Plus: Visa cuts headcount by about 7%. And Korean stocks tumble on doubts over AI. Imani Moise hosts.
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[00:00:00] [SPEAKER_00] The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this first-hand, but by embedding AI across HR, IT and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.
[00:00:31] [SPEAKER_01] Here's your morning TNB Tech Minute for Tuesday, July 28th. I'm Imani Moise for The Wall Street Journal. Apple is launching a new product leasing program with Klarna that will allow customers to pay monthly for new devices and then return, upgrade, or buy them. The program, called Apple Upgrade, will offer 12- and 24-month leasing options for iPhones and Apple Watches and 24- and 36-month lease terms for Macs and iPads.
[00:00:58] [SPEAKER_01] Apple, which reports earnings Thursday, also said it's ending its own upgrade in iPhone payments programs in the U.S. Visa is slashing 2,600 jobs, or about 7% of its workforce, as it works to adapt to the rapidly changing payments industry. The company's CEO said in a memo to employees that most of the roles affected would be in technology and product teams, but that there would be cuts across the organization.
[00:01:24] [SPEAKER_01] Visa joins other large companies seeking to streamline operations and improve efficiency with AI. Companies including Intuit, Cisco, and Meta have announced cuts in recent months, citing AI. Visa is set to report its quarterly earnings after market closed today. And Asian stocks fell today, led by South Korean markets, amid growing concerns over spending linked to the AI boom. South Korea's KOSPI led losses across the region and suffered its largest one-day drop since early March.
[00:01:54] [SPEAKER_01] Korean stocks have been hit recently by a wave of margin calls related to single-stock-leverage exchange-traded funds. These ETFs, primarily in market heavyweights, SK Hynix and Samsung Electronics, have pulled a huge wave of retail investors into the market. Many of these investors have borrowed to invest and are now being forced to sell their holdings, accelerating the market's drop and adding to the volatility. And that's your TNB Tech Minute. We'll be back this afternoon with more.
[00:02:22] [SPEAKER_00] So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300,000 can use AI to fill their HR questions, resolving 94% of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.