Double-edged sword of AI: Job creation, yet higher unemployment
Source: BizPac Review · Bias: Far Right
Summary
Op-ed views and opinions expressed are solely those of the author. As we leap into the era of artificial intelligence (AI), we feel both excitement and trepidation. […]
Double-edged sword of AI: Job creation, yet higher unemployment
Far Right
Op-ed views and opinions expressed are solely those of the author. As we leap into the era of artificial intelligence (AI), we feel both excitement and trepidation. […]
The fight that scrubbed the world's most powerful AI models from the internet featured personality clashes, industry confusion, and international backlash.Why it matters: Anthropic's models are back online, but the impact of its 20-day showdown with the Trump administration will be long lasting.Behind the scenes: It began when Amazon, Anthropic's partner and investor, sounded an alarm that was later disputed by cybersecurity experts.It warned about a "jailbreaking" issue it found with the AI lab's latest models, Mythos and Fable — meaning a technical flaw that could have caused a failure of their guardrails.Amazon flagged its concerns to the administration, triggering sweeping export controls. A U.S. official said the government conducted its own tests once it became apparent that the issue needed to be addressed.Cybersecurity experts, however, later wrote in an open letter to the administration that other leading AI models have the same issue Amazon warned about with Anthropic.On June 12, Commerce Secretary Howard Lutnick, at the direction of President Trump, called Anthropic CEO Dario Amodei. Lutnick made clear to Amodei the issue needed to be resolved fast and alerted the CEO that the company would be receiving a letter imposing sweeping export controls, the U.S. official said.Amodei called Lutnick back that night after receiving the letter, realizing it effectively meant the models would have to be taken offline — to which Lutnick responded that was indeed the goal.That decision led to a three-week, multi-agency crash course in AI safety.Anthropic deployed engineers to Washington D.C. According to a U.S. official, the company wanted to prove everything was already resolved and further changes were being fine tuned.But the federal Center for AI Standards and Innovation and the National Security Agency said those changes weren't good enough, prompting further fixes, according to the U.S. official.Gradually, various agency heads approved of the changes, and on July 1 the models were released, the official said.Out of all of the administration officials Amazon's Andy Jassy could have called, it was Treasury Secretary Scott Bessent who first heard about the jailbreaking issue found in the company report, according to a separate source familiar.Bessent was early to sound the alarm on Mythos, work with White House Chief of Staff Susie Wiles to re-engage the embattled company, and help get a cybersecurity executive order across the finish line.While technical discussions to address the jailbreaking issue took place in D.C., it was Bessent who stood next to President Trump during the G7 where allies called for global cooperation on safety standards.At the center of the showdown was Commerce Secretary Howard Lutnick, who also flanked Trump at the G7 meeting while his department's teams led technical discussions.National cyber director Sean Cairncross, the White House Office of Science and Technology Policy, Treasury Department chief information officer Sam Corcos, and the NSA also all participated in technical discussions, according to various sources.Washington mobilized faster to hold scores of meetings and pulled in far more agencies than one would expect for a single technical issue, one source said.The tension spiraled amid personality clashes and poor communication.Anthropic eventually understood that in order to be successful they needed to be on the same side as the government, the U.S. official said.As discussions turned more technical, Anthropic policy chief Sarah Heck and Anthropic co-founder Tom Brown got more involved. Brown also had multiple conversations with Lutnick and Cairncross the weekend of June 12.There was never a moment where Dario stepped offstage and someone else replaced him, one source said, adding that Brown's technical expertise allowed him to sit in a room with government specialists and go line‑by‑line through how models behave under stress.Between the lines: It remains uncertain when and how Anthropic's models will be released to ally countries around the world — which proponents say is key to beating China — or how other labs from OpenAI to Google will release their latest models.OpenAI, whose latest model GPT-5.6 is on hold, did not have visibility into discussions between Anthropic and the White House and is engaged in daily technical discussions on the release of its own model, a source said.The bottom line: There's a lot of work left to be done on a framework for approving future models with a clear inclusive process that has transparency standards and timelines, sources familiar said.
In our July Fourth special broadcast, we revisit our interview with longtime technology reporter Karen Hao, author of Empire of AI, which unveils the accruing political and economic power of artificial intelligence companies — especially Sam Altman’s OpenAI. Her reporting uncovered the exploitation of workers in Kenya, attempts to take massive amounts of freshwater from communities in Chile, along with numerous accounts of the technology’s detrimental impact on the environment. “This is an extraordinary type of AI development that is causing a lot of social, labor and environmental harms,” says Hao in an extended interview.
The Department of Labor's latest economic report revealed concerning trends despite a declining unemployment rate of 4.2%. Job creation fell sharply to just 57,000 over three months, down from 129,000 in the previous report, according to the survey released Thursday morning. CNN senior business reporter David Goldman highlighted red flags in specific sectors: nursing jobs added only 22,000 over the past year, compared to 38,000 the previous year, while hospitality hiring experienced significant decline despite multiple cities hosting World Cup games. "That is something that we need to watch," Goldman said.He noted economists expect future revisions to clarify the numbers. "I think, and there are a number of economists who are smarter than me who think, that this might change as we get those revisions in the future months, because this is kind of defying logic and defining what we can see with our own eyes," Goldman said.Watch the video below. Your browser does not support the video tag.
President, in latest AI-generated social media post, targets prominent celebrities who have spoken out against himDonald Trump on Thursday posted an AI-generated social media video portraying himself as a doctor who claims to have cured some of his most prominent celebrity critics – including Rosie O’Donnell – of the fictional condition “Trump derangement syndrome”.Outside the AI fantasy, O’Donnell said her assessment of the president remained unchanged. In a statement, she offered her own diagnosis: “He’s quite ill-and getting worse daily. The 25th amendment exists for exactly this reason. Remove. Impeach. Convict.” Continue reading...
President Donald Trump said he sees the need for some standards on artificial intelligence technology, but wants to avoid burdensome restrictions that may hamper American companies competing with China.
Today, Marta Norton, chief investment strategist at Empower, discusses the underwhelming June jobs report and that means for the Fed's next move. Then, Stuart Paul, Bloomberg Economics US and Canada economist, talks oil prices and what a permanent toll on the Strait of Hormuz would mean for oil prices. Plus, Robin Wenzel, head of the Wells Fargo Agri-Food Institute, breaks down the cost of fourth of July barbeque and where americans are feeling pinched at the grocery store. Finally, 'Bloomberg Business of Sports' co-hosts Vanessa Perdomo-Maglione and Randall Williams, discuss the United States' World Cup win over Bosnia-Herzegovina in the round of 32 and how a controversial red card may cost the US its leading scorer in the next game. (Source: Bloomberg)
