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Big Companies That Invest Heavily in AI Also Hire More People, Report Suggests

"Companies spending heavily on AI are growing headcount faster, even in the entry-level roles that many fear are doomed," writes TechCrunch. That's the conclusion of new report tracking AI spending from Ramp's corporate card/bill pay data as well as Revelio Labs' workforce records from 21,599 U.S. firms: According to the report, "high-intensity adopters" — firms that spend on average $30 per employee per month on AI in the first three months — saw headcount increase 10.2%. Headcount also rose across functions, including engineering, sales, administration, customer service, finance, marketing, and scientist roles. The strongest job growth among high-intensity adopters was in the information sector, which includes software, internet, media, and tech-adjacent firms. Despite these positive signals, the data isn't as rosy as it seems. It skews heavily toward tech-forward, knowledge-work firms — ones that might have VC-backing and are growing fast anyway, making it difficult to say whether AI is contributing to the hiring or just showing up at companies that are expanding anyway. "This paper does not show that AI universally creates jobs," the paper's authors admit, "but it does counter claims that AI will lead to broad job losses." It also counters claims that AI is killing all junior jobs. Recent research from Goldman Sachs found that AI has already erased about 16,000 net jobs per month over the past year, with Gen Z and entry-level workers taking the brunt of the burden. But in tech-forward firms, the report finds that entry-level headcount actually rose by 12%... "For software and technology firms, AI can make core output cheaper or faster to produce: writing code, debugging, building internal tools, producing technical documentation, and supporting product development," the report reads. "Lower production costs in these workflows can raise the return to expanding the whole firm, not just the engineering team." But companies that buy subscriptions and run pilots, yet did not go on to make sustained investments, don't tend to see any gains in headcount, per the report. That sets up the potential for a widening gap between firms that have the resources — like capital, technical staff, founder networks, and management bandwidth — to turn AI adoption into actual business gains and those that are stuck experimenting with subscriptions. In other words, this report suggests that firms that already have the resources are the ones that will see the largest gains. CNBC argues another AI "narrative" was challenged this week: that open source can't make money. "The assumption was that giving your model away for free meant no business. That's breaking too, as open-model companies start posting real revenue and enterprises move from renting AI to running their own."

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Microsoft and Amazon Commit Billions to New AI Implementation Units for Businesses

Microsoft is investing $2.5 billion in a new group "assisting clients with AI implementations," reports CNBC: [Microsoft] said Thursday that 6,000 employees will be embedded with clients, in a practice that's become known as forward deployed engineering [or FDE]... The announcement comes two days after cloud rival Amazon said it was putting $1 billion behind an FDE initiative to support fast-paced AI engagements. Leading AI labs Anthropic and OpenAI both established FDE groups in May, partnering with private equity firms, banks and consulting firms. Alongside its technology peers, Microsoft has sunk tens of billions of dollars into building data centers that run generative AI models. Microsoft has also released a variety of AI services, with mixed results. The Microsoft 365 Copilot AI assistant has yet to gain anything approaching ubiquity in the business world, and the GitHub Copilot coding agent has ceded market share to newer players. Microsoft's stock has slumped 21% this year, by far the worst performance among the mega-cap tech companies. One concern on Wall Street is that AI models that quickly compose code might threaten mature software companies... Microsoft has for years provided support and implementation services to customers. The company generated about $2.1 billion in revenue from enterprise and partner services in the March quarter, up 2.5% from a year earlier.

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Short Story Accused of Being AI-written Goes on to Win Contest's First Prize

"A story widely accused on social media of being written using AI has gone on to win the overall Commonwealth short story prize," reports the Guardian. In mid-May the story had been selected as a regional winner, but with critics on X and Bluesky "claiming it showed 'obvious markers' of AI use." In the wake of the controversy, the Commonwealth Foundation conducted a review of the regional winners, which it said involved looking at drafts, time-stamped documents and notes. "We are satisfied with the testimonies of our writers and their confirmation that AI was not used in their writing," said foundation director-general Razmi Farook... Judging chair Louise Doughty described Nazir's piece as "an original, poetic and deeply moving story...." In a film released by the Commonwealth Foundation on Tuesday, Nazir... adds that he wrote six or seven drafts of his prize-winning story, and also speaks about his use of speech-to-text software, explaining that he could only see three or four lines of text on his phone screen at any one time, so he would perfect each line before moving on, which is how his story ended up being "highly polished"... Initial social media reactions to the Commonwealth Foundation's announcement of Nazir's win were negative, with one X user writing: "immensely disappointing and disheartening. it feels like they wanted to stick to their guns after the entire GenAI uproar. I might think twice now before submitting my stories here". After Nazir was announced as the regional winner in May, some social media users reported running his story through AI-detection software. "Pangram flags at 100% but also, come on, if you know you know", said Wharton professor Ethan Mollick. However, the reliability of AI-detection software has been called into question. In a statement to the Guardian, Farook said that "rather than surrender our judgment to AI-detection software, we asked our winners to show their working drafts, outlines, the evidence of an artistic journey. That software, it must be said, is not infallible: it returns inconsistent verdicts and, in doing so, corrodes the very trust on which a prize depends." "When the machine's default voice is the metropolitan one, the writer who does not fit the expected mould is the first to fall under suspicion," she added. "The more startling her gift, the more her unfamiliar brilliance unsettles, the more readily she is accused of being a machine. A young writer in Kingston or Kolkata, in Kuala Lumpur or Kigali, must now prove not only her talent but her very humanity." Nazir's story beat 7,806 other stories, the video points out (adding that their prize "demonstrates that in a world increasingly driven by algorithms, the human voice still matters.") The Guardian notes that the winning story "includes multiple 'not x, but y' constructions and lists of three, which some consider to be signs of AI use," and that critics also drew attention to particular lines like "Sun on galvanise is a cruel instrument" and "Marsha lived two bends down." In a new interview with the Times of India Nazir says "Now I'm frightened about publishing new work because the attacks haven't stopped." Q: Which passages attracted the most criticism, and why do you think they were misunderstood? Nazir: People criticised a line where I wrote: 'She had the kind of walking that made benches become men.' That's magical realism. Think Salman Rushdie or Gabriel Garcia Marquez. It's a literary technique. In my story, the character 'Zoongie' believes she is so beautiful that even when no men are around, she imagines the benches becoming men who admire her. It exists only in her imagination. People interpreted it literally. There was another line about light reflecting from a sink. That came directly from my childhood. Our kitchen faced east, and my mother liked to keep everything spotless. We used to polish the sink, and when the morning sun hit it, it glittered brightly. People claimed that the image must have been AI-generated. But it's from my lived experience... I've lived with diabetes for 62 years, which has damaged the nerves in my fingers and feet, and I'm currently undergoing chemotherapy. That's why I began using speech-to-text on my Android phone... I hope this episode leads to a better understanding of the difference between assistive technology and AI-generated writing... Q: Many acclaimed writers like Ursula K Le Guin, Mary Shelley, and JRR Tolkien have also been falsely flagged by AI detectors. Where does this leave writers? Nazir: What these AI detectors are saying is that if a piece of writing is too polished, it must have been written by AI. I refuse to accept that. AI was trained on human writing. Large language models, to me, are tools, much like a word processor. They don't replace the human spirit behind creative writing. Ask an AI to write a prize-winning story on its own and see what it produces. You still need human imagination and judgment to create literature. Nazir added, "What I don't understand is why people continue to question the judges' decision."

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