This Week’s Top 5 Stories in AI

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In this week’s top stories, AI Magazine explains what the GAIN AI Act is and why Nvidia is opposing it
AI Magazine covers the latest AI Act, Microsoft’s AI moves, MIT’s findings on AI ROI challenges, CAIO training and Deloitte’s global AI data centre hub

What is the GAIN AI Act and Why Does Nvidia Oppose it?

The AI chip industry is bracing for another wave of export restrictions as US lawmakers push legislation requiring domestic companies to prioritise American customers over international buyers

The Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 (GAIN AI Act), introduced as part of the National Defense Authorisation Act, would require American developers of AI processors to prioritise domestic orders for high-performance processors before supplying them to overseas buyers.

This development is unfolding as Washington grapples with balancing national security concerns against the commercial interests of US tech companies. 

The Trump administration recently rescinded the Biden-era AI Diffusion Rule, which had imposed similar restrictions on computing power exports through a complex country-tier system. 

That earlier framework aimed to “regulate the global diffusion” of advanced AI chips and models while keeping powerful AI systems within the US and close allies.

Why Microsoft Adds Anthropic to Office 365 Alongside OpenAI

Microsoft will pay to use Anthropic’s technology for some AI features in Office 365 applications, changing from its previous reliance solely on OpenAI for workplace productivity tools.

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The software giant plans to blend Anthropic and OpenAI technology in its Office apps after years of primarily using OpenAI models for features in Word, Excel, Outlook and PowerPoint. 

This is a shift in strategy for Microsoft, which has invested more than US$13bn in OpenAI and served as the ChatGPT maker’s biggest financial backer, according to Reuters.

The decision comes as Microsoft seeks to diversify its AI portfolio amid growing demand for AI capabilities across enterprise software. 

The company is simultaneously developing its own AI models while integrating other providers’ technology, including DeepSeek models into its Azure cloud platform.

“As we’ve said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership,” a Microsoft spokesperson says, according to Reuters.

However, developers working on Office AI features have found that Anthropic’s models outperform OpenAI in specific areas. 

MIT: Why 95% of Enterprise AI Investments Fail to Deliver

Enterprise investment in Gen AI has reached US$30bn-US$40bn globally, yet 95% of organisations report zero return on the initiatives. 

MIT’s five myths about Gen AI in enterprises:
  • AI will replace most jobs soon: Layoffs are limited and mostly industry-specific and executives remain divided on future hiring
  • Gen AI is transforming business: Adoption is high, but only 5% of firms scale AI into workflows – most sectors show little change
  • Enterprises are slow adopters: In reality, 90% have seriously explored AI purchases, showing eagerness, not hesitation
  • The best AI tools succeed on their own: Success comes when tools are customised, integrated, and tied to measurable outcomes

New research from MIT called ‘The Gen AI Divide State of AI in Business 2025’, examining 300 public implementations, reveals what researchers call the “Gen AI Divide”: a split between the small minority achieving substantial value and the majority trapped in failed pilot programmes.

The study finds that only 5% of integrated AI pilots extract measurable profit and loss impact – and the divide stems from implementation approach rather than model quality or regulation. 

Meanwhile, generic tools like ChatGPT and Microsoft’s Copilot show widespread adoption, with over 80% of organisations exploring them and nearly 40% deploying them. 

However, these primarily enhance individual productivity rather than organisational performance.

Enterprise-grade systems tell a different story. While 60% of organisations evaluate custom or vendor-supplied tools, only 20% reach pilot stage and merely 5% achieve production deployment. 

Most fail due to brittle workflows and misalignment with daily operations.

The UAE’s First Chief AI Officer Training for Executives

Companies around the world are appointing Chief AI Officers (CAIOs) to navigate the complexities of AI deployment, regulatory compliance and competitive advantage. 

Announced at the Machines Can See summit during Dubai AI Week, Abu Dhabi School of Management and Polynome Group launch the AI Academy to train leaders in AI strategy and deployment | Credit: Middle East AI News

This executive role has emerged as an infrastructure in the AI economy, with demand outstripping the supply of qualified candidates who can bridge technical expertise with strategic business acumen.

In response, the UAE has launched the region’s first executive training programme for CAIOs, responding to surging demand for senior AI leadership as Middle Eastern organisations ramp up AI investments.

The AI Academy programme is a collaboration between Abu Dhabi School of Management and Dubai-based AI solutions provider Polynome AI Academy. 

It will prepare executives to oversee enterprise AI deployments and governance frameworks at a time when research shows 69% of Middle Eastern organisations plan to boost AI spending.

Inside Deloitte’s Global AI Data Centre Hub

Deloitte is establishing a global AI Infrastructure Centre of Excellence as companies struggle to build the specialised data centres required for AI workloads.

The professional services firm is responding to mounting client demand for infrastructure that can handle AI’s unique requirements

Unlike traditional computing, AI applications need vastly more processing power, generate significantly more heat and require different security protocols.

“As AI adoption accelerates across industries globally, organisations are demanding infrastructure that they can scale with speed, security and efficiency,” says Heather Stockton, Deloitte Global Consulting Services, Technology and Transformation leader.

“Our AI Infrastructure CoE enables clients to move from experimentation to enterprise-grade AI with confidence, while enabling performance, resilience and long-term scalability.”

The Centre forms part of Deloitte’s Silicon2Service offering, which takes clients from foundational silicon components through to business-ready AI solutions. 

Romal Shetty, CEO, Deloitte South Asia

“AI is reshaping industries and redefining competitive advantage and the infrastructure that powers it must be equally transformative,” says Romal Shetty, CEO of Deloitte South Asia.