The way AI will be sold to a skeptical public is starting to become clear

Published

1 year ago

February 13, 2024

admin

Many AI companies struggle with customers understanding how the product won’t take away their ability to think for themselves. A few took the opportunity of the Super Bowl to change the narrative. There’s no greater opportunity to reach 123 million live viewers at once and get massive press buzz, even if it cost $7 million for a 30-second spot.

While many tech evangelists proclaim that artificial intelligence is the future, the majority of the public remains skeptical. According to a recent Pew Research Study, 52 percent of Americans are “more concerned than excited about the growth of AI.” Only 10 percent are more excited than concerned about the possibilities.

When Chat GPT came out, people were amazed at how it could write essays or create scripts based on the dialogue from their favorite shows. That’s changing, as more stories about AI replacing jobs and the need for regulation arise.

“There was a feeling of wonder and awe,” said advertising agency Walrus co-founder and chief creative officer Deacon Webster. “And then there was a negative feeling like, ‘Oh my God, none of us knowledge workers are going to have jobs.'”

There many winners and losers among the messages attempted by brands in the big Super Bowl advertising bets. AI was chasing an image revamp. Sunday was the first step in accomplishing that.

“Super Bowl is the last big sort of mass gathering,” Webster said. “It allows you to kind of get out there and put some brand messaging in front of tons and tons of people. I think no matter how much one-to-one advertising is out there, there’s something about sort of a shared experience.”

In Microsoft’s Super Bowl ad, a group of people overcome challenges ranging from opening their own business to getting a college degree. It’s not just thanks to their grit and ingenuity. It’s also thanks to the assistance of Copilot, Microsoft’s “everyday AI companion.”

“There’s a little bit of skepticism, hesitation in terms of how someone can go about using something so new, but not knowing that it’s actually a really accessible, relevant and simple tool to use,” said Divya Kumar, Microsoft‘s GM of search and AI marketing. “AI search has been around in the market for 20-something years. So we want to bridge that gap between the early adopters and mainstream consumers.”

Etsy showed how its AI-powered Gift Mode could help find the perfect present for France. Google Pixel’s commercial focused on how its tools help those who are visually impaired take photographs. And, Crowdstrike showed how AI tools could help fight cyberattacks in a Western cyberpunk-themed commercial.

“It’s really giving companies a chance , especially with the advertising, to pitch their angle of how is this going to be a positive thing for people for humanity and to be able to see it in the light that it creates a positive impact,” said Gaurav Misra, CEO of AI-powered video creation software Captions.

Creations makes videos in real-time, which brings up concerns over how the technology could be abused to manipulate content and create misinformation. It can also help people connect, as a recent New York Times article about how people fell in love using Captions AI translation software pointed out. That story helped the company explain the benefits of its product.

“You can speak in English, and it’ll make it look like you’re speaking French or German or something else, right?” Misra said. “It’s the type of thing that just wouldn’t have been possible before, and opens up new sort of possibilities of what people can do with it, and how people can communicate across different languages and cultures.”

There’s no bigger stage to get your humanizing message across than the Super Bowl, Microsoft’s Kumar said. The company also timed the ad campaign to a full user interface redesign of Copilot, which made it easier to see the prompts and gave more visual examples. It used real-life examples from customers to create the ad.

“It’s also a good learning experience because this is a great way for us to reach out to an audience that otherwise might not be fully in the know what Copilot can do, and then also learn from that experience in the upcoming marketing beats that we want to do,” she said.

Microsoft recently expanded access of Copilot to the small business community and launched a new premium subscription for individuals.

David Jones, The Brandtech Group founder and CEO, what America watched Sunday was the first attempt to have people understand that AI will change every aspect of our lives by doing everything better, faster and cheaper.

“What we saw in the Super Bowl are the embryonic early steps in this, but pretty soon it will be as pervasive as mobile or the internet or electricity,” said Jones, whose firm focuses on digital and generative AI marketing companies. “Nobody asks today ‘how will the internet be sold to us’ or ‘how will mobile be sold to us.’ They are at the heart of everything we do. (Generative) AI will be the same, but on steroids.”

Technology

Oracle’s Federal Electronic Health Record experienced a nation-wide outage

Published

5 hours ago

March 6, 2025

admin

Jaque Silva | Nurphoto | Getty Images

Oracle’s Federal Electronic Health Record experienced a nation-wide outage on Tuesday, the Department of Veterans Affairs confirmed to CNBC.

The agency said “all users” of the company’s Federal EHR, including the VA, the Department of Defense, the U.S. Coast Guard and the National Oceanic and Atmospheric Administration, were impacted. Six VA medical centers, 26 community clinics, and remote VA sites experienced disruptions, the agency said.

“Affected VA medical facilities followed standard contingency procedures during the outage to ensure continuity of care for Veterans,” a VA spokesperson said in a statement Thursday.

An electronic health record, or an EHR, is a digital version of a patient’s medical history that’s updated by doctors and nurses. It’s crucial software within the U.S. health-care system, and outages can cause serious disruptions to patient care.

Oracle is one of the largest EHR vendors thanks to it’s $28 billion acquisition of the medical records giant Cerner in 2022.

The company’s Federal EHR initially started experiencing issues at around 8:37 a.m. Eastern on Tuesday, the VA said. Users reported that the software froze and they were unable to access applications. Access was restored and cleared by 2:05 p.m. Eastern that day after Oracle restarted the system.

Oracle is carrying out an investigation to determine what caused the outage, the VA said. Oracle did not immediately respond to CNBC’s request for comment.

The outage marks Oracle’s latest stumble in a thorny, years-long EHR rollout with the VA, which has been marred by patient safety concerns. The agency launched a strategic review of Cerner in 2021, before Oracle’s acquisition, and it temporarily paused deployment of the software in 2023.

Four VA facilities in Michigan are slated to deploy Oracle’s Federal EHR in 2026.

In October, Oracle unveiled a brand-new EHR equipped with fresh cloud and artificial intelligence capabilities. The early adopter program for the software begins this year, though it’s not clear if the VA has plans to utilize it.

Oracle is slated to report third-quarter fiscal 2025 earnings on Monday.

Watch: Oracle CEO Safra Catz: Being number one is very important

Technology

Broadcom shares soar 16% as earnings top estimates on demand for custom AI chips

Published

5 hours ago

March 6, 2025

admin

Broadcom shares soar 16% as earnings top estimates on demand for custom AI chips

Broadcom CEO Hock Tan.

Lucas Jackson | Reuters

Broadcom reported first-quarter earnings on Thursday that topped analysts’ expectations, and the chipmaker offered strong guidance for the current quarter. The stock jumped 16% in extended trading.

Here’s how the company did versus LSEG consensus estimates:

Earnings per share: $1.60 adjusted vs. $1.49 expected
Revenue: $14.92 billion vs. $14.61 billion expected

Broadcom said it expects about $14.9 billion in second-quarter revenue, higher than the $14.76 billion forecast by Wall Street analysts. Revenue in the last quarter rose 25% from $11.96 billion a year earlier.

The company said net income increased to $5.5 billion, or $1.14 per share, from $1.33 billion, or 28 cents per share, in the same period last year.

Broadcom’s artificial intelligence business is at the center of the company’s recent boom, which saw its stock price more than double last year. The company is one of the primary data center infrastructure vendors for AI, working both on Google’s custom AI chips as well as providing essential components for networking thousands of other chips together to develop advanced AI software.

Prior to the after-hours pop, the stock was down about 23% so far in 2025, as investors rotate out of risk partly due to concern about President Donald Trump’s tariffs.

Broadcom said it recorded $4.1 billion in AI revenue during the first quarter, which is 77% higher on a year-over-year basis. Those sales are reported as part of Broadcom’s semiconductor solutions business, which grew 11% on an annual basis to $8.21 billion during the quarter.

Broadcom CEO Hock Tan said in a statement that the company expects “continued strength in AI semiconductor revenue,” reaching a projected $4.4 billion in the second quarter.

In December, Broadcom said it was developing custom AI chips with three large cloud customers. Tan said on Thursday that in addition to those customers, it had “deeply engaged” with two other hyperscalers, and are working with four other potential customers to develop their own custom AI chips.

Tan said that Broadcom closely chooses partners for developing custom AI chips who can deploy the resulting product in large quantities. “To put it bluntly, we don’t do it for startups,” Tan said.

The other major part of Broadcom’s revenue comes from its infrastructure software division, which includes software from the company’s acquisition of VMware in the fourth fiscal quarter of 2023. Broadcom said it saw $6.7 billion in software sales during the quarter, a 47% increase on an annual basis.

WATCH: Chip stocks see strong performance punished by markets

Chip stocks see strong performances punished by markets

Technology

HPE to cut 2,500 employees as stock slides 19% on weak earnings outlook

Published

6 hours ago

March 6, 2025

admin

HPE to cut 2,500 employees as stock slides 19% on weak earnings outlook

Antonio Neri, CEO of Hewlett Packard Enterprise, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, October 20, 2023.

Brendan McDermid | Reuters

Hewlett Packard Enterprise shares slid 19% in extended trading on Thursday as the data center equipment maker issued quarterly and full-year guidance that came in below consensus.

Here’s how the company did in the fiscal first quarter in comparison with LSEG consensus:

Earnings per share: 49 cents adjusted vs. 49 cents expected
Revenue: $7.85 billion vs. $7.82 billion expected

HPE’s revenue rose 16% year over year in the quarter ending on Jan. 31, according to a statement. The company was left with profit of $598 million, or 44 cents per share, up from $387 million, or 29 cents per share, in the same quarter a year earlier. The adjusted earnings per share excludes stock-based compensation.

“We could have executed better,” CEO Antonio Neri said on a conference call with analysts. The company had higher than normal inventory for artificial intelligence servers because of a shift to next-generation Blackwell graphics processing units from Nvidia.

The backlog for AI systems rose 29% quarter over quarter to $3.1 billion. Total server revenue totaled $4.29 billion.

HPE dealt with extensive discounting in the market while selling traditional servers during the quarter, finance chief Marie Myers said. As the quarter progressed, HPE moved to limit travel and discretionary spending, she said.

“We expect pricing adjustments may negatively impact top-line growth in the near term,” Myers said.

The company said it would implement a cost-cutting program involving layoffs over the next 18 months that will lead to $350 million in gross savings by the 2027 fiscal year. Around 2,500 employees will be affected, a spokesperson said, representing about 5% of the workforce when also factoring in expected attrition. At the end of October, HPE employed 61,000 people, according to its most recent annual report.

In January, the U.S. Justice Department filed in a federal district court to stop HPE from acquiring Juniper Networks. HPE announced the proposed $14 billion deal in January 2024. The court expects a trial to begin in July, according to the statement. The deal should close by October 2025, HPE said. In December, the company had said the transaction would be done in early 2025.

HPE called for 28 cents to 34 cents in adjusted earnings per share for the fiscal second quarter, with revenue coming in between $7.2 billion and $7.6 billion. Analysts surveyed by LSEG had looked for 50 cents per share on $7.93 billion in revenue.

For the 2025 fiscal year, HPE sees $1.70 to $1.90 in adjusted earnings per share. Analysts polled by LSEG had predicted $2.13 per share.

HPE expects to update its prices to reflect higher expenses from U.S. tariffs, Neri said, adding that he has not perceived any business deterioration from President Donald Trump’s so-called Department of Government Efficiency.

As of Thursday’s close, HPE shares were up about 2% so far in 2025, while the S&P 500 index was down 2%.

WATCH: HPE shares fall more than 10% after mixed earnings, layoff plans