Welcome to this week’s AI edition — your roundup of the latest in artificial intelligence.

As I’ve noted before, Bloomberg has long been at the forefront of AI. For more than 15 years, we’ve used these tools to help clients cut through the massive flow of market data and turn information into insight.

Since ChatGPT put AI into the public spotlight just four years ago, new tools and models have flooded the market. Yet for most users, adoption remains in its early stages, even as opportunities multiply by the day.

As AI expands, so does the need for human judgment — keeping people in the loop to ensure decisions reflect values, not just data.
That balance is on full display in how Wall Street is experimenting with and using AI.

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Goldman Sachs Bankers Explore Limits of AI: ‘The Risk is Over-Reliance’ (Financial Times)

Goldman Sachs rolled out its own generative AI-powered platform, GS AI Assistant, to all 46,000 employees in June, telling staff the aim was to help with tasks such as summarizing complex documents, drafting content and performing data analysis. Its Wall Street rivals have provided similar tools to tens of thousands of staff in recent months as they attempt to boost productivity, according to the Financial Times. 

Kerry Blum, who started at Goldman full time in 2001 and now runs the equity structuring group as a Partner within its private wealth management business, told the FT she uses the tool for as many as ten tasks a day.

“The most important limitation of AI tools is probably the risk of over-reliance,” Blum said. “We have to acknowledge [AI] is a tool and not the source of truth. It’s a way for us to do our job better, but we need to continue to focus on individual accountability and using it as a way to enhance what we’re doing, not to replace what we’re doing.”

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AI Latest

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UK Push: Google Details £5 Billion UK Investment Ahead of Trump Visit (Bloomberg)

Google plans to invest £5 billion ($6.8 billion) over the next two years to expand the UK’s artificial intelligence economy. The funding will support science and healthcare research, its London-based AI unit DeepMind, and advanced computing hardware for a new Waltham Cross data center.

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The move comes as the UK positions AI as a pillar of economic growth and coincides with US tech leaders, including OpenAI and Nvidia, announcing multibillion-dollar UK commitments during President Trump’s visit.

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While significant, Google’s UK investment represents a small portion of its projected $92.6 billion global capital spending in 2026.
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AI's New Engine: British Startup Installs New York City’s First Quantum Computer (Bloomberg)
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Oxford Quantum Circuits has installed New York City’s first quantum computer at a Manhattan data center run by Digital Realty Trust, which the company calls the world’s first “quantum-AI data center.”

Unlike traditional computers that process information in ones and zeros, quantum systems use qubits that can juggle many possibilities at once, making them especially powerful for artificial intelligence.

“This is one of the most powerful quantum computers in the world,” said Oxford Quantum CEO Gerald Mullally, adding that the technology will allow businesses to be “much more efficient at generating data that can then train AI models.”

In partnership with Nvidia, the project aims to give industries like finance faster and more effective AI tools.

Oxford Quantum plans to invest tens of millions over the coming years to scale up the system, with commercial access expected in 2026 amid accelerating global investment in quantum technology.

Early Talks: Saudi Arabia Eyes Multibillion-Dollar AI Partnership With Private Equity Titans (Bloomberg)

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Anthropic Economic Index: How AI Adoption is Diverging Across Geographies and Demographics (Anthropic)

Anthropic’s latest Economic Index highlights how AI adoption is diverging across demographics, geographies, and business use cases in the US and globally. 

The report shows that companies integrating AI into multi-step workflows achieve about three times greater productivity, while those without structured experimentation risk falling behind.

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AI usage patterns show strong geographic variation: wealthier countries and US states with knowledge-driven economies use AI more intensively, while local industries shape distinctive applications, from tourism in Hawaii to finance in New York. 

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The findings also point to a growing shift toward automation, now surpassing augmentation, especially among business API users. This underscores how quickly AI is moving from experimentation to a core productivity tool.

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Here is a map showing the diffusion of AI adoption across the globe:

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Your Digital Self: What Does Your A.I. Say About You? (AirMail)

There was a time when a person’s bookshelf or record collection revealed their character. Today, it is their sidebar of A.I. tabs — be it ChatGPT, Claude, or Grok, writes Ben Van Roo, founder of Legion Intelligence , a Bloomberg Beta-backed company that offers a secure agentic AI platform for enterprise and national security. 

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Your AI tabs are akin to the new Myers-Briggs, only more telling, revealing not only our technical preferences but our intellectual temperament, creative ambitions, and even political leanings.

Trump's UK Visit

Today in the UK: A Closer Look into Trump's Visit (Politico Playbook)

The president and first lady will spend the day at Windsor Castle, the oldest and grandest of Britain’s many royal residences, for a long-planned program of banquets, bejeweled carriages and military parades. But American viewers will see these charming images interspersed with minute-by-minute coverage of bitter domestic disputes over political violence, free speech, public health and the future of the US economy. A little cognitive dissonance may be required to get yourself through the day.

First, to the UK: Where we saw the Trumps arriving at Windsor Castle this morning. Their agenda today includes lunch with the British royal family, the laying of a wreath at the tomb of the late Queen Elizabeth II, endless grandiose military and musical performances and a full state banquet. The main political meetings with Prime Minister Keir Starmer aren’t scheduled until tomorrow.

Trump loves all this stuff, and Britain knows it. Organizers are promising the biggest military ceremony for a state visit in living memory, with an extra-large guard of honor and an elongated procession route. And remember — no US president has ever been afforded two state visits by Britain before.

The aim, of course, is simply to curry favor with Trump, using one of the few big plays this aging former empire has left — time-honored pomp and pageantry.

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What I'm Reading.

Big Day at the Fed: Fed Debate Turns to Pace of Cuts Amid Heavy Trump Pressure (Bloomberg)
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The Federal Reserve is poised to resume cutting interest rates for the first time in nine months as it grapples with a slowing labor market, stubborn inflation, and an unprecedented push by President Donald Trump for lower borrowing costs. The decision is due at 2 PM ET. 

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A cut this week, however, won’t necessarily set the Fed on a smooth glide path to lower rates.

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A string of disappointing data is fanning worries the labor market could tip into a more serious slowdown, and drag with it consumer spending and economic growth. But inflation is still above the Fed’s 2% target and could yet be driven higher by tariffs. That’s making some policymakers wary of moving too fast.

Market Anticipation: Stocks Halt Record-Breaking Rally in Fed Countdown (Bloomberg)

Wall Street traders gearing up for the Federal Reserve decision refrained from making big bets as they awaited clues on the path of rates that will shape the outlook for markets over the next few months.

A solid retail sales report showed the consumer remains strong, tempering hopes for aggressive cuts but not preventing the widely expected 25-basis-point move.

Investors will watch the dot plot and Powell’s remarks for signals on how gradual easing may unfold, with markets betting on a path that supports growth while avoiding recession.

Price Watch: Grocery Inflation Highest Since 2022 as Trump Tariffs Pile Up (Axios)

Mideast Latest: Israel’s Gaza City Sweep is Fateful for Hamas (Bloomberg)

Deal in the Works: TikTok Buyers Group to Include Oracle, Silver Lake, Andreessen (Bloomberg)
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A US investor group including Oracle, Andreessen Horowitz, and Silver Lake has reached a tentative deal to acquire TikTok’s American operations, cutting ByteDance’s stake below 20% to comply with a 2024 US national security law.

The framework, which Presidents Trump and Xi are expected to discuss this week, aims to ease a major tension point in US-China relations while allowing TikTok to keep operating in the US. 

Oracle would continue hosting TikTok’s data under “Project Texas,” though questions remain over China’s role in licensing the recommendation algorithm and whether the arrangement fully satisfies US legal requirements.

Anatomy of Two Giant Deals: The U.A.E. Got Chips. The Trump Team Got Crypto Riches. (New York Times)

This summer, Steve Witkoff, Trump’s Middle East envoy, paid a visit to the coast of Sardinia, a stretch of the Mediterranean Sea crowded with super yachts.

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On one of those extravagant vessels, Witkoff sat down with a member of the ultrarich ruling family of the United Arab Emirates. He was meeting Sheikh Tahnoon bin Zayed Al Nahyan, a trim figure in dark glasses who controls $1.5 trillion of the Emiratis’ sovereign wealth.

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In May, Witkoff’s son Zach announced the first of the deals at a conference in Dubai. One of Sheikh Tahnoon’s investment firms would deposit $2 billion into World Liberty Financial, a cryptocurrency start-up founded by the Witkoffs and Trumps.

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Two weeks later, the White House agreed to allow the U.A.E. access to hundreds of thousands of the world’s most advanced and scarce computer chips, a crucial tool in the high-stakes race to dominate artificial intelligence. Many of the chips would go to G42, a sprawling technology firm controlled by Sheikh Tahnoon, despite national security concerns that the chips could be shared with China.

EU Watch: Germany Backs Further Use of Frozen Russian Assets for Ukraine (Bloomberg)

Climate News: Environmentalists Urge Brazil's Petrobras to Speed Up Shift to Renewables (Bloomberg)
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Environmental groups are pressuring Brazil’s state-run oil giant, Petrobras, to scale back drilling and invest more in renewables, warning that its oil-heavy plans threaten the country’s climate commitments.

The debate is intensifying as Brazil, set to host COP30 in November, faces global scrutiny over how it will balance oil expansion with its pledge to reach net zero by 2050.

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Passenger Hazard: Tesla Faces US Auto Safety Investigation Over Door Handles (Bloomberg)

US auto safety regulators are investigating possible defects in Tesla vehicle doors after reports that exterior handles failed, trapping children inside. While the probe specifically focuses on an estimated 174,290 Model Y SUVs, regulators said the investigation could widen.

Campus Politics: Charlie Kirk’s Killing Stirs Up New Funding Threats for Colleges (Bloomberg)

Universities across the US are facing funding threats from Republican lawmakers over their responses to staff and faculty members’ comments about the slain conservative activist Charlie Kirk.

Today in Higher Ed: What Trump’s Foreign Student Crackdown Means for US Universities (Bloomberg)

US campuses are seeing sharp declines in international enrollment as Trump’s new visa rules and scrutiny take hold, straining university finances and threatening the pipeline of skilled workers for tech and other industries — raising doubts about America’s hold as the top destination for global talent.

Daily Read Podcast: Stream today’s AI-generated companion to this newsletter on Spotify or Apple Podcasts. 

Another Podcast Recommendation: How Young People Are Learning Skills That Make Them Irreplaceable (Bloomberg Philanthropies - Follow the Data Podcast)

How can work experience in the cultural sector help young people succeed amid a professional world increasingly shaped by AI?

On the latest episode of Follow the Data, our Arts Program lead Kate D. Levin shares how the Bloomberg Arts Internship helps students gain valuable critical thinking, emotional intelligence, and leadership skills to prepare them for a wide range of careers.

In Memoriam: Robert Redford, Film's Quintessential Leading Man, Dies at 89 (Bloomberg)

Robert Redford, the quintessentially handsome leading man who starred in acclaimed movies, won an Academy Award as a director and was hailed as the “godfather of indie films” for founding the Sundance Film Festival, has died. He was 89.

Mike Bloomberg shared that “we lost a legendary actor and passionate voice for the planet,” calling Robert “a great champion in the fight against climate change” and adding, “I was honored to call him an ally and a friend.”

Here’s a photo of Mike and Robert at the COP21 Climate Conference in Paris, shared in Mike’s post on Instagram:

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Best of Late Night

On the recently announced construction plans of the White House ballroom:

“In a new interview, President Trump said that the new White House ballroom will be larger than he originally described and will have a capacity of up to 900 people. And if I know Trump, that number will keep going up every time someone asks about it. By the time it’s built, there’ll be more people inside the ballroom than outside of it.”
– Seth Meyers

“By the time he’s out of office, the White House will have slot machines and a water slide.”
– Jimmy Kimmel

"So, when I’m stuck on the F train in between stations and the A/C is off and people are fainting, I can turn to my fellow passengers and say, ‘Don’t worry — they used the money on a new ballroom at the White House. That’s where Eric Trump is going to have his first communion.’” 
– Seth Meyers

And from South Park: In a recent episode, we see the characters turn to ChatGPT to guide them through couples therapy and positive affirmations, grandiose business plans, misguided career reinvention in the tech world, and delusional decision-making fueled by constant AI validation. Click the photo below to watch through Paramount Plus.