Category: Artificial Intelligence

  • Late-night legislative drama attempts to extend deadline for implementation of artificial-intelligence regulations

    Late-night legislative drama attempts to extend deadline for implementation of artificial-intelligence regulations

    A last-minute attempt to push implementation of Colorado’s groundbreaking artificial-intelligence regulations back to the start of 2027 failed late Tuesday, seemingly guaranteeing that state officials will work through summer and fall to try to fix perceived problems with the rules.

    Senate Majority Leader Robert Rodriguez, who sponsored the bill creating the regulations last year and then chaired a task force designed to improve them after the session ended, surprised many by killing a bill Monday to roll back some of the strictest rules. Rodriguez negotiated the bill with business and consumer advocates but expressed frustration when they couldn’t find consensus on how to proceed, so he decided to ditch the compromise and proceed with the existing Feb. 1 date for implementation of the regulations.

    Few seemed more surprised by Rodriguez’s action than Gov. Jared Polis, who assembled the task force and promised leaders in the AI sector that changes would be made to the initial rules, which some companies say threatens their ability to do business in Colorado. He — along with several prominent federal, state and local officials — wrote to legislators late Monday afternoon imploring they find some way to extend the implementation date to 2027 to give state officials time to come up with a better set of rules.

    Scrambling began not long before midnight

    At roughly 10:30 p.m. Tuesday, as the Colorado House was set to debate a seemingly unrelated bill clarifying the attorney general’s responsibilities regarding discovery requests, Rep. William Lindstedt moved to amend the title of that bill and add a provision pushing implementation of AI rules back to January 2027. Lindstedt, declaring that “cooler heads must prevail,” said it was vital to give officials time to negotiate a fix to the rules and implied that if legislators didn’t take such action on the next-to-last day of the 2025 session Tuesday, they could be called back to special session.

    “We have heard from school districts, businesses, higher education, even our congressional delegation that we need to get this right. And we failed to do that this year,” Lindstedt said. “We need to have a delay so we can get these regulations right, so people don’t lose their jobs … I don’t want to be back here later this year having this discussion.”

    Colorado state Rep. William Lindstedt introduces an amendment Tuesday that set off a frenzied 90 minutes of maneuvering in the House.

    The letter Polis sent Monday was signed also by Denver Mayor Mike Johnston, U.S. Reps. Joe Neguse and Brittany Pettersen and the two Democrats running to succeed the term-limited governor next year, U.S. Sen. Michael Bennet and Attorney General Phil Weiser. A pause in implementation was needed to let business and consumer advocates collaborate on a “balanced, future-ready framework” that doesn’t drive business from the state, it read.

    Sponsor of artificial-intelligence rules works to block move

    But Lindstedt’s effort was met by resistance from Rep. Brianna Titone, the Arvada Democrat who cosponsored the 2024 law and insisted that officials could still work through the off-season and have a bill ready by January to update the rules as needed. Titone railed against the interests she said were pushing to back implementation up by another 11 months, saying the tactic was a delay that would result in further delays and lead to giant tech companies continuing to rule the space without substantial oversight.

    Titone and Rodriguez ran the 2024 bill, which set the most comprehensive AI regulations in the nation, because consumers are scared about AI and its potential to discriminate against them in consequential decisions like hiring or medical actions, she said. The bill requires developers of AI systems to disclose how the systems were “taught,” notify consumers when AI is making consequential decisions and offer appeals processes to affected consumers, among other things.

    Backers of Lindstedt’s effort raced to get the bill preliminary approval by midnight, knowing that it otherwise would die procedurally, as it required preliminary approval Tuesday and final approval on the session’s last day Wednesday. Titone, meanwhile, talked for most of an hour and pushed several amendments to try to counter Lindstedt’s effort, hoping to run out the clock and see the bill and Lindstedt’s extension plan die.

    Through a series of procedural moves, House leaders forced a vote after one hour that went Lindstedt’s way, but they couldn’t stop Titone and fellow Democratic Rep. Yara Zokaie of Fort Collins from offering a second set of “committee of the whole” amendments. While Titone leisurely discussed the third of those “COW” amendments, the clock struck midnight, and the bill died.

    Colorado state Rep. Yara Zokaie, D-Fort Collins

    What a Feb. 1 go date for artificial-intelligence regulations means

    Titone said that failure to extend the deadline simply will make people work harder over the offseason to come to a compromise and get a bill with new AI regulations ready for introduction when the 2026 legislative session begins on Jan. 14. She expressed frustration that only after Rodriguez killed his bill did leaders in the AI sector hit the panic button and call legislators to tell them that the onerous rules from the 2024 law could force companies to move operations outside the state to locations without unworkable regulations.

    “They have had a lot of time already to figure out what they have to do to comply with this bill,” Titone said. “If we continue to give them more and more time, they’re going to try to repeal the law because there’s a lot of profits to be made that way.”

    Industry leaders such as TechNet have said that state leaders need to narrow the appeals process so that companies don’t have to respond in depth to every consumer complaint and need to better define what is a “consequential decision” governed by regulations. They also need to give AI developers and deployers a reasonable amount of time to cure problems alleged by consumers — Rodriguez’s fixup bill allowed just seven days — and need to better define safe-harbor terms to offer companies regulatory consistency.

    It’s unclear exactly what Polis and his business allies could do further to try to extend the compliance deadline beyond Feb. 1, a date that would seem to prompt Weiser to begin rulemaking shortly to meet that deadline. Titone, who served as vice chair of the task force last year, suggested that legislative body could begin meeting again to try to find the consensus that so far had eluded its members.

  • 2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 105% and 115%, According to Wall Street Analysts

    2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 105% and 115%, According to Wall Street Analysts

    The S&P 500 (^GSPC -0.77%) has fallen 8% from its high year to date as tariffs imposed by President Trump have raised the probability of a U.S. recession. Nevertheless, the Wall Street analysts below see triple-digit upside in AppLovin (APP 1.05%) and MongoDB (MDB -0.31%).

    • Michael Pachter at Wedbush in April set AppLovin with a target price of $650 per share. That implies 115% upside from its current share price of $302.
    • Yun Kim at Loop Capital in March set MongoDB with a target price of $350 per share. That implies 105% upside from its current share price of $170.

    Here’s what investors should know about these artificial intelligence stocks.

    AppLovin: 115% implied upside

    AppLovin develops ad tech software that enables developers to market and monetize their applications across mobile and connected TV campaigns. Advertising on its platform has traditionally focused on video games, but the company is expanding into other direct-to-consumer categories with its new e-commerce advertising product.

    AppLovin has put a great deal of effort into building its Axon recommendation engine. It began acquiring game studios several years ago to train the underlying machine learning models that optimize targeting, and has since released two major updates. The improvements made along the way have led to superior return on ad spend compared to other targeting solutions, according to Morgan Stanley.

    AppLovin reported strong fourth-quarter financial results. Revenue rose 44% to $1.4 billion and GAAP earnings soared 253% to $0.49 per diluted share. Management also said its nascent e-commerce advertising product hit a billion-dollar run rate in mere months, such that it should account for about 10% of revenue in 2025.

    CEO Adam Foroughi also highlighted successful pilots beyond direct-to-consumer brands. “This opens up a massive opportunity as there are over 10 million businesses worldwide who advertise online that could eventually use our platform profitably. By delivering incremental value, we position ourself as an engine for growth,” he told analysts on the fourth-quarter earnings call.

    Despite recent attacks from short-sellers, Wall Street expects AppLovin’s earnings to grow 45% in 2025. That makes the current valuation of 67 times earnings look reasonable, especially because AppLovin topped the consensus by an average of 26% in the last six quarters. Investors should consider buying a small position in this growth stock today, but triple-digit returns seem unlikely in the next year due to the uncertain economic environment.

    Image source: Getty Images.

    MongoDB: 105% implied upside

    MongoDB provides database and application development tools. Its document-based architecture offers more flexibility and scalability than relational (SQL) databases, which lends itself to use cases like analytics, artificial intelligence (AI), and e-commerce. Document databases are superior when storing large amounts of data that does not fit neatly into rows and columns, and MongoDB is the most popular document database.

    MongoDB reported good financial results for the fourth quarter of fiscal 2025, which ended in January. Its customer count climbed 14% to 54,500, and the number of customers that spend at least $100,000 annually increased 17%. In turn, revenue increased 20% to $548 million, a slight deceleration from 22% growth in the prior quarter. And non-GAAP net income increased 49% to $1.28 per share.

    CEO Dev Ittycheria believes artificial intelligence is a “once in a generation shift that will fundamentally reshape industries.” MongoDB is investing aggressively in its business to capitalize on that opportunity. That includes growing it workforce, shifting focus to larger customers, and it recent acquisition of Voyage, which provides tools that improve the accuracy and reliability of AI applications. Those investments are currently a headwind to profitability, but should lead to stronger results in the future.

    MongoDB currently trades at 6.5 times sales. That is a discount to the three-year average of 14 times sales, and near its cheapest valuation since going public in 2017. But MongoDB also anticipates its slowest revenue growth as a public company in fiscal 2026. Patient investors can buy a small position today, but it would be more prudent to wait for proof AI will reaccelerate sales growth in the future.

    Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin and MongoDB. The Motley Fool has a disclosure policy.

  • Amazon’s new AI package sorting technology helps delivery station employees

    Amazon’s new AI package sorting technology helps delivery station employees

    When packages arrive at Amazon delivery stations from local fulfillment and sortation centers, employees sort and stow them into bags which then get loaded into vans by their delivery route to reach their final destination—customers’ doorsteps. During this process, VASS will create a static buffer area, holding multiple packages, where it spotlights packages with visual cues to help employees quickly identify the right ones without the need to look at a screen or device. In parallel, the destination bags are brought to them, so employees no longer have to walk. This dramatically improves efficiency and simplicity through the sorting process.

  • 1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before It Soars Into the  Trillion Club

    1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before It Soars Into the $4 Trillion Club

    The $4 trillion club is yet to be established, but there are three candidates with a realistic chance of becoming the founding member:

    • Microsoft(NASDAQ: MSFT): Currently valued at $3.2 trillion.
    • Apple: Currently valued at $3 trillion.
    • Nvidia: Currently valued at $2.8 trillion.

    Microsoft is the closest to the mark, and its business is also growing much faster than Apple’s business, thanks primarily to the strength of its Azure cloud platform. Nvidia might be much further away from a $4 trillion valuation, but it could legitimately achieve the milestone before Microsoft and Apple because of how quickly its artificial intelligence (AI) chips for data centers are selling.

    Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

    While we don’t know which company will get there first, I think Microsoft has the greatest potential to not only join the $4 trillion club in the future, but stay there as well. Here’s why.

    Image source: Getty Images.

    Copilot demand is soaring

    Since 2019, Microsoft invested around $14 billion in OpenAI, which is the leading AI start-up behind ChatGPT. Microsoft combined OpenAI’s latest AI models with its own to create the Copilot virtual assistant, which is now integrated into the company’s flagship software products like Windows, Bing, and Edge, for free.

    But Copilot is also available for subscribers of the 365 productivity suite (which includes applications like Word, Excel, and PowerPoint) for an additional monthly fee. Organizations around the world pay for over 400 million 365 licenses for their employees, and all of them are eligible for the Copilot upgrade, so the virtual assistant could be a major source of recurring revenue for Microsoft in the future.

    During its fiscal 2025 third quarter (ended March 31), Microsoft said there were hundreds of thousands of organizations using Copilot for 365 around the world, which was up threefold from the year-ago period. CEO Satya Nadella said a record number of customers opted to buy more licenses during the quarter, and he said deal size continues to grow.

    The company rolled out new Copilot features during Q3 to encourage more 365 subscribers to upgrade, including deep reasoning agents called Researcher and Analyst. Researcher scans internal data and the internet to help employees develop business strategies and create reports, whereas Analyst can turn raw spreadsheet data into demand forecasts and revenue projections. These tools have the potential to save employees hours of manual work, taking their productivity to new levels.

    Azure revenue just reaccelerated thanks to AI

    Azure is Microsoft’s cloud computing platform, which offers businesses hundreds of solutions to help them transition into the digital age. But it also became a go-to destination for businesses seeking the computing power and ready-made large language models (LLMs) they need to create and deploy AI software.

    Microsoft accounts for its AI cloud revenue under its Azure AI segment, and it’s becoming an increasingly important driver of Azure’s overall growth.

    During the fiscal 2025 third quarter, Azure revenue grew by 33% year over year, and Azure AI accounted for a record-high 16 percentage points (almost half) of that figure.

    A stacked bar chart showing Microsoft's Azure revenue growth and Azure AI revenue growth.

    Microsoft is rapidly building more infrastructure and buying truckloads of AI chips from leading suppliers like Nvidia in order to meet demand. The company opened new data centers in 10 countries in the third quarter alone, but it has a long way to go. In fact, Chief Financial Officer Amy Hood said Microsoft has an order backlog worth an eye-popping $315 billion from customers who need more computing capacity.

    In other words, Azure AI revenue has a very long runway for growth — but capturing it won’t be cheap. Microsoft allocated $21.4 billion to capital expenditures (capex) during the third quarter, most of which went toward data center infrastructure. It places the company on track to spend over $80 billion for the full fiscal year, and Nadella says that figure is likely to grow in fiscal 2026.

    Microsoft has a clear path to the $4 trillion club

    Microsoft stock is trading at a price-to-earnings (P/E) ratio of 33.6 as of this writing, which is almost exactly in line with its 10-year average. Moreover, it’s sitting roughly between Apple stock, which trades at a P/E ratio of 31.9, and Nvidia stock, which trades at a P/E ratio of 38.9. In other words, Microsoft is probably fairly valued at the current level.

    MSFT PE Ratio Chart

    MSFT PE Ratio data by YCharts.

    If we assume Microsoft’s P/E ratio remains constant, the company will have to grow its earnings per share (EPS) by 23.5% to justify a market cap of $4 trillion. Since it grew its EPS by an average of 16.2% per year in the last decade (between fiscal 2014 and fiscal 2024), it could get there in around 18 months from now.

    However, Microsoft is growing its EPS below trend at the moment, partly because of its enormous data center spending which is weighing on its profitability. According to Wall Street’s consensus estimate (provided by Yahoo! Finance), the company could increase its earnings by 12.8% in fiscal 2026. If it repeats that result in fiscal 2027, then a $4 trillion valuation might be around two years away, despite the elevated capex spending.

    Therefore, while it’s impossible to know which company will reach the milestone first, I think Microsoft has a great chance to join the $4 trillion club in the near future. Plus, its recurring revenue streams from products like 365 and Copilot, combined with Azure AI’s enormous $315 billion customer backlog, could ensure that the company stays there for the long term.

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    Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

  • California Bar Exam at center of controversy after hybrid exam rollout

    California Bar Exam at center of controversy after hybrid exam rollout

    California state lawmakers are calling for an audit of the state’s February bar exam that was plagued with technical issues, concerns over AI-generated questions, and now, one of the highest pass rates of any spring exam since 1965.The State Bar of California released the results of February’s bar exam, which saw 55.9% of applicants pass the General Bar Examination (GBX) compared to 34% in February of 2024. It’s an impressive jump that comes on the heels of arguably one of the most controversial licensing exams in recent history. The State Bar of California moved away from its traditional test, opting for a cost-saving hybrid exam. The company Kaplan was contracted to write a portion of the exam, and Meazure Learning was contracted to deliver and proctor it. After complaints from test takers, the State Bar of California lowered the required score to pass the bar exam, offered those who failed it 2 years’ provisional licenses, and an option to retake the $1,000 exam for free in July.”So, I failed the exam. I’m disappointed because I feel like I wasn’t given a fair shot,” said Stephen Zendejas.Stephen was one of a handful of test takers invited to the state senate judiciary committee meeting to provide testimony on what the exam was like.He attended with his older sister Tiffany Zendejas. The siblings were first-generation law students, both failing their first attempts, as many do on what’s considered the hardest bar exam in the country.Tiffany passed one of the previous exams and is now a public defender, while her brother prepares to look for options out of state and away from family.”It makes me feel really sad… in order for him to achieve his dreams, he has to relocate,” said Tiffany Zendejas.After a bar exam he describes as chaotic, Stephen doesn’t want to retake the California Bar or use a provisional license until he can take the bar again. When asked if the results would be different without the issues he reported, his response was “we’ll never know and that’s what’s so disheartening.””Several questions seemed oddly worded during the exam. I tried not to pay too much attention, but some were very absurd,” said Stephen as he testified before the judiciary committee.He’s referring to complaints of grammar issues on top of problems such as a broken copy and paste function that was promised for test takers but never worked for him. “There are typos, there are grammatical errors, there were questions that didn’t make sense. How did that happen?” said Sen. Tom Umberg as he questioned the leadership of the State Bar of California.The State Bar of California, for the first time, created a hybrid test, allowing applicants to sit for the bar virtually. The argument from leadership was that it gives test takers more flexibility. Offering a fully remote option with virtual proctors, and smaller in-person testing sites spread throughout the state instead of California’s major cities.The move was also a cost-saving measure to help reduce the structural deficit of the admissions fund that was projected to be insolvent by 2026, according to the State Bar of California.For decades, the 200-question multiple-choice portion of the exam, known as the “MBE,” was licensed through the National Conference of Bar Examiners, which prohibits the exam from being delivered in a remote setting. So, the State Bar of California contracted Meazure Learning.After February’s exam, the State Bar of California filed a lawsuit against Meazure for claims of “fraudulent inducement,” “false promise,” “negligent misrepresentation,” and “breach of contract,” among other allegations.The lawsuit reveals numerous examples of failed attempts to administer mock versions of the exam leading up to the February bar.The lawsuit also cites examples of test takers unable to enter the exam, submit responses, or use certain basic functions.Senator Tom Umberg has now introduced Senate Bill 47, a measure that would authorize the California State Auditor to conduct an audit on the February Bar Exam.The California Supreme Court also ruled that July’s Bar Exam needs to return to its original format, with the MQE questions and methods used over the last 40 years.To see the full breakdown of the California Bar results with adjustments, click here.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

    California state lawmakers are calling for an audit of the state’s February bar exam that was plagued with technical issues, concerns over AI-generated questions, and now, one of the highest pass rates of any spring exam since 1965.

    The State Bar of California released the results of February’s bar exam, which saw 55.9% of applicants pass the General Bar Examination (GBX) compared to 34% in February of 2024. It’s an impressive jump that comes on the heels of arguably one of the most controversial licensing exams in recent history.

    The State Bar of California moved away from its traditional test, opting for a cost-saving hybrid exam. The company Kaplan was contracted to write a portion of the exam, and Meazure Learning was contracted to deliver and proctor it.

    After complaints from test takers, the State Bar of California lowered the required score to pass the bar exam, offered those who failed it 2 years’ provisional licenses, and an option to retake the $1,000 exam for free in July.

    Hearst Owned

    Stephen Zendejas with family 

    “So, I failed the exam. I’m disappointed because I feel like I wasn’t given a fair shot,” said Stephen Zendejas.

    Stephen was one of a handful of test takers invited to the state senate judiciary committee meeting to provide testimony on what the exam was like.

    He attended with his older sister Tiffany Zendejas. The siblings were first-generation law students, both failing their first attempts, as many do on what’s considered the hardest bar exam in the country.

    tiffany and stephen zendejas bar exam

    Hearst Owned

    Stephen and Tiffany Zendejas

    Tiffany passed one of the previous exams and is now a public defender, while her brother prepares to look for options out of state and away from family.

    “It makes me feel really sad… in order for him to achieve his dreams, he has to relocate,” said Tiffany Zendejas.

    After a bar exam he describes as chaotic, Stephen doesn’t want to retake the California Bar or use a provisional license until he can take the bar again. When asked if the results would be different without the issues he reported, his response was “we’ll never know and that’s what’s so disheartening.”

    “Several questions seemed oddly worded during the exam. I tried not to pay too much attention, but some were very absurd,” said Stephen as he testified before the judiciary committee.

    He’s referring to complaints of grammar issues on top of problems such as a broken copy and paste function that was promised for test takers but never worked for him.

    “There are typos, there are grammatical errors, there were questions that didn’t make sense. How did that happen?” said Sen. Tom Umberg as he questioned the leadership of the State Bar of California.

    The State Bar of California, for the first time, created a hybrid test, allowing applicants to sit for the bar virtually.

    The argument from leadership was that it gives test takers more flexibility. Offering a fully remote option with virtual proctors, and smaller in-person testing sites spread throughout the state instead of California’s major cities.

    The move was also a cost-saving measure to help reduce the structural deficit of the admissions fund that was projected to be insolvent by 2026, according to the State Bar of California.

    For decades, the 200-question multiple-choice portion of the exam, known as the “MBE,” was licensed through the National Conference of Bar Examiners, which prohibits the exam from being delivered in a remote setting. So, the State Bar of California contracted Meazure Learning.

    After February’s exam, the State Bar of California filed a lawsuit against Meazure for claims of “fraudulent inducement,” “false promise,” “negligent misrepresentation,” and “breach of contract,” among other allegations.

    The lawsuit reveals numerous examples of failed attempts to administer mock versions of the exam leading up to the February bar.

    The lawsuit also cites examples of test takers unable to enter the exam, submit responses, or use certain basic functions.

    Senator Tom Umberg has now introduced Senate Bill 47, a measure that would authorize the California State Auditor to conduct an audit on the February Bar Exam.

    The California Supreme Court also ruled that July’s Bar Exam needs to return to its original format, with the MQE questions and methods used over the last 40 years.

    To see the full breakdown of the California Bar results with adjustments, click here.

    See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

  • The Use of Artificial Intelligence (AI) to Generate Case Studies for the Classroom – Faculty Focus

    The Use of Artificial Intelligence (AI) to Generate Case Studies for the Classroom – Faculty Focus

  • Lawmakers act on artificial intelligence bills as Colorado session ends

    Lawmakers act on artificial intelligence bills as Colorado session ends

    Lawmakers are set to wrap up their work at the state capitol for this year on Wednesday, but before that happens, they are working on measures related to artificial intelligence.
  • Polis calls on Colorado lawmakers to delay implementation of first-in-the-nation artificial intelligence law

    Polis calls on Colorado lawmakers to delay implementation of first-in-the-nation artificial intelligence law

    Colorado is the first state in the nation to pass a law regulating the use of artificial intelligence.

    But state leaders are now asking the legislature to delay the law’s implementation until January 2027.

    The governor, attorney general, Denver’s mayor, and members of Colorado’s congressional delegation signed a letter saying stakeholders need more time to develop a framework that “protects privacy and fairness without stifling innovation or driving business away from our state.”

    The law is set to take effect in February of 2026 and would require businesses to disclose when the technology is being used for consequential decisions, like employment, bank loans, housing, and education.

    The governor and bill sponsor agreed to work with business, consumer, and civil rights groups on revisions to the law before implementation, but after hundreds of hours of negotiations, there is no compromise, and the legislative session ends Wednesday.

    The new law not only applies to tech companies but almost every company in Colorado that has more than 50 employees and uses software to make decisions.

    “Both the people who build the software and the people who use it are affected by this bill,” says Bryan Leach, founder and CEO of the Denver tech company Ibotta.

    Leach says most businesses use software like Indeed to sort job applicants and, under the law, they will need to disclose possible biases the software might have: “You have to guess what the possible unintended, disparate impacts are and list out all of your steps of mitigation, even though you’re not a developer of the software.”

    Bryan Leach, founder and CEO of Ibotta, decries a new state law in Colorado that seeks to regulate the use of artificial intelligence by businesses.

    CBS


    Business owners would also have to respond to anyone who thinks the software discriminated against them, and if they don’t like the answers, they can appeal to the Attorney General’s Office.

    “Now every person who doesn’t like the pile they’re in, or the stage they get to, can force an accounting individualized to them from the developer and the deployer,” says Leach. “This is a job-destroying bill.”

    Democratic state Sen. Robert Rodriguez, who’s led the charge for the AI regulations, says it’s simply about bringing more transparency to the technology.

    “Would you like a computer telling you if you could have your job without an interview?” Rodriguez says. “Basically the bill is ‘just try. Be responsible. Test your systems. Tell people how it works.’ And if you do that, you’re never getting in trouble. If you mess up and you try and fix it, you’re never in trouble.”

    xgr-ai-regulations-10pkg-frame-3006.png

    Democratic state Sen. Robert Rodriguez discusses his bill that seeks to regulate businesses’ use of artificial intelligence.

    CBS


    Consumer and civil rights groups say the law and a compromise bill Rodriguez introduced last week don’t go far enough when it comes to transparency and enforcement.

    Rodriguez ended up killing the bill on Monday, and with the legislature adjourning Wednesday, the only way to delay the law’s implementation is for the governor to call a special session.

  • Software real-time operating system for artificial intelligence (AI)

    Software real-time operating system for artificial intelligence (AI)

    KLEIN-WINTERNHEIM, Germany – SYSGO GmbH in Klein-Winternheim, Germany, is introducing the upgraded PikeOS real-time software operating system that supports the NXP i.MX 95 SoC from Toradex Inc. in Seattle.

    The upgraded software starts with the i.MX 95 Verdin evaluation kit that brings an integrated solution for artificial intelligence (AI), industrial, and automotive applications.

    Toradex specializes in embedded hardware and software based on Arm architectures. The NXP i.MX 95 SoC has six Arm Cortex-A55 cores operating at speeds to 2 GHz, complemented by an Arm Cortex-M7 as a flexible domain.

    Demanding applications

    Designed for demanding applications, the system includes high-speed interfaces for fast data transfer and connectivity, as well as an integrated safety island for safety-certifiable systems.

    SYSGO’s PikeOS is a hypervisor-based real-time operating system designed for mixed-criticality. It provides safety and security for safety-certified systems.

    PikeOS supports several operating systems, including POSIX, ARINC 653, Linux, and Windows. The standard PikeOS board support package for the NXP i.MX 95 includes drivers for serial and Ethernet.

    For more information contact SYSGO online at www.sysgo.com, or Toradex atwww.toradex.com.

  • 2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 105% and 115%, According to Wall Street Analysts

    2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 105% and 115%, According to Wall Street Analysts

    The S&P 500 (SNPINDEX: ^GSPC) has fallen 8% from its high year to date as tariffs imposed by President Trump have raised the probability of a U.S. recession. Nevertheless, the Wall Street analysts below see triple-digit upside in AppLovin (NASDAQ: APP) and MongoDB (NASDAQ: MDB).

    • Michael Pachter at Wedbush in April set AppLovin with a target price of $650 per share. That implies 115% upside from its current share price of $302.
    • Yun Kim at Loop Capital in March set MongoDB with a target price of $350 per share. That implies 105% upside from its current share price of $170.

    Here’s what investors should know about these artificial intelligence stocks.

    Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

    AppLovin: 115% implied upside

    AppLovin develops ad tech software that enables developers to market and monetize their applications across mobile and connected TV campaigns. Advertising on its platform has traditionally focused on video games, but the company is expanding into other direct-to-consumer categories with its new e-commerce advertising product.

    AppLovin has put a great deal of effort into building its Axon recommendation engine. It began acquiring game studios several years ago to train the underlying machine learning models that optimize targeting, and has since released two major updates. The improvements made along the way have led to superior return on ad spend compared to other targeting solutions, according to Morgan Stanley.

    AppLovin reported strong fourth-quarter financial results. Revenue rose 44% to $1.4 billion and GAAP earnings soared 253% to $0.49 per diluted share. Management also said its nascent e-commerce advertising product hit a billion-dollar run rate in mere months, such that it should account for about 10% of revenue in 2025.

    CEO Adam Foroughi also highlighted successful pilots beyond direct-to-consumer brands. “This opens up a massive opportunity as there are over 10 million businesses worldwide who advertise online that could eventually use our platform profitably. By delivering incremental value, we position ourself as an engine for growth,” he told analysts on the fourth-quarter earnings call.

    Despite recent attacks from short-sellers, Wall Street expects AppLovin’s earnings to grow 45% in 2025. That makes the current valuation of 67 times earnings look reasonable, especially because AppLovin topped the consensus by an average of 26% in the last six quarters. Investors should consider buying a small position in this growth stock today, but triple-digit returns seem unlikely in the next year due to the uncertain economic environment.

    Image source: Getty Images.

    MongoDB: 105% implied upside

    MongoDB provides database and application development tools. Its document-based architecture offers more flexibility and scalability than relational (SQL) databases, which lends itself to use cases like analytics, artificial intelligence (AI), and e-commerce. Document databases are superior when storing large amounts of data that does not fit neatly into rows and columns, and MongoDB is the most popular document database.

    MongoDB reported good financial results for the fourth quarter of fiscal 2025, which ended in January. Its customer count climbed 14% to 54,500, and the number of customers that spend at least $100,000 annually increased 17%. In turn, revenue increased 20% to $548 million, a slight deceleration from 22% growth in the prior quarter. And non-GAAP net income increased 49% to $1.28 per share.

    CEO Dev Ittycheria believes artificial intelligence is a “once in a generation shift that will fundamentally reshape industries.” MongoDB is investing aggressively in its business to capitalize on that opportunity. That includes growing it workforce, shifting focus to larger customers, and it recent acquisition of Voyage, which provides tools that improve the accuracy and reliability of AI applications. Those investments are currently a headwind to profitability, but should lead to stronger results in the future.

    MongoDB currently trades at 6.5 times sales. That is a discount to the three-year average of 14 times sales, and near its cheapest valuation since going public in 2017. But MongoDB also anticipates its slowest revenue growth as a public company in fiscal 2026. Patient investors can buy a small position today, but it would be more prudent to wait for proof AI will reaccelerate sales growth in the future.

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    Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin and MongoDB. The Motley Fool has a disclosure policy.

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.