45°C are causing operational disruptions including stitching errors, fabric damage, dust contamination and production stoppages, with suppliers increasingly relying on temporary measures to cope with worsening conditions. India’s apparel export sector is worth $39bn and employs around 45m people, 70% of whom are women. The report also highlighted limited oversight from global brands, with only 35% of customers requiring suppliers to monitor factory temperatures and half not asking whether extreme heat has disrupted production.

Bloomberg

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