Artificial Intelligence

A JLL survey reveals a significant acceleration in AI adoption within the commercial real estate (CRE) sector. While initial focus was on cost reduction, CRE firms now view AI as crucial for revenue generation and competitive advantage. Over 88% of investors and 90% of occupiers have initiated AI pilot programs, but only 5% have achieved all objectives. Companies are shifting from simple automation to leveraging AI for complex challenges, like enhancing investment risk models. This requires significant organizational changes and investment in strategic advisory services and cybersecurity infrastructure.

Razer CEO Min-Liang Tan believes AI will revolutionize gaming, impacting players, developers, and the industry’s economic landscape. Razer is developing AI tools like Game Co-AI for personalized player guidance and an AI QA Companion for automated bug detection, potentially saving time and resources in development. While some are skeptical about AI’s creative capabilities in game development, Tan envisions AI empowering smaller teams to create compelling games by automating tedious tasks and even spawning new industries. He emphasizes AI’s role in training esports professionals and foresees major hit games built with AI.

AI is transforming workplace communication, presenting enterprises with governance challenges. LeapXpert’s platform addresses this by consolidating external client communications from platforms like WhatsApp and Teams into a governed environment. Their AI engine, Maxen, analyzes messages for sentiment, compliance, and intent while maintaining auditability. This provides stakeholders with transparent records and flagged anomalies, improving efficiency and risk management. A case study showed a 65% reduction in manual review time. LeapXpert emphasizes the need for transparency and control to leverage AI’s benefits without sacrificing data security.

The markets experienced volatility due to geopolitical events, economic data, and Big Tech earnings. Trump and Xi agreed on rare earths, trade, and fentanyl. The Fed cut interest rates by 25 basis points but tempered expectations for future cuts. Alphabet, Meta, and Microsoft beat earnings estimates, signaling increased capital expenditure driven by AI demand, alleviating fears of a dot-com bubble. Trump’s rare earth deals aim to challenge China’s dominance but face significant hurdles.

Amazon shares surged after a strong Q3 earnings report, beating expectations with $1.95 EPS and $180.17B revenue. Amazon Web Services (AWS) growth accelerated to 20.2%, addressing prior concerns, driven by AI demand. Amazon is investing heavily in AI infrastructure, including Project Rainier, and raised its capital expenditure forecast. Q4 sales are projected at $206B-$213B. While pursuing AI opportunities, Amazon is also implementing cost optimization, including layoffs, to enhance efficiency and adapting to business evolution.

Nvidia’s AI dominance highlights strategic alliances with Nokia and Eli Lilly, alongside domestic Blackwell GPU production in Arizona. The Fed is expected to cut rates. OpenAI completed its transition into a nonprofit and affirmed Microsoft’s stake. The government shutdown continues, causing legal challenges and impacting federal employees. Boeing faces a slight dip due to a $4.9B charge on the 777X delays, despite improved deliveries.

Federal Reserve Chair Jerome Powell addressed AI bubble concerns, differentiating it from the dotcom era by highlighting tangible earnings and revenue streams in many AI companies. He cited investments in infrastructure like data centers and chip tech as key economic drivers. While Nvidia’s profitability underscores hardware demand, some AI startups like OpenAI and Anthropic are burning cash despite high valuations. The market’s long-term viability relies on translating innovation into sustainable profits, a key area of focus for the Fed in assessing AI’s impact on economic stability.

ServiceNow CEO Bill McDermott addresses concerns about AI potentially displacing enterprise software. He emphasizes ServiceNow’s integration with major AI hyperscalers, viewing it as a collaborative ecosystem rather than a threat. McDermott argues that AI models won’t replicate ServiceNow’s comprehensive solutions for business processes, especially in complex environments. He highlights the limitations of siloed AI deployments and stresses the importance of a cross-functional approach. Additionally, ServiceNow announced a five-for-one stock split to attract retail investors, following strong earnings that exceeded expectations.

Alphabet (GOOG) plans a significant increase in capital expenditure in 2026, driven by soaring AI demand and a large customer backlog. This follows a strong Q3, exceeding $100 billion in revenue. 2025 capital expenditure is projected at $91-$93 billion, up from previous forecasts, to expand data centers and AI infrastructure. Google Cloud’s backlog grew 46% quarter-over-quarter. The company is also using AI to enhance its search business, with AI Mode gaining considerable traction among users. Meta is similarly increasing its capital expenditure, highlighting industry-wide AI investment.

Meta CEO Mark Zuckerberg is doubling down on AI, allocating $14.3 billion to Scale AI and restructuring Superintelligence Labs. This significant capital expenditure fuels Meta’s AI capabilities and data center expansion, partnering with Oracle, Google, and CoreWeave. While Meta projects long-term returns, analysts express concerns about escalating AI spending and a potential valuation bubble. Despite increased capital expenditure guidance, market reaction was mixed, with some uncertainty about profitability and returns. Meta’s revenue growth, driven by AI, supports its confident investment strategy.