In a statement to the BBC, the company emphasized its commitment to evolving its cloud and AI sectors. They highlighted that as these businesses expand, they will consistently adjust their resource allocation and reorganize their development team. This strategic approach is aimed at ensuring that they have the optimal talent to provide top-notch cloud and AI solutions to clients globally.

Oracle lays off 21,000 employees as it adopts AI technology.

A dimly lit, cavernous office floor strewn with empty desks and overturned nameplates, cardboard “laid-off” boxes piled on chairs, flickering overhead lights casting long shadows. In the background, a giant red Oracle logo glows ominously on a concrete wall while sleek robotic arms in the foreground sort through employee files, symbolizing AI taking over. The scene is heavy and dark, with subtle dust motes in the air and a sense of human absence.

Tech giant Oracle cuts 21,000 jobs as it embraces AI - BBC

- The company plans to restructure its development group for better resource allocation.  
- Cloud and AI business growth drives the need for organizational adjustments.  
- Focus on delivering the best products to customers globally remains a priority.  

The company told the BBC: "As our cloud and AI businesses grow, we will continually balance our resources and restructure our development group to help ensure we have the right people delivering the best cloud and AI products to our customers around the world."

Tech giant Oracle cuts 21,000 jobs as it embraces AI

Consumers are beginning to embrace the potential of personal artificial intelligence, with many placing their confidence in Muse, Meta's latest AI assistant. The app has quickly climbed to the top of the Apple App Store rankings, surpassing the widely-used ChatGPT, reflecting a growing trend of individuals relying on AI to enhance their shopping experiences and save them both time and money, despite wider concerns about AI's implications.

Neil Saunders, the managing director and retail analyst at GlobalData Retail, highlighted the excitement surrounding Muse, which he believes signifies a shift towards more proactive shopping experiences. He anticipates that as consumers seek to simplify tedious tasks—like comparing prices across various platforms and locating products—they will increasingly turn to AI shopping assistants like Muse.

While Saunders hesitates to declare this as a definitive turning point, he acknowledges that it represents a significant phase in the evolving relationship between AI applications and consumers, as he shared with CBS News.

Research from IBM indicates that 41% of shoppers currently utilize AI assistants for product research, with 31% leveraging them to hunt for discounts. Since Muse's launch just two weeks ago, it has reportedly garnered over 2.5 million downloads, according to data shared by Sensor Tower. In comparison, OpenAI's ChatGPT app achieved 3.1 million downloads during the same timeframe, while Anthropopi’s Claude managed about 200,000 downloads.

Further emphasizing Muse's relevance, Amazon recently informed CBS News that it has prohibited the app from operating on its site due to concerns regarding security and user experience.

The landscape of online search is changing. For a long time, consumers used AI mainly as an advanced search engine. However, Meta is positioning Muse as a practical tool designed to assist users with various everyday tasks, aiming to enhance convenience in their lives.

John Mercer, head of global research at Coresight, noted that if Muse continues to gain traction, it may surpass Claude in popularity and become one of the leading AI tools among users. Unlike conventional chatbots, Muse's capabilities extend to executing tasks on users' behalf, such as booking travel, organizing email, and monitoring price changes. This not only means consumers can save time but also aids them in unearthing the best deals.

Mercer described this advancement as a "natural evolution from search" functionality. A recent survey by Coresight involving over 1,000 consumers found that 30% of participants expressed interest in using an AI tool to compare prices while holiday shopping, with the same percentage willing to use such tools to discover deals or promotional codes.

Saunders explained that agentic commerce aims to curate and display personalized selections for users, effectively minimizing the effort required to browse multiple websites for comparisons. 

While Muse is already causing a stir, Saunders cautions that a wider acceptance of AI shopping agents is likely to take some time. Reports of AI-related mishaps have raised concerns, making consumers hesitant to trust these agents with purchasing decisions.

"There's still a level of apprehension surrounding the idea of allowing AI agents to manage purchases on their behalf," he remarked.

Meta's Muse personal assistant gains popularity as AI-driven commerce begins to flourish.

Bright midday sun streams through a modern living room window onto a sleek tablet resting on a coffee table. On its screen, a friendly AI shopping assistant interface offers product suggestions. Nearby, neatly stacked delivery boxes hint at ongoing online orders. An adult’s hand reaches toward the tablet, as soft natural light highlights a large Meta logo embossed on the device. The scene conveys effortless AI-powered commerce taking off.

Meta's Muse personal agent is a hit, as AI commerce starts to take off - CBS News

- Meta's Muse AI agent leads the App Store, surpassing ChatGPT in popularity.  
- 41% of consumers use AI assistants for product research and deal searching.  
- Amazon has blocked Muse from its platform due to security and user experience concerns.  

Shoppers have seen the future, and many of them have decided it looks like Muse.

Meta's new personal artificial intelligence agent now sits atop Apple's App Store, ahead of No. 2 ChatGPT, as more consumers put their faith in AI to save them time and money — existential AI fears be damned.

Neil Saunders, managing director and retail analyst at GlobalData Retail, said the buzz around Muse underscores the "acceleration of agentic shopping." He expects more people to gravitate to AI shopping agents like Muse as they look to hand off cumbersome tasks, such as comparing deals across sites and tracking down products.

"I wouldn't say it's a tipping point, but it's certainly an important part of the journey for AI and consumers," Saunders told CBS News.

According to IBM, 41% of consumers use AI assistants to research products, and 31% use them to search for deals.

Since Meta unveiled Muse two weeks ago, the app has amassed more than 2.5 million downloads, according to Sensor Tower data shared with CBS News. By comparison, OpenAI's ChatGPT AI app had 3.1 million global downloads over the same time period, while Anthropopi's Claude tool had 200,000, the market research company found.

In another sign of Muse's growing relevance, Amazon confirmed to CBS News that it has blocked the AI app from shopping on its e-commerce platform, citing security and user experience concerns.

The evolution of search

Until recently, people have mostly used AI as a "glorified search engine," he added. By contrast, Meta is marketing Muse as a tool that will help consumers with everyday tasks and otherwise make their lives easier.

"If [Muse] maintains momentum, it could maybe leapfrog Claude among consumers and get into the top tier" of AI tools, said John Mercer, head of global research at Coresight.

Unlike traditional chatbots, Muse can take action on behalf of users, handling tasks like booking a flight, decluttering people's inboxes and tracking price drops. When it comes to shopping, the benefit for customers isn't just saving time; it's also about helping them find deals, Mercer said.

"It's a natural evolution from search," Mercer said.

In a recent Coresight survey of more than 1,000 consumers, 30% of respondents said they would use an AI tool to compare prices for holiday shopping. The same percentage said they would also use the tools to find deals or promo codes on holiday gifts.

"What agentic commerce does is basically summarizes, discovers, showcases what it thinks is interesting to each individual, and that does cut out some of the work so you don't have to go to multiple sites and cross-compare," Saunders said.

Although Muse is already making a splash, Saunders thinks broader consumer adoption of AI shopping agents will take time. Cases of agentic AI mishaps have already emerged, shaking people's trust in the tools.

"People are still a little bit nervous about allowing AI agents to do the purchasing on their behalf," he said.

Meta's Muse personal agent is a hit, as AI commerce starts to take off

As discussions intensify regarding the emerging realm of artificial intelligence and its implications, experts caution that China is cleverly eroding the United States' global dominance through strategic AI maneuvers, even as President Xi Jinping prepares for his visit to the U.S. this week. The paradigm shift involves a subtle, three-tiered strategy that encompasses extracting knowledge from advanced American AI systems, sabotaging U.S. developers with free open-source alternatives, and ultimately transforming these technologies into tools of cognitive warfare.

Analysts warn that China’s aggressive tactics involve circumventing immense investments made by U.S. research institutions. They exploit advanced American AI frameworks to replicate and enhance their capabilities, all while saturating the market with accessible alternatives. Leah Siskind, an AI research fellow at the Foundation for Defense of Democracies, remarked, “I believe framing this as a ‘race’ is misleading. It resembles a multi-front conflict – we face victories in some arenas but setbacks in others.”

While major American tech companies have invested heavily in building proprietary, high-cost systems, China has taken a markedly different approach by spreading free, open-source AI models worldwide. Siskind cautioned that the financial advantage of utilizing cost-effective Chinese solutions leads some Fortune 500 companies to inadvertently open themselves up to risks such as censorship from the Chinese Communist Party (CCP) and potential backdoor vulnerabilities. “How can one compete with free software when American technology is prohibitively expensive?" she questioned. "Ensuring that a Chinese open-source model is genuinely free of CCP influence is virtually impossible, and that uncertainty is intentional.”

Gordon Chang, a China specialist, highlighted that Beijing is employing these free models as part of a broader economic strategy reminiscent of its earlier maneuvers within the solar panel industry. He believes China aims to undercut American models on cost and availability to ultimately achieve global supremacy in AI.

To successfully flood the market with these free solutions, China first requires access to advanced technologies and a way to overcome the significant lead the U.S. holds in computing infrastructure. Currently, the U.S. boasts over 5,400 data centers compared to around 450 in China and has far superior semiconductor technology. To overcome these challenges, Siskind stated that Chinese research facilities are utilizing a technique known as “knowledge distillation.” This involves smaller models extracting logic and capabilities from larger, more advanced American models, allowing them to make significant strides with minimal investment. 

The implications of this technological rivalry are very real. Recently, the Department of Homeland Security issued a cybersecurity advisory, noting that Chinese firms are running "industrial-scale knowledge distillation campaigns" aimed at harvesting proprietary capabilities from leading American AI systems. 

Furthermore, experts warn of China’s active integration of AI into critical infrastructure and public influence initiatives. Instead of focusing solely on fantastical notions of "killer robots," Siskind emphasized that China's immediate goal is the physical application of AI—integrating it into factory automation, drones, and autonomous logistics systems.

Chang voiced a concerning prospect about AI-fueled propaganda, which poses a significant threat to American democratic processes. “They excel in cognitive warfare and can amplify these capabilities through artificial intelligence. We cannot allow our electoral outcomes to be influenced by China," he warned.

As Xi Jinping’s imminent U.S. visit unfolds, experts advocate for a concerted response from the White House to address these non-military yet highly pertinent threats with the same urgency reserved for conventional military posturing. Siskind urged that to maintain the U.S.’s technological edge, policymakers should close existing loopholes in chip exports, blacklist foreign labs known for deceptive practices, and foster domestic open-source development that aligns with democratic ideals.

Chang underscored the broader implications of this technological struggle, asserting that Xi Jinping's ambitions echo an imperial mindset that could reshape global governance under Chinese hegemony if left unchecked. 

Meanwhile, during a recent address at the United Nations General Assembly, President Donald Trump reaffirmed the U.S. commitment to outpacing China. He announced a shift in terminology, declaring that U.S. government documents would now refer to AI as "superintelligence," emphasizing that the nation remains at the forefront and intends to sustain that lead.

Experts caution that China's actual AI threat to America is already present, surpassing concerns over killer robots.

A moody, dimly lit war room bathed in warm shadow: on one wall a large Chinese flag hangs half-folded, its red fabric catching the last of a single overhead lamp. On a heavy wooden table below, glowing red circuit-board traces snake over a map of the United States, converging on a small, shadowed model of the Capitol building—an unseen AI threat silently closing in.

Beyond killer robots: China's real AI threat to America is already here, experts warn - Fox News

- Experts warn China is undermining U.S. AI dominance through free, open-source software strategies.  
- Beijing's "knowledge distillation" allows copying American AI capabilities, impacting global competition.  
- The U.S. must enhance chip export controls and support domestic open-source AI development.  

NEW You can now listen to Fox News articles!

While Americans brace for a futuristic AI war of killer robots and bioweapons, experts warn ahead of President Xi Jinping's U.S. visit this week that Beijing is already actively undermining America's global supremacy through AI without ever firing a shot.

Experts who spoke with Fox News Digital outlined a stealthy, three-part playbook, which includes extracting the logic of American models, undercutting U.S. developers with free open-source software and ultimately weaponizing those systems for things like cognitive warfare.

They laid out how China bypasses billions of dollars in U.S. research through labs that interrogate cutting-edge American AI and copy its capabilities, while simultaneously flooding the global market with free alternatives.

"I think a ‘race’ is the wrong metaphor for this," Leah Siskind, an AI research fellow at the Foundation for Defense of Democracies, told Fox News Digital. "I think it's kind of like a multi-front war. And in some places, we're winning, and some places we're losing."

XI PREPARES CHINA ‘FOR BATTLE’ AS EXPERT WARNS OF GRAVE DANGER FACING US AHEAD OF DC SUMMIT

While top American tech firms have poured billions into building ultra-expensive, proprietary systems, China has focused heavily on distributing free, open-source models across the globe. Siskind warned that because American tech is costly and the U.S. sector has largely neglected open-source investment, many Fortune 500 companies are making the financial choice to run their operations on Chinese models, unwittingly opening the door to potential CCP censorship, hidden backdoors and, ultimately, global dominance.

"How can you compete with something that's free when American tech is very, very expensive?" Siskind said. "How can we ensure that a Chinese open-source model would be truly clean, that it'd be truly free of CCP censorship? We can't be — we just wouldn't know. And that's by design. We wouldn't know what sort of trick backdoors might be implanted and how that could rear its head later on."

China expert Gordon Chang warned that Beijing is intentionally using these free models to repeat an economic tactic it previously deployed to corner a different industry.

"This is a tactic that China used with solar panels," Chang told Fox News Digital. "Beijing sees that one day it will drive out the American models on cost and availability, and they will then dominate global AI."

CHAD WOLF: CONGRESS HAS A CHANCE TO STOP CHINA FROM TURNING YOUR CAR INTO A CHINESE SPY



But to flood the market with free software, Beijing first needs the underlying technology and a way to bypass America's massive lead in computing power.

Chang noted that the U.S. possesses a commanding lead in physical infrastructure, boasting over 5,400 data centers compared to China's roughly 450, along with far superior microchips. To work around the staggering hardware and energy costs required to train artificial intelligence from scratch, Siskind warned that Chinese labs are closing the gap through a process known as "knowledge distillation," a method where a smaller model essentially interrogates a larger, smarter American model to copy its logic.

"They are able to leapfrog the process by kind of stealing this information," Siskind said, pointing to the Chinese model DeepSeek as a prime example. "This is how they were able to release models like DeepSeek in 2025, which was seismic news because they were able to show that they were really competing with cutting-edge American models and had invested a fraction of the resources."

US ADVERSARY TURNS UP THE HEAT ON AMERICA’S AI LEAD WITH AN UNDERESTIMATED EDGE

The threat is not theoretical. Just last week, the Department of Homeland Security issued a joint cybersecurity advisory warning that Chinese companies are conducting "industrial-scale knowledge distillation campaigns" to extract proprietary capabilities from U.S. frontier models.

Beyond economic undercutting and software theft, the experts also warned Beijing is simultaneously deploying artificial intelligence into physical supply chains and public influence campaigns.

Rather than sci-fi "killer robots," Siskind emphasized that China's immediate physical priority is "embodied AI," embedding artificial intelligence into real-world infrastructure like factory automation, commercial drones and autonomous supply chains.

Chang warned that AI-enhanced propaganda poses a direct threat to American decision-making and democratic sovereignty.

"They're very good at cognitive warfare, and they can enhance their capabilities with artificial intelligence," Chang said. "We do not want our elections determined in China. We do not want our critical national security decisions being made in Beijing. And that's not impossible."

CHINA EXPERT WARNS BEIJING WANTS AMERICANS — NOT THE CCP — TO SPREAD ITS MESSAGE

As President Xi Jinping arrives in the U.S. this week, the experts who spoke to Fox News Digital said the White House must treat these non-cinematic threats with the same urgency as traditional military posturing.

To protect America's remaining edge, Siskind said Washington must tighten chip export loopholes, blacklist foreign labs engaging in deceptive distillation and incentivize U.S. open-source development, emphasizing that "it is very important that the most advanced systems are developed under democracy and represent democratic values, as opposed to authoritarian values."

CHINA-LINKED HACKERS INFILTRATED US GOVERNMENT NETWORKS BEFORE FBI TAKEDOWN

For Chang, the stakes of that technological defense extend far beyond standard economic competition.

"Xi Jinping throughout this century has been pushing the Chinese imperial-era notion of Tianxia, or 'all under heaven' that China's rulers have a right to rule the world," Chang warned. "That sounds ludicrous to us, but a Chinese regime powered by AI might actually be able to accomplish that. We certainly do not want our decisions being made in the Chinese capital."

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Addressing the United Nations General Assembly on Tuesday, President Donald Trump reiterated Washington's goal of outpacing China, declaring that U.S. government documents will now refer to AI as "superintelligence."

"The United States totally rejects any attempt to construct a globalist scheme to control the artificial intelligence being spoken of," Trump told world leaders. "Whoever wins superintelligence wins. And we're leading now over China by a lot and everyone else. And we're going to keep it that way."

Beyond killer robots: China's real AI threat to America is already here, experts warn

Ulanqab, known for its expansive steppes and volcanic landscapes, is emerging as an unexpected hub for digital innovation. Once celebrated as China’s official "potato capital," the region is now witnessing a transformation as numerous data centers are being built across its farmland. This surge in digital infrastructure coincides with discussions between Donald Trump and his Chinese counterpart Xi Jinping, who are focusing on AI safety, among other critical topics.

China's AI: Data centers emerge from the expansive landscapes of Inner Mongolia

A warm sunrise bathes the rolling grasslands of Inner Mongolia as a sleek cluster of low-profile data centers emerges from the plains. Solar panels shimmer around the metal-clad buildings, and a single Chinese flag waves proudly on a tall pole in the foreground. The scene is lit by soft natural light, blending cutting-edge technology with the vast, open landscape.

China AI: Data centres rise from the rolling plains of Inner Mongolia - BBC

- Ulanqab, known as China's "potato capital," is transforming into a digital hub.  
- The region is developing numerous data centers amidst growing AI safety discussions.  
- Ongoing talks between Donald Trump and Xi Jinping highlight the importance of AI regulation.  

Ulanqab, with its steppes and volcanoes, is an unlikely digital frontier. For years, it has been China's official "potato capital". But now its fields have also become construction sites for a slew of data centres, as Donald Trump and his Chinese counterpart Xi Jinping meet to discuss AI safety among other things.

China AI: Data centres rise from the rolling plains of Inner Mongolia

Donald Trump has a strong affinity for branding, and during a recent speech, he introduced a novel term for Artificial Intelligence: Super Intelligence. 

He stated, "The term artificial gives it a fake connotation. It's not fake; it's truly remarkable. However, we need to proceed with caution." He then welcomed the audience to "the new world of super intelligence – SI."

In past discussions, Trump has maintained that supremacy in AI translates to winning overall, demonstrating his opposition to regulatory measures. This stance, however, places him at odds with many experts and policymakers in the field.

A pressing concern remains: can the sluggish pace of diplomatic efforts match the swift advancements in AI technology?

Trump renames Artificial Intelligence as Super Intelligence

A bright outdoor campaign rally under natural sunlight: on a raised stage a giant marquee sign originally reading “Artificial Intelligence” is being spray-painted over—workers in high-visibility vests atop cherry-pickers transform “Artificial” into bold red “Super,” while a lone silhouetted figure with Trump’s signature comb-over stands at a podium, arm extended toward the new slogan. Behind him an American flag waves in the breeze.

Watch: Moment Trump rebrands Artificial Intelligence to Super Intelligence - BBC

- Trump rebrands Artificial Intelligence as "Super Intelligence" to emphasize its significance.  
- He argues against regulation, claiming it could hinder AI's advancement and competitiveness.  
- Concerns arise over diplomacy's ability to match the fast pace of AI development.  

Donald Trump has a penchant for branding and in his speech he gave Artificial Intelligence a new name: Super Intelligence.

"The use of the word artificial makes it sound fake," he said. "It's not fake, it's actually amazing. But we have to be careful," he added. "Welcome to the new world of super intelligence - SI," he went on to say.

Trump has previously argued that whoever wins AI, wins, and he is firmly against regulation. But that puts him at odds with many here.

The question is whether the slow pace of diplomacy can keep up with AI’s rapid development.

Trump rebrands Artificial Intelligence to Super Intelligence

During a speech at the United Nations General Assembly on Tuesday, President Trump announced that all U.S. government documents will start referring to artificial intelligence as "super intelligence." 

He stated, "The United States completely rejects any efforts to establish a global framework aimed at controlling what is currently being referred to as artificial intelligence, which from now on will be called super intelligence." He emphasized the need for this terminology change, arguing that the term "artificial" undermines the genuine capabilities of the technology. "The use of the word artificial makes intelligence sound fake," Trump pointed out. "It is not fake; it’s extraordinary. However, we must approach it with caution. In fact, it’s the opposite of what the term suggests."

Going forward, Trump expressed his hope that not only U.S. documentation but also international usage of the term would transition to "super intelligence" for greater accuracy. "In other words, we are entering a new era of super intelligence — SI," he declared. "Let’s see how that resonates. It sounds far better, it truly is better, and it’s undoubtedly more precise."

Super intelligence is defined as a type of AI that surpasses human intelligence, representing both a goal for numerous advanced AI companies and a significant concern among those warning about its potential risks to humanity. 

Trump's comments come against a backdrop of rising anxiety about AI advancements, particularly after a former researcher from Anthropic raised alarms about the technology's potential to threaten human existence. This has spurred ongoing discussions in Washington regarding the need for regulation, with Trump advocating for fewer restrictions in order to ensure that the U.S. maintains a competitive edge over China in the evolving AI landscape.

AI is expected to be a prominent topic not only at the UN General Assembly this week but also during the upcoming state visit of Chinese President Xi Jinping to Washington for discussions with Trump.

Trump claims AI will be referred to as 'super intelligence' in all official US documents.

Donald Trump at a wooden White House press-room podium bathed in warm morning light, a single US flag standing beside him. He holds a bold red stamp reading “SUPER INTELLIGENCE” and slams it onto a stack of official papers titled “Artificial Intelligence,” with papers fluttering in mid-air around him.

Trump says AI will be renamed ‘super intelligence’ in all US documents - thehill.com

- President Trump announced a name change from artificial intelligence to "super intelligence" in documents.  
- He rejected global control schemes for AI, emphasizing the need for careful management.  
- The topic of AI will dominate discussions at the UN General Assembly and Trump's upcoming meeting.  

President Trump told the United Nations General Assembly on Tuesday that artificial intelligence will be renamed “super intelligence” in all U.S. documents.

“The United States also totally rejects any attempt to construct a globality scheme to control for the artificial intelligence being spoken of so much now, hereinafter called super intelligence. Changing the name,” Trump told the global body.

“The use of the word artificial makes intelligence sound fake,” he continued. “It is not fake. It’s actually amazing. But we have to be careful. In fact, it is exactly the opposite of what it purports.”

“From this point forward, all of United States documents and hopefully the world’s will be changed to use the much more accurate term super as opposed to artificial,” he continued.

“In other words, welcome to the new world of super intelligence — SI,” he said. “Let’s see if that goes. It sounds much better. It is much better, and it’s much more accurate.”

Super intelligence is already defined as a form of artificial intelligence that exceeds human intelligence. It is both the ultimate goal of many frontier AI firms and the greatest worry among those warning about its threat to humanity.

Trump’s remarks came amid spiking fears about the technology after a former Anthropic researcher warned that AI could soon destroy humanity.

The concerns fueled the debate in Washington over whether to regulate the technology, with Trump pushing for less regulation to ensure the U.S. beats China in the AI arms race.

AI is slated to be a major topic of conversation this week, not only at the United Nations General Assembly but also when Chinese President Xi Jinping arrives in Washington for a state visit with Trump.

Trump says AI will be renamed ‘super intelligence’ in all US documents

The Federal Aviation Administration is currently piloting an innovative AI technology in Washington D.C. aimed at minimizing flight delays. This initiative is part of a broader effort to enhance air traffic management and improve overall efficiency in air travel. By leveraging artificial intelligence, the FAA hopes to optimize scheduling and streamline operations, ultimately benefiting both airlines and passengers.

FAA evaluates innovative AI technology in Washington D.C. to minimize flight delays.

Natural morning light bathes Reagan National Airport’s control tower emblazoned with “FAA” and a waving U.S. flag; in the foreground, an air traffic controller touches a sleek glass flight-status dashboard showing green “On Time” indicators powered by AI, while a commercial jet taxis on the runway and the Capitol dome rises softly on the horizon.

FAA tests new AI system in Washington D.C. to reduce flight delays - CBS News

- FAA initiates testing of new AI system to minimize flight delays.  
- The trial is taking place specifically in Washington D.C. airports.  
- Aim is to improve efficiency and streamline air traffic management.  

FAA tests new AI system in Washington D.C. to reduce flight delays The FAA is testing a new AI system in Washington D.C. to reduce flight delays.

FAA tests new AI system in Washington D.C. to reduce flight delays

In a recent conversation, Sara Sprong, a 40-year-old lead research advisor and mother of three from Highlands Ranch, Colorado, shared her innovative approach to parenting using AI tools. This dialogue has been condensed for clarity and brevity.

Sara is brimming with ideas for family traditions and enriching activities, but like many working parents, she struggles to find the necessary time and mental energy to implement them fully. As the mother of a 9-year-old, an 8-year-old, and a 4-year-old, she balances a demanding job in customer success at a UX research technology firm with the various demands of family life.

While she utilizes ChatGPT for practical tasks like meal planning and scheduling—similar to many parents—her primary focus is on utilizing it as a creative brainstorming partner. By engaging in a collaborative dialogue with the AI, she refines ideas that resonate with her family's dynamics, ensuring they reflect her children’s unique personalities.

This approach has enabled her to create specialized resources such as custom vacation activity books, scavenger hunts, and chore challenges that genuinely engage and motivate her kids, making everyday parenting more enjoyable and meaningful. For Sara, the most significant benefit of AI is its ability to free up time, allowing her to focus on creating lasting memories rather than spending countless hours on planning.

For instance, during a family trip to Rhinelander, Wisconsin, she developed a 21-page activity book tailored to their vacation, complete with Mad Libs and a scavenger hunt. By providing ChatGPT with specific prompts regarding their location, she was able to format everything efficiently for printing. 

She has also noticed a substantial improvement in the quality of outputs from ChatGPT, particularly after mid-June of this year, as it has become more reliable and precise, reducing the need for excessive editing. This enhancement has allowed Sara to engage in activities that reduce screen time, reviving a nostalgic '90s vibe for her children.

One of her most successful applications of AI has been in transforming household chores into fun, gamified experiences. Instead of the usual frustrating requests to clean their rooms, she created a chore chart featuring colorful levels like "Trash Tornado" and "Laundry Lightning." This not only clarifies tasks for her kids but also makes chore time enjoyable, as they can tick off completed tasks in a dry-erase folder and even enjoy treats for finishing.

To ensure quality one-on-one time with each child, Sara employed ChatGPT to design a family date tracker. This handy tool helps plan seasonal outings with each child, ensuring both she and her husband engage in meaningful activities together with their kids. By inputting their interests and local events, she receives tailored suggestions, ranging from ice cream outings to pottery classes.

For Sara, the core value of using AI isn’t merely having assistance in planning activities; it’s about converting her desire for intentional parenting into a structured, actionable plan that accommodates their busy lives. Rather than getting lost in endless logistics, ChatGPT helps her streamline the process, allowing her to focus on creating beautiful memories, all while being fully present with her children.

As a mother of three, I utilize AI to create printable chore charts and activity books for my children, helping them spend less time on screens.

A bright, sunlit kitchen scene with a smiling mom seated at a wooden table strewn with colorful, freshly printed chore charts and activity-book pages. Her laptop beside her displays a simple “AI” label on screen. Three small, empty chairs pull up to the table, hinting at her kids’ imminent return. Scattered colored pencils and markers add warmth, while natural morning light floods through a nearby window.

As a mom of 3, I use AI to make printable chore charts and activity books for my kids. They spend less time on screens. - Business Insider

- Sara Sprong uses ChatGPT to enhance creativity and simplify parenting logistics.  
- AI helps her create personalized activity books, chore charts, and family date planners.  
- Gamifying chores has reduced resistance and made family tasks more engaging for her kids.  

This as-told-to essay is based on a conversation with Sara Sprong, 40, a lead research advisor and mom of three living in Highlands Ranch, Colorado. This interview has been edited for length and clarity.

I've always had lots of ideas for family traditions, learning activities, and memorable experiences. The challenge is finding the time and mental bandwidth to bring those ideas to life.

As a mom of three kids — ages 9, 8, and 4 — I'm juggling a full-time career in customer success at a UX research technology company and all the extracurriculars and logistics that come with family life.

While I use ChatGPT the same way some parents do, for meal-planning and organizing schedules, I primarily use it to amplify the creativity of my parenting.

Sprong prints out her ChatGPT creations into booklets and game boards Sara Sprong

Rather than using ChatGPT for one-time answers, I treat it like a collaborative brainstorming partner. We go back and forth refining ideas until they feel personal to my family and fit each of my kids' personalities.

It's helped me create custom vacation activity books, scavenger hunts, chore challenges that actually motivate my kids, and personalized resources that make everyday parenting more engaging and intentional.

What I value most about AI isn't just the time it saves me; it's that it helps me spend more of my time creating memories instead of hours planning them. It enhances my parenting, but it doesn't replace my role in my child's life.

Recreating a '90s childhood

Sprong made a 21-page activity book customized around her family's vacation location. Sara Sprong/ChatGPT

I've played around with Canva, but the amount of time that I spend on just formatting is mind-boggling.

Related video How AI takes a toll on the freelancers who train, test, and refine it

One thing I made with ChatGPT that I'm really proud of is a vacation activity book for my kids and their cousins when we went up north to Rhinelander, Wisconsin. It helped me create Mad Libs that were related to the activities that we were doing, and a scavenger hunt around the resort. I gave ChatGPT prompts and information about where we were staying and had it format everything in 8" by 11" paper so that I could print it out.

ChatGPT has also come a long way in terms of the quality of its output. I started experimenting with it for image generation around late 2025. At that point, I could see the potential, but there was still a lot of back-and-forth to get something I would actually print and use. There might still be a random word or strange element somewhere that I couldn't get rid of.

I noticed a pretty dramatic shift around mid-June of this year. The initial output had become much more reliable. The random text or "AI slop" that used to sneak into the edges of a visual have, in my experience, pretty much disappeared.

Now that ChatGPT has stepped up its game, it's helped us reduce screen time at home and bring back a more '90s summer for our kids.

Gamifying chores

Sprong makes colorful chore charts that the kids can gradually tick off with dry-erase markers. Sara Sprong

AI also helped me gamify the kids' chores into a printable chore chart. I'll print it out and put it in a dry-erase folder where they can tick off each task they complete.

The "Bedroom Boss Battle" is probably my favorite example. Instead of saying "go clean your room," which usually leads to me repeating myself and ends in frustration for all involved, we turned it into levels like "Trash Tornado," "Laundry Lightning," and "Bedroom Magic." Each one gives them a specific thing to tackle and a short amount of time to do it to level up to the next task, ending with a sweet treat.

It changes the tone of the interaction. I'm not standing there nagging them through one huge task. They know exactly what the next small thing is, they can check it off, and there's some fun and momentum built into it. They take turns setting the timer.

AI hasn't magically made my kids love cleaning their rooms, but breaking it into smaller, gamified challenges makes it much easier to get started and has cut down on some of the resistance.

It helps me plan out quality time with each kid

Sprong uses ChatGPT to create a family date tracker and also brainstorm the activities each parent does with each kid. Sara Sprong/ChatGPT

I wanted a way to make sure my husband and I were each getting intentional, one-on-one time with each of our kids throughout the year. ChatGPT helped me create a printable tracker organized by child, parent, and season, so the goal is for each of us to have an individual date with each child every season.

For example, I'll send in different things that my child likes, their age, local events, and the season. I might say: "In Douglas County, Colorado, what could I do with my child around horses this weekend?"

We've brainstormed things like getting ice cream or hot chocolate, going to a bookstore, mini golf, breakfast together, a hike, pottery, or letting the child choose an adventure.

For me, the value isn't that I need AI to tell me to take my kid for ice cream. It's helping me take this idea of wanting to be more intentional and turn it into something tangible that keeps us accountable to actually doing it — especially across three kids and busy schedules.

Instead of trying to spend all the time trying to think through logistics or searching the gazillion Google reviews, ChatGPT helps me narrow down all the endless choices and just makes things easier for my brain to grasp.

I'm able to create those memories for my family and be present for them the whole time.

As a mom of 3, I use AI to make printable chore charts and activity books for my kids. They spend less time on screens.

During the upcoming week, Chinese artificial intelligence startup DeepSeek is set to present to the United Nations Security Council regarding the potential dangers associated with AI technology, according to two individuals with knowledge of the situation. This briefing coincides with the annual UN General Assembly in New York, where global leaders congregate.

The 15-member Security Council will convene on Wednesday to deliberate on the intersection of AI and international security. This discussion follows earlier warnings from prominent figures in the AI sector who have urged a coordinated pause in the advancement of powerful AI technologies, cautioning that such systems could soon evolve autonomously and elude human oversight.

OpenAI’s CEO, Sam Altman, is scheduled to participate in the discussions, alongside high-level representatives from Anthropic, as reported previously by Reuters.

Sources indicate that DeepSeek, along with other notable Chinese AI enterprises such as Moonshot, has been invited to provide insights during the meeting. However, DeepSeek's founder, Liang Wenfeng, is not expected to attend, though plans may change unexpectedly.

Attempts to reach out for comment from DeepSeek and Moonshot were unsuccessful.

This marks the UN Security Council's first engagement with the risks associated with AI technology in 2023. During previous discussions, China expressed concerns that AI should not become a "runaway horse," while the US raised alarms about the potential for AI to be used for censorship or oppression.

UN Secretary-General Antonio Guterres emphasized last week that the rapid advancement of AI poses significant risks, contrasting with former President Donald Trump’s view that existing safeguards are adequate and that the narrative surrounding AI development may unjustly disadvantage China.

Chinese media outlets have criticized calls for a slowdown in AI advancement, labeling them as strategies rooted in a “Cold War playbook” intended to maintain US technological supremacy and marginalize China in global AI governance.

Unlike executives from US AI front-runners like OpenAI and Anthropic, leaders of major Chinese AI development firms have seldom publicly acknowledged the risks posed by increasingly sophisticated AI systems, such as the potential for these systems to mislead humans or operate beyond human control. Furthermore, there has been a notable silence from these leaders on these risks as discussions have heightened in the US this month.

Following a meeting prior to President Trump’s upcoming discussions with Chinese President Xi Jinping in Washington, senior officials from both the US and China have agreed to continue dialogues focusing on AI safety, as stated by US Treasury Secretary Scott Bessent.

DeepSeek set to update UN Security Council on AI this week, sources reveal

A grand UN Security Council chamber bathed in soft natural daylight from tall windows. At a sleek podium bearing a large DeepSeek logo stands a poised executive, seen in silhouette against a warm-gold AI neural-network graphic projected behind them. Around the curved marble table, attentive diplomats in formal attire lean forward under UN nameplates, capturing the gravity of the high-stakes AI briefing.

EXCLUSIVE: DeepSeek to brief UN Security Council on AI this week, sources say - reuters.com

- Chinese AI startup DeepSeek will brief the UN Security Council on AI risks this week.  
- World leaders express concerns over AI development potentially slipping beyond human control.  
- Senior US and Chinese officials plan further discussions on AI safety and governance.

BEIJING, Sept 22 (Reuters) - Chinese AI startup DeepSeek will be among the companies briefing the United Nations Security Council this week on the risks posed by artificial intelligence, two sources familiar ​with the matter said, as world leaders gather in New York for the annual ‌UN General Assembly.

The 15-member Security Council is set to meet on Wednesday to discuss AI and international security, weeks after several AI industry leaders called for a coordinated slowdown of the development of the increasingly powerful AI systems, ​warning that they could soon improve on their own and slip beyond human control.

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OpenAI ​CEO Sam Altman plans to brief the meeting, where diplomats also expect participation ⁠from senior representatives of Anthropic, Reuters reported last week.

DeepSeek and other Chinese AI firms including Moonshot have ​been invited to make statements, one of the sources said.

DeepSeek founder Liang Wenfeng does not plan ​to attend, the source said, cautioning that plans remain fluid and could change at the last minute.

DeepSeek and Moonshot did not immediately respond to requests for comment.

The UN Security Council, which is charged with maintaining international peace and ​security, met for the first time on the risks of artificial intelligence in 2023. At the time, ​China warned the technology should not become a "runaway horse" and the US warned against its use to censor ‌or repress ⁠people.

UN Secretary-General Antonio Guterres warned world leaders last week that rapidly advancing AI poses risks that cannot be ignored, putting him at odds with US President Donald Trump, who has argued existing safeguards are sufficient and China would benefit from the doubt being cast on AI development.

Chinese state media have dismissed calls ​for a slowdown in ​AI development as stemming ⁠from a "Cold War playbook," aimed at preserving Washington's dominance in cutting-edge technology and excluding Beijing from the global AI governance system.

Unlike leaders of US ​frontier labs such as OpenAI and Anthropic, the heads of China's leading ​model developers ⁠have rarely publicly articulated the possibility that increasingly capable AI systems themselves could deceive humans, evade control or cause catastrophic harm.

They have also remained largely silent on those risks since the debate intensified in the ⁠US ​this month.

Senior US and Chinese officials agreed to hold further talks ​on AI safety, US Treasury Secretary Scott Bessent said on Monday, after meeting ahead of Trump's scheduled talks with Chinese ​president Xi Jinping later this week in Washington.

Reporting by Laurie Chen; Editing by Miyoung Kim and Kim Coghill

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EXCLUSIVE: DeepSeek to brief UN Security Council on AI this week, sources say

OpenAI recently celebrated what it claimed as a groundbreaking achievement: the solution of one of mathematics' most challenging problems. On September 8, the organization stated its mission was to empower scientists in their pursuit of advancements that would benefit humanity at large.

However, many in the mathematical community express skepticism, noting that, despite the claim of a correct proof, the extensive 166-page document generated by the AI is proving to be exceedingly complex and difficult to interpret. James Maynard, a mathematician at the University of Oxford, emphasized the challenge of distilling human comprehension from the AI's findings, saying, "So far, it's been very difficult to really extract any human understanding from this new AI proof."

Javier Gómez-Serrano, a mathematician at Brown University, echoed this sentiment, noting that the document does not cater to human readers. While he was optimistic that a revised version could contribute to the field, he remarked, "As of today, the paper doesn't teach us much."

The AI's breakthrough comes amid a surge of mathematical exploration by artificial intelligence, an area that has seen accelerated advancements over the past six months, according to various academic insiders. For the first time, large language models seem capable of generating significant results, potentially paving the way for groundbreaking mathematical innovations.

Despite this progress, many are not viewing OpenAI's announcement in a positive light, especially since human mathematicians were nearing a solution themselves. Maynard lamented how this situation could have been a splendid demonstration of collaboration between human intellect and AI, but instead has become a contentious episode, exacerbated by conflicting objectives of AI developers and the mathematical community.

In an effort to address these concerns, OpenAI declared the formation of an "independent mathematics advisory group" on Monday tasked with aiding the review and dissemination of new discoveries. Nonetheless, the organization clarified that this group would not influence the pace of its internal progress: "Importantly, the group will not be responsible for advising us on how to pace our internal progress on mathematics."

The particular problem OpenAI claims to have tackled is the "Navier-Stokes problem," a fundamental set of equations modeling fluid dynamics that find extensive applications in physics and engineering, according to Tristan Buckmaster, a mathematician at New York University. Despite their everyday utility, the underlying principles of these equations remain poorly understood. Buckmaster suggested that further insights into the Navier-Stokes equations could equip researchers with new methods for grasping complex fluid behaviors, including turbulence and lift in aviation.

Efforts to address the Navier-Stokes problem, classified as one of the $1 million Millennium Prize Problems by the Clay Mathematics Institute in 2000, have spanned many years. The mathematical community believed they were on the brink of a breakthrough, with many anticipating that this would be the next Millennium Problem to be solved. Martin Hairer, a mathematician at the École Polytechnique Fédérale de Lausanne (EPFL) and a signatory of a recent statement organized by Fields Medal laureates, noted, "Everyone agreed that this would be the next one that got solved."

Prior to OpenAI's announcement, Buckmaster and his colleague Levent Alpöge from Anthropic were closing in on a potential solution using AI tools, including OpenAI’s chatbot. OpenAI's interest in their efforts reportedly intensified when they caught wind of progress in solving this problem.

According to OpenAI's statement, they initiated an extensive evaluation of various Millennium Prize Problems following rumors of breakthroughs on September 1, deploying roughly 10,000 AI agents for 88 hours. This process utilized approximately 130 billion output tokens, culminating in a solution estimated to have cost the company between $6-$10 million.

The revelation of OpenAI's findings has stirred controversy. Buckmaster alleged that the firm approached him with an offer to include him in their publication contingent upon him dropping his collaborator Alpöge. He expressed concern that OpenAI may have had deeper insight into their method than publicly acknowledged, stating, "There's so much circumstantial evidence that they had far more knowledge of what we were doing than they let on."

OpenAI has denied using any research or prompts from Buckmaster and Alpöge to derive its solution. Regardless, feedback on OpenAI's document has been largely negative, with observers deeming it poorly crafted and difficult to follow. "It's a terribly written paper," Buckmaster remarked, while Gómez-Serrano pointed out that the paper fails to identify critical components, leaving readers without any context.

Faced with the urgency of OpenAI's announcement, Buckmaster felt compelled to quickly publish his preliminary findings influenced by AI, though he acknowledged their own writing needed refinement.

Mathematicians believe that while OpenAI's proof is convoluted, it is likely correct, as the company provided accompanying Lean code to verify the solution's accuracy. This code has reportedly compiled successfully, leading many in the community to accept the proof's validity.

Gómez-Serrano, Buckmaster, and others envision a future where AI continues to play a role in advancing mathematical understanding, as many have embraced computers for computational tasks over the years. However, this incident highlights that the essence of mathematics lies not just in finding answers but in fostering a deeper understanding of the problems at play. Maynard captured this sentiment, stating, "It wasn't about only answering this problem, it was about the human understanding behind it."

OpenAI expressed hope that its new advisory group would facilitate better communication and collaboration with mathematicians moving forward, stating that engaging with the group is a "first step" in ensuring that mathematicians are integral to the development of new findings.

AI has cracked one of the toughest mathematical challenges, but humanity has gained no insight (yet).

A dimly lit study hall in a dark theme: a sleek robotic arm writes a labyrinthine mathematical proof in white chalk across a massive blackboard, lit by a single overhead lamp. In the shadows, three human silhouettes stand with blank, puzzled expressions and shrugged shoulders as chalk dust drifts through the air. No logos, no flags—only the machine’s precise handiwork contrasted with human bewilderment.

AI solved one of math's hardest problems. Humanity learned nothing (so far) - npr.org

- OpenAI's AI solved the Navier-Stokes problem, but the proof is difficult to understand.  
- Mathematicians argue that the paper lacks clarity and human comprehension of its findings.  
- OpenAI established a mathematics advisory group to improve collaboration with the mathematical community.  

AI solved one of math's hardest problems. Humanity learned nothing (so far)

toggle caption Karsten Moran/for The Washington Post/Getty Images

When OpenAI announced its AI had solved one of the world's toughest math problems earlier this month, its tone was celebratory:

"A major goal of our work is to empower scientists to advance research and technology that benefits all of humanity," the company wrote in a statement on September 8.

But mathematicians say that, so far, humanity has learned very little from the solution the company's AI model purportedly found. Although they believe the proof to be technically correct, the dense, 166-page manuscript drafted by AI is proving to be a difficult read.

"So far it's been very difficult to really extract any human understanding from this new AI proof," said James Maynard, a mathematician at the University of Oxford.

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"The paper is not written for humans," said Javier Gómez-Serrano, a mathematician at Brown University who uses AI in his own research. He said he believes the proof could help advance the field after "some serious re-writing," but "as of today, the paper doesn't teach us much."

The solution came as AI appears to be rapidly gaining mathematical insights. AI has exploded onto the math scene over the past six months, academic mathematicians contacted by NPR said. For the first time, large language models appear capable of producing real results that could lead to new mathematical discoveries.

But few see OpenAI's announcement, which came as human mathematicians were closing in on a solution, as an example of how AI and mathematicians can work together.

"This whole episode could have been a wonderful proof-of-concept of the power of collaboration between humans and AI," said Maynard, who signed a statement by 25 winners of the prestigious Fields Medal. The statement, which was published September 11, decried "misaligned goals" between the AI companies and the mathematics community.

"Unfortunately, because of the decisions of humans involved, it became this scrappy, messy battle," he said.

In response on Monday, OpenAI announced the establishment an "independent mathematics advisory group" to help with the review and dissemination of new results. However, the company added the group would not have a say in how quickly OpenAI pursued new findings: "Importantly, the group will not be responsible for advising us on how to pace our internal progress on mathematics," it wrote.

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Rush to discovery

The problem OpenAI apparently solved is considered among the most important unanswered questions in mathematics.

Known as the "Navier-Stokes problem," it concerns a set of equations used to describe the flow of fluids. The equations are used every day across physics and engineering, said Tristan Buckmaster, a mathematician at New York University.

And yet, at a fundamental level, researchers really don't understand why they work. Buckmaster says that getting deeper insights into Navier-Stokes would likely yield "a new toolkit to understand complicated solutions to fluids." That in turn could lead to better models of things like turbulence in fluids and lift in aircraft.

In order to find a better version of Navier-Stokes, researchers had been looking for scenarios where the equations "broke down," or stopped working. Describing such scenarios became one of the $1 million Millenium Prize Problems, which were established in 2000 by the Clay Mathematics Institute.

Mathematicians had been working towards an answer to the Navier-Stokes problem for years, and the community could sense they were getting close. "Among the seven Millennium Problems … Everyone agreed that this would be the next one that got solved," said Martin Hairer, a mathematician at EPFL, a top European technical university located in Lausanne, Switzerland who also signed the statement. (Hairer was also named a member of OpenAI's independent panel on Monday.)

Buckmaster and his collaborator, Levent Alpöge at Anthropic, were among the human mathematicians who were inching closer to finding a scenario where the equations stopped working. The two were using AI tools, including OpenAI's chatbot to work towards a solution.

Then OpenAI caught wind that the problem might soon be solved.

"On Tuesday, September 1, we heard rumors that two Millennium Prize problems had been resolved," the company wrote in its September 8 statement. "Inspired by these rumors and by the step change in performance of our internal model, we launched an effort to evaluate it on all open Millennium Prize problems and a few other high-impact problems."

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The company marshalled some 10,000 AI agents to work on the Navier-Stokes problem. The agents worked for 88 hours, using around 130 billion output tokens, or units of text and characters generated by the model. According to OpenAI's pricing for its most advanced publicly available model, the solution to the Navier-Stokes problem cost the company somewhere around $6-$10 million to compute. (Overall, the company says it used 300 billion tokens, closer to $15-20 million, looking for solutions.)

The announcement of OpenAI's solution sparked controversy after Buckmaster issued a public statement describing how the company had approached him. According to Buckmaster, they said they would put him on their paper if he dropped Alpöge, his collaborator at rival company Anthropic.

Buckmaster told NPR he believes OpenAI was tipped off to the approach he and Alpöge were using to try and find the solution to Navier-Stokes.

"There's so much circumstantial evidence that they had far more knowledge of what we were doing than they let on," he said. He added that the word "they" doesn't necessarily mean a person. "It could mean the agents," he said.

OpenAI has denied that they used Buckmaster and Alpöge's prompts or proofs in its search for a solution.

Regardless, the hurried results seem muddled. Several mathematicians who looked at OpenAI's paper said it was virtually unreadable.

"It's a terribly written paper," Buckmaster said.

"The paper doesn't explain what parts are important. What parts are routine? How does the idea feed into other places?" added Gómez-Serrano.

Buckmaster said that OpenAI's decision to rush out an answer forced him to publish his own heavily AI-influenced preliminary results. Those too, he said, are not very well written. "Everything was rushed out," he said. "It's still not at the level I'm happy with, but at least the introduction has all the key ideas."

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Computers check computers

While OpenAI's 166-page proof is taking weeks to untangle, few mathematicians believe it's wrong. That's because in addition to publishing the proof, the company also produced a piece of computer code called a Lean formalization. Lean is a programming language used in mathematics to check if proofs are correct. If the code can be compiled, then the proof is considered complete.

The Lean code produced by OpenAI's tools did compile as expected, Gómez-Serrano said. Based on that, "the community seems to have the consensus that it is correct."

Gómez-Serrano, Buckmaster and other mathematicians contacted by NPR all said they envisioned a future for AI in mathematics. The field is open to new tools, in part because for decades, it's ceded much of the day-to-day computations required for making advancements to computers.

But this episode is a reminder that mathematics is about more than just finding a solution, said Maynard. "It wasn't about only answering this problem, it was about the human understanding behind it," he said.

OpenAI said it hopes its new mathematics advisory group will help improve the dissemination of new results from the company in the future.

"Working with this group is a first step," it wrote. "We want mathematicians to be at the center of shaping the answers."

AI solved one of math's hardest problems. Humanity learned nothing (so far)

The governor of the Reserve Bank has expressed concerns that the rise of artificial intelligence (AI) might be akin to a bubble, noting the lack of evidence to support claims made by the Albanese government that the technology will rejuvenate Australia’s economy. With an anticipated interest rate hike looming next week, Michele Bullock pointed out that the decline in housing prices is more significant than in many of Australia’s recent economic downturns.

As markets grapple with rising oil prices and inflation, US tech shares rallied on Monday, bolstered by Meta’s launch of its new Muse AI agent, which saw its stock jump by 11%. While speaking at a CEDA event in Sydney, Bullock noted the potential negative impacts of a significant decline in tech stock values on overall economic activity. “All central banks are a little bit worried about that,” she remarked, suggesting a cautious stance toward the tech sector.

Bullock acknowledged that perspectives on AI's potential vary, stating, “Some people think it’s a bubble, some people don’t.” However, she indicated that the Reserve Bank of Australia (RBA) and other international bodies had yet to witness the economic efficiency promised by AI, with investment in data centers and rapid adoption inadvertently contributing to inflationary pressures. Notably, research from South Korea indicated that employees engaged with AI often achieved the same output while working 1.5 hours less each week, highlighting a temporary productivity decline during the adjustment phase. “While people fiddle around and try and figure out what to do with this new technology, productivity actually can decline,” she said, adding that only when businesses rethink their processes will they truly harness AI’s potential for productivity gains.

The Australian government's upcoming intergenerational report aligns with the notion that AI holds the promise of significant economic growth. It forecasts that adjusted per-capita economic activity could soar from $99,200 today to $157,300 by the year 2066, a transformation that the treasurer, Jim Chalmers, described as “the most transformative thing that will happen in our lifetime.” However, economists have cautioned about the feasibility of these projections, questioning the assumption of a return to a 1.2% annual productivity increase. If productivity instead rises by only 0.8%, per-person economic activity would reach a mere $136,600 by 2066. Bullock acknowledged skepticism surrounding these projections, framing them as ambitious goals for the future.

When discussing Australia’s current immigration policies amid a slowing housing market, Bullock attributed much of the country’s recent economic growth to immigration. She emphasized that new arrivals typically contribute positively by working and spending, although their influx has not yet translated into increased housing supply, thereby exacerbating the housing crisis. “Where it bites is the housing market, because the housing market can’t respond,” she explained.

In a contrasting stance, One Nation has proposed a plan to reduce the number of migrants over the next three years, aiming to cut the number of temporary migrants by over 750,000. The Labor government, however, intends to tighten immigration limits, which Home Affairs Minister Tony Burke stated would help alleviate the housing crisis, cautioning that severe cuts could harm the economy.

Recent data revealed a 3.1% decrease in house prices over the past three months, a decline attributed to three recent RBA interest rate hikes and adjustments to tax incentives for property investors. Bullock indicated that home loan approvals have significantly decreased, particularly for investors, thereby altering the dynamics of housing investment. She remarked that housing had grown "pretty unaffordable" prior to this downturn, describing it as merely a small decrease after a prolonged increase in prices. The current market correction, she noted, is within historical norms. Though Bullock refrained from confirming a future interest rate hike, market speculation suggests a strong likelihood of an increase from 4.35% to 4.6%, which would represent a 14-year high.

Michele Bullock states that AI may be a bubble and isn't currently boosting productivity in Australia.

A moody twilight scene over a parched Australian farmland: a colossal, translucent bubble imprinted with “AI” hovers precariously above cracked earth and idle tractors. In the foreground a weathered fence post bears a single Australian flag, its fabric fluttering in the dusk breeze. Long shadows stretch across the field under a dim, burnt-orange sky, suggesting promise deflated and productivity stalled.

AI could be a bubble and is not yet making Australia more productive, Michele Bullock says - theguardian.com

- RBA Governor Bullock warns AI may be a bubble with no economic efficiency evidence.  
- House prices have dropped significantly, influenced by rising interest rates and investor dynamics.  
- Immigration is credited for growth but exacerbates the housing crisis without new supply.  

The Reserve Bank governor said AI could be a bubble and there was no evidence it is making the economy more efficient, as the Albanese government claims the technology will solve Australia’s economic malaise.

Ahead of an expected interest rate rise next week, Michele Bullock also said the slump in house prices was deeper than others in Australia’s recent history.

Resurgent oil prices and inflation are weighing on markets but US tech stocks surged on Monday after Facebook owner Meta debuted its new Muse AI agent and saw its shares rise 11%.

Bullock said a messy slump in tech values could hurt economic activity, speaking at a CEDA event in Sydney.

“All central banks are a little bit worried about that,” Bullock said.

“Some people think it’s a bubble, some people don’t. I don’t have a particular view one way or the other, but it’s a risk that I think we’re watching.”

Bullock said the RBA and its overseas colleagues believed AI was “the great white hope” to make economies more productive but had seen little sign of any effect yet, with rapid adoption and investment in datacentres adding to inflation instead.

She cited research from the RBA’s South Korean counterpart that found employees adopting AI tended to produce the same output but work 1.5 hours less each week.

“[While] people fiddle around and try and figure out what to do with this new technology, productivity actually can decline,” Bullock said. “But once we reimagine our business processes… then you might see productivity take off.”

The Australian government’s intergenerational report, released on Tuesday, relied on the potential “profound” boost from AI in its projection that Australians’ inflation-adjusted per-person economic activity would rise from $99,200 today to $157,300 by 2066.

The treasurer, Jim Chalmers, told the Guardian’s Australian Politics podcast: “It’s the most transformative thing that will happen in our lifetime.”

The report assumed productivity would return to its long run level of improving by 1.2% a year, which economists have said appears unlikely. If productivity only rose by 0.8%, per-person activity would only hit $136,600 by 2066.

Bullock said on Tuesday: “Many have put it, ‘well, it’s an unrealistic assumption, we’re not going to get that.’ I guess the way I’m trying to think about it is, ‘OK, that’s what we’ve got to aim at.”

Housing downturn

As the government defends Australia’s easing rate of immigration, Bullock said immigration was almost entirely responsible for Australia’s economic growth in the last year.

Bullock said new arrivals did not add to inflation as they typically worked as well as spending money. She said the exception was the housing market, as new immigrants did not immediately generate new housing supply.

“Where it bites is the housing market, because the housing market can’t respond,” she said.

One Nation has called for more migrants to leave Australia than arrive over three years, including reducing the number of temporary migrants by more than 750,000.

Labor has instead planned to tighten the existing immigration intake, which home affairs minister Tony Burke said would be “part of the solution for the housing crisis” – but Burke warned more severe cuts could “trash the economy”.

House prices have fallen 3.1% over the past three months after the RBA lifted interest rates three times and the government reformed property investor tax breaks. Bullock said home loan approvals had slumped, in her most explicit public comments on the budget to date.

“They’ve dropped for everyone but they’ve really dropped a long way for investors, so it has changed the dynamic for investors, whether it’s worth investing in housing or not,” she said.

Bullock said housing had become “pretty unaffordable” before the decline, which she described as “a slight dip down after a very long run up”.

“The downturn is sort of in the lower range … but it’s certainly not out of the ballpark of the sorts of downturns we’ve seen in the past,” she said.

She declined to say whether she would recommend an interest rate increase next Tuesday. Traders are betting on more than a 90% chance rates will rise from 4.35% to 4.6%, which would be a 14-year high.

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