Anxiety often goes hand-in-hand with change—and the auto industry’s shift from the internal-combustion engine (ICE) to battery-powered vehicles is no different.

The EV transition has stoked fears of mass job losses and plant closures, especially in regions like the Midwest, where many local economies are tied closely to the auto industry (that’s one reason why the UAW is working to organize nonunion auto plants).

If you’ve shared these concerns, the Chicago Fed has some good news. New research from analysts there reached what they describe as a surprising conclusion: At least until the end of the decade, North America’s auto production footprint isn’t expected to change much at all.

That’s because automakers are converting existing factories to make EVs. In fact, “very few” final assembly plants are slated to open or close in the next several years, according to the analysis. That’s despite the fact that North America’s production mix is forecast to change dramatically: The continent is expected to produce 6 million fewer ICE vehicles and upward of 6 million more battery-electric vehicles by the end of 2029, according to S&P Global Mobility data cited in the report.

“Are carmakers shutting down existing light-vehicle assembly plants and building new ones? It turns out they’re not doing that,” Thomas Klier, a senior economist and economic advisor at the Chicago Fed and a co-author of the report, told Tech Brew. “For the vast majority, the industry is accommodating the pretty remarkable production mix that we’re expecting by reconfiguring existing assembly facilities.”

This outcome wasn’t a foregone conclusion; you need only visit a former auto factory town to see that automakers have been willing to pull the plug before—decisions that can have devastating consequences for local communities and economies.

Keep reading here.—JG

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One million monkeys at typewriters, meet nearly 300 human writers with AI chatbots.

The authors of a recent study published in Science Advances aimed to test the creative capabilities of generative AI tools by tasking hundreds of nonprofessional writers with creating short stories aided by the latest version of ChatGPT. They then asked 600 reviewers to judge that work across measures like usefulness, novelty, and emotional characteristics.

What they found presented something of a “social dilemma.” While the AI tool did improve creativity on an individual level—at least by the metrics the study laid out—it led to less variation and originality across the pool as a whole. That means that people might be incentivized to use AI, with the possible collective result being a sea of sameness.

“In short, our results suggest that despite the enhancement effect that generative AI had on individual creativity, there may be a cautionary note if generative AI were adopted more widely for creative tasks,” the authors wrote.

Keep reading here.—PK

In the next five years, the AT&Ts, T-Mobiles, and Verizons of the world might not be primarily competing against each other, according to a new survey from EY that tracks executive sentiment.

In a first look at survey results shared with Tech Brew, EY reported that 55% of respondents cited “disruptive competition” as a key barrier to profitability and growth in the near future.

While the usual suspects—big telecom companies and mobile virtual network operators that rent their infrastructure—“loom large as perceived competitors,” responses from more than 60 C-suite executives across more than 50 telecom operators indicate that “hyper-scalers are seen as the dominant threat five years out, with satellite companies overtaking virtual mobile players,” according to an EY summary.

That’s borne out in the real world: As Tech Brew reported, Comcast Business recently announced a partnership with Starlink to fill network gaps in ​​rural or otherwise underserved areas. The SpaceX subsidiary is also becoming a leading option for broadband across the cruise industry.

Adrian Baschnonga, EY’s lead analyst for global technology, media and entertainment, and telecommunications, said the survey revealed a gap between what telecoms see as their fiercest competitors now—each other—and what their primary competition will be in a few years.

“Telco executives are looking at a broader landscape, one that doesn’t involve just like-for-like rivals, but rivals with different forms of connectivity, rivals from the technology space,” he told us.

Keep reading here.—KG

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