Good morning. AI always seems to work miracles in the slickly produced videos and choreographed on-stage demos we see at tech conferences. Within the walls of companies using the technology the process of taking an AI pilot project and turning it into a real, production-ready system, is not always so smooth.
That’s one of the premises that inspired Fortune’s AIQ series, where we take a look at how real companies are using AI every day, exploring the lessons they’ve learned and the problems they’ve solved. The latest installment, a 5-story package, looks at companies including Pinterest, Bank of America, and Seismic, and spotlights the one key strategy the companies credit with making their AI projects click. You can read all about it here.
Today’s tech news below.
Alexei Oreskovic
@lexnfx
alexei.oreskovic@fortune.com
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Microsoft shakes up AI teams
Microsoft is restructuring its AI teams, merging the groups working on consumer and business versions of its Copilot AI assistant products, and appointing a former Snap exec to lead the effort. As part of the reorg, Mustafa Suleyman, Microsoft's head of AI, will now focus on developing new, advanced AI models, according to media reports.
Microsoft CEO Satya Nadella announced the changes in an email to employees on Tuesday.
The move is intended to help Microsoft streamline its sprawling assortment of AI products. At one point, the company offered more than a dozen different versions of CoPilots, Bloomberg reported, leaving customers confused.
Suleyman's move, meanwhile, underscores Microsoft's increasing seriousness about developing its own in-house AI models, after initially partnering with OpenAI (and investing $13 billion in the ChatGPT maker), and later working with Anthropic. "We are doubling down on our superintelligence mission with the talent and compute to build models that have real product impact," Nadella wrote in the memo, according to CNBC.
Leading the Copilot business will be Jacob Andreu, who was SVP of product and growth at social media platform Snap until 2023. He joined Microsoft last year, after a stint at VC firm Greylock.—AO
Amazon offers 1-hour and 3-hour delivery—for a fee
Amazon customers in more than 2,000 U.S. cities, towns and suburban areas can now pay a fee to have certain items delivered in three hours or less, the company said on Tuesday.
One-hour delivery slots are also available in hundreds of places, including major metropolitan areas like Los Angeles, Chicago and Washington, and smaller cities such as Des Moines, Iowa and Boise, Idaho, the company said. Prime members will get charged $9.99 for the service, which costs nonmembers $19.99, Amazon said.
Customers interested in 3-hour delivery can choose from 90,000 items in Amazon's speedy-shipment inventory, with Amazon Prime members paying $4.99, and nonmembers paying $14.99. The Seattle-based company said it started testing the express delivery service late last year and expanding it this month.
“We saw an opportunity to use our unique operational expertise and delivery network to help make customers’ lives a little easier while unlocking even more value for Prime members,” Udit Madan, senior vice president of worldwide operations at Amazon, said in a statement.—The Associated Press
Google opens Personal Intelligence to all U.S. users
Google is expanding Personal Intelligence, a feature that connects Gemini to users’ Gmail and Google Photos, to all U.S. users. Previously limited to only paid subscribers, the feature is now available in AI Mode in Search and rolling out to the Gemini app and Gemini in Chrome.
The feature is aiming to act as an assistant that works intuitively across Google’s apps rather than asking users to supply context manually. Google’s examples for the feature include pulling hotel bookings from Gmail to build a travel itinerary or referencing past purchases to recommend matching accessories.
Personal Intelligence is off by default and Google says Gemini doesn’t train on a user’s Gmail or Photos libraries directly, only on specific prompts and responses within Gemini or AI Mode.—Beatrice Nolan
More tech
—OpenAI launches GPT 5.4 mini and nano. Time for small language models.
—Apple home devices boss goes to Oura. Wrapped around your finger.
—Mastercard acquires crypto startup BVNK. Deal worth up to $1.8 billion.
—Benchmark’s Bill Gurley on the AI bubble: A reset is coming.
—Perplexity AI browser can keep shopping on Amazon—for now, court rules
—Nvidia just forecast $1 trillion in AI demand. So why isn’t Jensen Huang a target of AI backlash?
—PayPal expands stablecoin access. Now in 68 more countries.
Fortune AIQ: One Strategy, Real AI Results
AI transformation can be overwhelming—there are countless tools, strategies, and approaches competing for attention, often without any proven results. But for some companies, AI’s biggest impact can be attributed to a single tool, strategy, or approach. Explore all of Fortune AIQ, and read the latest playbook below:
–How to decide if gen AI is the right path for your product
–Inside Bank of America’s ‘build once’ AI strategy
–Why Pinterest is going all in on open-source AI
–How cutting out product management enabled Kilo to compete in the hyper-fast AI coding market
–How Seismic’s AI incubation team became its ultimate AI strategy
