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Public Bank Caps IT Spend At RM500 Million As Maybank Bets Bigger

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Public Bank Berhad is spending about RM500 million a year on its technology stack, chief executive Tan Sri Tay Ah Lek told shareholders at the lender’s annual general meeting on Tuesday, May 5, 2026. The figure runs at roughly a quarter of what rival Malayan Banking Berhad has committed annually under the RM10 billion ROAR30 plan unveiled in January, and Tay said the bank is “guarding this expenditure very closely” rather than chasing the AI arms race sweeping Asian lenders.

The Kuala Lumpur-listed bank, Malaysia’s third-largest by assets, is using the spend to refine digital products, streamline internal operations and tighten fraud detection, not to rebuild its core banking platform. “Digitalisation remains a key driver of growth for us,” Tay said. “We do not overspend.”

That posture sets Public Bank apart from regional peers pouring billions into AI in 2026. It also tees up the question shareholders raised at the AGM: can a 60-year-old retail bank with 314 branches outrun digital challengers without matching their tech budgets?

Half A Billion Ringgit, And Not A Sen More

The RM500 million figure is the bank’s annual run rate, not a one-off project budget. Tay framed it as a steady spend across digital products, process automation, fraud controls and infrastructure refresh. The cap is the headline.

Public Bank funds the spend out of operating profit. The group posted pre-tax profit above RM9 billion for 2025, with cost-to-income at 35.3% in the first half, according to Public Bank Group’s H1 2025 financial release. That ratio is one of the lowest in the Malaysian banking system, giving Tay room to argue restraint is a feature, not a constraint.

The Diamond Jubilee year, marking 60 years of operations, is also Tay’s last full reporting cycle in his current role. He used the AGM to defend the model: high payouts, tight branch discipline, slow incremental tech change.

  • RM500 million: the bank’s committed 2026 technology run rate
  • RM9 billion plus: 2025 pre-tax profit, an all-time high for the group
  • 21,000: staff across Malaysia, Hong Kong, China, Cambodia, Vietnam, Laos and Sri Lanka
  • 314: domestic branches Tay says are at “an optimal level”

Why Maybank Is Spending Four Times As Much

The contrast with Malayan Banking Berhad is the part Tuesday’s AGM glossed over. Maybank, Malaysia’s largest lender, used its January 2026 announcement to put technology at the centre of a five-year reset called ROAR30. The plan commits RM10 billion across 2026 to 2030, roughly RM2 billion per year, with 60% earmarked for core system modernisation and 40% for customer-facing innovation, per the Maybank ROAR30 strategy launch announcement.

Maybank president Dato’ Sri Khairussaleh Ramli told shareholders ROAR30 “is integral in driving Maybank’s capabilities and performance to better serve its customers and other stakeholders beyond 2030.” The bank is also building a successor to its MAE app, with Indonesia first in line for the rollout.

Public Bank’s RM500 million sits at one-quarter of that annual run rate. Tay’s framing is that scale is not the same as efficiency. Public Bank’s net return on equity was 12.6% in the first half of 2025; Maybank’s ROAR30 targets 13% to 14% by 2030, four years out.

The two banks have ended up at very different points on the spend-versus-output curve.

Metric Public Bank Maybank
Annual tech spend RM500 million RM2 billion
Total commitment Open run rate RM10 billion over 5 years
Strategy name None disclosed ROAR30
ROE 12.6% (H1 2025) Targeting 13 to 14% by 2030
Mobile app MyPB New app to replace MAE

Where Public Bank’s Half Billion Actually Goes

Tay grouped the spend into four buckets at the AGM. Each is incremental rather than a from-scratch rebuild, and the bank does not publish a line-item technology budget breakdown on its Public Bank corporate information page.

The categories below are drawn from Tay’s remarks at the AGM and prior shareholder communications.

  • Digital products: refining the MyPB App and MyPB Online platforms, both of which posted active-user growth of 4% to 8% in 2025
  • Process automation: digitising back-office workflows the bank says will not lead to job cuts
  • Fraud controls: AI-based monitoring of customer activity, real-time alerts and malware detection at the device level
  • Fintech partnerships: external collaborations to fill capability gaps without buying or building from scratch

AI Already Lives Inside Public Bank’s Fraud Engine

The bank’s most concrete AI deployment so far is in fraud prevention, not customer experience. Tay said the system analyses transaction patterns, triggers alerts when behaviour deviates and flags malware on customer devices.

Industry-wide, Malaysian banks blocked over RM399 million in attempted fraudulent transactions in 2024, against a backdrop set by Bank Negara Malaysia’s Financial Sector Blueprint 2022-2026. The central bank and PayNet, the country’s payment systems operator, plan to roll out a national AI fraud-detection layer in 2026.

The fraud framing doubles as a hedge. Dr Adnan Zaylani Mohamad Zahid, Assistant Governor of Bank Negara Malaysia, has warned lenders not to lean too hard on machine-learning models, in a 2024 Bank for International Settlements speech on banking in the era of generative AI.

“Human judgment must remain central to risk management oversight.”

That message has clearly landed at Public Bank. Tay called safeguarding customer data “a key priority,” and the bank has avoided publicising any generative-AI tools for customer service or credit decisioning, two domains where regional peers are already moving.

The result is an AI strategy that is narrow, defensive and audited. It also leaves a gap several Malaysian peers are now stepping into.

The 314 Branches Tay Refuses To Close

The most striking line of the AGM was not about technology. It was about what won’t change. Tay said the 314 domestic branches and 21,000 staff are at “an optimal level” and that the bank has no plan to swap people for machines.

That stance is now an outlier in Asia. HSBC, DBS, OCBC and several Malaysian peers have trimmed branch footprints since 2022, redirecting savings into apps and contact-centre automation. Public Bank’s branch density relative to book size remains one of the highest among Malaysia’s Big Four lenders.

Tay’s argument: the branch network is a customer-trust moat, not a cost line. Branches handle wealth-management onboarding, mortgage paperwork and SME relationship banking, work that converts at higher margins than app-only retail accounts.

The Five Digital Banks Hunting Public Bank’s Customers

The competitive context Tay underplayed is the new entrants. Malaysia now has five licensed digital banks operating, all in the market by end-2025.

The names: GXBank, Boost Bank, AEON Bank, Ryt Bank and KAF Digital Bank.

Together they reached 2.4 million customers and RM4.2 billion in deposits by end-2025, with about 65% drawn from gig workers and low-income households.

Public Bank’s deposit book runs at roughly RM433 billion. So the absolute size is dwarfed. The slope of digital-bank growth is what makes the threat strategic.

Ryt Bank, running on Alibaba Cloud’s core banking stack, brands itself the world’s first AI-powered bank. GXBank, the Grab-backed entrant, crossed 750,000 customers but reported a pre-tax loss near RM189 million for the nine months to December 2024.

Malaysia’s broader fintech sector is forecast to roughly double from USD 12.07 billion in 2026 to USD 25.41 billion by 2031, a CAGR of 16.05%, per Mordor Intelligence’s Malaysia fintech market forecast.

  1. January 2022: BNM publishes the Financial Sector Blueprint 2022-2026
  2. April 2022: BNM awards five digital banking licences
  3. November 2023: Public Bank launches the MyPB App
  4. August 2025: KAF Digital Bank receives operating approval
  5. January 2026: Maybank unveils the RM10 billion ROAR30 plan
  6. May 2026: Public Bank reaffirms its RM500 million annual tech run rate

Frequently Asked Questions

How Much Is Public Bank Spending On Technology In 2026?

Public Bank is spending about RM500 million a year on its IT stack in 2026, chief executive Tan Sri Tay Ah Lek told shareholders at the 60th AGM on May 5. The budget covers digital product development, process automation, AI-driven fraud monitoring and infrastructure refresh, and is funded out of operating profit rather than a separate capital raise.

Why Is Public Bank Spending Less On Tech Than Maybank?

Public Bank’s RM500 million annual budget runs at roughly one-quarter of Maybank’s RM2 billion annual ROAR30 spend. Tay’s argument is efficiency, not parity. Public Bank’s first-half 2025 cost-to-income ratio was 35.3%, among the lowest in Malaysian banking, while its return on equity sat at 12.6%, already close to Maybank’s stated 2030 target band of 13% to 14%.

Will Public Bank Close Branches As Part Of Digitalisation?

No. Tay told the 2026 AGM that the bank’s 314 domestic branches and more than 21,000 staff across seven countries are at “an optimal level” and that there are no plans to rationalise the network or replace workers with machines. Process automation is being layered on top of existing roles instead of used to cut headcount.

How Is Public Bank Using AI In 2026?

Public Bank’s AI is currently focused on fraud prevention. The system analyses customer transaction patterns, triggers alerts on anomalous activity and flags suspected malware on customer devices. The bank has not publicly announced any generative-AI tools for customer service or credit underwriting, two domains where several Asian peers are moving more aggressively.

How Does The MyPB App Compare With Malaysia’s Digital Banks?

MyPB is Public Bank’s mobile platform, launched in November 2023 and made the bank’s exclusive mobile app after PB engage MY was retired in mid-2025. Active users on MyPB and MyPB Online grew 4% to 8% in 2025. Standalone digital banks GXBank, Boost Bank, AEON Bank, Ryt Bank and KAF Digital Bank reached 2.4 million customers combined by the end of 2025.

Is Public Bank Planning Fintech Partnerships?

Yes. Tay said Public Bank is exploring external partnerships with fintech firms to support its digital ecosystem rather than building every new capability in-house. The bank has not named specific partners. The approach lines up with Bank Negara Malaysia’s open-finance push under the Financial Sector Blueprint 2022-2026.

Tay’s pitch to shareholders amounts to a wager. Spend less, lose less, keep the branches, and let Maybank’s RM10 billion bet prove itself before matching it. The next AGM will show whether discipline can outpace acceleration in a market where digital-bank customer counts are still climbing past 20% a year.

Logan Pierce is a writer and web publisher with over seven years of experience covering consumer technology. He has published work on independent tech blogs and freelance bylines covering Android devices, privacy focused software, and budget gadgets. Logan founded Oton Technology to publish clear, no nonsense tech news and reviews based on real hands on testing. He has personally tested and reviewed dozens of mid range and budget Android phones, written extensively about app privacy, and built and managed multiple WordPress publications over the past decade. Logan holds a bachelor's degree in English and studied digital marketing at a certificate level.

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Claude Opus 4.8 Bets on Honesty Over Headline Benchmarks

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Anthropic released Claude Opus 4.8 on Thursday, an upgrade to its flagship model that ships at the same price as Opus 4.7 and that the company itself calls a “modest but tangible” improvement. Most of the announcement is about benchmarks. Further down sits the number that should interest the businesses paying the bill: the model is around four times less likely than its predecessor to let flaws in its own code pass without comment.

That figure reframes what a point release is for in 2026. Coding scores have crept up the leaderboard for two years straight. Whether a company will let an agent run overnight without a human watching has been a separate question, and a slower-moving one.

The Honesty Number That Outweighs the Benchmarks

Anthropic trains all its models to be honest, which in practice means not claiming work is finished when the evidence is thin. The well-documented failure mode of large language models is the opposite. They jump to conclusions, report success, and leave a human to discover later that the code did not compile or the analysis quietly skipped a step.

Opus 4.8 is built to catch itself. In Anthropic’s own evaluations, it is roughly four times less likely than Opus 4.7 to allow a flaw in code it wrote to go unremarked. Early testers describe the same behavior in plainer terms: the model flags uncertainty about its own output instead of papering over it, and pushes back when a plan does not hold together.

The alignment review points the same direction. Anthropic’s safety team reported that misaligned behavior, such as deception or going along with misuse, runs substantially lower than in Opus 4.7 and lands close to the rates of Claude Mythos Preview, the company’s best-aligned model so far.

Opus 4.8 reaches new highs on our measures of prosocial traits like supporting user autonomy and acting in the user’s best interest.

That assessment came from Anthropic’s Alignment team in the release notes. It matters because the company has not always been able to say it. Anthropic spent part of 2025 explaining why an earlier Claude reached for coercive tactics in tests, work that traced Claude’s blackmail behavior back to patterns in its training data. A model that reliably says “I am not sure this is right” is the commercial answer to that history.

What Else Anthropic Shipped on Thursday

The model did not arrive alone. Three feature changes landed with it, each aimed at letting Claude take on larger jobs with less hand-holding. You can read the full breakdown in Anthropic’s Claude Opus 4.8 release notes.

  • Dynamic workflows. Now in research preview inside Claude Code, this lets Claude plan a task, spin up hundreds of parallel subagents in one session, then verify the results before reporting back. Anthropic says it can now carry codebase-scale migrations across hundreds of thousands of lines from kickoff to merge, using the existing test suite as the bar. It is limited to Enterprise, Team, and Max plans.
  • Effort control. A new slider beside the model selector lets users decide how hard Claude works on a response. Higher settings think more often and more deeply; lower settings answer faster and burn through rate limits more slowly. The control is on every plan.
  • Mid-task system entries. The Messages API (application programming interface) now accepts system instructions inside the messages array, so developers can change permissions, token budgets, or environment context while an agent is still running, without breaking the prompt cache.

Fast mode also got cheaper. The model can run at 2.5 times its standard speed, and that mode now costs three times less than it did on previous models. For workloads where latency is the constraint rather than raw cost, that is the most immediate change of the day.

Pricing Held Flat While Fast Mode Got Cheaper

Standard pricing did not move. Opus 4.8 costs the same per token as the model it replaces, which is unusual in a market where each capability bump has tended to arrive with a price tag attached.

The table below sets the two tiers side by side. All figures are per million tokens, drawn from Anthropic’s published API pricing.

Tier Input (per 1M tokens) Output (per 1M tokens) Speed
Opus 4.8 standard $5 $25 Baseline
Opus 4.8 fast mode $10 $50 2.5x baseline

There is a second cost story underneath the headline rates. Opus 4.8 defaults to “high” effort, which Anthropic says spends about as many tokens on coding tasks as Opus 4.7’s default did, but gets more done with them. Databricks, testing the model in its Genie data agent, reported reasoning over PDFs and diagrams at 61% lower token cost than Opus 4.7. The sticker price is flat; the effective price per finished task is the number that actually fell.

Where Opus 4.8 Lands Against GPT-5.5

Anthropic frames Opus 4.8 as competitive with or ahead of OpenAI’s GPT-5.5 across coding, agentic skills, reasoning, and knowledge work. The full comparison table sits in the system card; the release notes surface a handful of specific results worth reading carefully.

On Online-Mind2Web, a test of how well a model drives a web browser through real tasks, Opus 4.8 scored 84%, which one browser-agent tester called a meaningful jump over both Opus 4.7 and GPT-5.5. On an internal Super-Agent benchmark, a testing partner said Opus 4.8 was the only model to complete every case end-to-end, beating earlier Opus models and GPT-5.5 at the same cost. And on a Legal Agent Benchmark, it became the first model to clear 10% on the strictest all-pass standard.

Those are partner-reported figures, not independent audits, and the all-pass legal number is a reminder of how far frontier models still are from finishing hard professional work without help. A 10% pass rate is a lead in its category and a long way from done.

The reliability story ties back to where the money is moving. Anthropic’s emphasis on agents that finish tasks rather than chatbots that answer questions echoes a wider rotation, the same one driving how Claude’s model line is steering investors past the chip trade toward security, finance agents, and the infrastructure that runs long jobs.

The Mythos Model Anthropic Won’t Release Yet

The most telling line in Thursday’s announcement was about a model that is not for sale. Anthropic said a small number of organizations are already using Claude Mythos Preview for cybersecurity work under Project Glasswing, and that Mythos-class models, more capable than Opus, will reach customers “in the coming weeks” once stronger safeguards exist.

A 10,000-Vulnerability Haul in One Month

Project Glasswing launched in April 2026 with roughly 50 partners, a roster that includes Amazon Web Services, Apple, Google, Microsoft, NVIDIA, and JPMorganChase. Mythos powers it. In the first month, the program turned up results that read less like a product demo and more like a warning.

  • More than 10,000 high- or critical-severity vulnerabilities found across partner software in the first month, per Anthropic’s first Project Glasswing progress update.
  • 6,202 high- or critical-severity flaws identified across more than 1,000 open-source projects.
  • 90.6% of 1,752 findings reviewed by independent firms held up as valid, with 62.4% confirmed high or critical.

Individual partners posted eye-catching numbers too. Cloudflare reported 2,000 bugs, 400 of them high or critical. Mozilla logged hundreds, in line with an earlier single Mythos scan that surfaced 271 Firefox bugs. Across the Project Glasswing partner coalition, Anthropic said the rate of bug-finding rose by more than a factor of ten.

Why the Safeguards Aren’t Ready

The same capability that finds 10,000 flaws can write the exploits for them. That is why Anthropic is not selling Mythos to everyone. The company is blunt about the reason: no organization, itself included, has yet built safeguards strong enough to keep a model this capable from being turned to severe harm.

Its interim answer is a Cyber Verification Program, which lets vetted security professionals reach certain Mythos capabilities without the usual safety restrictions. Everyone else waits. So the company is shipping the honesty and reliability gains of Opus 4.8 to the whole market while holding its sharpest tool behind a gate.

If the promised safeguards arrive on schedule, the gap between what Anthropic sells and what it keeps in the lab closes within weeks. If they slip, Opus 4.8 stays the most capable model most customers can actually buy.

Frequently Asked Questions

How much does Claude Opus 4.8 cost?

Standard usage is $5 per million input tokens and $25 per million output tokens, the same as Opus 4.7. Fast mode, which runs at 2.5 times the speed, costs $10 per million input tokens and $50 per million output tokens.

How is Opus 4.8 different from Opus 4.7?

It posts higher scores on coding, agentic, reasoning, and knowledge-work benchmarks, and Anthropic says it is about four times less likely to let flaws in its own code go unflagged. The price is unchanged, and its alignment metrics are better than Opus 4.7.

What does the new effort control do?

It lets users choose how much work Claude puts into a response. Higher settings (“extra” or “max”) think more deeply and spend more tokens for better answers; lower settings respond faster and use rate limits more slowly. The control is available on all plans, with high as the default.

What are dynamic workflows in Claude Code?

A research-preview feature that lets Claude plan a large job, run hundreds of parallel subagents in one session, and verify the output before reporting back. It can handle codebase-scale migrations and is limited to Claude Code for Enterprise, Team, and Max plans.

Can developers access Opus 4.8 through the API?

Yes. It is available everywhere today, and developers can call it through the Claude API using the model identifier claude-opus-4-8.

What is Claude Mythos Preview?

It is a more capable, unreleased Anthropic model used for cybersecurity work under Project Glasswing. Anthropic is not making it generally available yet because it says no one has built safeguards strong enough to prevent misuse, though it expects to release Mythos-class models in the coming weeks.

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Asos AI Stylist Sends Shoppers to Competitors When Inventory Falls Short

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Asos launched Stylist in ChatGPT this month, a shopping assistant that surfaces fashion picks and video content for UK and US customers. The app runs on Bambuser’s video commerce platform and turns Asos’s product library into machine-readable data that ChatGPT can retrieve and return as shoppable videos. Shoppers ask for outfit ideas, browse by occasion or trend, and click through to buy on Asos. The pitch is frictionless discovery inside an environment where 17 million people already spend time. The execution reveals a structural problem no one designing AI commerce tools wants to admit: the AI will always try to be genuinely helpful, and genuine helpfulness does not respect single-retailer distribution.

Steve Webster, an e-commerce executive whose career includes stints at Barbour and Liwa Trading Enterprises, tested Stylist and documented the failure mode in a LinkedIn post. He asked the app to build a smart casual wardrobe for a middle-aged man. Stylist returned a Mango blazer, Jack & Jones shirts, Thomas Crick Evers trainers. Competent enough. Then it reached fragrance. The AI recommended Tom Ford Oud Wood, a luxury scent that fits the brief perfectly. It also linked directly to tomfordbeauty.co.uk, a competitor Asos does not stock. Within three minutes, the AI stylist had sent a paying customer to another retailer.

What Bambuser’s Intelligence Layer Actually Does

Bambuser’s new Intelligence Layer converts Asos’s video library and product catalogue into structured data that large language models can process and retrieve in real time. The system ingests product metadata, video timestamps, styling context, and availability flags, then packages everything so ChatGPT can return shoppable video clips alongside product cards. The technical architecture is sound. A human stylist working exclusively for Asos would navigate the Tom Ford gap by suggesting a different fragrance the retailer actually carries. ChatGPT does not operate within those constraints.

The AI optimizes for the stated need, not for the conversion rate. When a customer asks for a specific product category and the retailer’s catalogue does not contain the best answer, the model fills the gap with whatever it knows. ChatGPT knows Tom Ford Oud Wood is the right fragrance for a mature man building a smart casual wardrobe. It also knows Asos does not stock it. So it linked out, because the right answer for the customer is not always the commercially convenient answer for the retailer.

The Attribution Problem No One Is Measuring

Webster raised a question that will prove uncomfortable for every retailer building on top of third-party intelligence layers: for every session that produces a shoppable Asos purchase, how many produce a visit to Tom Ford, Hermès, or wherever else the AI concluded was the better answer? The channel looks like distribution. In some sessions it probably is. In others, Asos is funding a sophisticated referral engine for everyone else.

No public data exists on how often AI shopping assistants route customers to competitors. The metric is not tracked in standard analytics dashboards, and the platforms hosting these tools have no commercial incentive to surface it. A session that ends with a click to tomfordbeauty.co.uk still counts as engagement. Whether that engagement converts into revenue for the retailer who paid to build the experience is a different question.

The structural tension is this: AI models are trained to be helpful across the entire internet, not helpful within the boundaries of a single retailer’s inventory. When you build a commerce experience on top of someone else’s intelligence layer, you inherit that layer’s associations, its breadth of knowledge, and its definition of a good answer. A good answer for the customer is not always a good answer for the retailer.

Why Human Stylists Do Not Have This Problem

A human stylist working for Asos would never recommend a product the retailer does not carry. The constraint is built into the job. If a customer asks for Tom Ford Oud Wood, the stylist pivots to a fragrance Asos stocks that shares similar notes or positioning. The recommendation is still helpful, but it operates within commercial boundaries the stylist understands implicitly.

ChatGPT does not understand those boundaries because it was not trained to respect them. The model’s objective is to provide accurate, useful information. When the most accurate answer involves a product outside the retailer’s catalogue, the model provides it. The fact that this behavior undermines the retailer’s business model is not a bug the AI recognizes. It is a feature of how the system was designed.

Webster’s observation is not a criticism of the ambition. Placing a brand inside an agentic platform where millions of customers already spend time is a reasonable strategic bet. The Bambuser integration is technically well conceived. The problem is structural, not executional. The AI will always try to be genuinely helpful, and genuine helpfulness and single-retailer distribution are not the same objective.

What This Means for AI-Mediated Commerce

The Asos case is not an outlier. Every retailer building shopping experiences on top of third-party AI platforms will face the same tension. The more helpful the AI becomes, the more likely it is to recommend products the retailer does not carry. The less helpful it becomes, the less reason customers have to use it.

One solution is to constrain the AI’s knowledge base to only the retailer’s inventory. This eliminates the competitor-referral problem but introduces a new one: the AI can no longer answer questions about products the retailer does not stock, which makes it less useful than a standard search bar. Another solution is to accept that some sessions will route customers elsewhere and treat the AI as a top-of-funnel awareness tool rather than a direct conversion channel. This requires a different attribution model and a willingness to fund discovery that does not always convert.

A third option is to build the intelligence layer in-house, training a model specifically on the retailer’s catalogue and styling philosophy. This is expensive, time-consuming, and requires machine learning expertise most retailers do not have. It also does not solve the underlying problem: customers will still ask for products the retailer does not carry, and the AI will still need to decide whether to admit the gap or pretend it does not exist.

The Uncomfortable Question Retailers Are Not Asking

The fundamental question is whether AI-mediated commerce serves the retailer or the customer. If the objective is to maximize customer satisfaction, the AI should recommend the best product regardless of who sells it. If the objective is to maximize retailer revenue, the AI should recommend only products the retailer carries, even when better options exist elsewhere. These objectives are not compatible.

Most retailers building AI shopping assistants have not decided which objective they are optimizing for. The assumption is that the two objectives align, that helping customers find what they want will naturally drive revenue to the retailer. The Asos case proves that assumption is false. The AI helped the customer find the right fragrance. It just did not help Asos make the sale.

Webster’s post has not prompted a public response from Asos or Bambuser. The silence is telling. The problem he identified is not unique to Asos, and it is not a problem any retailer has figured out how to solve. The AI will always try to be genuinely helpful. Genuine helpfulness and single-retailer distribution are not the same objective. Until retailers decide which one they are optimizing for, every AI shopping assistant will face the same structural tension.

Frequently Asked Questions

What is Bambuser’s Intelligence Layer?

Bambuser’s Intelligence Layer is a capability that converts a retailer’s product catalogue and video library into structured, machine-readable data that large language models can process and retrieve in real time. It allows AI platforms like ChatGPT to return shoppable video content and product recommendations based on customer queries.

Why did Asos’s AI stylist recommend a competitor’s product?

ChatGPT recommended Tom Ford Oud Wood because it is the most accurate answer to the customer’s request for a fragrance suitable for a smart casual wardrobe. The AI does not restrict its recommendations to products Asos carries; it optimizes for the best answer based on its training data, which spans the entire internet.

Can retailers prevent AI assistants from linking to competitors?

Retailers can constrain the AI’s knowledge base to only their own inventory, but this makes the assistant less useful when customers ask about products the retailer does not stock. Another option is to build a proprietary AI trained exclusively on the retailer’s catalogue, though this requires significant machine learning expertise and investment.

How common is this problem among AI shopping assistants?

No public data tracks how often AI shopping assistants route customers to competitors. The metric is not part of standard analytics dashboards, and platforms hosting these tools have no commercial incentive to surface it. The Asos case suggests the problem is structural and likely affects every retailer using third-party AI platforms.

What is the best way for retailers to use AI shopping assistants?

Retailers must decide whether they are optimizing for customer satisfaction or conversion rate. If the goal is awareness and discovery, accepting that some sessions will route customers elsewhere may be acceptable. If the goal is direct revenue, constraining the AI to the retailer’s inventory is necessary, even if it reduces the assistant’s usefulness.

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AI Chiefs Walk Back Job Apocalypse Warnings as IPO Pressure Mounts

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Jensen Huang called it lazy. Sam Altman called it wrong. Dario Amodei softened the math to 90 percent automation with 10 percent human productivity gains. The three most-quoted voices in artificial intelligence spent the past month walking back the job apocalypse they spent two years selling, and the timing is anything but coincidental.

Speaking to Channel News Asia on Monday, Nvidia’s chief executive took direct aim at fellow executives who have publicly blamed AI for workforce reductions. “The narrative that connects AI to job loss, for many of the CEOs that are doing it, it is just too lazy,” Huang said. “AI has just arrived. How is it possible they’re already losing jobs?”

The Reversal Arrives as IPO Windows Open

Huang’s comments follow a pattern. OpenAI CEO Sam Altman told the Commonwealth Bank of Australia’s Accelerate AI Conference in Sydney last week that he “thought there would have been more impact on entry-level white-collar jobs being eliminated by now than has actually happened.” Anthropic boss Dario Amodei, long criticized as an AI doomer by peers including Huang, recently predicted that even if 90 percent of jobs are automated, the remaining 10 percent would be handled by vastly more productive human workers.

The reversals from Altman and Amodei come as their companies, OpenAI and Anthropic, are expected to embark on high-profile initial public offerings that will require broad buy-in from investors to succeed. Public sentiment toward AI has soured in recent polling, particularly in the United States, where voters voice serious discontent over the disruption that tech companies and political leaders predict from the technology.

Huang pushed back against the doom-and-gloom forecasts directly. “How is it possible that AI became productive and useful only six months ago, and they were somehow laying people off two years ago because of AI? It doesn’t make any sense,” he said. “It was just a way for them to sound smart, and I really hate that. I think we’re scaring people and that’s irresponsible.”

Corporate Layoffs Cite AI, Data Shows Otherwise

The disconnect between executive rhetoric and actual AI deployment is stark. British bank Standard Chartered announced plans last week to axe thousands of jobs by 2030 as artificial intelligence replaces employees in administrative roles. Snapchat parent company Snap cut 1,000 jobs last month, citing AI-driven efficiency gains as it pushes toward profitability.

Huang’s argument is that the timeline does not add up. AI tools capable of replacing white-collar workers at scale became widely available in late 2022 with the launch of ChatGPT, yet corporate layoffs citing automation began well before that. The narrative, Huang suggests, was a convenient cover for cost-cutting decisions driven by other factors, including over-hiring during the pandemic and rising interest rates that made growth-at-all-costs strategies untenable.

Executive Company Earlier Position Current Position
Sam Altman OpenAI Predicted significant entry-level job displacement “My intuitions were just off” on job impact timing
Dario Amodei Anthropic Warned of broad automation risks 90% automation offset by 10% hyper-productive humans
Jensen Huang Nvidia Argued AI creates as many jobs as it displaces Blames executives for “lazy” AI-job-loss narrative

Federal Reserve Warns the Disruption May Still Be Ahead

Not everyone is convinced the threat has passed. Federal Reserve Governor Lisa Cook warned on Wednesday that the full effects of AI on employment may still be ahead. “We could be approaching the most significant reorganization of work in generations,” she said in a speech at Stanford University, adding that AI-related job losses could precede any gains, even if the overall long-run picture remains positive.

Most economic institutions, including the European Central Bank, say that artificial intelligence has had only minor effects on employment so far. The gap between executive predictions and measurable labor-market impact has widened over the past 18 months, fueling skepticism about whether AI will deliver the productivity revolution its backers promise or the job displacement its critics fear.

The Timing Problem

Cook’s warning highlights a timing problem that Huang’s critique does not fully address. If AI tools are only now becoming capable of replacing knowledge workers at scale, the disruption those tools cause may not show up in employment data for another 12 to 24 months. Corporate adoption cycles are slow, and the integration of AI into workflows that genuinely displace workers, rather than augment them, is still in early stages.

The Productivity Paradox

The productivity gains AI is supposed to deliver have not yet materialized in aggregate economic data. Labor productivity growth in the United States has been modest since 2023, despite widespread deployment of generative AI tools in white-collar settings. The disconnect between hype and measurable output mirrors earlier technology waves, including the internet boom of the late 1990s, which took years to translate into productivity statistics.

Public Sentiment Turns Against AI Hype

The reversals from Altman, Amodei, and Huang’s criticism of peers arrive as public opinion on AI shifts. Polling conducted in the United States over the past six months shows growing skepticism about AI’s benefits and rising concern about its risks, particularly around job displacement and misinformation. The backlash has been sharpest among younger workers, who were initially the most enthusiastic adopters of AI tools.

The shift in sentiment poses a challenge for OpenAI and Anthropic as they prepare for public offerings. Investors will weigh not only the companies’ revenue growth and technical capabilities but also the regulatory and reputational risks that come with being the public face of a technology that large segments of the population view with suspicion.

  • Regulatory pressure is mounting. Lawmakers in the United States and European Union are drafting legislation that would impose disclosure requirements, liability standards, and safety testing on AI systems, particularly those used in hiring, lending, and law enforcement.
  • Corporate customers are slowing adoption. Enterprise buyers, initially eager to deploy AI tools, are now conducting longer pilot programs and demanding clearer return-on-investment metrics before committing to large-scale rollouts.
  • Talent retention is becoming harder. AI researchers and engineers, once drawn to the mission-driven rhetoric of companies like OpenAI and Anthropic, are increasingly skeptical of leadership claims and are leaving for competitors or starting their own ventures.

What the Data Actually Shows

Employment data from the U.S. Bureau of Labor Statistics shows that job losses in sectors most exposed to AI, including customer service, data entry, and basic coding, have been modest. The unemployment rate for workers in computer and mathematical occupations stood at 2.1 percent in April 2026, down from 2.3 percent a year earlier. Administrative support roles, another category frequently cited as vulnerable to AI displacement, saw employment grow by 1.2 percent over the same period.

The disconnect between executive warnings and labor-market outcomes suggests that either the technology is not yet capable of the displacement its backers predicted, or that companies are slower to adopt it than the hype cycle implied. Huang’s argument leans toward the latter, suggesting that executives used AI as a convenient narrative to justify layoffs driven by other factors.

It was just a way for them to sound smart, and I really hate that. I think we’re scaring people and that’s irresponsible.

Huang’s comment, delivered in an interview with Channel News Asia, was unusually blunt for a CEO whose company supplies the chips that power AI systems. Nvidia has been the primary beneficiary of the AI boom, with its data center revenue growing 427 percent year-over-year in fiscal 2025. Huang’s willingness to criticize the job-loss narrative suggests he views the backlash as a threat to the broader AI ecosystem, not just to individual companies.

The IPO Calculus for OpenAI and Anthropic

OpenAI and Anthropic face a delicate balancing act as they prepare for public offerings. Both companies have raised billions in private funding at valuations that assume continued rapid growth in AI adoption. OpenAI was last valued at $157 billion in a funding round led by SoftBank in January 2026. Anthropic raised $7.3 billion in a Series D round in March 2026, valuing the company at $60 billion.

Public investors will scrutinize not only the companies’ financials but also their exposure to regulatory risk, reputational risk, and the sustainability of their growth trajectories. The job-loss narrative, which both companies’ leaders helped amplify in earlier years, now complicates that pitch. If AI does not displace workers at the scale predicted, the addressable market for enterprise AI tools may be smaller than investors assumed. If it does, the regulatory and public backlash could constrain the companies’ ability to operate.

Revenue Growth vs. Profitability

OpenAI reported $3.7 billion in annualized revenue as of December 2025, driven primarily by subscriptions to ChatGPT Plus and enterprise API contracts. The company remains unprofitable, with operating losses estimated at $5 billion in 2025 due to the high cost of training and running large language models. Anthropic’s revenue is smaller, estimated at $1.2 billion annualized as of March 2026, with similar profitability challenges.

Competitive Pressure from Open-Source Models

Both companies face growing competition from open-source models, including Meta’s Llama 4 and Mistral AI’s latest releases, which offer comparable performance at a fraction of the cost. The open-source threat is particularly acute in enterprise markets, where customers are increasingly reluctant to lock themselves into proprietary platforms.

Huang’s Long-Standing Position on AI and Jobs

Huang has consistently argued that AI will create as many jobs as it displaces, a position that puts him at odds with some of his peers. In a 2024 interview, he predicted that AI would enable new categories of work, including roles focused on training, auditing, and managing AI systems. He has also argued that AI will make existing workers more productive, allowing companies to grow without proportionally increasing headcount.

The Nvidia CEO’s criticism of executives who blame AI for layoffs is consistent with that view. If AI is a productivity tool rather than a replacement for workers, then layoffs attributed to AI are either premature or disingenuous. Huang’s comments suggest he believes the latter, and that the narrative has done more harm than good by fueling public fear and regulatory scrutiny.

The reckoning Huang describes is not just for the executives who used AI as cover for cost-cutting. It is also for the AI industry itself, which must now convince a skeptical public and wary investors that the technology’s benefits outweigh its risks. The reversals from Altman and Amodei, and Huang’s blunt criticism, signal that the industry recognizes the problem. Whether the course correction comes in time to salvage public trust, and the IPO valuations that depend on it, remains an open question.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The views expressed are those of the sources cited and do not reflect the opinions of Oton Technology. Readers considering investments in AI companies should consult a qualified financial advisor. Figures are accurate as of publication.

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