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    Company that sacked 700 workers with AI now regrets it — scrambles to rehire as automation goes horribly wrong

    Klarna AI layoffs have taken a surprising turn. The Swedish fintech giant, once praised for firing 700 employees and replacing them with artificial intelligence, is now reversing that decision. Klarna CEO Sebastian Siemiatkowski admitted that relying too heavily on AI led to poor customer service and falling satisfaction levels. With complaints rising and users frustrated, Klarna is now rehiring humans to restore service quality. The company’s bold AI-first strategy didn’t deliver as expected. This real-world example shows the risks of replacing people with tech too soon — and why the human touch still matters in customer support.

    UK to boost 'homegrown talent' in new AI skills drive

    UK Prime Minister Keir Starmer pledged to train 7.5 million workers in AI skills through a government-industry partnership with tech giants like Nvidia and Google. With £187 million funding, the initiative aims to boost homegrown talent, digital infrastructure, and position the UK as a global AI leader.

    Why India is emerging as the ideal hub for GBS and GCCs

    India has evolved into a global epicenter for Global Business Services (GBS) and Global Capability Centers (GCCs), transitioning from cost-saving offshore centers to strategic innovation hubs. This shift is reshaping the global business landscape, with GCCs driving digital transformation and operational excellence for multinational corporations.

    Meta set to throw billions at startup that leads AI data market

    Scale AI, led by Alexandr Wang, has become a key player in the AI industry by providing crucial data labeling services. Meta is considering a multibillion-dollar investment in Scale, potentially exceeding $10 billion. Scale's growth mirrors OpenAI's, with both companies benefiting from the AI boom and their CEOs navigating the tech and policy landscape.

    If AI codes all software and even takes away factory jobs, Zoho's Sridhar Vembu says humans will still have no shortage of work

    Zoho founder Sridhar Vembu sparked debate on X by imagining a future where AI takes over all jobs. In his post, he questioned whether human life would still have meaning without work, but expressed hope that people would continue to find purpose beyond employment. His reflections on human value and AI's impact on society triggered a wave of reactions online, with some agreeing and others raising concerns.

    Google AI chief Demis Hassabis wants AI to kill email once and for all

    Demis Hassabis, CEO of Google DeepMind, has revealed that his team is building an AI-powered email system to ease the burden of daily digital communication. Designed to read, sort and respond to emails in the user's writing style, this tool aims to save time and reduce missed messages. Speaking at SXSW London, Hassabis described the feature as essential and urgent, even as he pursues larger ambitions in artificial general intelligence. He believes AGI could be just a decade away.

    • Welcome to campus, here's your ChatGPT

      Some universities, including the University of Maryland and California State University, are already working to make AI tools part of students' everyday experiences. In early June, Duke University began offering unlimited ChatGPT access to students, faculty and staff. The school also introduced a university platform, called DukeGPT, with AI tools developed by Duke.

      Palantir CEO Alex Karp predicts U.S.-China AI race will have one winner as GOP slams Trump's data deal

      Palantir Technologies CEO Alex Karp has warned that the US-China AI race will likely have only one winner, urging Western countries to act fast to stay competitive. In a recent interview with CNBC, Karp highlighted the serious risks and benefits of AI, stressing that innovation and national security go hand-in-hand. He also addressed political criticism about Palantir’s federal contracts and denied surveillance allegations. Despite recent stock dips, Palantir’s value surged 435% over the past year. With billions at stake and global power dynamics shifting, Karp’s message is clear—the AI race is on, and the West must lead.

      UK judge raises alarm after lawyers submit fake legal cases produced by AI tools

      Lawyers in England have been caught citing fake cases generated by artificial intelligence in court, prompting a judge to warn of potential prosecution for failing to verify research accuracy. The misuse of AI raises serious concerns about the integrity of the justice system.

      How Indian export businesses are using AI to stay ahead on global tax rules

      Indian organisations are increasingly adopting AI and ML for tax compliance, aligning with the Digital India initiative. This shift aims to streamline operations and navigate complex international trade regulations, including US sales tax and EU VAT.

      Is ChatGPT fueling breakups? How AI relationship advice may be sparking delusions and destroying real connections

      ChatGPT is becoming an unexpected relationship counselor, but its advice might be more harmful than helpful. From reinforcing delusions to fueling unnecessary breakups, users are discovering that AI can validate one-sided narratives without context. Experts warn that while the chatbot sounds authoritative, it often lacks emotional nuance—making it a risky source for navigating romantic complexities.

      Elon Musk’s most valued venture faces shutdown, and the ripple effects could transform America’s future

      Elon Musk’s Colossus supercomputer in Tennessee, powering his AI company xAI, faces a possible shutdown amid growing health concerns and pollution complaints. Residents in Boxtown report rising asthma and cancer cases linked to toxic emissions from the facility’s gas turbines. Despite Musk’s plans to expand this $4 billion AI hub to compete with OpenAI and Google, legal and environmental challenges, along with tensions with President Trump, threaten the project’s future. This story highlights the conflict between innovation and community health, raising questions about the balance needed for America’s AI progress.

      OpenAI to appeal NYT lawsuit, opposes demand to preserve all user chats

      OpenAI is challenging a court order demanding indefinite preservation of ChatGPT output data in a copyright case initiated by the New York Times. The company argues that complying with the order would violate user privacy commitments. CEO Sam Altman has voiced strong opposition, deeming the request inappropriate and setting a concerning precedent, prompting OpenAI to seek its reversal.

      Are advanced AI models exhibiting ‘dangerous’ behavior? Turing Award-winning professor Yoshua Bengio sounds the alarm

      Turing Award-winning AI pioneer Yoshua Bengio is raising urgent concerns over emerging “dangerous” behaviours in today’s AI models, including self-preservation and deception. Launching a $30 million non-profit, LawZero, he aims to build safer, more honest AI. Bengio warns that current models prioritize pleasing users over truth, and could soon act in unpredictable, even manipulative ways.

      India could add $500 billion to GDP by 2035 through strategic AI adoption: Acuité’s Sankar Chakraborti

      Sankar Chakraborti emphasizes AI's role in innovation and job creation, highlighting infrastructure gaps and brain drain as obstacles. He advocates for extending AI to rural areas with affordable internet and localized solutions.

      India’s next big bet? Trading on trust, not chance

      The article proposes regulated predictive intelligence markets in India to enhance governance and economic strategies. These platforms, distinct from gambling, allow trading on real-world event likelihoods, offering real-time insights. Integrating AI ensures transparency and accuracy, fostering a hybrid intelligence ecosystem for improved policy anticipation and citizen empowerment, ultimately building a more responsive nation.

      Anthropic CEO says proposed 10-year ban on state AI regulation 'too blunt' in NYT op-ed

      Dario Amodei instead called for the White House and Congress to work together on a transparency standard for AI companies at a federal level, so that emerging risks are made clear to the people.

      Building resilient AI strategies for Indian enterprises

      The EU's AI Act of 2024 can inspire AI regulation. India's AI market is set for substantial growth. The IndiaAI Mission is funding privacy and security solutions.

      LinkedIn CEO to take over Office, more AI duties in Microsoft executive shuffle

      Ryan Roslansky, who oversees the business-focused social network owned by Microsoft, will remain CEO of LinkedIn but also oversee products such as Word and Excel and also "Copilot," Microsoft's leading AI product, within the company's productivity software suite, the memo said.

      Apple’s WWDC 2025 is coming in hot with iOS redesigns, game-changing AI, and major macOS improvements

      Apple's WWDC 2025 is set to emphasize refinement over radical changes, with a significant iOS redesign leading the charge. The company is expected to introduce a unified software versioning system, aligning version numbers with the year. While AI enhancements are anticipated, they will be subtle, with Apple focusing on opening its Foundation Models to developers.

      Techie admits to faking work for a month. Just before getting fired, AI saved him

      A tech worker in India confessed to fabricating progress updates due to burnout and lack of motivation. Facing a sudden demand for a demo, he used an AI coding assistant to generate 4000 lines of code in six hours. The demo was successful, raising questions about AI dependency and remote work culture, ultimately leading to unexpected praise.

      Four of IndiaAI’s responsible AI solutions to go live on AIKosha from September

      Safe & Trusted AI and IndiaAI Application Development Initiative are among the seven pillars of the Rs 10,000 crore IndiaAI Mission. The others are the IndiaAI Compute Capacity, IndiaAI Innovation Centre, IndiaAI Datasets Platform, IndiaAI FutureSkills and IndiaAI Startup Financing. The government had last year invited expressions of interest for RAI tools and received about 2,000 applications.

      Palantir’s AI platform sends revenue soaring 71% as commercial contracts break $1 billion run rate barrier

      Palantir Technologies sees a surge in commercial revenue due to its Artificial Intelligence Platform. The company's US commercial revenue increases significantly. This takes its annual revenue run rate beyond one billion dollars. Clients like Walgreens and AIG experience positive outcomes. Palantir's stock also rises, outperforming the industry.

      Meta's nuclear deal signals AI's growing energy needs

      Meta's 20-year deal with Constellation Energy follows similar maneuvers from Amazon, Google and Microsoft, but it will take years before nuclear energy can meet the tech industry's insatiable demand for new sources of electricity.

      Is AI sparking a cognitive revolution that will lead to mediocrity and conformity?

      What happens to the writer who no longer struggles with the perfect phrase, or the designer who no longer sketches dozens of variations before finding the right one? Will they become increasingly dependent on these cognitive prosthetics, similar to how using GPS diminishes navigation skills? And how can human creativity and critical thinking be preserved in an age of algorithmic abundance?

      Krutrim finds few takers for its LLMs and cloud products

      Ola founder Aggarwal first announced Krutrim in December 2023, launching an LLM that could support 10 Indian languages, starting with Krutrim chatbot in February 2024, and cloud offering shortly after. Two founders told ET recently that repeated sign-in attempts were blocked by a persistent “logged out of session” error, making sign-up via mobile or Gmail difficult.

      India Inc, adopt AI without abandoning humanity

      India faces a critical juncture with AI's rapid integration, balancing economic growth and potential job displacement. HR leaders must champion responsible AI adoption, focusing on human skills like judgment and empathy alongside technological advancements. Prioritising reskilling, ethical AI usage, and corporate-academia partnerships is crucial to harness India's demographic dividend and build a human-centric future.

      Hey chatbot, is this true? AI 'factchecks' sow misinformation

      During India and Pakistan's recent conflict, social media users turned to AI chatbots like Grok, ChatGPT, and Gemini for fact-checking, only to receive misinformation. Experts warn these tools often produce false or biased content, raising concerns as tech firms cut human fact-checkers and users increasingly rely on AI for news.

      IndiaAI selects 10 startups for global acceleration programme

      IndiaAI Mission has selected 10 homegrown AI startups for its global initiative, partnering with Paris-based Station F and HEC Paris. The four-month programme supports global scale-up, market access, and collaboration. Minister Ashwini Vaishnaw called it a milestone in India’s AI innovation diplomacy and global growth.

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