The Federal Reserve Chair Jerome Powell announced an interest rate cut earlier this month. Analysts are already predicting another cut at the Federal Reserve’s November meeting. Currently, 38.6% of economists expect another half-point reduction.
To get good at AI you need to use AI.
So it is good that AI use is a lot more democratized than most technologies: GenAI is cheap & available to billions. A lot of traditional equity gaps in tech are mitigated… except the gender gap.
Women use AI significantly less than men. pic.twitter.com/4RWL9UMaaS
— Ethan Mollick (@emollick) September 30, 2024
Despite the rate cut, interest rates on loans might not reduce. Treasury yields have increased, affecting mortgage, auto loan, and corporate borrowing rates. This increase in Treasury yields can be attributed to various factors, from benign to ominous.
Worth reading @joshgans on a paradox at the heart of AI regulation: when the effects of AI can only be learned by doing, then pausing development can actually hurt AI safety by delaying learning.
Regulators that experiment, and react fast, may be best. https://t.co/hMpvhp49z3 pic.twitter.com/CCz6cZyN1G
— Ethan Mollick (@emollick) September 29, 2024
These factors include investor pricing and federal deficit concerns. The weakening job market was a contributing factor to the rate cuts. The unemployment rate rose to 4.2% in August.
Here's how I use AI daily for my work and what tools I'm testing right now:
(real-world use cases, not just for fun)
For my business:
> Lindy AI atomates simple emails, customer support, negotiations, and pings me when it needs me
> Custom GPTs trained on looms, SOPs, and…
— Rowan Cheung (@rowancheung) September 29, 2024
Consumer confidence fell sharply, raising concerns. These concerns include fewer work hours, slower raises, and fewer job openings. The federal government recently sued Visa, alleging the company violates antitrust laws with its debit card business.
Visa handles nearly 60% of U.S. debit card transactions.
Market dynamics and economic pressures
The lawsuit argues that it has amassed undue power to extract excessive fees in a non-competitive market.
Julie Rottenberg, Visa’s general counsel, contends that the lawsuit overlooks the competitive nature of the debit market. She emphasizes Visa’s secure network and fraud protection. WeightWatchers faced a significant challenge with the abrupt departure of CEO Sima Sistani.
The company has struggled as consumer health and weight loss habits evolve. Interest has shifted towards medications like Ozempic and Wegovy. Oprah Winfrey, a longtime advocate, left the company.
She sold her stock and exited its board in February. The stock has dropped by over 90% in 2024. Tara Comonte, a board member and former CEO of TMRW Life Sciences, steps in as interim CEO.
For businesses navigating AI integration and evolving governance, realistic goals and agile, forward-thinking boards are essential. Market dynamics and external pressures further emphasize the need for adaptable and informed leadership. These pressures include economic shifts and legal challenges.
- Forbes.”How To Set Realistic AI Expectations And Goals For Your Business”.
- HBR.”AI Can (Mostly) Outperform Human CEOs”.
- HackerNoon.”Companies Keep Asking Everyone Else About How to Use AI – Except AI Itself”.