Future of work

Gusto embraces AI by upskilling non-technical staff

Gusto’s co-founder and head of technology, Edward Kim, believes that replacing existing teams with AI engineers is not the best approach for businesses preparing for an AI-driven future. In an interview, Kim emphasised that non-technical team members often have a deeper understanding of customer needs and challenges, making them more effective in guiding the development of AI tools.

At Gusto, non-technical customer experience team members contribute by writing “recipes” that instruct Gusto’s AI assistant, Gus, on how to interact with customers. This approach allows employees to leverage their domain expertise, even without technical skills, to create powerful AI applications. Kim highlighted the success of CoPilot, a customer support tool developed by a former support team member, Eric Rodriguez, who was later promoted to the engineering team. The tool, used by Gusto’s support team, quickly became a game-changer, enhancing efficiency by providing immediate, accurate responses based on the company’s internal knowledge base.

Kim noted that AI tools like Gus empower teams to create solutions without requiring coding knowledge, using natural language instructions. This bottom-up strategy contrasts with the trend of hiring highly specialised AI experts and reflects Gusto’s belief in leveraging domain expertise. As AI continues to evolve at the company, Kim envisions a shift in roles, with more employees focusing on writing AI recipes and fine-tuning prompts rather than direct customer interactions. This approach, he suggests, will enhance customer experiences and free up resources for Gusto to expand its services.

Imogen Heap explores the future of music with AI

Imogen Heap, known for her creative innovations in pop music, is embarking on her most ambitious project yet, a digital twin called Mogen. Powered by AI, Mogen is trained on years of Heap’s data, allowing it to mimic her voice, personality, and creative process. Initially designed for fan interactions, the AI now aims to transform how Heap performs and produces music by integrating real-time improvisation and data-driven collaboration during live shows.

Heap sees Mogen as more than a digital assistant. She envisions it as a tool that can help her streamline her workflow and deepen her creative process. In live performances, Mogen could use biometric and atmospheric data to create hyperreal, immersive experiences for the audience. Heap believes this level of interaction between artist, AI, and fan will pave the way for new, ethically sound ways to collaborate with technology.

The project reflects Heap’s ongoing mission to push the boundaries of music and tech, using AI not just for efficiency but for expanding creative possibilities. While she acknowledges potential risks, Heap is confident that AI can revolutionise the music industry, much like her earlier work with vocoders and innovative production techniques.

Meta unveils Movie Gen in collaboration with Blumhouse

Meta, the owner of Facebook, announced a partnership with Blumhouse Productions, known for hit horror films like ‘The Purge’ and ‘Get Out,’ to test its new generative AI video model, Movie Gen. This follows the recent launch of Movie Gen, which can produce realistic video and audio clips based on user prompts. Meta claims that this tool could compete with offerings from leading media generation startups like OpenAI and ElevenLabs.

Blumhouse has chosen filmmakers Aneesh Chaganty, The Spurlock Sisters, and Casey Affleck to experiment with Movie Gen, with Chaganty’s film set to appear on Meta’s Movie Gen website. In a statement, Blumhouse CEO Jason Blum emphasised the importance of involving artists in the development of new technologies, noting that innovative tools can enhance storytelling for directors.

This partnership highlights Meta’s aim to connect with the creative industries, which have expressed hesitance toward generative AI due to copyright and consent concerns. Several copyright holders have sued companies like Meta, alleging unauthorised use of their works to train AI systems. In response to these challenges, Meta has demonstrated a willingness to compensate content creators, recently securing agreements with actors such as Judi Dench, Kristen Bell, and John Cena for its Meta AI chatbot.

Meanwhile, Microsoft-backed OpenAI has been exploring potential partnerships with Hollywood executives for its video generation tool, Sora, though no deals have been finalised yet. In September, Lions Gate Entertainment announced a collaboration with another AI startup, Runway, underscoring the increasing interest in AI partnerships within the film industry.

Bain and OpenAI to develop AI solutions for key industries

Bain & Company announced it is expanding its partnership with OpenAI to offer AI tools like ChatGPT to its clients. The firms previously formed a global alliance to introduce OpenAI technology to Bain’s clients, and the consultancy has now made OpenAI platforms, including ChatGPT Enterprise, available to its employees worldwide.

Bain is also setting up an OpenAI Centre of Excellence, managed by its own team, to further integrate AI solutions. The partnership will initially focus on developing custom solutions for the retail and healthcare life sciences industries, with plans for expansion into other sectors.

While Bain did not disclose financial details, around 50 employees will be dedicated to this collaboration, as reported by the Wall Street Journal.

Human-level AI still a decade away, Meta scientist warns

Achieving human-level AI may be at least a decade away, according to Meta’s AI scientist, Yann LeCun. Current AI systems, like large language models, fall short of true reasoning, memory, and planning, even though companies like OpenAI market their technologies with terms like ‘memory’ and ‘thinking’. LeCun cautions against the hype, saying these systems lack the deeper understanding required for complex human tasks.

LeCun argues that the limitations stem from how these AI models function. LLMs predict words, while image and video models predict pixels, making them capable of only single or two-dimensional predictions. In contrast, humans operate in a three-dimensional world, able to plan and adapt intuitively. Even the most advanced AI struggles with everyday actions, such as cleaning a room or driving a car, tasks children and teenagers can learn with ease.

The key to more advanced AI, according to LeCun, lies in ‘world models’ – systems capable of perceiving and predicting outcomes within a three-dimensional environment. These models would allow AI to form action plans without trial and error, similar to how humans quickly solve problems by envisioning the results of their actions. However, building these systems requires massive computational power, driving cloud providers to partner with AI companies.

FAIR, Meta’s research arm, has shifted its focus towards developing world models and objective-driven AI. Other labs are also pursuing this approach, with researchers such as Fei-Fei Li raising significant funding to explore the potential of world models. Despite growing interest, LeCun emphasises that significant technical challenges remain, and achieving human-level AI will likely take many years, if not a full decade.

AI platform aims to ease electrician shortage with faster tech installations

With the US facing a growing shortage of electricians, Treehouse, a startup, is using AI to help make installations of electric vehicle (EV) chargers, heat pumps, and other tech more efficient and affordable. As the demand for renewable energy and electrification surges, Treehouse has developed AI models to predict job times, materials needed, and to eliminate unnecessary site visits, which typically slow down the process. By gathering data and asking customers key questions, Treehouse can streamline quoting and installation processes, especially for simpler jobs like EV chargers.

Treehouse uses its AI-driven platform to design installations and assist in permitting, often completing jobs with minimal visits from electricians. For more complex installations, like heat pumps, the company may require additional photos or virtual visits. Treehouse works in 40 states, hiring independent electricians for many of the jobs, and plans to expand its operations across all 50 states by the end of the year. With a recent $16 million Series A funding round, the company aims to improve its AI tools and grow its team.

Founder and CEO Eric Owski believes the electrification trend will continue to reshape how consumers think about home energy, with EV chargers being just the starting point. Treehouse’s partnerships with companies like CarMax and ChargePoint also help boost its reach as it tackles the ongoing electrician shortage.

Wolfspeed’s shares surge following grant announcement

Wolfspeed is set to receive $750 million in government grants for its new silicon carbide wafer manufacturing plant in North Carolina, as announced by the US Commerce Department. This funding news caused the US chipmaker’s shares to surge over 30%. The preliminary agreement requires Wolfspeed to strengthen its balance sheet to safeguard taxpayer funds.

Investment firms, led by Apollo Global Management, have pledged an additional $750 million in financing for Wolfspeed. The company produces energy-efficient chips using silicon carbide, crucial for applications like electric vehicles and renewable energy systems. As part of a larger $6 billion expansion plan, Wolfspeed aims to increase its manufacturing capacity in Marcy, New York.

Wolfspeed anticipates up to $1 billion in cash tax refunds from the advanced manufacturing tax credit under the Chips and Science Act. CEO Gregg Lowe highlighted the significance of Wolfspeed’s products to the US economy and national security. However, the company has encountered difficulties this year, with its stock plummeting nearly 75% due to a decline in electric vehicle demand. The grant remains subject to due diligence and is not yet finalised.

Meta faces another round of layoffs affecting Threads and other teams

Meta experienced another wave of layoffs on Wednesday, affecting multiple teams, including those working on Threads, recruiting, legal operations, and design. These cuts are part of the company’s ongoing effort to reallocate resources that are aligned with its strategic goals and location strategy. According to a statement from Meta, some teams were relocated, and certain employees were shifted to new roles, while others faced job eliminations. In cases where roles were cut, Meta stated that it works to provide new opportunities for affected employees.

Text, Person, Page, Face, Head, Jiang Xindi, Andreas Hestler

While the exact number of layoffs remains unclear, social media posts and anonymous employee accounts suggest several team members were dismissed through video calls. Some of those affected received six weeks of severance pay. According to The Verge, teams from Meta’s Reality Labs, Instagram, and WhatsApp divisions were also impacted by this round of layoffs.

Why does it matter?

Meta has been undergoing significant workforce reductions following the company’s pandemic-era expansion. In 2022, the tech giant laid off 13% of its workforce—approximately 11,000 employees—with CEO Mark Zuckerberg taking responsibility for the decision. Another 10,000 employees were cut in 2023, along with the withdrawal of 5,000 open positions. These ongoing changes reflect Meta’s shift toward streamlining operations amid a challenging economic environment.

Uber and Postmates lose US Supreme Court bid in worker classification case

The US Supreme Court declined to hear an appeal from Uber Technologies Inc. and its subsidiary Postmates regarding California’s Assembly Bill 5 (AB5), effectively upholding a lower court ruling that mandates stricter worker classification standards. AB5 requires companies to classify their drivers as employees instead of independent contractors, which would significantly increase labour costs for these companies.

The Supreme Court’s decision upholds a ruling from the 9th US Circuit Court of Appeals, which determined that Uber and Postmates failed to demonstrate that AB5 unfairly targeted their services while exempting other industries. Although California voters approved Proposition 22 in 2020, allowing gig economy companies to classify drivers as independent contractors, this measure does not completely exempt them from AB5’s requirements. Recently, the California Supreme Court upheld Proposition 22, rejecting labour union claims that it violated the state constitution.

Theane Evangelis, an attorney for Uber, reiterated the company’s position, stating that Proposition 22 ensures drivers retain independence while receiving certain benefits. Critics argue that classifying workers as independent contractors allows companies to avoid providing essential protections, such as minimum wage and overtime pay. As debates over gig worker classification continue, the US Department of Labor has proposed a federal rule to tighten criteria for independent contractor status, which is also being challenged in court by business groups.

Japanese tech firms use AI to protect call centre staff

Japanese tech giants NTT Communications and SoftBank are developing AI-driven systems to support call centre employees dealing with abusive customers. NTT Communications has designed a support system that monitors interactions, providing operators with appropriate real-time responses. During a recent demonstration, the system suggested a response to a customer complaint, which was then confirmed as effective.

The technology aims to reduce the psychological stress faced by call centre staff, who often struggle to remain composed when confronted with aggressive callers. By providing quick and accurate responses, the system may also help calm upset customers, according to NTT Communications.

Meanwhile, SoftBank is working on an AI system that modifies the tone of customer voices during interactions, aiming to ease tensions. The company plans to launch this service by fiscal year 2025. These developments address the growing issue of ‘kasu-hara,’ or customer harassment, in Japan, where verbal abuse and demands for excessive apologies have led to mental health issues and job resignations among workers in service industries.