Category: 3. Business

  • From the Lab to Your Dining Table: How Nuclear Science Enhances Food Safety

    From the Lab to Your Dining Table: How Nuclear Science Enhances Food Safety

    A global webinar on nuclear technology and food safety, organized by the IAEA to mark International Food Safety Day, has shone a spotlight on the increasingly important role that nuclear science is playing in shaping safer and more resilient food safety and control systems around the world.

    The event, held on 5 June, highlighted how nuclear science is playing an increasingly important role in shaping safer and more resilient food systems globally. It emphasized how the IAEA, through the Joint FAO/IAEA Centre of Nuclear Techniques in Food and Agriculture, is helping countries integrate nuclear and related techniques into their food safety and control systems. IAEA support is provided through its technical cooperation and research coordination projects, which provide capacity building and generate valuable data to enhance the efficiency of food safety programmes around the world.

    The webinar brought together 85 participants, including three presenters from regional food safety networks, to showcase examples and engage in discussions about how scientific nuclear knowledge and applications can strengthen food safety systems.

    “Food safety is a shared responsibility and there is great need to leverage scientific advancements to protect lives, foster trust and promote sustainable development,” said Rola Bou Khozam, head of the IAEA Food Safety and Control Section at IAEA, in her opening message to the participants.

    In the keynote presentation, Christina Vlachou, head of the Food Safety and Control Laboratory, highlighted the role of the Joint FAO/IAEA Centre in helping countries enhance their technical skills through knowledge transfer activities. Specifically, the IAEA facilitates the transfer of analytical methods and information on detecting contaminants and chemical residues in foods as well as on combatting food fraud based on nuclear and related techniques.

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  • Inflation expectations drift back down to pre-tariff levels, New York Fed survey shows

    Inflation expectations drift back down to pre-tariff levels, New York Fed survey shows

    People shop at a grocery store in Brooklyn on May 13, 2025 in New York City.

    Spencer Platt | Getty Images

    Fears earlier this year that President Donald Trump’s tariffs would result in a sharp inflation spike have completely receded, according to a New York Federal Reserve survey released Tuesday.

    The central bank’s monthly Survey of Consumer Expectations shows that respondents in June saw inflation at 3% 12 months from now. That’s the same level it was in January — before Trump took office and began saber-rattling over trade.

    The level marked a 0.2 percentage point decline from May and a retreat from the 3.6% peak hit in March and April.

    Since April, Trump has gone from slapping across-the-board 10% tariffs plus a menu of so-called reciprocal duties against U.S. trading partner to a more conciliatory approach involving ongoing negotiations.

    Thus far, tariffs have yet to show up in most inflation readings. The consumer price index rose just 0.1% in May, according to the Bureau of Labor Statistics, though the annual inflation rate of 2.4% remains above the Fed’s 2% goal.

    Inflation expectations at the three- and five-year horizons were unchanged at 3% and 2.6% respectively, according to the survey.

    While the headline inflation outlook eased, respondents still expect higher prices in several key individual categories. The survey pointed to expectations for a 4.2% increase in gas prices, 9.3% for medical care — the highest since June 2023 — and 9.1% for both college education and rent. The outlook for food price increases was unchanged at 5.5%.

    Employment metrics also showed some improvement, with a 1.1 percentage decrease in the expectation for a higher unemployment rate a year from now. Also, the average expectation for losing one’s job fell to 14%, a 0.8 percentage point drop and the lowest reading since December.

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  • WeightWatchers recasts itself for Ozempic era with focus on women’s health – Financial Times

    WeightWatchers recasts itself for Ozempic era with focus on women’s health – Financial Times

    1. WeightWatchers recasts itself for Ozempic era with focus on women’s health  Financial Times
    2. WeightWatchers emerges from bankruptcy, and it’s now taking aim at menopause  MarketWatch
    3. Novo Nordisk submits application to EMA for approval of higher dose of Wegovy  MarketScreener
    4. Huge diet brand saved from going bust as it turns business around to sell weight loss jabs  The Sun
    5. WeightWatchers emerges from bankruptcy after slimming down debts  The Independent

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  • Rolls-Royce and Duisport launch CO2-neutral, self-sufficient energy system for new port terminal

    Rolls-Royce and Duisport launch CO2-neutral, self-sufficient energy system for new port terminal

    • First mtu hydrogen CHP units, battery storage systems and fuel cell systems from Rolls-Royce in operation
    • Benchmark for sustainable energy supply in logistics centers worldwide

    Rolls-Royce and Duisburger Hafen AG have opened a CO2-neutral and self-sufficient energy system for the new Duisburg Gateway Terminal, located in the Rhine-Ruhr industrial region of Germany. The core components are two mtu combined heat and power units designed for operation with 100 percent hydrogen, which are being used here for the first time worldwide. The system is supplemented by an mtu battery storage system, mtu fuel cell systems and a photovoltaic system integrated via an intelligent energy management system.

    The Enerport II flagship project, funded by the German Federal Ministry for Economic Affairs and Energy, is setting new standards for sustainable energy supply in large logistics centers and is considered a model for other ports, infrastructure projects and industrial facilities. Project partners include the Fraunhofer Institute UMSICHT, Westenergie Netzservice GmbH, Netze Duisburg GmbH, Stadtwerke Duisburg AG, and Stadtwerke Duisburg Energiehandel GmbH.

    “The launch of this carbon-neutral energy system at the Duisburg Gateway Terminal is a big step toward a more climate-friendly, resilient energy supply. Together with our partner duisport, we’re showing how scalable technologies from Rolls-Royce can really help transform critical infrastructure – and help make the energy transition happen,” said Dr. Jörg Stratmann, CEO of Rolls-Royce Power Systems.


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  • Training and deploying AI models around the world: the territorial issues at stake in Getty Images v. Stability AI

    Training and deploying AI models around the world: the territorial issues at stake in Getty Images v. Stability AI

    This has become more apparent following Getty’s withdrawal during the trial’s closing submissions of its primary copyright infringement allegations regarding training and output. This raises the general question of how national copyright laws apply to the training and deployment of AI models around the world.

    Getty Images et al. v. Stability AI: background

    Getty Images (Getty) filed an action in the UK (and an equivalent in the U.S.) alleging copyright, trademark, and database rights infringement. In the UK action, Getty originally asserted that Stability AI unlawfully copied in the UK millions of images, protected by UK copyright and owned or represented by Getty Images, to train its Stable Diffusion image generator.

    It also claimed that there was further unauthorized copying or communication to the public in the UK of a substantial part of its images at the point of use, i.e., in the images output from Stable Diffusion. These claims were, however, withdrawn by Getty on the first day of the trial’s closing submissions.

    The importance of where to train AI systems

    Stability AI had admitted that at least some Getty images were used to train Stable Diffusion. However, Getty’s difficulty with its training allegation was proving that any infringing act occurred in the UK, i.e., whether Getty’s works were copied in the UK during training such as by downloading them onto hardware in the UK.

    Stability AI had argued that no infringing acts took place in the UK in training Stable Diffusion because Stable Diffusion was wholly developed and trained outside of the UK and, as such, there was no infringement of UK copyright in this respect.

    As this claim has now been withdrawn, we are unlikely to get a judgment on that issue. Nevertheless, it is of real importance to any company deciding where to develop and deploy its AI models. Copyright protection is territorial, and at a high level, the jurisdiction where any infringing acts take place affects the risks of copyright infringement, in particular which defenses to copyright infringement are available.

    Currently, different countries have differing approaches to exempting copyright reproduction for text and data mining (TDM) purposes:

    • Japan and Singapore allow TDM for commercial purposes.
    • The EU allows copyright owners to opt-out works from commercial TDM.
    • The UK currently only allows TDM for non-commercial research. However, as explained in our previous blog post, it is considering introducing an exception for commercial TDM with the ability for rights holders to reserve their rights (an “opt-out”).

    The U.S. takes an entirely different approach, deciding on the particular facts of each case whether the use in training could be considered to be “fair.” In one case, the use of legal headnotes to train a competitor’s AI tool was held not to be fair use given the particular use case1. On the other hand, in a recent federal court judgment in California, AI foundation model developer Anthropic has been allowed to assert fair use against copyright claims for training its Claude AI models on copyrighted books that Anthropic had lawfully acquired2.

    However, the judge in that case ruled that the same “fair use” argument would not apply in respect of Anthropic’s collection and use of pirated works, which will be the subject of a separate damages hearing (with potentially significant amounts at issue).

    Meanwhile, in a separate federal court proceeding in California against Meta, the judge concluded that “fair use” was likely not available given the market dilution impact of large language models (although the judge found in favor of Meta for other reasons)3.

    Accordingly, reproducing copyright works during AI training may be exempted in countries with more expansive exceptions, but it will only be possible to fully take advantage of such expansive exemptions if one can restrict all acts of reproduction to that country and nothing is downloaded or stored elsewhere.

    Furthermore, these TDM exemptions will only apply (if at all) to the steps of training the AI model. Subsequent acts of reproduction or communication to the public following completion of the AI training may involve new infringing acts that may not be covered by the TDM exceptions. These may include, for example, further reproduction (e.g., uploading protected content) or making any data resulting from TDM activities available to the public (e.g., making it accessible on the internet).

    Deployment

    Despite the withdrawal of the training claim, Stability AI will not necessarily avoid UK copyright liability. This is because Getty continues with two secondary infringement claims that cover the deployment of Stable Diffusion in the UK:

    1. Stable Diffusion is alleged to be an article that is, and that Stability AI knows or has reason to believe, is an infringing copy of Getty’s copyright works, which has been imported into the UK (s23 CDPA ’88).
    2. Stability AI is alleged to have possessed and distributed in the course of business, sold, offered, or exposed for sale, an article that is, and that it knows or has reason to believe, is an infringing copy (s33 CDPA ’88).

    These allegations raise some interesting legal questions:

    Can an intangible AI model like Stable Diffusion that is accessible from the internet ever constitute an “article” capable of being imported or dealt with in the course of business?

    Can the AI model itself (like Stable Diffusion) be said to be an infringing copy (i.e., a substantial reproduction) of one or more works that were used to train the model?

    What if Stable Diffusion does not retain internally in the model any copies of any of the works on which it was trained in material form?

    Is it sufficient that the model weights (the associations and patterns developed through the training process) contain an abstracted representation of all the model’s training data?

    The answer to these questions will depend on the court’s interpretation of UK legislation as much as the technology itself. As with all AI-related legal risks, it will be technology-led and the decision in this case may not be relevant to AI models trained using different techniques.

    Is an AI model an infringing copy if its making constituted a copyright infringement or would have constituted a copyright infringement if it were made in the UK?

    Another fundamental requirement is that Stability AI knew or had reason to believe that Stable Diffusion was an infringing copy. Is it sufficient that it is common knowledge that photographs are protected by copyright, and that copyright in them would be infringed by copying them, or by importation of infringing copies of them? Or did Stability AI hold a reasonable belief that Stable Diffusion was not an infringing copy because none of the model, source code, or output was a substantial reproduction of any copyright work from its training dataset?

    Other AI developers need to pay close attention to the court’s ruling on these issues because it should clarify whether AI models trained in other countries will infringe under UK copyright law, and if so, how. The UK government in its recent Consultation on Copyright and AI specifically noted that it wanted to avoid UK-trained AI models from being disadvantaged compared to those trained elsewhere but operating within the UK.

    Takeaways

    International copyright disputes are never straightforward and those involving global AI operations are no exception. The Getty case has illustrated how important it is for a successful claim to establish an infringing act in the relevant jurisdiction, and this will depend not only on the specific techniques and datasets used to train the model, but also the differing exceptions to copyright infringement around the world.

    The crux of the (UK) Getty case is now whether UK copyright law bites on an AI model that was trained elsewhere but made available to UK consumers. Even if most AI training currently occurs in the U.S. or China, the UK remains a valuable commercial market and developers wishing to sell into it need to take note.

    This is at the same time, of course, as following the many ongoing proceedings in other markets (particularly the U.S., where much of the AI training takes place) as well as assessing the impact of the EU AI Act, which requires AI developers offering their products in the EU to have complied with EU copyright laws when training their models (even if trained outside the EU). It is a very complex and fast-moving global picture.

    Footnotes

    1. Thomson Reuters v. ROSS Intelligence No. 1:20-cv-613-SB (E.D. Pa. Feb. 11, 2025)—a summary judgment.

    2. Andrea Bartz v. Anthropic C 24-05417 WHA

    3. Richard Kadrey et al. v. Meta Platforms Inc. No. 23-cv-03417-VC

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  • Fitch Upgrades Hauck Aufhaeuser Lampe Privatbank AG to 'A'; Outlook Stable – Fitch Ratings

    1. Fitch Upgrades Hauck Aufhaeuser Lampe Privatbank AG to ‘A’; Outlook Stable  Fitch Ratings
    2. Fosun Secures EUR670 Million Through Completion of German Private Bank HAL Sale  Yahoo Finance
    3. ABN AMRO’s HAL Acquisition: A Strategic Play for European Wealth Management Dominance  AInvest
    4. Fosun’s €670M Bank Sale Powers Asset-Light Strategy While Retaining €100B Luxembourg Unit  Stock Titan
    5. Dutch bank ABN AMRO finalizes acquisition of German private bank HAL  Yahoo Finance

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  • McDermott wins offshore installation contract in Brazil

    McDermott wins offshore installation contract in Brazil

    Engineering and construction solutions provider McDermott has secured a contract for offshore transportation and installation in Brazil for the Papa-Terra and Atlanta fields.

    The contract, awarded by Brazil-based independent oil and gas company BRAVA Energia, involves the transportation and installation of flexible pipelines, umbilical and associated subsea equipment for two new wells at the Papa-Terra field, as well as a pair of new wells for the Atlanta Phase 2 development.

    McDermott subsea and floating facilities senior vice-president Mahesh Swaminathan stated: “This award highlights the vital role of subsea infrastructure in enabling long-term production and asset value for deepwater developments.

    “We will leverage our proven integrated delivery model, marine capabilities and expertise in delivering brownfield deepwater solutions to support Brazil and the broader South American offshore market.”

    The new wells operated by BRAVA Energia at the Papa-Terra and Atlanta fields are anticipated to boost the escalation of production, in line with strategic plans to boost output and extend the lifespan of deepwater infrastructure.

    In early 2025, BRAVA Energia finalised a deal with global commodity trader Trafigura for the sale of six million barrels of oil from the Atlanta field.

    McDermott’s history with the Papa-Terra field includes the delivery of the tension leg wellhead platform, marking a first for both a dry-tree floating production system offshore Brazil and a tension leg platform in South America.

    With operations in more than 54 countries, McDermott employs 30,000 people, operates a fleet of speciality marine construction vessels and maintains fabrication facilities globally.

    The company’s commitment to the South American market is further evidenced by its recent completion of the Scarborough floating production unit floatover project for Woodside Energy and an enterprise framework agreement with Shell Global Solutions International for engineering and procurement services.

    “McDermott wins offshore installation contract in Brazil” was originally created and published by Offshore Technology, a GlobalData owned brand.

     


    The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

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  • Hospital PMI® at 49%; June 2025 Hospital ISM® Report On Business®

    Hospital PMI® at 49%; June 2025 Hospital ISM® Report On Business®

    TEMPE, Ariz., July 8, 2025 /PRNewswire/ — Economic activity in the hospital subsector contracted in June after 21 consecutive months of growth, say the nation’s hospital supply executives in the latest Hospital ISM® Report On Business®.

    The report was issued today by Nancy LeMaster, MBA, Chair of the Institute for Supply Management® (ISM®) Hospital Business Survey Committee: “The Hospital PMI® registered 49 percent in June, a 3-percentage point decrease from the May reading of 52 percent, indicating contraction after 21 consecutive months of growth. The composite index is in contraction territory for just the fifth time (with the PMI® also registering below 50 percent in April and May 2020, as well as May and August 2023) in more than seven years of Hospital ISM® Report On Business® data collection. The Business Activity Index remained in expansion territory for the eighth straight month. The New Orders Index returned to expansion territory from an ‘unchanged’ reading in May, and the Employment Index returned to contraction after two consecutive months of expansion with its lowest reading since January 2022. The Supplier Deliveries Index was ‘unchanged’ in June after two consecutive months of expansion (which indicates slower delivery performance). The Case Mix Index remained in expansion territory in June, registering 50.5 percent, a decrease of 2.5 percentage points from the reading of 53 percent reported in May. The Days Payable Outstanding Index remained in expansion in June, registering 51 percent, down 0.5 percentage point from the 51.5 percent reported in May. The Technology Spend Index reading of 57.5 percent is a decrease of 1.5 percentage points compared to the 59 percent recorded in May. The Touchless Orders Index remained in expansion territory in June, registering 52.5 percent, up 1 percentage point from the reading of 51.5 percent reported in May.”

    LeMaster continues, “Half of the general comments by Hospital Business Survey panelists related to concerns and challenges dealing with tariffs and the shifting geopolitical landscape. Panelists were nearly unanimous in indicating their facilities or systems were beginning to see tariff-related surcharges or increased pricing. The largest month-over-month change in this month’s report was the Employment Index, and the 8-percentage point decrease pulled the PMI® into contraction. Comments indicated the reductions in staffing were related to margin pressures and loss of federal funding; they did not appear to be driven by volume levels. Although the Business Activity Index dropped 3.5 percentage points from the previous month, most comments cited strong or seasonal-level volumes. While inventories growth slowed, increases continued to be driven by efforts to blunt the impact of tariffs and potential shortages. Supplier deliveries continued to improve, and very few panelists commented about product shortages.”

    Hospital PMI® History


    Month

    Hospital PMI®

    Month

    Hospital PMI®

    Jun 2025

    49.0

    Dec 2024

    56.3

    May 2025

    52.0

    Nov 2024

    58.5

    Apr 2025

    55.0

    Oct 2024

    51.9

    Mar 2025

    51.0

    Sep 2024

    55.0

    Feb 2025

    56.0

    Aug 2024

    58.6

    Jan 2025

    53.5

    Jul 2024

    53.3

    Average for 12 months – 54.2

    High – 58.6

    Low – 49.0

    About This Report
    The information compiled in this report is for the month of June 2025.

    The Hospital PMI® was developed in collaboration with the Association for Health Care Resource & Materials Management (AHRMM), an association for the health care supply chain profession, and a professional membership group of the American Hospital Association (AHA).

    The data presented herein is obtained from a survey of hospital supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

    Data and Method of Presentation
    The Hospital ISM® Report On Business® is based on data compiled from hospital purchasing and supply executives nationwide. Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Employment, Supplier Deliveries, Inventories, Prices, Prices: Pharmaceuticals, Prices: Supplies, Backlog of Orders, Imports, Inventory Sentiment, Case Mix, Days Payable Outstanding, Technology Spend, and Touchless Orders), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Beginning in January 2021, the Report On Business® staff and consultants are gathering market information to better validate the Exports Index. Exports Index data are still being collected.

    The Hospital PMI® is a composite index computed from the following, equally weighted indexes: Business Activity, New Orders, Employment and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Hospital PMI® index reading above 50 percent indicates that the hospital sub-sector is generally expanding; below 50 percent indicates that it is generally declining. For the sub-indexes, except Supplier Deliveries, an index reading above 50 percent indicates that the sub-index is generally expanding; below 50 percent indicates that it is generally contracting. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.

    The Hospital ISM® Report On Business® survey is sent out to the Hospital Business Survey Panel respondents the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to give the most accurate picture of current business activity. ISM® then compiles the report for release on the fifth business day of the following month.

    ISM ROB Content
    The Institute for Supply Management® (“ISM”) Report On Business® (Manufacturing, Services, and Hospital reports) (“ISM ROB”) contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, “Content”) of ISM (“ISM ROB Content”). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. ISM hereby grants you a limited, revocable, non-sublicensable license to access and display on your individual device the ISM ROB Content (excluding any software code) solely for your personal, non-commercial use. The ISM ROB Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM ROB Content.

    Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including, but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

    You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting Rose Marie Goupil in writing at: ISM Research, Institute for Supply Management, 309 W. Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing [email protected]; Subject: Content Request.

    ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM ROB. Report On Business®, PMI®, Manufacturing PMI®, Services PMI®, and Hospital PMI® are registered trademarks and trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.

    About Institute for Supply Management®
    Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the strategy and practice of integrated, end-to-end supply chain management through leading edge data-driven resources, community, and education to empower individuals, create organizational value and to drive competitive advantage. ISM’s vision is to foster a prosperous, sustainable world. ISM empowers and leads the profession through the ISM® Report On Business®, its highly regarded certification and training programs, corporate services, events and assessments. The ISM® Report On Business®, Manufacturing, Services, and Hospital are three of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit: www.ismworld.org.

    The text version of the public Hospital ISM® Report On Business® is posted on ISM®‘s website at www.ismrob.org on the fifth business day* of every month at 10:00 a.m. ET.

    The next Hospital ISM® Report On Business® featuring July 2025 data will be released at 10:00 a.m. ET on Thursday, August 7, 2025.

    *Unless the New York Stock Exchange is closed.

    Contact:       

    Rose Marie Goupil


    Report On Business® Analyst


    ISM®, ROB/Program Manager


    Tempe, Arizona


    +1 480.752.6276, ext. 3005


    Email: [email protected]

    SOURCE Institute for Supply Management

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  • Envoy Air takes the employee experience to new heights with Samsung technology

    Envoy Air takes the employee experience to new heights with Samsung technology

    While large regional jets are at the heart of Envoy Air’s fleet, its focus and energy flows from each and every employee to the customers it serves. That means it’s critical to keep everyone on the team updated with relevant information about pressing items including weather events and shift schedules.

    Envoy Air is like other organizations in that it had established a corporate intranet to communicate important news. But much of its workforce — pilots, flight attendants, and ground crews — aren’t sitting at desks in front of a computer all day long.

    This makes the strategic use of digital displays an important element in employee communications. Managing those displays and keeping content updated, however, was far from streamlined.

    “When it came to screens and signage, it was higgledy-piggledy,” said Adam Simmons, Director of Communications at Envoy Air, as he explained the confusion and disorder. While some locations had higher-quality displays than others, for example, it was not uncommon for Envoy Air to rely on PowerPoint presentations loaded onto USB sticks that staff had to carry around. This fell short of its goal of offering dynamic, real-time data. “What we were displaying was a slide show, effectively.”

    Luiz da Silva, Managing Director of Strategy and Operations Analysis at Envoy Air, explained that his team initially developed an in-house application to refresh general statistics on performance dashboards by pinging a website. These dashboards were primarily located at Envoy’s headquarters, but even there, the setup required minicomputers to be manually adapted to the existing displays.

    “It wasn’t the most effective arrangement,” Simmons added. “At our headquarters, it was a wall with acrylic panels and a small monitor screen in the center. When we first moved in, we replaced the panels with stock photography, but the monitor ended up looking out of place and didn’t stand out — it just didn’t work well.”

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  • Is generative AI a job killer? Evidence from the freelance market

    Is generative AI a job killer? Evidence from the freelance market

    Over the past few years, generative artificial intelligence (AI) and large language models (LLMs) have become some of the most rapidly adopted technologies in history. Tools such as OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude now support a wide range of tasks and have been integrated across sectors, from education and media to law, marketing, and customer service. According to McKinsey’s 2024 report, 71% of organizations now regularly use generative AI in at least one business function. This rapid adoption has sparked a vibrant public debate among business leaders and policymakers about how to harness these tools while mitigating their risks.

    Perhaps the most alarming feature of generative AI is its potential to disrupt the labor market. Eloundou et al. (2024) estimate that around 80% of the U.S. workforce could see at least 10% of their tasks affected by LLMs, while approximately 19% of workers may have over half of their tasks impacted.

    To better understand the impact of generative AI on employment, we examined its effect on freelance workers using a popular online platform (Hui et al. 2024). We found that freelancers in occupations more exposed to generative AI have experienced a 2% decline in the number of contracts and a 5% drop in earnings following since the release of new AI software in 2022. These negative effects were especially pronounced among experienced freelancers who offered higher-priced, higher-quality services. Our findings suggest that existing labor policies may not be fully equipped to support workers, particularly freelancers and other nontraditional workers, in adapting to the disruptions posed by generative AI. To ensure long-term, inclusive benefits from AI adoption, policymakers should invest in workforce reskilling, modernize labor protections, and develop institutions that support human-AI complementarity across a rapidly evolving labor market.

    How might AI affect employment?

    The effect of AI on employment remains theoretically ambiguous. As with past general-purpose technologies, such as the steam engine, the personal computer, or the internet, AI may fundamentally reshape employment structures, though it remains unclear whether AI will ultimately harm or improve worker outcomes (Agrawal et al. 2022). Much depends on whether AI complements or substitutes human labor. On the one hand, AI may improve worker outcomes by boosting productivity, work quality, and efficiency. It can take over routine or repetitive tasks, allowing humans to focus on strategic thinking, creativity, or interpersonal interactions. This optimistic view has been championed by scholars such as Brynjolfsson and McAfee (2014), who argue that technology can augment productivity and increase the value of human capital when paired with the right skills. Brynjolfsson et al. (2025) and Noy and Zhang (2023) find that access to AI tools increased productivity in customer support centers and writing tasks.

    Nevertheless, substitution remains a real risk. When AI can perform a particular set of tasks at equal quality and lower cost than a human employee, the demand for human labor in those areas may decline. Acemoglu and Restrepo (2020) argue that automation may reduce labor demand unless it is accompanied by the creation of new tasks in which humans maintain a comparative advantage. Full substitution may be cost-effective for firms but could lead to severe economic and social consequences such as widespread layoffs and unemployment.

    In contrast to past technologies, where the types of workers affected were relatively predictable, the impact of AI is harder to anticipate. As a general-purpose technology, AI may disrupt a broad range of occupations in varied and uneven ways. These dynamics are unlikely to affect all workers equally. High-skill workers with access to complementary tools may benefit, while mid-skill workers, whose tasks are more easily replicated by AI, may be displaced or pushed into lower-paying jobs. Conversely, if AI democratizes access to services and information and reduces the returns to specialized human capital, it could undermine the economic position of those previously seen as secure in creative or professional roles, potentially reducing inequality.

    Evaluating the direct effect of AI on employment in the short run empirically is challenging. To begin with, it is often difficult to determine whether changes in hiring or separations are driven by AI or by other unobserved industry-, organization-, or employee-level factors. In addition, traditional employment contracts tend to be rigid and cannot quickly adjust to technological changes. They also tend to involve a bundle of varied tasks such as responding to emails, attending meetings, managing subordinates, and interacting with clients. In its current form, AI may be effective at automating some of these tasks but is not yet advanced enough to fully replace a human worker. As a result, early adoption of AI might not be reflected in conventional employment statistics.

    AI in online labor markets

    To overcome these limitations, our recent paper, published in Organization Science (Hui et al. 2024), adopts a different empirical strategy: We focus on online labor markets, namely Upwork, one of the world’s largest online freelancing platforms in the world. The platform operates as a spot market for short-term, usually remote, projects. Prospective employers on the platform can post various jobs offering either fixed or hourly compensation. Jobs span across a range of categories including web development, graphic design, administrative support, digital marketing, legal assistance, and so forth. They usually have a clear timeline and/or well-defined deliverables. Once the jobs are posted freelancers may submit bids offering their services, and, after some negotiation process, one or more freelancers are hired to complete the job.

    This setting offers several advantages: Job postings are typically short-term, contracts are flexible, and the platform provides detailed, transparent data on employment history and freelancer earnings. Freelancers often take on and complete multiple projects per month, generating high-frequency data ideal for short-term analysis.

    To examine how these interactions are affected by the release of generative AI, we focus on two types of AI models. First, image-based models, specifically DALL-E2 and Midjourney, which were launched within a month of each other in early 2022. These tools marked a major breakthrough in image-generation capabilities, offering the public unprecedented public access to AI tools that could produce high-quality visuals from text prompts. Second, text-based models, specifically the launch of ChatGPT in November 2022. ChatGPT was the first commercial-grade text-based AI model made broadly available. ChatGPT’s release was a watershed moment, attracting over 100 million active users within a couple of months and marking the beginning of mass adoption of generative AI.

    Using these model launches as natural experiments, we compare the change in freelancer outcomes in AI-affected and less-affected occupations before and after the launch of the AI tools. Building on previous research as well as exploratory data analysis, we identified specific freelancers offering services in domains more likely to be affected by the different types of AI. For example, copyeditors and proofreaders are likely to be impacted by text-based AI models like ChatGPT, while graphic designers are more likely to be affected by image-based models like DALL-E2. Other categories, such as administrative services, video editing, and data entry, expected to experience little or no direct impact from these early AI tools.

    Our analysis reveals that freelancers operating in domains more exposed to generative AI were disproportionately affected by the release of ChatGPT. Specifically, we find that freelancers providing services such as copyediting, proofreading, and other text-heavy tasks experienced a decline of approximately 2% in the number of new monthly contracts. In addition to reduced job flow, these freelancers also saw a roughly 5% decrease in their total monthly earnings on the platform. These effects suggest a significant disruption in the demand for services that can be replicated by AI. Importantly, we observe similar patterns following the release of image-based models such as DALL-E2 and Midjourney. Despite the fact that these tools were released at different times and affected a distinct set of services, the magnitude of the impact was identical to what we observe in text-based models.

    These are sizable effects, especially considering how recently these technologies became available. To put these changes in perspective, the observed declines are comparable in magnitude to those estimated in studies of other major automation technologies such as industrial robots and task automation (Acemoglu and Restrepo 2023). They are also similar to the labor market impacts of large-scale policy interventions, including changes in the minimum wage and access to unionization. Moreover, while our data covers only the first six to eight months following the release of these AI models, the negative trend has been persistent over that time. In fact, rather than fading after the initial release, the declines in both employment and compensation continue to grow, suggesting our findings represent more than merely short-term shocks or transitional responses. Instead, they likely reflect shifts in how certain services are valued and delivered in an AI-augmented economy. We conjecture that as AI capabilities improve and adoption expands, these trends will not only persist but may accelerate, potentially leading to broader reductions in employment and earnings across occupations.

    The role of worker experience

    Having documented the negative average effect of generative AI on employment outcomes on the platform, we next turn to evaluating whether certain freelancer characteristics can mitigate, or potentially exacerbate, these effects. One particular dimension of interest is worker quality and experience. Prior research on technological change suggests that high-skill labor, particularly those engaged in cognitively demanding or creative tasks, tends to be more resilient to adverse technology shocks. The conventional wisdom holds that providing higher- services should, to some extent, shield freelancers from displacement, as their work may be harder to automate or replicate (Acemoglu and Autor 2011; Autor et al. 2003).

    Examining the impact of AI across the distribution of worker quality reveals a somewhat surprising pattern: Not only are high-skill freelancers not insulated from the adverse effects but they are, in fact, disproportionately affected. Among workers within the same occupation, those with stronger past performance—as measured by client feedback, contract history, and other platform-based reputational metrics—experience larger declines in both the number of new contracts and total monthly earnings.

    This finding highlights a critical and somewhat counterintuitive interaction between artificial and human expertise. Generative AI appears to be “leveling the playing field” by compressing performance differences across the skill spectrum. One potential explanation is that, with tools like ChatGPT and DALL-E2, less experienced or lower-rated freelancers can now produce outputs that in many cases approximate the quality associated only with top-tier talent. As a result, clients may no longer perceive as much value in paying a premium for high-reputation workers, particularly when lower-cost alternatives can generate comparable results.

    Thus, as discussed earlier, generative AI represents a fundamentally different kind of technological advance. This dynamic stands in contrast to prior waves of technological change, where advanced tools often complemented highly skilled labor and widened the productivity gap between top and bottom performers (Per Krusell et al. 2000). As a result, its disruptive potential extends across the entire skill distribution, including those at the very top. The early effects of generative AI suggest that it may reduce the dispersion of earnings and opportunities. This interpretation is consistent with earlier findings that the marginal returns to technology adoption are often highest for those with lower initial productivity who gain more from the new technology.

    Implications for policy

    Our study provides some of the earliest empirical evidence on the labor market effects of generative AI, but it is also important to recognize its limitations. Examining the effect on freelancers is appealing for the reasons stated above but may not fully capture the dynamics of traditional employment arrangements or long-term contractual relationships. Still, the findings highlight the fact that certain worker groups, such as freelancers, who often lack formal labor protections and social safety nets, benefits, or bargaining power, are uniquely exposed to technological disruptions. For example, workers in more flexible work arrangements lack access to employer-sponsored retirement savings and unemployment insurance and have faced legal challenges in forming labor unions. Existing labor relations and regulations may thus not be well equipped to address the challenges posed by emerging technologies. As the nature of work continues to evolve, policies may need to be rethought to account for more fast-moving and AI-enhanced freelancer markets, especially in sectors highly vulnerable to automation.

    While our analysis focuses on well-defined, task-oriented freelance jobs, which are arguably more amenable to AI substitution, recent research finds that generative AI may also affect more complex, collaborative work. Dell’Acqua et al. (2025), for example, show that AI can even substitute for team-based professional problem-solving and contribute meaningfully to real-world business decisions. This suggests that the impact of AI may extend beyond routine or isolated tasks and begin to reshape how high-skilled, interdependent work is performed. Predicting the future trajectory of AI remains difficult, as the technology continues to evolve rapidly. As its capabilities grow, AI is likely to be adopted across a wider range of industries, including those once thought resistant to automation, further reshaping the relationship between labor and technology. Closely tracking these developments through initiatives like the Workforce Innovation and Opportunity Act (WIOA) and other federal labor data programs is essential for informing timely and effective policy.

    Historical evidence from past general-purpose technologies suggests that while short-term substitution effects can displace workers, longer-term gains often emerge through task reorganization, workforce reskilling, and the creation of entirely new roles. In the case of generative AI, true progress may come not just from automating existing tasks, but from fundamentally reshaping how organizations operate and the types of goods and services they offer. At the same time, reductions in task costs in one sector can spur innovation and economic activity in others. For example, Brynjolfsson et al. (2019) show that AI-driven machine translation at eBay significantly increased cross-border trade and improved consumer outcomes. Similarly, as generative AI continues to evolve, it may enable the emergence of new occupations, business models, and collaborative structures.

    Realizing these long-term benefits will require sustained investment in education, training, and institutional reform that promotes human-AI complementarity. Policymakers should not only help workers adapt to near-term disruptions but also foster an environment in which AI enhances, rather than replaces, human capabilities. It will also require creating conditions that incentivize firms to reorganize workflows and adopt AI in ways that amplify, rather than erode, the value of human labor. In addition, labor market institutions must evolve to keep pace with the new realities of work. This involves not only rethinking social safety nets but by also promoting inclusive access to AI tools and training opportunities. If designed thoughtfully, policy can ensure that the next wave of AI adoption delivers broad-based benefits rather than deepening existing disparities.

    • References

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      Acemoglu, Daron, and Pascual Restrepo. 2020. “Robots and Jobs: Evidence from US Labor Markets.” Journal of Political Economy 128 (6): 2188–2244. https://doi.org/10.1086/705716.

      Agrawal, Ajay B., Joshua S. Gans, and Avi Goldfarb. 2022. Power and Prediction: The Disruptive Economics of Artificial Intelligence. Boston, Mass: Harvard business review press.

      Autor, D. H., F. Levy, and R. J. Murnane. 2003. “The Skill Content of Recent Technological Change: An Empirical Exploration.” The Quarterly Journal of Economics 118 (4): 1279–1333. https://doi.org/10.1162/003355303322552801.

      Brynjolfsson, Erik, Xiang Hui, and Meng Liu. 2019. “Does Machine Translation Affect International Trade? Evidence from a Large Digital Platform.” Management Science 65 (12): 5449–60. https://doi.org/10.1287/mnsc.2019.3388.

      Brynjolfsson, Erik, Danielle Li, and Lindsey Raymond. 2025. “Generative AI at Work.” The Quarterly Journal of Economics 140 (2): 889–942. https://doi.org/10.1093/qje/qjae044.

      Brynjolfsson, Erik, and Andrew McAfee. 2016. The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. First published as a Norton paperback. New York London: W. W. Norton & Company.

      Dell’Acqua, Fabrizio, Charles Ayoubi, Hila Lifshitz-Assaf, Raffaella Sadun, Ethan R. Mollick, Lilach Mollick, Yi Han, et al. 2025. “The Cybernetic Teammate: A Field Experiment on Generative AI Reshaping Teamwork and Expertise.” Preprint. SSRN. https://doi.org/10.2139/ssrn.5188231.

      Eloundou, Tyna, Sam Manning, Pamela Mishkin, and Daniel Rock. 2024. “GPTs Are GPTs: Labor Market Impact Potential of LLMs.” Science 384 (6702): 1306–8. https://doi.org/10.1126/science.adj0998.

      Hui, Xiang, Oren Reshef, and Luofeng Zhou. 2024. “The Short-Term Effects of Generative Artificial Intelligence on Employment: Evidence from an Online Labor Market.” Organization Science 35 (6): 1977–89. https://doi.org/10.1287/orsc.2023.18441.

      Krusell, Per, Lee E. Ohanian, Jose-Victor Rios-Rull, and Giovanni L. Violante. 2000. “Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis.” Econometrica 68 (5): 1029–53. https://doi.org/10.1111/1468-0262.00150.

      Noy, Shakked, and Whitney Zhang. 2023. “Experimental Evidence on the Productivity Effects of Generative Artificial Intelligence.” Science 381 (6654): 187–92. https://doi.org/10.1126/science.adh2586.

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