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Saudi Arabia is preparing to significantly scale back Neom, Crown Prince Mohammed bin Salman's flagship development that sprawls across a Belgium-sized stretch of Red Sea coastline and was once billed as the world's largest construction site. Financial Times is reporting that Prince Mohammed, who chairs the project, now envisions something "far smaller" as a year-long review nears completion. The Line, a futuristic 170-kilometer linear city that served as Neom's centerpiece, will be radically reimagined as a result, the report added. Architects are already working on a more modest design that would repurpose infrastructure built over the past few years. Neom could pivot toward becoming a data center hub, taking advantage of seawater cooling from its coastal location as Saudi Arabia pushes to become a leading AI player. The Trojena ski resort is also being downsized and will no longer host the 2029 Asian Winter Games as originally planned. Construction largely stalled after longtime CEO Nadhmi al-Nasr abruptly departed in November 2024.

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The UK is losing more jobs than it is creating because of AI and is being hit harder than rival large economies, new research suggests. From a report: British companies reported that AI had resulted in net job losses over the past 12 months, down 8% -- the highest rate among other leading economies including the US, Japan, Germany and Australia, according to a study by the investment bank Morgan Stanley. The research surveyed companies using AI for at least a year across five industries: consumer staples and retail, real estate, transport, healthcare equipment and cars. It found that British businesses reported an average 11.5% increase in productivity aided by AI. US businesses reported similar gains, but created more jobs than they cut. It suggests UK workers are being hit particularly hard by the rise of AI, as higher costs and taxes also weigh on the job market. Unemployment is at a four-year high, as rises in the minimum wage and employer national insurance contributions squeeze hiring.

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The video game industry is experiencing something that most consumer-facing businesses would consider remarkable: organized online campaigns from players are actually forcing studios to cancel projects or publicly walk back any association with AI-generated content. Running With Scissors, the publisher behind the Postal shooter franchise, recently scrapped a title after players accused its trailer of containing AI-generated graphics. Goonswarm Games, the developer behind the canceled project, subsequently shut down entirely and cited six years of lost work alongside what it described as a flood of threats and accusations. Sandfall Interactive's "Obscur: Expedition 33" had its Indie Game Awards Game of the Year honor rescinded after the developer said it had considered AI-generated images, even though the final release contained none. Larian Studios, the developer behind Baldur's Gate 3, faced immediate backlash after CEO Swen Vincke mentioned in an interview that the company was using generative AI to "explore ideas" for an upcoming release. Vincke later clarified on X that artists use AI only for reference images the way they would use "art books or Google," and Larian executives eventually stated on Reddit that AI would play no role in final artwork.

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