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ADP Representative
ADP knows any big thing, any small thing, any trendy thing, even a trendy thing that everyone knows isn't a great idea, but management just wants us to give it a try for a bit. Can change the world of work. From HR to payroll, ADP designs forward thinking solutions to take on the next anything.
James Rundle
Welcome to Tech News briefing. It's Monday, January 13th. I'm James Rundle for the Wall Street Journal. Self driving cars can perform well in ideal conditions so such as the sunny streets of Phoenix. But when it comes to ice and snow, they can struggle. We'll hear why one company thinks smarter tires may be the solution. And then generative artificial intelligence is being rolled out in earnest by major companies covering everything from financial analysis to marketing and customer service. WSJ reporter Bell Lynn joins us to talk about how some companies are using the tech right now to save money and in some cases replace humans. But first, while autonomous vehicles or AVs are now common sights in the Bay Area, they haven't seen the same success in colder parts of the U.S. that's because, among other reasons, AVs often struggle with understanding the particulars of driving in snowy or icy conditions. WSJ reporter Isabel Busquet joins us to talk about how tyre maker Goodyear is developing new tech aimed at solving these problems. So, Isabelle, what has been the issue with AVs and how they handle conditions like cold and ice?
Isabel Busquet
One of the biggest problems is actually the braking system. So cars take longer to brake when there's inclement weather, when there's snow or ice or wet streets. And that's one of the things that self driving cars have struggled to account for so far. And they don't always know the conditions of the tires or what type of tires they have. And that also affects how long it will take to brake in various conditions. So those braking systems have sort of been a sticking point.
James Rundle
So why is this becoming an important issue for AVS now?
Isabel Busquet
It's becoming an important issue because we're sort of at the point where they're scaling up in terms of the number of passengers they're taking. Waymo is becoming pretty popular out on the west coast in cities like San Francisco. As of October, it was doing 100,000 paid rides a week. We're seeing other companies like Tesla and Amazon trying to move into this space as well, but seeing it a lot in these sort of drier west coast climates. There's the expectation that these self driving fleets are going to want to scale into more inclement weather, tougher climates at some point. And so this is definitely an issue that they'll have to solve.
James Rundle
What has Goodyear done to try to break through this challenge?
Isabel Busquet
Yeah, essentially what they've done is they've created this technology that uses data about what the weather is and also data about the type and condition of the tire to create a more nuanced and accurate prediction of how long it will take a given car to brake in given conditions. So it can grab data about the weather either off the front and rear cameras on the vehicle. It can also tap into third party weather data sources. And then of course, it knows what kind of tire it is and how old that tire is. And then based on that, it can generate a more accurate prediction. They produce these sensors that they can put in tires, and that would probably give them the most accurate prediction of exactly what the friction level is on the road surface at that given moment. Because that's really like what they're trying to get at with all that data about the weather is like really what is the friction on the road. But that's something that's still emerging. They haven't really found a great way to power those sensors, sensors yet. They're looking at batteries and other kinds of things.
James Rundle
It's not just EVs that have issues with braking distances. Is this just applicable to AVs or can human operated cars benefit as well?
Isabel Busquet
That's a really good point, actually. There's a mandate from the National Highway Traffic Safety administration that by 2029, all vehicles will have to have these automated emergency braking systems. So that means that anytime, any vehicle, whether it's human operated or, or self driving, headed for a pedestrian, an obstacle, another car, it has to have an automated braking system. So this is something that could really be applicable to those types of cars as well as AVs. And Goodyear is hoping that that 2029 mandate will spur adoption of this kind of technology.
James Rundle
That was our reporter, Isabel Busquets. Coming up, major companies are now deploying AI agents in a number of roles. Could they eventually displace people? And has it happened already? That's after the break.
ADP Representative
ADP imagines a world of work where smart machines become too smart.
Isabel Busquet
Copier.
Janet
I need 15 copies of this printing, by the way. Irregardless. Not a word, Janet.
Isabel Busquet
Yeah, I know.
Janet
Page 6 should be regardless of or irrespective of, just print them, please. If it were a word, Janet, it would mean without irregard, which is copier. Switch to silent mode. Let's put a pin in it.
ADP Representative
Anything can change the world of work from HR to payroll. ADP helps businesses take on the next anything.
James Rundle
Generative. AI's ability to process vast amounts of information and talk conversationally has prompted some companies to deploy it in specialized roles. At ratings agency Moody's, for instance, AI agents take on some of the work traditionally done by analysts. While ebay uses AI to write compelling listings copy, some companies are even starting to refer to these bots as employees. Despite this, the technology still requires a lot of oversight. WSJ reporter Bell Lynn joins us now with more on how companies are embracing AI. Bel, you looked at how several companies are deploying AI. What was your overall feel for how the technology is being used?
Bell Lynn
AI agents are relatively new. They're certainly pretty immature in terms of overall company adoption, but they are promised to really deliver this next evolution of productivity because right now, when it comes to AI's use in companies, really across the whole range of sectors, there's not a lot of productivity boost or top line or bottom line impact that they're having. But AI agents are different because they actually deliver autonomous work, supposedly. So if they work, and some of these companies that I talk to say that they do work as promised, they can actually do work on their own. They can even interact with other agents to ultimately make decisions and make things a lot easier for their human counterparts.
James Rundle
You talked to several companies, including Johnson and Johnson, Moody's and ebay. Were there any examples that stood out to you in particular?
Bell Lynn
Yeah, I'm really excited about this idea of multi agent systems. And that's where you have multiple agents working together. And Moody's has 35 agents that they've built. And these agents are all designed with different personalities, with different job tasks. And so for what Moody's does, which is conduct financial research on behalf of their clients, what they told me is that it's really important for each of these agents to have distinct roles because you want them to disagree on, say, should I invest in this company? Because one agent might be looking at something specific like geopolitical risk. And other agents just looking at the P and L statement and saying things look really good. And so you want them to have these specific avenues that they're looking down and saying, how do I weigh these different factors and tell the client the best answer on whether or not to invest in a company.
James Rundle
The Moody's example is really interesting. We've heard companies say that AI is used to augment humans a lot of the time, but looking at some of the use cases in your story, it does seem that humans are being replaced in some instances. Did you get that sense?
Bell Lynn
Oh, absolutely. None of what AI does and the sort of next wave of automation is possible without some human replacement and some, you could call it, augmentation. The idea is that a lot of these agents or chatbots can do this work for humans a lot better, but that means that there's less work to go around. The best case scenario is that the agents help us do our jobs better and faster. And then the worst case scenario is that we don't need as many of us because there's more of our digital colleagues.
James Rundle
What workers should be concerned then?
Bell Lynn
Workers should certainly be concerned when they feel like they're not able to learn or use AI to the best of their ability to stay up to date on how the technology is evolving. What I often hear from, whether it's economists or people who follow these job trends, is people should be keeping up with what AI can do and harnessing it so that it's not really the people who will be replaced by AI, but it's the people who don't use AI who might be replaced by it.
James Rundle
And from your reporting, how are companies controlling the deployment of AI in terms of oversight, in terms of monitoring?
Bell Lynn
Some of these AI agents, and really a lot of them are not quite ready to sort of run amok. And with more autonomy comes more challenges and more cybersecurity risk. So the great thing about an agent that can tell you whether or not to invest in a company or submit a holiday request for you is that you don't have to do the work. But at the same time, that opens up a whole potential world of pain because you don't want that agent to access data that it shouldn't have about your colleagues or about pay information from the rest of the company that could cause it to hallucinate and give you the wrong investment. And so companies are really approaching agent rollout with caution and trying to even programmatize that so it doesn't have to be so manual. But right now it's important for the manual processes to be in place.
James Rundle
And did any of the companies talk about how these AI agents are maybe saving them money or are they costing them?
Bell Lynn
Yeah, absolutely. The question around AI's return on investment is a really big one. Right now I'm on the companies that we talk to. There's been an increasing sort of scrutiny on whether or not these investments can pay off. And that's why AI agents are sort of looked to as maybe a promised answer, that they can lead companies into the promised land of investment returns. Right now that's not quite proven out, but we are hearing more that companies can do things like reduce the number of workers that they might plan to hire. So that's in the instance of Cosentino, a company that specializes in creating these surface materials for interiors and exteriors. And they actually automated away a lot of their customer service processes. And so that's a true cost savings. And so for them, AI is a really good return on investment.
James Rundle
That was our reporter bell. And that's it for Tech News Briefing. Today's show was produced by Julie Chiang with supervising producer Katherine Milsop. I'm James Rundle for the Wall Street Journal. We'll be back this afternoon with TMB Tech minutes. Thanks for listening.
ADP Representative
ADP knows any big thing, any small thing, any trendy thing, even a trendy thing that everyone knows isn't a great idea but management just wants us to give it a try for a bit can change the world of work. From HR to payroll. ADP designs forward thinking solutions to take on the next anything.
Host: James Rundle
Release Date: January 13, 2025
Podcast: WSJ Tech News Briefing by The Wall Street Journal
In the January 13, 2025 episode of WSJ Tech News Briefing, host James Rundle delves into two significant advancements in the tech industry: the challenges faced by autonomous vehicles (AVs) in adverse weather conditions and the burgeoning deployment of generative AI agents across major companies. This episode sheds light on how these technologies are shaping industries, their potential to replace human roles, and the broader implications for the workforce.
Autonomous vehicles have made remarkable strides, especially in favorable conditions like the sunny streets of Phoenix. However, James Rundle highlights persistent issues AVs encounter in colder climates. WSJ reporter Isabel Busquet explains that AVs struggle with braking in snowy or icy conditions due to inadequate adaptation of their systems.
"Self-driving cars can perform well in ideal conditions... but when it comes to ice and snow, they can struggle."
— James Rundle [00:18]
To address these challenges, Goodyear is pioneering the development of smarter tires equipped with advanced sensors. Isabel Busquet details how Goodyear leverages data from vehicle cameras and third-party weather sources to predict braking distances more accurately.
"Goodyear is developing new tech aimed at solving these problems by using data about the weather and the condition of the tires to make more accurate predictions."
— Isabel Busquet [02:49]
Despite these innovations, Goodyear faces obstacles in powering these sensors effectively, with solutions like batteries still under exploration.
The discussion extends beyond AVs, noting that automated emergency braking systems mandated by the National Highway Traffic Safety Administration (NHTSA) by 2029 will benefit both autonomous and human-operated vehicles.
"By 2029, all vehicles will have to have automated emergency braking systems... applicable to any vehicle, whether human-operated or self-driving."
— Isabel Busquet [04:09]
Generative AI's conversational capabilities and data processing power are prompting major companies to integrate AI agents into various roles. James Rundle introduces the segment by referencing AI's application in financial analysis, marketing, and customer service.
"Generative AI's ability to process vast amounts of information and talk conversationally has prompted companies to deploy it in specialized roles."
— James Rundle [05:43]
Moody’s: Multi-Agent Financial Analysis Bell Lynn, a WSJ reporter, discusses how Moody’s employs 35 AI agents, each with distinct personalities and task specializations, to conduct comprehensive financial research. This multi-agent system allows for nuanced decision-making by having agents evaluate different factors such as geopolitical risks and financial statements.
"Moody's has 35 agents... each designed with different personalities and job tasks to evaluate various factors for investment decisions."
— Bell Lynn [07:18]
eBay: Automated Content Creation eBay utilizes AI to generate compelling listings copy, streamlining the process and enhancing marketing efficiency.
Cosentino: Customer Service Automation Cosentino has successfully automated significant portions of their customer service operations using AI agents, resulting in substantial cost savings.
"Cosentino automated away a lot of their customer service processes, leading to true cost savings."
— Bell Lynn [10:30]
The deployment of AI agents raises questions about human labor displacement. Bell Lynn observes that while AI agents can enhance productivity, they also pose the risk of reducing the need for human workers.
"AI agents can do work on their own, which means there's less work to go around."
— Bell Lynn [08:23]
However, she emphasizes the importance for workers to adapt by learning and harnessing AI technologies to remain relevant in the evolving job market.
"People should be keeping up with what AI can do and harnessing it so that it's not the people who are replaced by AI, but those who don't use AI."
— Bell Lynn [08:59]
Companies are cautious in deploying AI agents due to risks associated with autonomy and cybersecurity. Proper oversight ensures that AI agents do not access sensitive data or produce erroneous outputs.
"With more autonomy comes more challenges and more cybersecurity risk... companies are approaching agent rollout with caution."
— Bell Lynn [09:33]
The financial viability of AI agents is a critical consideration. While some companies like Cosentino have realized cost savings, the overall ROI of AI agents remains under scrutiny.
"AI agents are looked to as a promised answer for investment returns, but that's not quite proven out yet."
— Bell Lynn [10:30]
The episode underscores the dual nature of technological advancements. On one hand, innovations like smarter tires are enhancing the reliability of autonomous vehicles in challenging conditions. On the other, the integration of AI agents in corporate settings is revolutionizing productivity and operational efficiency, albeit with significant implications for the workforce. As companies navigate these changes, the balance between leveraging AI for growth and managing its impact on employment remains a pivotal concern.
Tech News Briefing by The Wall Street Journal provides daily insights into the latest trends and discussions in the technology sector. Hosted by industry experts, the podcast features breaking tech news, exclusive interviews, and in-depth analysis of innovations and policy debates shaping the future.