The artificial intelligence landscape is experiencing a period of rapid evolution and mixed results, with significant developments across various sectors. While investment managers are increasingly moving from AI pilot programs to broader adoption, many businesses report struggling to see financial returns from their AI investments. Less than 20 percent of executives indicate profit improvements, and challenges like AI accuracy and consistency persist. This situation leads some experts to suggest that about 25 percent of planned AI spending in 2026 might be delayed, raising questions about the justification for current AI infrastructure investments. In the tech giant arena, Microsoft is reportedly lowering sales targets for its Copilot AI assistant due to slower-than-expected business adoption. Despite Microsoft's significant investments in AI, the company needs to demonstrate Copilot's value to compete effectively with popular chatbots like OpenAI's ChatGPT and Google's Gemini. Meanwhile, Meta's AI glasses received a software update on December 16, 2025, introducing a conversation-focus feature to enhance hearing and a Spotify integration, a move that places it in competition with similar hearing assistance features found in devices like Apple's AirPods. AI's societal and ethical implications are also coming to the forefront. Texas universities are utilizing AI tools, including OpenAI services, to review and potentially modify course content related to race and gender. This process has revealed inconsistencies and raised concerns among AI experts about the reliability of these tools and a potential shift of control from professors to administrators. In Hollywood, a new Creators Coalition on AI (CCAI), comprising over 500 professionals including Ben Affleck and Matt Damon, has formed to advocate for "responsible, human-centered innovation" and establish industry guidelines for AI use. The job market and education sectors are also feeling AI's influence. The US unemployment rate climbed to 4.6 percent in November, sparking debate among experts about whether AI is contributing to job market pressures. Simultaneously, AI pioneer Fei-Fei Li emphasizes that proficiency with AI tools is now more critical than traditional college degrees, with her company, World Labs, prioritizing AI collaborative software skills in hiring. Reflecting this shift, Muskegon Community College will launch a new online AI course on January 13, 2026, covering AI basics, prompt engineering, and its societal impact. Looking ahead, experts predict a "massive bifurcation" in the AI investment market by 2026, with OpenAI, the company behind ChatGPT, already named Yahoo Finance's 2025 Company of the Year, signaling significant shifts for major players like Meta Platforms and Alphabet.
Key Takeaways
- Microsoft is reportedly lowering sales targets for its Copilot AI assistant due to slower-than-expected business adoption.
- Texas universities are using OpenAI services and other AI tools to review and potentially revise course content related to race and gender, facing challenges with inconsistent results.
- Hollywood professionals formed the Creators Coalition on AI (CCAI) to guide "responsible, human-centered innovation" in the entertainment industry.
- Investment managers are moving from AI pilot programs to wider adoption, according to a November 2025 survey by Ropes & Gray and Corporate Counsel.
- Many businesses report low financial returns from AI investments, with less than 20% of executives seeing profit improvements, leading to potential delays in 25% of planned 2026 AI spending.
- AI pioneer Fei-Fei Li states that skills with AI tools are becoming more important than college degrees, with her company, World Labs, prioritizing AI collaborative software use in hiring.
- Experts predict a "massive bifurcation" in the AI investment market by 2026, with OpenAI named Yahoo Finance's 2025 Company of the Year.
- Muskegon Community College will launch a new online AI course on January 13, 2026, covering AI basics, societal impact, and prompt engineering.
- Meta's AI glasses received a December 16, 2025, software update, adding a conversation-focus feature to improve hearing and a Spotify integration, competing with features from devices like Apple's AirPods.
- The US unemployment rate rose to 4.6% in November, sparking debate among experts about AI's potential influence on the job market.
Texas Universities Use AI to Review Race and Gender Courses
Texas universities are using AI tools to check how courses discuss topics like race and gender. An Emily A&M University System official, Tricia Berry, tested a new AI tool this fall. She found that the tool gave different results each time she asked it to count courses discussing feminism. This shows the challenge in using AI for such sensitive reviews.
Texas Schools Use AI to Change Race and Gender Course Content
Texas universities are using AI tools to review and change how courses discuss race and gender. For example, Texas A&M System's chief strategy officer Korry Castillo found inconsistent results when using an AI tool to count courses on feminism. Texas State suggests faculty use AI to revise course descriptions, removing words like "challenging" and renaming courses. AI experts warn these tools may be unreliable and could shift control from professors to administrators. Texas A&M is using OpenAI services for its course audit, but states human decisions will be final.
Hollywood Stars Form Coalition to Guide AI Use
Hollywood insiders launched the Creators Coalition on AI, or CCAI, to help shape the future of the entertainment industry. This group includes Oscar winners like Daniel Kwan and Sian Heder, along with over 500 other professionals such as Ben Affleck and Matt Damon. The CCAI aims for "responsible, human-centered innovation" with AI, not a full rejection of the technology. They want to set guidelines and standards to prevent past issues, like those from the streaming wars, and ensure humans lead the conversation.
Investment Managers Embrace AI New Survey Reveals Trends
Ropes & Gray and Corporate Counsel released a survey in November 2025 about AI trends in investment management. The "AI Unlocked" webinar series discussed these findings, presented by Melissa Bender, Howard Glazer, and Sergey Polak. The survey shows investment managers are moving from AI pilots to wider use. Key themes include AI adoption, how it is implemented, challenges, governance, and how to measure success.
Microsoft Lowers Copilot AI Sales Goals Due to Slow Adoption
Microsoft is reportedly lowering its sales targets for the Copilot AI assistant because it is not being adopted as quickly as expected. While Microsoft sees Copilot as a tool to boost productivity, businesses are not fully embracing it yet. A Microsoft spokesperson denied that aggregate sales quotas were lowered, but discussions suggest a gap between vision and reality. Microsoft has invested billions in AI, and the company needs to show Copilot is a truly valuable tool to compete with popular chatbots like ChatGPT and Google's Gemini.
AI Pioneer Says Skills With AI Tools Matter More Than Degrees
AI pioneer Fei-Fei Li believes that having new AI tool skills is now more important than college degrees. The Stanford professor and co-founder of World Labs says employers value a person's ability to learn and use AI tools quickly. She even states that her company, World Labs, would not hire a software engineer who does not use AI collaborative software. This shows a big change in what the tech industry looks for in new hires.
Experts Predict Big Changes for AI Investments in 2026
Experts predict a "massive bifurcation" in the AI investment market by 2026. Yahoo Finance named OpenAI, the company behind ChatGPT, its 2025 Company of the Year. Brian Sozzi and Julie Hyman discussed the AI outlook with Tom Essaye and Ivana Delevska. They talked about how major tech companies like Meta Platforms and Alphabet might be affected by these upcoming changes in the AI trade.
Muskegon Community College to Launch New AI Course in 2026
Muskegon Community College, or MCC, will offer a new online Artificial Intelligence course starting January 13, 2026. Students will learn AI basics, its impact on society, and how to use it in business. The course will also teach prompt engineering for Large Language Models and how to build simple AI tools without coding. MCC Director of Admissions Sarah Luker stated this course will give students essential skills for many careers. Space is limited, and interested students must register by January 6, 2026.
Meta AI Glasses Now Improve Hearing for Conversations
Meta's AI glasses received a software update on December 16, 2025, allowing them to help users hear conversations better. This new conversation-focus feature is available in the US and Canada. The update also includes a Spotify feature that can play music based on what the user sees. Users in Meta's Early Access Program will get the v21 update first. Other devices like Apple's AirPods also offer similar hearing assistance features.
Rising Unemployment Sparks Debate on AI Impact on Jobs
The US labor market added 64,000 non-farm payroll jobs in November, but this followed a loss of 105,000 jobs in October. The unemployment rate also increased to 4.6 percent, its highest since September 2021. Experts Martha Gimbel from Budget Lab at Yale and Kory Kantenga from LinkedIn discussed whether AI is putting pressure on the job market. They explored if AI is a factor in the recent changes in employment figures.
Businesses Find Low Returns on AI Investments
Many companies are struggling to see financial returns from their AI investments, despite rapid adoption. Surveys show less than 20 percent of executives report profit improvements from AI. Businesses face challenges with AI accuracy, consistency, and building customer trust. For example, CellarTracker's AI sommelier was too polite and needed six weeks of adjustments to give honest wine recommendations. Experts like Forrester analyst Brian Hopkins suggest that companies might delay about 25 percent of their planned AI spending in 2026. This situation raises concerns about whether current AI infrastructure investments can be justified.
SNL Stays Quiet on Alleged AI Image During Trump Story
Saturday Night Live, or SNL, remained silent after viewers questioned an image used during a "Weekend Update" segment about President Trump. The image, which depicted a woman on oxygen playing nickel slots, showed signs of being AI-generated. Hive's AI detector found a 99.9 percent probability that the image was created by AI. Viewers noted the AI image detracted from the joke, with some suggesting it lowered the overall quality of the show. SNL had previously made fun of AI imagery in a sketch last month.
Sources
- Texas universities deploy AI tools to review and rewrite how courses discuss race, gender
- Texas universities deploy AI tools to review and rewrite how some courses discuss race and gender
- Hollywood Insiders Unite to Fight for Future of Industry With Launch of Creators Coalition on AI
- Emerging AI Trends in Investment Management: Survey Insights from Ropes & Gray and Corporate Counsel | News & Events | Ropes & Gray LLP
- Microsoft Reportedly Cuts AI Sales Targets as Copilot Adoption Lags
- Degrees Now Less Important Than Empowering Yourself With New AI Tools: Fei-Fei Li
- Where the AI trade will see 'massive bifurcation' in 2026
- MCC to offer Artificial Intelligence course in 2026
- Meta's AI glasses can now help you hear conversations better
- As unemployment ticks up, is AI really pressuring the job market?
- Companies struggle to see returns on AI investments
- ‘SNL’ Stays Silent On Alleged AI Image During Trump Story On Weekend Update
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