Category: 3. Business

Organizations have long viewed artificial intelligence as a way to achieve productivity gains. But recent research about AI adoption at U.S. manufacturing firms reveals a more nuanced reality: AI introduction frequently leads to a measurable but temporary decline in performance followed by stronger growth output, revenue, and employment.

This phenomenon, which follows a “J-curve” trajectory, helps explain why the economic impact of AI has been underwhelming at times despite its transformative potential.

“AI isn’t plug-and-play,” said University of Toronto professor Kristina McElheran, a digital fellow at the MIT Initiative on the Digital Economy and one of the lead authors of the new paper “The Rise of Industrial AI in America: Microfoundations of the Productivity J-Curve(s).” “It requires systemic change, and that process introduces friction, particularly for established firms.” 

University of Colorado Boulder professor Mu-Jeung Yang; Zachary Kroff, formerly with the U.S. Census Bureau and currently an analytics specialist at Analysis Group; and Stanford University professor Erik Brynjolfsson, PhD ’91, co-authored the report.

Working with data from two U.S. Census Bureau surveys covering tens of thousands of manufacturing companies in 2017 and 2021, the researchers found that the AI adoption J-curve varied among businesses that had adopted AI technologies with industrial applications. Short-term losses were greater in older, more established companies. Evidence on young firms showed that losses can be mitigated by certain business strategies. And despite early losses, early AI adopters showed stronger growth over time. 

Here’s a look at what the study indicates about the adoption and application of AI, and the types of firms that outperform others in using new technology. 

1. AI adoption initially reduces productivity.

The study shows that AI adoption tends to hinder productivity in the short term, with firms experiencing a measurable decline in productivity after they begin using AI technologies.  

Even after controlling for size, age, capital stock, IT infrastructure, and other factors, the researchers found that organizations that adopted AI for business functions saw a drop in productivity of 1.33 percentage points. When correcting for selection bias — organizations that expect higher returns are more likely to be early AI adopters — the short-run negative impact was significantly larger, at around 60 percentage points, the researchers write.

This decline isn’t only a matter of growing pains; it points to a deeper misalignment between new digital tools and legacy operational processes, the researchers found. AI systems used for predictive maintenance, quality control, or demand forecasting often also require investments in data infrastructure, staff training, and workflow redesign. Without those complementary pieces in place, even the most advanced technologies can underdeliver or create new bottlenecks. 

“Once firms work through the adjustment costs, they tend to experience stronger growth,” McElheran said. “But that initial dip — the downward slope of the J-curve — is very real.”

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2. Short-term losses precede long-term gains.

Despite companies’ early losses, the study found a clear pattern of recovery and eventual improvement. Over a longer period of time — there was a four-year gap in the study data — manufacturing firms that adopted AI tended to outperform their non-adopting peers in both productivity and market share. This recovery followed an initial period of adjustment during which companies fine-tuned processes, scaled digital tools, and capitalized on the data generated by AI systems. 

That upswing wasn’t distributed evenly, though. The firms seeing the strongest gains tended to be those that were already digitally mature before adopting AI. 

“Firms that have already done the digital transformation or were digital from the get-go have a much easier ride because past data can be a good predictor of future outcomes,” McElheran said. Size helps too. “Once you solve those adjustment costs, if you can scale the benefits across more output, more markets, and more customers, you’re going to get on the upswing of the J-curve a lot faster,” she said.

Better integration of the technology and strategic reallocation of resources is important to this recovery as firms gradually shift toward more AI-compatible operations, often investing in automation technologies like industrial robots, the researchers found.

3. Older firms see greater short-term losses.

Short-term losses aren’t felt equally across all firms, the study found. The negative impact of AI adoption was most pronounced among established firms. Such organizations typically have long-standing routines, layered hierarchies, and legacy systems that can be difficult to unwind. 

These firms often have trouble adapting, partly due to institutional inertia and the complexity of their operations. “We find that older firms, in particular, struggle to maintain vital production management practices such as monitoring key performance indicators and production targets,” the researchers write. 

“Old firms actually saw declines in the use of structured management practices after adopting AI,” McElheran said. “And that alone accounted for nearly one-third of their productivity losses.” 

In contrast, younger, more flexible companies appear better equipped to integrate AI technologies quickly and with less disruption. They may also have less to unlearn, making the transition to AI-enabled workflows more seamless. 

“Taken together, our findings highlight AI’s dual role as a transformative technology and catalyst for short-run organizational disruption, echoing patterns familiar to scholars of technological change,” the researchers write. They note that the results also show the importance of complementary practices and strategies that mitigate adjustment causes and boost long-term returns to “flatten the J-curve dip and realize AI’s longer-term productivity at scale.” 

New Jersey – July 9, 2025 – Cushman & Wakefield announced today that the real estate services firm has released its Q2 2025 New Jersey Market Report, highlighting robust performance across both the industrial and office sectors. Leasing activity showed positive trends in specific submarkets, and demand for Class A properties drove key metrics for both sectors despite ongoing challenges.  

The industrial market in New Jersey experienced increased leasing momentum in Q2 2025, with activity totaling 5.7 million square feet (msf), a 4.7% rise from the previous quarter. The Port South and Meadowlands submarkets led the way, accounting for 33.9% of leasing activity. Year-to-date leasing in the Port South submarket improved 22.0% year-over-year (YOY) to reach 2.3 msf. 

While overall net absorption remained negative for the ninth consecutive quarter (-1.9 msf), Class A industrial properties saw positive absorption, driven by consistent tenant demand despite increasing sublease availability. Vacancy surged 220 basis points YOY to 9.9%, influenced by 13.1 msf of new vacancies. Pre-leasing activity also declined to 28.4% as only 15.4% of newly delivered projects were occupied upon completion. 

“New Jersey’s industrial market remains resilient despite ongoing challenges,” said Felix Soto, Senior Research Analyst at Cushman & Wakefield. “Submarkets such as Port South and the Meadowlands continue to see robust leasing activity, highlighting their strategic value and appeal for modern warehouse and distribution spaces.” 

New Jersey’s office market demonstrated signs of stabilization midway through 2025, driven by steady demand for the third consecutive quarter. Net absorption turned positive in Q2, led by occupancy gains within Class A office space. The office vacancy rate saw a slight improvement, falling 40 basis points YOY to 22.2%, with conversions and demolitions helping offset vacancy growth. 

New leasing activity held strong at 1.8 msf in Q2, surpassing the two-year quarterly average, with 67.6% of demand focused on Class A office spaces. Asking rents for Class A properties saw a 3.3% YOY increase to $36.40 per square foot, while the overall market average declined by 0.6% from the previous quarter to $32.45 psf. 

“As we reach the midpoint of 2025, the New Jersey office market is finding balance,” Soto added. “Sustained demand for Class A office environments and strategic adaptations, like conversions, are keeping the market competitive and attractive for tenants looking for premium spaces.” 

Nvidia became the first company to be worth $4 trillion.

The chipmaker’s shares rose as much as 2.5% Wednesday, pushing higher than the previous market value record, set by Apple in December 2024. Nvidia has rallied by more than 70% from its April 4 low, when global stock markets were sent reeling by President Donald Trump’s global tariff rollout.

Tech analyst Dan Ives called Wednesday’s milestone a “huge historical moment for the U.S. tech sector.”

The record value comes as tech giants such as OpenAI, Amazon and Microsoft spend hundreds of billions of dollars in the race to build massive data centers to fuel the artificial intelligence revolution. All of those companies are using Nvidia chips to power their services, though some are also developing their own.

In the first quarter of 2025 alone, the company reported its revenue soared about 70% to more than $44 billion. Nvidia said it expects another $45 billion worth of sales in the current quarter.

“Global demand for Nvidia’s AI infrastructure is incredibly strong,” CEO Jensen Huang told investors in a May conference call.

Shares have surged nearly 20% this year on that explosive growth. Its shares are also higher by 1,500% over the course of the last five years. That also led Nvidia to unseat Microsoft in mid-June as the most valuable public company in the world.

A little over two years ago, Nvidia was worth just $500 billion. In June 2023, the company surpassed $1 trillion in value, only to double that by February 2024. Last month, the company’s value hit more than $3 trillion.

Currently trailing Nvidia and Microsoft in the rankings are Apple at $3.13 trillion, Amazon at $2.38 trillion, Alphabet at $2.12 trillion and Meta Platforms at $1.81 trillion.

Still, Nvidia has faced a number of hurdles. In early April, as global markets were plunging on fears about Trump’s global tariffs, the company disclosed that it would take as much as a $5.5 billion hit from Chinese export restrictions imposed by the U.S. government. It ended up having to swallow most of that, with a $4.5 billion hit in the three-month period.

“The $50 billion China market is effectively closed to U.S. industry,” Huang said at the time.

The tech CEO has gained a cult following and become something of a global diplomat for artificial intelligence and Nvidia’s central role in it. In the last few months alone, Huang has made trips to meet with Trump at the president’s Mar-a-Lago club in Florida. Huang has also met with the chancellor of Germany in Berlin, top European Commission leaders, and senior lieutenants to President Xi Jingping in China.

ST. PETERSBURG, Fla. — The WTA is pleased to announce the appointment of Marcy Withington as Chief Financial Officer, reporting to CEO Portia Archer. Marcy will work alongside WTA Ventures CFO Marijn de Wit to help deliver the WTA’s ambitious plans to grow and develop women’s tennis through strong financial planning and leadership, effective risk management and business strategy and operational efficiency.

Marcy joins WTA from most recently serving as CFO of the Solomon R. Guggenheim Museum and Foundation from 2018 to 2025.  From 2022, she was also Deputy Director and Interim Chief Operating Officer. In 2023, she was one of three senior executives appointed to jointly oversee the Museum and Foundation during a leadership transition.

Before joining the Guggenheim, Marcy was Chief Financial Officer and Executive Vice President of Operations at Mystic Seaport Museum, where she served for 11 years. From 1997 through 2007, she worked at Viacom and several of its subsidiaries, most recently at MTV Networks, where she was Senior Vice President for Finance and had responsibility for worldwide financial planning and analysis. She earlier served as the head of finance for the Nickelodeon Network.

Marcy is a licensed CPA and began her career in public accounting at Coopers & Lybrand. She holds a bachelor’s degree in economics and political science from Middlebury College and a master’s degree in business administration from Cornell University.

Portia Archer, WTA CEO, said: “I am thrilled to welcome Marcy to the WTA. Marcy’s vast global experience and exceptional track record in financial leadership, strategy and operations will drive our financial strategy forward and strengthen our ability to invest in the long-term growth of women’s tennis. I am certain that Marcy will make a valuable contribution to the WTA leadership team from day one.”

Marcy joins the WTA during a period of unprecedented growth. The Hologic WTA Tour attracted a global audience of more than 1 billion in 2024 while total attendance at Tour events increased by 15% during the 2024 season, surpassing 3.5 million in total. WTA Ventures reported a 25% growth in commercial revenue over the same period, through new and extended commercial partnerships, the commercialization of data rights, expanded media broadcast rights deals and the success of the WTA Finals. Prize money reached a new high of $221 million in 2024, including a record prize pot of $15.5 million at the WTA Finals Riyadh presented by PIF.

Goodwin advised GREENPEAK Partners’ portfolio company, ENCOVIVA Holding GmbH (“encoviva”), on the acquisition financing of ING. FTG Ingenieurgesellschaft für Technische Gebäudeausrüstung mbH (“ING.FTG”).

encoviva is a network of leading companies that develops innovative and sustainable building concepts. From consulting to engineering services, the group offers comprehensive solutions for new and existing projects and supports its partners in shaping an emission-free and economically optimized future.

GREENPEAK is a leading specialist focused on building and developing platforms that drive sustainable growth. With a hands-on approach, they collaborate closely with businesses to foster long-term value creation and success. By partnering with companies that share their vision and values, GREENPEAK creates synergistic ecosystems that fuel innovation and work toward a better future for all.

Goodwin’s transaction team was led by partner Winfried Carli and associate Daniel Wagner and included associate Jakob Lutzenberger and transaction lawyer Rina Omura (Private Equity/Finance, Munich) as well as Frankfurt partner Felix Krüger and Munich associate Philipp Lauer (Tax).

Google has agreed a sweeping deal with the UK government to provide free technology to the public sector from the NHS to local councils– a move campaigners have called “dangerously naive”.

The US company will be asked to “upskill” tens of thousands of civil servants in technology, including in using artificial intelligence, as part of an agreement which will not require the government to pay. It is considered in Whitehall to be giving Google “a foot in the door” as the digitisation of public services accelerates.

However, the agreement prompted concerns about the precariousness of UK public data being held on US servers amid the unpredictable leadership of Donald Trump.

The Department of Science, Innovation and Technology (DSIT) said Google Cloud, which provides databases, machine learning and computing power, had “agreed to work with the UK government in helping public services use advanced tech to shake off decades old ‘ball and chain’ legacy contracts which leave essential services vulnerable to cyber-attack”.

Google’s services are considered more agile and efficient than traditional competitors, but there are concerns in Whitehall’s digital circles about the government becoming locked into a new kind of dependency.

Other US tech firms including Microsoft, OpenAI and Anthropic have also been providing services to civil servants as they attempt to harness technology to boost the efficiency of cash-strapped public services.

On Wednesday, the chancellor, Rachel Reeves, met two of Mark Zuckerberg’s most senior lieutenants, Meta’s chief global affairs officer, Joel Kaplan, and the head of its global business group, Nicola Mendelsohn.

During the pandemic in 2020, Palantir, a tech firm founded by the libertarian Trump donor Peter Thiel, provided services to the UK government for £1 and in 2023 it won a £330m deal to create a single platform for NHS data.

DSIT also said Google DeepMind, the tech company’s AI division, which is led by the Nobel prize-winning scientist Demis Hassabis, would “collaborate with technical experts in government to support them in deploying and diffusing new emerging technologies, driving efficiencies across the public sector, including accelerating scientific discovery”.

But with ministers and government regulators facing pressing decisions on how to regulate AI, search, cloud computing and copyright, Martha Dark, the co-executive director of Foxglove, a non-profit organisation campaigning for fairer use of technology, said: “How is the government going to be able to hold Trump-supporting US big tech giants to any kind of serious account on this – or any other issue – after we’ve given Google the keys to the data kingdom? It’s hard to see this as anything other than dangerously naive on the part of Peter Kyle and government as a whole.”

Other experts warned that the agreement could “entrench the market power” of a company such as Google and leave the UK government reliant on the technology from giant firms. Peter Kyle, the secretary of state for science and technology who announced the deal at a Google event in London on Wednesday, said “wherever possible, UK technology companies – large and small – [will] get a fair shot” at winning public tech contracts.

The opportunity secured by Google was not put out to public tender as no money was changing hands, a government source said.

DSIT said: “These arrangements will operate in full compliance with all applicable public procurement laws, and may be subject to future commercial agreements.”

Kyle has held 11 meetings with representatives of Google since Labour took office, according to departmental registers up to the end of March.

The Guardian has asked Google and the government what access the tech company will have to public data as part of the deal.

Kyle has said he wants to “exploit the full potential of a partnership between government and Google, with much more collaboration between their UK AI lab, DeepMind, and my own AI developers”.

There have been signs of new technology delivering efficiencies in the public sector. A recent trial of Microsoft’s AI Copilot tool, provided with a discount, by 20,000 civil servants found it saved them 26 minutes a day on average, according to a government study, and 82% said they did not want to return to previous working practices.

But Imogen Parker, an associate director at the Ada Lovelace Institute, a research body focused on ensuring technology works for society, said the deal raised questions about the UK’s digital sovereignty.

“The public needs to understand what Google is getting from this partnership and what the return will be for taxpayers in years to come,” she said. “Deals like this might look like good value for money today, but they risk lock-in tomorrow – limiting our ability to seek alternatives in future.”

Kyle has previously been accused of being too close to big tech, and he opened his speech by saying he pleaded guilty to the “crime“ of meeting tech executives far more than his predecessor, after it was reported by the Guardian.

“I make absolutely no apologies for meeting with technology companies – that’s the job,” he said, adding that it was important for keeping children safe on social media, making sure Britain was prepared for developments at the frontier of AI, and securing better deals for the taxpayer for the billions of pounds spent every year on technology.

Workday Research Reveals 76% of Employees Don’t Know Who Owns Contracts, Resulting in Lost Revenue and Missed Opportunities 

PLEASANTON, Calif., July 9, 2025 /PRNewswire/ — Workday, Inc. (NASDAQ: WDAY), the AI platform for managing people, money, and agents, today released “The Contract Intelligence Index Report.” This research uncovers a widespread problem: many companies don’t clearly define who is responsible for their contracts. This lack of clarity results in significant financial losses, inefficient operations, and unmanaged risks for businesses worldwide.

Contracts are vital for understanding revenue and obligations. However, if no one clearly owns the contracts, their full value is often lost. The report highlights a major issue impacting profitability: a staggering 76% of employees don’t fully understand who is responsible for contracts. This confusion often comes from not knowing whether the vendor relationship manager, legal team or procurement department is ultimately in charge. Without clear ownership, contracts remain static documents, preventing organizations from using the valuable information these contracts contain to drive business growth. Until companies move beyond basic administration to true contract intelligence, companies will continue to simply manage documents instead of strategically using contracts to achieve business results.

Key Findings from The Contract Intelligence Index Report include:

• Untapped Revenue, Unforeseen Costs: Lack of insight into customer renewals, upsell, and cross-sell opportunities can hurt revenue growth. Half of all legal (50%) and enterprise employee (49%) respondents say they’ve lost money from unintended auto-renewals – with sales and marketing departments hit hardest (60%). When organizations unknowingly have unused services or miss upsell opportunities, it can directly impact revenue growth, operational efficiency, and market share.
• Legal Blind Spots, Mounting Risk: If legal teams aren’t fully involved in the business, there can be gaps in how contracts are handled. While 85% of legal professionals say they’re part of contract approvals, only 67% of other employees agree. This 18% difference suggests that a third of employees might be bypassing legal, creating significant risks and legal exposure from overlooked regulatory requirements, inconsistent language, and unfavorable or unenforceable terms.
• Data Disconnect, Fragmented Future: Buried across shared drives, systems, and communications, scattered information prevents different departments from sharing analysis and insights. The report found that contracts are primarily spread across shared drives (70% for legal, 50% for non-legal) and CRM systems (62% for legal, 53% for non-legal), as well as individual desktops, in email accounts, and even paper records. This fragmentation not only slows down processes, but also undermines the value of having holistic contract visibility, enforceability, and opportunity identification.
• Slow Processes, Stifled Innovation: Slow contract approvals, lengthy legal reviews, and time spent on legal disputes can disrupt the speed of business. More than two in five (41%) respondents – including legal professionals – believe contract processes are too slow. This hinders innovation and productivity across departments like R&D and engineering (79%).

“Contracts are packed with critical business information that’s often buried across hundreds of pages,” said Jerry Ting, Vice President, Head of Agentic AI and Evisort, Workday. “With the rise of AI agents, we can finally turn contracts into living, intelligent assets. Our research shows how legal teams can unlock hidden insights to become a strategic engine that accelerates business decisions, protects the enterprise, and ultimately leads the way to greater efficiency and profitability.”

For additional information:

About The Contract Intelligence Index Report
This data comes from the study “Contract Intelligence Index Report,” a survey commissioned by Workday and fielded by Provoke Insights in March 2025. The study encompassed 1,250 U.S.-based legal and non-legal enterprise employees across a variety of industries representing organizations across North America; Asia-Pacific (APAC); and Europe.

About Workday
Workday is the AI platform for managing people, money, and agents. The Workday platform is built with AI at the core to help customers elevate people, supercharge work, and move their business forever forward. Workday is used by more than 11,000 organizations around the world and across industries – from medium-sized businesses to more than 60% of the Fortune 500. For more information about Workday, visit workday.com.

© 2025 Workday, Inc. All rights reserved. Workday and the Workday logo are registered trademarks of Workday, Inc. All other brand and product names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Workday’s plans, beliefs, and expectations. These forward-looking statements are based only on currently available information and our current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, assumptions, and changes in circumstances that are difficult to predict and many of which are outside of our control. If the risks materialize, assumptions prove incorrect, or we experience unexpected changes in circumstances, actual results could differ materially from the results implied by these forward-looking statements, and therefore you should not rely on any forward-looking statements. Risks include, but are not limited to, risks described in our filings with the Securities and Exchange Commission (“SEC”), including our most recent report on Form 10-Q or Form 10-K and other reports that we have filed and will file with the SEC from time to time, which could cause actual results to vary from expectations. Workday assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by law.

Any unreleased services, features, or functions referenced in this document, our website, or other press releases or public statements that are not currently available are subject to change at Workday’s discretion and may not be delivered as planned or at all. Customers who purchase Workday services should make their purchase decisions based upon services, features, and functions that are currently available.

SOURCE Workday Inc.

Leaving Dentons

Beijing Dacheng Law Offices, LLP (“大成”) is an independent law firm, and not a member or affiliate of Dentons. 大成 is a partnership law firm organized under the laws of the People’s Republic of China, and is Dentons’ Preferred Law Firm in China, with offices in more than 40 locations throughout China. Dentons Group (a Swiss Verein) (“Dentons”) is a separate international law firm with members and affiliates in more than 160 locations around the world, including Hong Kong SAR, China. For more information, please see dacheng.com/legal-notices or dentons.com/legal-notices.