Good morning. Would you believe it if I told you that the world’s wealthiest luxury company is betting big on AI?
It’s true. The French conglomerate LVMH—purveyor of Ardbeg scotch, Rimowa luggage, Tiffany diamonds, and other fineries—believes AI will help improve its operational efficiency (bien sûr) and stoke demand (hein?) by making “human sales advisers more effective at engaging customers,” one exec told the Wall Street Journal.
That’s a tightrope to walk for a business that’s so high touch. Get it wrong and, well, as Pretty Woman’s Vivian Ward might say: Big mistake. Big. Huge.
Today’s tech news below. —Andrew Nusca
Want to send thoughts or suggestions to Fortune Tech? Drop a line here.
Introducing Fortune AIQ
AI is reshaping work. What does it mean for your team? Fortune has unveiled a new hub, Fortune AIQ, dedicated to navigating AI’s real-world impact. Fortune has interviewed and surveyed the companies at the front lines of the AI revolution. In the coming months, we’ll roll out playbooks based on their learnings to help you get the most out of AI—and turn AI into AIQ. The first AIQ playbook, The “people” aspect of AI, explores various aspects of how mastering the “human” element of an AI deployment is just as important as the technical details.- Companies are overhauling their hiring processes to screen candidates for AI skills—and attitudes. Read more
- ‘AI fatigue’ is settling in as companies’ proofs of concept increasingly fail. Here’s how to prevent it. Read more
- AI is changing how employees train—and starting to reduce how much training they need. Read more
- AI is helping blue-collar workers do more with less as labor shortages are projected to worsen. Read more
- Everyone’s using AI at work. Here’s how companies can keep data safe. Read more
Snap CEO Evan Spiegel promises new smart glasses next year
Snapchat hopes to best its Big Tech opponents by releasing its new augmented reality AI-enabled smart glasses well before the big guys.
Snap CEO Evan Spiegel said Tuesday that the company would release a new version of its camera-equipped glasses next year that will incorporate an interactive, AI-enhanced digital screen within the lens.
The 2026 release date would be ahead of Meta, which plans to release its AR “Orion” glasses in 2027, while Google has not attached a date to its Android XR glasses.
“The tiny smartphone limited our imagination,” Spiegel said in his keynote at the Augmented World Expo conference in Long Beach, Calif. “It’s clear that today’s devices and user interfaces are woefully inadequate to realize the full potential of AI.”
The new “Snapchat Specs” will allow users to look at objects in the real world and leverage AI to access information, such as translating ingredients on a label from foreign languages.
The glasses will also allow users to interact with the objects on the lens, Snap said, citing examples like playing video games with their eyeballs.
The company did not share photos of the Specs frames or provide information on pricing. Snapchat did share that operating system partnerships with OpenAI and Google Gemini will extend into experiences for the glasses. —Alexandra Sternlicht
Ahead of robotaxi launch, Austin residents say Teslas with drivers are circling their blocks
About three weeks ago, Christian Pfister spotted a white Tesla Y with a Texas manufacturer plate drive by, with a dark-colored Tesla closely trailing behind it.
He watched as the Tesla tandem made a left turn, disappeared around the block, then drove by him again—once, then twice, then again and again.
“That’s all they did—around the same block over and over and over, all day long,” Pfister told Fortune.
A handful of Teslas have since frequented the streets of Pfister’s neighborhood in Austin, driving the same routes and taking the same turns repeatedly—often but not always with drivers in the front seat.
Tesla is testing the vehicles in the neighborhood as it gears up for a long-anticipated launch of its self-driving taxi service in the Texas capital by the end of this month.
Austin residents are used to seeing self-driving vehicles around town. Alphabet-owned Waymo’s cars started mapping the city in 2023 with safety drivers on board, and has since begun offering passenger service around the city without safety drivers.
But the Tesla sightings add to the questions many have about the viability of the company’s technology and approach to autonomous driving.
While rivals have needed to digitally map roads and neighborhoods before launch, Tesla claims that its camera-only system doesn’t require high-definition mapping, radar, or lidar technology.
But if that’s the case, why are Teslas driving around the same streets of one neighborhood over and over—and why do many of the vehicles have someone driving them?
Tesla did not respond to a request for comment. —Jessica Mathews
More tech
—OpenAI debuts o3-pro. It’s a more “reliable” version of its o3 reasoning model.
—Google Android 16 debuts. The mobile operating system, due in June, wasn’t expected until the fall.
—27 U.S. states sue 23andMe. Genetic data too sensitive to be sold without customer consent, they argue.
—Meta-Scale AI deal: “Far from a slam dunk” for Meta as it hemorrhages AI talent.
—France to ban social media for kids under 15 if Europe doesn’t take the step.
—AI literacy at Ohio State. The university is requiring every student to use AI in class.
—Mistral launches reasoning models. Magistral Small and Medium are the company’s first in the category.
—Ofcom launches investigations. Britain’s media regulator opens nine probes, including into 4chan, for online safety.
—IBM eyes Quantum Starling. The “fault-tolerant” quantum computer promises 20,000x the compute of today's models.
Endstop triggered
