Indian firms accelerate growth through AI, Microsoft finds

Indian firms are accelerating the adoption of AI, with many using AI agents to enhance workforce capabilities rather than relying solely on traditional methods.

According to Microsoft’s 2025 Work Trend Index, 93% of leaders in India plan to extend AI integration across their organisations within the next 12 to 18 months.

Frontier firms in India are leading the charge, redesigning operations around collaboration between humans and AI agents instead of following conventional hierarchies.

Over half of leaders already deploy AI to automate workflows and business processes across entire teams, enabling faster and more agile decision-making.

Microsoft notes that AI is becoming a true thought partner, fuelling creativity, accelerating decisions, and redefining teamwork instead of merely supporting routine tasks. Leaders report that embedding AI into daily operations drives measurable improvements in productivity, innovation, and business outcomes.

The findings are part of a global survey of 31,000 participants across 31 countries, highlighting India’s role at the forefront of AI-driven organisational transformation rather than merely following international trends.

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MIT highlights divide in business AI project success

A new MIT study has found that 95% of corporate AI projects fail to deliver returns, mainly due to difficulties integrating them with existing workflows.

The report, ‘The GenAI Divide: State of AI in Business 2025’, examined 300 deployments and interviewed 350 employees. Only 5% of projects generated value, typically when focused on solving a single, clearly defined problem.

Executives often blamed model performance, but researchers pointed to a workforce ‘learning gap’ as the bigger barrier. Many projects faltered because staff were unprepared to adapt processes effectively.

More than half of GenAI budgets were allocated to sales and marketing, yet the most substantial returns came from automating back-office tasks, such as reducing agency costs and streamlining roles.

The study also found that tools purchased from specialised vendors were nearly twice as successful as in-house systems, with success rates of 67% compared to 33%.

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Google Cloud boosts AI security with agentic defence tools

Google Cloud has unveiled a suite of security enhancements at its Security Summit 2025, focusing on protecting AI innovations and empowering cybersecurity teams with AI-driven defence tools.

VP and GM Jon Ramsey highlighted the growing need for specialised safeguards as enterprises deploy AI agents across complex environments.

Central to the announcements is the concept of an ‘agentic security operations centre,’ where AI agents coordinate actions to achieve shared security objectives. It represents a shift from reactive security approaches to proactive, agent-supported strategies.

Google’s platform integrates automated discovery, threat detection, and response mechanisms to streamline security operations and cover gaps in existing infrastructures.

Key innovations include extended protections for AI agents through Model Armour, covering Agentspace prompts and responses to mitigate prompt injection attacks, jailbreaking, and data leakage.

The Alert Investigation agent, available in preview, automates enrichment and analysis of security events while offering actionable recommendations, reducing manual effort and accelerating response times.

Integrating Mandiant threat intelligence feeds and Gemini AI strengthens detection and incident response across agent environments.

Additional tools, such as SecOps Labs and native SOAR dashboards, provide organisations with early access to AI-powered threat detection experiments and comprehensive security visualisation capabilities.

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Google to replace Assistant with Gemini in smart home devices

Google has announced that Gemini will soon power its smart home platform, replacing Google Assistant on existing Nest speakers and displays from October. The feature will launch initially as an early preview.

Gemini for Home promises more natural conversations and can manage complex household tasks, including controlling smart devices, creating calendars, and handling lists or timers through natural language commands. It will also support Gemini Live for ongoing dialogue.

Google says the upgrade is designed to serve all household members and visitors, offering hands-free help and integration with streaming platforms. The move signals a renewed focus on Google Home, a product line that has been largely overlooked in recent years.

The announcement hints at potential new hardware, given that Google’s last Nest Hub was released in 2021 and the Nest Audio speaker dates back to 2020.

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Meta freezes hiring as AI costs spark investor concern

Meta has frozen hiring in its AI division, halting a spree that had drawn top researchers with lucrative offers. The company described the pause as basic organisational planning, aimed at building a more stable structure for its superintelligence ambitions.

The freeze, first reported by the Wall Street Journal, began last week and prevents employees in the unit from transferring to other teams. Its duration has not been communicated, and Meta declined to comment on the number of hires already made.

The decision follows growing tensions inside the newly created Superintelligence Labs, where long-serving researchers have voiced concerns over disparities in pay and recognition compared with recruits.

Alexandr Wang, who leads the division, recently told staff that superintelligence is approaching and that significant changes are necessary to prepare. His email outlined Meta’s most significant reorganisation of its AI efforts.

The pause also comes amid investor scrutiny, as analysts warn that heavy reliance on stock-based compensation to attract talent could fuel innovation or dilute shareholder value without precise results.

Despite these concerns, Meta’s stock has risen by about 28% since the start of the year, reflecting continued investor confidence in the company’s long-term prospects.

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Rethinking ‘soft skills’ as core drivers of transformation

Communication, empathy, and judgment were dismissed for years as ‘soft skills‘, sidelined while technical expertise dominated training and promotion. A new perspective argues that these human competencies are fundamental to resilience and transformation.

Researchers and practitioners emphasise that AI can expedite decision-making but cannot replace human judgment, trust, or narrative. Failures in leadership often stem from a lack of human capacity rather than technical gaps.

Redefining skills like decision-making, adaptability, and emotional intelligence as measurable behaviours helps organisations train and evaluate leaders effectively. Embedding these human disciplines ensures transformation holds under pressure and uncertainty.

Career and cultures are strengthened when leaders are assessed on their ability to build trust, resolve conflicts, and influence through storytelling. Without funding the human core alongside technical skills, strategies collapse, and talent disengages.

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Google urges users to update Chrome after V8 flaw patched

Google has patched a high-severity flaw in its Chrome browser with the release of version 139, addressing vulnerability CVE-2025-9132 in the V8 JavaScript engine.

The out-of-bounds write issue was discovered by Big Sleep AI, a tool built by Google DeepMind and Project Zero to automate vulnerability detection in real-world software.

Chrome 139 updates (Windows/macOS: 139.0.7258.138/.139, Linux: 139.0.7258.138) are now rolling out to users. Google has not confirmed whether the flaw is being actively exploited.

Users are strongly advised to install the latest update to ensure protection, as V8 powers both JavaScript and WebAssembly within Chrome.

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Study finds chain-of-thought reasoning in LLMs is a brittle mirage

A new study from Arizona State University researchers suggests that chain-of-thought reasoning in large language models (LLMs) is closer to pattern matching than accurate logical inference. The findings challenge assumptions about human-like intelligence in these systems.

The researchers used a data distribution lens to examine where chain-of-thought fails, testing models on new tasks, different reasoning lengths, and altered prompt formats. Across all cases, performance degraded sharply outside familiar training structures.

Their framework, DataAlchemy, showed that models replicate training patterns rather than reason abstractly. Failures could be patched quickly through fine-tuning on small new datasets, but this reinforced the pattern-matching theory.

The paper warns developers against relying on chain-of-thought reasoning for high-stakes domains, emphasising the risks of fluent but flawed rationale. It urges practitioners to implement rigorous out-of-distribution testing and treat fine-tuning as a limited patch.

The researchers argue that applications can remain effective for enterprise use by systematically mapping a model’s boundaries and aligning them with predictable tasks. Targeted fine-tuning then becomes a tool for precision rather than broad generalisation.

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Series K funding pushes Databricks valuation over $100bn

Databricks has secured a fresh funding round that pushes its valuation beyond $100bn, cementing its place among the world’s most valuable private tech firms. The Series K deal marks a sharp rise from the company’s $62bn figure in late 2024 and underscores investor confidence in its long-term AI strategy.

The new capital will accelerate Databricks’ global expansion, fuel acquisitions in the AI space, and support product innovation. Upcoming launches include Agent Bricks, a platform for enterprise-grade AI agents, and Lakebase, a new operational database that extends the company’s ecosystem.

Chief executive Ali Ghodsi said the round was oversubscribed, reflecting strong investor demand. He emphasised that businesses can leverage enterprise data to create secure AI apps and agents, noting that this momentum supports Databricks’ growth across 15,000 customers.

The company has also expanded its role in the broader AI ecosystem through partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. Last year, it opened a European headquarters in London to cement the UK as a key market and strengthen ties with global enterprises.

Databricks has avoided confirming an IPO timeline, though Ghodsi told CNBC that investor appetite surged after fintech Figma’s listing. With Klarna now eyeing a return to New York, Databricks’ soaring valuation highlights how leading AI firms continue to attract capital even as market conditions shift.

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Google Pixel 10 could transform smartphones with advanced AI features

Google’s upcoming Pixel 10 smartphones are tipped to place AI at the centre of the user experience, with three new features expected to redefine how people use their devices.

While hardware upgrades are anticipated at the Made by Google event, much of the excitement revolves around the AI tools that may debut.

One feature, called Help Me Edit, is designed for Google Photos. Instead of spending time on manual edits, users could describe the change they want, such as altering the colour of a car, and the AI would adjust instantly.

Expanding on the Pixel 9’s generative tools, it promises far greater control and speed.

Another addition, Camera Coach, could offer real-time guidance on photography. Using Google’s Gemini AI, the phone may provide step-by-step advice on framing, lighting, and composition, acting as a digital photography tutor.

Finally, Pixel Sense is rumoured to be a proactive personal assistant that anticipates user needs. Learning patterns from apps such as Gmail and Calendar, it could deliver predictive suggestions and take actions across third-party services, bringing the smartphone closer to a truly adaptive companion.

These features suggest that Google is betting heavily on AI to give the Pixel 10 a competitive edge.

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