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Welcome back to Gahrner Monthly, your trusted digest tracking AI’s growing impact on jobs, workplace policies, and public accountability.

Model Upgrades, Automation Creep, and the Rise of Internal AI Tools

OpenAI, Microsoft, and Meta Go Enterprise-First:
June marked a shift in strategy from major AI players, with firms prioritizing enterprise integrations over flashy consumer rollouts. Microsoft Copilot expanded into Salesforce and SAP environments, Meta teased internal AI for workplace management, and OpenAI launched early access programs for in-house document summarization tools.

Ghost Work Resurgence:
Despite automation headlines, companies are increasingly relying on low-wage “ghost workers” to fine-tune AI outputs. Reports from India and Latin America show rising demand for data labeling, moderation, and prompt engineering—under the radar and often underpaid.

Small Models, Big Moves:
Mistral, Cohere, and several national research labs made strides in training smaller, more controllable LLMs. Governments are taking note—seeing compact models as easier to regulate and better suited for public sector use cases.

Labor Market Realities: Fatigue, Organizing, and Hiring Gridlock

Return-to-Office Revolt Gains Subtle Wins:
In Canada and the U.S., June saw a quiet reversal from the RTO hardline. Firms like IBM, RBC, and Accenture backtracked on full-time mandates amid declining morale and retention challenges. Hybrid "anchor day" setups gained traction, but inconsistencies persist across departments.

White Collar Bottlenecks Grow:
Recent studies confirmed what Gahrner has tracked since late 2024—entry-level roles are increasingly rare. AI-enhanced workflows are eroding need for junior analysts, assistants, and admin roles. Sales roles remain insulated for now, but creative, legal, and comms sectors are thinning.

Labor Frustration Spills Into the Courts:
June saw a rise in wrongful termination claims tied to AI-based decisions in hiring and performance reviews. California, Ontario, and the UK each had early legal tests around algorithmic accountability—signaling a wave of regulatory pressure on HR tech vendors.

Public Policy and Nation-State Strategy Take Center Stage

France and Japan Embrace “AI for Public Good” Initiatives:
Both countries announced national AI deployments to address social issues—France in education and housing, Japan in eldercare. Critics warn of rushed implementation; advocates cite long-term demographic urgency.

U.S. Congress Mulls Worker Displacement Fund:
A bipartisan working group floated the idea of an “AI Transition Fund” aimed at reskilling displaced workers. Early drafts link funding to corporate profits from automation—a potential political flashpoint in an election year.

Canadian Policy in Limbo:
While the Artificial Intelligence and Data Act remains stalled, June brought targeted provincial efforts—Quebec and British Columbia unveiled tax incentives for ethical AI audits, drawing interest from HR tech firms and public agencies.

Five Eyes Focus – June 2025 Highlights

U.S.:
A Federal Reserve report signaled concern over AI’s wage suppression in white-collar sectors. Silicon Valley lobbying intensified, particularly around model transparency exemptions.

Canada:
StatsCan reported a modest decline in youth employment—the steepest drop since 2021. Analysts cite AI bottlenecks and weak internship pipelines as key drivers.

UK:
The National Health Service announced an AI triage assistant pilot in three hospitals. Parliament remains gridlocked on broader AI regulation as elections near.

Australia:
The Australian Education Union formally requested bans on AI grading tools, citing bias and student privacy violations. Legal reviews are underway.

New Zealand:
June’s “Digital Future” summit emphasized AI inclusion and ethics. Pilot programs for AI-assisted Māori language learning drew positive early results.

Looking Ahead: Themes to Watch for July

• AI-assisted management: Will AI tools for team monitoring quietly replace human supervisors?
• Legal exposure in AI HR tech: Expect rising litigation from terminated employees citing algorithmic bias.
• Youth Unemployment & AI: Summer reports could show a disturbing trend of early-career AI displacement.
• Unionization in Tech-Adjacent Fields: UX researchers, QA testers, and content moderators may be next in line for organized labor pushes.

Thank you for being part of the Gahrner Monthly community. We look forward to helping you navigate what's ahead.

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Stay ahead and Stay engaged,

Ari

Founder, Gahrner Monthly

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