IBM sent a shockwave through the tech sector as shares dropped more than 23% at the market open. The decline raises fresh questions about whether companies are seeing enough near-term returns from their massive artificial intelligence spending.
JPMorgan Chase CEO Jamie Dimon urged the public to calm their fears regarding AI's impact on the workforce. Speaking at the America Business Forum in Miami, Dimon argued that people shouldn't be "breathless" over the technology, noting that historically, new innovations have ultimately created new jobs.
New York Governor Kathy Hochul has paused the construction of large AI data centers, drawing criticism from energy officials. Critics warn the move could weaken the U.S. ability to compete in the global AI race and encourage investment to move elsewhere.
In legal news, 26 Meta employees filed a lawsuit against the tech giant. They allege the company used AI-powered software to select workers for layoffs, specifically targeting employees with disabilities or those who had taken medical, parental, or family leave.
Meanwhile, the University of Chicago has banned electronic devices for first-year law students. Administrators say the move ensures students learn to think critically and strategically without relying on AI.