Delta launches AI assistant and free YouTube on flights
Delta Air Lines introduced an AI-powered assistant and expanded in-flight services during CES 2025. The Delta Concierge, built into the airline’s mobile app, will provide proactive travel updates like passport expiration alerts and visa requirements. Passengers can interact with the assistant using voice or text for added convenience.
SkyMiles members will soon enjoy free access to YouTube Premium and YouTube Music during flights. The new offering enhances Delta’s focus on passenger entertainment while adding exclusive perks for frequent flyers.
A next-generation in-flight entertainment system will begin rolling out in 2026, featuring 4K HDR QLED displays, Bluetooth connectivity, and 96 terabytes of storage for movies, TV shows, and music. Delta describes it as the first cloud-based system of its kind.
The company also announced a collaboration with Airbus on the fello’fly project, testing formation flying to conserve fuel. Regulatory hurdles could delay widespread adoption, but the energy-saving potential remains promising.
US tech leaders oppose proposed export limits
A prominent technology trade group has urged the Biden administration to reconsider a proposed rule that would restrict global access to US-made AI chips, warning that the measure could undermine America’s leadership in the AI sector. The Information Technology Industry Council (ITI), representing major companies like Amazon, Microsoft, and Meta, expressed concerns that the restrictions could unfairly limit US companies’ ability to compete globally while allowing foreign rivals to dominate the market.
The proposed rule, expected to be released as soon as Friday, is part of the Commerce Department’s broader strategy to regulate AI chip exports and prevent misuse, particularly by adversaries like China. The restrictions aim to curb the potential for AI to enhance China’s military capabilities. However, in a letter to Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticised the administration’s urgency in finalising the rule, warning of ‘significant adverse consequences’ if implemented hastily. Oxman called for a more measured approach, such as issuing a proposed rule for public feedback rather than enacting an immediate policy.
Industry leaders have been vocal in their opposition, describing the draft rule as overly broad and damaging. The Semiconductor Industry Association raised similar concerns earlier this week, and Oracle’s Executive Vice President Ken Glueck slammed the measure as one of the most disruptive ever proposed for the US tech sector. Glueck argued the rule would impose sweeping regulations on the global commercial cloud industry, stifling innovation and growth.
While the administration has yet to comment on the matter, the growing pushback highlights the tension between safeguarding national security and maintaining US dominance in the rapidly evolving field of AI.
Wall Street rallies as AI optimism boosts chip stocks and tariff concerns ease
US stock markets climbed to one-week highs on Monday, driven by gains in semiconductor stocks and optimism over AI investments. Reports suggesting that Donald Trump’s incoming administration may adopt a more selective approach to tariffs, rather than broad measures, also helped boost investor confidence. The Dow Jones Industrial Average rose 0.41%, the S&P 500 gained 1.02%, and the Nasdaq Composite surged 1.53%, with automakers and tech stocks leading the rally.
Semiconductor shares saw strong gains after Microsoft announced an $80 billion investment in AI-enabled data centres, while Foxconn posted better-than-expected quarterly revenue. Nvidia climbed 3.5%, AMD gained 2.8%, and Micron Technology surged 9.6%, pushing the Philadelphia Semiconductor Index to a two-month high. Meanwhile, the Russell 2000 index, which tracks small-cap companies, added 0.7% as investors weighed economic data and Federal Reserve policy signals.
Investors are closely watching monetary policy developments, with the Federal Reserve expected to provide further guidance on interest rate cuts later in the week. While Trump’s proposals could support corporate earnings and economic growth, concerns remain over potential inflationary pressures. US markets will be closed on January 9 for a national day of mourning in honour of former President Jimmy Carter.
Online sales rise as AI chatbots help shoppers during holidays
AI-powered chatbots played a key role in boosting online sales during the 2024 holiday season, with United States e-commerce revenue rising nearly 4% year-on-year to $282 billion, according to Salesforce. Consumers increasingly relied on AI-based customer service tools for purchases and returns, with chatbot usage growing by 42% compared to 2023. Retailers also leveraged targeted promotions, product recommendations, and loyalty programmes to attract bargain hunters.
Despite the sales growth, a sharp increase in product returns emerged as a significant challenge for retailers. The return rate climbed to 28%, up from 20% in the previous year, potentially affecting profit margins. Caila Schwartz, director of Consumer Insights at Salesforce, noted that AI-driven tools would be crucial in 2025 to help retailers reduce losses from returns and retain customers. Mobile shopping remained dominant, with 79% of all orders placed via smartphones, peaking on Christmas Day as last-minute buyers made their final purchases.
Social media platforms such as TikTok Shop and Instagram also played a growing role in holiday sales, driving 14% of traffic to e-commerce sites. AI-driven sales reached $229 billion globally, an increase from $199 billion in 2023. As retailers continue to invest in digital shopping tools, the balance between AI-driven efficiency and managing high return rates will be critical for sustaining profitability in the coming years.
Nvidia leads tech companies in record-breaking market achievements in 2024 as AI fuels growth
Nvidia has emerged as the standout performer in the global market capitalisation race for 2024, driven by a surge in demand for its AI-centric chips. The company’s market value soared by over $2 trillion in just one year, reaching $3.28 trillion at the year’s close.
Other tech giants also saw significant gains, with Microsoft securing third place at $3.1 trillion, Alphabet Inc., and Amazon, each valued at around $2.3 trillion. These companies’ successes fueled a broader market rally, pushing the S&P 500 index up by 23.3% and the Nasdaq by 28.6% in 2024. The strong performance underscores the continued dominance of technology firms in shaping global financial markets.
Despite potential headwinds such as US-China trade tensions and uncertainties around US interest rate policies, analysts are optimistic about the sector’s trajectory in 2025. Daniel Ives of Wedbush projects a 25% gain in tech stocks, citing robust AI initiatives, reduced regulatory pressures, and stable foundations for Big Tech.
‘The AI Revolution will remain a key driver, with over $2 trillion in incremental investments expected over the next three years,’ Ives stated, signalling a bright future for the industry.
Goodman Group surges as AI boom fuels data centre demand
Goodman Group has emerged as a standout performer in Australia’s real estate sector this year, with its stock soaring 45.8%, marking its strongest run since 2006. The surge is driven by a boom in AI, which has sparked frenzied demand for data centres. Global tech giants like Amazon, Microsoft, and Meta have poured billions into expanding their data centre capacity, fueling growth for developers like Goodman.
At the end of September, 42% of Goodman’s A$12.8 billion ($7.96 billion) development portfolio was dedicated to data centres, a jump from 37% last year. Analysts like John Lockton of Sandstone Insights see this focus as a key strength, noting the company’s access to land with power supply, a critical factor for future data-centre projects.
Despite the optimism, some caution remains. Analysts warn that soaring valuations in the data-centre sector could cool investor enthusiasm. Goodman’s high stock prices and concerns over risks like obsolescence and increased competition raise questions about long-term returns. Nonetheless, with robust demand for AI infrastructure, Goodman’s pipeline and strategic positioning keep it well-poised for continued growth.
AI sales tools spark rapid growth but face long-term questions
AI startups specialising in sales development representatives (SDRs) are experiencing rapid growth as businesses embrace new technologies to streamline outreach. These startups, leveraging large language models (LLMs) and voice technology, automate tasks like crafting personalised emails and placing calls to potential customers. This sector has seen an unprecedented surge, with multiple companies achieving notable success in a short span, according to Shardul Shah of Index Ventures. However, investors remain cautious about whether this trend will yield lasting results or fade once the novelty wears off.
The appeal of AI SDRs is particularly strong among small and medium-sized businesses, which find it easier to experiment with these tools. Arjun Pillai, founder of Docket, attributes the popularity to declining reply rates for traditional cold emails, prompting businesses to explore AI-driven solutions. Startups like Regie.ai, AiSDR, and 11x.ai, as well as incumbents like ZoomInfo, are vying for market share, boasting impressive revenue growth. Yet, as Tomasz Tunguz of Theory Ventures noted, some businesses report that while AI SDRs generate substantial leads, they don’t necessarily translate into higher sales, highlighting a gap in effectively integrating AI into sales strategies.
Despite the enthusiasm, the rise of AI SDRs faces significant challenges. Industry leaders such as Salesforce and HubSpot, which control vast customer data, could introduce similar AI features, potentially outpacing smaller startups. Investors also point to cautionary tales like Jasper, a copywriting AI startup that stumbled after the launch of ChatGPT, emphasising the uncertainty surrounding the longevity of AI adoption in sales. For now, the potential of AI SDRs to revolutionise sales processes is undeniable, but their ability to sustain growth and deliver tangible results remains to be seen.
OpenAI services suffer second outage in December
OpenAI’s ChatGPT, Sora, and developer API experienced a significant outage on Thursday, disrupting services for over four hours. The issue began around 11 a.m. PT, with partial recovery reported by 2:05 p.m. PT. By 3:16 p.m. PT, OpenAI stated that Sora was operational, though ChatGPT users might still encounter issues accessing their chat history.
According to OpenAI’s status page, the outage was caused by one of their upstream providers, but the company did not provide further details. This marks the second major outage for OpenAI’s services in December. Two weeks ago, a similar incident attributed to a telemetry service malfunction resulted in a six-hour disruption, a notably longer downtime than usual.
Interestingly, popular platforms utilising OpenAI’s API, such as Perplexity and Siri’s Apple Intelligence integration, appeared unaffected during the outage, as confirmed by their status pages and independent testing. OpenAI is actively working to ensure full restoration of its services while addressing the root causes behind these recurring disruptions.