The latest on how AI is changing the business landscape

A Note from Malcolm

Microsoft distinguished itself in Big Tech last week, reporting robust second-quarter financial results.? Satya Nadella pointed to Github Copilot as being central to growth as it “is by far the most widely adopted AI-powered developer tool.?Just over two years since its general availability, more than 77,000 organizations from BBVA, FedEx and H&M to Infosys and Paytm have adopted Copilot.”??

Impressive adoption, yet it begs the question: Where’s the beef??That is, where is it producing meaningful business value??This isn’t an isolated question.

At TalentGenius we’ve been closely monitoring the code-generation space as it can provide meaningful insight on how and where software will eat work.?More than $2 billion of venture capital has been invested across market leaders Copilot, Cursor, Replit Ghostwriter, Augment, Sourcegraph Cody, Codeium and Kite. Overall their sales have been impressive.??

Yet, to date, these code generation tools have not yielded significant business results. Overall developer productivity hasn't markedly increased, nor have workforces shrunk. Tools alone don’t drive step-change.?This mirrors historical gaps between innovation and application, like the century between Newcomen’s steam engine and Britain’s first railroads. Realizing generative AI's full potential in software development requires new approaches and methods.?The individuals and companies that figure that out in the next year will be greatly rewarded, while those who miss it may be in for a bumpy ride.??

With that lens, here are some highlights from the past week at the intersection of enterprise AI and work:

1. Copilot stats reveal a changing Microsoft

How AI is transforming the world’s largest software company. Check out the latest AI news.

2. There’s no future for average coders, and they know it??

Devs need to upskill as AI automates the basics in generating and debugging code.?Read the article here.

3. Why agents are the next frontier of GenAI

How virtual co-workers, focused on specific workflows, will soon change the game.?Check out the full report.

4. A tough earnings season: Wall Street wonders if AI will ever make money

The early stages of a mega tech trend can make investors nervous.?Read the article.

5. Intel gets hammered: down 26% on Friday alone

Firm pivots to AI chips, CEO Gelsinger arguing “our investments…in the AI PC category would pressure margins in the near-term.?We believe the trade-offs are worth it. The AI PC will grow from less than 10% of the market today to greater than 50% in 2026.” See the latest news.

6. The world’s first major AI law rolls out?

The EU’s AI Act comes into force.?What it means for businesses:?Check out the entire story.

7. Cognizant/Oxford Economics study: AI will drive $1 trillion in annual growth and impact 90% of jobs by 2032

A review of 18,000 job tasks and the impact AI will have on them.?See the full PDF.

8. Real AI wars: How Lockheed Martin is using AI to revolutionize defense

Once again, defense and porn are at the vanguard of a tech shift.?On this family channel we’ll take a look at the former. Find the latest post here.

9. Who’s really at the wheel for Uber and Lyft?? AI

The algorithms, which predict how much riders might be willing to pay, and how much compensation drivers might accept, are far more sophisticated than most realize. See the entire article.

10. Cloud infrastructure revenue approached $80 billion this quarter

Up 22% from last year, with AI as the key catalyst.?Read the entire story here.

11. Tool of the Week: tl;dv

tl;dv’s AI provides customizable insight reports from any meeting across your company, not just your own. Check it out.

12. Google’s Gemini AI Olympics-themed ad sparks fierce backlash

"This ad makes me want to throw a sledgehammer into the television every time I see it," says Washington Post columnist.?Get the exclusive here.

13. Shaping the future of India with AI skills and jobs

“The AI-driven job market is not just about technical skills; it's about creating a new breed of professionals who can think critically, innovate relentlessly, and adapt swiftly.” Read the latest AI news.

14. And one more thing…

Cat’s out of the bag. The internet’s favorite animal gets a disturbing makeover.?Check it out.

OK.? See you all next week.