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The most unlikely companies employing AI

Obvious tech use case not necessary!

Rani Molla
8/29/24 10:01AM

Companies need not be in tech, or even tech-adjacent, to take part in the AI hullabaloo. In fact, part of what’s contributed to AI’s buzz is the potential to use the technology anywhere. Still, it can be shocking to hear companies in such quotidian industries as food service or consumer goods leaning into the AI revolution.

Here are some of the most unlikely companies we’ve heard pushing AI strategies on their latest earnings calls.

Bath & Body Works
CEO Gina Boswell:

Our Generative AI fragrance finder, Gingham Genius, will launch in the important fourth quarter, providing customers a personalized fragrance finding experience using large language models and the power of our data.

Yum! Brands
CFO Chris Turner:

We deepened our AI pursuits this quarter, taking steps to unlock the benefits of our RED 360 database and engage with an innovative start-up in the AI-driven personalization space to leverage our massive first-party data assets. This partnership covers the application and integration of a deep learning AI approach known as reinforcement learning, which we expect to be broadly and easily scalable across brands. This partnership will focus on our basic CRM channels and in the future, may extend to our other consumer sales and communications channels, for instance, paid media.

...

As you recall, last quarter, we discussed plans to expand drive-thru voice AI technology to more Taco Bell stores.

I'm excited to announce that given our encouraging early results, the team has accelerated the rollout. And as of today, we now have this technology operational in over 100 Taco Bell stores. We plan to scale this technology to several hundred stores by year-end, while a pilot test is underway in KFC Australia. In our tests, we have witnessed consistent consumer experiences and higher team member productivity.

Kraft Heinz
CEO Carlos Abrams-Rivera

Expanding options and functionality is more important today than ever as consumers want choices that provide unique benefits, such as dairy-free, plant-based, and immunity support. Our partnership with NotCo has allowed us to expand such options while using AI technology to deliver delicious taste and texture.

Starbucks
CFO Rachel Ruggeri

Our new store revenue is highly incremental, adding an average of nearly 90% to the trade area attained by our world-class store development partners and their rigorous work that leverages AI-assisted strategic site selection process.

Chipotle Mexican Grill CEO (and soon-to-be Starbucks CEO) Brian Niccol

So there's a lot of things going on back of house to make us more effective culinary-wise, prep-wise, which then sets us up to be successful consistently on the front line and the digital makeline. I've talked about these things also where we're also experimenting with AI and vision to ensure that our teams get the support. I'm actually reading a great book right now, it's called Co-Intelligence. It talks about how you use AI as a partner and that's really what – you've heard us talk about this, it's cobotics, right? I think now this is – I like this term, co-intelligence, to help our teams be more effective with forecasting, executing every single bowl correctly, bringing things up exactly correctly.

Coca-Cola
CEO James Quincey

Our system is also piloting an AI driven initiative to push personalized messages to retailers with suggested items based on previous orders and market data. Initial pilots indicate that retailers who receive the messages are over 30% more likely to purchase recommended SKUs, which results in incremental sales for our retailers and the system.

In case you’re wondering: Build-A-Bear did not mention AI on its earnings call today.

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Report: Microsoft adds Anthropic alongside OpenAI in Office 365, citing better performance

In a move that could test its fraught $13 billion partnership, Microsoft is moving away from relying solely on OpenAI to power its AI features in Office 365 and will now also include Anthropic’s Claude Sonnet 4 model, according to a report from The Information.

The move is a tectonic shift that boosts Anthropic’s standing, heightens risks for OpenAI, and has huge ramifications for the balance of power in the fast-moving AI field.

Per the report, Microsoft executives found that Anthropic’s AI outperformed OpenAI’s on tasks involving spreadsheets and generating PowerPoint slide decks, both crucial parts of Microsoft’s Office 365 productivity suite.

Microsoft will have to pay the competition to provide the services —Amazon Web Services currently hosts Anthropic’s models while Microsoft’s Azure cloud service does not, The Information reported.

OpenAI is also reportedly working on its own productivity suite of apps.

The move is a tectonic shift that boosts Anthropic’s standing, heightens risks for OpenAI, and has huge ramifications for the balance of power in the fast-moving AI field.

Per the report, Microsoft executives found that Anthropic’s AI outperformed OpenAI’s on tasks involving spreadsheets and generating PowerPoint slide decks, both crucial parts of Microsoft’s Office 365 productivity suite.

Microsoft will have to pay the competition to provide the services —Amazon Web Services currently hosts Anthropic’s models while Microsoft’s Azure cloud service does not, The Information reported.

OpenAI is also reportedly working on its own productivity suite of apps.

tech

Apple announces extra slim iPhone Air, iPhone Pro with longer battery life, updated AirPods Pro 3 with live language translation, and refreshed Apple Watch line

At todays Awe Dropping Apple event, the company announced its yearly refresh of the iPhone lineup. The new iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max were joined by a brand-new addition: the iPhone Air, a superthin model with tougher glass and faster processors.

Apple shares dipped on news of the product releases and are down about 1.4% on the day in afternoon trading.

The company also announced an updated Apple Watch line — Series 11, SE3, and Ultra 3 — with new features like 5G, high blood pressure detection, 24-hour battery life, and satellite communication. 

Apple iPhone 17
Apple’s iPhone 17 (Photo: Apple)

Here’s a breakdown of the new products Apple announced:

  • The ultrathin iPhone Air was described by Apple as “a paradox you have to hold to believe.” The sleek 5.6-millimeter-thin iPhone features a crack- and scratch-resistant front and back and “Macbook Pro levels of compute,” which you can pair with a weird $59 cross-body strap. It starts at $999.

  • The iPhone 17 has a faster A19 chip, an improved smart selfie camera, and a higher-resolution screen. It starts at $799.

  • The iPhone 17 Pro has a new design, ever-faster A19 Pro chip, a tougher ceramic shield on the front and back, better cameras, and a bigger battery that gets an extra 10 hours of video playback compared to its predecessor. It costs $100 more than the previous generation, but the minimum storage has doubled to 256 gigabytes. It starts at $1,099.

  • The iPhone 17 Pro Max starts at $1,199.

  • The AirPods Pro 3 have AI-powered live translation, a new heart rate sensor, eight hours of battery life, and improved active noise cancellation. The new AirPods can also track workouts, and Apple says they are built to fit more people’s ears with a new design and foam ear tips. They start at $249.

  • The Apple Watch Series 11 has 5G, a new high blood pressure detection feature, improved sleep tracking, a more scratch-resistant face, and 24 hours of battery life.

  • The entry-level Apple Watch SE 3 gets 5G, new health-tracking features, and an always-on display. It starts at $249.

  • The chunky Apple Watch Ultra 3 has an impressive 42-hour battery life, satellite communications for emergencies, and a brighter and bigger display. It starts at $799.

tech

Nebius soars after signing a 5-year deal with Microsoft to supply nearly $20 billion worth of AI computing power

Artificial intelligence infrastructure group Nebius jumped more than 50% in early trading on Tuesday after the company announced after the close on Monday a major deal to supply computing power for Microsoft’s AI operations.

Under the agreement, Nebius — which rose from the ashes of Russian tech giant Yandex — will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The New Jersey data center has a capacity of 300 megawatts. The total contract value through 2031 is $17.4 billion, though, if further capacity is required, the contract value could rise to $19.4 billion.

The deal represents a sizable portion of Microsofts proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.

Nebius and competitor CoreWeave are both on the short list of startups that Nvidia has invested in. Nvidia’s small stake in the former is now worth about $120 million.

Under the agreement, Nebius — which rose from the ashes of Russian tech giant Yandex — will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The New Jersey data center has a capacity of 300 megawatts. The total contract value through 2031 is $17.4 billion, though, if further capacity is required, the contract value could rise to $19.4 billion.

The deal represents a sizable portion of Microsofts proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.

Nebius and competitor CoreWeave are both on the short list of startups that Nvidia has invested in. Nvidia’s small stake in the former is now worth about $120 million.

President Trump hosts tech executives and their guests to a dinner at the White House in the Oval Office.

Here are the Trump ties among the tech leaders who had dinner at the White House

Many of the attendees have donated to, vocally supported, or even worked for the president.

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