Canada

Canada's Digital Services Tax To Stay In Place Despite G7 Deal (financialpost.com) 51

An anonymous reader quotes a report from Bloomberg: Canada is proceeding with its digital services tax on technology companies such as Meta despite a Group of Seven agreement that resulted in removing the Section 899 "revenge tax" proposal from U.S. President Donald Trump's tax bill. The first payment for Canada's digital tax is still due Monday, the country's Finance Department confirmed, and covers revenue retroactively to 2022. The tax is three percent of the digital services revenue a firm makes from Canadian users above $20 million in a calendar year.

Keeping the digital tax will not affect the G7 agreement, which focuses on global minimum taxes, the Finance Department said. The Section 899 provision would have targeted companies and investors from countries that the U.S. determines are unfairly taxing American companies. [...] Finance Minister Francois-Philippe Champagne suggested to reporters last week that the digital tax may be negotiated as part of broader, ongoing U.S.-Canada trade discussions. "Obviously all of that is something that we're considering as part of broader discussions that you may have," he said.

Business groups in the country have opposed the tax since it was announced, arguing it would increase the cost of digital services and invite retaliation from the U.S. It also raised the ire of U.S. businesses and lawmakers. A group of 21 members of U.S. Congress wrote to Trump earlier this month asking him to push for the tax's removal, estimating the June 30 payment will cost U.S. companies $2 billion. Before scrapping its digital services tax, Canada wants to see an OECD deal on policies that expand a country's authority to tax profits earned within that country even if a company doesn't have a physical location there -- which is different from a global minimum tax.
Earlier today, President Trump said the U.S. is immediately ending trade talks with Canada in response to the tax, calling it a "direct and blatant attack on our country."

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump wrote in a post on Truth Social. "We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period."
United States

Zuckerberg's Advocacy Group Warns US Families They Can't Afford Immigration Policy Changes 185

theodp writes: FWD.us, the immigration and criminal justice-focused nonprofit of Meta CEO Mark Zuckerberg -- the world's third richest person, according to Forbes with an estimated $250B net worth -- has released a new research report warning that announced immigration policies will hurt American families, who can't afford it with their meager savings.

The report begins: "Inflation remains a top concern for the majority of Americans. But new immigration policies announced by President Trump, and already underway, such as revoking immigrant work permits, deporting millions of people, and limiting legal immigration, would directly undermine the goal to level out, or even lower, the costs of everyday and essential goods and services. In fact, all Americans, particularly working-class families, are about to unnecessarily see prices for goods and services like food and housing increase substantially again, above and beyond other economic policies like global tariffs that could also raise prices. Announced immigration policies will result in American families paying an additional $2,150 for goods and services each year by the end of 2028, or the equivalent of the average American family's grocery bill for 3 months or their combined electricity and gas bills for the entire year. Such an annual increase would represent a tax that would erase many American families' annual savings, and amount to one of their bi-weekly paychecks each year. Unlike past periods of inflation, Americans have not been saving at the same rate as earlier years, and can't as easily absorb these price increases, squeezing American budgets even further."

In 2021, Zuckerberg's FWD.us teamed with the nation's tech giants to file a brief with the Supreme Court case to help crush WashTech (a tiny programmers' union), who challenged the lawfulness of hiring international students under the Optional Practical Training (OPT) program. "Striking down OPT and STEM OPT," FWD.us and its tech giant partners argued in their filing, [PDF] "would create a sudden labor shortage in the United States for many companies' most important technical jobs" and "hurt U.S. workers." The brief also dismissed WashTech's contention that the programs coupled with a talent surplus would shut U.S. workers out of the labor market, citing Microsoft's President Brad Smith's claim of an acute talent shortage and a 2.4% unemployment rate for computer occupations (that was then, this is now).
Printer

Brother Printer Bug In 689 Models Exposes Millions To Hacking (securityweek.com) 54

An anonymous reader quotes a report from SecurityWeek: Hundreds of printer models from Brother and other vendors are impacted by potentially serious vulnerabilities discovered by researchers at Rapid7. The cybersecurity firm revealed on Wednesday that its researchers identified eight vulnerabilities affecting multifunction printers made by Brother. The security holes have been found to impact 689 printer, scanner and label maker models from Brother, and some or all of the flaws also affect 46 Fujifilm Business Innovation, five Ricoh, six Konica Minolta, and two Toshiba printers. Overall, millions of enterprise and home printers are believed to be exposed to hacker attacks due to these vulnerabilities.

The most serious of the flaws, tracked as CVE-2024-51978 and with a severity rating of 'critical', can allow a remote and unauthenticated attacker to bypass authentication by obtaining the device's default administrator password. CVE-2024-51978 can be chained with an information disclosure vulnerability tracked as CVE-2024-51977, which can be exploited to obtain a device's serial number. This serial number is needed to generate the default admin password. "This is due to the discovery of the default password generation procedure used by Brother devices," Rapid7 explained. "This procedure transforms a serial number into a default password. Affected devices have their default password set, based on each device's unique serial number, during the manufacturing process."

Having the admin password enables an attacker to reconfigure the device or abuse functionality intended for authenticated users. The remaining vulnerabilities, which have severity ratings of 'medium' and 'high', can be exploited for DoS attacks, forcing the printer to open a TCP connection, obtain the password of a configured external service, trigger a stack overflow, and perform arbitrary HTTP requests. Six of the eight vulnerabilities found by Rapid7 can be exploited without authentication.
Brother has patched most of the flaws, but CVE-2024-51978 requires a new manufacturing process to fully resolve, which will apply only to future devices.
Power

Britain Shuns $34 Billion Morocco-UK Subsea Power Project (reuters.com) 86

The UK government has rejected the 25 billion ($34.39 billion) pound Morocco-UK Power Project, citing a preference for domestic renewable initiatives that offer greater economic and strategic benefits. The project aimed to supply solar and wind energy from the Sahara to power up to seven million UK homes. Reuters reports: "The government has concluded that it is not in the UK national interest at this time to continue further consideration of support for the Morocco-UK Power Project," energy department minister Michael Shanks said in a written statement to parliament. He also said the project did not clearly align strategically with the government's mission to build homegrown power in the UK.

Xlinks' Morocco-UK power project would have tapped Moroccan renewable energy via what would have been the world's longest subsea power cable. The plan involved building 3,800 kilometers (2,361 miles) of high-voltage direct current subsea cables from Morocco to southwest England. The company had been seeking a guaranteed minimum price for the electricity supplied, known as contract for difference, from Britain's government.

Businesses

Uber In Talks With Founder Travis Kalanick To Fund Self-Driving Car Deal (nytimes.com) 1

Facing mounting competition from autonomous taxi services like Waymo, Uber is in early talks to help fund Travis Kalanick's potential acquisition of Pony.ai's U.S. subsidiary (source paywalled; alternative source). If completed, the deal would reunite Kalanick with Uber (now under CEO Dara Khosrowshahi) and position Pony.ai to operate independently of its Chinese parent amid rising U.S. regulatory pressures. The New York Times reports: The company, Pony.ai, was founded in Silicon Valley in 2016 but has its main presence in China, and has permits to operate robot taxis and trucks in the United States and China. The talks are preliminary, said the people, who were not authorized to speak about the confidential conversations. Mr. Kalanick will run Pony if the deal is completed, they said. It is unclear what role, if any, Uber would take in Pony as an investor. Financial details of the potential transaction could not be determined. Pony went public last year in the United States, raising $260 million in a share sale. Its market capitalization stands around $4.5 billion.

If the deal goes through, Mr. Kalanick, 48, will remain in his day job running CloudKitchens, a virtual restaurant start-up that he founded after leaving Uber in 2017. He would also work more closely with Dara Khosrowshahi, who took over as Uber's chief executive after Mr. Kalanick's ouster. The discussions are the starkest sign yet that Uber is under pressure from Waymo, the driverless car unit spun out of Google, and other autonomous car services. When Mr. Kalanick was Uber's chief executive, the company tried developing autonomous vehicle technology. It then bought Otto, a self-driving trucking start-up run by Anthony Levandowski, a former Google engineer. Google later sued Mr. Levandowski for theft of trade secrets and sued Uber to bar it from using its self-driving technology.

Under Mr. Khosrowshahi, Uber has taken a different tack to self-driving cars. The company has struck roughly 18 partnerships with autonomous vehicle companies like Wayve, May Mobility and WeRide to bring pilot programs for driverless car services into Europe, the Middle East and Asia. The goal, Mr. Khosrowshahi has said in podcast interviews, has been to put "as many cars on Uber's network as possible." He has maintained that while autonomous vehicles are growing steadily, ride-hailing networks will have both human and robot drivers for years.

Businesses

VMware Perpetual License Holder Receives Audit Letter From Broadcom (arstechnica.com) 82

An anonymous reader quotes a report from Ars Technica: After sending cease-and-desist letters to VMware users whose support contracts had expired and who subsequently declined to subscribe to one of Broadcom's VMware bundles, Broadcom has started the process of conducting audits on former VMware customers. [...] Ars Technica reviewed a letter that a software provider and VMware user in the Netherlands received that is dated June 20 and informs the firm that it "has been selected for a formal audit of its use of VMware software and support services" [PDF]. The security professional who provided Ars with the letter asked to keep their name and their employers' name anonymous out of privacy concerns.

The anonymous employee told Ars that their company had been a VMware customer for "about" a decade before deciding not to sign up for a new contract with Broadcom's VMware a year ago. The company had been using VMware Cloud Foundation and vSphere. "Our CEO decided to not extend the support contract because of the costs," the employee said. "This already impacts us security-wise because we can no longer get updates (unless the CVSS score is critical)." The letter notes that an auditing firm, Connor Consulting, which is headquartered in San Francisco and has offices around the globe, will perform a review of the company's "VMware deployment and entitlements, which may include fieldwork or remote testing and meetings with members of your accounting, licensing, and management information systems functions." The letter informs its recipient that someone from Connor will reach out and that the VMware user should respond within three business days.

The letter, signed by Aiden Fitzgerald, director of global sales operations at Broadcom, claims that Broadcom will use its time "as efficiently and productively as possible to minimize disruption." Still, the security worker that Ars spoke with is concerned about the implications of the audit and said they "expect a big financial impact" for their employer. They added: "Because we are focusing on saving costs and are on a pretty tight financial budget, this will likely have impact on the salary negotiations or even layoffs of employees. Currently, we have some very stressed IT managers [and] legal department [employees] ..." The employee noted that they are unsure if their employer exceeded its license limits. If the firm did, it could face "big" financial repercussions, the worker noted.

AI

Who Needs Accenture in the Age of AI? (economist.com) 30

Accenture is facing mounting challenges as AI threatens to disrupt the consulting industry the company helped build. The Dublin-based firm, which made its fortune advising clients on adapting to new technologies from the internet to cloud computing, now confronts the same predicament as generative AI reshapes business operations.

The company's new generative AI contracts slowed to $100 million in the most recent quarter, down from $200 million per quarter last year. Technology partners including Microsoft and SAP are increasingly integrating AI directly into their offerings, allowing systems to work immediately without extensive consulting support. Newcomers like Palantir are embedding their own engineers with customers, enabling clients to bypass traditional consultants.

Between 2015 and 2024, Accenture generated a 370% total return by helping companies navigate technological transitions. The firm reached a $250 billion valuation in February before losing $60 billion in market value. CEO Julie Sweet insists that the company is reorganizing around "reinvention services." A recent survey found 42% of companies abandoned most AI initiatives, up from 17% a year ago.
Businesses

CareerBuilder + Monster, Which Once Dominated Online Job Boards, File For Bankruptcy (reuters.com) 31

CareerBuilder + Monster, which once dominated the online recruitment industry, filed for Chapter 11 bankruptcy protection this week and said it plans to sell its businesses. From a report: Created through the September merger of CareerBuilder and Monster, the Chicago-based company said it agreed to sell its job board operations, its most recognizable business, to JobGet, which has an app for so-called gig workers.
Businesses

Bernie Sanders Says If AI Makes Us So Productive, We Should Get a 4-Day Work Week (techcrunch.com) 181

Senator Bernie Sanders called for a four-day work week during a recent interview with podcaster Joe Rogan, arguing that AI productivity gains should benefit workers rather than just technology companies and corporate executives. Sanders proposed reducing the standard work week to 32 hours when AI tools increase worker productivity, rather than eliminating jobs entirely.

"Technology is gonna work to improve us, not just the people who own the technology and the CEOs of large corporations," Sanders said. "You are a worker, your productivity is increasing because we give you AI, right? Instead of throwing you out on the street, I'm gonna reduce your work week to 32 hours."
Crime

How Foreign Scammers Use U.S. Banks to Fleece Americans (propublica.org) 32

U.S. banks have failed to prevent mass-scale money laundering in the face of approximately $44 billion per year in pig-butchering scams conducted by Asian crime syndicates, according to a ProPublica investigation.

Chinese-language Telegram channels openly advertise rental of U.S. bank accounts to scammers who use them to move victims' cash into cryptocurrency. Bank of America allowed hundreds of unverified customers to open accounts, prosecutors alleged, including 176 customers who claimed the same small home as their address.

Major financial institutions whose accounts pig-butchering scammers have exploited include Bank of America, Chase, Citibank, HSBC and Wells Fargo. The scams typically involve fake cryptocurrency trading platforms that convince victims to wire money to seemingly legitimate business accounts. Banks are reluctant to share account information with each other even after identifying suspicious activity, and "no real standards" exist for what banks must do to detect fraud or money laundering.
Australia

Australia Regulator and YouTube Spar Over Under-16s Social Media Ban 26

Australia's eSafety Commissioner has urged the government to deny YouTube an exemption from upcoming child safety regulations, citing research showing it exposes more children to harmful content than any other platform. YouTube pushed back, calling the commissioner's stance inconsistent with government data and parental feedback. "The quarrel adds an element of uncertainty to the December rollout of a law being watched by governments and tech leaders around the world as Australia seeks to become the first country to fine social media firms if they fail to block users aged under 16," reports Reuters. From the report: The centre-left Labor government of Anthony Albanese has previously said it would give YouTube a waiver, citing the platform's use for education and health. Other social media companies such as Meta's Facebook and Instagram, Snapchat, and TikTok have argued such an exemption would be unfair. eSafety Commissioner Julie Inman Grant said she wrote to the government last week to say there should be no exemptions when the law takes effect. She added that the regulator's research found 37% of children aged 10 to 15 reported seeing harmful content on YouTube -- the most of any social media site. [...]

YouTube, in a blog post, accused Inman Grant of giving inconsistent and contradictory advice, which discounted the government's own research which found 69% of parents considered the video platform suitable for people under 15. "The eSafety commissioner chose to ignore this data, the decision of the Australian Government and other clear evidence from teachers and parents that YouTube is suitable for younger users," wrote Rachel Lord, YouTube's public policy manager for Australia and New Zealand.

Inman Grant, asked about surveys supporting a YouTube exemption, said she was more concerned "about the safety of children and that's always going to surpass any concerns I have about politics or being liked or bringing the public onside". A spokesperson for Communications Minister Anika Wells said the minister was considering the online regulator's advice and her "top priority is making sure the draft rules fulfil the objective of the Act and protect children from the harms of social media."
Intel

Intel Will Shut Down Its Automotive Business, Lay Off Most of the Department's Employees 24

Intel is shutting down its small automotive division and laying off most of its staff in that group as part of broader cost -cutting efforts to refocus on core businesses like client computing and data centers. Oregon Live reports: "Intel plans to wind down the Intel architecture automotive business," the company told employees Tuesday morning in a message viewed by The Oregonian/OregonLive. The company said it will fulfill existing commitments to customers but will lay off "most" employees working in Intel's automotive group. "As we have said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers," Intel said in a written statement to The Oregonian/OregonLive. "As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers."

Automotive technology isn't one of Intel's major businesses and the company doesn't report the segment's revenue or employment. But online, the company boasts that 50 million vehicles use Intel processors. Intel says its chips can help enable electric vehicles, provide information to drivers and optimize vehicles' performance. Intel also owns a majority stake in the Israeli company Mobileye, which develops technology for self-driving cars. It doesn't appear the closure of Intel's automotive group will directly affect Mobileye's operations.
AI

Meta's Massive AI Data Center Is Stressing Out a Louisiana Community 49

An anonymous reader quotes a report from 404 Media: A massive data center for Meta's AI will likely lead to rate hikes for Louisiana customers, but Meta wants to keep the details under wraps. Holly Ridge is a rural community bisected by US Highway 80, gridded with farmland, with a big creek -- it is literally named Big Creek -- running through it. It is home to rice and grain mills and an elementary school and a few houses. Soon, it will also be home to Meta's massive, 4 million square foot AI data center hosting thousands of perpetually humming servers that require billions of watts of energy to power. And that energy-guzzling infrastructure will be partially paid for by Louisiana residents.

The plan is part of what Meta CEO Mark Zuckerberg said would be "a defining year for AI." On Threads, Zuckerberg boasted that his company was "building a 2GW+ datacenter that is so large it would cover a significant part of Manhattan," posting a map of Manhattan along with the data center overlaid. Zuckerberg went on to say that over the coming years, AI "will drive our core products and business, unlock historic innovation, and extend American technology leadership. Let's go build! " What Zuckerberg did not mention is that "Let's go build" refers not only to the massive data center but also three new Meta-subsidized, gas power plants and a transmission line to fuel it serviced by Entergy Louisiana, the region's energy monopoly.

Key details about Meta's investments with the data center remain vague, and Meta's contracts with Entergy are largely cloaked from public scrutiny. But what is known is the $10 billion data center has been positioned as an enormous economic boon for the area -- one that politicians bent over backward to facilitate -- and Meta said it will invest $200 million into "local roads and water infrastructure." A January report from NOLA.com said that the the state had rewritten zoning laws, promised to change a law so that it no longer had to put state property up for public bidding, and rewrote what was supposed to be a tax incentive for broadband internet meant to bridge the digital divide so that it was only an incentive for data centers, all with the goal of luring in Meta. But Entergy Louisiana's residential customers, who live in one of the poorest regions of the state, will see their utility bills increase to pay for Meta's energy infrastructure, according to Entergy's application. Entergy estimates that amount will be small and will only cover a transmission line, but advocates for energy affordability say the costs could balloon depending on whether Meta agrees to finish paying for its three gas plants 15 years from now. The short-term rate increases will be debated in a public hearing before state regulators that has not yet been scheduled.
The Alliance for Affordable Energy called it a "black hole of energy use," and said "to give perspective on how much electricity the Meta project will use: Meta's energy needs are roughly 2.3x the power needs of Orleans Parish ... it's like building the power impact of a large city overnight in the middle of nowhere."
Network

Huawei Chair Says the Future of Comms Is Fiber-To-The-Room 97

The Register's Simon Sharwood reports: Huawei's chairman Xu Zhijun -- aka Eric Xu -- has called out China's enormous lead in fiber-to-the-room (FTTR) installations. Speaking at last week's Mobile World Congress event in Shanghai, Xu shared his views on the telecommunications industry's future growth opportunities and said by the end of 2025 China will be home to 75 million FTTR installations -- but just 500,000 exist outside the Middle Kingdom. Xu said FTTR will benefit businesses by increasing their internet connection speeds, helping them address spotty Wi-Fi coverage, allowing them to deploy tech in more places, and therefore creating more opportunities to adopt productivity-boosting devices and services. FTTR will also help carriers to sell more expensive packages, he said. Xu also urged telecom carriers to target high-growth user groups like delivery riders and livestream influencers, citing their above-average data consumption and revenue potential. Delivery riders, who will make up 5% of the global workforce by 2030, use four times more voice minutes and double the data of average users, while influencers generate five times the data usage and four times the revenue.

He also pushed for greater collaboration between carriers and platforms to deliver more high-res video content, and called for improved efficiency in networking equipment and device power use. "Xu said Huawei is here to help carriers deliver any of the scenarios he mentioned," concludes Sharwood. "And of course it is, because the Chinese giant has a thriving business selling to telcos -- or at least to telcos beyond the liberal democracies that have largely decided Huawei's close ties with Beijing mean the company and its products represent an unacceptable threat to the operation of critical infrastructure."
XBox (Games)

Microsoft Planning 'Major' Xbox Layoffs Next Week (theverge.com) 36

An anonymous reader quotes a report from The Verge: Microsoft is planning to cut jobs in the company's Xbox gaming business, as early as next week. I first reported in Notepad earlier this month that Microsoft was planning Xbox layoffs "potentially by the end of the month," and now Bloomberg says a round of "major layoffs" is due next week.

I understand managers at Microsoft have been briefed about Xbox cuts and wider layoffs in other parts of Microsoft's businesses. The upcoming cuts are also expected to hit Microsoft's sales organization, just at the start of a new financial year. Microsoft is planning to restructure parts of its Xbox business as it looks ahead to its next generation of consoles. One source tells me Microsoft is restructuring Xbox distribution across central Europe, resulting in some Xbox operations ceasing in some regions.
The expected layoffs will be in addition to the 6,000 cuts Microsoft already made in May, and on top of the more than 300 job cuts earlier this month.
United States

Philips Hue is Raising Prices in the US (theverge.com) 38

Philips Hue will raise prices across its smart lighting and security products for US customers starting July 1st, with parent company Signify attributing the increases directly to tariffs.

The company initially notified customers that prices would "go up" through a promotional message before confirming the tariff-related reasoning in a statement. Signify has not provided specific pricing details or identified which products will be affected, though the company's statement suggests changes may impact the entire Hue lineup.

Some products already reflect higher US pricing, including the new $219.99 Hue Play Wall Washer light, which costs approximately 10% more than the European price when currencies are converted. The latest $32.99 Smart Button also exceeds the $24.99 launch price of its predecessor, while European pricing remained at 21.99 euro ($25.50) for both generations.
Windows

Microsoft Extends Free Windows 10 Security Updates Into 2026, With Strings Attached (windows.com) 70

Microsoft will offer free Windows 10 security updates through October 2026 to consumers who enable Windows Backup or spend 1,000 Microsoft Rewards points, the company said today. The move provides alternatives to the previously announced $30-per-PC Extended Security Update program for individuals wanting to continue using Windows 10 past its October 14, 2025 end-of-support date.

The company will notify Windows 10 users about the ESU program through the Settings app and notifications starting in July, with full rollout by mid-August. Both free options require a Microsoft Account, which the company has increasingly pushed in Windows 11. Business and organizational customers can still purchase up to three years of ESU updates but must pay for the service.

Windows 10 remains installed on 53% of Windows PCs worldwide, according to Statcounter data.
IT

OpenAI Quietly Designed a Rival To Google Workspace, Microsoft Office (theinformation.com) 11

OpenAI has designed features that would allow people to collaborate on documents and communicate via chat within ChatGPT, The Information reported Tuesday. The features would pit OpenAI directly against Microsoft, its biggest shareholder and business partner, and Google, whose search engine has already lost traffic to people using ChatGPT for web searches.

Whether OpenAI will actually release the collaboration features remains unclear, the report cautioned. The designs would target the core of Microsoft's dominant productivity suite and could strain the companies' already complicated relationship as OpenAI seeks Microsoft's approval for restructuring its for-profit unit. Product chief Kevin Weil first discussed and showed off designs for document collaboration nearly a year ago, but OpenAI lacked sufficient staff to develop the product due to other priorities.

OpenAI launched Canvas in October, a ChatGPT feature that makes drafting documents and code easier with AI assistance, as a possible first step toward full collaboration tools. More recently, OpenAI developed but has not launched software allowing multiple ChatGPT customers to communicate about shared work within the application.
Businesses

Amazon Bringing Same-Day Delivery To 'Millions' of Rural Customers (theverge.com) 56

Amazon today announced its intention to bring same-day and next-day delivery to "tens of millions" of people who live in live in smaller towns by the end of 2026. From a report: Speedier deliveries will be available to residents "in more than 4,000 smaller cities, towns, and rural communities," the company said in a press release Tuesday.

Items categorized as "everyday essentials," including groceries, beauty products, household goods, or pet food, will now be available to small town or rural customers for same-day or next-day delivery. If they are Prime subscribers (currently $14.99 a month or $139 annually), they get unlimited free same-day delivery when spending over $25 at checkout.

Businesses

Goldman Sachs Launches AI Assistant Firmwide, With 10,000 Employees Already Using It (reuters.com) 53

Goldman Sachs has officially rolled out a generative AI assistant across the company to enhance productivity, with around 10,000 employees already using it for tasks like summarizing documents and data analysis. Reuters reports: With the AI tool's official company-wide launch, Goldman joins a long list of big banks already leveraging the technology to shape their operations in a targeted manner and help employees in day-to-day tasks. [...] The GS AI assistant will help Goldman employees in "summarizing complex documents and drafting initial content to performing data analysis," according to the internal memo. "While the official line is that AI frees up employees for 'higher-value work,' the real-world consequence is a reduced need for human labor," notes Gizmodo in their reporting. A banker told Gizmodo that because their AI system now processes 85% of all client responses for margin calls, "the operations team avoided hiring 30 new people."

Gizmodo asks pointedly: "If one AI tool is replacing the need for 30 back-office staff in one corner of one bank, what happens when the entire industry scales that up?"

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