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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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Crypto executives urged UK to create national stablecoin strategy

Thirty crypto executives have urged Finance Minister Rachel Reeves to adopt a national stablecoin strategy, warning the UK could fall behind faster-moving markets. Their letter warned that the UK could remain a ‘rule-taker’ in digital assets without regulation.

The executives criticised the UK’s current legal definition of stablecoins as outdated and misleading, likening it to defining a cheque merely as’ paper concerning currency.’

They argue that stablecoins should be recognised as digital payment rails already used globally. Signatories include Coinbase, Kraken, Copper, Fireblocks, BitGo, and VanEck leaders, calling for regulation that treats stablecoins as financial infrastructure rather than risks.

Analysts stress stablecoins remain essential, acting as the ‘cash equivalent’ for digital assets and enabling faster blockchain transfers than traditional banking.

Industry experts, including HSBC’s Daragh Maher, emphasised that growth depends on a suitable regulatory environment. Clear rules could strengthen the UK’s global financial role and let stablecoins play a key part in its digital finance system.

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CBA reverses AI-driven job cuts after union pressure

The Commonwealth Bank of Australia has reversed plans to cut 45 customer service roles following union pressure over the use of AI in its call centres.

The Finance Sector Union argued that CBA was not transparent about call volumes, taking the case to the Workplace Relations Tribunal. Staff reported rising workloads despite claims that the bank’s voice bot reduced calls by 2,000 weekly.

CBA admitted its redundancy assessment was flawed, stating that it had not fully considered the business needs. Impacted employees are being offered the option to remain in their current roles, relocate within the firm, or depart.

The Bank of Australia apologised and pledged to review internal processes. Chief executive Matt Comyn has promoted AI adoption, including a new partnership with OpenAI, but the union called the reversal a ‘massive win’ for workers.

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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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Rapper Bot dismantled after 370,000 global cyberattacks

A 22-year-old man from Oregon has been charged with operating one of the most powerful botnets ever uncovered, Rapper Bot.

Federal prosecutors in Alaska said the network was responsible for over 370,000 cyberattacks worldwide since 2021, targeting technology firms, a central social media platform and even a US government system.

The botnet relied on malware that infected everyday devices such as Wi-Fi routers and digital video recorders. Once hijacked, the compromised machines were forced to overwhelm servers with traffic in distributed denial-of-service (DDoS) attacks.

Investigators estimate that Rapper Bot infiltrated as many as 95,000 devices at its peak.

The accused administrator, Ethan Foltz, allegedly ran the network as a DDoS-for-hire service, temporarily charging customers to control its capabilities.

Authorities said its most significant attack generated more than six terabits of data per second, making it among the most destructive DDoS networks. Foltz faces up to 10 years in prison if convicted.

The arrest was carried out under Operation PowerOFF, an international effort to dismantle criminal groups offering DDoS-for-hire services.

US Attorney Michael J. Heyman said the takedown had effectively disrupted a transnational threat, ending Foltz’s role in the sprawling cybercrime operation.

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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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Grok chatbot leaks spark major AI privacy concerns

Private conversations with xAI’s chatbot Grok have been exposed online, raising serious concerns over user privacy and AI safety. Forbes found that Grok’s ‘share’ button created public URLs, later indexed by Google and other search engines.

The leaked content is troubling, ranging from questions on hacking crypto wallets to instructions on drug production and even violent plots. Although xAI bans harmful use, some users still received dangerous responses, which are now publicly accessible online.

The exposure occurred because search engines automatically indexed the shareable links, a flaw echoing previous issues with other AI platforms, including OpenAI’s ChatGPT. Designed for convenience, the feature exposed sensitive chats, damaging trust in xAI’s privacy promises.

The incident pressures AI developers to integrate stronger privacy safeguards, such as blocking the indexing of shared content and enforcing privacy-by-design principles. Users may hesitate to use chatbots without fixes, fearing their data could reappear online.

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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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Microsoft executive Mustafa Suleyman highlights risks of seemingly conscious AI

Chief of Microsoft AI, Mustafa Suleyman, has urged AI firms to stop suggesting their models are conscious, warning of growing risks from unhealthy human attachments to AI systems.

In a blog post, he described the phenomenon as Seemingly Conscious AI, where models mimic human responses convincingly enough to give users the illusion of feeling and thought. He cautioned that this could fuel AI rights, welfare, or citizenship advocacy.

Suleyman stressed that such beliefs could emerge even among people without prior mental health issues. He called on the industry to develop guardrails that prevent or counter perceptions of AI consciousness.

AI companions, a fast-growing product category, were highlighted as requiring urgent safeguards. Microsoft AI chief’s comments follow recent controversies, including OpenAI’s decision to temporarily deprecate GPT-4o, which drew protests from users emotionally attached to the model.

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