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Klarna’s AI-driven workforce reduction, AstraZeneca’s disease-detecting algorithm, and China’s surging AI industry are among the top AI news this week. Companies are grappling with AI hiring dilemmas, with some opting for internal “tiger teams” to develop AI capabilities. UBS’s rapid AI M&A analysis tool and IBM’s free AI fundamentals training further highlight the growing impact of AI across various industries. These developments demonstrate the rapid pace of AI advancement and the challenges companies face in staying competitive while managing resources effectively.
1. Klarna to halve workforce, citing AI efficiency
Klarna, the buy-now-pay-later company, plans to dramatically reduce its workforce from 3800 to 2000 employees. CEO Sebastian Siemiatkowski attributes this decision to AI-driven efficiencies, citing a 27% revenue boost and a 73% increase in revenue per employee. Rather than implementing layoffs, the company intends to use “natural attrition” to achieve this reduction. Klarna also plans to replace traditional enterprise software with an AI-powered system, potentially challenging conventional software models in the industry.
2. AI tool MILTON detects early disease signs
AstraZeneca has developed an AI algorithm called MILTON that can detect early signs of over 1,000 diseases, potentially years before symptoms appear. The tool analyses routine test results to predict diagnoses far in advance, which could accelerate the development of targeted treatments. AstraZeneca is making the data available to researchers, potentially leading to new preventative diagnostic tools. This technology represents a significant advancement in early disease detection and could transform preventative healthcare.
3. China’s AI industry projected for massive growth
China’s AI industry is poised for substantial growth, according to CICC chairman Chen Liang, who estimates a $1.4 trillion investment in the sector over the next six years. The country’s AI market demand is expected to reach $780 billion by 2030. In the first half of 2024 alone, over 237,000 AI-related companies were launched in China. This growth is supported by the Chinese government, which has prioritized AI development amid ongoing tech competition with the US, implementing favourable policies to leverage AI for industrial transformation.
4. Companies face AI hiring dilemma
As AI capabilities expand, executives are grappling with whether to upskill existing staff or hire AI experts. While 90% of tech leaders plan AI initiatives, 41% lack skilled staff. External consultants offer immediate expertise but risk creating dependency. Some companies, like Bitsight, opt for internal “tiger teams” to develop AI capabilities. This dilemma highlights the rapid pace of AI advancement and the challenges companies face in staying competitive while managing resources effectively.
5. UBS develops rapid AI M&A analysis tool
UBS has created an AI “co-pilot” capable of analysing 300,000 companies in just 20 seconds for M&A opportunities. The tool generates M&A ideas, identifies potential buyers and targets, and can even detect potential activist campaign targets by analysing management presentations. UBS has been using this tool with clients for a year, demonstrating the practical application of AI in financial services. However, the bank notes that AI implementation is complicated by compliance risks and issues of responsibility attribution.
6. IBM offers free AI fundamentals training
IBM is offering a free 10-hour AI fundamentals course with a digital credential through its SkillsBuild learning portal. The course covers crucial topics including AI ethics, fairness, transparency, and privacy. This initiative highlights IBM’s long history and expertise in AI development, dating back to the creation of Watson, which famously beat Ken Jennings on Jeopardy in 2011. By providing this training, IBM is contributing to the broader understanding and responsible development of AI technologies.