Plus: President Trump boosts quantum-computing development with two executive orders. And Oracle says it has cut about 21,000 jobs over the past year as it invests in AI. Danny Lewis hosts.
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[00:00:00] [SPEAKER_02] Many companies are struggling to scale their AI deployments or even move them past the pilot stage. Often the problem isn't technology, but organizational misalignment around goals, processes and incentives. At the break, join Caroline Roach, senior partner IBM Consulting, to learn why.
[00:00:16] [SPEAKER_00] Here's your morning TNB Tech Minute for Tuesday, June 23rd. I'm Danny Lewis for The Wall Street Journal. The tech sell-off is accelerating, with the NASDAQ composite tumbling more than 2% today. That's as the artificial intelligence rally has gone into reverse amid jitters over AI companies' heavy spending and looming Fed rate increases. Alphabet, Nvidia, Oracle and Tesla all opened sharply lower, following steep losses in big tech stocks yesterday. Chipmaker Micron Technology slid more than 11%.
[00:00:45] [SPEAKER_00] President Trump is accelerating his efforts to boost the quantum computing industry with a pair of executive orders aimed at speeding the development of the advanced computers and mitigating the security risks they present. One of the orders directs federal agencies to work with the private sector and academics to deploy a quantum computer powerful enough for scientific research by 2028, while the other instructs government agencies and security experts to prepare for quantum systems that can evade standard encryption faster than previously expected.
[00:01:14] [SPEAKER_00] Quantum computers are capable of solving problems much faster than traditional supercomputers, making them a growing priority for countries around the world. And Oracle cut about 21,000 jobs last year as it continued to develop its AI business and invested heavily in data centers. According to its latest annual report, Oracle's headcount decreased by 13%. The cloud computing and database company also reported $1.84 billion in severance and other costs tied to restructuring.
[00:01:42] [SPEAKER_00] Oracle said it has made significant investments in AI initiatives as it builds the technology into products, and that it might fall behind its rivals if it doesn't continue to invest significant resources into AI. That's your TNB Tech Minute. Join us again this afternoon for more.
[00:01:57] [SPEAKER_02] Scaling AI successfully requires more than the right technology. Here again is Caroline Roach, Senior Partner, IBM Consulting.
[00:02:04] [SPEAKER_01] The biggest thing that we were talking about a year ago is what model to use. And the biggest thing that I'm talking about with my clients now is how do I drive change within my organization.
[00:02:15] [SPEAKER_02] Companies able to identify, correct, and then avoid misalignment will be best positioned to deliver meaningful business value from AI.
[00:02:22] [SPEAKER_01] The organizations that are the most successful set very clear targets and have several priorities that are very clear across the enterprise. The technology is really good, but if you're not changing your organizational alignment, not incentivizing your people correctly, not looking at workflows, you're not going to see real value with it.
[00:02:43] [SPEAKER_02] Visit ibm.com slash think slash leadership to learn how building organizational alignment can help deliver AI deployments that scale and drive growth.
[00:02:51] [SPEAKER_01] This content was created by custom content from WSJ, a unit of the Wall Street Journal Advertising Department.