September 5, 2025

analysis  
Meta AI Challenges, Shell Saves $50M, Rackspace New CEO

Rackspace Technology is set to enhance its AI and cloud capabilities with the appointment of Gajen Kandiah as CEO, effective September 3, 2025. Amar Maletira will transition to the role of Vice Chairman. This move comes as companies across various sectors, including UK financial firms, increase their investments in AI, recognizing its potential to boost productivity and customer experience. However, a recent study emphasizes that AI success hinges on organizational readiness, not just the technology itself, highlighting companies like Shell, which saves $50 million annually using AI for predictive maintenance. In the B2B marketing space, AI is transforming sales strategies, with companies like Thoughtworks and AVEVA leveraging AI to enhance customer focus and drive revenue. HubSpot is also integrating AI into its CRM system, creating human-AI teams to automate tasks and improve customer service, which has positively impacted their revenue. Despite the enthusiasm, Substack's CEO, Chris Best, cautions that AI could lead to either a flood of low-quality content or a cultural boom, while Henry Blodget likens the AI boom to the dot-com era, suggesting that while many companies may fail, the investment focus on AI is ultimately beneficial. Concerns are also raised about whether AI innovation is truly new or simply a rearrangement of existing ideas. A Token Security webinar will address AI identity risks, focusing on how to control and protect AI agents. Private 5G and edge computing are further accelerating industrial AI applications, enhancing both efficiency and security in factories. AI is also proving valuable in combating online scams, with companies like Google and PayPal using it to identify and flag suspicious activity. Meta, however, faces challenges in its AI endeavors, including employee departures, regulatory pressures, and financial risks associated with its AI and Reality Labs investments.

Key Takeaways

  • Gajen Kandiah will become Rackspace Technology's CEO on September 3, 2025, to focus on AI and cloud growth, while Amar Maletira transitions to Vice Chairman.
  • A study indicates that AI success depends more on organizational readiness than just technology adoption; Shell saves $50 million annually using AI for maintenance predictions.
  • AI is transforming B2B marketing, enabling companies like Thoughtworks and AVEVA to enhance customer focus and increase revenue.
  • HubSpot is integrating AI into its CRM system to create human-AI teams, improving automation and customer service, which has boosted revenue.
  • Substack CEO warns AI could either flood the internet with low-quality content or empower creators.
  • Henry Blodget compares the AI boom to the dot-com era, suggesting that despite potential failures, the investment focus is beneficial.
  • UK financial firms are increasing AI investments to improve productivity and customer experience.
  • Government contractors face workforce challenges that AI can help alleviate by reducing workload, but trust in AI is crucial.
  • Token Security is hosting a webinar to discuss AI identity risk and how to protect AI agents.
  • Meta is facing AI struggles, including employee departures and regulatory pressures, impacting its AI and Reality Labs ambitions.

Rackspace names Gajen Kandiah CEO to boost AI cloud growth

Rackspace Technology has a new CEO, Gajen Kandiah, starting September 3, 2025. He will focus on AI and cloud innovation. Former CEO Amar Maletira is now Vice Chairman. Rackspace aims to use AI to improve its cloud services. The company wants to take advantage of the growing AI market and help businesses use AI more effectively.

AI success depends on readiness, not just technology, study says

Many companies are investing in AI, but only a few see good results. A study shows that being ready for AI is more important than just having the technology. Companies like Bupa, Diageo, and Shell are successful because they have good AI plans and teamwork. Shell saves $50 million a year using AI to predict maintenance needs. Investors should focus on companies that use AI ethically and have strong data systems.

AI transforms B2B marketing offering strategic investment opportunity

AI is changing how businesses sell to each other, making it more customer-focused. Companies like Thoughtworks and AVEVA use AI to improve marketing and sales. Agentic AI helps businesses grow revenue and cut costs. Companies need to optimize content for AI and work together across teams. Investors should look for companies that use AI as a key part of their business strategy.

HubSpot uses AI to transform CRM with human-AI teams

HubSpot is using AI to change its CRM system by creating teams that combine people and AI. Tools like Breeze help automate tasks and improve customer service. HubSpot's AI agents streamline marketing, sales, and service. HubSpot's approach is cost-effective for small businesses. The company's revenue is up, showing its AI strategy is working.

Substack CEO warns AI could create 'slop' or cultural boom

Substack CEO Chris Best believes AI could either flood the internet with low-quality content or empower creators. He says attention is limited in the media world. AI-generated content is already common on social media. Best hopes AI can also help create meaningful culture. Substack is a platform where writers can earn money from their subscribers.

AI boom like dot-com era says Henry Blodget, but that's okay

Henry Blodget says the current AI boom reminds him of the dot-com era. Many AI companies may fail, but some will succeed. Bubbles can be good because they focus money on important things. Blodget suggests most people shouldn't try to time the market. AI adoption is real, but valuations are high.

Is AI innovation truly new or just recycled ideas

AI is changing industries, but is it really creating new ideas? Generative AI might just be rearranging old information. AI's history shows that old ideas often come back when technology improves. AI feels new because of better computers and more data. We need to understand if AI is making real progress or just repeating the past.

Why wisdom matters more than ever in the age of AI

AI can calculate and predict, but it can't tell us what is good or just. The humanities, like literature and philosophy, are important for ethics and wisdom. AI needs human guidance to be used responsibly. The humanities help us understand each other and make moral decisions. Wisdom is essential to guide technology for the common good.

UK financial firms plan to invest more in AI

Financial institutions in the UK are increasingly investing in AI. A survey by Lloyds Bank shows that most see AI as an opportunity. AI is improving productivity and customer experience. Many firms plan to increase AI investment in the next year. They believe AI will give them a competitive edge and help the UK economy.

GovCons face workforce challenges with talent, AI, and retention

Government contractors face a workforce shortage that affects their growth. They struggle to find cleared professionals and keep mid-career employees. AI can help by reducing workload, but trust is important. Companies are offering training and focusing on company culture to retain employees. Proactive planning and strategic AI use are essential.

Webinar to discuss AI identity risk with Token Security

Token Security is hosting a webinar about the security risks of AI. Experts from Forrester and Lemonade will discuss how AI can make decisions without human help. This can create new security problems for businesses. The webinar will cover how to control and protect AI agents. Attendees will learn how to use security practices to reduce risk.

Private 5G and edge computing boost industrial AI and security

Companies investing in private 5G and edge computing are seeing quick returns. These technologies help build smart and secure factories. They provide reliable connections for AI, improving efficiency and safety. Companies are using AI for predictive maintenance and digital twins. Security is also improved with strong encryption and data kept on-site.

AI helps stop scams says expert

AI is being used to protect people from online scams. Google uses AI to identify scam websites and warn users. PayPal uses AI to flag suspicious transactions. This technology is improving over time to better predict scams. Companies are using AI to help keep their customers safe from cybercrime.

Meta faces AI struggles and regulatory issues

Meta's AI lab is losing key employees and facing unclear strategies. Regulatory pressures from the FTC and GENIUS Act are creating challenges. High R&D costs and losses in Reality Labs add to financial risks. AI-driven ad revenue faces potential fines and compliance costs. Meta's AI and crypto ambitions are threatened by these issues.

Sources

AI Artificial Intelligence Cloud Rackspace CEO Gajen Kandiah Innovation AI Readiness Bupa Diageo Shell AI Plans Teamwork Ethical AI Data Systems B2B Marketing Thoughtworks AVEVA Agentic AI HubSpot CRM Human-AI Teams Breeze AI Agents Substack Content Creation Henry Blodget Dot-com Era AI Adoption Generative AI AI History Ethics Wisdom Humanities Moral Decisions UK Financial Firms Investment Lloyds Bank GovCons Workforce Challenges Talent Retention Token Security Webinar AI Identity Risk Private 5G Edge Computing Industrial AI Security Scams Google PayPal Cybercrime Meta Regulatory Issues