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Starbucks Bets on Robots To Brew a Turnaround in Customers

Slashdot.org - Mon, 02/02/2026 - 09:43
Starbucks has been pouring hundreds of millions of dollars into AI and automation -- testing robots that take drive-through orders, virtual assistants that help baristas recall recipes and manage schedules, and scanning tools that count inventory -- as the 55-year-old coffee chain tries to reverse several years of struggling sales. The company last week reported its first same-store sales increase in two years in the U.S., where it earns roughly 70% of its revenue. Shares still slid 5% on concerns that heavy spending, including $500 million to boost staffing, had hurt profits. CEO Brian Niccol, who joined in 2024 after engineering Chipotle's turnaround, told the BBC he is confident consistent growth will address that; the company has pledged to find $2 billion in cost savings over three years.

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China's Decades-Old 'Genius Class' Pipeline Is Quietly Fueling Its AI Challenge To the US

Slashdot.org - Mon, 02/02/2026 - 09:00
China's decades-old network of elite high-school "genius classes" -- ultra-competitive talent streams that pull an estimated 100,000 gifted teenagers out of regular schooling every year and run them through college-level science curricula -- has produced the core technical talent now building the country's leading AI and technology companies, the Financial Times reported Saturday. Graduates of these programs include the founder of ByteDance, the leaders of e-commerce giants Taobao and PDD, the billionaire behind super-app Meituan, the brothers who started Nvidia rival Cambricon, and the core engineers behind large language models at DeepSeek and Alibaba's Qwen. DeepSeek's research team of more than 100 was almost entirely composed of genius-class alumni when the startup released its R1 reasoning model last year at a fraction of the cost of its international rivals. The system traces to the mid-1980s, when China first sent students to the International Mathematical Olympiad and a handful of top high schools began creating dedicated competition-track classes. China now graduates around five million STEM majors annually -- compared to roughly half a million in the United States -- and in 2025, 22 of the 23 students it sent to the International Science Olympiads returned with gold medals. The computer science track has overtaken maths and physics as the most popular competition subject, a shift that accelerated after Beijing designated AI development a "key national growth strategy" in 2017.

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Is AI Really Taking Jobs? Or Are Employers Just 'AI-Washing' Normal Layoffs?

Slashdot.org - Mon, 02/02/2026 - 07:34
The New York Times lists other reasons a company lays off people. ("It didn't meet financial targets. It overhired. Tariffs, or the loss of a big client, rocked it...") "But lately, many companies are highlighting a new factor: artificial intelligence. Executives, saying they anticipate huge changes from the technology, are making cuts now." A.I. was cited in the announcements of more than 50,000 layoffs in 2025, according to Challenger, Gray & Christmas, a research firm... Investors may applaud such pre-emptive moves. But some skeptics (including media outlets) suggest that corporations are disingenuously blaming A.I. for layoffs, or "A.I.-washing." As the market research firm Forrester put it in a January report: "Many companies announcing A.I.-related layoffs do not have mature, vetted A.I. applications ready to fill those roles, highlighting a trend of 'A.I.-washing' — attributing financially motivated cuts to future A.I. implementation...." "Companies are saying that 'we're anticipating that we're going to introduce A.I. that will take over these jobs.' But it hasn't happened yet. So that's one reason to be skeptical," said Peter Cappelli, a professor at the Wharton School... Of course, A.I. may well end up transforming the job market, in tech and beyond. But a recent study... [by a senior research fellow at the Brookings Institution who studies A.I. and work] found that AI has not yet meaningfully shifted the overall market. Tech firms have cut more than 700,000 employees globally since 2022, according to Layoffs.fyi, which tracks industry job losses. But much of that was a correction for overhiring during the pandemic. As unpopular as A.I. job cuts may be to the public, they may be less controversial than other reasons — like bad company planning. Amazon CEO Jassy has even said the reason for most of their layoffs was reducing bureaucracy, the article points out, although "Most analysts, however, believe Amazon is cutting jobs to clear money for A.I. investments, such as data centers."

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