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AI export bans + Wall Street cuts

Artificial intelligence could lead to 200,000 job cuts in global banking over the next three to five years, according to Bloomberg Intelligence (BI). These reductions will mostly hit back office, middle office, and operational roles.

January 13, 2025

Hey,

After a quick break, we’re back with fresh content and a new vibe.

Here are today’s top 3 AI stories…

1: Biden’s last AI move targets China and Russia

In his final days, President Biden is tightening export controls on AI chips, aiming to limit access for China and Russia while boosting U.S. AI dominance.

The new rules

  • Tier 1: U.S. and allies have full access.

  • Tier 2: Most countries face caps, with exceptions for firms meeting U.S. standards.

  • Tier 3: Strict bans for China, Macau, and arms-embargoed nations.

Companies must keep a significant portion of computing power in the U.S., securing an edge for American AI.

Pushback from Nvidia and Industry: Nvidia warns the rules could hurt innovation and global growth. The Semiconductor Industry Association criticizes the timing, urging a more deliberate approach.

Strategic shift: The U.S. plans to leverage its AI leadership to realign global alliances, ensuring advanced technology stays within friendly nations. New limits on AI models further tighten control over sensitive tech.

As Biden exits, this move cements AI’s role in global strategy and U.S. policy.

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2: Wall Street faces job cuts as AI reshapes banking

Artificial intelligence could lead to 200,000 job cuts in global banking over the next three to five years, according to Bloomberg Intelligence (BI). These reductions will mostly hit back office, middle office, and operational roles.

Key insights

  • Job impact: AI will automate repetitive tasks but transform rather than completely eliminate many roles.

  • Affected areas: Customer service and know-your-customer duties are particularly vulnerable to automation.

  • Workforce shift: Banks like JPMorgan emphasize that AI is augmenting jobs rather than outright replacing them.

Financial upside

  • Profit boost: By 2027, banks could see profits rise 12%-17%—adding up to $180 billion—thanks to AI-driven productivity.

  • Productivity gains: Eight in ten surveyed bank leaders expect generative AI to increase productivity by at least 5%.

The bigger picture: Citi predicts the banking sector will see more automation than any other, with 54% of roles at high risk. Yet industry leaders, including JPMorgan CEO Jamie Dimon, stress that AI will enhance quality of life and transform roles rather than erode the workforce entirely.

As AI redefines banking, the challenge will be balancing technological advancements with workforce transformation.

3: Grok’s ‘Unhinged Mode’ may soon go live

Elon Musk’s chatbot, Grok, could soon introduce a controversial “Unhinged Mode,” designed to produce deliberately objectionable and offensive responses, akin to a fledgling stand-up comic.

What is ‘Unhinged Mode’?

  • Purpose: Delivers edgy, inappropriate replies, reflecting Musk’s vision of an unfiltered AI.

  • Current status: Not yet active; attempts to access it on Grok’s platform have failed.

  • Origins: Musk pitched Grok as an "anti-woke" alternative to more cautious AI like ChatGPT.

Grok’s political leanings: Despite its claims of neutrality, studies have found Grok leaning left on topics like transgender rights and diversity. Musk has blamed the bias on its internet-based training data, which he claims is “overrun with woke nonsense.”

Musk’s vision for Grok

  • Pledge: Shift Grok toward political neutrality.

  • Critics: Musk and allies, including Trump’s AI czar David Sacks, argue mainstream AI systems unfairly censor conservative viewpoints.

  • Goal: Position Grok as a bold alternative in the AI space.

Whether “Unhinged Mode” will live up to its name—or invite chaos—remains to be seen.

More news

  • Elon Musk claims AI training has exhausted human data, pushing firms like Meta and OpenAI toward synthetic data, though challenges like hallucinations remain a concern.

  • Nvidia unveiled Digits, a $3,000 personal AI supercomputer launching in May, capable of handling models with up to 200 billion parameters, revolutionizing accessibility for AI developers.

  • VLC player showcases real-time, offline AI-generated subtitles and translations in over 100 languages, enhancing accessibility without cloud reliance.

  • Las Vegas police revealed the Cybertruck explosion suspect used ChatGPT to research explosives, sparking debates on AI safety and privacy in criminal investigations.

  • Why Nvidia is betting on agentic AI use for enterprises (Fortune)

  • AI tops list of 25 fastest-growing jobs—but finance gigs aren’t far behind (Fortune)

  • Anthropic raising new money at $60 billion valuation (Axios)

  • Why I won't trust AI with my finances - yet (The I Paper)