A new report has found that US business logistics costs add up to approximately 8.8% of the national gross domestic product (GDP).

The logistics industry has been through a lot over the last few years. From rampant inflation to the complex and ever-changing tariff situation, there is no shortage of problems facing the supply chain in 2025.

The best way to stay ahead is to stay informed on how the industry is progressing, and according to this new report, it’s not by much.

US Business Logistics Costs Stay the Same

According to the State of Logistics Report from the Council of Supply Chain Management Professionals (CSCMP), the US business logistics costs reached $2.58 trillion in 2025, which accounts for approximately 3% of the national GSP in the US.

This represents a near-zero percent change from 2024, with last year’s totaling $2.45 trillion, signaling a bit of stagnation when it comes to growth in that time.

The report also noted that global online retail sales are at nearly $6.3 trillion, showing promise for an eventual return to pre-pandemic numbers in the logistics business.

What Is the Current State of Logistics?

The report shows that the logistics industry has been struggling in some major ways, including “increased transit times, capacity constraints, rate volatility in ocean freight (leading to longer home package delivery times and delays), and a greater reliance from third-party logistics providers to deliver end-to-end support,” according to a press release.

“In a world defined by disruption, resilience is what ensures continuity, enabling agility and long-term durability. And as AI and automation drive down the cost of building resilient supply chains, the greater risk now lies in standing still.” – Korhan Acar, Kearney partner and lead author for the State of Logistics Report

Evolving technology and rising costs alone are enough to cause issues, and being resilient will prove to be the best way for logistics businesses to weather the storm.

Logistics Technology to Improve Your Business

If you want to be resilient, the report notes that investment in technology will be absolutely vital. AI, automation, robotics, and data analytics will be key for businesses that hope to make it out of another possible recession.

Luckily, all that doesn’t have to be too complicated. Advanced systems like fleet management software and basic tools like truck parking apps can go a long way in making the changes you need to stay competitive.

Plus, you’ve already found your way to Tech.co, which can help you stay up to date on all the logistics news that could impact your business in the long run. And there’s always the Inside Lane newsletter to get regular updates on the industry.

Microsoft isn’t done with the layoffs just yet, announcing this week that more than 300 employees in its Washington offices are also being made redundant.

Tech layoffs have become a bit too common in recent years, with advancements in AI and economic uncertainty encouraging decision makers to trim the fat at their respective businesses.

Microsoft is just one of the companies subscribing to this mentality, laying off a sizable number of employees over the last month.

Microsoft Announces Additional Layoffs in Washington

Microsoft announced this week that it would be laying off 305 employees from its Washington office. The company informed employees on Monday that their roles were no longer needed, according to data from Washington state.

While 305 employees certainly isn’t groundbreaking, it does add to growing total of layoffs for Microsoft this month. Just a few weeks ago, the company laid off approximately 3% of its workforce — about 6,000 employees — across its entire business.

Why Is Microsoft Laying Off Employees?

Microsoft isn’t the only tech company that has been laying off employees left and right over the last few years. The reasoning has ranged from “improving manager-employee ratio” to “streamlining operations,” and Microsoft is no different.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” – a Microsoft spokesperson

Still, it’s hard not to see the writing on the wall, with companies like Microsoft spending billions upon billions of dollars on AI that is — not to mince words — designed to replace human employees.

The Tech Layoff Trend

Given the economic tumult of the Trump presidency and the evolution of AI over the last few years, it’s safe to say that tech layoffs aren’t going anywhere any time soon.

In 2025, big tech has already accounted for more than 60,000 job losses, according to data from layoffs.fyi, with companies like Google, Meta, and Amazon culling employees on a troublingly consistent basis.

To make matters worse, available entry level positions continue to drop, with data from LinkedIn showing that entry level options are harder and harder to find than in previous years.

All that to say, this isn’t the first layoff announcement from a big tech firm like Microsoft, and we can guarantee that it won’t be the last.

Samsung is closing in on an extensive partnership with AI startup, Perplexity. As revealed by Bloomberg, Samsung is set to invest in Perplexity and integrate its technology into the tech giant’s devices. It’s thought that the announcement might happen as early as this year.

According to the Bloomberg report, the two companies plan to put pen to paper on a deal that would see Perplexity’s app and assistant preloaded onto future Samsung devices, as well as integrating the startup’s AI search functionality into the South Korean company’s web browser. It’s also expected that Samsung will invest heavily in Perplexity, with the AI firm hoping to raise $500 million at a $14 billion valuation.

From Apple partnering with ChatGPT to xAI teaming up with Telegram, companies across the tech sector are tapping AI businesses for potentially revolutionary new partnerships.

Samsung to Announce Deal with AI Startup Perplexity

Samsung is nearing a wide-reaching deal with Perplexity, the startup behind the eponymous AI chatbot, according to a report by Bloomberg. As per the agreement, the tech giant will significantly invest in Perplexity, while preloading its app and assistant onto future Samsung devices. It’s also expected that the startup’s search functionality will be integrated into the Samsung web browser.

The announcement is expected to land before the end of the year, with the imminent Galaxy S26 range touted as the first models to include the Perplexity assistant. That phone line is slated to arrive in the first half of 2026.

According to a source familiar with the matter, the firms have also discussed combining Perplexity’s AI technology with Bixby, Samsung’s virtual assistant. The two companies began conversations in April this year, which came to a head in recent weeks, with representatives for both businesses meeting in South Korea.

Perplexity Goes From Strength to Strength

Reportedly, the companies are considering building an “AI-infused operating system,” as well as a comprehensive “AI agents” app, which would tap into functionality from Perplexity and other AI assistants. It’s not known at this point which other assistants would be involved.

What is more clear is that Perplexity’s star is rising. The startup also has interest from Apple, which is exploring alternatives to Google Search as the Google antitrust trial continues to unfold. Recently, the search engine giant claimed that the case was harming AI progress in the US.

The startup also recently launched Perplexity Labs, a project automation service that can be used to generate basic apps and digital assets on demand. Essentially, it provides the building blocks for developing future AI agents.

Big Tech Bets Big on AI

The tech sector continues its preoccupation with AI. Recently, xAI and Telegram announced a new partnership that will see its Grok chatbot deployed in the messaging app, with the Pavel Durov-helmed company to receive a guaranteed $300 million in cash and shares, as well as 50% of any future revenue from X subscriptions made through Telegram.

Meanwhile, ChatGPT boss Sam Altman has teamed up with Sir Jony Ive, the designer of the iPhone, to deliver the “coolest piece of technology that the world will have ever seen,” while Apple have tapped Perplexity as a potential alternative to ChatGPT.

In a relatively short timeframe, AI has become the most critical battleground for tech businesses everywhere. With so much progress made since ChatGPT’s emergence in late 2022, it will be fascinating to see what the next epoch of this saga looks like.

Millions of Linux users around the world are vulnerable to password theft due to two critical local information-disclosure vulnerabilities. The Qualys Threat Research Unit (TRU) unearthed the vulnerabilities, which target core dump handlers on major Linux distributions.

The two vulnerabilities exploit race conditions that allow hackers to gain access to resulting core dumps. From there, they can target the “unix_chkpwd” process, a standard password verification component that can be found on most Linux systems. If exploited, this opens up companies around the world to wide-reaching data breaches.

The organizational impacts could be devastating, with massive breaches often signaling the death knell for a lot of companies. The discovery underscores the vital importance good cybersecurity practices – and highlights that we’re currently fighting a losing battle.

Millions of Linux User Passwords At Risk

Linux users around the world should brace for password theft, according to new findings from Qualys. The company has unveiled two critical vulnerabilities in global Linux systems, which potentially open the door for attackers to extract sensitive password data through core dump manipulation.

The IT security specialists recently disclosed two vulnerabilities that target core dump handlers on major Linux distributors. These vulnerabilities can be exploited by hackers, resulting in core dumps being compromised.

With this access, attackers can target the unix_chkpwd process, which is used to extract password hashes on most Linux systems. This would expose millions of user passwords around the world, opening businesses that use Linux operating systems up to ransomware attacks – and the grave consequences that come with them.

Vulnerabilities Target Information-Rich Core Dumps

Essentially, a core dump is a file containing a snapshot of a process’ memory when that process crashes. It’s used by developers to better understand what caused the crash, and to mitigate against it happening again. However, because core dumps often store sensitive information, they’re also a tantalizing prospect for would-be cybercriminals.

Core dumps normally have security mechanisms in place to prevent hackers from accessing them. However, the Linux vulnerabilities in question circumvent these protocols, meaning vital user data, including passwords, encryption keys, and even customer data, are totally unprotected.

Affected systems include Ubuntu 24.04 and every Ubuntu release from 16.04 onwards. Similarly, Fedora 40/41 and Red Hat Enterprise Linux 9 and 10 could be subject to exposure. Debian systems are exempt from the threat, as they don’t have core dump handlers.

Findings Point to Wider Cybersecurity Failings

The impact of these vulnerabilities could be catastrophic for businesses around the world. If exploited, hackers could gain access to millions of users’ sensitive information. With this information at their fingertips, they can hold businesses to ransom for high sums. The impacts, however, extend far beyond the financial.

Often, companies that are subject to high-profile data breaches suffer significant reputational damage. Customers lose their faith in that institution as a custodian of their personal information and take their business elsewhere. The effects can be terminal.

With such severe consequences, you would assume that companies around the world are taking their cybersecurity seriously. Shockingly, recent research indicates that that is not necessarily the case, with most businesses deserting even their most basic duties.

If the business world is to get to grips with this escalating problem, firms need to invest more time and resources into upskilling their existing employees and exploring emerging defense technologies. While it’s still in its relative infancy, AI poses a potential solution to some of the problems that we’re currently experiencing.

The job replacement debate over AI rages on, as entrepreneur Mark Cuban weighs in, stating that the technology is poised to create more companies and more jobs than it erases.

Modern iterations of AI aren’t the first technology to create stress over employment. In fact, automation has long been a threat to the career market, with innovations essentially designed to take over human jobs.

This is especially true for generative AI, though, with the technology evolving at break-neck speeds with minimal regulations, which could lead to some serious questions in the near future.

Cuban: AI Will ‘Increase Total Employment’

In a post on Bluesky, Mark Cuban gave his two cents on the AI-job replacement debate, stating that the technology is poised to improve the overall job market, rather than hamper it in the long run.

“New companies with new jobs will come from AI and increase TOTAL employment.” – Mark Cuban

Cuban made this point after noting that the job market used to be flush secretary positions, but that the evolution of scheduling technology and other automation didn’t cripple the economy, as is being predicted with AI.

Mark Cuban’s History on AI

Unlike many of the CEOs and business owners in the tech industry that have been flip-flopping and pivoting on their AI strategy, Mark Cuban has been quite consistent when it comes to his opinion on the technology.

In fact, because Cuban is so outspoken on social media, there is a huge body of content that points to his belief that AI is not only the future of the business world, but that it will actually improve the economy for everyone, including adding new jobs to the market.

“Generative AI will be the greatest growth and productivity engine, ever. We will see amazing new shit that replaces the old shit, but will cost more and we will bust ass to get it.” – Mark Cuban on X

Cuban’s optimism is certainly refreshing, especially given the fact that the rest of the tech industry has been pretty clear that hiring is very much on the way down.

Is AI Going to Create More Jobs?

AI in its current form is very much in its infancy, so it’s hard to say whether or not Cuban’s prediction will come true. As for the current situation, most research shows that jobs are, in fact, becoming more and more sparse as AI rolls out.

This week, Salesforce announced that AI was reducing engineering and customer service jobs. A recent study found that notably fewer entry level jobs are available on LinkedIn. The CEO of Foxconn admitted that AI is likely going to eliminate manufacturing jobs. And that’s just this week.

Still, as Cuban points out, he’s talking about the long term. Salesforce actually clarified and said that they plan to hire more salespeople as a result of the additional funds available from dialing back others.

Suffice to say, the evolution of AI is going to have a substantial impact on the economy. Whether it be positive or negative remains to be seen, but let’s hope that Cuban is right, for the sake of everyday people.

Software company Salesforce has said that development of AI tools is reducing its need to hire engineers and customer service workers.

Since AI has been developing at such a rapid pace, businesses have been rushing to implement it, sometimes not always for the right reasons. However, this has not always led to strong results.

Microsoft CEO Satya Nadella has said that companies should be looking at whether AI is producing value, rather than mindlessly running after it. This comes as a result of mixed results surrounding whether AI and its ability to actually make an impact on workers.

Salesforce Admits Reduction in Hiring As a Result of AI Developments

Salesforce has said that the use and development of AI tools within its company has contributed to hiring less workers. In particular, those in engineering or customer services.

The company laid off over 1,000 workers back in February to make way for AI-focused roles. Instead, Chief Financial Operations Officer Robin Washington said that 500 customer service workers would be redeployed to different roles within the company this year, in total saving them $50 million.

Likewise, the company now expects its roster of 13,000 salespeople to increase by 22% this year. This suggests slowing in hiring for some roles, but an increase in others.

Changes In Hiring Patterns Thanks To AI

In our Impact of Technology on the Workplace report, only 15% of businesses claimed to have never used AI before, compared to 34% the previous year. There have been reports of hiring patterns changing as a result.

Leaders of Alphabet and Microsoft have said that AI is producing about 30% of new code on some projects, and Meta has announced that it will be relying on a class of AI-powered engineers to carry out basic bug fixes and product improvements.

Most recently, Klarna looked to have its AI assistant doing the work of around 700 employees. However, this was previously taken back, as reports of poor customer support and dissatisfaction emerged. Since then, the company has announced its intentions to provide better, “human” support.

AI Is Generating Little Value, Admits Microsoft CEO

A few months ago, Microsoft CEO Satya Nadella said that companies should look to see if AI has any real-world value, rather than just running to keep up with the new tech.

“Suddenly productivity goes up and the economy is growing at a faster rate. When that happens, we’ll be fine as an industry.” – Satya Nadella, Microsoft CEO

We are yet to see AI have as much of an impact as Nadella is describing. In fact, there have even been reports of AI stunting productivity by giving workers more tasks, but there have also been other reports on the opposite end of the spectrum.

With companies investing a lot of money (billions, in the case of Microsoft) in AI, it is understandable that results have to be tangible.

A US federal court has blocked many of President Trump’s new tariffs. The court has issued an injunction on the executive orders that enacted these tariffs — and a trade war — that will stop any operations related to the tariff orders immediately.

The Court of International Trade has stated that the president has overstepped his powers, as he used the International Emergency Economic Powers Act (IEEPA) to justify his original actions. However, this Act doesn’t necessarily state that tariffs can be enacted as a result of its imposition.

While the announcement has caused some relief, it’s unlikely that any revoking of the tariffs will fix the damage done to the logistics industry in the past few months. Likewise, experts have warned that there are other ways that the White House can continue with their tariff operation.

US Federal Court Blocks President Trump’s Industry-Changing Tariffs

The US Court of International Trade has blocked most of President Trump’s new tariffs in a sweeping decision on Wednesday.

The Court issued an injunction on four executive orders, which had invoked various national emergencies, to enable tariffs on Canada, China and Mexico — and a 10% global baseline tariff and additional reciprocal tariffs. The injunction calls on the government to stop any tariff-related operations immediately and to issue administrative notices on the injunction within 10 days.

This has come as a result of small businesses and several US states filing petitions to halt the tariffs. When imposing the tariffs, Trump did so via IEEPA. However, these small businesses and US states have claimed putting these tariffs in place through this act oversteps presidential powers.

This caused the court to side with the plaintiffs and block the executive orders that imposed the tariffs as a result.

Lawyers of the Trump administration have already appealed the decision to the US Court of Appeals for the Federal Circuit, and now have 14 days to file additional documents supporting their case.

President Has Overstepped His Authority, Says Court of International Trade

Kush Desai, a spokesperson for the White House, has issued a statement saying: “It is not for unelected judges to decide how to properly address a national emergency.”

Trump originally set out with his tariffs on April 2nd, which saw a baseline 10% tariff on all US imports. He has since announced several more troubling figures, including an eye watering 145% US tax on Chinese imports. Recently, the President has also threatened a 50% tariff from June on all EU goods.

Trump is not the first US president to enact emergency tariffs. Richard Nixon did the same thing in 1971, imposing a 10% global tariff to address a national emergency related to the US economic position. While Trump has also invoked a national emergency — immigration crises, fentanyl trafficking, and disproportionate trade relationships — the law Nixon used is now represented by the IEEPA.

Where Trump has been caught out is in his imposition under this Act, which states a president may “regulate” international economic transactions, but doesn’t explicitly state tariffs can be imposed.

What Could Tariff Ruling Mean for the Logistics Industry?

In recent months, the news on tariffs hasn’t seemed to be going in any positive direction, despite a 90-day pause on tariffs earlier this month. This new development will contribute to the sense of uncertainty in regard to international trading, and will throw ongoing trade talks between the US and other countries into further unpredictability.

If the ruling is upheld, businesses who have had to pay tariffs will receive refunds on the amounts paid, including on any reciprocal tariffs, with interest included. While this may be a good shift for some, a lot of the damage has already been done, particularly for those in logistics.

Up-and-down freight volumes at ports could have already damaged the trucking industry, and The American Trucking Association has warned that tariffs could inflate the price of a new truck by $35,000.

Experts have pointed out that there are other avenues that Trump could use to impose his tariffs, also. Analyst Alec Phillips has stated that while the ruling represents a setback for the Trump administration, it “might not change the final outcome for most major US trading partners.”

Elon Musk’s xAI will pay Telegram $300 million to deploy its Grok chatbot on the platform, as revealed by Telegram founder Pavel Durov in a post on X on Wednesday.

According to Durov, the two companies put pen to paper on a one-year contract that will put Grok in front of the more than one billion Telegram users around the world. In addition, the company behind the messaging app will also be entitled to half of any subscription sales made through the app.

By opening up access to valuable data that could be used to train its models, the partnership gives xAI and Musk a boost in the ongoing AI race. With the US facing stern competition from China, notably the likes of DeepSeek and Manus AI, the news will be warmly welcomed by President Trump, who is determined to compete with the Eastern superpower.

xAI and Telegram Strike Up Grok Partnership

Elon Musk’s xAI startup has been handed a boost in the unfolding AI race. The company on Wednesday announced a one-year partnership with Telegram that will see its Grok chatbot deployed on the messaging platform, whose users exceed one billion.

Writing on X, Telegram founder Pavel Durov said: “This summer…users will gain access to the best AI technology on the market.” He went on to claim that “this also strengthens Telegram’s financial position,” with half of the revenue from xAI subscriptions sold via Telegram promised to the company.

Telegram exceeded one billion users in 2025, with the company also due to net $1.5 billion in a bond issue, according to reporting in the Wall Street Journal, as its goes from strength to strength. However, Durov is currently under investigation in France, where he resides, facing allegations of allowing criminal activity on the app.

Benefits Potentially Huge for Both Parties

From xAI’s point of view, the move could secure valuable data to train and develop its AI models. While the company did not respond to requests for comment, X trains models on public posts from its users, according to its privacy policy. It’s expected that the company will use Telegram data for the same purpose.

AI companies are currently facing a shortage of open-source repositories for training their models. This has prompted various firms to train their models on public interactions. In April 2025, Meta announced that it would be training its AI models on “the interactions that people have with AI at Meta, as well as public content shared by adults on Meta Products.”

At the same time, the benefits for Telegram are a little more obvious – a guaranteed $300 million in cash and shares, and a significant portion of any potential revenue that xAI makes by tapping into Telegram’s one billion+ user base.

xAI To Blow Competition Out of the Water?

Musk and xAI will hope that the vast amounts of data they’re getting access to – if this is indeed their objective – will hand them a massive boost in the AI race. As our own research indicates, ChatGPT remains the chatbot of choice for most tech businesses in the US that are using AI.

Meanwhile, in its race for global supremacy, the US is facing serious competition from China. In recent months, a series of Chinese innovations has disrupted the AI market, with examples including DeepSeek, Baidu, and Manus AI.

With his resolute determination to ward off the threat from the East, President Trump will hope that Musk’s partnership with Telegram can lay down a marker on the world stage. Musk will hope that it gives him the upper hand over his contemporaries.

AI may already be replacing some entry-level tech jobs, new research suggests. According to the study, while it’s difficult to say conclusively whether or not the technology is outright replacing job roles, tech firms recruited fewer college graduates in 2024 than they did in 2023, while the hiring of experienced professionals went up.

The researchers analyzed trends across 80 million companies and 600 million employees on LinkedIn. Their observations come off the back of similar World Economic Forum findings, in which 40% of employers intend to downsize to accommodate AI automation.

It’s unlikely that the study will come as much of a shock to figures in the tech space. With several leading companies replacing their staff with AI in recent months, it has long been felt that the writing is on the wall for those who work jobs that can be automated. Nonetheless, this growing body of evidence is unlikely to be met with enthusiasm in some quarters.

AI Already Replacing Job Roles, Study Finds

AI may already be taking over roles that were previously occupied by humans, according to new research from SignalFire. According to the State of Talent Report – 2025, big tech companies reduced the hiring of college graduates by a massive 25% compared with the previous year. Startups, meanwhile, decreased their graduate hiring by 11%.

At the same time, the hiring of seasoned professionals went up. Big tech companies increased hiring for employees with two to five years of experience by 27%, while startups increased it by 14%.

SignalFire is a data-driven VC firm that tracks the job movements of more than 80 million companies and 600 million employees. The report is informed by some of those findings. Head of Research Asher Bantock argues that there’s “convincing evidence” that AI is a key driver for the changes.

Evidence Piling Up That AI Preferred to Unskilled Hires

The SignalFire report is part of a growing body of evidence that companies are looking to AI at the expense of making new hires. In April, World Economic Forum published a survey that found that 40% of employers intend to cut staff to make room for automation. At the same time, it was reported in the New York Times last year that executives at Goldman Sachs and Morgan Stanley were considering cutting junior hires in favor of AI.

Elsewhere, tech giant Microsoft announced that about 6,000 employees were let go in a huge round of layoffs in May, with programmers among the worst affected. While it did not explicitly state that AI was the reason, the layoffs followed comments by CEO Satya Nadella in which he confirmed that around 30% of the company’s code was now written by AI.

And not long before that, Duolingo confirmed that it would stop using contractors as part of a shift towards being an “AI-first” company.

Other Research Suggests AI Is Not Silver Bullet

While there’s no disputing that, increasingly, firms are looking to AI to solve their business headaches, don’t despair yet. Evidence is also stacking up that it is not yet the silver bullet solution that many had hoped. In April, researchers at Carnegie Mellon staffed a fake company entirely with AI agents – which were only able to accomplish 24% of the tasks they were assigned.

It’s notable that Duolingo – as well as a number of other companies – have walked back their aggressive pivots to AI in recent weeks, with the likes of Klarna and Starbucks both citing the “customer experience” as the reason for their respective backtracks.

Across the business sector, companies are itching to integrate AI into their everyday operations – sometimes at the expense of properly planning out their strategies. With 58% of businesses using AI motivated by “pressure from competitors,” it’s clear that we’re seeing a lot of knee-jerk decision-making.

Businesses and employees everywhere may benefit from taking a beat before taking the plunge.

30% of data breaches that occurred last year involved a third party, new research shows. According to the Verizon 2025 Data Breach Investigations Report, during the year ended October 31, 2024, there were 15% more third-party data breaches than the previous year (15%).

Third parties include suppliers, vendors, hosting partners, and IT support providers. These are a mainstay in most businesses, and as the study demonstrates, a growing source of concern from a cybersecurity standpoint.

The report sheds light on the evolving nature of attack vectors, as hackers deploy increasingly sophisticated methods to seize confidential information. With breaches on the rise in general, and businesses failing in their duties to prevent them, the cybersecurity landscape is in a perilous position.

Data Breaches Involving Third Parties On the Rise, New Data Shows

New research from Verizon points to a startling growth in data breaches involving third parties. According to the Verizon 2025 Data Breach Investigations Report, during the year ended October 31, 2024, they comprised 30% of all data breaches – up from just 15% the previous year.

The report lists suppliers, vendors, hosting partners, and external providers of IT support as examples of third parties that custody confidential data. Most businesses outsource operations to one or more of these parties – and alarmingly, they are increasingly subject to cyberattacks.

Said a representative from Verizon:

“While, to some extent, software vendors have long played a part in unintentionally increasing the attack surface for those who use their products and services, over the last two to three years, it has moved from the occasional (and typically minor to moderate) mishap to a much more widespread and insidious problem that can (and sometimes does) have a devastating impact on enterprises.”

Other Findings Shed Light on Evolving Threat Landscape

Other key takeaways from the report include a 34% increase in attackers exploiting vulnerabilities to gain “initial access” to businesses’ IT systems and cause security breaches, as well as a massive increase in the frequency of ransomware attacks year-on-year.

While ransomware was present in 32% of data breaches in 2023, it now makes up almost half of data breaches (44%), according to the Verizon research. The report illuminates the evolving nature of attack vectors, with cybercriminals not afraid to change both their methods and targets to keep corporations guessing.

In an effort to combat the spiraling problem with third-party custodians, businesses are reportedly adopting “stricter supply chain risk management practices.” Verizon encourages businesses to vet their potential partners: “When you are working with a third party, you have to consider their security limitations as well as your own.”

Modern Businesses Under Cybersecurity Siege

Ultimately, the Verizon report paints a pretty grim picture of the current threat landscape. Not only are attacks increasing in frequency, but they’re becoming more expensive to remedy, with the annual cost of cybercrime projected to exceed $23 trillion in 2027. For many companies, the effects are disastrous.

Compounding this issue is the fact that, largely, businesses are woefully underprepared. According to research published by Tech.co earlier this year, a shocking 98% of senior leaders are unable to identify all the signs of a phishing attack, indicating that this problem is felt right across the business. Clearly, more needs to be done to upskill employees everywhere.

One potential solution for businesses could be AI. While the technology is still in its relatively infancy, there’s no doubting that it can be used to aid businesses in their fight against cybercrime. It will be interesting to see how the corporate world embraces this use case over the coming months. One thing is certain – the current situation is not sustainable.

Tariffs continue to make headlines: US President Donald Trump recently threatened a new 50% tariff on all goods from the European Union, which he now credits for the “positive” news that the EU will set a meeting to discuss a trade deal.

The 50% tariff was first set to take effect on June 1st, but this has been pushed to July 7th.

Meanwhile, businesses are adjusting to the new international duties in a variety of ways. Some are turning to a little-used customs law. Others are simply comitting criminal acts, if the rise in trade crime is any indicator.

50% EU Tariffs Are Still Coming

The announcement of the 50% tariffs, which was then toned down just a tad by the delay in implimentation, appears to be behind the change of pace in negotiations.

Trump now says that Ursula von der Leyen, the president of the European Commission, “wants to get down to serious negotiations.”

Trump’s public voice in the conversation has emerged through social media posts. First, on May 23rd, he announced plans for a 50% tariff. Then, a few days later, he again took to social media to announce the extension, saying “I agreed to the extension — July 9, 2025 — It was my privilege to do so.”

Now, he says he’s “extremely satisfied” with the pace of progress, although no deal has yet been struck.

“I was extremely satisfied with the 50% Tariff allotment on the European Union, especially since they were “slow walking (to put it mildly!), our negotiations with them. Remember, I am empowered to “SET A DEAL” for Trade into the United States if we are unable to make a deal, or are treated unfairly. I have just been informed that the E.U. has called to quickly establish meeting dates. This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America. They will BOTH be very happy, and successful, if they do!!!” –President Trump

It’s unclear what Trump means when he says that he’s “empowered to ‘set a deal'” if “we are unable to make a deal.”

The “First Sale Rule” Workaround

Meanwhile, businesses are trying a peculiar workaround for the steep new tariffs they’re facing at major trading partners like China. After losing the de minimis exemption, businesses are eager to find a new loophole. The next candidate? The “first sale rule.”

This decades-old U.S. customs regulation lets importers value a good at the lowest possible cost when calculating the duties they’ll owe on that product.

The term “first sale” refers to the inital price of the product, before it’s marked up by the middleman and eventual reaches its retail price. If a Hong Kong vendor pays $5 for a T shirt, the “first sale rule” lets them pay taxes based on that amount, even if it’s being shipped because it sold to a US retailer for double that price.

Businesses Get Creative With Tariffs

The first sale rule can save a business a lot of money, since it allows the sky-high tariffs to be calculated from a much lower starting point.

The catch? Vendors need some extra information in order to qualify for this regulation, with documentation of the first sale price being the toughest to get. Needless to say, Hong Kong vendors don’t see a reason to reveal how large their profit margins are, if there’s no benefit to themselves. Now, though, sharing that information might help them retain their heavily taxed US customers.

The regulation is entirely legal, so it at least beats the alternative: Fraud and trade crime have risen notable, according to a New York Times investigation that also notes regulatory agencies may not be equipped to deal with it, saying that “customs and Justice Department officials who have focused on trade crime have been reassigned to work on immigration and other issues in recent months.”

Duolingo CEO and cofounder Luis von Ahn just made a statement on AI tools at his company, saying that he doesn’t “see AI as replacing what our employees do.”

This view certainly appears to be a reversal of the company’s stance one week earlier, when the CEO said that the company was going to “stop using contractors” due to a major shift that would make Duolingo an “AI-first” company.

This about-face isn’t unfamiliar: Companies including Klarna, Starbucks, and others have walked back similarly aggressive pivots to AI. What’s behind this trend? Public backlash, failures to deliver, or something else entirely?

Why Duolingo Says It’s Still Hiring at the Same Pace

For weeks, Duolingo has been making noise about the benefits of AI. That’s no surprise to anyone following its 2025 hiring practices: The educational technology company laid off 10% of its workforce in January, saying it was phasing out human-led translation, to replace it with AI tools.

Most recently, however, Duolingo made its most AI-positive move yet, saying a week ago that it would “gradually stop using contractors to do work AI can handle” and it was committing to being “AI-first” as a company. 

Now, though, the company is walking back these comments. The company CEO explained in a LinkedIn statement.

“To be clear: I do not see AI as replacing what our employees do (we are in fact continuing to hire at the same speed as before). I see it as a tool to accelerate what we do, at the same or better level of quality.” – Duolingo CEO Luis von Ahn

The CEO also highlighted the “rigorous standards” that all AI-generated content would be held to.

It all seems to be a reversal, given that the company said it was going to “stop using contractors” and is now saying that it is “continuing to hire at the same speed.” It’s possible that the hiring refers to payrolled rather than contract workers. However, Duolingo is far from the only business to reverse course on AI replacement.

Why Klarna Is Backtracking

The Swedish buy-now-pay-later fintech company Klarna has also waffled on AI tools in a public manner. CEO Sebastian Siemiatkowski is a huge AI proponent: Just this week, he used an AI avatar of himself to deliver part of the company earnings call.

Earlier in the month, Siemiatkowski told CNBC that AI had helped the company “streamline its workforce by ~40%” and that the company had shrunk from “about 5,000 to now almost 3,000 employees.” Those cuts included 700 customer service workers… which the company now regrets cutting.

Recent statements from Siemiatkowski include:

• “I just think it’s so critical that you are clear to your customer that there will be always a human if you want.”
• “As cost unfortunately seems to have been a too predominant evaluation factor when organizing this, what you end up having is lower quality.”
• “Really investing in the quality of the human support is the way of the future for us.”

Why turn from promoting AI to highlighting the value of human contributions? Possibly to boost valuations before Klarna IPOs. The company was worth $45.6 billion in 2021, which has now dropped to $6.7 billion today. The company’s dramatic workforce reductions began in 2022, so investors may have concerns that AI hasn’t been able to maintain value as well as Siemiatkowski expected.

Why Starbucks Stopped Replacing Workers With AI

In an investor call earlier this month, the Starbucks CEO put it plainly.

“What we’re discovering is the equipment doesn’t solve the customer experience that we need to provide, but rather staffing the stores and deploying with this technology behind it does.” – Starbucks CEO Brian Niccol

The company had been “removing labor from stores” over the last few years, assuming that the tech could fill the lack of workers. Now, Niccol says, “what we’re finding is that wasn’t an accurate assumption with what played out.”

It’s about as straightforward as any CEO is likely to get: Across the last two or three years, many big bets on AI haven’t paid off as well as they would have liked.

What’s Behind All the AI Pivot Reversals?

It may not be possible to break down a massive, multi-industry shift towards and back away from AI. If you were to try, however, these are likely a few of the top reasons that you might come up with.

All for PR?

One reason might be that a given company’s entire announcement and reversal was always more of a PR move than a business one.

Duolingo is a social media marketing heavyweight. A recent Link in Bio survey of social media professionals ranked it number one for “great social,” and the brand is constantly earning headlines about odd stuff like how its owl mascot has just come back from the dead. And Duolingo definitely earned plenty of social media attention with the initial announcement, posted on the suprisingly buzzy LinkedIn platform, and they seem set to get more attention with their change of mind.

Backlash proved too much?

Part of rapid adaptation is knowing when to pivot again, and customer backlash is a big reason to do just that. Plenty of customers are anti-AI for a host of reasons. Some hate the copyright violations that companies like OpenAI say are essentially inevitable, while others hate the errors that chatbots constantly churn out or note the increasing energy costs are harming the environment.

But the main reason is the impact on the labor market: Inflation and the nearing recession are already squeezing workers, so the threat of AI taking their jobs is particularly stinging.

Learning pains?

The most measured reason why a company might make a big change and then walk it back: They bit off more than they could chew. Dramatic shifts in direction are tough, since they require unfamilar practices. The backtracking could be a natural result of the new technology.

Klarna’s failures to keep up with customer service requirements emerged due to their AI reliance, so the company has learned a lesson and will likely move forward with a better balance of AI to human workers. Starbucks seems to be saying the same.

AI Adaption Remains a Huge Movement

Ultimately, the drive behind AI adaption is still huge: Saving money and surpressing the labor market are both great ways to grow a company.

Klarna, Starbucks, and Duolingo are admitting that AI can’t do everything, but their actions over the last few years indicate that they’re still interested in getting AI to do as much as possible. That’s unlikely to change, even if they are constantly admitting they’ve gone too far.

These companies, along with the rest of the corporate world, are committed to the efficency benefits of AI. They still have a lot to learn about the limits of those benefits, however, and they’ll be slowly learning more and more about what AI still can’t do for years to come.

The green movement is no longer a priority in the logistics industry, with a recent Tech.co survey showing that business owners aren’t focused on sustainability at the moment.

In 2025, the logistics industry is fending off problems left and right. From the stress of tariffs to the looming trucker shortage, the economics of being a logistics business owner are far from relaxing.

As a result, the focus on going green has taken a back seat to more pressing matters, like vehicle upkeep, financial stability, and staffing.

Survey Shows Sustainability Not a Priority

In a recent survey from Tech.co, logistics professionals were asked to list out their priorities as a business. Unfortunately, going green fell pretty far down the list, with only 7% of respondents stating that “sustainability initiatives” were a priority for the business in the near future.

Of those that are focusing on sustainability, the priority still lies in creating green solutions that can also save businesses money, including reducing idling time and trialing electric vehicles.

Alternatively, more expensive and less lucrative sustainability initiatives, like building electric vehicle infrastructure, participating in carbon offsets, and trialing alternative fuels, are receiving far less attention.

What Are Logistics Professionals Prioritizing?

If logistics professional aren’t prioritizing sustainability and green initiatives, then what exactly are they focusing on in 2025? As our survey shows, priorities in the logistics industry are a lot more reactionary than preventative.

23% of respondents said that vehicle upkeep is their top priority, with management financial pressure (21%) and staffing retention and recruiting (15%), and adopting new technology (14%) rounding out the top four.

Given the fact that the trucker shortage is a persistent issue, AI continues to reshape the business world, and tariffs are creating more and more financial strife for logistics businesses, it’s understandable that business owners are moving away from sustainability initiatives in favor of financial stability.

Businesses That Are Prioritizing Sustainability

While our survey found that going green isn’t as much of a priority for the majority of businesses, that doesn’t mean that there aren’t companies out there that still valuable sustainability. In fact, we recently showcased a few sustainable startups that are leading the way when it comes to innovation in environmentalism.

PulpaTronics is a great example, with the company produce chip-free, paper-only iteration of an RFID tag (radio frequency identification) that can cut down on the metal required for previous models.

“We wanted to build something for and with nature in mind, so we dove into emerging technology research and looked into pressing environmental issues and realized that we could make a big difference in reducing single-use electronic waste.” – Chloe So

Simply put, there is still a market for logistics businesses that want to go green, but in these tumultuous economic times, prioritizing other facets of your business is not something to be shamed for.

The power of the president’s tweets is unmatched, with a single post threatening to put a 25% tariff on Apple products tanking the company’s stock.

It’s no secret: President Trump wants to Apple to make iPhones in the US. Unfortunately, trade discussions have not gone his way, which is why he took to social media in hopes of putting on the pressure.

Well, the pressure is on, with the Truth Social post almost immediately causing Apple stock to drop.

Trump Threatens Apple With Tariffs

Where else but on social media would President Trump announce his possible plans to put a 25% tariffs on Apple if that company doesn’t start manufacturing its many devices — including the popular iPhone — in the US.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!” – President Trump on Truth Social

Trump also announced a blanket 50% tariff on all imports from the EU, so clearly the president is serious about making this whole “made in America” thing a reality.

Apple Stock Drops in Response to Tariff Threat

Tariffs have been putting a squeeze on a lot of companies over the last few months, and Apple has been no different.

As a result of the tariff threat from Trump, Apple stock fell 3%, which represents an approximate loss of $100 billion for the tech company.

Apple wasn’t the only company that felt the brunt of the tariff threat either. On Friday, broader markets like the S&P saw a 1% dip, with virtually the entire tech industry seeing a drop just before the weekend.

Is Building iPhones in the US a Possibility?

With Trump fighting tooth and nail to get iPhone production back in the old US of A, it’s worth asking: Is this kind of trade deal even possible?

In all likelihood, no. Apple has been investing heavily in China manufacturing over the last few decades, and with tariffs hitting the country more than most, Apple has made a concerted effort to build manufacturing plants in India instead, not the US.

Economists have also noted that the cost associated with building iPhones in the US would make the popular smartphone substantially more expensive, with some estimates as high as $3,500 per device.

Suffice to say, Trump has an uphill battle when it comes to getting Apple to start manufacturing in the US, but we know he rarely shies away from this kind of fight.

The tariffs are hitting TikTok, with the popular social media platform informing US ecommerce employees that there would be a number of “personnel changes” in response to lower than expected sales in 2025.

It’s been a few months since President Trump announced his tariffs, which have noticeably rocked the boat for businesses around the world. From large corporations to small startups, the economic impact has been nothing if not substantial.

China-based TikTok has been particularly vulnerable to the tariff tumult, and it appears to be impacting its ability to keep its employees, well, employed.

TikTok Is Laying Off US Ecommerce Employees

According to an internal memo reported on by Bloomberg, the social media giant is making some “organizational and personnel changes” to its TikTok Shop division in the US.

The number of employees that are set to be laid off has not been disclosed nor reported on.

“We have undergone careful analysis of how to create more efficient operating models for the team’s long-term growth and, as a result, will be communicating organizational and personnel changes to the e-Commerce US operations, US operations center, and global key accounts teams.” – Mu Qing, ecommerce executive at TikTok

US TikTok employees in the ecommerce division were asked to work from home on Wednesday “to best facilitate these conversations.”

Why Is TikTok Laying Off US Employees?

The memo, obtained by Business Insider, is quite brief considering the information within, but it’s safe to assume that the driving force behind these layoffs is the struggling sales of the TikTok Shop in the US.

So what’s causing the low sales in the TikTok shop? Well, given the fact that the US TikTok Shop features a wide range of foreign sellers based in China selling to US consumers, the tariffs have created enough economic strife to dissuade them from taking part.

The sales slump has been quite serious, with US TikTok Shop revenue from foreign sales down between 20-25%, which is likely what lead to these layoffs.

Trump Tariffs and Corporate Layoffs

TikTok is the not first nor will it be the last company with US operations to lay off employees in response to the tariffs. In fact, there are already some companies hedging their bets assuming that there is no end in sight to this trade war.

Walmart, for example, announced this week that it would be laying off 1,500 employees, on top of raising prices, even after President Trump insisted the company “eat the tariffs” to shore up economic stability.

Suffice to say, these tariffs are going to continue to have a negative impact on businesses for the foreseeable future, and mass layoffs remain the most common consequences.

Sigh of relief? Calm before the storm? Those are among the questions supply chain and logistics leaders are contending with as they face reduced China tariffs over the next two and a half months.

This month, the U.S. and China agreed to lower tariffs on imported goods from China to 30%, down from 145% enacted in April. The lower tariffs are in effect for 90 days as the two countries work to hammer out a deal.

What does the pause mean for global supply chains and domestic trucking companies? We spoke to logistics experts to find out.

The Previous Impact of the Tariffs

Ahead of the 145% tariffs on imports from China, businesses ramped up orders in hopes that freight would arrive to the U.S. before higher duties took effect. At the Port of Los Angeles, loaded imports rose 5% year over year in April, and the Port of Long Beach saw a 15% jump in loaded imports that month. But that quickly reversed course as the high tariffs came into force. Inbound shipments to the Port of Los Angeles dropped 30% in early May.

The up and down of freight volumes at the ports affects not only drayage trucking firms but also fleets transporting freight inland to their next destination in the supply chain. When volumes are up, there’s more business, but also more port congestion and a need for greater capacity. But when volumes plummet, the results can devastate the trucking industry.

“Businesses built around drayage, port and cross-border freight now face closures,” Jeff Hickson, manager of capacity at 3PL RJ Logistics, told The Inside Lane.

In a Tech.co survey conducted before the pause was announced, 77% of companies said the tariffs had caused at least some degree of change in their operations.

The tariffs compound with a long enduring freight recession that the U.S. trucking industry has been experiencing.

“Tariffs on America’s trade partners have the potential to inhibit the recovery from a freight recession that has been acutely felt by America’s small-business truckers,” a spokesperson for the Owner-Operator Independent Drivers Association

The 145% duty was also a big financial headwind for some importers. Jennifer Coulter-Lissman, president and CEO of NTG Supply Chain Solutions, recalled a client who had to pay an additional $2 million just in the month of April due to the increased duties.

How are Shippers Reacting to the 90-Day Pause?

Some businesses breathed a sigh of relief upon learning that the high tariff rate had been paused for 90 days, but others felt the situation was almost worse, putting them on edge and adding to the uncertainty that has surrounded global trade for the past several months.

“There’s still such a level of unpredictability. Our client base has said, ‘it’s nice, but what’s next?’” – Coulter-Lissman, president and CEO of NTG Supply Chain Solutions

Coulter-Lissman said retailers are treating the temporary tariff reduction like goods being on clearance. They’re ordering as much as possible and stocking up on inventory now at a lower duty rate, leading to a surge of freight coming into the U.S.

In fact, in the week that the U.S. and China agreed to pause tariffs, bookings on container ships from China to the U.S. doubled over the previous week.

Jonathan Hughes, national managing principal of management consulting at advisory firm BDO USA, said shippers are looking even more carefully at scenario planning. They’re assigning probabilities to the likelihoods of various scenarios three, six and 12 months out, and analyzing the costs and benefits of each of those to make decisions about their supply chains.

What’s the Ripple Effect on Freight, Ports and Trucking?

Hughes described the supply chain like a water balloon – when there’s pressure on one part, the water shifts from one area to another. That same scenario is playing out now, with demand spikes from importers rippling to container shipping, U.S. ports and eventually trucking.

“You’ve got that likely significant bottleneck impact in logistics, from shipping all the way through trucking,” Hughes said.

Ocean carriers are readjusting their capacity in light of the tariff pause and an uptick in new bookings. Before, with the higher tariff rate, carriers had shifted some of their empty containers and vessels to other lanes as China-U.S. demand dropped, according to Judah Levine, head of research at Freightos.

“So while those are being moved back into position, there may also be some capacity restraints that could also contribute to upward pressure on freight rates together with increased demand,” Levine said.

Levine said ocean carriers already announced rate increases of as much as $3,000 per container.

“Rates are very likely to increase significantly soon as demand picks up,”  – Judah Levine, head of research at Freightos

Peak season in ocean shipping typically begins in July, but Coulter-Lissman sees ocean lines “taking advantage of the surge” and implementing peak season surcharges earlier, starting June 1.

Once those ships from China begin arriving to U.S. West Coast ports, Coulter-Lissman expects “pretty heavy congestion,” which could create equipment issues for trucking companies, such as an imbalance or shortage of chassis.

Jim McCullen, chief technology officer at Century Supply Chain Solutions, said short-haul carriers may need to increase their capacity without much notice nor time to plan. Port drayage lanes could be strained as volume and demand suddenly surge.

Overall, McCullen anticipates a short-term volume spike for ports and logistics, “but it’s a false peak.”

While the 90-day pause could temporarily help by bringing in volume and more business, it distorts the ability to plan capacity longer term.

“Trucking companies risk overcommitting resources if they treat this like sustainable growth,” McCullen said.

The pause only adds to the uncertainty transport leaders have felt since the imposition of higher China tariffs. The Tech.co survey revealed logistics companies were split on whether to anticipate reduced demand, with 40% preparing for lower demand, but 39% not preparing, and the remaining 21% responding, “I’m not sure.”

Check our guide to the Logistics Industry statistics for 2025 you need to know

What Should Trucking Firms do to Navigate this Uncertain Period?

McCullen advised that trucking firms remain aware that the short-term boost in freight may not indicate longer-term trends in volume.

“This is not the time to scale—it’s the time to optimize,” he said.

His tips for fleets:

• Watch your margins.
• Lock in your most reliable lanes.
• Prioritize shippers with predictable flows. 
• Strengthen upstream visibility. Coordinate closely with origin cargo managers to understand what’s coming—not just what’s landed. 
• Be proactive. By the time cargo hits the port, it’s already too late to reroute efficiently.

The fleets that don’t use these strategies “will be scrambling to correct overextensions made during the rush,” McCullen said.

Hickson similarly advised building relationships rather than chasing dollars. Small business trucking firms, in particular, could align with a broker that offers more consistent volume and stability on critical lanes.

“Strong partnerships, not short-term gains, are what sustain success through market cycles,” Hickson said.

What Happens When the 90-Day Tariff Pause is Up?

It’s anyone’s guess what will happen on the trade policy front once the China tariff pause ends. One possibility is that the pause and lower tariff rate could be extended. That could result in importers slowing their purchase orders to more normalized levels, and thereby moderating freight volumes for truckers, McCullen said.

Another scenario is that the trade negotiations don’t yield progress and the tariffs spike back up to 145%. That could lead to port volumes falling quickly and sharply after the pause.

“For trucking, that means feast and famine: overbooked weeks now, idle chassis later,” McCullen said. “Trucking will feel the hangover from this artificial surge.”

The overall volatility and unpredictability around tariffs will also drive business leaders to rethink their supply chain strategies. Moving entirely out of China is unlikely, as many suppliers and industries are now concentrated there, and the country has developed a ”very large and highly skilled manufacturing workforce,” Hughes said.

But since the first Trump administration and ensuing tariffs, companies have worked on diversifying their supplier network, shifting to places such as India, Vietnam and other locations in Southeast Asia. Costs have been rising in China irrespective of tariffs, Hughes said, and importers have sought options to reduce reliance on China.

For now, businesses in all aspects of the supply chain have to focus on what they know is true and do their best to employ strategies that make them agile and resilient, Hughes said.

“It’s just a lot of shaking that crystal ball,” Coulter-Lissman said. “It’s too hard to see into the future of this administration.”

Most chatbots can be easily tricked into providing dangerous information, according to a new report from arXiv. The study found that so-called “dark LLMs” – AI models that have either been designed without safety guardrails, or models that have been “jailbroken” – are on the rise.

When large language models (LLMs) are trained, they are fed massive volumes of information from the internet, which includes content that could be considered dangerous. Traditional chatbots have built-in safety controls that prevent the programs from sharing this information when prompted by user questions. However, the researchers identified a growing trend of people circumventing these controls – and designing chatbots without them entirely.

With a growing number of companies replacing their employees with AI, these findings should serve as a note of caution on the perils of automation.

Most Chatbots Are Vulnerable to Exploitation, New Study Reveals

Most chatbots can be easily jailbroken and tricked into providing dangerous information to users, according to a new study from researchers at Ben Gurion University of the Negev. Professor Lior Rokach and Dr Michael Fire published the findings in arXiv, which also observe a worrying rise in AI models that are designed without standard safety guardrails.

When LLMs are trained, they are fed vast amounts of information from the internet. This includes information that could be considered dangerous, such as instructions on how to make a bomb, commit insider trading, and more. To stop the models from sharing this with users, they are designed with built-in safety controls.

However, the researchers identified a concerning rise in cases of people overriding these safety controls, with some even advertising new chatbots with “no ethical guardrails” online. They warned “what was once restricted to state actors or organized crime groups may soon be in the hands of anyone with a laptop or even a mobile phone.” Inevitably, this will give rise to an increasing number of AI-related controversies.

Researchers Identify Growing Trend of Chatbot Manipulation

Commonly, jailbreaking relies upon meticulous prompting to trick chatbots into providing responses that override their programming. All AI models have a primary and secondary goal – to follow the user’s instructions and avoid sharing information that is deemed to be harmful, biased, unethical, or illegal. Jailbreaking works by getting in between those two goals.

During their research, Rokach and Fire discovered a “universal jailbreak attack” that is able to exploit multiple leading AI chatbots. This allowed them to generate responses that would normally be refused, including how to hack computer networks or make drugs. Fire remarked: “It was shocking to see what this system of knowledge consists of.”

The researchers took their findings to several leading chatbot providers, but claimed that their responses were “often inadequate.” Alarmingly, many of the LLMs in question were still vulnerable to the attack seven months on from its discovery, with the original findings published online in late 2024.

Findings Should Serve as Warning to Businesses

Ultimately, the research reveals some disconcerting truths. Firstly, AI chatbots are vulnerable to exploitation, and therefore pose a tangible risk to users and society at large. With model training becoming more accessible, and open-source LLMs proliferating, this problem will only get worse.

Perhaps more concerningly, LLM vendors are largely failing in their duties to safeguard users from dangerous information. Launched in December 2024, OpenAI’s o1 model can reason about the company’s safety policies, which hypothetically makes it less vulnerable to exploitation. But other companies are simply not doing enough.

As more and more businesses cut staff and invest hundreds of thousands of dollars into AI, these findings should serve as a stark warning – at present, AI models are not always the silver bullet that many people seem to think.

The chair of Taiwanese technology company Foxconn claimed that developments in generative artificial intelligence (AI) and robots could lead to the end of low-end manufacturing jobs, during a keynote address in Taipei.

Foxconn is already a big advocate of the technology, having implemented it into its own production systems, and is looking to invest in it further with a new AI data center with NVIDIA and their own manufacturing-centric model.

At the moment, we’ve seen our fair share of AI failures in the workplace. Recently, tech giant Klarna announced it will be re-hiring humans after an AI-fueled layoff period, due to the technology not performing as expected. Whether AI is currently equipped to have a positive impact on the workplace is still up for debate.

Foxconn Chair Predicts End to Manufacturing Jobs

The Chair of Foxconn, a Taiwanese electronics contract manufacturer, has claimed that generative AI and robotics will remove the need for low-end manufacturing jobs. The claim was made by Young Liu during a keynote address at the Computex conference in Taiwan.

Liu theorized that rich nations will have to rely less on immigration and low-GDP countries to keep manufactured goods low in price, because of immigration becoming a political issue and low-GDP countries running out. To fill this void, manufacturing will turn to AI and robotics.

Liu then went on to highlight how Foxconn have been successfully using AI and robotics thus far, in particular, emphasizing the company’s ability to build robots with other robots.

Foxconn Is Already a Generative AI Advocate

Likewise, Liu did not shy away from sharing Foxconn’s successes with generative AI. In his address, he noted that software alone, after being applied with AI, can do 80% of the work required to set up equipment for a new production run. It also does so faster than people. However, the AI can struggle without human assistance.

“We thought maybe we could replace every human. We quickly realized we could not.” – Young Liu

Not only does Foxconn already have its own gAI in place, but it doesn’t appear to be slowing down in implementing more. In fact, Liu announced that the company has now turned its attention to a manufacturing-centric model that will blend Meta’s Llama 3 and 4 models and data from Foxconn’s own operations, called “FoxBrain.”

Foxconn has also recently announced a new AI data center that it is building with NVIDIA, the world’s largest semiconductor company.

AI, The Next Powerhouse of the Workforce?

You can’t blame anyone for being skeptical about the impact of AI, particularly because of surveys reporting that most of the time, companies are too scared about what will happen if they don’t implement AI. So much so, executives think about it more than whether the technology will have a tangible impact on their company.

Where AI has been implemented, results have been mixed. There are reports of AI creating more work for employees rather than saving them time, and of companies made entirely of AI agents being complete disasters.

Despite these reports, companies such as Microsoft are still insisting that AI agents are the future employees. While low-end manufacturing jobs could be at risk if they are easily automated, AI has proven limited in sectors where it was expected to thrive in before, so nothing can be predicted currently.

Fintech company Klarna, known for its “buy now, pay later” services, is going back on its decision to replace human workers with Artificial Intelligence (AI). The company has previously claimed that its AI assistant was completing the work of 700 employees.

CEO Sebastian Siemiatkowski has claimed that the move doesn’t signal a reversal on AI, but rather a shift in priorities as the company focuses on providing high-quality and human customer support. The CEO has praised AI in the past and claimed that it has the ability to take all jobs, including his own.

The reversal suggests that AI technology is yet to compete with the nuance and emotional capabilities of human workers, particularly in cases such as customer service, where a sense of empathy is needed.

Fintech Giant Klarna Goes Back on AI Replacements for Customer Service Jobs

Swedish fintech company Klarna is reversing a decision to replace human workers with Artificial Intelligence (AI), within its customer services. The company previously partnered with OpenAI in order to improve overall efficiency and reduce costs.

Klarna’s AI shift began in 2022, when it laid off around 700 employees to make way for the new technology, cutting about 10% of its workforce. By February 2024, the company claimed its AI assistant had taken on 75% of customer chats, accounting for about 2.3 million conversations in more than 35 different languages.

However, following reports of customer dissatisfaction and poor quality support, Klarna is now inviting humans to return to the company. They are looking to hire remote customer service roles, in particular, targeting students, rural populations, and dedicated Klarna users.

Lack of Payoff Following AI Replacement Workers

Klarna CEO Sebastian Siemiatkowski has been quick to praise AI in the past, and has previously claimed that AI has the ability to take everyone’s job, including his own. However, this doesn’t seem to be the case as the CEO told Bloomberg that Klarna’s AI-focused path of the past few years wasn’t the right one.

Siemiatkowski claims that the decision to bring back human workers comes from the discovery that, most of the time, humans would rather speak to other humans.

“From a brand perspective… I just think it’s so critical that you are clear to your customer that there will always be a human if you want.” Klarna CEO, Sebastian Siemiatkowski.

Siemiatkowski continued to say to Bloomberg that the “quality of human support” is now the focus of the company, suggesting that perhaps AI was not able to deliver in this regard.

Is AI Ready to Enter The Workplace as Support Agents?

A previous study of AI vs. human judges in courtrooms found that the AI made decisions purely based on legal precedent, rather than considering the emotional elements of a case. While not entirely the same environment as customer service, there is still a sense of emotional responsibility and support that needs to be offered to customers who are in distress.

There is, therefore, the possibility that AI has not yet developed enough in this field. While it is inviting human workers back into the company, Klarna has claimed that the move doesn’t signal an entire reversal on AI itself:

“The pilot reflects a dual-track approach – combining scalable AI with high-quality human support – not a step back from automation.” Klarna

As a result, the company’s new setup could be similar to the one outlined in Microsoft’s recent Frontier Firm report, which predicts a future of companies with humans and AI agents working alongside each other.

China is levying a new 75% tax on US imports of polyformaldehyde copolymers, a thermoplastic that’s crucial for certain engineering needs.

This new tax will be imposed despite the current 90-day tariff pause between the US and China — the new duty is not a part of the previously announced reciprocal tariffs that are being paused, but it’s potentially signalling a continued escalation of the tariff battle between the two world powers.

That’s far from all the tariff news out in the last few days. Canada’s finance minister is pushing back against a new report claiming that the nation has paused its own countertariffs against the US, while the US government has just yesterday reaffirmed its plan to reinstate the majority of the reciprocal tariffs that it has paused for dozens of countries.

What to Know About China’s New Plastic Tax

China’s new 75% duties will apply to polyformaldehyde copolymers that originate from the US, although several other countries will face lower versions of the same tax: Duties on the European Union, Taiwan, and Japan for imports of the same material will range between 32.6% and 35.5%.

All of these duties are effective as of May 19, and will last for five years.

The goal is to reduce the amounts being dumped on the market, according to the Ministry of Commerce. As reported by the South China Morning Post, the Ministry of Commerce states it has concluded that these imports were “being dumped on the Chinese market, causing substantial damage to the domestic industry, and that there was a causal relationship between the dumping and the material injury.”

The US Will Reinstate Tariffs for Most Countries

US Treasury Secretary Scott Bessent gave multiple interviews on Sunday, May 18, to clarify that the US plans to reinstate the currently paused reciprocal tariffs for all the countries that it doesn’t reach a new deal with.

Bessent told CNN on Sunday that the US is most focused on cutting deals with “18 important trading partners,” while citing “probably another 20 strong relationships.” All paused tariffs are set to be cancelled on July 9th.

The 90-day tariff pause between the US and China applies to the countertariffs recently issued by both countries, and it leaves a base 10% tariff on US imports to China and around a 30% tax on China imports to the US.

Canada’s Finance Minister Says 70% of US Countertariffs Are Still in Effect

Meanwhile, Canada’s minister of finance Francois-Philippe Champagne has responded to claims from a research firm that suggest the nation has quietly dropped its US-focused countertariffs to “nearly zero.” The report is not true, Champagne says, and he’s not being quiet about it, either.

“More of the same falsehoods,” Champagne said in a social media post. “To retaliate against U.S. tariffs, Canada launched largest-ever response — including $60B of tariffs on end-use goods. 70% of those tariffs are still in place. We temporarily and publicly paused tariffs on goods for health & public safety reasons.”

These tariffs are still in effect for US goods valued at tens of billions of dollars, despite some April 15 exemptions aimed at delivering a reprieve to any US automakers willing to keep their existing Canadian production plants in operation.

Employees can save an average of 3% of their time by using AI chatbots, according to a new study.

If that doesn’t sound like a lot to you, the study agrees: It says that the AI-powered boosts in time saved and the wages earned all added up to deliver “no significant impact” for any occupation that was researched.

It’s a finding that hints at a potential collapse of the generative AI bubble, though likely not one that will comfort any of the hundreds of thousands of tech workers who have been laid off in recent years due to (at least in part) the hope of AI replacements.

3% More Time Saved and 3-7% Higher Pay

The research paper is out from the National Bureau of Economic Research, which examined the link between AI use and corporate records in Denmark.

The paper’s authors, assistant professor of economics at the University of Chicago Anders Humlum and economics PhD student at the University of Copenhagen Emilie Vestergaard, picked Denmark because the country’s AI adoption rate and hiring practices are comparable to the US, but it has better record-keeping. According to a Fortune article covering the report, the paper examined 25,000 workers across 7,000 workspaces within an impressive range of occupations, including software developers, IT support specialists, accountants, and many others.

The big takeaway? AI chatbots did help workers, but not by much. In addition to the 3% time savings, employees saw between 3% and 7% increases in pay thanks to chatbot use.

“AI chatbots are now widespread—most employers encourage their use, many deploy in-house models, and training initiatives are common. These firm-led investments boost adoption, narrow demographic gaps in take-up, enhance workplace utility, and create new job tasks. Yet, despite substantial investments, economic impacts remain minimal.” -the abstract

Perhaps AI Can Replace 3% of a Worker?

A 3% time savings might seem to indicate a benefit when stretched out to an international corporation. However, the remaining 97% of specialized work that each workers contributes is less likely to be replicatable by a chatbot: It might be able to speed up the writing of a thank you email, but it can’t catch a math error in an accountant’s monthly bank reconciliation.

In short, the study serves as a strong indicator that AI chatbots are not able to save a worker so much time that a business can reduce its headcount as a result. 

Is Generative AI a Bubble?

Over the past couple of years, AI has been an incredibly quickly adopted technology, earning untold billions of dollars in investments while driving news cycles on everything from government regulation to college cheating scandals. Now, agentic AI, the next evolution of the chatbot, is getting tech executives everywhere excited about savings potential.

However, part of the downside of that speedy rollout is that we have yet to see AI tools fully deliver on the many promises that have helped spur the rapid adoption. Now, large-scale studies like the National Bureau of Economic Research are emerging, and indicating that AI chatbots cannot live up to the hype.

Perhaps agentic AI will prove to offer a far greater value than chatbots. Until then, though, we may want to keep 100% of our human staffers around.