As noted by CNN
Over the past week, the world of artificial intelligence has undergone something close to a turning point: events moved so quickly that every day felt like a new stage of technological transformation.
The stock market over three days reacted with investors’ fears: uncertainty about AI development fluctuated between pessimism and tempered optimism, notably due to Nvidia’s cautious forecast and a viral blog post that painted a scenario where office work could disappear.
Anthropic unveiled new tools that could potentially change the way people work. At the same time, the company found itself in a nuanced battle with the Pentagon, as red lines were discussed, while safety rules were being relaxed in the fast-growing AI market.
That week Block announced cutting almost a quarter of its staff – about 4,000 people – due to AI’s impact. The company’s CEO predicted this trend could recur at other firms. Such events signal how artificial intelligence is reshaping the employment landscape on a global scale.
So, what was this week like? Here are the main market and industry events.
On Monday, the Dow Jones fell by more than 800 points, partly due to a Citrini Research post on Substack that explored hypothetical scenarios of AI’s impact on specific sectors of the economy, including the possibility that AI agents could make office work obsolete.
The post itself, published the previous week, wasn’t a forecast – it was a piece of fiction.
Nevertheless, shares of companies like DoorDash and American Express fell on Monday. On Thursday, tech stocks again declined after Nvidia’s report: the company’s quarterly earnings nearly doubled, but the prospects remained murky, tilting doubts about the so-called “AI bubble” – that large investments in AI infrastructure may not yield the expected returns.
The rapid week-long decline showed just how anxious investors are about AI – even in the face of good news or unrealized apocalyptic scenarios.
Earlier in the month, Anthropic heightened concerns by announcing an update to Claude Cowork, sparking worries about the possible replacement of dozens of software tools.
On Tuesday, Anthropic announced another Claude update aimed at increasing productivity in specific tasks such as design, HR, and asset management, and it now integrates with Microsoft Excel and PowerPoint applications.
Anthropic asserts that its tools do not replace existing solutions and jobs, noting that Claude Cowork is meant to be an addition. Yet the speed of updates is causing concern on Wall Street.
Joe Amodei, the chief executive of Anthropic, recently met with the Pentagon in a tense race for AI safety.
Anthropic has drawn two red lines for its AI: Claude will not be used in autonomous weapons, and it will not be used for mass surveillance of U.S. citizens.
Defense Secretary Pete Hegseth stated that the Pentagon intends to use the Defense Production Act to access Anthropic’s technology regardless of the company’s decision. He met with Amodei and set a formal deadline for agreement, hinting at potential contract terminations and adding Anthropic to the supply chain risk list.
On Friday, Donald Trump unleashed a new wave: on Truth Social he urged federal agencies to “immediately” stop using Anthropic’s technologies and estimated a six-month transition period for agencies using Anthropic’s products.
“Anthropic had better pull together and be useful during this period of gradual disengagement, or I will use the full force of the presidency to compel them to comply, with serious civil and criminal consequences.”
In response, Anthropic rejected that the Pentagon’s proposal changes their position.
“Threats do not change our position: we cannot in good conscience agree to their request.”
On Wednesday, Anthropic tightened its approach to bypassing safety policies to better adapt to the dynamic market where competitors may not follow the same standards.
Economists and investors have long anticipated that AI deployment could lead to significant cuts. On Thursday, Block, the parent company of Square, Cash App, and Afterpay, announced a reduction of about 40% of the workforce – over 4,000 employees – reducing total headcount to below 6,000. Co-founder Jack Dorsey directly stated that “most companies will come to the same conclusion.” He also said that “most companies are late,” expecting that other market players will follow a similar path.
These events raised concerns about the potential mass disappearance of jobs due to automation. Although many experts remain skeptical that such a scenario will occur everywhere, expectations for changes in employment are closer to reality than ever before.
The materials also mention journalists and analysts from various publications who highlighted the week’s key events and their impact on the future of technology and the economy.
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