• Surely CBA shares can’t just keep rising?

    A woman looks questioning as she puts a coin into a piggy bank.

    The Commonwealth Bank of Australia (ASX: CBA) share price has shown strong performance recently, with a rise of over 30% since the beginning of November 2023, as shown on the chart below. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has risen 14% in the same time period.

    CBA has climbed alongside the other major ASX bank shares, including National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

    Does the rise make sense? As John Maynard Keynes once said:

    The market can stay irrational longer than you can stay solvent

    Does the recent performance justify investor enthusiasm?

    It’s a strange surge for the banking sector, considering the ongoing banking challenges remain. The net interest margin (NIM) (lending profit after funding costs) is drifting lower, arrears are climbing, competition is strong and credit demand is not strong.

    In the FY24 third quarter update, cash net profit after tax (NPAT) declined 5% year over year to around $2.4 billion.

    CBA noted its net interest income was challenged because of “lower net interest margins primarily from continued competitive pressures and customers switching to higher yielding deposits.”

    It said there was “improved momentum” in volume growth across home lending and household deposits. Home loans grew by $4.2 billion, at 0.7 times the system, for the three months to March 2024.

    CBA also revealed its loan arrears are increasing – the percentage of home loans that are at least 90 days overdue increased to 0.61% at March 2024, up from 0.52% at December 2023, 0.44% at March 2023 and 0.43% at December 2022.  

    Despite that backdrop, the CBA share price has delivered this rise. It’s now very expensive on typical valuation metrics.

    According to the independently provided forecasts on Commsec, the CBA share price is valued at 22x FY24’s estimated earnings and 22.5x FY25’s estimated earnings – earnings per share (EPS) is expected to drop around 2.5% in FY25 amid the challenges I’ve talked about.

    My take on the CBA share price

    In my opinion, CBA is definitely one of the highest-quality banks in Australia, along with Macquarie Group Ltd (ASX: MQG) and probably NAB.

    It has done well growing profit over the last decade despite the challenges, and I applaud its efforts to expand in business banking, where it can diversify and grow its earnings.

    I don’t think CBA shares offer good value here, but I would have said that when the CBA share price was at $120 (and it’s above $127 now).

    There is one main reason the CBA share price keeps rising – there is stronger buying demand than selling. It’s hard to say who is driving the buy, but I wouldn’t be surprised if it’s investors who are not entirely focused on valuation.

    ASX-focused exchange-traded funds (ETFs), such as Vanguard Australian Shares Index ETF (ASX: VAS), must buy the shares in their index if people give the fund provider money.

    Also, Australians collectively continue to contribute billions of dollars to their superannuation fund, such as AustralianSuper, which must allocate that money in accordance with the super member’s investment allocation wishes, which typically would include a sizeable portion to Australian shares.

    There is a lot of capital in Australia that is looking for a home every month or three months. So, it’s possible the CBA share price could keep rising, even if the valuation isn’t appealing.

    The post Surely CBA shares can’t just keep rising? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank Of Australia right now?

    Before you buy Commonwealth Bank Of Australia shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • The Justice Department is coming for AI: ‘If your AI fixes prices, you’re just as responsible’

    A flag waves outside the federal Department of Justice building in Washington, DC
    The US Department of Justice is cracking down AI.

    • The Justice Department is cracking down on anticompetitive uses of artificial intelligence.
    • The DOJ has been investigating RealPage for using AI algorithms to set high prices since 2022.
    • The investigation comes amid the Biden administration's wider antitrust crackdown on Big Tech.

    AI can make many things easier for companies, including price fixing.

    The Department of Justice is now cracking down on such anticompetitive uses of the buzzy new technology.

    That means practices like setting prices above the market rates, colluding with rivals, and striking exclusionary deals are unlawful — whether humans or algorithms are behind them.

    The Justice Department has been concerned about AI's impact on antitrust litigation for at least the past few years.

    Since 2022, it has been investigating RealPage, a rental property management software company, for instance, for using AI algorithms to set prices above competitive levels.

    The Justice Department says the company used sensitive and private data in an algorithm under the expectation that its competitors would do the same. That practice, it says, should be judged under the same guidelines as humans. "Automating an anticompetitive scheme does not make it less anticompetitive," the agency said in a statement from 2023.

    This focus on anticompetitive uses of AI comes amid a broader spate of investigations and antitrust lawsuits the Biden Administration has launched against major tech companies like Google, Apple, Amazon, and Microsoft.

    In the long term, algorithms will likely be even more important to litigate because they can process more information than humans.

    "If your AI fixes prices, you're just as responsible," Assistant Attorney General Jonathan Kanter told The New York Times in reference to the RealPage probe. "If anything, the use of AI or algorithmic-based technologies should concern us more because it's much easier to price-fix when you're outsourcing it to an algorithm versus when you're sharing manila envelopes in a smoke-filled room."

    That means stricter regulations around the use of AI — and stricter penalties for its misuse — could be coming.

    At the American Bar Association's annual gathering on white-collar crime this March, Deputy Attorney General Lisa Monaco said the Justice Department's focus on AI means prosecutors will impose "stiffer sentences" on individuals and corporations that misuse AI for white-collar crime, according to the Associated Press.

    And compliance officers, who ensure companies adhere to legal regulations, should "take note," she said. "When our prosecutors assess a company's compliance program — as they do in all corporate resolutions — they consider how well the program mitigates the company's most significant risks. And for a growing number of businesses, that now includes the risk of misusing AI."

    Read the original article on Business Insider
  • Tesla Cybertrucks vandalized in Florida with some choice messages attacking Elon Musk

    Tesla Cybertruck
    Tesla Cybertruck.

    • Dozens of Tesla Cybertrucks were vandalized in Fort Lauderdale, Florida, this week.
    • The Cybertrucks were spray painted with a message attacking Tesla CEO Elon Musk.
    • Cybertrucks have become a symbol of ire for Elon Musk's many critics.

    Tesla Cybertrucks have become symbolic. But probably not in the way Tesla CEO Elon Musk hoped.

    Nearly three dozen Cybertrucks were vandalized this week in Florida with disparaging messages aimed specifically at Musk.

    A 35-second viral video showing the aftermath of the vandalism spree in a Fort Lauderdale parking lot first gained traction on Instagram on Friday.

    The footage — shared to the Only in Broward account — showed a fleet of Cybertrucks with the phrase "Fuck Elon" spray painted across the metallic exteriors. The man filming the video said Tesla recently leased the parking lot, and Cybertrucks began arriving three days ago.

    "Looks like someone doesn't like Elon…" the caption read.

    Elon Musk on a red carpet.
    Elon Musk.

    Local authorities told NBC Miami that 34 vehicles had been vandalized within the parking lot, which housed Cybtertrucks and other Tesla models.

    The person who called the authorities said the vehicles were in fine condition on Thursday night but were damaged by Friday morning, the outlet reported.

    The vehicles were quickly cleaned or taken off the lot.

    Representatives for Tesla did not respond to a request for comment from Business Insider.

    Tesla began delivering Cybertrucks to the general public in November 2023. Cybertrucks start at $60,990 for rear-wheel drive and increase to $79,990 for all-wheel drive. The Cyberbeast, which can reach 130 mph and tow 11,000 lbs, costs an estimated $99,990.

    While Tesla Cybertrucks have received a decidedly mixed response in the United States, they have been embraced elsewhere.

    The Dubai Police General Command added a Cybertruck to its fleet of patrol vehicles this month. Musk and the official Cybertruck account applauded the decision on X.

    "Very cool to see — thanks for the trust!" the Cybertruck account wrote.

    Tesla has faced a string of bad news in recent months. The automaker slashed 10% of its global workforce in April and laid off more workers in the weeks after. And some traders say the company's stock is overvalued. One short-seller recently called Tesla's stock was one of the "biggest stock market bubbles" in history.

    Read the original article on Business Insider
  • Apple’s big AI rollout is looking a lot smaller

    Apple WWDC 2024
    Apple Intelligence

    • Apple went big with its reveal of Apple Intelligence, its AI offering, earlier this month.
    • But Apple Intelligence is only available on the latest iPhone models.
    • And it likely won't be available in some of the company's largest markets anytime soon.

    At one of its splashiest product reveals in recent history, Apple unveiled its new AI push, called Apple Intelligence, with great enthusiasm earlier this month.

    But the new tech's big rollout is turning out to be a lot more limited than that fanfare implied.

    Apple Intelligence is only available on the company's newest and most expensive phones. And it might not even make it to some of Apple's biggest markets.

    Apple Intelligence will be "built into your iPhone, iPad, and Mac to help you write, express yourself, and get things done effortlessly," Apple boasts.

    But the tech, which will arrive in beta form this fall, will debut only on the "iPhone 15 Pro, iPhone 15 Pro Max, and iPad and Mac with M1 and later" versions.

    It also faces hurdles in China, one of the iPhone maker's most important markets. Apple Intelligence uses ChatGPT, a product of OpenAI that isn't allowed in China as Beijing regulators prioritize Chinese AI developers. Apple is negotiating with local Chinese companies to try and find another way into the market, Business Insider previously reported.

    Apple is also postponing its release of Apple Intelligence in the European Union amid regulatory scrutiny. The EU put Apple on notice earlier this year to ensure the company's products comply with the Digital Markets Act, which is the bloc's attempt to hold major tech "gatekeepers" accountable and promote healthy competition. Apple said it is working to "find a solution that would enable us to deliver these features to our EU customers without compromising their safety," CNBC reported.

    Beyond regulations, tech companies are also navigating what users do and don't want from AI. Companies like Meta and Google have faced user backlash over the intrusiveness — and usefulness — of their new AI features.

    Some Facebook and Instagram users have grown frustrated by Meta AI, for instance, a feature shoehorned into the search bar and impossible to opt out of. Similarly, Google rolled out and then scaled back its AI-generated answers in search after its bot suggested users consume glue.

    So maybe Apple's limited rollout is for the best, for now.

    Read the original article on Business Insider
  • Ted Cruz says Biden is breaking the law by taking credit for infrastructure projects

    President Joe Biden speaks to a crowd about his economic and infrastructure plans on January 4, 2023 in Covington, Kentucky.
    President Joe Biden speaks to a crowd in Kentucky about his economic and infrastructure plans.

    • Sen. Ted Cruz has an issue with signage touting projects funded by the 2021 infrastructure law.
    • Construction sites across the US note that projects were made possible by the Biden-signed law.
    • "These displays are nothing more than campaign yard signs," Cruz argues.

    Across the United States, scores of construction sites are emblazoned with signs that read: "Project Funded By President Joe Biden's Bipartisan Infrastructure Law."

    For many people, it's an innocuous notation of the thousands of projects financed by the sweeping $1.2 trillion infrastructure law Biden signed into law in 2021 and was backed by both Democrats and a sizable contingent of Republicans.

    Texas Sen. Ted Cruz was not one of them.

    Cruz is now pushing for a government probe into whether the Biden administration has run afoul of the Hatch Act by using taxpayer funds to promote the law's impact, according to Politico.

    In a letter obtained by Politico, Cruz argues that the Biden administration has "highly politicized" the infrastructure law, pointing to the signs that explicitly state that projects were made possible by the legislation and include the president's name.

    Cruz, in the letter, then argues that Biden "unilaterally rebranded" the bipartisan infrastructure law as "President Biden's Bipartisan Infrastructure Law," which passed the House by 228-206 votes and the Senate by 69-30 votes.

    "I write to refer this to you for investigation as a possible violation of the Hatch Act, federal law that broadly prohibits using taxpayer dollars for campaign activity," Cruz said in the letter addressed to the Office of the Special Counsel's Hampton Dellinger. "Congress, not President Biden, wrote [the infrastructure law], and it did not do so to aid the President's reelection campaign."

    "These displays are nothing more than campaign yard signs courtesy of the American taxpayer," the senator added, according to Politico.

    Cruz vociferously opposed the law and voted against its passage.

    White House spokesperson Robyn Patterson told Politico in a statement that the project signs "promote transparency and inform taxpayers how federal dollars are being spent."

    "If Senator Cruz were half as concerned about Texas kids getting safe drinking water as he is about signs, he might have voted for the Infrastructure Law and to send $31 billion to tackle essential infrastructure needs across Texas," the statement added.

    According to Politico, Cruz also said the "Investing in America" logo was "purposefully designed to look like the Biden-Harris campaign logo."

    The infrastructure law — by far Biden's signature domestic accomplishment — is being touted by the president himself and Democratic candidates on the campaign trail as one of their biggest legislative wins.

    The law provided federal funding for long-awaited upgrades for bridges and tunnels, highways, and rail infrastructure, among other projects.

    Biden aims to set himself apart from former President Donald Trump on the issue. In 2016, Trump ran on enacting a broad infrastructure plan, but during his term in the White House, he never proposed a workable bil for lawmakers.

    Still, Biden has hit a wall on the issue ahead of the November election, as some voters remain skeptical of the law's effectiveness — while a significant slice isn't giving him much credit for it at all.

    A Politico-Morning Consult Poll conducted in April showed that 40% of registered voters gave Biden the edge on infrastructure upgrades and job creation, while 37% of respondents gave Trump the advantage. And in the seven battleground states, Biden's edge over Trump on the issue was just six points (42% to 36%).

    Read the original article on Business Insider
  • Russia launches ‘massive’ attack on Ukraine’s power grid, the 8th in just 3 months, Ukraine’s energy ministry says

    A worker at a power plant, tries to repair damages after a Russian attack in central Ukraine, Jan. 5, 2023.
    A worker at a power plant after a Russian attack in central Ukraine in January 2023.

    • Russia launched a "massive" attack on Ukraine's power grid overnight.
    • Russia has increasingly targeted Ukrainian energy infrastructure as the war has progressed.
    • This latest attack marks the eighth since March, Ukraine's energy ministry said.

    Russia launched a "massive" attack on Ukraine's power grid overnight as it continues to target the country's energy infrastructure, Ukraine's energy ministry announced on Telegram.

    The latest attack marks the eighth time Russian forces have targeted Ukraine's power grid since March, the ministry added.

    Ukraine's air force said Russia launched 16 missiles and 13 drones in the attack, which targeted a number of different regions.

    While the air force said Ukraine's air defense systems were able to take down 12 of the missiles and all of the drones, two workers were injured in strikes in Zaporizhzhia in southeastern Ukraine, and some equipment was damaged.

    Russian targeting of Ukrainian energy infrastructure has also caused mass blackouts across Ukraine this year.

    Russia has switched up its tactics from previous attempts to attack the power grid, aiming to strike energy generation infrastructure instead of electricity substations.

    "We urgently need to close our skies or Ukraine faces a serious crisis this winter," Maxim Timchenko, the CEO of DTEK, a Ukrainian energy company, said following the latest attacks, per the BBC. "My plea to allies is to help us defend our energy system and rebuild in time."

    Ukrainian President Volodymyr Zelenskyy has urged Ukraine's allies to provide more air defense systems as his forces attempt to repel such attacks, saying they required at least "seven more 'Patriots' or similar air defense systems."

    Ivan Fedorov, the governor of Zaporizhzhia, echoed this in a post on Telegram following the latest attack.

    "At night, Russians attacked Zaporizhzhia region again," he wrote. "The enemy will not stop. Ukraine needs air defense systems."

    In April, Business Insider reported that Ukraine's low stocks of air defense missiles were leaving even the country's best-protected cities increasingly vulnerable to attack after Russia was able to strike a major power plant near Kyiv.

    The Associated Press reported earlier this month that the US had agreed to send a second Patriot air defense system to Ukraine, citing two US officials.

    Business Insider contacted Ukraine's energy ministry for comment.

    Read the original article on Business Insider
  • It’s up 3,500%, but here’s why I’m still not buying Nvidia stock

    A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.

    Unless you’ve been living under a rock (or else aren’t too interested in finance or investing), you’ve probably heard about the explosive rise of US chip and artificial intelligence (AI) stock NVIDIA Corporation (NASDAQ: NVDA) over the past year or two.

    Nvidia has been a much-loved growth stock for a while now. But its growth has gone from stratospheric to astronomic over the past 12-18 months.

    To give you an idea of what that looks like, the Nvidia share price has put on 181.5% in 2024 alone (as of the US markets’ Wednesday close). Those gains stretch to 209.5% over the past 12 months and a stupendous 3,477% over the past five years.

    Obviously, I would have loved to own this stock, ideally for at least five years. But I don’t. And I’m not going to buy any.

    Nvidia is an incredible company, no one disputes that. The earnings numbers it has been cranking out over the past few months have been almost unbelievable. To illustrate, back in May, the company’s quarterly report showed revenues surging 262% year over year to US$26 billion.

    I wouldn’t be surprised to see this kind of growth continue for at least another year or two.

    So why wouldn’t I want to buy this company? Well, I am seeing the classic signs that Nvidia shares are entering ‘bubble’ territory.

    Is Nvidia stock in a bubble?

    Investors always love a market darling. When it seems a company can do no wrong and is the centre of the future, everyone understandably wants a slice of the action. We always see this kind of thing on the investing markets, albeit not on Nvidia’s scale.

    On the ASX, we had Afterpay and Zip Co Ltd (ASX: ZIP) a few years ago.

    On the US markets, electric vehicle manufacturers were all the rage back in 2021 and 2022. We saw companies like Tesla, Rivian and Nikola explode in value, only to shrink once the hype faded. Many of these companies had strong numbers to back up their growth stories, to be sure. No one disputes that the trajectory of electric vehicles is still on the rise.

    But there was hype in that space. And that hype faded. As it almost always does. Today, Tesla shares are still well above (over 1,100%) what they were five years ago. But the company is also down 55% or so from its record high.

    Rivian shares have plummeted by 91.5% from their 2021 peak, while Nikola shares have also dropped by over 99% from their peak.

    I’m not saying this will happen with Nvidia. In my view, the company’s future is bright. But I don’t think it’s sustainable for a multi-trillion company to rise by 43% in one month, as Nvidia stock has. I think eventually, the company will come down to earth. As Benjamin Graham once said, ‘in the short run, the market is a voting machine, but in the long run, it is a weighing machine”.

    Investors are clearly voting Nvidia stock higher right now. But I’m willing to wait and see what the market eventually weighs it at. I could be wrong here. Perhaps Nvidia goes on to become a US$4 trillion company or even a US$5 trillion one in 2024 or 2025. But I think that’s a roll of the dice at this stage, and I don’t roll dice in my portfolio.

    The post It’s up 3,500%, but here’s why I’m still not buying Nvidia stock appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Nvidia right now?

    Before you buy Nvidia shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nvidia wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Sebastian Bowen has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia, Tesla, and Zip Co. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Prince William seen dancing to ‘Shake It Off’ with his kids at Taylor Swift’s concert in London

    Taylor Swift performs at Wembley Stadium in London on June 21 as part of The Eras Tour.
    Taylor Swift performing at Wembley Stadium in London on June 21.

    • Prince William attended The Eras Tour with Prince George and Princess Charlotte in London.
    • The British royals posed for photos with Swift and her boyfriend, Travis Kelce.
    • Footage showed William, who celebrated his 42nd birthday, dancing to "Shake It Off."

    The Prince of Wales is a certified Swiftie.

    William rang in his 42nd birthday on Friday at Taylor Swift's concert in London with his two eldest children, 10-year-old Prince George and 9-year-old Princess Charlotte.

    The British royals were among the massive crowd that arrived at Wembley Stadium, where Swift, 34, kicked off the European leg of The Eras Tour.

    The trio commemorated the night by posing for a selfie with Swift, whom they thanked in an Instagram post on the Prince and Princess of Wales' official account.

    "Thank you @taylorswift for a great evening!" the caption read on Saturday.

    Swift also shared an Instagram photo on Saturday featuring royal family members and her boyfriend, Travis Kelce. The group was all smiles in the picture.

    "Happy Bday M8! London shows are off to a splendid start," Swift's caption read.

    William's attendance at The Eras Tour didn't go unnoticed by Swifties, including one who shared a TikTok video of him dancing to "Shake It Off."

    Neither Catherine, Princess of Wales, nor six-year-old Prince Louis appeared at the concert. Kate, 42, made her first public appearance since her cancer diagnosis earlier this month at the Trooping the Colour Parade.

    Kate shared details about her recovery in an Instagram post one day before the parade, saying she's making "good progress" with her chemotherapy treatment.

    "I'm looking forward to attending The King's Birthday Parade this weekend with my family and hope to join a few public engagements over the summer, but equally knowing I am not out of the woods yet," the caption read. "I am learning how to be patient, especially with uncertainty. Taking each day as it comes, listening to my body, and allowing myself to take this much needed time to heal."

    Representatives for Kensington Palace, Swift, and Kelce did not immediately respond to a request for comment from Business Insider.

    Read the original article on Business Insider
  • 4 members of UK’s richest family convicted of exploiting servants at Swiss mansion

    Indian-Swiss billionaire family members Namrata Hinduja (L) and Ajay Hinduja (2ndR) arrive at the Geneva's courthouse with their lawyers Yael Hayat (C) and Robert Assael (R) at the opening day of their trial for human trafficking on January 15, 2024. The family has been accused of having employed several foreign servants without work authorization or residence permit, of having remunerated them in a terse manner by making them work without day off while retaining their passports and preventing them from leaving home. (Photo by GABRIEL MONNET / AFP) (Photo by GABRIEL MONNET/AFP via Getty Images)
    Namrata Hinduja and Ajay Hinduja arrive at the Geneva courthouse.

    • A Swiss court convicted four members of the UK's richest family of exploiting staff at their Geneva villa.
    • The family was given sentences ranging from four to four-and-a-half years.
    • More serious charges of human trafficking were dismissed.

    A Swiss court has convicted four members of the UK's richest family of exploiting staff at their Geneva mansion.

    The court found Prakash Hinduja, his wife Kamal, their son Ajay, and Ajay's wife Namrata guilty of exploitation and illegal employment, the BBC reported.

    They were given sentences ranging from four to four-and-a-half years, the report said.

    More serious charges of human trafficking were dismissed.

    The ruling followed claims by three workers at the villa that the family had taken their passports, paid them as little as $8 to work 18-hour days, and barred them from leaving the house, which is located in Geneva's wealthy Cologny neighborhood — a hot spot for wealthy buyers that has attracted the heirs to several fortunes, including Chanel and Peugeot, per Mansion Global.

    The workers, who were brought to Switzerland from India, also received little or no vacation time and slept in the basement, sometimes on a mattress on the floor, the Associated Press reported.

    Lawyers representing the family said they would appeal the decision, per the BBC.

    Robert Assael, a lawyer for the family, said outside the court: "I'm shocked. We're going to fight it to the bitter end."

    The Hinduja family

    The family has a net worth of £37.196 billion, which is just over $47 billion, making them the UK's wealthiest family, according to the Sunday Times Rich List 2024.

    Prakash and his three brothers lead a family conglomerate that has interests in finance, healthcare, real estate, media, energy, and information technology, among other areas. Their companies operate across 48 countries, per the report.

    The family owns the five-star luxury Raffles Hotel in London, where the cheapest room usually costs more than £1,000 (around $1,200) a night, and the most expensive, the Haldane suite, can cost £25,000 (roughly $31,600) a night.

    The family also owns a 25-bedroom mansion on Carlton House Terrace, an exclusive street overlooking St James's Park in central London.

    In 2015, Gopichand Hinduja, Prakash's brother, told the Times of London that the family did not spend more than one in five nights at the 67,000-square-foot home due to fears that it may bring them bad luck.

    "Indians are very sentimental, emotional and they believe in omens and good luck," Gopichand Hinduja said.

    "Although this has been built for the whole family, my wife and the family don't want to move here because they say that [our old house] has good luck . . . I can tell you the occupancy [here] is not more than 20 per cent," he added.

    Read the original article on Business Insider
  • McKinsey says it needs to reinvent itself and that AI is the answer: ‘It’s going to be most of what we do in the future’

    McKinsey & Company
    McKinsey & Company is betting big on AI.

    • Generative AI is a major focus at top consulting firms like McKinsey & Company.
    • McKinsey's AI arm QuantumBlack employs 2,000 data scientists and has five global R&D centers.
    • McKinsey's revenue hit $16 billion in 2023, driven by generative AI and strategic partnerships.

    Generative AI has become the leading conversation topic at the world's premiere consulting firms.

    "It's become a huge part of what the firm does, and I actually think it's going to be most of what we do in the future," Ben Ellencweig, a senior partner at McKinsey & Company, told Business Insider. "How do we actually inject gen AI and AI thinking into ways of doing business?"

    Ellencweig leads McKinsey's AI arm, QuantumBlack, which launched in 2015. It now employs some 2,000 data scientists, accounting for over 4% of its 45,000 employees. It also has research and development centers in five locations worldwide — India, Brazil, the UK, the United States, and Israel.

    The launch of ChatGPT marked an inflection point for McKinsey's work on generative AI. "Today, roughly, about 40% of the work we do is analytics-related, AI-related, and a lot of it is moving to Gen AI," Ellencweig said. He added that McKinsey has worked on roughly 400 generative AI projects in the last six months.

    Despite a broader cooldown in the consulting industry, McKinsey pulled in a record $16 billion in revenue in 2023 thanks to the promise of generative AI. While clients last year were caught up in experimenting with the new technology, this year, they're focused on building a larger ecosystem for it to thrive. But the technology itself is just a fraction of that, Ellencweig said. "You need to think about the change management. You need to talk about safe AI and responsible AI. You need to think about, 'How do you change workflows in the business?'"

    Last June, the firm also announced a partnership with AI startup Cohere, which focuses on building AI models for enterprises. And it's been a win for both. McKinsey's work helps the young startup "build trust" among more organizations, Cohere's founder and CEO Aidan Gomez told Business Insider. While McKinsey benefits from Cohere's commitment to innovation — and responsible development.

    It's not clear how the world will change amid the rapid advances in AI. But the firm's thesis is that the technology will be ubiquitous. "Gen AI is going to become part of every product," Ellencweig said. "It's going to be injected in everything we do in life way beyond a smart bot that helps navigate a website or a product."

    Read the original article on Business Insider