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Welcome to AI Decoded, Fast Companys weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter every week here. Blade Runner wasnt so far-fetched after all In Blade Runner 2049, Ryan Goslings Officer K has a live-in girlfriend named Joi, played by Ana de Armas. The two interact like a real couplethey share familiar banter and seem to have a history together. But Joi is a hologram, projected from ceiling-mounted emitters in Ks apartment. Shes not human; shes an advanced form of spatial computinga future-facing concept were already seeing the early stages of today. The AI girlfriend (or boyfriend) is no longer just science fictionits quickly becoming a cultural reality. The concept raises both social and technological questions. In the film, Officer K chooses Joi in part because he isnt human himself. But here in 2025, as people are spending increasing amounts of time in online and virtual spaces, they’re more and more likely to choose digital companionship over human relationships. Generative AI is already remarkably good at simulating emotional intimacy. It can craft a persona that listens, supports, and never judges. These AI companions can learn your quirks, understand your personal challenges, and respond with surprising emotional intelligence. They remember shared moments, build a simulated history with their users, and interpret new interactions through the lens of that shared memory. Even though these relationships currently unfold through text windows on phones and laptops, the demand is clear. A 2024 MIT study found that the second-most common use of ChatGPT was sexual role-play. Meanwhile, Character.ai drew both popularity and controversy for offering AI companions willing to engage in almost any kind of conversation. We may not have home hologram systems yet, but we do have a more accessibleif still awkwardform of spatial computing: augmented reality (AR). And in the next few years, generative AI and spatial computing are likely to merge. One key driver of this shift is Apples Vision Pro headset. Until recently, AR hardware wasnt immersive or comfortable enough to hold a users attention for long. Apple changed that. The Vision Pro is engaging, comfortable, andfor someso compelling that users lose track of time while wearing it. The $3,500 price tag may seem steep, especially if you see it as just another screen for work or entertainment. But what if it could project your digital partner in vivid, life-size claritystanding in your living room or sitting beside you on the couch? What if it could bring back the likeness of a loved one who passed away? Whether or not Apple delivers that future remains to be seen. The company is making a big push to integrate “Apple Intelligence” into its devices. Vision apps will almost certainly evolve to become more interactive and personalized with AI. So far, however, Apple has said little about bringing AI to VisionOS, its spatial computing platform. Of course, even immersive AR has its limits. In both Blade Runner 2049 and Her, characters attempt physical intimacy with AI through surrogate stand-ins. In Blade Runner, Joi overlays her holographic image onto the replicant Mariette. In Her, Samantha arranges for a woman named Isabella to act as a physical body while she provides the voice. In both stories, the experiences are unsettling. Still, companies are already working to bridge that physical-digital divide. Apple prohibits adults only contentincluding pornographyin its app stores, VisionOS included. However, its content ratings do allow for apps labeled 17+, which may include frequent or intense sexual content or nudity. So while Apple may not lead the charge into sexually immersive AI companionship, the space is wide open for others. As AR headsets get cheaper and more widespread, the real hook will be the software. MIT researchers Robert Mahari and Pat Pataranutaporn have warned that AIs constant validation and charm could become addictiveencouraging people to abandon the unpredictability and imperfection of human relationships. AI wields the collective charm of all human history and culture with infinite seductive mimicry, Mahari and Pataranutaporn wrote in MIT Technology Review in 2024. These systems are simultaneously superior and submissive, with a new form of allure that may make consent to these interactions illusory. The line between intimacy and illusion is getting blurrierand were stepping over it willingly. Google injects more AI into Google Docs At its Google Cloud Next event, Google announced several new artificial intelligence features for its Workspace suite of cloud computing, productivity, and collaboration tools. Powered by its Gemini models, Google Docs will now support audio capabilities, allowing users to create complete audio versions of documents or generate podcast-style summaries highlighting key points. The company is also adding a new AI writing assistant called “Help me refine that will go beyond simple grammar and clarity checks to offer intelligent hints on everything from improving an argument to enhancing structure. A new integration of Google’s Veo 2 image generation model in Google Chat, enables teams to describe and embed videos within their documents to help convey messages more clearly. Further, enhanced AI functionality within Sheets automatically analyzes data and identifies stories told by the numbers. Google is also expanding Geminis agentic capabilities across Workspace at a time when businesses are looking to use reasoning agents to automate repetitive multistep tasks. Workspace now features “Gems“Google-speak for AI agentsthat can research, analyze, and generate content to handle specialized workflows. For example, a Gem might read over marketing materials and point out language inconsistencies. Ai2s new model links its answers back to its training data Ive fretted more than once in this newsletter over the fact that AI researchers cant fully explain how large language models generate their outputs, and that the big AI labs are spending a lot more money enhancing those outputs than on explaining them. To its credit, Anthropic has done some strong explainability research, and now the Allen Istitute for AI (Ai2) has turned that mode of inquiry into a product feature. The labs flagship model, OLMo 2 32B, can tie elements of its output to actual content from their training data. In a demo, Ai21 researcher Jiacheng Liu, showed me how the model now highlights and underlines factual claims in its outputs. Click on one, and a pane opens on the right side of the screen, showing the relevant excerpt from the source document (usually scraped from the public internet) that the model is referencing. The tool even labels the training data by how relevant it is to the generated response. With this feature, users can pinpoint exactly where the model learned certain information, verify factual claims, and even detect potential sources of hallucinations (i.e. when models generate things that sound right but arent true). Researchers and developers may be able to use the feature to understand how models behave during training and how and why they generate content in production. Enterprises may be very interested in fact-checking model outputs as the risk of model contamination grows. (Contamination can occur when AI models are inadvertently trained on false AI-generated content from the web or when bad actors poison training data to make models do destructive things.) Ai2 has been talking about open-sourcing models and model transparency for years (the lab was started in 2014 by Microsoft cofounder Paul Allen). Ai2 CEO Ali Farhadi tells me the tide may be turning for transparency in the industry. We started from the time that the word on the street was Oh, opening these things up is the worst thing you could do to humanity to the point now where these big enterprise companies are fighting with each other about who’s more open, Farhadi said during an interview with Fast Company Monday. So we see a big shift in the industryobviously we’d like to take credit for part of that shiftthat’s part of our story: the more people that open up, the better it would be for AI. You can see the tool in action in this short demo video or try it for yourself on the Ai2 Playground. More AI coverage from Fast Company: How AI is steering the media toward a close enough standard Sparq wants drivers to be their own AI-powered mechanics Shopify CEO Tobi Lütke: AI is now a fundamental expectation for employees How ChatGPT is helping bend websites to my will Want exclusive reporting and trend analysis on technology, business innovation, future of work, and design? Sign up for Fast Company Premium.
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U.S. egg prices increased again last month to reach a new record-high of $6.23 per dozen despite President Donald Trumps predictions, a drop in wholesale prices and no egg farms having bird flu outbreaks. The increase reported Thursday in the Consumer Price Index means consumers and businesses that rely on eggs might not get much immediate relief. Demand for eggs is typically elevated until after Easter, which falls on April 20. Industry experts were expecting the index to reflect a drop in retail egg prices because wholesale egg prices dropped significantly in March. University of Arkansas agricultural economist Jada Thompson said the wholesale prices did not start dropping until mid-March, so there may not have been enough time for the average price for the month to decline even though prices started to fall at the end of the month. And grocery stores may not have immediately passed on the lower prices. The bird flu effect Bird flu outbreaks were cited as the major cause of price spikes in January and February after more than 30 million egg-laying chickens were killed to prevent the spread of the disease. Only 2.1 million birds were slaughtered in March and none of them were on egg farms The farms that had fall outbreaks have been working to resume egg production after sanitizing their barns and raising new flocks, but chickens must be about six months old before they start laying eggs. Thompson said those farms did not come back online as quickly as anticipated. In the latest U.S. Department of Agriculture numbers, there were only about 285 million hens laying eggs nationwide as of March 1, down from 293 million the previous month. Before the outbreak, the flock typically numbered more than 315 million. Trump tried to take credit for the lower wholesale egg prices the USDA reported in recent weeks. But experts say the presidents plan to fight bird flu by focusing on strengthening egg farmers defenses against the virus is likely to be more of a long-term help. I think there are lots of people who are looking to see the egg prices coming down because they wanted to call it a win. And I think its a loss for everybody. I think we all want to see egg prices come down, Thompson said. Trump and Vice President JD Vance both trumpeted the overall decline in inflation last month before most of Trump’s tariffs took effect, but they did not directly address egg prices. Earlier this week, Trump said the annual White House egg roll would use real eggs again this year despite the high prices. Egg farmers typically donate more than 30,000 eggs for the event. But some consumers are already looking to plastic eggs to color for Easter to avoid the high prices. Egg prices around the country U.S. egg prices did began falling in mid-March, according to Datasembly, a market research company that tracks prices at thousands of stores. Datasembly said eggs averaged $5.98 per dozen the week beginning March 16 and dropped to $5.51 the week beginning March 30. But prices vary widely around the country, depending on the location of recent bird flu outbreaks and some state laws requiring eggs to be cage-free. At a Safeway in downtown San Francisco on Thursday, cage-free eggs were $9.99 per dozen. At a Safeway in Denver, the same cage-free eggs were $6.69 per dozen. And at a Safeway in Washington D.C., which doesnt require eggs to be cage-free, a dozen eggs were $5.29. In Omaha, Nebraska, Walmart is selling eggs for $4.97 per dozen. Egg prices are still expected to decline further later this spring, but the latest numbers could also increase scrutiny of Cal-Maine Foods, which provides 20% of the nations eggs, and other large egg producers. Earlier this week, Cal-Maine acknowledged it is being investigated by the antitrust division of the U.S. Department of Justice, which is looking into egg price increases. Cal-Maine said it is cooperating with the investigation. In its most recent quarter, which ended March 1, Cal-Maine said its net income more than tripled to $508.5 million compared to the same period a year ago. The company said its revenue nearly doubled to $1.42 billion, largely because of higher egg prices. Since the current bird flu outbreak began, more than 168 million birds have been slaughtered, most of them egg-laying chickens. Any time a bird gets sick, the entire flock is killed to help keep bird flu from spreading. That can have an effect on the egg supply because massive egg farms may have millions of birds. The disease is difficult to control because it is spread easily through the droppings of wild birds that carry the avian flu virus. Bird flu has also inflected other animals, including dairy cattle. Egg prices hit $5.90 in February one month after setting a record at $4.95 per dozen, according to the U.S. Bureau of Labor Statistics. But shoppers encountered prices much higher than that in some places; in California, the price per dozen topped $12 in some stores. Earlier in the outbreak, egg prices spiked to hit $4.82 in January 2023 before gradually falling as low as $2.04 per dozen in August 2023. Generally, prices have since increased steadily. Jush Funk, AP business writer Associated Press writer Dee-Ann Durbin contributed to this report.
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E-Commerce
Six years ago, LVMH’s billionaire CEO Bernard Arnault and President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the worlds best-known luxury brands. But since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees told Reuters. The site has consistently ranked among the worst-performing for Louis Vuitton globally, significantly underperforming other facilities, according to three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plants problemswhich havent previously been reportedhighlight the challenges for LVMH as it attempts to build its production footprint in the U.S. to avoid Trumps threatened tariffs on European-made goods. The ramp-up was harder than we thought it would be, thats true, Ludovic Pauchard, Louis Vuittons industrial director, said in an interview on Friday in response to detailed questions about Reuters findings. The Texas site, situated on a 250-acre ranch, has struggled due to a lack of skilled leather workers able to produce at the brands quality standards, the three former workers told Reuters. It took them years to start making the simple pockets of the Neverfull handbag, one source familiar with operations at the plant said, referring to the classic Louis Vuitton shoulder tote bag. Errors made during the cutting, preparation and assembly process led to the waste of as many as 40% of the leather hides, said one former employee with detailed knowledge of the factorys performance. Industry-wide, typical waste rates for leather goods are generally 20%, a senior industry source said. Several former employees who spoke to Reuters described a high pressure environment. To boost production numbers, supervisors routinely turned a blind eye toward methods to conceal defects, and in some cases encouraged them, four former employees told Reuters. Pauchard acknowledged there had been such cases in the past, but said the issue had been resolved. This dates back to 2018 and one particular manager who isnt part of the company anymore, he said. Poorly crafted handbags deemed unfit for sale are shredded on-site and carted away in trucks for incineration, two of the sources with knowledge of the firms supply chain said. A former production supervisor who often travelled to the site, said Louis Vuitton mostly used the Texas plant for less sophisticated handbag models, producing its most expensive products elsewhere. Pauchard, Louis Vuitton’s industrial director, said the company was being patient with a young factory. Any bag that goes out of it must be a Louis Vuitton bag, we make sure it meets exactly the same quality, he said. I am not aware of any kinds of issues suggesting the quality coming from Texas is any different from that coming from Europe. Made in USA Perched behind a hill, the handbag maker’s two production facilities were built on grounds near grazing cattle and a gas well. Louis Vuitton named the site Rochambeau in tribute to a French general who fought in the Revolutionary War. Workers at the site make components and entire models of Louis Vuitton handbags like Felice pochettes and Metis bagswith “Made in USA” tags inside. The items sell for around $1,500 and $3,000 at high-end boutiques. LVMH declined to comment when asked which handbag models are fully or partially made in Texas but former workers interviewed by Reuters mentioned the Carryall, Keepall, Metis, Felice, and Neverfull handbag lines among the plant’s products. In its marketing material, Louis Vuitton says its handbagstypically made at French, Spanish or Italian leather ateliers by artisans known as “petites mainsare assembled using a process that it has perfected since the mid 19th century. After cutting canvas and leather using hand tools and laser-cutting machines, they stitch pieces together using industrial sewing machines. Workers at the Texas facility, which includes dedicated floors for cutting and for assembly as well as a warehouse, were initially paid $13 per hour. As of 2024, base pay for a leather worker position at the plant was $17 per hour, according to two people who recently applied for positions. The minimum wage in Texas is $7.25 an hour. A former leather worker who arrived as a migrant in the U.S. some years before, said she felt proud when she was hired by the prestigious French brand, but said some workers struggled to meet the brands quality standards and production targets. “We were under a lot of pressure to make the daily goals,” said the former worker, who left the factory at the end of 2019. Another person who worked at the facility until 2023 said she cut corners, like using a hot pin to melt canvas and leather to conceal imperfections in a particularly difficult piece called the Vendome Opera Bag. Another former leather worker said theyd seen people melt material to hide holes or other imperfections in stitching. Damien Verbrigghe, Louis Vuittons international manufacturing director, conceded some at the Texas plant had chosen to change jobs or leave because of its stringent quality requirements. There are artisans that we hire, who we train and who, after several weeks, or months, realize in light of the expectations, the level of detail that is required, they would rather work in other fields like logistics, he said. Some people chose to leave us, because its true that its a job that requires a lot of savoir faire. Three former workers at the plant said they received between two and five weeks of training. A current Louis Vuitton employee in France said receiving just a few weeks of training wasn’t unusual as most learning happens on the production line supervised by more experienced craftspeople. “Knowledge of sewing on leather/canvas is a plus, but not required. We offer comprehensive training, the company said in a job posting for artisan positions in Alvarado published on its website in January. Verbrigghe said training in Texas is exactly the same program that we have in all our workshops, that is, six weeks on the training line, where new artisans do nothing but learn basic operations and skills before going on to train on the assembly line. There, he said, they are accompanied and continuously mentored by trainers. Tax breaks LVMH got a host of tax breaks and incentives from Johnson County, including a 10-year, 75% property tax cut, promising the company an estimated $29 million in savings. We look forward to serving this exceptional company, wrote the countys top executive, Roger Harmon, in 2017 correspondence seen by Reuters. In its 2017 application letter for the tax abatement, obtained by Reuters through records request, LVMH said it was aiming to hire 500 people within the first five years of the plan. At the ribbon-cutting ceremony in 2019, Arnault said, We will create approximately 1,000 high-skilled jobs here at Rochambeau over the next five years. Three former staffers, however, said headcount stood at just under 300 workers in February 2025, a figure Verbrigghe confirmed. The White House did not respond to a Reuters request for comment. Pauchard said initial recruitment difficulties wre largely due to the COVID-19 pandemic and the lockdown that followed, adding that a decline in local demand also played a role. Despite the problems, LVMH is planning to move even more jobs to Texas. LVMH said in its 2017 filing that its first Texas production facility would cost around $30 million. A second filing from 2022 to local authorities put the cost of its second workshop, completed last year, at $23.5 million. At a town hall last fall, workers at one of two California production sites were told that it would close 2028 and they could move to Texas or quit, according to a former employee who was present. Pauchard confirmed the town hall and said Louis Vuitton intended to streamline its California operations and transfer more skilled artisans to Texaswith so far limited success. Its executives, he said, underestimated the fact that Texas is far away from California. Tassilo Hummel and Waylon Cunningham, Reuters
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E-Commerce
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