In the wake of the week…

Knowledge workers are relying on AI for efficiency but at the cost of critical thinking. Big Tech continues to consolidate control over AI’s future, with a handful of billionaires shaping policy, regulation, and access. Goldman Sachs is proving that AI can scale responsibly within large enterprises, offering a model for businesses navigating AI adoption. And, in Extra Credit, Silicon Valley is undergoing a cultural transformation.

Let’s dive in. 👇

ONE // AI and Critical Thinking: The Hidden Tradeoff

AI is making knowledge work easier, but at a cost to deep thinking. A study from Carnegie Mellon and Microsoft Research found that as professionals rely more on AI, they engage less in independent analysis. New research suggests this pattern is part of a larger cognitive shift—one that goes beyond AI alone.

Why it Matters

AI is reshaping how people engage with information, shifting work from problem-solving to validation. Cognitive outsourcing is expanding, making efficiency the priority over deep analysis. This trend began with search engines, automation, and digital tools that offload mental effort. AI accelerates this shift by not just retrieving information but generating conclusions, making it easier to accept outputs without deeper scrutiny. As AI integrates further into daily workflows, its role as a thinking tool grows, shaping the way people process and evaluate information.

The Bottom Line: AI is changing how people work and how they think. The challenge is ensuring AI remains a tool for enhancement rather than one that subtly reshapes decision-making and cognitive engagement. Businesses and workers must ensure efficiency does not come at the expense of independent thought.

Source: Microsoft [report] and Vox

TWO // AI’s Power Problem: The Rising Influence of Big Tech in the Race for Control

Big Tech's control over AI is raising concerns about unchecked influence and systemic risks. Pulitzer Prize-winning journalist Gary Rivlin warns that a small group of billionaires—Elon Musk, Mark Zuckerberg, Jeff Bezos—are shaping the future of AI with little oversight. In AI Valley, Rivlin explores the financial and societal stakes of the AI race.

The Big Picture

• Regulation in flux: Biden issued an executive order to regulate AI, but Trump repealed it, citing concerns over government interference.

• AI as amplified intelligence: Machines process vast amounts of data but do not understand context, creating risks of misinformation and unpredictable behavior.

• Accelerationists push forward: Some in Silicon Valley believe any restrictions on AI slow progress and limit competitive advantage, particularly against China.

By the Numbers

• $100 billion+ in reserves at Google, allowing long-term AI investment without immediate profit concerns.

• 5 billion smartphones worldwide could serve as AI tutors, potentially transforming global education.

• 10 years since OpenAI’s founding, yet it outpaced tech giants due to its agility and willingness to take risks.

What to Watch

Along with its advantages, AI comes with substantial risks, from large-scale financial fraud to bioengineered threats. Compounding these concerns is the black box problem: AI models process vast amounts of data to generate responses, yet even their creators do not fully understand how they arrive at conclusions. Meanwhile, the race to dominate AI is shaping the market itself. Tech giants like Google and Microsoft can absorb years of losses to refine their AI strategies, while startups must move quickly to monetize or risk being left behind.

The Bottom Line: Businesses must compete in an AI-driven market where agility matters, but deep pockets shape the rules. The future of AI is being written now, and those without a seat at the table may find themselves playing by rules they had no hand in shaping.

Source: NPR

THREE // Goldman Sachs’ AI Bet: What Businesses Can Learn

Goldman Sachs is integrating AI across its operations with a focus on productivity, efficiency, and client service. The firm is rolling out AI tools methodically, balancing innovation with risk management. Other businesses can take lessons from its approach.

By the Numbers

• 10,000 employees have access to GS AI Assistant, with plans for firm-wide adoption by the end of 2025.

• 25% of Goldman’s workforce are engineers, making AI-powered coding tools a priority for productivity gains.

• Multiple AI models power GS AI Assistant, including OpenAI’s GPT, Gemini, and Llama, allowing for flexibility based on task requirements.

Key Takeaways for Business Leaders

• Start Small, Scale Smart: Goldman introduces AI in targeted areas before expanding firm-wide. Businesses should begin with AI in areas where efficiency gains are clear.

• Build and Buy: Goldman develops AI tools in-house while integrating external models for flexibility. Businesses should evaluate where proprietary AI matters and when third-party models offer speed.

• AI as an Amplifier, Not a Replacement: Goldman positions AI as a tool to enhance employee output. Companies should focus on automation that frees teams for higher-value work.

• Governance First: AI risks include hallucinations and data security issues. Goldman enforces strict oversight and human review. Businesses should establish strong AI policies early.

• Internal Champions Drive Adoption: Goldman embeds AI advocates in business units to encourage use and refine applications. Companies should empower employees to identify AI-driven improvements.

Why It Matters

Goldman Sachs’ AI strategy signals a broader shift in how firms integrate AI as a core operational tool. Early productivity gains from AI coding assistants prove automation can accelerate workflows without cutting jobs. Governance remains the key differentiator, with strict oversight ensuring AI reliability and security.

The Bottom Line: As AI reshapes roles, companies that invest in employee education and internal adoption will see the greatest returns.

Source: Fortune, PYMNTS, Finextra, YouTube

Extra Credit

For the overachievers: These are the stories that didn’t crack the top three but are too important to ignore—quick hits on what’s happening and why it matters.

Tech’s Reality Check: Perks Fade, Pressure Mounts as Efficiency Rules

Key Takeaway: Tech companies are shifting from worker-friendly policies to performance-driven workplaces. Layoffs, return-to-office mandates, and heightened expectations signal the end of Silicon Valley’s golden era of perks and job security.

Why It Matters: The industry’s cultural reset is reshaping careers and workplace norms. Employees who once had leverage now face higher demands and tighter performance scrutiny, with fewer safety nets.

Source: Business Insider

Italian Newspaper Creates First Ever 100% AI-Generated Edition

Key Takeaway: An Italian newspaper, Il Foglio, has published an entire edition generated by AI, raising questions about the role of artificial intelligence in journalism. While intended as an experiment, the move reflects broader industry trends as news organizations explore AI for content production despite accuracy concerns and potential job cuts.

Why It Matters: AI-generated news risks amplifying misinformation, reducing accountability, and eroding public trust in journalism. As media outlets look for cost-saving measures, the line between credible reporting and AI-assembled content will blur, forcing both journalists and readers to scrutinize sources more closely.

Source: Gizmodo

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