Cerence reports Q2 EPS 46c, consensus 30c
Reports Q2 revenue $78.01M, consensus $75.34M. 'I'm incredibly proud of what our team has accomplished. We surpassed the high end of our revenue and adjusted EBITDA guidance and posted our fourth consecutive quarter of positive free cash flow, demonstrating the high value we provide to the world's leading automakers as they work through the ongoing macro uncertainties and complexities facing the industry today,' said Brian Krzanich, CEO, Cerence (CRNC) AI. 'As we look to the future and based on currently available information, we believe we are well-positioned to continue supporting our customers as they work to bring an enhanced experience to their drivers. With Cerence xUI, we are partnering with OEMs as they contemplate and build their future infotainment platforms, as well as delivering enhanced user experiences via over-the-air updates as automakers upgrade their current systems to deliver next-gen features and capabilities to their drivers today.'
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Yahoo
23 minutes ago
- Yahoo
Stop hiring humans? Business leaders face AI labour arbitrage
Advertising almost always appeals to the aspirational. But AI platform, has bucked this convention by plastering fear all over the London Underground. The provocative strapline 'Stop Hiring Humans: The Age of the AI Employee is Here' is part of a poster adverting campaign on London's public transport that taps into deep public mistrust that AI will replace human work. The Stop Hiring Humans ad campaign coincided with London Tech Week (9 June), opened by Prime Minister Keir Starmer who acknowledged the skepticism around AI job displacement, citing social fear of AI as an even bigger barrier to adoption than regulation. Starmer, nevertheless, urged the audience of technology professionals and business leaders, 'I think we have to lean in', as Nvidia CEO Jensen Huang, with whom he shared the stage, urged the audience to view AI as a great equaliser. "The way you program AI is the same way you program a person,' said Huang, noting that almost anyone can program AI because while not everyone can code, everyone knows 'human'. Huang's point was intended to be a reassuring reminder that an AI future is accessible to all. But the UK's Institute for Public Policy Research (IPPR) warns of an AI job apocalypse in which eight million jobs in the UK could be at risk due to AI advancements. The report highlights that, as of March 2024, AI affected 11% of tasks performed by UK workers, a figure that could rise to 60% as organisations further integrate AI technologies. Starmer's very presence at the event demonstrates just how important the technology industry, and AI, have become to the nation's global competitiveness. Starmer noted that in 2023 the UK's AI sector grew 30 times that of any other sector. With such dynamic growth, a propensity to underplay the associated risks may well be expected. In June, IBM published a survey of 2,000 CEOs from 33 countries and 24 industries carried out between February and April 2025 which found that 58% say they are pushing their organisation to adopt generative AI more quickly than some people find comfortable, and 64% recognise the potential productivity gains are so great they must accept significant risk to stay competitive. Cloud customer service platform Zendesk's CEO Tom Eggemeier says that among the company's clients to have heavily invested in AI driven automation, hiring has actually increased by 3% on average. And while Eggemeier predicts 80% of customer service enquiries will be automated by 2030, this has not meant job displacement – so far. 'A lot of companies are taking savings from automation and reinvesting it into humans to do more sophisticated tasks, and interacting at the root cause of problems. We haven't seen any labour force decrease materially,' he says, adding: 'It could in the future.' To date, GenAI has not significantly impacted the workforce, despite widespread concerns, says GlobalData principal analyst, Isabel Al-Dhahir, because GenAI tools have yet to demonstrate the requisite level of autonomy and Al-Dhahir says the emergence of agentic AI and advanced reasoning models will notably impact workforce structures, as this is among its intended purposes. 'Numerous startups focused on agentic AI, with an emphasis on enhancing workplace efficiency, cite the reduction of headcount growth as one of their principal advantages,' she says. On 9 June, Anthropic CEO Dario Amodei publicly referred to AI as precipitating a 'white-collar bloodbath', predicting that half of entry level roles will be eliminated by 2030. Just as 'Stop Hiring Humans' advertising campaign grabbed public attention, so too do the gloomy assertions of public figures like Amodei. But Anthropic's own research, published in Feb 2025, demonstrates a much more nuanced and far less certain outlook. Analysing millions of conversations on Anthropic's the company's research sought to demonstrate empirical AI usage patterns. To Dahir's point on role augmentation versus role automation, the analysis revealed that this difference matters for both workers and productivity. 'When AI serves as an augmentative partner rather than a replacement, studies have shown improved productivity while maintaining individuals' meaningful engagement in their work,' according to the report. The report demonstrated that current usage splits nearly evenly between automation (43%) and augmentation (57%) of human capabilities. The research is careful to note that these findings only describe the very early cycle of AI transformation the market is currently in. 'As AI systems expand beyond text to handle video, speech, and physical actions through robotics, and as AI agents become more capable of carrying out extended tasks autonomously, the nature of human-AI collaboration is poised to transform dramatically,' according to the report. New tasks and even entirely new occupations may emerge around these capabilities, according to the report, something that is repeatedly offered by tech leaders as a leap of faith antidote to fears around job displacement. But Al-Dhahir warns: 'If tech leaders become overly reliant on their new digital colleagues, they risk overlooking opportunities for new job creation where humans remain the superior choice. C-suite strategy should therefore not be focused exclusively on where AI can improve its operations, but also on how necessary human skills will be complementary,' adds Al-Dhahir. The research also found peak usage of AI in mid-to-high wage occupations, with 'notably lower usage at both extremes of the wage distribution' which does, indeed, reflect Amodei's public rhetoric around the loss of white-collar work. There are some instances where AI augmentation can fill an employee void. Zoom's head of solution engineering for EMEA, Helen Hawthorn, sees AI as an invisible colleague to take on the routine tasks that keep employees from focusing on their core roles. Hawthorn notes the example of where companies have eliminated executive assistant roles and employees are overwhelmed with additional administrative tasks. 'Executive assistant roles are either disappearing, or they've disappeared already. Companies are saying, you now do it. That's actually meant longer days for most people,' says Hawthorn. 'A virtual executive assistant means you're not having to work every day of the week,' she adds noting that this leaves more time for higher value work. Hawthorne's point tallies with Anthropic's research which identified a pattern of AI currently affecting only a subset of tasks within jobs, suggesting occupations will evolve rather than disappear. 'However, if the breadth of task usage grows without signs of saturation, that may suggest the possibility of a more comprehensive workplace transition,' according to the report. Even if tech leaders choose to implement AI for augmentation rather than full automation of roles, gaining employee trust is a continuing challenge. The risk of employee backlash, and the optics of wholesale layoffs in favour of automation, are real. In April, Shopify CEO Tobias Lütke announced that employees requesting more resources would need to prove they 'cannot get what they want done using AI,' according to an internal memo posted to X. The best AI implementation route focuses on enabling the people who can turn uncertainty into action, says Aleksandra Osipova, an AI strategist and founder of Apricity Lab. "Imagine two scenarios. One: you buy the tools, hire the agency, and your team watches from the sidelines, disconnected, anxious, and increasingly you upskill your existing talent. You give them the structure, support, and green light to experiment. Now they're not just using AI, they're building with it. They're creating internal solutions, launching new initiatives, and exploring entirely new revenue streams," says Osipova. "The best strategy in a fast-moving market is not automation, it's activation. Your best people are already in the room. Give them momentum,' she adds. Lütke's strategy was a little more heavy handed. 'What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects,' Lütke asked his employees along with adding AI usage questions to performance and peer reviews. None of which went any way to addressing the fear that their employer might, one day, stop hiring humans. "Stop hiring humans? Business leaders face AI labour arbitrage" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
Companies are overhauling their hiring processes to screen candidates for AI skills—and attitudes
As companies race to incorporate AI into their workflows, it's not only models and tools they're relying on for a competitive advantage but, increasingly, people. Across industries, 66% of business leaders said they would not hire someone without AI skills, according to the 2024 Work Trend Index Annual Report by Microsoft and LinkedIn. Company leaders and professionals in the hiring space say they're now specifically considering candidates' proficiency with AI tools and sometimes even prioritizing these skills over professional experience. They're also reimagining their hiring processes, developing new ways to screen for candidates' familiarity with and ability to use AI tools. Their approaches range from focusing interview conversations on AI—providing an opportunity to gauge a person's familiarity with and attitude toward the technology—to having candidates complete tasks with AI tools and observing how they use them. 'Every organization is—no matter what the skill set might be—looking to see if they can find someone that potentially has some experience with AI, and specifically generative AI, and now you've got agentic AI on the horizon, so they're definitely looking for people who have experience in those areas,' said Thomas Vick, senior regional director for technology at talent and consulting firm Robert Half. Vick said he noticed the emphasis on AI skills in hiring emerge about a year ago and continue to accelerate ever since. The clear trend is that AI skills are now deemed as important as experience and education. In the LinkedIn and Microsoft report, which included insights from a survey of 31,000 people from 31 countries, 71% said they would hire a less experienced candidate with AI skills over a more experienced candidate without them. PwC's 2024 AI Jobs Barometer states that skills sought by employers are changing at a 25% higher rate in occupations most able to use AI, such as developers, statisticians, and judges. Additionally, a study on hiring trends in the U.K. found that candidates with AI skills are landing wages 23% higher compared to those without, making a greater difference than higher degrees up until the PhD level. Alyssa Cook, a senior managing consultant at hiring and staffing firm Beacon Hill, has also observed that hiring teams are more willing to hire candidates with AI skills. What's more, she said, skills with specific AI tools a company is using or wants to adopt can even take precedence over an overall greater depth of experience with AI. 'Companies would rather hire a candidate who has hands-on experience with a particular tool they are implementing if they have the ability and interest to train up on other skills,' she said The newfound focus on AI skills in hiring is happening across the various departments of companies. Vick said he's seen it across accounting, finance, creative roles, and especially technical roles. According to job listing data cited by the Wall Street Journal, one in four U.S. tech jobs posted so far this year are looking for people with AI skills. Automation firm Caddi is one company where this is playing out across the organization. CEO Alejandro Castellano said interviewers regularly ask candidates about their experience using AI tools; for technical candidates, the firm encourages individuals to use AI coding assistants like Cursor, Claude Code, or Copilot during code analysis and technical exercises. 'We want to see how they work in real conditions,' said Castellano. The approach flips on its head the way companies have traditionally tested candidates for software engineering jobs. Typically, coding tests have been designed to isolate candidates from their real workflows in order to assess their fundamental knowledge. In a world where AI tools are increasingly used to help employees accomplish particular tasks, however, this old approach hardly makes sense. In their day-to-day duties, developers and engineers must be able to work effectively with these systems to enhance their own productivity—not delve into the realm of theory and concepts. 'We're moving toward exercises that reflect how engineers actually work, how they search, use AI suggestions, and debug. We care as much about how they solve a problem as we do about the end result,' Castellano said. Ehsan Mokhtari, CTO of ChargeLap, a company that creates software for electric-vehicle charging, said encouraging candidates to use AI tools has become a formal part of the firm's hiring process. The effort started a year ago after it was noticed that candidates were avoiding using AI tools, assuming they would be penalized for it. So the company revamped its hiring process and its broader operations to embrace AI tools, starting with restructuring take-home challenges for technical candidates and then rolling out the effort for positions across the company. 'We started with engineering, but we're now pushing it org-wide. Sales came next—they were surprisingly fast to adopt AI. Tools like ChatGPT are now common for them for research and outbound comms. We've made AI literacy part of departmental OKRs,' Mokhtari said. 'That means every function—support, product, sales, engineering, operations—is expected to include it in their hiring considerations.'In working with clients on their hiring, Robert Half's Vick has seen a variety of approaches to screen candidates for AI skills. Some companies are turning to their contractors, Vick says, asking those with AI experience to help them evaluate candidates during the interview process. One of the most popular techniques he's seen is bringing job candidates into a 'sandbox' environment and having them actually show how they would utilize AI within that environment to complete various tasks. It's the same idea as the reimagined coding assessments, but applicable to any role in the organization. While company leaders generally say they would hire a candidate who is proficient with AI over one who isn't, they also stress that there's more to it than skills: Attitude also plays a significant role. ChargeLab's Mokhtari explained that he looks at AI proficiency in two layers: skill set and mindset. While skill set is highly desirable, it can also be easily taught. Mindset, however—being proactive in using AI, curious about where it can add value, and not being combative toward it—'is harder to coach and more important long-term,' he said. Castellano echoes this idea. He's found that understanding how someone thinks about and works with AI is one of the strongest signals the company has found to gauge that person's ability to keep delivering value in a fast-changing environment. 'We're not just looking for people who know the tools,' he said. 'We're looking for those who are curious, adaptable, and thoughtful about how they use AI. That mindset makes the biggest difference.' This story was originally featured on
Yahoo
23 minutes ago
- Yahoo
OpenAI says this state will play central role in artificial intelligence development
New York is poised to play a central role in the development of artificial intelligence (AI), OpenAI executives told key business and civic leaders on Tuesday. OpenAI CEO Sam Altman spoke at a private event hosted by the Partnership for New York City and the AI firm revealed a report showing that New York is well-positioned to play a central role in AI development, unlike during other stages of the digital economy, a source familiar with the event told FOX Business. Altman spoke to the business and civic leaders in attendance and outlined how he sees AI progressing in the next three years as well as why he sees New York as well-positioned to play a leading role in AI development. According to a copy of the OpenAI report obtained by FOX Business, New York is the top market in the world for active users of the enterprise version of ChatGPT. It also ranks second among U.S. states in terms of developers building their products on OpenAI's infrastructure, while it trails only California and Texas in terms of weekly ChatGPT users. Openai Backs Off Push To Become For-profit Company "OpenAI belongs here," the company wrote in the report. OpenAI said it has more employees working out of its office building in New York City than in any other office aside from San Francisco, and that it has room to triple its size. Read On The Fox Business App "New York's world-class higher ed institutions and irresistible pull for graduates from around the world will help us deliver on our mission to build AI that benefits the most people possible," OpenAI wrote. OpenAI chief economist Ronnie Chatterji also spoke to the business and civic leaders in attendance about how AI can increase productivity and fuel economic growth, according to a source familiar with the event. Openai Shakes Up Corporate Structure With Goal Of Scaling Up Agi Investment The report noted that economists have projected a wide range of increased productivity from AI, ranging from 0.06% at the low-end to 18%. OpenAI explained that even at the low end, it would add billions of dollars to U.S. gross domestic product given a nearly $30 trillion GDP. It also said factors that will affect the advancement of AI include geography, organizations and values. OpenAI added that implementing commonsense rules to protect people from the harms of AI and based on democratic values like those the U.S. has represented on the world stage will help ensure the technology helps as many people as possible. OpenAI's report also addressed concerns some have raised about the impact of AI on the labor force, as the company wrote that new innovations often complement workers rather than substitute them. It also said new technologies can lead to the creation of new types of jobs, noting that most of the professions in the workforce today didn't exist prior to article source: OpenAI says this state will play central role in artificial intelligence development
