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Chips get political, chatbots stall wages, UAE kids code early

Pivot 5 is the must-read daily AI briefing for 500,000+ CEOs and business leaders who need signal, not noise.

With Disney reporting earnings this week, we asked AI to generate Pixar-inspired illustrations for today’s top headlines.

AI CHIPS

1. Trump Moves to Scrap Biden’s Global AI Chip Export Framework

  • The Trump administration will repeal the “AI diffusion rule” eight days before it takes effect, halting a three-tier system that limited Nvidia and other U.S. chipmakers from selling advanced hardware to most of the world. Commerce officials call the Biden-era rule overly bureaucratic and will maintain existing China-focused controls while they draft a replacement policy.

  • The emerging approach shifts from blanket categories to bilateral deals with countries such as the UAE and Saudi Arabia and keeps pressure on diversion hotspots like Malaysia and Thailand. News of the reversal sent Nvidia shares up 3.1 percent and lifted the Philadelphia Semiconductor Index 1.7 percent.

  • By swapping a rigid framework for negotiable access, Washington signals a transactional era in chip geopolitics that could let deep-pocketed allies buy their way into U.S. technology and leave supply chains guessing what rule comes next.

Read more here

AI WORK

2. Landmark Study Finds AI Chatbots Leaving Wages and Hours Unchanged

  • Economists analysed data on 25,000 workers and 7,000 employers and found “precise zeros” for the effect of AI chatbots on pay or working hours. Adoption is widespread—most firms encourage use and run in-house models—but the labour market barely notices.

  • Productivity gains average just 3 percent and only a sliver of that flows to workers, explaining the muted earnings impact. The research rules out effects larger than one percent across any occupation.

  • The findings puncture the chatbot-revolution narrative, showing that headline-grabbing tools create more buzz than economic bite—at least for now. For CEOs, hype without hard numbers is a warning sign.

Read more here

AI EDUCATION

3. UAE Makes AI a Mandatory Subject from Kindergarten to Grade 12

  • The UAE approved a nationwide AI curriculum rolling out in the 2025-26 school year, covering students from age four through high school. Sheikh Mohammed bin Rashid Al Maktoum announced the move, calling it vital preparation for a “time unlike ours.”

  • Lessons span seven pillars—foundations, data, algorithms, software, real-world applications, policies, and ethics—so technical skills grow alongside responsible use. The initiative aligns with the Gulf state’s broader AI strategy, which already includes the world’s first AI ministry and multi-billion-dollar data-center investments.

  • Hard-wiring AI literacy into the school system builds a domestic talent pipeline years before competitors, reinforcing the UAE’s ambition to be an AI exporter rather than a customer.

Read more here

AI ART

4. Whitney Curator Sets High Bar for AI Images to Qualify as Art

  • Whitney Museum curator Christiane Paul says AI images become art only when driven by a sophisticated concept and deep artist engagement, not by effortless prompts. She likens curating AI work to judging painting technique and dismisses most prompt-based images as mere visuals.

  • Paul contrasts today’s Midjourney-style generators with Harold Cohen’s 1970s AARON system, which the Whitney reconstructed for a new exhibit, underscoring preservation and authorship challenges. She stresses that serious AI artists must train and tweak their own models while interrogating corporate black boxes and embedded biases.

  • Her stance signals that museums will judge AI works on intent and craft, not novelty, forcing digital creators to prove conceptual rigor before expecting institutional recognition.

Read more here

INTERVIEW

5. Yuval Noah Harari Warns That AI Trust Starts With Humans, Not Machines

  • In a Wired interview, historian Yuval Noah Harari argues that super-intelligent AIs are autonomous agents, not tools, and questions why leaders who mistrust rivals believe they can trust alien algorithms. He calls that mindset “almost insane” and urges a slower, safety-first race.

  • Harari spotlights the “trust paradox”: governments sprint to outdo competitors yet plan to delegate critical decisions to systems they barely understand. He advocates banning bots that impersonate people and rebuilding human-to-human trust as the foundation of AI governance.

  • His message reframes the AI debate from technical capability to social contract. Without robust human trust networks, leaders could find themselves as powerless as horses in a system run by machines.

Watch the full interview with Yuval Noah Harari here

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