News

A new study by researchers at the University of Pennsylvania, highlighted by The Economist, raises concerns about the potential use of AI to judge individuals solely based on their facial characteristics. The study aimed to determine if AI could detect trustworthy people by analyzing their facial features. This research builds on previous studies that suggest personality traits can be determined from facial features, a highly controversial and ethically problematic concept. The UPenn team claims that AI can accurately predict important characteristics such as respectfulness and trust linked to financial success by analyzing facial scans.

The study used an AI system trained on face-based personality detection to extract traits from headshots of 96,000 MBA graduates from LinkedIn. The researchers inferred a correlation between the identified traits and the graduates’ success in the labor market. For example, extroversion was identified as the strongest positive predictor of compensation, while openness suggested lower earnings.

The potential implications of this research are alarming, as it suggests a future where decision-making processes for job applications, loans, or rentals could be influenced by facial analysis alone. The Economist points out that corporations may find a ‘strong incentive’ to deploy such technology in a society where financial success reigns supreme.

A federal jury in California has ruled that Apple must pay medical device maker Masimo $634 million for violating a patent on blood oxygen monitoring technology. The jury found that features in the Apple Watch, such as workout mode and heart rate notifications, infringed on Masimo’s patent. Masimo, which is dedicated to developing technology that benefits patients, expressed satisfaction with the verdict and its commitment to defending its intellectual property rights.

Apple, however, plans to appeal the decision, arguing that the patent in question is specific to outdated patient monitoring technology. The legal dispute between the two companies centers on pulse oximetry, with Masimo accusing Apple of hiring away its employees and infringing on its patents in this area. The ongoing conflict has led to a ban on importing Apple Watches with blood oxygen monitoring features and the introduction of a new feature by Apple to circumvent this ban. Both companies continue to engage in legal battles surrounding the issue.

The 43-day government shutdown, the longest in US history, has finally come to an end. While air traffic resumes and food assistance is restored, the underlying political divisions that caused the shutdown remain unresolved. Democrats and Republicans continue to clash over health subsidies, and the deal only funds the government until January 30, leaving the possibility of another shutdown looming. Despite federal workers receiving back pay, the economic impact of the shutdown is significant, delaying approximately $50 billion in spending and causing disruptions across various sectors. The shutdown has highlighted the challenges faced by both parties and the need to find lasting solutions to prevent future government closures.

More than 1,000 Starbucks unionized baristas in over 40 U.S. cities have initiated an indefinite strike to secure a collective bargaining agreement for higher pay and increased staffing levels. The walkout, starting with 65 stores, coincides with the Red Cup Day event, with minimal disruptions reported so far. The union, representing employees at about 550 stores, aims to make this strike the largest and longest in Starbucks history, rallying in various cities including Seattle, New York, and Philadelphia.

Talks between the union and the company have stalled since 2024, prompting the strike as negotiations have regressed, resulting in rejected proposals and demands for better working conditions and fair treatment. Investors are closely monitoring the situation, urging both parties to come to an agreement as the market impact continues to be felt. Past protests on Red Cup Day have led to similar actions in previous years, highlighting ongoing issues within the company.

According to payroll processor ADP, U.S. firms were shedding more than 11,000 jobs a week through late October. Despite a recent report indicating a gain of 42,000 jobs in October, the latest data suggests ongoing weakness in the labor market. ADP’s chief economist, Nela Richardson, noted the struggle to consistently produce jobs in the latter half of the month. This evolving hiring trend may prompt further reductions in the Federal Reserve’s benchmark interest rate, with investors expecting another cut at the December 9-10 meeting. ADP’s weekly payroll estimates serve as an alternative to official statistics currently unavailable due to the U.S. government shutdown.

As policymakers monitor the job market, developments in job creation and reductions will influence decisions regarding interest rates. The Fed’s recent rate cuts reflect concerns over weakening job market conditions, with potential for further adjustments in response to ongoing trends. The flow of data from the Bureau of Labor Statistics is expected to resume once the government shutdown ends, enabling policymakers to make informed decisions based on official statistics. Reporting by Howard Schneider emphasizes the importance of monitoring job market trends in relation to Federal Reserve policy decisions.

Job losses in the government and retail sectors, along with a spike in planned layoffs due to cost-cutting and adoption of artificial intelligence, have contributed to a 4.36% unemployment rate in October, according to reports from various sources like Revelio Labs, the Chicago Fed, and Challenger. The ongoing government shutdown has led to a lack of official economic data, making it challenging to fully assess the labor market conditions.

However, private reports are painting a concerning picture, with thousands of jobs lost in October and a significant increase in announced layoffs across different industries, particularly driven by technology companies and mass job cuts at Amazon. Despite some moderate gains in certain sectors like education and health services, the overall trend signals a weakening labor market, with hiring intentions declining and businesses tightening their belts amidst economic uncertainties.

Rivian has unveiled its second spinoff company of the year, Mind Robotics, focusing on leveraging industrial AI to transform how physical world businesses operate. The venture will utilize Rivian’s operations data as the foundation for a robotics data flywheel, aiming to enhance efficiency in manufacturing plants. Rivian CEO RJ Scaringe emphasized the potential for AI to revolutionize operations in the physical world, leading to the creation of Mind Robotics to develop advanced AI robotics tailored for industrial applications.

Mind Robotics has secured a $115 million seed round led by VC firm Eclipse, with Scaringe serving as chairman of the board of directors. While the specifics of the venture’s operations remain undisclosed, the launch follows Rivian’s earlier spinoff of its micromobility division into Also Inc. Robotics and industrial AI are areas of increased investment, with companies like Tesla and General Motors also exploring these technologies. The groundbreaking potential of Mind Robotics hints at the growing significance of AI in reshaping industrial processes.