Salesforce, Microsoft, Google Expand AI Education

The artificial intelligence boom is significantly increasing electricity demand, leading to rising costs for consumers and straining power grids. Tech giants are investing billions in data centers, with projections showing a substantial increase in their electricity consumption by 2028. This surge is more than the U.S. has seen in two decades, prompting utilities to struggle with accurate demand forecasting and explore new power solutions, including nuclear and geothermal energy. Some regions are implementing measures to make data centers pay for their grid impact. Meanwhile, companies like Salesforce are navigating the AI landscape by emphasizing the continued importance of human salespeople, even as AI handles a significant portion of engineering and support tasks. The NFL is integrating AI into Microsoft tablets for game strategy, and quant investors are using AI to enhance trading strategies while retaining human oversight. Generative AI training is being brought to HBCUs through initiatives supported by major tech players like Amazon, Microsoft, and Google. In healthcare, Pennsylvania lawmakers are proposing regulations to ensure transparency and human review of AI use in patient care. However, concerns linger about AI potentially becoming less useful for profit due to 'enshittification,' and the expansion of data centers, such as OpenAI's facility in Argentina, raises questions about digital extractivism and local benefits. The rapid development of AI also sparks discussions about potential market crashes, as explored by Katie Couric and Andrew Ross Sorkin.

Key Takeaways

• The AI boom is a significant driver of rising electricity costs, with U.S. residential prices up 13% since 2022, due to increased demand from data centers.
• Data centers are projected to consume a much larger share of U.S. electricity by 2028, straining power grids and requiring substantial investment in generation and transmission.
• Utilities face challenges in accurately forecasting AI's energy demand, leading to uncertainty in infrastructure planning and potential impacts on customer bills.
• Companies like Anthropic and OpenAI are driving massive energy needs for AI training and inference, prompting exploration of firm clean power options like nuclear and geothermal energy.
• Salesforce CEO Marc Benioff maintains that human salespeople are crucial, despite AI handling 30-50% of engineering and support work, and the company recently hired thousands of sales staff.
• The NFL is utilizing AI technology integrated into Microsoft tablets on the sidelines to assist coaches and players during games.
• Generative AI education is being expanded to HBCUs through initiatives involving major tech customers like Amazon, Microsoft, and Google.
• While large hotel chains struggle with AI strategy, independent hotels are seeing quick returns on investment from AI implementation.
• Concerns exist that AI could become less useful for profit due to 'enshittification,' where platforms prioritize business interests over user value.
• The expansion of data centers, including OpenAI's facility in Argentina, raises questions about digital extractivism and the equitable distribution of benefits.

AI's growing demand for power raises electricity costs

Electricity bills are rising partly because of the AI boom, which significantly increases demand for power. Experts explain that updating and maintaining the power grid, especially with severe weather, adds to costs. Tech companies are investing billions in data centers for AI, leading to a projected increase in their electricity consumption. This surge in demand is more than the U.S. has seen in two decades, requiring more investment in power generation and transmission. Some areas, like Oregon, are making data centers pay for their grid impact to protect consumers.

AI boom drives up electricity costs, experts say

Residential electricity costs are increasing, with the average price rising 13% since 2022. Experts attribute this partly to the AI boom, which boosts electricity demand as tech giants invest heavily in data centers. OpenAI and Broadcom recently partnered to create custom AI chips, highlighting this trend. Data centers are expected to consume a larger share of U.S. electricity by 2028. While grid maintenance and severe weather also contribute, the rapid growth of AI is a significant factor straining power resources.

Utilities struggle to predict AI's massive energy demand

Electricity companies are finding it hard to estimate the true energy demand from the AI boom, despite companies announcing huge data center projects. Some regions have seen projected demand decrease after initial high estimates. AI companies are shopping similar projects to multiple utilities, making it difficult to plan necessary power generation and transmission. This uncertainty affects billions in investment and customer electricity bills, as the stock market rallies on AI infrastructure speculation. Utilities need accurate forecasts to ensure grid reliability and avoid overspending on unneeded infrastructure.

AI data centers strain energy supplies, prompting new power solutions

The rapid growth of AI data centers is creating a significant strain on global energy supplies, with demand projected to double in the next five years. Companies like Anthropic forecast massive energy needs for AI training and inference. While global energy supply is abundant, local shortfalls exist where AI demand is high. This has led data center leaders to prioritize reliable power sources, with many exploring firm clean power options like nuclear and geothermal energy. New energy methods are being explored as grid connections face years-long delays.

Salesforce CEO Marc Benioff still hiring thousands of salespeople

Salesforce CEO Marc Benioff believes human salespeople are essential despite the rise of AI, stating that AI lacks the human connection needed for sales. The company recently hired between 3,000 and 5,000 salespeople, aiming to reach 20,000 account executives this year. Benioff acknowledges AI's efficiency gains, noting that AI handles 30% to 50% of engineering and support work, freeing up resources for sales expansion. He also expressed concern that customer adoption of AI innovation is lagging behind its rapid development.

Salesforce CEO: Humans vital for sales despite AI growth

Salesforce CEO Marc Benioff emphasizes the continued importance of human salespeople, even as the company heavily invests in AI. He revealed that Salesforce recently hired 3,000 to 5,000 salespeople, underscoring a commitment to human-driven sales. Benioff stated that face-to-face communication is crucial and that AI cannot replace the human element in sales. While AI enhances efficiency, he warned that the pace of AI innovation is outpacing customer adoption, highlighting a potential challenge for businesses.

NFL uses AI technology on Microsoft tablets during games

The National Football League (NFL) is now using artificial intelligence technology integrated into Microsoft tablets on the sidelines. This new technology aims to assist coaches and players during games. The implementation of AI is changing how the game is played and strategized. NBC News reported on how this technology is impacting the NFL.

Quant investors still lead AI in trading strategies

Quant investors, who develop computer-driven trading strategies, believe human creativity remains essential and are not ready to fully hand over control to AI. While generative AI speeds up processes and helps with marketing funds, experts say it's not yet capable of consistently finding market-beating investment ideas. AI is mainly used for time-saving administrative tasks and content generation. Although AI allows for more complex strategies and faster coding, the value still lies in the human expertise that guides the AI models.

Robert F. Smith brings generative AI training to HBCUs

Billionaire investor Robert F. Smith is committed to advancing generative AI education at Historically Black Colleges and Universities (HBCUs). He is implementing AI-focused curricula at Morehouse and Spelman Colleges through his company, Stats Perform. Smith believes Black professionals should be at the forefront of AI advancements and uses hackathons to involve students. His organization is a major customer for Amazon, Microsoft, and Google, giving his portfolio companies unique access to AI resources.

Hotels: Chains struggle with AI, independents see quick results

A study of over 370 hoteliers worldwide reveals that large hotel chains are having difficulty developing effective AI strategies. In contrast, independent hotels are experiencing rapid returns on investment from implementing AI. The research captured perspectives from luxury chains, mid-market brands, and small, independent hotels regarding their use of artificial intelligence.

Can AI avoid becoming less useful for profit?

As AI becomes more integrated into daily life, there are concerns it could suffer from 'enshittification,' a term for platforms becoming less useful as they prioritize profit. Companies like OpenAI face immense pressure to recoup massive investments, potentially leading to biased recommendations or increased advertising. While AI currently offers significant user benefits, the economic pressures could tempt companies to degrade their services. Experts and even AI models themselves acknowledge the risk of AI systems prioritizing business interests over user value if incentives go unchecked.

Data centers in Latin America raise questions of benefit and extractivism

The construction of large data centers, like OpenAI's new facility in Argentina, raises concerns about digital extractivism and who truly benefits. While these projects promise investment and technological advancement, they often come with lax conditions for local participation and environmental regulations. Governments are urged to demand more than just access to AI tools. The expansion of data centers requires significant resources like water and energy, potentially straining local supplies and benefiting large tech companies at the expense of communities and the environment.

Pennsylvania lawmakers propose AI regulations in healthcare

Pennsylvania lawmakers are proposing legislation to regulate the use of artificial intelligence in healthcare, requiring providers to notify patients when AI is used in their care. The bill also mandates human review of any AI assessments to ensure accuracy and minimize bias. Concerns exist about AI's potential to perpetuate biases found in medical data and its use in prior authorization denials by insurers. The goal is not to remove AI but to establish guardrails ensuring transparency and human oversight in medical decisions.

Katie Couric discusses AI boom and potential crash

In a recent episode of 'Next Question,' Katie Couric sat down with New York Times financial columnist and DealBook founder, Andrew Ross Sorkin. They discussed the current AI boom and whether it could lead to another market crash. The conversation explored the financial implications and potential risks associated with the rapid growth of artificial intelligence technology. The episode is available on various podcast platforms and Couric's YouTube channel.

Sources

• Is AI really making electricity bills higher? Here’s what the experts say
• Is AI really making electricity bills higher? Here’s what the experts say
• Utilities grapple with a multibillion question: How much AI data center power demand is real
• Massive AI data center buildouts are squeezing energy supplies — New energy methods are being explored as power demands are set to skyrocket
• Marc Benioff says AI won't replace sales — and that Salesforce is still hiring thousands of salespeople
• Salesforce CEO: Humans Essential in Sales Despite AI Hiring Surge
• NFL using AI technology during their games
• The quants who built computer-run trading strategies aren't ready to hand it over to AI
• Billionaire Robert F. Smith Brings Generative AI Curriculum To Morehouse And Spelman Colleges
• Chains struggle with AI strategy, independents see fast ROI
• Can AI Avoid the Enshittification Trap?
• Artificial intelligence and digital extractivism: Who benefits from data centers in Latin America?
• The use of AI in health care is evolving in ways that require regulations, Pa. lawmakers say
• Katie Couric (@katiecouric)