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In 2025, employers cited artificial intelligence as the rationale for nearly 55,000 layoffs at companies like Amazon and Microsoft. And with the new year barely underway, we’re already seeing a new crop of AI-related job cuts. Citigroup is cutting over a thousand jobs, according to Bloomberg, and in a memo this week, CEO Jane Fraser warned of more layoffs later this year. “Over time, we can expect automation, AI and further process simplification to reshape how work gets done,” she added. Meanwhile, Meta is conducting more layoffs in its virtual reality division, cutting about 1,500 jobs as part of a broader strategic shift to invest further in AI. Given these r…

In theory, AI should have transformed manufacturing by now. From predictive maintenance and fatigue detection to real-time quality control, the promise has always been smarter, faster, and safer operations. But in practice, the factory floor is still a place where AI ambitions often run into real-world limitations. That’s a huge problem, especially because the size and weight of this industry are hard to ignore. U.S. manufacturing alone contributes $2.9 trillion to the economy, accounting for over 10% of total output and supporting nearly 13 million workers, according to the National Association of Manufacturers. Globally, manufacturing represents 16% of world GDP and…

Welcome to AI Decoded, Fast Company’s weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter every week via email here. The AI ‘arms race’ may be more of an ‘arm-twist’ The big AI companies tell us that AI will soon remake every aspect of business in every industry. Many of us are left wondering when that will actually happen in the real world, when the so-called “AI takeoff” will arrive. But because there are so many variables, so many different kinds of organizations, jobs, and workers, there’s no satisfying answer. In the absence of hard evidence, we rely on anecdotes: success stories from founde…

The flap of a butterfly’s wings in South America can famously lead to a tornado in the Caribbean. The so-called butterfly effect—or “sensitive dependence on initial conditions,” as it is more technically known—is of profound relevance for organizations seeking to deploy AI solutions. As systems become more and more interconnected by AI capabilities that sit across and reach into an increasing number of critical functions, the risk of cascade failures—localized glitches that ripple outward into organization-wide disruptions—grows substantially. It is natural to focus AI risk management efforts on individual systems where distinct risks are easy to identify. A senior ex…

The rise of artificial intelligence is transforming every industry, but it also creates enormous demand for digital infrastructure and natural resources. Data centers, the engines of this transformation, consume vast amounts of water and energy. A single hyperscale data center consumes up to 5 million gallons of potable water every day. In Phoenix, 58 centers together demand more than 170 million gallons daily, enough to ​​serve up to several hundred thousand households. This is the internet’s hidden water footprint, amplified by AI, cloud computing, and data-heavy services. Training a single large AI model in a Microsoft data center can require about 185,000 ga…

If you’re in charge of an editorial team, you’re used to objections from the rank and file about using AI. “It gets things wrong.” “I don’t know what it’s doing with my data.” “Chatbots only say what you want to hear.” Those are all valid concerns, and I bring them up often in my introduction to AI classes. Each one opens a discussion about what you can do about them, and it turns out to be quite a bit. AI hallucinations require careful thought about where to apply fact-checking and “human in the loop.” Enterprise tools, APIs, and privacy settings can go a long way to protecting your data. And you can prompt the default sycophancy out of AI by telling it to give you c…

In 2026 (and beyond) the best benchmark for large language models won’t be MMLU or AgentBench or GAIA. It will be trust—something AI will have to rebuild before it can be broadly useful and valuable to both consumers and businesses. Researchers identify several different kinds of AI trust. In people who use chatbots as companions or confidants, they measure a feeling that the AI is benevolent or has integrity. In people who use AI for productivity or business, they measure something called “competence trust,” or the belief that the AI is accurate and doesn’t hallucinate facts. I’ll focus on that second kind. Competence trust can grow or shrink. An AI tool user, qu…

The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. Have you ever wanted to break up with your doctor—not because of the practitioner, but because of the difficulty in engaging with their practice? You’re not alone. I’ve left doctors for that reason and McKinsey has found that nearly 25% of consumers have delayed care because they hate everything about the process. System complexity is not doctors’ fault, but making the care experience easier for…

The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. AI won’t replace doctors anytime soon. Despite the clickbait headlines and the reports of chatbots outperforming doctors on this-or-that clinical task, medicine will always depend—literally and figuratively—on human touch. What’s interesting, though, is how AI seems to be improving that human touch. Thanks to notetaking apps, doctors can stop typing and be more present in the precious …

A year before Elon Musk helped start OpenAI in San Francisco, philanthropist and Microsoft cofounder Paul Allen already had established his own nonprofit artificial intelligence research laboratory in Seattle. Their mission was to advance AI for humanity’s benefit. More than a decade later, the Allen Institute for Artificial Intelligence, or Ai2, isn’t nearly as well-known as the ChatGPT maker but is still pursuing the “high-impact” AI sought by Allen, who died in 2018. One of its latest AI models, Tulu 3 405B, rivals OpenAI and China’s DeepSeek on several benchmarks. But unlike OpenAI, it says it’s developing AI systems that are “truly open” for others to build upon. …

Air France on Tuesday unveiled a new first-class suite as it expands efforts to lure wealthy travelers from business jets and lend a ‘French touch’ to the tussle for premium revenue. The CEO of parent Air France-KLM, Ben Smith, told Reuters the unspecified investment aimed to place Air France at the top of the European league in airline luxury, signalling a battle with British Airways and Lufthansa. “A large percentage of the customers are flying for business reasons … Many of them have the choice of a private jet or flying in first class,” Smith said in an interview. “What is new for us over the last few years is a marked increase in the number of luxury cust…

When you walk outside, you might be concerned about how a nearby idling car or a faraway factory are polluting the air you breathe. But when you’re inside, the products you use to make your home smell good—like wax melts, air fresheners, or diffusers—warrant the same worries. These products create nanoparticles that pollute your indoor air, at times even making the air inside your home more polluted than the urban outdoors. Researchers at Purdue University have been studying how everyday products create air pollution inside our homes. In a lab that resembles a tiny house—called the Purdue zero Energy Design Guidance for Engineers (zEDGE) lab—they study the emissions t…

Picture it: You’re in an economy seat on a 17-hour flight. Would you pay an extra $300 for just four hours lying flat? Air New Zealand hopes the answer is yes. The airline is finally launching its Economy Skynest lie-flat sleep pods, starting at $495 NZD ($291 USD) for a precious four hours. Passengers in economy and premium economy will have the option to book one of six individual pods nestled in three-tier bunk beds. The “nests” will be available on select Air New Zealand flights between Auckland and New York—one of the world’s longest flights. “For a country as remote as New Zealand, the journey matters,” Air New Zealand CEO Nikhil Ravishankar said in a …

Flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility, the Federal Aviation Administration said Sunday, when the agency also reported staffing-related delays in Chicago, Washington and Newark, New Jersey. The FAA issued a temporary ground stop at one of the world’s busiest airports soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed and canceled in the coming days as the nation’s air traffic controllers work without pay during the federal government shutdown. During an appearance on the Fox News program “Sunday Morning Fu…

Air traffic controllers have been in the news a lot lately. A spate of airplane crashes and near misses have highlighted the ongoing shortage of air traffic workers, leading more Americans to question the safety of air travel. The shortage, as well as aging computer systems, have also led to massive flight disruptions at airports across the country, particularly at Newark Liberty International Airport. The staffing shortage is also likely at the center of an investigation of a deadly crash between a commercial plane and an Army helicopter over Washington, D.C., in January 2025. One reason for the air traffic controller shortage relates to the demands of the jo…

Planes at New Jersey’s Newark Liberty International Airport were briefly left flying blind overnight as the airport experienced another radar outage – the second incident in less than two weeks. The most recent radar outage, first reported by ABC news, occurred just before 4 a.m. Eastern Time on Friday and lasted for a minute and a half. “There was a telecommunications outage that impacted communications and radar display at Philadelphia TRACON Area C, which guides aircraft in and out of Newark Liberty International Airport airspace,” an Federal Aviation Administration spokesperson confirmed in a statement provided to Fast Company. Why New York area planes are…

After 17 years, Airbnb’s Brian Chesky is hitting reset—reinventing the business from the ground up and expanding the brand in unexpected ways. Chesky joins Rapid Response to explain why now is the right time for Airbnb’s “great reinvention” and takes us inside his relationship with Sam Altman, revealing previously unheard details about Altman’s brief yet tumultuous dismissal from OpenAI. This is an abridged transcript of an interview from Rapid Response, hosted by the former editor-in-chief of Fast Company Bob Safian. From the team behind the Masters of Scale podcast, Rapid Response features candid conversations with today’s top business leaders navigating real-time c…

Amid dramatic disruption, what role should business play in building the future? Airbnb cofounder and CEO Brian Chesky shares his candid perspective on business, politics, creativity, and AI—tracing from Airbnb’s humble beginnings to bold plans for the company’s future. Through a designer’s lens, Chesky also reveals the single question leaders must ask themselves, and explores how best to make tricky decisions in a volatile climate. This is an abridged transcript of an interview from Rapid Response, hosted by Robert Safian, former editor-in-chief of Fast Company, and recorded live at the 2025 Masters of Scale Summit in San Francisco. From the team behind the Masters …

Since its last major redesign in 2022, Airbnb has been all about the destination. Staying in homes so unique or glamorous—from McMansions with amazing pools to surrealist homes in a shoe—that they might be worth a trip unto itself. But starting today, Airbnb is expanding its purview beyond homes…again. It’s launching a new product called Airbnb Services, and redoubling on Airbnb Experiences (first launched in 2016). What are Airbnb Services? Services considers everything you might want to accompany that home you’re renting. Photography. A manicure. A massage or spa treatment. A personal trainer. A private chef or fully catered experience. It’s basically eve…

Spain has ordered Airbnb to block more than 65,000 holiday listings on its platform for having violated rules, the Consumer Rights Ministry said Monday. The ministry said that many of the 65,935 Airbnb listings it had ordered to be withdrawn did not include their license number or specify whether the owner was an individual or a company. Others listed numbers that didn’t match what authorities had, it said. Spain is grappling with a housing affordability crisis that has spurred government action against short-term rental companies. In recent months, tens of thousands of Spaniards have taken to the streets protesting rising housing and rental costs, which many …

We’re now one month into a partial U.S. government shutdown due to a Department of Homeland Security funding lapse. Yet, employees with the Transportation Security Administration (TSA) are still expected to show up for work. As of last Friday, many TSA employees missed their first full payday and instead received $0 paychecks. Due to financial concerns, many have been calling out sick or resigning to find alternative income sources. Staffing issues have led to longer lines and increased wait times at U.S. airport security checkpoints nationwide. Now the CEOs of major U.S. airlines are publicly calling on Washington to end the shutdown. In an open le…