• Navy Secretary John Phelan says he is now overseeing design changes to the new Marine Corps landing ship.
• Phelan said he's reserving Fridays at 5 p.m. for change orders on the vessel.
• It's an unusual approach aimed at avoiding further failures.

The US Navy secretary says he is going to be personally stepping into the shipbuilding process, setting up Friday office hours for any design changes to a new landing ship project.

The oversight is an attempt to avoid repeating mistakes that led to program-crippling cost overruns and delays for the Navy's Constellation-class frigate, which was recently canceled with only two vessels under construction.

John Phelan, the sea service secretary, announced his plan last week at a Reagan National Defense Forum event when asked how the Navy plans to avoid missteps that led to the end of the Constellation program as the service builds the new LSM Landing Ship.

"We have settled on a design, it's a well known ship. The requirements are going to be put in and done before we start building the first one," Phelan said, adding that "when we start building the first one, any change order will have to be put through me," the secretary added, and "I've reserved Friday at 5 p.m. for my change order meeting schedule."

The Navy announced the selection of Dutch-designed vessel, the LST 100 landing ship, as the pick for the new medium landing ship program last week.

"By leveraging a mature, non-developmental design and strategic engineering," Naval Sea Systems Command said, "we are shortening acquisition timelines and ensuring our forces have the littoral mobility they need when they need it."

Marine Corps Commandant Eric Smith said that the Dutch shipbuilder Damen's LST 100, which displaces about 4,000 tons and can carry cargo and helicopters, is "an excellent choice" for the Marines.

"The Medium Landing Ships will enable our Marines to be more agile and flexible in austere environments where there are no ports, providing the joint force the needed operational mobility within the adversary's weapons engagement zone," he added.

Like the Constellation, which was based on Italian navy frigates, the LSM comes with a preconceived design. But the Navy decided to build the first Constellation vessel before the design was set, leading to cost and delivery problems. Now, the service is only building two of them; it originally awarded Wisconsin-based Fincantieri Marinette Marine $22 billion for 20.

Phelan posted about the plan for the new landing ship on social media, writing that "any change order comes through me."

He said "we are going to take our warfighters' requirements, translate them into stable, producible designs, and stick with them once they're set," adding that "if anyone wants to tinker with them, I've reserved Fridays at 5pm in my office for change order decisions — no drift, no delay."

The secretary's oversight plan puts him more directly in control of the LSM's design.

The Navy secretary's role is broad and policy-driven, centered on budgets, procurement, and shipbuilding programs. The specifics of fleet strategy and ship configuration typically fall to the chief of naval operations and NAVSEA, though the secretary still influences the fleet through major acquisition and funding decisions.

Phelan, who comes from a background in business, has previously stressed the need for more oversight of shipbuilding projects. Now he's taking that on himself.

"Secretary Phelan's decision to personally engage in the change order process is a necessary first step," Thomas Modly, a former Navy secretary during the first Trump administration, told Business Insider. "That being said, that decision is not an institutional change, just a personal one."

"The Navy itself needs to demonstrate that it can adopt its thinking to accept the concept of minimally altered foreign ship designs, and the programs need long-tenured program managers who believe in it," he said. "That's a harder problem."

Phelan's plan needs to establish successful oversight into the Navy's future as well. "Any fixes in this regard must outlive Secretary Phelan's tenure, or we will be looking at the same issues again in the future," Modly added. "Also, I hope the secretary is prepared to say 'no' a lot more than he says 'yes.'"

Under the second Trump administration, senior leadership, like Phelan, has made tackling key long-standing shipbuilding problems a priority, focusing on clearer designs and requirements as well as staying on budget and on schedule. Many of these issues stretch back decades and have been compounded by a shrinking workforce, stagnant wages, and aging shipyards that rely on outdated technology and practices.

When Phelan recently announced the cancellation of the Frigate on X, he said the vessel no longer offered strategic value to the fleet.

Although the acquisition of this vessel was important to the service's vision of a 355-ship fleet, the secretary said ending the program would help meet "the need to grow the fleet faster to meet tomorrow's threats" as the service prioritizes other classes of ships for faster shipbuilding timelines.

Other lines of effort for the Navy include uncrewed autonomous vessels, and there are reports of a "Golden Fleet" plan that seemingly concerns the development of hypersonic missile carriers. Where such projects fit into fleet design planning remains to be seen.

Phelan, like other service secretaries, has been keen on doing business with new partners alongside traditional defense companies.

"The Navy's going to be a better customer," the secretary said at the recent security forum, "But it's going to become a smarter customer," he added. "I think we are going to try to become a better partner with industry and new players as well."

• I lived in Budapest, Hungary, for seven years and was able to visit Christmas markets around Europe.
• The Nyhavn Christmas Market in Copenhagen, Denmark, was beautiful, and I loved tasting Æbleskiver.
• In Geneva, Switzerland, the melted cheese raclette at the Noël au Quai market was incredible.

I've always been enchanted by the idea of European Christmas markets. Complete with rosy glowing lights, steaming mulled wine, and stalls dripping with handmade crafts, they seemed like something out of a storybook.

So, when I moved to Budapest in 2017 and was suddenly just a quick flight or train away from many of the continent's most famous markets, I knew I had to take advantage of the opportunity.

Here are six of my favorite cities that I think should be at the top of your list if you're planning to visit Europe's Christmas markets this holiday season.

Budapest is home to two incredible markets.

Of course, I have to start with Budapest. The city is famous for its grand palaces, and come winter, it's dotted with incredible Christmas markets.

One of my favorites is the Advent Basilica Market, which pulls you in like a magnet with colorful stalls, a towering Christmas tree, and a light show every 30 minutes — all in front of St. Stephen's Basilica.

The market is filled with so many amazing scents, from the lavender goods and crafts made on the peninsula of Tihany to the paprika Hungary is famous for — it's even in soap.

For a truly local experience, hop across the river to ice skate at the Advent in Óbuda market, located about 20 minutes from the Basilica on public transport.

While you're in the city, I recommend trying kürtőskalács, which you can watch vendors make at all of the major markets.

Translated as "chimney cake," this spiral of dough is cooked over hot coals before being rolled in toppings, such as sugar, cocoa, or cinnamon (to name a few). When it's fresh off the coals, steam rises from the center of the pastry, resembling a smoking chimney.

Copenhagen's Nyhavn Christmas Market is located along the harbor.

I first fell in love with Danish Christmas markets when I studied in Copenhagen for a semester, delighted by how they brought warmth to the darkness of Scandinavian winters.

The Nyhavn Christmas Market is located on the banks of the canal, with the colorfully painted buildings decorated with lights and julehjerter (Christmas hearts).

I loved that the market was in one of Copenhagen's most iconic areas — it felt like celebrating Christmas in a postcard.

For a unique holiday experience, visit Tivoli Gardens, the second-oldest amusement park in the world. The already whimsical theme park is covered in Christmas decorations this time of year, plus there's ice skating and a traditional market for visitors to explore.

Don't forget to stop for a ride or two, and try Æbleskiver from one of the market stands. These fluffy, pancake-like balls, dusted in powdered sugar, are so easy to eat, especially with a side of gløgg (mulled wine) to keep you warm.

In Geneva, cheese and chocolate vie for your attention.

Situated on the shores of Lake Geneva is the Christmas market Noël au Quai. To get a great view of the Jet d'Eau (an iconic fountain in the lake), hop onto the market's Ferris wheel, then stroll between chalets filled with crafts, gifts, and food.

One thing I love about Swiss Christmas market food is the dedication to cheese. As soon as I saw a stall selling Chäsbängel — a hollowed-out baguette filled with melted cheese — I knew I had to have it.

I also enjoyed raclette, another melted cheese that pairs well with potatoes, pickles, and more, and absolutely hits the spot on a cold winter's day.

Oh, and it's also a great opportunity to try famous Swiss chocolate.

Vienna's Christmas markets put you up close and personal with European history.

Vienna is home to some of the most storied Christmas markets in Europe.

My favorite — and arguably the city's most famous — is the sprawling market at the Rathausplatz (City Hall), which has a whimsical carousel and towering displays of keepsake ornaments.

I also suggest stopping by Stephansplatz Market, located in the city center, wrapping around the famous St. Stephen's Cathedral.

It's so cool to stand around the small tables in the shadow of such a Gothic masterpiece, keeping your hands warm by wrapping them around a mug of glühwein (mulled wine). Plus, for a few extra Euros, you can buy a keepsake mug to take home with you.

It's impossible for me to choose between the Christmas markets in Bruges and Ghent, Belgium.

Luckily, with just a 20-minute train ride between Bruges and Ghent, it's easy to visit both cities' markets in a day. Plus, both are about an hour from Brussels, too, making them good options for a day trip from the capital.

The red brick building facades and cobblestone streets of Bruges make the city look like something straight from a fairytale.

Beyond the official markets, I loved window shopping among the seemingly endless chocolate shops, dressed with holiday decor and piles of handmade bonbons.

And in Ghent, the markets are scattered throughout the small city, offering visitors ample opportunity to stroll around and admire the medieval architecture all dressed up for the festive season.

While you're at the markets, make sure to grab a cone of piping-hot, crispy frites (fries) and a side of rich Belgian mayonnaise for dipping.

• UK startup Vertical Aerospace unveiled its new flying taxi this week.
• Traveling at speeds of up to 150mph, it could replace hourlong road journeys with 12-minute flights.
• It includes tech that makes the pilot's job easier with designs inspired by the F-35 fighter jet.

Vertical Aerospace has unveiled its new flying taxi, Valo.

Ahead of its big reveal on Wednesday, I was one of the first people to get a look at the aircraft.

Flying taxis are officially called electric vertical takeoff and landing aircraft, or eVTOLs.

The starting use case is that they can significantly reduce commute times between airports and city centers. Plus, they're quieter and less polluting than helicopters.

For example, Vertical says it would take 12 minutes between Canary Wharf and London Heathrow Airport, compared to over an hour via public transit or car.

However, its planned network also includes regional links between significant English cities, which it hopes could boost growth.

Valo could also be operated for emergency medical services and cargo missions, while Vertical is planning a future hybrid version with autonomous capabilities.

It's aiming for regulatory approval from the UK's Civil Aviation Authority in 2028.

"Valo sets a new standard — bigger, safer and more capable than anything in the sector," said Vertical's chair, Dómhnal Slattery. "It's a breakthrough for aviation and a clear sign of the UK's leadership in aerospace."

Here's what it looks like inside Valo, and how it's also using design ideas from fighter jets.

Vertical unveiled its new aircraft at an events space in London.

Canary Wharf is one of London's two primary financial districts, alongside the historic City of London. It was built on old docklands, and JPMorgan Chase recently announced plans for a new tower there.

The aircraft's design was slick and quite striking.

I got a look at the aircraft at the same time as numerous Vertical customers, which include American Airlines, Japan Airlines, and the helicopter operator Bristow.

Called "Valo," the new aircraft is the culmination of months of tests on its last prototype.

Valo can reach speeds of up to 150 miles per hour. The firm aims to produce 175 units a year by 2030, ramping up to over 225 units annually.

Unlike some rivals, Vertical plans to leave the operations up to its customers.

Vertical is positioning itself as an original equipment manufacturer, or OEM — the same sort of role as Airbus and Boeing.

Meanwhile, competitors like Archer Aviation are working on operational plans as well, which include setting their own ticket prices and planning apps for hailing aircraft.

Vertical also unveiled its planned route network, which it hopes will help boost the economy.

Vertical is working with Skyports and Bristow on this network. The former builds infrastructure, known as vertiports — similar to helipads but with facilities for passengers and aircraft charging. Bristow specializes in operating civilian helicopters.

A notable aspect of this network is its planned connections to Oxford and Cambridge. Transport links to the two cities, given their strength in academia and burgeoning startups, are seen as key to helping boost economic growth in the UK.

Valo also includes a surprisingly large cargo area.

Michael Cervenka, Vertical's chief commercial and strategy officer, compared it to the TARDIS from "Doctor Who," which is famous for being much bigger on the inside than from the outside.

It was indeed surprising to see suitcase after Rimowa suitcase pulled out — 12 altogether.

I had the chance to sit in the pilot's seat and learn more about the tech.

The two sidesticks are used for going forward and backward, or right to left. Valo utilises fly-by-wire technology, which means computer-controlled systems process the pilot's inputs.

Cervenka explained how Valo utilizes a philosophy called "unified control," which was first developed for fighter jets capable of vertical takeoff, such as the Harrier and the F-35.

"So what you want in an aircraft that's doing a transition between hover and forward flight is, it doesn't matter where you are in the flight envelope, you're essentially doing the same commands," he told Business Insider.

"It doesn't matter where you are; you can use those receptors, and they do the same thing. In hover, if I let go of everything, the aircraft stays stationary," he added.

Tilting propellers provide more maneuverability.

EVTOL manufacturers are building a new type of aircraft, so safety is paramount as they work toward certification. They're aiming to achieve the highest standard, which is also used for commercial airliners. This is referred to as 10^-9, meaning one catastrophic failure in a billion flight hours.

Having several propellers and flaps means that if one of them stops working, the aircraft can still fly.

Tilting propellers also provide the pilot with more control.

"We can do something you would really struggle to do in any other tilt rotor or helicopter," Cervenka said. "We can take off, we can hover one meter above the ground, or less, and we can do a 360-degree turn in gusting winds with the aircraft staying very stable."

Inside the cabin, the futuristic and premium atmosphere was tangible.

This model was arranged with four seats, but there's also room for another two.

I especially liked the thin screen that displayed details like the flight time.

While Archer and Joby's passenger seats are all forward-facing, this arrangement felt more futuristic.

Valo has a divider between the cabin and cockpit, and the pilot can talk to passengers via a speaker. In addition to privacy, this physical barrier enhances safety as nobody can interfere with the controls.

"Here, one of the really important things for us was: Yes, this starts with a premium service, but you don't know who you're getting into the aircraft with," Cervenka said.

• We sold our Washington house and moved across the country to live with my parents in Maryland.
• I'm glad my child gets to spend more time with her grandparents and we're saving money on housing.
• However, I miss my life in Washington and am struggling to build community here.

I always knew selling our house in Washington and moving across the country to live with my parents in Maryland was not my dream.

However, the practical side of me thought it might at least be a good idea.

For several years, my partner and I had been struggling with the high cost of living in Western Washington. And, like many millennials, I've struggled to juggle parenting, work, and a social life.

By moving, I hoped we'd feel less stretched financially and mentally, and that our daughter (who was 2 years old at the time) would have more support from and involvement with her grandparents.

As much as we loved Washington and the friends and family members we had there, we decided to take a risk and pursue a different life across the country.

I spent months hawking our things on Facebook Marketplace and our local "Buy Nothing" group. We sold our house, said goodbye to our community, and crammed the rest of our belongings into a truck and a small U-Haul.

One week and many hours of driving later, we pulled up to my childhood home and moved in.

Moving in with my parents was a smart financial decision — but I've lost a lot

Living with my parents in Maryland has come with a lot of clear benefits.

My daughter gets to have rich involvement with a lot of our adult relatives, including daily interactions with her grandparents. I get support from nearby family members who can often provide care for her when I need it.

My partner and I no longer have a mortgage to cover or any of the other expenses that come with owning a home. We have a community style of living that means shared responsibilities for things like making dinner and taking care of household costs.

Despite the support and financial benefits, there are many things I miss since moving. I've thought of Washington as its own "person" in my story to mourn losing.

I fell in love with our slice of the state, a small walkable city right on the Puget Sound. I treasured the environment where we lived — full of rich outdoor adventures, moody weather moments, magical sunny days when they came, and the best coffee culture.

We left behind a small but mighty community, and moving back home meant starting over.

A year later, I'm still working to make deep connections, and I have many days when I feel lonely.

The last time I lived in Maryland was more than 10 years ago, so I didn't have a group of friends here waiting for me. I've had to dive into building a community from scratch, which can take a lot of time.

I'm still deciding if the trade-offs were worth it

Though I grew up in Maryland, it still doesn't feel like home as much as Washington did.

I know we're in the right place for us right now, but I can't help but wonder about the life I left behind. Were the higher costs of living worth it? Should I trade this newfound financial stability for a scrappier, penny-pinching life with a fuller heart?

Perhaps finding community and falling in love with the place I live now just takes more time than I'm willing to give at the moment.

Either way, for now, I'm embracing the financial stability and family support this move has given me, even as I continue to miss our life in Washington.

Maybe the real lesson is that financial decisions can't be measured in dollars alone — and sometimes the biggest cost is what you give up.

• The White House salary report shows its top-paid staffers earn up to $225,700 annually.
• Senior advisors, legal counsel, and policy directors are among the highest earners listed.
• Government salaries can fall below private sector pay but far exceed the national average income.

Working at the White House might be one of the most exclusive and prestigious jobs in America, but you'd be surprised by how much some of the people around the president make each year.

For starters, having the top job — that is, being the president of the United States — brings in a salary of $400,000, which some independently wealthy presidents, such as John F. Kennedy, Herbert Hoover, and Donald Trump, have chosen to donate instead.

While the figure is significantly higher than what the average American makes — $69,846 in 2024, according to the Social Security Administration — it's also less than you would need to be in the top 1% of earners across all US states.

In 2025, the top 1% of earners in Maryland and Virginia, which border the District of Columbia, make an annual $677,543 and $701,792, respectively.

Government salaries can often fall behind what professionals make in the private sector, as serving the public isn't quite as lucrative as maximizing shareholder value. Still, to say that those working at the White House are underpaid would be an overstatement.

On July 1, the White House shared with Congress the salaries of all employees inside the president's executive office, including aides, advisors, and staff leaders, as it is legally required to.

Some of the highest-compensated workers around the president include policy advisors and legal counsel, while others are responsible for the president's communications and personnel management. Lower-paid roles include research assistants and press assistants.

A few at the top of the White House's payroll at the time of the list's reporting to Congress have since left their roles, like Taylor Budowich, who went to work for the private sector, or moved around the government, like Mike Waltz, who began acting as the US ambassador to the United Nations after being dismissed from his role as national security advisor.

Other notable names, like Marco Rubio and David Sacks, declared a $0 salary from the office of the president due to either forgoing their salary or receiving compensation from other branches of government.

The White House did not respond to a request for comment.

See the 35 people who get paid the most inside the White House, after the president himself.

Jacalynne Klopp

Role: Senior immigration advisor

Salary: $225,700

Klopp, who earns the maximum salary possible in the senior executive service, is a top advisor to border czar Tom Homan and has worked in the government for over 17 years, including roles at the Department of Homeland Security and in Immigration and Customs Enforcement's enforcement and removal operations, Fortune reported.

Edgar Mkrtchian

Role: Associate counsel

Salary: $203,645

According to Mkrtchian's LinkedIn profile, the attorney began working as an advisor for the US Commodity Futures Trading Commission in June 2024.

Brittany Baldwin

Role: Senior policy advisor

Salary: $195,200

Michael James Blair

Role: Deputy chief of staff for legislative, political, and public affairs

Salary: $195,200

Kyser Blakely

Role: Senior policy advisor

Salary: $195,200

Taylor Budowich

Role: Deputy chief of staff for communications and public liaison and cabinet secretary

Salary: $195,200

Budowich left his role at the White House to work in the private sector in October. Neither Budowich nor the White House commented publicly on his departure.

In February, he was named in a lawsuit by the Associated Press over his move to block the outlet's access to the Oval Office and Air Force One after they refused to adopt Trump's naming of the Gulf of America.

In response, White House press secretary Karoline Leavitt, who was also named in the lawsuit, said, "We feel we are in the right in this position. We're going to ensure that truth and accuracy is present at that White House every single day."

The case is ongoing.

Steven Cheung

Role: Director of communications

Salary: $195,200

Elizabeth Cilia

Role: Senior policy advisor

Salary: $195,200

John Coale

Role: Deputy assistant to the president and deputy special envoy to Ukraine

Salary: $195,200

Blake Deeley

Role: Special assistant to the president and deputy executive director of the National Energy Dominance Council

Salary: $195,200

William Doffermyre

Role: Senior advisor

Salary: $195,200

In October, Doffermyre began serving as the solicitor for the US Department of the Interior after being a senior advisor to the president for the first months of his second presidency.

Joshua Fisher

Role: Director of the Office of Management and Administration

Salary: $195,200

Sergio Gor

Role: Director of the Office of Presidential Personnel

Salary: $195,200

In August, the president nominated Gor, who was then serving as the director of the Office of Presidential Personnel, as the US ambassador to India, and he was sworn into the role in November.

Vince Haley

Role: Director of the Domestic Policy Council

Salary: $195,200

Hayley Harrison

Role: Chief of staff to the first lady

Salary: $195,200

William 'Beau' Harrison

Role: Deputy chief of staff for operations

Salary: $195,200

Kevin Hassett

Role: Assistant to the president for economic policy and director of the National Economic Council

Salary: $195,200

Tom Homan

Role: Border czar

Salary: $195,200

Hope Renee Hudson

Role: Advisor

Salary: $195,200

Joseph Keith Kellogg

Role: Special envoy for Ukraine and Russia

Salary: $195,200

Peter Lake

Role: Senior advisor and senior director of power at the National Energy Dominance Council

Salary: $195,200

Karoline Leavitt

Role: White House press secretary

Salary: $195,200

Nick Luna

Role: Deputy chief of staff for strategic implementation

Salary: $195,200

Earl G. Matthews

Role: Senior associate counsel

Salary: $195,200

In July, Matthews was sworn in as general counsel of the Department of War after serving as senior associate counsel to the president during the first months of his second term.

Stephen Miller

Role: Deputy chief of staff for policy and Homeland Security advisor

Salary: $195,200

Peter Navarro

Role: Senior counselor for trade and manufacturing

Salary: $195,200

Dan Scavino

Role: Deputy chief of staff

Salary: $195,200

After Sergio Gor was confirmed as the US ambassador to India in October, Deputy Chief of Staff Dan Scavino took over as the White House's director of personnel.

Will Scharf

Role: Staff secretary

Salary: $195,200

Mike Waltz

Role: National security advisor

Salary: $195,200

After the leak of Signal chats discussing US strikes in Yemen, the national security advisor was dismissed from his role and announced as the 32nd United States ambassador to the United Nations, a role he assumed in September.

David Warrington

Role: Counsel to the president

Salary: $195,200

Stefanie Wehagen

Role: Associate counsel

Salary: $195,200

Kara Westercamp

Role: Associate counsel

Salary: $195,200

Susan Wiles

Role: Chief of staff

Salary: $195,200

Patrick Witt

Role: Deputy director of the Presidential Council of Advisors for Digital Assets

Salary: $195,200

Ross Worthington

Role: Director of speechwriting

Salary: $195,200

• Meta plans to raise prices on its VR devices to ensure long-term sustainability, per an internal memo.
• Metaverse executives told staffers it will extend the replacement cycle of in-market devices.
• Meta also aims to deliver high-quality software experiences alongside its virtual reality devices.

Meta is planning to raise prices for its virtual reality devices, executives said in an internal memo seen by Business Insider.

Metaverse leaders Gabriel Aul and Ryan Cairns told employees that the company must "make a shift" in its business model to ensure long-term sustainability. This will include measures such as price increases, accounting for new costs like tariffs, and extending the replacement cycle of its in-market devices, per the memo.

"Our devices will be more premium in price going forward, but we'll have a healthier business to anchor on and free ourselves from feeling existential about any singular device's success," Aul and Cairns wrote in the memo, shared with staff on December 4.

They also called for delivering high-quality software experiences to customers that can match the "excellence" of its devices, adding that this may mean "we ship new hardware at a slower cadence going forward."

Meta did not immediately respond to Business Insider's request for comment.

The company's flagship virtual reality (VR) headset, the Meta Quest 3, retails for $499.99, while its entry-level model retails at $299.99.

The move comes as Meta pushed back the release of its new mixed reality glasses, codenamed "Phoenix," from the second half of 2026 to the first half of 2027, as outlined in a product strategy note to staff that Business Insider previously reported.

The memo announcing the price increases from Aul and Cairns did not refer to its mixed reality glasses. The document outlined three major themes derived from a recent Reality Labs strategy meeting with Meta CEO Mark Zuckerberg and CTO Andrew Bosworth. They included how Meta can build a sustainable VR business for the long term, how it can build "world-class" software experiences, and how it can accelerate its pace on mobile.

They also sought to reassure staffers that it remains focused on VR. Earlier this month, Bloomberg reported that Meta plans to make budget cuts of up to 30% to Reality Labs, the division responsible for Meta's hardware.

"We're committed to VR for the long-haul so we need to align our business model and roadmap to an approach that will make this possible," they wrote in the memo. "We've been working hard to bend the curve and accelerate ahead of the category's natural growth rate, which means running multiple programs in parallel as well as carrying costs like tariffs and subsidies for content, GTM, and devices."

Have a tip? Contact this reporter via email at jmann@businessinsider.com or Signal at jyotimann.11. Use a personal email address and a nonwork device; here's our guide to sharing information securely.

• A new Work AI Institute report said generative AI is quietly eroding core worker skills.
• Coauthor Rebecca Hinds said early-career staff risk losing vital skills as AI replaces apprenticeship.
• Hinds said leaders focusing on AI usage encourage shallow use over real learning.

Have you caught yourself feeling unusually confident at work — or unsure about errors slipping through your workflow?

You may not be imagining it.

A new report from the Work AI Institute, produced with researchers from universities including Notre Dame, Harvard, and UC Santa Barbara, and released on Wednesday, said that AI is turning ordinary office workers into people who feel smarter and more productive while their underlying skills slowly erode.

"AI is putting expertise into our hands in a way that's not always predictable," Rebecca Hinds, head of the Work AI Institute at workplace search company Glean and the report's coauthor, told Business Insider.

"There's often this illusion that you have more expertise, more skills than you actually do," she said. "Even if you're very well aware you're using the technology, it's often unclear where your knowledge ends and where the technology begins."

Hinds drew a parallel to the rise of search engines, when people began to mistake easy access to information for genuine understanding.

With generative AI, she said, that illusion is even more powerful — and the risks are higher.

When AI erodes skills instead of sharpening them

Hinds said these risks are most obvious in creative and knowledge-intensive roles.

Workers are increasingly using AI to beat the "blank page," she said, and generate first drafts of writing.

That speeds things up, she said, but it also strips away the messy, time-consuming work of wrestling with ideas.

"The more you poke holes in it, the more it feels yours and the more you commit to it, and the more you're able to fight for it in a meeting if someone pushes back," she said.

"That process is highly inefficient," she added, "but it's also really healthy." And if workers lean too heavily on AI to skip it, "your skills are going to atrophy."

The report suggested that AI can create either a "cognitive dividend" or "cognitive debt."

Used intentionally, as a partner in domains where you already have expertise, it can free up time and sharpen judgment. However, used as a reflexive shortcut, it leads to weaker skills and misplaced confidence, it said.

Early-career workers are most exposed

Hinds said that the roles with the highest exposure are early-career jobs.

Those are the roles that traditionally function as apprenticeships: junior developers learning from senior engineers, entry-level marketers learning how to build campaigns, and young analysts learning how to structure a model from scratch, she said.

If those tasks are automated away or if juniors rely entirely on AI to do them, they may never develop the underlying skills they need to advance, she said.

Hinds said leaders are often unintentionally exacerbating the illusion-of-expertise problem.

A big red flag, she said, is "organizations stack-ranking employees based on how many times they're clicking an AI tool as a marker of AI adoption or AI productivity or AI success."

In some companies, usage metrics are tied directly to performance reviews.

Employees "are incentivized to click the tool more rather than invest in a deep understanding of the tool," she added.

Instead, she said, companies should tie AI to existing business goals — quality, customer satisfaction, innovation — and measure whether it actually improves those, not just how often it's used.

How to avoid becoming an 'AI-powered amateur'

Hinds doesn't think the solution is to shun AI. She thinks it's to be far more deliberate about its use.

She recommended three questions for workers and leaders:

• What roles should stay deeply human? Identify the parts of your job that build judgment, creativity, and motivation — and resist fully automating those.
• Where is AI truly adjacent? Use AI first in areas close to your existing expertise, not as a shortcut into domains you don't understand.
• What are you measuring? Focus less on how often people use AI and more on whether it's improving real outcomes.

AI "does not magically transform you as a leader," Hinds said. "More often, it amplifies what already exists within the organization."

• Shapes raised $24 million for its AI-powered modular HR platform.
• The startup offers customizable HR tools and AI agents for onboarding, payroll, and retention.
• Business Insider got an exclusive look at the pitch deck it used to raise the funding.

A Tel Aviv startup that uses AI agents to automate HR processes like onboarding and compensation has raised $24 million in funding.

The HR platform from Shapes essentially offers an app store of AI-based HR tools.

"It means that you can manage your employees your own way. You can install different apps and agents in order to do the job for you," Shapes cofounder and CEO Arnon Nir told Business Insider.

For example, an AI agent can proactively notify a member of HR that an employee is at risk of leaving, based on data points such as low salary, high performance, and recent absences.

The startup's AI agents can automate other workflows, such as payroll or contract drafting, based on prompts from HR staff. Employees can use the platform for HR tasks such as booking time off and also ask AI agents for information, including details about company policies.

Shapes, which has rebranded from DreamTeam, was founded in 2020 by Nir and Shirley Baumer, who were previously founding members of HR tech company Monday.com.

In addition to the app store-like structure, which the startup calls "PeopleOS," customers can build their own bespoke applications on the platform using prompts, similar to vibe coding.

Shapes says its modular design can help companies scale up and down as the size of workforces fluctuates in the AI era.

"Every company needs to rethink its structure, its people, its culture. And every company needs to kind of find itself from scratch," Baumer told Business Insider.

The HR tech market is highly competitive, with an increasing number of players — such as Workday and HiBob — integrating AI into their solutions. Nir said the modular nature of its software is one of its competitive advantages.

"Every company works differently. You want to give them the power to decide what they want to use," Nir said.

Shapes says it has "hundreds of customers" located in 79 countries and spanning 14 industries, including retail, manufacturing, and technology. Its customers include Quantum Machines, NextSilicon, Healthee, Arena Entertainment, and Imagen, according to Shapes. It operates as a software-as-a-service business model, charging a flat rate per employee at the company.

The funding consists of $15 million in Series A, closed in October, and a previously unannounced $4.5 million seed investment, as well as a $4.5 million seed extension. The Series A round was led by Entrée Capital, with participation from NFX and F2 Venture Capital, which led the seed round.

Shapes said it would use the funding to more than double its head count over the next year and expand into new markets.

Here's an exclusive look at the 10-page pitch deck Shapes used to raise $24 million.

• Howard Marks warned that AI threatens purpose and structure, not just workers' paychecks.
• He said UBI can't replace the self-worth and identity people get from work.
• He called AI's employment outlook "terrifying" as jobs and meaning erode.

"Terrifying."

That's one of the words legendary investor Howard Marks used to describe the impacts of AI on the workforce.

"I find the resulting outlook for employment terrifying. I am enormously concerned about what will happen to the people whose jobs AI renders unnecessary, or who can't find jobs because of it," Marks wrote in his latest blog post on Tuesday.

The billionaire and cofounder of Oaktree Capital Management has been writing memos for 35 years; in one recent post, he experimented with using AI to assist him in writing.

Tech leaders such as Elon Musk and OpenAI CEO Sam Altman have called for versions of a universal basic income — a guaranteed income paid regularly to all adults if jobs become obsolete — as a solution to AI-related job and pay loss.

But Mark said that even if governments find a way to fund universal basic incomes, it doesn't account for a key issue: That people get a lot more from jobs than just a paycheck.

"A job gives them a reason to get up in the morning, imparts structure to their day, gives them a productive role in society and self-respect," he said.

"How will these things be replaced? I worry about large numbers of people receiving subsistence checks and sitting around idle all day," he added.

The estimates on how many jobs will be affected by AI vary. An IMF analysis from 2024 suggested that around 60% of jobs in advanced economies will be affected by AI, with half benefiting from the technology and the other being negatively impacted by it.

A McKinsey Global Institute report released last month found that technologies could automate more than half of US work hours.

But Marks isn't alone in worrying about what happens to meaning when work vanishes.

Kate O'Neill, a tech advisor who helps companies navigate AI ethics and digital transformation, said in a recent TED Talk that as we hand more decisions and language over to AI, we risk surrendering a fundamentally human capacity — creating meaning from lived experience — not just losing tasks to machines.

James Barrat, author of "The Intelligence Explosion: When AI Beats Humans at Everything," told Business Insider he believes people can find new purpose in a universal basic income world through volunteering and community service work — but only after a long, painful transition in which many lose jobs before rebuilding meaning somewhere else.

What careers should the next generation prepare for?

If AI is set to reshape work as profoundly as some people expect, tech leaders say young people will need to develop skill sets machines can't easily mimic.

Geoffrey Hinton, the so-called godfather of AI, has said that "mundane intellectual labor" roles are most at risk because of AI.

"I'd say it's going to be a long time before it's as good at physical manipulation," Hinton said of AI earlier this year. "So a good bet would be to be a plumber."

OpenAI's chief economist, Ronnie Chatterji, said he is teaching his kids the importance of critical thinking, emotional intelligence, and flexibility — preparing them for a world in which job titles shift faster than curricula can keep pace.

Elon Musk recently said that while some of his older children recognize how quickly their skills could be overtaken by AI, he still supports them going to college.

"If you want to go to college for social reasons, I think that's a reason to go — to be around people your own age in a learning environment," he said.

"If you do, just try to learn as much as possible across a wide range of subjects," he added.

• I've always loved receiving holiday cards, but since I'm not married, I was hesitant to send my own.
• However, 10 years ago, I started sending annual cards that highlight my extensive solo travels.
• My loved ones look forward to receiving my card, and it's become one of my favorite traditions.

Since I was a child, receiving holiday cards has been one of my favorite parts of December.

I love seeing the snapshots families choose to represent their year and reading the little updates that I don't get on social media.

When I was in my 20s, I wanted to start sending my own, but I felt I had to wait for traditional milestones — like getting married and having kids — before it would feel "appropriate."

In my mind, holiday cards seemed like a privilege reserved for conventional lives.

As the years went by, I continued to see stories about unmarried, single, or child-free women sending holiday cards that poked fun at their status. They'd pose with sad faces and wine bottles or include clever quips about being alone once again.

Every year, without fail, someone would send me these articles as if I could relate, but I couldn't. To each their own, of course, but I never saw my life as something to be made fun of, and I definitely didn't feel sorry for myself.

So, I created a new holiday card tradition — one that celebrates my beautiful and full life.

I realized I was proud of my life and wanted to share that pride with friends and family

As I neared 30, I started doing a lot of solo traveling and set the goal of visiting all 63 major US national parks on my own by the time I turned 40.

Though I was posting some of my trips on social media, I also wanted to share them more personally with my friends and family.

Finally, I decided to print a holiday card featuring a photo from a summer trip I took to Canada — a simple shot of my backpack overlooking the mountains of Banff National Park.

I hesitated for a while before mailing them, worried that friends and family might find it narcissistic or odd to receive a card with only me in it.

However, many who received the card reached out to express their love for the photo and how happy they were to get it in the mail.

My card has become a way to celebrate the life I've built

I've kept the tradition going ever since — for nearly 10 years now, through my entire 30s, I've sent a card filled with my favorite photos from the year's solo adventures.

Friends and family often ask well in advance if they're still on my mailing list and tell me how much they look forward to receiving them.

For me, sharing these more personal photos — the ones I cherish most — in a tangible, intimate way has become a highlight of the season.

Creating the cards each year makes me feel empowered, proud of my accomplishments, and confident in the life I've chosen.

More than anything, it's a reminder that holiday cards can celebrate joy, connection, and the version of life you're proud to live — however unconventional it may be.