College students are increasingly turning to AI chatbots for emotional support, prompting concern among mental health professionals. A 2025 report ranked ‘therapy and companionship’ as the top use case for generative AI, particularly among younger users.
Studies by MIT and OpenAI show that frequent AI use can lower social confidence and increase avoidance of face-to-face interaction. On campuses, digital mental health platforms now supplement counselling services, offering tools that identify at-risk students and provide basic support.
Experts warn that chatbot companionship may create emotional habits that lack grounding in reality and hinder social skill development. Counsellors advocate for educating students on safe AI use and suggest universities adopt tools that flag risky engagement patterns.
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US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.
The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.
US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.
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Citi has expanded its digital client platform, CitiDirect Commercial Banking, with new AI capabilities to improve customer service and security.
The platform now supports over half of Citi’s global commercial banking client base and handles around 2.3 million sessions.
AI features assist in fraud detection, automate customer queries, and provide real-time onboarding updates and guidance.
KYC renewals have been simplified through automated alerts and pre-filled forms, cutting effort and processing time for clients.
Live in markets including the UK, US, India, and others, the platform has received positive feedback from over 10,000 users. Citi says the enhancements are part of a broader effort to make mid-sized corporate banking faster, more innovative, and more efficient.
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Japan has pledged $5.5 billion in loans and announced an ambitious AI training programme to deepen economic ties with Africa.
At TICAD 9, Prime Minister Shigeru Ishiba proposed creating an Indian Ocean–Africa economic zone to link African nations with Asia and the Middle East.
Japan will also support training 30,000 AI experts over three years to drive digital transformation and job growth across the continent.
The initiative comes amid growing calls from leaders like António Guterres and João Lourenço to overhaul global finance systems and empower African representation.
Japan’s move signals renewed interest in African engagement, as the US scales back and China’s influence expands across the region.
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Honda has entered a multiyear partnership with US-based startup Helm.ai to enhance self-driving systems in its vehicles.
The collaboration focuses on developing advanced driver assistance for Honda’s mass market range, with a target launch set for 2027.
Helm.ai, backed by over $100 million in funding, specialises in AI camera-based perception software and simulation technologies.
Honda has held an equity stake in the firm since 2021, having invested at least $30 million to support early-stage development.
The move places Honda among major global carmakers aiming to deliver partial automation on highways and regular roads. Existing systems like GM’s SuperCruise and Tesla’s Autopilot have already pushed ahead in the driver assistance space.
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Federal Reserve Vice Chair for Supervision Michelle Bowman has warned that banks must embrace blockchain technology or risk fading into irrelevance. At the Wyoming Blockchain Symposium on 19 August, she urged banks and regulators to drop caution and embrace innovation.
Bowman highlighted tokenisation as one of the most immediate applications, enabling assets to be transferred digitally without intermediaries or physical movement.
She explained that tokenised systems could cut operational delays, reduce risks, and expand access across large and smaller banks. Regulatory alignment, she added, could accelerate tokenisation from pilots to mainstream adoption.
Fraud prevention was also a key point of her remarks. Bowman said financial institutions face growing threats from scams and identity theft, but argued blockchain could help reduce fraud.
She called for regulators to ensure frameworks support adoption rather than hinder it, framing the technology as a chance for collaboration between the industry and the Fed.
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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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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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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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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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