LT Weekly: Jun 20, 2025

The Reuters Institute Digital News Report 2025 caught our eye this week, and with nearly 100k survey respondents across 47 countries, it offers a very comprehensive look at how people around the world are changing how they consume news today.

We read all 171 pages (so you don’t have to!) and here are 10 key takeaways that stood out to us, especially for anyone tracking media, tech, and audience trends (but link to the full report = HERE)

Our Highlighted Findings… A Picture Says A 1000 Words

• In the US, social/video platforms overtook TV & websites as the top news source for the first time
  • 54% of respondents in the US are accessing news via social media & video networks (+6pps), surpassing both TV news (50%) & news websites/apps (48%) for the first time
    • Social media, video platforms (e.g. YouTube, TikTok) & aggregators are now dominant sources of news, especially among younger audiences
  • This trend is also happening outside the US, but not as fast
  • The proportion that use TV as a source of news continues to decline

• Social media is now the MAIN news source for 35% of Brazilians and 34% of Americans

• Influencers and podcasters are reshaping public discourse, but are also seen as major sources of misinformation
  • US: 22% said they came across news or commentary from popular podcaster Joe Rogan in the week after the inauguration, including a disproportionate number of young men
  • France: News creator Hugo Travers (HugoDécrypte) reaches 22% of under-35s w/ content distributed mainly via YouTube & TikTok
• News access is more fragmented than ever: 6 platforms now reach 10%+ of users weekly (up from just 2 a decade ago – Facebook and YouTube)
  • 26% use Facebook each week for news (flat y/y)
  • 21% use YouTube (down y/y)
  • 16% use Instagram (up y/y)
  • 15% use WhatsApp (down y/y)
  • 11% use X (flat y/y)
  • 10% use TikTok (up strongly y/y)

• TikTok is the fastest-growing news platform globally, especially in Asia and Africa
  • Globally, 33% use TikTok for any purpose and ~50% of those use the app for news (17%)
    • The fastest growth is in Thailand where almost 50% of the sample now uses TikTok for news, up +10pp y/y, and increases are especially strong w/ younger groups
    • TikTok use is much lower in the US (12%) and Europe overall (11%), though again, stronger w/ younger demos

• X (formerly Twitter) usage for news was flat globally but saw significant growth in the US (+8pp)
  • X has not lost reach for news on aggregate across the 12 countries despite a widespread X-odus by liberals and journalists, including some prominent news organizations

• Threads, Bluesky, and Mastodon have made little impact globally, w/ reach of 2% or less for news
• Weekly YouTube use, for any purpose, is up +2pp y/y, in aggregate, to 63%, w/ news use stable at 30%
• Written news is still preferred, but more people are turning to video for updates
  • Globally, 55% of people on avg still prefer text but 31% say they prefer to watch the news online & more than 1 in 10 (15%) say they prefer to listen to news BUT there is quite a difference globally
    • More people say they prefer to watch rather than read or listen to the news in India, Mexico, & the Philippines
    • The vast majority still prefer to read online news in Norway, Germany, and the UK
    • Younger groups, especially those aged 18–24, are much more likely than older ones to prefer watching or listening to the news
  • Across all markets, the proportion consuming social video has grown from 52% in 2020 to 65% in 2025 and any video from 67% to 75%

• Concerns regarding misinformation remain high – 58% of people are concerned about distinguishing real from fake news online
  • Concern is highest in Africa (73%) and the US (73%), with lowest levels in Western Europe (46%)
  • As mentioned, online influencers and personalities are seen as the biggest threat worldwide (47%), along with national politicians (47%)
    • Trusted news brands and official sources are the most cited for fact-checking
    • Younger users are more likely to use social media comments & AI chatbots to verify info

• Facebook and TikTok are considered top sources of misinformation across all markets

• ChatGPT is being used for news by only 4% of those polled, and all other Gen AI platforms are used to a lesser degree for that use case
  • We’d note that a lot of the Gen AI platforms are not geared to pull up current news
  • Audiences in most countries remain skeptical about the use of AI in the news and are more comfortable with use cases where humans remain in the loop
  • Interest in AI personalization is highest for summarization, translation, and format adaptation (e.g. text-to-audio)

-> The report is based on a wide global survey conducted from mid Jan-end of Feb 2025 with a sample size of 97k

In March, Magna lowered its 2025 US ad growth projection from +5% y/y to +4.3% y/y (incl cyclical events) but this week tweaked that back up to +4.6% y/y growth. That was not all that surprising given that during the Q1 reporting season we, almost across the board, heard from advertising-based companies that they have yet to see any meaningful pullbacks in advertising as of that timeframe (but were cognizant that the environment could change given the fluid tariff and macro backdrop).

With that said, it is still below their estimate at the start of 2025 which, as mentioned, was at +5%. Magna this week also provided a new global forecast of +4.9% y/y for 2025 (incl cyclical events) which is also down from the +6.1% estimate at the start of the year. So bottom line, global and US ad revenue growth are both below the projections entering the year but the US is not as pressured as expected in March.

What about 2026? The global ad market is anticipated to re-accelerate to +6.3% y/y growth as the economy stabilizes and major events return, incl. Winter Olympics (Italy), FIFA World Cup (US), and US Midterms.

See the drill down on changes to Magna’s global and US ad growth forecasts for 2025 on both a cyclical and non-cyclical basis.

Relevant links:

Magna June 2025 Global Ad Forecast

Magna Dec 2024 Global Ad Forecast

Magna March 2025 US Ad Forecast

• Magna’s 2025 US ad growth estimate (incl cyclical events) was raised from +4.3% (as of March) to +4.6%, but it is still below the +5% growth forecast as of the start of the year
• Ex cyclical events, 2025 US ad growth projections incr’d from +6.7% y/y (March forecast) to +6.9%, reaching $397bn – the upgrade is due to strong 1Q25 performance (+9.1% excl. cyclical) and while growth will slow over the next 3 qtrs, it is expected to remain stable; All the below percentages are ex cyclical…
  • Social media ad spend estimates were key upside drivers to the improved view from March to now: Digital ad spend coming from social media was revised up from +10.7% to +12.4%, which more than offset a slight negative revision to short form video ad revs (cut from +8.6% to 7.8%)
  • Total digital ad growth was strong in Q1 (+13% y/y) and expect +10% y/y in 2025 to $297bn
    • Search: +8% y/y in 2025
    • Retail Media: +14%
    • Social Media: +12%
    • Short-Form Video: +8%
  • For traditional media, 2025 estimates were slightly revised down from March, w/ local media ad spend projections cut the most (from -3.7% decline to -5.2%): The growth in CTV streaming was also revised down (from +14.3% to +12.6%) but lower losses in linear networks (-5.9% to -4.9%) helped to offset so the overall National TV ad revs declines were revised up from -1.1% to -0.8%
  • Traditional media is projected to decline -1.2% in 2025
    • National TV: -0.8% y/y (linear to fall -5%, but streaming up +12.5%)
    • Local TV: -5.2%
    • OOH: +2.2%
    • Audio: -2% y/y
    • Publishing: -1.4%

• Magna cut total 2025 global ad revs projections from +6.1% (December 2024 projection) to +4.9% to reach $979bn (incl cyclical events); This compares to +10.3% y/y growth in 2024 (helped by US Elections, Euro, Copa America, Summer Olympics); Non-cyclical ad spend is expected to slow from +8.9% y/y in 2024 to +6.2% in 2025
  • But MAGNA still believes that most marketers will avoid repeating the over-drastic cuts seen during COVID and will maintain a balanced marketing and media mix to address consumer anxiety
  • The negative revision also reflects the International Monetary Fund (IMF) cutting its 2025 global economic growth forecast from +3.2% as of October 2024 to +2.8% in its April 2025 update
    • Export-based economies are particularly vulnerable to disruptions in international – Germany (0% expected growth) and Japan (+0.6%)
  • EMEA saw the biggest % cuts in ad spend from +7.9% (December 2024 projection) to +5.5%
    • Amer ad spend was cut by -0.4%
    • Latam and APAC were both cut by -1.3%
  • Expected global vertical performance in 2025 –
    • At risk: Technology, Pharmaceuticals, Retail, and Automotive
    • Resilient: CPG, Finance, Insurance, Telecoms, Healthcare, and Travel
  • Drill down on global auto advertising…Project a -2% y/y decline (-3% in the US) in 2025 and believe 2026 will be pressured by the loss of US federal EV subsidies & new European regulations on Chinese vehicle imports
  • MAGNA projects that premium long-form CTV streaming (Hulu, Netflix, Peacock, Prime, Joyn, RTL+, etc.) ad revenues now account for 15% of total long-form video ad revenue worldwide, totaling $23bn out of $155bn
    • In more advanced markets like the UK and the US, this figure is already between 20-25%

• 2025 global regional drill down –
  • Low single digit growth markets include Germany +3% & Japan +4% (higher exposure to disruption from trade)
    • Other major manufacturing mkts may also be negatively impacted by a decline in US exports, including Vietnam, Mexico, and South Korea
    • Trade hubs such as Singapore and Belgium may suffer from a reduction in the volume of global trade in the coming months
    • Oil producers may be indirectly affected by the slowdown in Chinese and overall global demand
  • The US ad mkt will grow +4.6% to $398bn (ex-cyclical +6.9%) as mentioned above – it remains the largest ad mkt in 2025, accounting for 41% of global ad spend, followed by China (17%), Japan, the UK, and Germany
    • Together, these five largest ad markets concentrate 73% of global ad spend
  • Mid to high single-digit growth markets include Canada / Australia/ France (+5%); Italy / Spain / UK (+6%); India (+8%)
  • Low double digit markets include Brazil (+12%)

• What about 2026? The global ad market is expected to re-accelerate as the economy stabilizes and major events return, incl. Winter Olympics (Italy), FIFA World Cup (US), and US Midterms
  • Global ad sales are projected to rise +6.3% (incl cyclical event) surpassing one trillion dollars for the first time
  • US ad market expected +7.8% y/y growth (+6.1% ex cyclical) to reach $429bn

It’s Cannes Lions week, and as expected, a wave of new advertising partnerships and platform updates were announced across the industry. Amazon was especially active, announcing integrations with both Disney and Roku that aim to broaden advertisers reach across its streaming inventory. Netflix expanded its programmatic capabilities with Yahoo’s DSP, while Omnicom revealed a series of partnerships, including with Disney, Amazon, PayPal, YouTube, Meta, and Walmart.

Over at the social media giants, after hinting at it for years, Meta finally took the plunge and announced that ads will be coming to WhatsApp for the first time. Meanwhile, Reddit introduced early-stage AI advertising features under its new Community Intelligence suite. And on the viewership front, YouTube Shorts hit 200bn daily views, while Tubi crossed 100mn monthly users.

More details are below.

A Whole Host Of Advertising Partnerships Unveiled At Cannes Lion This Week

• Amazon + Disney = Amazon Ads & Disney Advertising launch an integration between Disney’s Real-Time Ad Exchange (DRAX) and Amazon DSP (link)
  • Gives buyers direct access to ad-tier inventory across Disney+ (126mn subscribers), Hulu (54mn subs) and ESPN+ (24mn subs) through Amazon’s DSP, while allowing them to leverage insights from both Cos to reach relevant audiences more efficiently
    • For example, a pet food supplier can now target consumers that have an interest in buying pet food on Amazon and who also watch Disney
  • Availability and timing: New integration will be available to all US advertisers that use Amazon DSP beginning in Q3:25

• Amazon + Roku = Announced partnership creating “the largest authenticated CTV footprint” (link/link)
  • Amazon’s demand-side platform (DSP) will be used to place ads on top-viewed platforms like the Roku Channel and Prime Video along with other services available via Roku and Fire TV operating systems
    • The collaboration delivers logged-in reach to an est’d 80mn US CTV households, per ComScore data
  • Early tests have shown “significant” results: Advertisers using this new solution reached 40% more unique viewers w/ the same budget and reduced how often the same person saw an ad by ~30%, enabling advertisers to benefit from 3x more value from their ad spend
  • Availability and timing: New svs will be available to all US advertisers that use Amazon DSP by Q4:25

-> Roku closed up +8.4% on the day of the announcement

• Netflix + Yahoo = Netflix expands programmatic availability w/ Yahoo DSP (link)
  • Enables buyers to purchase Netflix advertising through Yahoo programmatically
    • Yahoo DSP will join The Trade Desk, Google Display and Video 360, and Microsoft as Netflix’s programmatic partners
  • Availability and timing: Will be available later this yr in all 12 of Netflix’s ad-supported countries

• Omnicom unveiled several deals, including w/ – (link)
  • Streaming, retail & data-driven partnerships –
    • Disney: Partnering to help brands capitalize on major live sports moments (i.e., NFL games) with increased personalization and relevance, using a custom algorithm built for Disney’s “Magic Words” tool
    • Amazon: Leveraging Amazon’s expanded Thursday Night Football (TNF) audience data to enable more informed, real-time campaign decisions during TNF broadcasts
    • PayPal: Connecting streaming TV ad inventory with PayPal’s cross-merchant purchase data, enabling clients to bid on live and pre-recorded streaming ads based on actual consumer buying behavior
  • Influencer & social partnerships –
    • YouTube: Previously only available as part of broader media buys, YouTube’s new partnership with OMC enables clients to directly target high-traffic livestreams and activate messaging across relevant influencers, powered by live signals integrated into Omnicom’s Influencer Discovery Agent
    • Meta: Through Facebook’s Live Partnership Ads program, clients can boost creator-led livestreams into paid ads and gain insight into influencer performance to inform future activations on Omnicom’s Influencer Discovery Agent
    • X: Tapping into X’s real-time trends data and using it for brand and creative execution on X, as well as for influencer discovery and activation
    • Walmart: Gain access to Walmart’s audiences, which will then be used to accelerate the discovery of influencers who have a proven ability to drive purchases for the retailer

Meta Annc’d Ads Are Coming To WhatsApp + New Advantage+ Features 

• WhatsApp annc’d that it would start showing ads inside its app for the first time (link)
  • Will appear within WhatsApp’s “Updates” tab, which allows users to share disappearing text, photo, voice notes, or video messages
    • The Updates tab is used by as many as 1.5bn people each day
    • That said, ads will not appear where personal chats are located
  • What will be used to determine what ads are seen?
    • Will use “limited” info like country or city, language, the Channels users are following, and how the user interacts w/ ads they see
    • For users that have chosen to add WhatsApp to Accounts Center, WhatsApp will use ad preferences and info from across the user’s Meta accounts
  • “Built these features in the most private way possible”
    • Personal messages, calls, and groups the user is in will not be used to determine the ads seen
    • Will “never” sell or share phone numbers to advertisers
    • Personal messages, calls, and statuses will remain end-to-end encrypted
  • WhatsApp also annc’d two other monetization features –
    • Channel subscriptions: Users can subscribe to channels to receive exclusive updates for a monthly fee
    • Promoted Channels: Enables business owners to pay to promote their channel’s visibility to new users
  • The features will start to appear for users “over the next several months”…with an exception (see below)

• WhatsApp ads will not in EU until 2026 (link): After Meta made the announcement on Monday (June 16^th), the Irish Data Protection Commission said on Thursday (June 19^th) that the Co will be delaying the launch in the EU until 2026
  • “That new product won’t be launching [in] the EU market until 2026. We have been informed by WhatsApp and we will be meeting with them to discuss any issues further,” said Commissioner Des Hogan
    • He added that the advertising model will be discussed with other data protection authorities “so that we can reflect back any concerns which we have as European regulators”
  • That said, a spokesperson for WhatsApp said that the ads are a global update, being rolled out gradually

• Also on Meta’s ad front…expanding Advantage+ with a new set of generative AI features for advertisers and agencies (link)
  • Consistent branding at scale, enabling advertisers and agencies to integrate logos, colors, fonts, and more to customize their creative
  • New video generation capabilities, enabling advertisers to transform images into dynamic videos with animations, text overlays, and music (still in the testing phase)
  • Video highlights, in which AI pulls out a few key phrases and scenes to better convey a product’s value proposition (still in testing phase)
  • New Business AI tools include voice capabilities, AI-generated prompts, and FAQ buttons for ads
  • New ad placements on Instagram Stories and Facebook Reels (US only)
  • Expanding the test audience for customer experiences such as Virtual Try-On, which showcases clothing on virtual models of different shapes and sizes
  • Creative Sticker call-to-action (CTA) buttons allow brands to create customized stickers of products, slogans, and graphics with call-to-action elements
  • Expect these new features to help drive performance for advertisers and agencies –
    • Sales campaigns using the existing version of Advantage+ already see +22% average lift in ROAS
    • Back-end AI innovations, such as Meta GEM (its generative ads recommendation model) are improving ad conversions by up to 5%

Reddit Rolls Out New AI Advertising Features

• Reddit intro’d Reddit Community Intelligence (link)
  • What is it? A collective knowledge engine that turns Reddit’s 22bn+ posts and comments into structured intelligence for smarter marketing decisions
  • Unveiled two early-stage products powered by Reddit Community Intelligence –
    • Reddit Insights (Alpha): A “scalable, AI-powered social listening tool”; Shares real-time insights with marketers to help them identify trends and launch campaigns
    • Conversation Summary Add-ons (Alpha): Allows brands to show “positive” user content under their ads
  • Early tests already showing success: Conversation Summary Add-Ons resulted in a +19% higher clickthrough rate than standard image ads
  • Reddit’s Community Intelligence will power more products to come

-> Reddit closed up +6.8% on the day it annc’d the ad tools and closed the week +18%

Ad-Supported Platform Viewership Updates From YouTube And Tubi

• YouTube Shorts now avg 200bn daily views (link)
  • ~186% increase in daily viewership vs yr ago: In March of 2024, YouTube reported that its Shorts offering was averaging 70bn daily views since its launch in 2021
  • Viewers are also watching 1bn+ hours of YouTube on their TVs daily
    • For more than half of the top 100 most-watched YouTube channels in the world, TV is their most-watched screen
    • YouTube also accounted for 12.5% of all TV viewership during in May, the largest share of overall viewership any streamer or channel, per Nielsen’s The Gauge report

-> YouTube CEO Neal Mohan also annc’d that Veo 3 will be coming to YouTube later this summer; Veo, Google DeepMind’s video generation model, allows users to create AI-generated backgrounds and video clips for Shorts; Previously, YouTube Shorts’ Dream Screen option ran on Veo, but the introduction of Veo 3 will improve the video quality of these backgrounds and give users the option of incorporating audio (link)

• Tubi exceeds 100mn monthly active users and surpasses 1bn hrs of total viewing time in May (link)
  • Tubi also reached an all-time high of 2.2% of total TV viewing minutes in May 2025, according to The Gauge, which tracks monthly TV and streaming usage in the US
  • More than 95% of viewing on Tubi is on–demand movies and TV shows, differentiating the platform vs other FAST platforms that skew towards live, linear channel viewing
    • Nearly 1 in 4 Tubi viewers are watching a Tubi Original
  • Over half of Tubi viewers are Gen Z or Millennials and 67% are cord cutters and cord nevers, according to the March MRI Cord Evolution Study, cited by Tubi

Netflix pioneered the age of streaming, but in recent years it’s slowly but surely been on a path to transform into a broader entertainment company, branching into advertising, live sports, gaming, and more.

That evolution was at the top of our mind this week with two major announcements from the Co on the distribution and live entertainment front. In France, Netflix announced a “first-of-its-kind” distribution deal with TF1 Group, giving French subscribers access to both live channels and on-demand content from the country’s biggest broadcaster, all within the Netflix platform. And on the experiential side, Netflix revealed Las Vegas as the third location for its immersive Netflix House concept, a permanent space where fans can step into the worlds of their favorite shows. The first two locations are set to open later this year in Philadelphia and Dallas.

Netflix’s ambitions are clearly moving beyond just streaming, aiming to become a fully integrated media company that uses its IP to connect with audiences across a variety of platforms and experiences. In many ways, it’s following a playbook similar to traditional media giants like Disney and NBCUniversal, who have built their bizs around theme parks, broadcast TV, and streaming, but Netflix is putting its own modern spin on that formula. See below for more color on the updates.

• Netflix takes a step into broadcasting this week w/ a “first-of-its-kind partnership”….announces distribution partnership w/ France’s TF1 Group (link/link)
  • BOTH live channels and on-demand content will be available to Netflix members in France as part of their existing subscription beginning Summer 2026
    • Includes all 5 of its linear channels, as well as 30k+ hours of TV shows available on demand
  • The carriage deal will enable French Netflix subscribers to watch major live sports matches, scripted dramas like Broceliandeand Erica, soap operas such as Demain nous appartient, and unscripted shows like The Voice
  • TF1 network holds ~24% of the French linear TV market, higher than the domestic US market share for NBC, CBS, ABC, or Fox
    • TF1 Group reaches 58mn monthly viewers through its broadcast channels and serves 35mn users on its TF1+ streaming service
    • Back in 2022, Netflix co-chief Ted Sarandos said the streaming platform had surpassed 10mn subscribers in France
    • TF1 does NOT expect the partnership to cannibalize TF1’s existing audience: Instead, per group CEO Rodolphe Belmer said the partnership is “highly positive for us”
  • Financial details were not disclosed, but for Netflix, this deal may also contribute towards a legal requirement to invest a portion of its French revenue into French-language content (link)
  • This is the first time Netflix has done such a deal, therefore the Co will first see how the partnership works before exploring further tie-ups with other broadcasters

-> Separately, but related, FOX annc’d its acquisition of Caliente TV, a leading sports broadcasting platform in Mexico. With the acquisition, FOX will develop a multi-platform business that will include the launch of a new Pay TV channel and an SVOD platform that will join Tubi, producing and distributing 3,000+ hours of original sports content. The deal also brings a broad portfolio of premium sports rights, including six Liga MX men’s clubs, ten Liga MX women’s clubs, UEFA Champions League, Premier League, CONCACAF Champions Cup, and more, expanding FOX’s presence across Latin America (link)

• Netflix is also making more moves in live entertainment/theme parks… the Co annc’d a third location for its Netflix Houses as it gets ready to open the first two later this year (link)
  • What is Netflix House? “Spanning more than 100k sq ft, Netflix House is a permanent, yr-round home for fans that brings some of our most popular shows and movies to life…through first-of-their-kind immersive story-driven experiences”
    • “Building on more than 40 previous live experiences for Bridgerton, Money Heist, Stranger Things, Squid Game, The Perfect Bite, and NETFLIX BITES, Netflix House is the next step, allowing fans of all ages to become the main characters in their favorite stories”
  • Annc’d Las Vegas as its third destination and it is set to open in 2027: Will be located in the heart of the Las Vegas Strip at BLVD Las Vegas
  • Also opening up the first two locations later this yr at King of Prussia mall outside Philadelphia and Galleria Dallas in Dallas
    • Each location’s attraction will slightly vary, with Philadelphia currently set to open attractions based on Wednesday and One Piece, whereas Dallas will feature attractions built around Stranger Things andSquid Game
    • Both locations will feature a store offering exclusive merchandise that will be refreshed regularly and NETFLIX BITES, a laid-back restaurant serving food and craft cocktails inspired by popular Netflix stories and characters

There were also several standouts this week that furthered the debate about AI and the future structure of the workforce. First, a new Gallup Poll shed some light on the status of AI being used by US employees in the workplace.  Namely, AI adoption has surged, with daily use doubling in the past year and nearly 1 in 5 employees now using AI a few times a week or more. Adoption is highest among white-collar workers, especially in tech, professional services, and finance, and among senior leaders, who are 2x as likely as individual contributors to use AI frequently. HOWEVER, only 16% of users strongly agree that their organization’s AI tools are useful, and most companies lack a clear strategy or policy for AI integration. Lastly, the vast majority of these employees are NOT worried about being replaced by AI.

But if they are listening to comments out of Amazon and taking note of a few other job cut announcements, perhaps they would be more worried. Fed Chair Jerome Powell also fielded a question on this subject at this week’s FOMC meeting.

See key updates on this theme below.

The New Gallup Poll On AI In The Workforce…(link)

• The percentage of US employees who say they have used AI in their role based on frequency –
  • A few times a year or more = nearly doubled, from 21% to 40%
  • A few times a week or more = nearly doubled, from 11% to 19%
  • Daily use = doubled in the past 12 months alone, from 4% to 8%.
• What types of jobs are seeing increased AI adoption? Primarily white-collar roles
  • 27% of white-collar employees report frequently using AI at work, an increase of +12ppts since 2024
  • 9% of production / front-line workers report frequently using AI at work, which is actually down from 11% in 2023
• The industries w/ the highest percentages of frequent AI users include –
  • Technology = 50%
  • Professional services = 34%
  • Finance = 32%

• How about based on seniority levels? Frequent AI use is also more common among leaders (defined as managers of managers) at 33%
  • They are 2x as likely as individual contributors (16%) to say they use AI a few times a week or more
• US employees overall are not worried about being replaced by AI
  • Only 15% of employees say it is very or somewhat likely that automation, robots or AI will eliminate their job w/in the next 5 years, unchanged from 2023 and 2024 measures
    • But employees view some industries as more at risk of AI eliminating jobs such as technology (21%), retail (21%), and finance (20%)

• More firms are integrating AI into workflows than are actually providing a clear plan or strategy for doing so
  • 44% of employees say their organization has begun integrating AI
  • 22% say their organization has communicated a clear plan or strategy for doing so
  • 30% of employees say their organization has either general guidelines or formal policies for using AI at work
• The benefits of using AI in the workplace are unclear at this point
  • For those that are using AI, only 16% strongly agree that the AI tools provided by their organization are useful for their work

Source

AI Related Job Cut Updates Of Note This Week

• Amazon CEO Andy Jass, in a letter to employee, touched on how the Co is leveraging and rolling out Gen AI across its business – at the end, he said…(link)
  • Expect fewer employees…“we will need fewer people doing some of the jobs that are being done today, and more people doing other types of job…in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company”
  • He urged employees to… “be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team’s brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier team”
  • There will be some left standing…“Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company”

• Microsoft reportedly is planning to cut thousands of jobs, particularly in sales, as it streamlines its workforce amid incr’d investments in AI: This press follows Microsoft’s previous round of job cuts in May, which affected about 6k employees (link)
  • The layoffs are expected to be annc’d early next month per the report

• Fed Chair Jerome Powell at this week’s FOMC mtg when asked about the impact of AI on the workforce… (link)
  • “This is something that has transformational potential and we are probably at the early stages. I think it is hard to know.  Some optimists think it will make people more productive, and others think that it will be disruptive. I don’t have a house view on that”
  • The question is about whether the technology will “augment” or “replace” labor, which is “really hard to know”
  • BUT “I wouldn’t overread a couple of data points, because AI should be creating jobs at the same time”

There were a few quick, but important, developments related to autonomous cars and robotaxis that made our top themes list this week. Namely…

Waymo Aims To Expand Into NYC & Also Expands Its CA Coverage By ~50%

• Waymo aims to expand into NYC (link/link): The Co annc’d plans this week to launch a fully autonomous robotaxi svs in NYC
  • It applied for a permit from NYC’s Dept of Transportation to test vehicles w/ safety drivers
    • If approved, this would be the first permit under the city’s new AV testing framework
  • Current state law mandates a human operator be present and ready to take control of AVs
    • Waymo is lobbying to change that
    • A bill was introduced in the NY State Legislature earlier this year that would permit Avs w/out safety drivers “provided that the automated driving system is engaged and the vehicle meets certain conditions”; The bill is currently under consideration by the state Senate’s transportation committee
    • Some lawmakers, like State Sen. John Liu, have expressed caution, suggesting NYC should wait for more results from other cities before proceeding w/ driverless testing
  • NYC has its challenges for AVs w/ dense and busy streets
    • AVs typically perform best in environments w/ clear signage, good weather, and predictable traffic behavior
  • Next steps –
    • While it waits for the permit, the Co will begin mapping Manhattan streets next month using manually driven vehicles

• Waymo also expanded California coverage by ~50% (link/link/link): It added 80+ sq miles across SF, Silicon Valley, & LA, bringing the total coverage in CA to ~250 sq miles
  • Service availability & limitations –
    • SF & LA are fully public
    • Silicon Valley is still in limited release
    • SF & Silicon Valley zones are not connected – no cross-zone rides
    • No svs to SFO or LAX; Coverage stops just short of airport zones
    • Palo Alto & Santa Monica airports are included, but are minor
    • Highway driving is available in SF for some users; Still in testing in LA

• Waymo current status & plans –
  • # of robotaxis it operates: 1,500
    • Aims to add 2,000 more by 2026.
  • Cities where commercially active: SF, LA, Phoenix, & Austin
  • Plans to launch by 2026: Atlanta, Miami, & Washington, DC
  • # rides: Provides over 250k paid rides weekly through its Waymo One service

Amazon’s Zoox Moves Toward Full Production

• Amazon’s Zoox opened a 220k sq ft factory in Hayward, CA – its first full-scale production site (link/link/link): This complements a smaller Fremont facility used for test fleet assembly and sensor configuration
  • Production scale plan: Currently producing 1 robotaxi/day; aims to scale to 10k/year (~3/hr)
    • No timeline given for reaching full capacity
  • Vehicle design dramatically contrasts Waymo and Tesla: It has “carriage-style” robotaxis w/ no steering wheel/pedals & seats 4 passengers facing each other (see picture below)
  • Current status & rollout plans:
    • Testing in: Foster City, SF, and Las Vegas
    • Early rider program active in: Las Vegas; SF to follow later in 2025
    • Paid public rides in: Las Vegas launch planned by end of 2025; SF launch planned for 2026; Austin & Miami are targeted for future expansion
    • Plan to operate 500–1,000 robotaxis in small-to-mid-sized cities
    • Riders will use an app to hail Zoox vehicles, similar to Uber and Lyft

Source

–> Tesla’s robotaxi launch in Austin is imminent (June 22) as well…

• Trump extends TikTok sale deadline for a third time (link/link)
  • TikTok now has until Sept 17^th to find an American buyer: The previous deadline was June 19^th  
    • While there is no clear legal basis for the extensions, so far there have been no legal challenges to fight them (link)
  • TikTok reacts: “We are grateful for President Trump’s leadership and support in ensuring that TikTok continues to be available for more than 170 million American users and 7.5mn US businesses that rely on the platform as we continue to work with Vice President Vance’s Office”
  • Extension doesn’t come as a surprise: Back in May, when asked about another extension, Trump said, “Probably, yeah. Probably have to get China approval but I think we’ll get it. I think President Xi will ultimately approve it”

• JD.com announces “JD Hotel PLUS Membership Program” (link/link)
  • In “An Open Letter to All Hoteliers JD.com said –
    • In recent years, the tourism market has become increasingly prosperous, and demand has been more diversified
    • com wants to work w/ the hotel industry to offer supply chain svs and optimize costs in order to jointly grasp growth oppties as the hotel industry develops
    • Hotel merchants who join the program will get up to 3 yrs of zero commission on the platform
    • com aims to reduce the operational costs of hotels and restaurants by 2/3 through these svs
    • Hotels can leverage JD.com’s 800mn+ high-spending users nationwide and the Cos alliances with 30k+ large and 8mn+ small and medium-sized suppliers
  • JD.com has some experience in the sector: The Co launched flight booking services in 2011, established a travel channel in 2014, and has accumulated supply chain resources through investments in Chinese online travel agency Tuniu and strategic cooperation with Ctrip
  • JD.com has reportedly been hiring for travel-related roles: Seeking candidates with experience at major online travel agency Ctrip or Meituan in particular, and offering salaries triple the industry norm for product managers, system architects, aviation operations, and other core roles, per Chinese media outlet The Paper

-> Trip.com fell -6.8% on the day of the announcement, while Meituan fell -3.2% 

• Senate passes GENIUS stablecoin bill (link)
  • What is the GENIUS Act? A bill that for the first time established federal guardrails for US dollar-pegged stablecoins and creates a regulated pathway for private Cos to issue stablecoins under strict guardrails, including full reserve backing and monthly audits
    • The bull passed with a 68-30 vote
  • Bill still needs to get signed into law: The bill will go to the House, which has its own version of a stablecoin bill dubbed STABLE; Both prohibit yield-bearing consumer stablecoins, but diverge on who regulates what
    • The Senate version centralizes oversight with Treasury, while the House splits authority between the Federal Reserve, the Comptroller of the Currency, and others
    • Reconciling the two could take a while, esp as House Republicans weigh attaching a broader market structure package, according to congressional aides

-> Circle shares closed up +33.8%, Coinbase surged +16.3% and Robinhood (which offers crypto trading) gained +4.5%; On the other hand, legacy payment stocks fell on the back of the news, with Mastercard closing down -5.4%, Visa down -4.9%, and PayPal down -3.0%