Sponsored by

Good morning readers. They’ve done it again. The Kansas City Chiefs, led by quarterback Patrick Mahomes, staged yet another comeback in a nail-biting playoff clash against the San Francisco 49ers. Mahomes orchestrated a masterful comeback, clinching a historic win in the second Super Bowl ever to reach overtime. With KC’s QB leading the charge, the Chiefs solidified their dynasty status, joining an elite level of football greatness. Despite setbacks, the Chiefs' resilience and Mahomes' magic sealed their back-to-back championship triumph, rewriting NFL history once again.

Let’s jump into today’s storylines.

In today’s digest:

• Companies are using AI software to monitor your workplace chats

• Headline Hustle: Secret Hamas military compound found under U.N. agency, Musk is ordered by SEC to testify in Twitter investigation, Senate advances $95 billion aid package

• The rise and (sharp) fall of Signa Property Group

• The Week Ahead: What to Expect

• Pulse Points: What’s Trending

AI

Companies are using AI to monitor your every word

George Orwell is probably rolling in his grave right now.

In a world where the line between work and privacy blurs more each day, major corporations are now enlisting AI as the latest member of their HR team.

Meet Aware, the startup that’s making waves by analyzing every GIF, emoji, and "per my last email" sent on Slack, Microsoft Teams, and Zoom. Founded in 2017, the company has become the go-to for giants like Walmart, Delta Air Lines, and Starbucks, providing them with the digital equivalent of reading the room—if the room was the size of a small country.

Pioneering AI surveillance

Since its inception in 2017, Aware has swiftly risen to prominence, boasting a clientele that reads like a who's who of corporate giants. From retail behemoths like Walmart to airline giants like Delta Air Lines, companies across industries have eagerly embraced the company’s AI tools to monitor their workforce's digital interactions. By leveraging machine learning algorithms, Aware's technology claims to detect everything from workplace harassment to noncompliance with company protocols, all in real-time.

The allure of such capabilities is undeniable. Companies can now gain unprecedented insights into employee sentiment, allowing them to fine-tune strategies, policies, and initiatives accordingly. Imagine knowing exactly how your workforce feels about that new diversity training program or the latest corporate restructuring. With Aware's AI at their fingertips, corporate leaders can delve into the collective psyche of their organization like never before.

But with great power comes great…you know how the saying goes. While Aware's revenue charts may be skyrocketing, so too are the concerns surrounding the ethical implications of AI surveillance.

• Critics warn against the dangers of reducing employees to mere data points.

• They also mention a lack of transparency surrounding AI-driven decision-making processes. Who decides what constitutes "toxic" behavior? And what recourse do employees have when algorithms flag their interactions, potentially leading to disciplinary action?

Looking ahead…as the debate rages on, one thing remains clear: the need for transparency, accountability, and regulatory oversight has never been more pressing. For in the quest to harness the power of AI, we must never lose sight of the values that make us truly human.

SPONSORED BY BAY AREA TIMES

Visual-based newsletter on business and tech

We explain the latest business, finance, and tech news with visuals and data. 📊

All in one free newsletter that takes < 5 minutes to read. 🗞

Save time and become more informed today.👇

Headline Hustle

🇺🇳 A secret Hamas military compound found under U.N. agency headquarters. A recent discovery by Israeli forces revealed a Hamas intelligence hub located beneath the UNRWA headquarters in Gaza City, drawing attention to the militant group's use of civilian infrastructure for military purposes. This complex, powered by UNRWA's electricity, highlights the challenges in separating humanitarian operations from conflict activities. The exposure of this operation, amidst allegations of UNRWA staff's links to Hamas, intensifies scrutiny on the agency already facing funding freezes from major donors. The situation complicates efforts to provide essential services to Palestinians and raises questions about the accountability and security measures within international aid frameworks.

🔎 Elon Musk is ordered by SEC to testify in Twitter investigation. Elon Musk faces another round in the Securities and Exchange Commission's scrutiny over his Twitter takeover. Judge Laurel Beeler formalized the order, following the SEC's lawsuit compelling Musk's testimony on his 2022 Twitter purchase. The investigation probes into the legality of Musk's stock paperwork and the veracity of his statements. Despite Musk's resistance, Beeler upheld the SEC's authority. The friction between Musk and the SEC dates back to 2018 when the regulator sued him over a tweet.

💰️ Senate advances $95 billion aid package. In a significant move, the Senate progressed with a $95 billion aid package for Ukraine, Israel, and Taiwan, signaling potential success after a weekend of negotiations. Majority Leader Chuck Schumer emphasized dedication to the bill's completion, with Sunday's vote of 67 in favor marking progress toward final approval. Negotiations have navigated procedural hurdles, with expectations of further deliberation before a conclusive vote, potentially impacting the scheduled recess. Despite challenges, bipartisan efforts aim to address concerns and ensure timely aid delivery.

BUSINESS

The biggest property crash since the financial crisis (and you’ve probably never heard of it)

In a tale as old as time, ambition meets gravity, and the fall is spectacular.

From a high school dropout to a titan of the real estate world, René Benko's journey reads like a modern-day Icarus tale. His empire, Signa Holding, once a beacon of success with its portfolio of iconic properties and department stores from Europe to the United States, has nosedived into Europe's largest property bankruptcy since the global financial crisis.

Signa’s ascent was meteoric

Benko, a figure both celebrated and controversial, leveraged his charisma and bold strategies to expand Signa's reach across continents. But beneath the gleam of high-profile acquisitions lay a shaky foundation.

It seems that Signa's downfall was a case of too much, too soon. Like a gambler on a winning streak, Benko pushed his luck to the limit, relying on ever-increasing levels of debt to fuel his insatiable appetite for growth. But as any seasoned investor will tell you, debt is a double-edged sword—it can amplify gains, but it can also magnify losses, especially when the tide turns against you.

And turn it did, with disastrous consequences. Signa's aggressive rent hikes and convoluted corporate structures came under scrutiny, exposing the company's questionable practices and breaches of financial regulations. Benko, once hailed as a visionary, found himself vilified as a reckless gambler, his extravagant lifestyle and aggressive management style cited as contributing factors to Signa's demise.

The moral of the story: don’t bite off more then you can chew. After all, in the game of real estate, sometimes the biggest gamble of all is the one you never saw coming.

WEEK AHEAD

What to expect

• Economic stats come out this week: Major economic statistics expected in the next week include updates on inflation rates, retail sales, industrial production, and GDP estimates from the US, Japan, EU, and UK, along with reports on employment, wages, and the Zew report from Germany.

• Earnings season continues: Uber, AIG, Avis, MGM and Shopify report on Tuesday. DoorDash, Dropbox and Roku report on Thursday.

• Biden hosts King Abdullah to find solution to Gaza-Israel conflict: President Joe Biden hosts King Abdullah of Jordan in Washington to discuss finding a lasting solution to the Israel-Gaza conflict, emphasizing a two-state solution with Israel's security guaranteed.

What else is happening:

• The week also marks the beginning of Lent on Wednesday, alongside celebrations such as Mardi Gras, Fat Tuesday, Pancake Day, Valentine’s Day, and the continuation of Lunar New Year festivities.

SNIPPETS

Pulse Points

• A Waymo self-driving vehicle was vandalized and set on fire by a crowd in San Francisco using a firework, according to the Alphabet-owned company.

• Amazon's Prime Video secured exclusive rights to stream an NFL playoff game next season, as reported by a source to CNBC.

• Dan O'Dowd, through his "The Dawn Project" aimed at improving software safety, aired Super Bowl ads urging a boycott of Tesla's products and stock, continuing his critique of the automaker's self-driving software.

• Three influential shareholders, including Tripadvisor under Greg Maffei, Barry Diller, and Elon Musk, are challenging Delaware's dominance over public companies by seeking to reincorporate their businesses in Nevada and Texas, amidst varying shareholder responses and legal considerations.

• Prince Harry settled a legal claim against the Daily Mirror, accusing the tabloid of hacking his cellphone to obtain private information.

• BetMGM and X, previously known as Twitter, announced an exclusive sports-betting partnership, integrating BetMGM's odds and branding into the X platform and linking to BetMGM's site and app.

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 6,000+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.