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Welcome to our weekly edition of AI & Finance™!
Hello friends, here we are at the closing of 2025, and it's time to take a deep breath. Not just because 2025 was such an eventful year, but because history informs us that 2026 is likely to be even more eventful. Particularly when it comes to artificial intelligence, and especially when it comes to AI in highly regualted spaces like the financial services industry. We talk a little bit about the year that was (and the year to come) in our AI & Finance and AI Education columns this week. In Greg Woolf's AI Regs & Risk column, he explains why we should link the sale of Nvidia chips to China with the president's executive order concerning state AI regulations. We're going to take a little break from AI & Finance over the next two weeks, with plans to return (and help our readers catch up on what they might have missed) and resume our normal publishing schedule on Jan. 10. Until then, there's plenty of AI content to keep you warm through the season... CHECK IT ALL OUT BELOW!

Oh, what a year it was, and what a year it will be. Its AI & Finance headlines time, for the last time in 2025. Yes, rather than hit you with a couple of filler "top 10" or "top 5" lists from the year that was, and/or predictions for the year to come, to round out the slow holiday weeks at the end of the year, we're going to take a Christmas vacation. Just so our readers know, we're more Cousin Eddie than Clark Griswold. Anyway, we actually do have a lot to report this week in the way of artificial intelligence and... CONTINUE HERE

In the same week the United States formally approved the export of Nvidia's most powerful AI chips to China, it also moved to shut down state-level efforts to regulate artificial intelligence at home. Two decisions, rarely discussed together, but driven by the same logic: speed matters more than guardrails. One determines who gets access to the world's most valuable compute. The other determines who gets a say in how AI is governed domestically. Taken together, they mark a quiet but consequential shift in how America is choosing to compete and raise an uncomfortable question: what happens when a country dismantles both its external... CONTINUE HERE

The AI we've been using is like Tinker Toys or Lincoln Logs. Who's ready for an erector set?Artificial intelligence is already changing the world around us so quickly, it's hard to believe that this is only a beginning-but when we peek at the next page of generative AI, in particular, we see a technology that may profoundly alter the way we live, work and relate to each other as human beings. Welcome to AI Education, where the erector set we'll be discussing this week, our next page of generative AI we speak of, will be real-time video generation, which, roughly, translates to... CONTINUE HERE

This week's venture capital funding decelerated towards the end of the year, but nevertheless remained brisk, with three transactions in excess of the $100 million threshold. The top reported deal, per FinSMEs, came from San Francisco-based Databricks, a data management and engineering company (dovetailing well with our discussions on trust in AI and AI TRiSM), which raised $4 billion in a Series L at a $134 billion valuation. Databricks will use the funds to "advance product development across three strategic products," according to its announcement: Lakebase, Databricks Apps and Agent Bricks. Our second announcement is from San Francisco-based Harness, which raised $240 million... CONTINUE HERE

This week in AI, momentum collided with constraint as governments, markets, and institutions grappled with the pace of technological change. Federal authorities moved to assert control over AI regulation, investors reassessed AI-linked valuations, and real-world risks-from cybersecurity to misinformation-continued to surface alongside rapid innovation. Regulatory Tensions Rise: Federal and state leaders clashed over who controls AI oversight and how fast guardrails should move. Markets Reprice AI: Stock volatility and infrastructure costs prompted investors to reevaluate AI's near-term economic trajectory. Risk Meets Reality: Cybersecurity threats, fake media misuse, and energy demand highlighted AI's growing societal footprint.The White House moved to centralize AI... CONTINUE HERE

The Financial Services Institute has released a new white paper on artificial intelligence that urges regulators to lean on existing conduct standards rather than create broad new AI specific rules for wealth management firms. The paper argues that frameworks such as Regulation Best Interest and long-standing fiduciary and supervision obligations already address most investor protection issues that arise when firms use AI tools in advice, product selection and client communication. FSI also cautions policymakers against using wide definitions that could sweep routine tools into high intensity oversight, including applications that handle note taking, drafting or basic analytics. Instead, the paper recommends a risk-based... CONTINUE HERE

In this week's episode of the Al & Ivy (AI) Podcast, the hosts explore a pricing strategy that's quietly reshaping how businesses manage cash flow and customer relationships: What is dynamic discounting, and how can companies use it effectively without eroding value or trust? Drawing from a Wharton School analysis, the episode breaks down how dynamic discounting allows buyers and suppliers to negotiate early payment discounts in real time, rather than relying on rigid, pre-set payment terms. When executed thoughtfully, this approach can strengthen supply chains, improve liquidity, and create win-win outcomes for both sides of a transaction. Dynamic discounting is a flexible... CONTINUE HERE

Source: thefinancials.com | Updated every 30 minutes, M-F during market hours
The DWN AI Index™ is a benchmark stock index of the artificial intelligence (AI) sector. The index is comprised of a diversified group of stocks deriving a significant percentage of their revenue from AI applications. REVIEW HISTORICALS HERE
STOCKS COMPRISING DWN AI INDEX:
Amazon (AMZN) * Arista Networks (ANET) * AI (C3.ai) * CrowdStrike Holdings (CRWD) * Duolingo (DUOL) * iRhythm Technologies (IRTC) * Microsoft Corporation (MSFT) * NVIDIA Corporation (NVDA) * Palantir Technologies (PLTR) & * Taiwan Semiconductor * Manufacturing (TSM)

Bozeman • MT • 59715 • USA
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