Category: AI

  • U.S. Government Uses for Artificial Intelligence

    U.S. government investment in artificial intelligence (AI), which amounted to $4.38 billion in 2022, is designed to benefit not only national security and government operations but also American society. This two-pronged approach has led to discoveries about the advantages of AI in areas beyond governance, including healthcare, transportation, the environment, and others.

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    Starting with an endorsement of “man-machine cooperation” by then-President John F. Kennedy’s Science Advisory Committee in 1962, numerous presidential administrations have encouraged AI research and knowledge, including in the workforce, education, and government. These efforts included an Obama administration 2016 report titled “Preparing for the Future of Artificial Intelligence;” the Trump administration’s “American AI Initiative,” launched in 2019; and the Biden administration’s executive order on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” issued in October 2023.234

    As AI technology advances, the government is exploring ways to harness and leverage it in its operations while setting and maintaining appropriate guardrails.

    KEY TAKEAWAYS

    • Artificial intelligence (AI) has become increasingly important in various sectors, including government services.
    • The U.S. government is actively harnessing AI technologies to improve its services and operations.
    • AI offers numerous benefits in areas such as healthcare, transportation, the environment, and benefits delivery.
    • The federal government has initiated various projects and initiatives to leverage AI technologies.
    • Responsible use of AI in government requires establishing strong guardrails and addressing ethical and privacy concerns.

    AI Initiatives in the U.S. Government

    President Joe Biden’s October 2023 executive order (EO) on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” provides extensive guidance for government involvement in AI.5

    Primary Directives

    The Biden EO directs U.S. government agencies to establish safety and security standards, protect privacy, advance equity and civil rights, promote innovation and competition, and advance American AI leadership worldwide. An overview of the document’s eight primary directives follows.654

    New Standards for AI Safety and Security

    The EO directs government agencies to ensure robust, reliable, repeatable, and standardized testing and evaluations of AI systems. The administration will also help develop adequate labeling and mechanisms to ensure the origin of AI content.

    Promoting Innovation and Competition

    AI-related education, training, development, research, and capacity investments must be leveraged to address specific intellectual property (IP) questions. Agencies must promote competition by providing small developers access to technical assistance and encouraging the Federal Trade Commission (FTC) to exercise its authority to enforce competition and protect consumers.

    Supporting Workers

    Government departments must develop principles and best practices to mitigate the harms and maximize the benefits of AI for workers. This will require addressing job displacement, labor standards, workplace equity, health and safety, and data collection.

    Advancing Equity and Civil Rights

    Government use of AI will comply with all federal laws and promote substantive oversight and engagement with all communities to protect against unlawful discrimination and abuse. Coordination between the U.S. Department of Justice (DOJ) and federal civil rights offices will play a significant role in these efforts.

    Standing Up for Consumers, Patients, and Students

    To protect consumers and promote the responsible use of AI in domains such as healthcare and education, the administration will enforce existing consumer protection laws and enact safeguards against fraud, unintended bias, privacy violations, and other harmful effects. This will include advancing the responsible use of AI in developing affordable and lifesaving drugs and advancements in other health-related areas.

    Protecting Americans’ Privacy

    The lawful, secure collection, use, and retention of data must promote privacy by directing federal agencies to use privacy-enhancing technologies (PETs) where beneficial. Congress is also urged to pass bipartisan data privacy legislation.

    Ensuring Responsible and Effective Government Use of AI

    Agencies will ensure the responsible government deployment of AI and work to modernize federal AI infrastructure in various domains, such as regulation, governance, benefits, procurement, and security. The government will further accelerate hiring AI professionals as part of a government-wide AI talent surge led by the Office of Personnel Management, the U.S. Digital Service, the U.S. Digital Corps, and the Presidential Innovation Fellowship.

    Advancing American Leadership Abroad

    Government agencies are directed to engage with international partners to develop a framework to manage AI risks while advancing American leadership in safety, security, trust, and AI development. This will include the expansion of bilateral, multilateral, and multistakeholder collaborations on AI; accelerated development and implementation of vital AI standards with international partners; and promoting safe, responsible, rights-affirming development and deployment of AI worldwide.

    711

    The number of American AI government use cases, as of September 20236

    AI Initiatives and Projects in Government Agencies

    President Biden’s October 2023 executive order mandates U.S. government agencies to pursue various AI initiatives. For example, the president directed the organization of an interagency council to coordinate AI development, assess the ability of federal agencies to adopt AI, and address national security risks and benefits.4

    Highlights of the main initiatives for different agencies are shown in the table below.

    Agency Directive
    Department of Agriculture (USDA) Issue guidance on automated systems for public benefits programs
    Department of Commerce Develop guidance for authenticating AI-generated content
    Department of Defense Establish a pilot program to identify vulnerabilities in critical systems
    Department of Education Develop guidance on responsible AI use in education
    Department of Health and Human Services (HHS) Prioritize responsible AI development and create an HHS AI Task Force
    Department of Housing and Urban Development (HUD) Issue guidance on fair lending and housing laws to prevent discrimination by AI
    Department of Energy Coordinate responsible AI governance across the government
    Department of Homeland Security Ensure that AI development aligns with U.S. values
    Department of Justice (DOJ) Identify best practices for recruiting and hiring law enforcement professionals with AI skills
    Department of Labor Analyze agency abilities to support workers displaced by AI
    Department of State Expand international partnerships in AI
    Department of Transportation (DOT) Examine the safe use of AI in transportation
    Department of the Treasury Review antitrust guidance and enforcement policies related to AI
    Department of Veterans Affairs (VA) Host AI Tech Sprint competitions
    Federal Trade Commission (FTC) Protect consumers and enforce competition in the sector
    Federal Communications Commission (FCC) Examine how AI can aid in the fight against unwanted robocalls and robotexts
    General Services Administration (GSA) Prioritize funding for AI projects for at least one year
    National Science Foundation (NSF) Fund and launch at least one NSF Regional Innovation Engine
    Office of Personnel Management Coordinate a pooled hiring action to recruit AI talent and develop guidelines on using generative AI by the federal workforce
    Patent Office Publish guidance on how to address the use of AI in patents
    Small Business Administration (SBA) Support small businesses innovating with AI and assess existing programs’ eligibility criteria for AI expenses

    Ensuring Responsible Use of AI in Government

    Government agencies regularly call for the responsible use of AI. This includes mandates for compliance with laws that protect privacy, civil rights, and civil liberties. The benefits of AI come with potential pitfalls that create a need to establish strong guardrails to ensure AI keeps people safe and doesn’t violate individual rights.

    AI Safety and Security

    Section 4 of the Biden EO addresses AI system vulnerabilities through the Defense Production Act of 1950. AI companies must report safety test results and other information for systems that may pose national security or infrastructure risks. Federal agencies must establish guidance and standards for safe AI development and use and promote research and collaboration to address potential risks. Workforce development plans for integrating AI technology are also required.4

    Ethical Considerations and Privacy Concerns

    AI has raised ethical concerns about privacy, bias, accountability, and transparency. Despite ideological differences between administrations, government AI policies have attempted to address these concerns since 2016. AI systems require large amounts of data, which can raise privacy concerns. Bias can result from training AI systems on non-representative data, leading to discriminatory outcomes. AI decisions can have significant impacts on individuals, making accountability critical. The transparency of AI decision-making processes is also important for individuals to understand how and why decisions are made.4

    FAST FACT

    The AI for autonomous situational awareness system is one use-case example for the Department of Homeland Security that was proposed for customs and border protection. It is intended to use Internet of Things sensors, high-resolution cameras, and motion sensors to covertly detect and analyze illicit border crossings in remote locations while creating a low-cost, low-power footprint.7

    Benefits of Artificial Intelligence in Government Services

    AI can offer several benefits to the government, such as improved efficiency, accuracy, and decision making. AI can automate repetitive tasks, freeing up employees to focus on higher-value tasks. AI can eliminate errors and inconsistencies for improved accuracy and consistency of government services. AI can facilitate data-driven and evidence-based decisions, as well as personalized and responsive services. Additionally, AI can save costs by reducing the need for manual labor and streamlining processes.68

    AI has shown benefits in specific areas, such as healthcare, transportation, the environment, and delivery of government benefits. HHS leverages AI to solve problems and improve patient outcomes. The DOT uses AI in three areas: drone operations, traffic management, and railroad safety. AI is used in the environment to monitor natural resources and predict natural disasters. AI can also reduce the workload for workers and assist caseworkers. The Social Security Administration (SSA) uses data analytics and computer systems to process claims more efficiently.910111213

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    Challenges and the Future of AI in Government Services

    AI constantly evolves, and potential advancements include improving accuracy and efficiency, creating more human-like systems, personalizing medicine, and addressing global challenges.

    However, implementing AI in government services has several challenges, such as a lack of skilled personnel, data privacy and security concerns, integration with existing systems, and transparency and accountability. Addressing these challenges requires a collaborative approach involving government agencies, AI developers, domain experts, and citizens. Governments need to invest in training, establish clear policies and guidelines, and engage citizens to build trust and ensure accountability.

    How Is Artificial Intelligence Being Used in Healthcare by the U.S. Government?

    One of AI’s most significant applications is in medical imaging to improve accuracy and speed up diagnosis. The U.S. government also uses AI to analyze health data in order to identify trends and patterns that can inform public health policy decisions.15

    What Are the Potential Benefits of AI in Improving Transportation Services?

    AI-powered technologies can be used to optimize traffic flow, reduce congestion, and improve overall road safety. Additionally, AI can predict demand for transportation services, enabling providers to allocate resources more efficiently and reduce wait times. AI enables transportation providers to improve routes and schedules and provide more personalized services to passengers.

    What Initiatives Has the U.S. Government Undertaken to Leverage AI Technologies?

    Initiatives include an Obama administration 2016 report titled “Preparing for the Future of Artificial Intelligence;” the Trump administration’s “American AI Initiative,” launched in 2019; and the Biden administration’s executive order on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” issued in October 2023.234

    Furthermore, the National Institute of Standards and Technology (NIST) has been tasked with developing AI standards, while the National Science Foundation (NSF) is funding research in AI and machine learning. Additionally, several federal agencies, including the Department of Defense and the Department of Energy, are investing in AI technologies to enhance their operations and capabilities.

    What Are the Ethical Considerations and Privacy Concerns Associated with AI in Government?

    Law enforcement agencies’ use of facial recognition technology has raised concerns about surveillance and potential privacy violations. Additionally, there are concerns about the potential for AI to perpetuate bias and discrimination, particularly in the criminal justice system. The use of AI in decision-making processes, such as those related to hiring or lending, could also have unintended consequences and reinforce existing biases.

    How Much Money Has the U.S. Government Spent on AI?

    According to the most recent figures, the U.S. government spent approximately $4.8 billion on AI research and development in 2022. This includes funding for various agencies such as the National Science Foundation, the Department of Defense, and the Department of Energy. This funding is expected to increase in the coming years, as AI plays an increasingly important role in government operations.1

    The Bottom Line

    The potential of AI to transform government services and improve public welfare is immense. AI can help streamline bureaucratic processes, enhance decision-making capabilities, and enable more efficient delivery of public services.

    For example, AI-powered chatbots can provide 24/7 customer support, reducing wait times and improving the overall experience for citizens. AI can also be used to analyze vast amounts of data to identify patterns and trends, which can inform policy decisions and resource allocation.

    By harnessing the power of AI, the government can enhance its capacity to serve its citizens and improve the overall well-being of its communities. Additionally, the use of AI in government services may be imperative to achieve efficiency, accuracy, and cost containment, especially as both the number of government services and the population continue to expand.

    While advantages of AI—especially in healthcare, transportation, the environment, and benefits delivery—are numerous, responsible use of AI in government requires establishing strong guardrails and addressing ethical and privacy concerns.

  • Artificial General Intelligence: Concepts, Potential, and Examples

    KEY TAKEAWAYS

    • AGI aims for human-level AI capable of learning and solving complex problems independently.
    • Opinions differ on AGI’s possibility and timeline; some believe it’s decades away, others think it’s impossible.
    • Techniques for developing AGI include neural networks, deep learning, and simulating the human brain.
    • GPT-4 is cited as a potential early example of AGI, but opinions vary on its capabilities.
    • Achieving AGI would significantly impact technology, systems, and industries globally.

    Artificial general intelligence (AGI) is a branch of theoretical artificial intelligence (AI) research working to develop AI with a human level of cognitive function, including the ability to self-teach. However, not all AI researchers believe that it is even possible to develop an AGI system, and the field is divided on what factors constitute and can accurately measure “intelligence.”12

    Other terms for AGI include strong AI or general AI. These theoretical forms of AI stand in contrast to weak or narrow AI, which can perform only specific or specialized tasks within a predefined set of parameters. AGI would be able to autonomously solve a variety of complex problems across different domains of knowledge.2

    What Is Artificial General Intelligence (AGI)?

    Opinions differ as to how AGI might eventually be realized since it remains a theoretical concept. According to AI researchers Ben Goertzel and Cassio Pennachin, “‘general intelligence’ does not mean exactly the same thing to all researchers.”3

    However, “loosely speaking,” AGI refers to “AI systems that possess a reasonable degree of self-understanding and autonomous self-control, and have the ability to solve a variety of complex problems in a variety of contexts, and to learn to solve new problems that they didn’t know about at the time of their creation.”3

    Because of the nebulous and evolving nature of both AI research and the concept of AGI, there are different theoretical approaches to how it could be created. Some of these include techniques such as neural networks and deep learning, while other methods propose creating large-scale simulations of the human brain using computational neuroscience.4

    Key Approaches in AGI Research

    Computer scientists and artificial intelligence researchers continue to develop theoretical frameworks and work on the unsolved problem of AGI. Goertzel has defined several high-level approaches that have emerged in the field of AGI research and categorizes them as follows:

    • Symbolic: A symbolic approach to AGI holds the belief that symbolic thought is “the crux of human general intelligence” and “precisely what lets us generalize most broadly.”
    • Emergentist: An emergentist approach to AGI focuses on the idea that the human brain is essentially a set of simple elements (neurons) that self-organize complexly in reaction to the experience of the body. In turn, it might follow that a similar type of intelligence might emerge from re-creating a similar structure.
    • Hybrid: As the name suggests, a hybrid approach to AGI sees the brain as a hybrid system in which many different parts and principles work together to create something in which the whole is greater than the sum of its parts. By nature, hybrid AGI research varies widely in its approaches.
    • Universalist: A universalist approach to AGI centers on “the mathematical essence of general intelligence” and the idea that once AGI is solved in the theoretical realm, the principles used to solve it can be scaled down and used to create it in reality.5

    Comparing AGI and AI: What’s the Difference?

    While AI encompasses a vast range of technologies and research avenues that deal with machine and computer cognition, AGI (or AI with a level of intelligence equal to that of a human) remains a theoretical concept and research goal. 

    AI researcher Peter Voss defines general intelligence as having “the ability to learn anything (in principle).” Under this criteria, AGI’s learning ability would need to be “autonomous, goal-directed, and highly adaptive.” AGI is generally conceptualized as being AI that can match the cognitive capacity of humans and is categorized under the label of strong AI.6

    In comparison, most of the AI available at this point would be categorized as weak or narrow AI, as it was developed to focus on specific tasks and applications. It’s worth noting that these AI systems can still be incredibly powerful and complex, with applications ranging from autonomous vehicle systems to voice-activated virtual assistants; they merely rely on some level of human programming for training and accuracy.2

    Differences Between AGI and AI
      AGI  AI 
    What Is It?  Artificial intelligence developed with a human level of cognitive function Technology that simulates human learning, problem-solving, and comprehension
    Status Theoretical Already in use
    Learning Capability  Learns like a human  Confined to limits set by the program 
    Uses Reasoning, problem-solving, and other functions like a human without manual intervention Human-like reasoning and problem-solving with manual intervention

    FAST FACT

    Artificial super intelligence (ASI) is also part of the strong AI category. But, it refers to the concept of AI that surpasses the function of the human brain.6

    Predicting the Future of AGI: Insights and Possibilities

    The year when we will be able to achieve AGI (or whether we will even be able to create it at all) is a topic of much debate. Several notable computer scientists and entrepreneurs believe that AGI will be created within the next few decades:

    • Louis Rosenberg, CEO and chief scientist of Unanimous AI, predicted in 2020 that AGI would be achieved by 2030.7
    • Ray Kurzweil, Google’s director of engineering and a pioneer of pattern recognition technology, believes that AI will reach “human levels of intelligence” in 2029 and surpass human intelligence by 2045.8
    • Jürgen Schmidhuber, co-founder and chief scientist at NNAISENSE and director of Swiss AI lab IDSIA, estimates AGI by around 2050.

    The future of AGI remains an open-ended question and is an ongoing research pursuit. Some scholars even argue that AGI cannot and will never be realized. AI researcher Goertzel explained that it’s difficult to objectively measure the progress toward AGI, as “there are many different routes to AGI, involving integration of different sorts of subsystems” and there is no “thorough and systematic theory of AGI.” Rather, it’s a “patchwork of overlapping concepts, frameworks, and hypotheses” that are “often synergistic and sometimes mutually contradictory.”
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    Sara Hooker of research lab Cohere for AI told Wired, “It really is a philosophical question. So, in some ways, it’s a very hard time to be in this field, because we’re a scientific field.”10

    Early Instances and Future Examples of AGI

    Because AGI remains a developing concept and field, it is debatable whether any current examples of AGI exist.

    Researchers from Microsoft (MSFT), in tandem with OpenAI, claim that GPT-4 “could reasonably be viewed as an early (yet still incomplete) version of an AGI system.” This is due to its “mastery of language” and its ability to “solve novel and difficult tasks that span mathematics, coding, vision, medicine, law, psychology and more, without needing any special prompting” with capabilities that are “strikingly close to human-level performance.”11 However, Sam Altman, CEO of ChatGPT, says that ChatGPT is not even close to an AGI model.

    In the future, examples of AGI applications might include advanced chatbots and autonomous vehicles, both domains in which a high level of reasoning and autonomous decision making would be required.

    What Is an Example of Artificial General Intelligence?

    Researchers from Microsoft and OpenAI claim that GPT-4 could be an early but incomplete example of AGI. As AGI has not yet been fully achieved, future examples of its application might include situations that require a high level of cognitive function, such as autonomous vehicle systems and advanced chatbots.11

    How Far Off Is Artificial General Intelligence?

    Because AGI is still a theoretical concept, estimations as to when it might be realized vary. Some AI researchers believe that it is impossible, while others assert that it is only a matter of decades before AGI becomes a reality.

    What Is the Difference Between Artificial Intelligence and Artificial General Intelligence?

    AI encompasses a wide range of current technologies and research avenues in the field of computer science, mostly considered to be weak AI or narrow AI. Conversely, researchers in the field of AGI are working on developing strong AI, which can match the intelligence of humans.

    Is Artificial General Intelligence Smarter than Humans?

    Most researchers define AGI as having a level of intelligence that is equal to the capacity of the human brain, while artificial super intelligence is a term ascribed to AI that can surpass human intelligence.

    What Year Will AGI Be Fully Developed?

    Researchers have differing opinions regarding when they believe AGI can be achieved, with some predicting its creation as soon as 2030 to 2050, and some believing that it is downright impossible.12

    The Bottom Line

    The concepts of AI and AGI have long captured the human imagination, and explorations of the ideas abound in stories and science fiction. Recently, scholars have argued that even mythology dating from as far back as ancient Greece can be seen to reflect our fascination with artificial life and intelligence.13

    There are currently many different approaches toward creating AI that can think and learn for itself and apply its intelligence outside the bounds of a previously specified range of tasks. Due to the theoretical and multifaceted nature of this research, it is difficult to say if and when AGI might be achieved. However, if it does become a reality, one thing is certain: It will have fundamental and wide-ranging impacts across our technologies, systems, and industries.

  • Artificial Intelligence (AI): What It Is, How It Works, Types, and Uses

    Artificial intelligence (AI) combines data, algorithms, and computing power to mimic or augment human thinking and problem-solving.

    A subset of artificial intelligence is machine learning (ML), a concept that computer programs can automatically learn from and adapt to new data without human assistance.

    KEY TAKEAWAYS

    • Artificial intelligence (AI) technology allows computers and machines to simulate human intelligence and problem-solving capabilities.
    • Algorithms are part of the structure of AI, where simple algorithms are used in simple applications, while more complex ones help frame strong artificial intelligence.
    • AI technology is apparent in computers that play chess, self-driving cars, and banking systems to detect fraudulent activity.
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    How Artificial Intelligence (AI) Works

    Artificial intelligence commonly brought to mind the implementation of robots. As technology evolved, previous benchmarks that define artificial intelligence became outdated.

    Technologies that enable artificial intelligence include:1

    • Computer vision enables computers to identify objects and people in pictures and photos.
    • Natural language processing (NLP) allows computers to understand human language.
    • Graphical processing units are computer chips that help computers form graphics and images through mathematical calculations.
    • The Internet of Things is the network of physical devices, vehicles, and other objects embedded with sensors, software, and network connectivity, that collect and share data.
    • Application programming allows two or more computer programs or components to communicate with each other.

    FAST FACT

    Algorithms often play a part in the structure of artificial intelligence, where simple algorithms are used in simple applications, while more complex ones help frame strong artificial intelligence.

    Types of Artificial Intelligence

    Narrow AI: Also known as weak AI, this system is designed to carry out one particular job. Weak AI systems include video games and personal assistants like Amazon’s Alexa and Apple’s Siri. Users ask the assistant a question, which it answers for you.

    General AI: This type includes strong artificial intelligence systems that carry on the tasks considered to be human-like. They tend to be more complex and complicated and can be found in applications like self-driving cars or hospital operating rooms.

    IMPORTANT

    Super AI is a strictly theoretical type of AI and has not yet been realized. Super AI would think, reason, learn, and possess cognitive abilities that surpass those of human beings.

    Using Artificial Intelligence

    Artificial intelligence can be applied to many sectors and industries, including credit scoring, law enforcement, and the healthcare industry. In a medical setting, it can be useful for suggesting drug dosages, identifying treatments, and aiding in surgical procedures in the operating room.

    Other examples of machines with artificial intelligence include computers that play chess and self-driving cars. AI has applications in the financial industry, where it detects and flags fraudulent banking activity. Applications for AI can help streamline and make trading easier.

    AI research began in the 1950s and was used in the 1960s by the U.S. Department of Defense when it trained computers to mimic human reasoning.1  However, it was not until 2022 that AI entered the mainstream with applications of the Generative Pre-Trained Transformer (GPT). The most popular applications are OpenAI’s DALL-E text-to-image tool and ChatGPT.23 According to a Q4 2024 survey by Deloitte, 73% of respondents who are leaders in the AI industry expect generative AI to transform their organizations by 2027.4

    What Is Reactive AI?

    Reactive AI is a type of narrow AI that uses algorithms to optimize outputs based on a set of inputs. Chess-playing AIs, for example, are reactive systems that optimize the best strategy to win the game. Reactive AI tends to be fairly static, unable to learn or adapt to novel situations.

    What Are the Concerns Surrounding the Use of AI?

    Many are concerned with how artificial intelligence may affect human employment. With many industries looking to automate certain jobs with intelligent machinery, there is a concern that employees would be pushed out of the workforce. Self-driving cars may remove the need for taxis and car-share programs, while manufacturers may easily replace human labor with machines, making people’s skills obsolete.

    How Is AI Used in Healthcare?

    In healthcare settings, AI is used to assist in diagnostics. AI can identify small anomalies in scans to better triangulate diagnoses from a patient’s symptoms and vitals. AI can classify patients, maintain and track medical records, and deal with health insurance claims.

    The Bottom Line

    Artificial intelligence (AI) is an evolving technology that tries to simulate human intelligence using machines. AI encompasses various subfields, including machine learning (ML) and deep learning, which allow systems to learn and adapt in novel ways from training data. It has vast applications across multiple industries, such as healthcare, finance, and transportation. While AI offers significant advancements, it also raises ethical, privacy, and employment concerns.

  • Why People Confuse AI with Quantum Computing and Why You Should Care

    Key Takeaways

    • AI is generative software that “learns” patterns from data to make predictions or decisions.
    • Quantum computing is a new kind of hardware that uses quantum bits (qubits) to process many possibilities simultaneously, potentially solving problems too complex for today’s computers.
    • AI and quantum may converge in the future: quantum could supercharge certain AI tasks, while AI is already being used to stabilize quantum systems.

    Most people think AI and quantum computing are essentially the same thing, which is futuristic technology that’s hyped in headlines and driving significant stock market gains. It’s certainly doing the last part, but you’d be wrong to confuse these technologies otherwise.

    AI is a software capability that learns from data to automate or assist decisions, while quantum computing is hardware built on principles of quantum physics, designed to crunch calculations that would take traditional computers millennia to solve.12

    What AI Actually Is

    AI refers to algorithms, including machine learningneural networks, and large language models (LLMs), that find patterns in big data to make predictions, classify information, or make recommendations based on those patterns.2

    This includes popular applications like ChatGPT, product recommendations, fraud alerts, and self-driving features already widely available today. These systems run on traditional computers, using common hardware like CPUs and GPUs.

    What Quantum Computing Actually Is

    Instead of the 0s and 1s used in binary code, quantum computing is based on qubits (short for “quantum bits”), which can represent many possible states at once. This theoretically allows quantum machines to process vast numbers of potential solutions in parallel.1

    If this were to occur, these computers would be orders of magnitude more powerful for specific tasks than even the most advanced supercomputers, such as simulating complex molecules or searching through massive search spaces. Meanwhile, as powerful quantum computers threaten to break current encryption, computer scientists are already working on post-quantum cryptography to ensure data security in the long term.3

    Quantum devices are still limited and prone to errors today. But the long-term potential is enormous. Indeed, quantum computers are making progress, with qubit processors now able to vastly outperform classical systems—but still on very narrow, benchmark tasks. The promise is that quantum machines would eventually replace traditional computers, ushering in a new post-digital age.

    AI vs. Quantum Computing

    AI
    • Novel software architecture

    • Already mainstream

    • Focus on thinking, learning, prediction

    • Runs on classic hardware (binary code)

    Quantum Computing
    • Novel hardware architecture

    • Still experimental

    • Focus on raw data analysis and simulation

    • Runs on qubits (multistate code)

    Where the Two Meet

    The intersection of quantum and AI is likely to take two parallel paths:4

    • The first is the eventual use of quantum hardware to speed up or augment certain AI tasks, allowing models to consider far more options at once, search solution spaces faster, and tune themselves more quickly.
    • The second would see current AI methods deployed to help build and control quantum systems—keeping these delicate machines stable, automatically adjusting settings, spotting glitches early, and generally helping the hardware function for longer stretches.

    The quantum acceleration of AI tasks could lead to possible breakthroughs in medicine and biotech, materials science, weather modeling, finance, and logistics. These possibilities may be speculative, but early proofs of concept have been promising.5

    AI is already everywhere. You can chat with it in plain language, businesses use it automate some everyday tasks, and consumers allow it to personalize their experiences for many things online. Quantum computing is less visible—but could be at least as transformative. It could one day power breakthroughs in medicine, materials, green energy, and ultra-secure encryption.

  • AI, Cloud, and Ads: What’s Fueling the Mag 7’s Growth?

    Key Takeaways

    • AI and data-center infrastructure fuel record revenue across top tech firms.
    • Cloud platforms deliver high-margin recurring income for AWS, Azure, and Google Cloud.
    • Digital advertising remains a cash cow for Alphabet, Meta, and Amazon.
    • Services, ecosystems, and device adoption keep Apple resilient.
    • Tesla’s hybrid focus on EVs, energy, and autonomous driving technology gives it unique optionality.

    In recent years, the so-called “Magnificent Seven”—Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta Platforms, and Tesla—have powered much of the market’s gains. What’s behind their outsized performance isn’t just hype—it’s a layered business model built on artificial intelligence, cloud computing, advertising, and recurring services.

    Below, we break down the core growth engines that keep these companies at the top.

    How AI Became the New Growth Story

    Companies, including Nvidia, Microsoft, Alphabet, and Meta, are rapidly commercializing AI to strengthen every aspect of their businesses. For example, Nvidia’s data-center segment saw revenue climb dramatically, driven by demand for generative AI workloads and advanced computing infrastructure. As of Q3 2025, Nvidia saw record data center revenue of $51.2 billion, up 25% from Q2 2025 and up 66% from just one year ago.1

    Meanwhile, Microsoft continues integrating AI throughout its Azure cloud platform and productivity tools, while Alphabet uses AI to optimize search relevance.23 Meta relies on AI for recommendation systems and more accurate ad targeting—improvements that have contributed directly to revenue growth.4

    These companies benefit from foundational AI investments that scale across multiple products and services, allowing them to monetize the technology repeatedly.

    Cloud Computing’s Steady Revenue Power

    Cloud infrastructure remains a critical growth engine for Amazon, Microsoft, and Alphabet. Here are some key data points to explain further:

    • Amazon Web Services (AWS) produced roughly $33 billion in revenue as of Q3 2025, representing a 20% year-over-year increase.5
    • Microsoft’s Intelligent Cloud division—which includes Azure—generated roughly $30.9 billion in revenue as of Q3 2025, an increase of 40% year-over-year, beating expectations due to strong demand.6
    • Meanwhile, Google Cloud services reported around $15.2 billion in revenue for Q3 2025, reflecting expanding adoption of AI-enhanced cloud tools.3

    Across all three companies, cloud platforms are providing recurring, high-margin revenue tied to enterprise workloads, AI services, and data-heavy applications—making them foundational to long-term growth.

    Note

    Rising demand for AI computing and cloud infrastructure is creating new profit engines that could define the next decade of Big Tech growth.

    Ads Are Still Big Business

    Digital advertising remains central to Alphabet, Meta, and Amazon. According to an April 2025 report from the Interactive Advertising Bureau (IAB), U.S. digital ad market spend overall was about $258.6 billion in 2024, a 15% year-over-year increase and the highest level seen since 2021.7

    Alphabet and Meta continue to dominate global digital ad share thanks to their massive user bases and sophisticated AI-driven targeting tools.8 Meanwhile, Amazon has become one of the largest digital ad platforms that continues to grow at a double-digit pace by harnessing the power of AI and automation—Q3 2025 advertising revenue reached $17.7 billion, up 24% year-over-year.9

    AI-enhanced ad systems help businesses measure performance, optimize campaigns, and increase conversions—reinforcing revenue strength for these three companies.

    Apple’s Strength Is Its Ecosystem

    Apple’s advantage lies in its tightly connected ecosystem of hardware, software, and services—the company’s device base recently reached 2.35 billion active devices.10 Considering the sheer volume of devices, Apple has developed a massive audience for its services, such as the Apple One and iCloud+. Services revenue reached $109 billion in the 2025 fiscal year and has become the second-largest business segment, accounting for nearly a quarter of the company’s revenue.11

    Services revenue has become a key stabilizer for Apple, offsetting fluctuations in hardware cycles. This recurring income stream—combined with strong brand loyalty and premium pricing—reinforces Apple’s long-term competitive positioning.

    Tesla’s Growth Levers Beyond EVs

    Tesla remains the most unconventional member of the Magnificent Seven. While electric vehicles account for the company’s revenue, Tesla also invests heavily in battery storage, solar panels, and autonomous driving technology. Its strategy centers on building a diversified platform of energy and mobility services that can scale over time.12

    The company continues to position its autonomous driving capabilities and energy solutions as future revenue generators, which represent long-term opportunities for the EV giant.

    The Bottom Line

    The Magnificent Seven’s strength comes from diversified, scalable business engines—not just consumer demand or market sentiment. AI, cloud computing, digital advertising, massive ecosystems, and forward-looking investments in mobility and energy all contribute to their growth. These companies have developed multi-layered revenue models that reinforce one another, enabling them to stay ahead of competitors and maintain their position as the most influential companies in today’s market.

  • This Energy Provider Is the Latest to Score Big AI Data Center Deals

    KEY TAKEAWAYS

    • NextEra Energy said Monday that it struck deals with Alphabet’s Google and Meta Platforms to support AI data centers.
    • The energy provider also raised the lower end of its full-year profit forecast, and boosted its outlook for 2026.

    NextEra Energy is raking in new deals to power AI data centers.

    America’s largest energy infrastructure developer on Monday said it struck agreements with Alphabet’s (GOOGL) Google and Meta Platforms (META) to meet growing demand for energy to support AI data centers.12

    NextEra (NEE) said it plans to work with Google to build out energy infrastructure for data center campuses across the United States. As part of the deal, NextEra will also use Google Cloud AI to support its own “digital transformation” and deployment of AI.

    Separately, NextEra said Meta signed contracts for clean energy projects meant to help the tech giant meet its clean energy goals, as well as build out data center capacity.

    WHY THIS IS SIGNIFICANT

    The AI boom has lifted stocks across a wide range of industries this year, including energy as the technology is widely expected to raise demand for electricity. With its recent data center deals, NextEra is positioning itself as a beneficiary.

    Financial terms of the deals were not disclosed, though the energy provider also raised the lower end of its full-year profit forecast, and boosted its outlook for 2026, according to a regulatory filing Monday.3

    NextEra said it now expects adjusted earnings per share of $3.62 to $3.70 for 2025, compared to $3.45 to $3.70 previously, and 2026 EPS of $3.92 to $4.02, up from an earlier forecast of $3.63 to $4.4

    Shares of NextEra slipped 3% Monday amid broader market losses, while Alphabet slid 2% and Meta lost 1%. Still, NextEra shares have added about 12% and Meta has climbed roughly 14% in 2025 so far. Alphabet shares are up close to 70% year-to-date.

  • AI vs. Human Advisors: What Americans Really Think About Retirement Planning

    KEY TAKEAWAYS

    • About 37% of Americans already use AI for some aspect of money management, but only 10% trust it more than a human advisor.
    • Trust remains the dealbreaker as almost two-thirds of Americans tell surveyors that AI can’t understand how emotions shape financial decisions.

    Retirement is keeping Americans up at night. Almost 7 in 10 say financial uncertainty has made them feel depressed and anxious, up 8% from 2023, according to Northwestern Mutual’s 2025 Planning and Progress Study.1 Meanwhile, 51% told surveyors they’ll outlive their savings.

    That anxiety is pushing people to seek help, as Americans are increasingly turning to human advisors and digital tools, including robo-advisors and AI-powered planning apps, to get their retirement on track.

    Americans Are Testing AI—But Not Betting Their Retirement on It

    The anxiety cuts deepest for younger Americans. Among Gen Z and Millennials, about 4 in 10 say they feel depressed or anxious about their finances on at least a weekly basis—up significantly from 2023.1

    There’s evidence that professional help works: three-quarters (76%) of Americans with a financial advisor describe their finances as “strong,” compared with just 44% without one. But only about 27% of Americans work with a traditional advisor, as fees and balance requirements put them out of reach for many.2

    That gap is driving experimentation. In a 2024 Ipsos/BMO poll, about 37% of Americans said they were already using AI to help them manage their money, most commonly to learn about personal finance, build budgets, or evaluate investment ideas.3

    Yet almost two‑thirds in the same survey said AI is incapable of understanding how emotions impact financial decisions—exactly the kind of subtlety that matters for decisions around retirement. In other words, people seem willing to let an algorithm run the numbers, but want a human being to double-check a financial plan and have the ability to adjust or override it.

    TIP

    According to surveys, millennials and Gen-Zers are the most likely to rely on AI tools for financial help and investments.4

    Where Americans Turn for Trust in Financial Advice

    Even as AI use expands, most Americans still trust humans over machines, especially when it comes to personal finances. In the Northwestern Mutual survey, respondents were asked who they trusted more when it came to creating a retirement plan. Most (56%) chose human advisors. Just 13% chose AI. However, most respondents said they’d prefer to work with a human advisor who also uses AI.5

    Digital financial tools aren’t new—robo-advisors like Betterment and Wealthfront have been around for over a decade, offering lower-cost, algorithm-driven portfolio management. What’s changed is the emergence of generative AI tools like ChatGPT, which can answer open-ended questions and simulate the back-and-forth of a conversation with a human advisor.

    But generative AI provides new risks. Unlike a robo-advisor that follows a set algorithm, AI chatbots can misunderstand context or give advice that sounds confident but isn’t personalized to your situation. For retirement planning, where the stakes are high and mistakes compound over decades, that’s a genuine concern.

    Perhaps that’s why, when it came to trusted sources of financial information, 42% of households turned to their bank or credit union in the prior year. By contrast, only about 3% of households reported using general AI chatbots or robo‑advisor apps.6 A 2024 J.D. Power survey similarly reported that only 27% of bank customers trust AI for financial information and advice, even as many expect it to make everyday banking more convenient in the coming years.7

    In the end, most people seem to want a mix of both, as surveys show Americans prefer a hybrid model for financial advice—AI for speed and number-crunching, plus a human advisor for judgment, trust, and personalization.3

    Here’s how AI and human advisors compare:

    AI vs. Human Financial Advice

    AI
    • Low or no‑cost guidance

    • Easy access

    • Available 24/7

    • Users may not understand how AI arrived at certain recommendations

    • Fast data analysis

    • Less trusted

    Human Advisor
    • High fees (1%+ of assets under management)

    • Minimum balances often required

    • Must make appointments

    • More trusted

    • Humans can build relationships and understand context and nuance