The global financial markets recently experienced a period of volatility, with an initial dip as investors took profits from artificial intelligence stocks, leading to declines across major markets like France's CAC 40, Germany's DAX, and Japan's Nikkei 225. Concerns about AI stock valuations, reminiscent of the dot-com bubble, were voiced by some experts. However, Asian markets soon rebounded, with South Korea's Kospi index jumping 2.5% and Nvidia supplier SK Hynix shares rising over 3%. This market movement occurred even as top market analyst Tony Yoseloff warned of an 'AI wobble' and a 'prisoner's dilemma' in the stock market, noting that companies feel compelled to invest heavily in AI due to competitor actions. Palantir, for instance, reported a record revenue of $1.18 billion, yet its shares plunged, contributing to a tech-led selloff and prompting analysts to question its high valuation. Beyond market fluctuations, artificial intelligence continues to embed itself across diverse sectors. In retail, Generative AI is poised to significantly alter Black Friday shopping, which has evolved into a multi-week event. Nearly half of US consumers plan to start holiday shopping by the end of October, and a substantial 38% intend to use generative AI to find deals. Overall, 33% of shoppers plan to leverage AI for holiday deals, double last year's figure, as consumers aim to find bargains amid a projected 10% decrease in holiday spending compared to 2024. Retail executives view gen AI as a major trend, creating new tools for shoppers. AI is also making strides in public services and specialized industries. Prison healthcare, often challenged by overcrowding and staff shortages, is adopting AI systems to predict medical risks, assist with diagnoses, and support mental health through tools like chatbots Echo and Therapii, and virtual reality programs. Meanwhile, law enforcement agencies in Michigan are increasing their use of AI surveillance technology, with a 2025 study indicating that 26% of police chiefs and sheriffs already use automated license plate readers. In the financial sector, DataDasher AI and Orion have partnered to integrate DataDasher's agentic AI platform into Orion's technology, aiming to enhance productivity and client engagement for financial advisors. Private equity firms are also prioritizing AI, with 85% of buyers now considering AI-enabled finance capabilities when valuing companies, pushing CFOs to be 'exit-ready' with AI integration. However, the rapid expansion of AI also brings ethical considerations. Elon Musk's AI company, xAI, reportedly used employee biometric data, including faces and voices, as a 'job requirement' for a confidential program called 'Project Skippy' to train its female chatbot, Ani. This move raised concerns among employees about the potential sale of their data or its use in deepfake videos.
Key Takeaways
- Global markets experienced an initial 'AI wobble' with profit-taking, but Asian markets, including Nvidia supplier SK Hynix, later rebounded.
- Palantir reported a record revenue of $1.18 billion but saw its shares plunge, contributing to a tech selloff and raising concerns about AI stock valuations.
- Analyst Tony Yoseloff warned of an 'AI wobble' and 'prisoner's dilemma' in the stock market, comparing current tech concentration to past bubbles.
- Generative AI is significantly impacting Black Friday shopping, with 38% of US consumers planning to use it for deals and 33% using AI for holiday gift research.
- AI is transforming prison healthcare by predicting medical risks, aiding diagnoses, supporting mental health with chatbots like Echo and Therapii, and using VR for rehabilitation.
- Law enforcement agencies in Michigan are increasing their use of AI surveillance tools, including automated license plate readers.
- DataDasher AI and Orion are partnering to integrate agentic AI into Orion's platform, aiming to boost productivity and client engagement for financial advisors.
- Elon Musk's xAI used employee biometric data (faces and voices) as a 'job requirement' to train its female chatbot Ani, raising employee concerns about data privacy.
- Private equity firms are increasingly valuing AI-enabled finance capabilities, with 85% of buyers considering it for company valuations.
- Consumers plan to spend $1,595 on holiday gifts this year, a 10% decrease from 2024, making AI-assisted deal-finding more crucial.
Global Shares Fall as Investors Take AI Profits
Global shares fell on Tuesday, despite recent optimism surrounding artificial intelligence technology on Wall Street. Traders sold shares to secure their recent profits, causing major markets worldwide to decline. France's CAC 40, Germany's DAX, Britain's FTSE 100, Japan's Nikkei 225, South Korea's Kospi, and Hong Kong's Hang Seng all saw losses. Some experts worry that AI stocks might be too expensive, similar to the dot-com bubble of 2000. However, most S&P 500 companies have met or exceeded profit expectations this reporting season.
Asia Markets Rise as AI Stocks Rebound
Asia-Pacific markets rose on Thursday, tracking gains on Wall Street as AI stocks recovered from earlier concerns about their value. South Korea's Kospi index led the regional gains, jumping 2.5%, with Nvidia supplier SK Hynix shares up 3.11%. Australia's ASX/S&P 200 also rose 0.58%. Chinese autonomous vehicle firm Pony.ai set its final IPO offer price at 139 Hong Kong dollars a share. US equity futures remained mostly unchanged in early Asian hours.
Black Friday Success Needs Early Action and Gen AI
Black Friday has grown into a multi-week shopping event, and retailers must act quickly to capture holiday spending. Nearly half of US consumers plan to start holiday shopping by the end of October, with only 13% waiting for Black Friday itself. Generative AI is changing how people shop, as 38% of US consumers plan to use it for Black Friday deals. Many will use specific AI tools for product advice, while others will stick to traditional online research. Retail executives see gen AI as a major trend this season, creating new tools to help shoppers.
AI Will Change Black Friday Shopping
Black Friday shopping has shifted online, with fewer people waiting in lines at stores. Consumers plan to spend $1,595 on holiday gifts this year, 10% less than in 2024, making bargains very important. A growing number of shoppers, 33%, plan to use AI to find holiday deals, which is double last year's number. AI can help with gift ideas, research prices, and recommend the best deals. To use AI effectively, shoppers should be specific about products and always fact-check the prices.
AI Transforms Prison Healthcare
Artificial intelligence is changing healthcare within prisons, which often face overcrowding and staff shortages. AI systems are used to predict medical risks, help with diagnoses, and support mental health. For example, machine learning models can identify inmates at risk of self-harm. Telemedicine and digital therapy, including chatbots like Echo and Therapii, provide support and track well-being. Virtual reality also helps reduce aggression and increase empathy among young offenders. Ethical concerns about data privacy and consent are important, and human review of AI decisions is crucial.
Michigan Police Use More AI Surveillance
Law enforcement agencies in Michigan are increasingly using artificial intelligence tools. These AI tools are primarily for surveillance technology, according to Ron Wiles, executive director of the Michigan Association of Chiefs of Police. A 2025 study from the University of Michigan found that 26% of police chiefs and sheriffs statewide now use automated license plate readers.
DataDasher AI and Orion Partner for Advisors
DataDasher AI and Orion have announced a new partnership to enhance financial advisor productivity. DataDasher AI, which develops an agentic AI platform for financial professionals, will integrate its workflow into Orion's leading technology platform. This collaboration aims to improve client engagement and operational efficiency for the thousands of financial advisors using Orion's services. The integrated solution will automate routine tasks, provide deeper insights through AI-powered analytics, and personalize client interactions. The new tools are expected to be available to Orion's clients in the coming months.
xAI Used Employee Data for AI Chatbot Ani
Elon Musk's AI company, xAI, used employee biometric data to train its female chatbot named Ani. Ani is an anime avatar with an NSFW setting, and employees assigned as AI tutors had to submit their faces and voices. This data collection was part of a confidential program called "Project Skippy," designed to make Ani's interactions more human-like. Employees were told that providing their biometric data was a "job requirement." Some employees expressed concerns about their data being sold or used in deepfake videos.
Analyst Warned of AI Stock Market Wobble
Top market analyst Tony Yoseloff warned of an "AI wobble" and a "prisoner's dilemma" in the stock market, concerns that seemed confirmed by Palantir's recent performance. Despite strong earnings, Palantir's shares plunged, contributing to a tech-led selloff. Yoseloff explained that companies feel compelled to invest heavily in AI because their competitors are, creating a difficult situation. He compared the current market concentration of a few tech stocks to past bubbles like the dot-com bust. Palantir reported record revenue of $1.18 billion, but analysts still questioned its high valuation.
PE CFOs Must Be Exit-Ready and Boost AI
Private equity firms are investing more selectively, and CFOs at their portfolio companies face pressure to be "exit-ready" and to use AI in finance. A study by Accordion found that 97% of sponsors expect CFOs to always be ready for a sale, but only 20% actually operate this way. Starting exit preparations late can reduce a company's valuation, according to sponsors. Importantly, 85% of buyers now consider AI-enabled finance when valuing companies. CFOs who use AI in planning and forecasting are more likely to achieve smoother exits and higher valuations.
Sources
- Global shares trade lower after AI darlings prop up Wall Street
- Asia-Pacific markets set to open higher, tracking Wall Street gains as AI stocks rebound
- The Key To Black Friday Success? Timing And A Helping Hand From Gen AI
- AI is going to be a game changer for Black Friday
- Artificial Intelligence in Prison Healthcare
- More law enforcement agencies using artificial intelligence
- DataDasher and Orion Announce Strategic Collaboration to Deliver a Next-Generation AI Workflow for Financial Advisors
- xAI used employee biometric data to train Elon Musk’s AI girlfriend
- A top analyst warned of a 'prisoner's dilemma' and 'AI wobble' in the stock market just days before Palantir seemed to confirm everyone's fears
- Private equity CFOs under pressure to stay exit-ready and boost AI in finance
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