An anonymous reader shares a report: KPMG, one of the world's largest auditors of public and private companies, negotiated lower fees from its own accountant by arguing that AI will make it cheaper to do the work, according to people familiar with the matter. The Big Four firm told its auditor, Grant Thornton UK, it should pass on cost savings from the rollout of AI and threatened to find a new accountant if it did not agree to a significant fee reduction, the people said. The discussions last year came amid an industry-wide debate about the impact of new technology on audit firms' business and traditional pricing models. Firms have invested heavily in AI to speed up the planning of audits and automate routine tasks, but it is not yet clear if this will generate savings that are passed on to clients. Grant Thornton is auditor to KPMG International, the UK-based umbrella organisation that co-ordinates the work of KPMG's independent, locally owned partnerships around the world. Talks with Grant Thornton were led by Michaela Peisger, a longtime audit partner and executive from KPMG's German member firm, who became KPMG International's chief financial officer at the beginning of 2025.

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Anthropic on Thursday released Claude Opus 4.6, its most capable model yet, at a moment when the company's AI tools have already spooked markets over fears that they are disrupting traditional software development and other sectors. The new model improves on Opus 4.5's coding abilities, the company said -- it plans more carefully, sustains longer agentic tasks, handles larger codebases more reliably, and catches its own mistakes through better debugging. It is also the first Opus-class model to feature a 1M token context window, currently in beta. On GDPval-AA, an independent benchmark measuring performance on knowledge-work tasks in finance, legal and other domains, Opus 4.6 outperformed OpenAI's GPT-5.2 by roughly 144 Elo points. Anthropic also introduced agent teams in Claude Code, allowing multiple agents to work in parallel on tasks like codebase reviews. Pricing remains at $5/$25 per million input/output tokens.

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Amazon plans to use AI to speed up the process for making movies and TV shows even as Hollywood fears that AI will cut jobs and permanently reshape the industry. From a report: At the Amazon MGM Studio, veteran entertainment executive Albert Cheng is leading a team charged with developing new AI tools that he said will cut costs and streamline the creative process. Amazon plans to launch a closed beta program in March, inviting industry partners to test its AI tools. The company expects to have results to share by May. [...] Amazon is leaning on its cloud computing division, Amazon Web Services, for help and plans to work with multiple large language model providers to give creators a wider array of options for pre- and post-production filmmaking.

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Investors were assessing on Wednesday whether a selloff in global software stocks this week had gone too far, as they weighed if businesses could survive an existential threat posed by AI. The answer: It's unclear and will lead to volatility. From a report: After a broad selloff on Tuesday that saw the S&P 500 software and services index fall nearly 4%, the sector slipped another 1% on Wednesday. While software stocks have been under pressure in recent months as AI has gone from being a tailwind for many of these companies to investors worrying about the disruption it will cause to some sectors, the latest selloff was triggered by a new legal tool from Anthropic's Claude large language model (LLM). The tool - a plug-in for Claude's agent for tasks across legal, sales, marketing and data analysis - underscored the push by LLMs into the so-called "application layer," where these firms are increasingly muscling into lucrative enterprise businesses for revenue they need to fund massive investments. If successful, investors worry, it could wreak havoc across a range of industries, from finance to law and coding.

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Anthropic said today that its AI assistant Claude will not carry advertising of any kind -- no sponsored links next to conversations, no advertiser influence on the model's responses, and no unsolicited third-party product placements -- calling Claude a "space to think" that should remain free of commercial interruption. The announcement comes days after Anthropic's chief rival, OpenAI, announced plans to bring ads to some of its ChatGPT offerings. Anthropic said its internal analysis of Claude conversations found that a significant share involve sensitive or deeply personal topics. An advertising-based model would also create incentives to optimize for engagement and time spent rather than usefulness, Anthropic said, noting that the most helpful AI interaction might be a short one that doesn't prompt further conversation. Anthropic generates revenue from enterprise contracts and paid subscriptions. The company said it is exploring agentic commerce -- Claude handling a purchase or booking on a user's behalf -- but stressed that all such interactions should be user-initiated, not advertiser-driven. Anthropic has also brought AI tools to educators in over 60 countries and said it may consider lower-cost subscription tiers and regional pricing.

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OpenAI's rivals are cutting into ChatGPT's lead. From a report: The top chatbot's market share fell from 69.1% to 45.3% between January 2025 and January 2026 among daily U.S. users of its mobile app. Gemini, in the same time period, rose from 14.7% to 25.1% and Grok rose from 1.6% to 15.2%. The data, obtained by Big Technology from mobile insights firm Apptopia, indicates the chatbot race has tightened meaningfully over the past year with Google's surge showing up in the numbers. Overall, the chatbot market increased 152% since last January, according to Apptopia, with ChatGPT exhibiting healthy download growth. On desktop and mobile web, a similar pattern appears, according to analytics firm Similarweb. Visits to ChatGPT went from 3.8 billion to 5.7 billion between January 2025 and January 2026, a 50% increase, while visits to Gemini went from 267.7 million to 2 billion, a 647% increase. ChatGPT is still far and away the leader in visits, but it has company in the race now.

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The New York Times lists other reasons a company lays off people. ("It didn't meet financial targets. It overhired. Tariffs, or the loss of a big client, rocked it...") "But lately, many companies are highlighting a new factor: artificial intelligence. Executives, saying they anticipate huge changes from the technology, are making cuts now." A.I. was cited in the announcements of more than 50,000 layoffs in 2025, according to Challenger, Gray & Christmas, a research firm... Investors may applaud such pre-emptive moves. But some skeptics (including media outlets) suggest that corporations are disingenuously blaming A.I. for layoffs, or "A.I.-washing." As the market research firm Forrester put it in a January report: "Many companies announcing A.I.-related layoffs do not have mature, vetted A.I. applications ready to fill those roles, highlighting a trend of 'A.I.-washing' — attributing financially motivated cuts to future A.I. implementation...." "Companies are saying that 'we're anticipating that we're going to introduce A.I. that will take over these jobs.' But it hasn't happened yet. So that's one reason to be skeptical," said Peter Cappelli, a professor at the Wharton School... Of course, A.I. may well end up transforming the job market, in tech and beyond. But a recent study... [by a senior research fellow at the Brookings Institution who studies A.I. and work] found that AI has not yet meaningfully shifted the overall market. Tech firms have cut more than 700,000 employees globally since 2022, according to Layoffs.fyi, which tracks industry job losses. But much of that was a correction for overhiring during the pandemic. As unpopular as A.I. job cuts may be to the public, they may be less controversial than other reasons — like bad company planning. Amazon CEO Jassy has even said the reason for most of their layoffs was reducing bureaucracy, the article points out, although "Most analysts, however, believe Amazon is cutting jobs to clear money for A.I. investments, such as data centers."

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Phoronix reports: Chris Mason, the longtime Linux kernel developer most known for being the creator of Btrfs, has been working on a Git repository with AI review prompts he has been working on for LLM-assisted code review of Linux kernel patches. This initiative has been happening for some weeks now while the latest work was posted today for comments... The Meta engineer has been investing a lot of effort into making this AI/LLM-assisted code review accurate and useful to upstream Linux kernel stakeholders. It's already shown positive results and with the current pace it looks like it could play a helpful part in Linux kernel code review moving forward. "I'm hoping to get some feedback on changes I pushed today that break the review up into individual tasks..." Mason wrote on the Linux kernel mailing list. "Using tasks allows us to break up large diffs into smaller chunks, and review each chunk individually. This ends up using fewer tokens a lot of the time, because we're not sending context back and forth for the entire diff with every turn. It also catches more bugs all around."

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"Most Go developers are now using AI-powered development tools when seeking information (e.g., learning how to use a module) or toiling (e.g., writing repetitive blocks of similar code)." That's one of the conclusions Google's Go team drew from September's big survey of 5,379 Go developers. But the survey also found that among Go developers using AI-powered tools, "their satisfaction with these tools is middling due, in part, to quality concerns." Our survey suggests bifurcated adoption — while a majority of respondents (53%) said they use such tools daily, there is also a large group (29%) who do not use these at all, or only used them a few times during the past month. We expected this to negatively correlate with age or development experience, but were unable to find strong evidence supporting this theory except for very new developers: respondents with less than one year of professional development experience (not specific to Go) did report more AI use than every other cohort, but this group only represented 2% of survey respondents. At this time, agentic use of AI-powered tools appears nascent among Go developers, with only 17% of respondents saying this is their primary way of using such tools, though a larger group (40%) are occasionally trying agentic modes of operation... We also asked about overall satisfaction with AI-powered development tools. A majority (55%) reported being satisfied, but this was heavily weighted towards the "Somewhat satisfied" category (42%) vs. the "Very satisfied" group (13%)... [D]eveloper sentiment towards them remains much softer than towards more established tooling (among Go developers, at least). What is driving this lower rate of satisfaction? In a word: quality. We asked respondents to tell us something good they've accomplished with these tools, as well as something that didn't work out well. A majority said that creating non-functional code was their primary problem with AI developer tools (53%), with 30% lamenting that even working code was of poor quality. The most frequently cited benefits, conversely, were generating unit tests, writing boilerplate code, enhanced autocompletion, refactoring, and documentation generation. These appear to be cases where code quality is perceived as less critical, tipping the balance in favor of letting AI take the first pass at a task. That said, respondents also told us the AI-generated code in these successful cases still required careful review (and often, corrections), as it can be buggy, insecure, or lack context... [One developer said reviewing AI-generated code was so mentally taxing that it "kills the productivity potential".] Of all the tasks we asked about, "Writing code" was the most bifurcated, with 66% of respondents already or hoping to soon use AI for this, while 1/4 of respondents didn't want AI involved at all. Open-ended responses suggest developers primarily use this for toilsome, repetitive code, and continue to have concerns about the quality of AI-generated code. Most respondents also said they "are not currently building AI-powered features into the Go software they work on (78%)," the surveyors report, "with 2/3 reporting that their software does not use AI functionality at all (66%)." This appears to be a decrease in production-related AI usage year-over-year; in 2024, 59% of respondents were not involved in AI feature work, while 39% indicated some level of involvement. That marks a shift of 14 points away from building AI-powered systems among survey respondents, and may reflect some natural pullback from the early hype around AI-powered applications: it's plausible that lots of folks tried to see what they could do with this technology during its initial rollout, with some proportion deciding against further exploration (at least at this time). Among respondents who are building AI- or LLM-powered functionality, the most common use case was to create summaries of existing content (45%). Overall, however, there was little difference between most uses, with between 28% — 33% of respondents adding AI functionality to support classification, generation, solution identification, chatbots, and software development.

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Talks "are at a standstill" for Anthropic's potential $200 million contract with America's Defense Department, reports Reuters (citing several people familiar with the discussions.") The two issues? - Using AI to surveil Americans - Safeguards against deploying AI autonomously The company's position on how its AI tools can be used has intensified disagreements between it and the Trump administration, the details of which have not been previously reported... Anthropic said its AI is "extensively used for national security missions by the U.S. government and we are in productive discussions with the Department of War about ways to continue that work..." In an essay on his personal blog, Anthropic CEO Dario Amodei warned this week that AI should support national defense "in all ways except those which would make us more like our autocratic adversaries. A person "familiar with the matter" told the Wall Street Journal this could lead to the cancellation of Anthropic's contract: Tensions with the administration began almost immediately after it was awarded, in part because Anthropic's terms and conditions dictate that Claude can't be used for any actions related to domestic surveillance. That limits how many law-enforcement agencies such as Immigration and Customs Enforcement and the Federal Bureau of Investigation could deploy it, people familiar with the matter said. Anthropic's focus on safe applications of AI — and its objection to having its technology used in autonomous lethal operations — have continued to cause problems, they said. Amodei's essay calls for "courage, for enough people to buck the prevailing trends and stand on principle, even in the face of threats to their economic interests and personal safety..."

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