Japanese firms have lower AI adoption rates than the United States and the United Kingdom. According to an OECD report, only 8.4% of Japanese workers use AI as part of their job, compared with 50% in the United States and 32% in the United Kingdom. In Singapore, adoption is 56% of workers, the highest in Asia. The slow uptake is linked to a risk‑averse corporate culture, a consensus‑driven decision process and a low tolerance for AI errors, especially in client‑facing roles, said Austin Xu, co‑founder of the US start‑up Kuse AI. He added that Japanese companies prefer to avoid AI mistakes and may leave positions unfilled rather than rely on machines. The government passed an AI Promotion Act last year to encourage businesses to invest in AI and aims to become the world’s most friendly country for AI development. Despite these efforts, digital literacy remains low and a shortage of IT professionals is projected to reach almost 800,000 by 2030, said Yasushi Ogasawara, an expert at Meiji University. About 60% of Japanese companies still use computer systems more than 20 years old, and many firms prioritize maintaining full employment over adopting AI, he said. Larger firms such as Kanematsu have begun hiring graduates with AI skills and report using AI for writing emails, summarising documents and recording meetings, though autonomous multi‑step AI systems are rare. Experts note that generative AI is mainly used for low‑risk tasks and that productivity gains may remain elusive without broader reform.

American Airlines announced a reorganization of its senior management, adding former Spirit Airlines executive John Bendoraitis to lead technical operations, while CEO Robert Isom faces pressure to narrow the profit gap with Delta Air Lines and United Airlines. The airline reported a widening profit gap before recent increases in jet fuel prices, which have pressured margins despite higher revenue. Isom said the changes were the first step in a series of actions to strengthen the team and improve execution. The memo listed new responsibilities for existing executives: Chief Commercial Officer Nat Pieper will oversee marketing and branding; Chief Customer Officer Heather Garboden will add reservations and service recovery; JC Gulbranson will add airports and planning; and Ron DeFeo will step down from communications, with Caroline Clayton taking over communications and Steve Neuman assuming government affairs. The pilot union has questioned the ability of the current management to close the earnings gap, noting that rising fuel costs have not prevented competitors from achieving profitability. Union head Nick Silva said the union sought a meeting with the board but was not granted, and has since discussed concerns with analysts and investors. Isom said the airline will maintain its strategy of expanding the global network, growing premium revenue and strengthening the AAdvantage loyalty program, and expects to break even in 2026 as fuel costs remain high.

Twitch announced on Wednesday that users can opt out of a default setting that permits Amazon to use their channel content—including streams, clips, images, chats and other material—for training generative artificial intelligence models. The change follows a policy that had been enabled by default since Amazon acquired the platform in 2014. Mike Minton, Twitch’s chief product officer, said during a live stream that the company wants to respect user preferences and noted that an opt‑in model would attract few participants, which is why the default remains enabled. Mary Kish, head of community at Twitch, demonstrated the process for disabling AI training in channel settings and said the industry standard expects users may be uncomfortable with the practice. Comments from viewers during the stream expressed opposition, with one user stating they would not want to provide their creativity for AI training and another suggesting Twitch could set a new industry standard. Twitch has indicated that data collected from opted‑in users will not be sold to third parties, and the company has not confirmed whether any existing AI models have already been trained on Twitch content. Amazon has not responded to requests for comment.

The U.S. federal budget deficit widened to $432 billion in July, a record for the month, and the fiscal year‑to‑date gap rose to $1.799 trillion, according to the Treasury. The deficit for the first ten months of fiscal year 2026 exceeds the entire deficit recorded for fiscal year 2025, which totaled $1.775 trillion. July marked the largest monthly shortfall since March 2021, when COVID‑19 relief spending pushed the gap to $660 billion. Unadjusted outlays reached $766 billion, an increase of $137 billion, or 22 percent, from the prior year. The spike was driven partly by a calendar shift that accelerated the payment of benefits scheduled for August. Adjusted for those shifts, the deficit was $333 billion, up $50 billion, or 18 percent, from July 2025. Customs receipts fell $4 billion to $334 billion, resulting in a net outflow of $8.55 billion after $33.38 billion in tariff refunds. The refunds, prompted by a Supreme Court decision that struck down the broad emergency tariffs imposed in 2025, were lower than the $49.2 billion refunded in June. The Treasury noted that the deficit reflects higher spending and lower revenue, while the Congressional Budget Office estimates that full‑year customs duties will be about $250 billion below its February projection, diminishing a previously growing revenue source. The fiscal year ends on September 30, and the Treasury expects the deficit to remain elevated as the administration rebuilds tariffs on major trading partners. The ongoing gap raises questions about future fiscal policy and budgetary pressures.