I’m closing my eyes and letting AI take the wheel. That’s the proposed future for GM, where executives are touting a new “eyes-off” self-driving feature launching in 2028. Nothing like a little cat nap when you’re hitting 80 mph on the highway.
In today’s big story, a portion of Corporate America is proud to tell you how it’s avoiding AI. But executives’ deep buy-in of the tech might make its arrival inevitable.
What’s on deck:
Markets: Steve Cohen’s Point72 shook up its top quant unit. Here’s how it all went down.
Tech: The great flattening just came for Google’s ad division.
Business: If you haven’t secured a “KPop Demon Hunter” Halloween costume yet, you might be out of luck. (Please don’t tell my three-year-old.)
But first, all in on not going all-in.
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The big story
OnlyHumans
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A human wrote the sentence you are currently reading. Is that a good enough reason for you to stick around?
That’s the strategy behind some big-name corporate brands. While a good chunk of businesses tout their use of AI, another cohort is proudly declaring they’re against it.
(Side note: If you’d actually prefer a robot wrote this newsletter, please don’t share that opinion with my bosses.)
Aerie, Heineken, and DC Comics are some of the brands shouting from the rooftops (or massive billboards) about their anti-AI stance, writes BI’s Lara O’Reilly and Jordan Hart.
For these companies, it’s a bet that promoting human authenticity will resonate with people who are growing tired of AI infiltrating all aspects of life.
Finding that human-AI balance was a key theme at Advertising Week New York, Lara previously reported. And even those on the cutting edge of AI seem to recognize the need to tap into the human element.
Just look at this ad from OpenAI of a guy trying to do pull-ups. How very relatable and human!
Of course, there’s no guarantee people are buying it.
“Would you like me to go ahead and do the workout for you?” reads one of the top comments on YouTube.
Cecilie_Arcurs/Getty Images
The anti-AI companies are toeing a fine line.
While most people have some level of AI fatigue — I’m sick of getting tricked by those fake, AI-generated post-game press conferences — it also seems foolish to disregard the technology altogether.
The benefits of leveraging AI to some degree are undeniable, and dismissing that could be a grave mistake. Some might argue that a purely human approach in a world full of AI is a differentiator, like a restaurant sourcing all its ingredients from a local farm.
But while that business model might work on a small scale, the bigger you are the harder it becomes. That’s especially true if your rivals are willing to dive into the AI pool headfirst.
Marketers could also be doing a bit of self-preservation. The more you proclaim the importance of marketing your company as human-first, the more job security you give yourself.
However, one study hints at the inevitability of AI adoption. The survey found 87% of executives use AI on the job, writes BI’s Sarah E. Needleman. That’s compared to just 57% usage among managers and 27% of employees using it.
The split shows how those at the top of orgs are the biggest proponents of the tech. But that doesn’t make the adoption any easier, as Sarah covered in the deep divide taking place at video-game giant Electronic Arts.
3 things in markets
Jeenah Moon/REUTERS
1. Behind the shocking shakeup at Steve Cohen’s top quant unit. The surprising ouster of Cubist president Denis Dancanet followed months of quiet maneuvering by Cohen and his top leader, people familiar with the matter said. Cubist is the roughly $7 billion quant division of Cohen’s hedge fund Point72. Here’s how it all unfolded.
2. Beyond Meat’s meme-stock craze might be starting to spoil. Shares in the buzzy plant-based meat company finished down 1% on Wednesday and fell a further 20% in early trading on Thursday. Two options trading data points — and even the retail trader driving Beyond Meat’s rally — suggest investors should be cautious.
3. Why gold’s record-breaking rally has stalled out. After repeatedly hitting all-time highs over the course of a month, the precious metal has recently retreated. Market experts say gold’s decline is likely driven by technical factors.
3 things in tech
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1. Google is stripping back management layers (again). In a memo sent to staff last month, the search giant said it was eliminating a middle-management layer in its US ads business. The move is part of Google’s larger efforts to speed up decisions and cut bureaucracy, and it reflects a wider trend happening across Big Tech.
2. Meta’s AI layoffs, in its own words. Chief AI officer Alexandr Wang said the cuts, which affect 600 Superintelligence Labs employees, will help the company make decisions more quickly. Read the full memo.
3. Amazon is taking the L in AI, but can it bounce back? Bernstein’s Mark Shmulik — a top Wall Street tech analyst — said in a note that while AWS might be last in the AI race, it’s not dead yet. Shmulik said AWS is showing early signs of progress, and its partnership with Anthropic is promising.
3 things in business
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1. Tesla’s record quarterly revenue wasn’t enough for Wall Street. The EV giant’s profit came in below analyst expectations, causing the stock to decline in after-hours trading. Elon Musk also railed against the major proxy firms opposing his proposed pay package, calling them “corporate terrorists.”
2. Good luck finding a “KPop Demon Hunters” Halloween costume. Looks like Netflix really underestimated demand: The officially licensed costumes by Spirit Halloween are sold out online and in most stores. However, unlicensed dupes abound on sites like Etsy and Amazon.
3. It may be the toughest season ever for ‘Shark Tank’ contestants. Why? Because Tariffs are screwing up the show’s usual playbook, BI’s Katherine Li writes. For businesses that rely on global supply chains, the cost of production and projected profits may have collapsed between their on-camera pitch and the time their episode airs.
In other news
What’s happening today
Intel, Ford, T-Mobile, and Southwest Airlines report earnings.
Dan DeFrancesco, deputy executive editor and anchor, in New York. Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York.
