How Leadership Must Evolve in the Age of AI

How Leadership Must Evolve in the Age of AI


Opinions expressed by Entrepreneur contributors are their own.

If there’s one enduring lesson from my career, it’s this: Bureaucracy is the enemy of innovation. It stifles creativity, clogs decision-making and traps bold ideas in endless loops of approvals. Bureaucracy wasn’t designed to foster progress — it was built to maintain control.

During the Industrial Revolution, it provided organizations with the structure and predictability needed to scale factories and manage vast workforces. At the time, hierarchies and approval systems were revolutionary. But now? They’ve become chains holding us back.

Gary Hamel and Michele Zanini articulated this perfectly in their book Humanocracy: “Bureaucracy was not invented to foster human creativity but to enforce control.” They’re absolutely right. How many times have you seen great ideas dismissed in meetings with the excuse, “That’s not how things are done?” How much energy is wasted navigating processes rather than solving problems? Bureaucracy survives on fear — fear of change, fear of risk and fear of the unknown.

That’s why forward-looking organizations are setting up innovation labs, startup accelerators and creative hubs — places where employees are encouraged to break free from the constraints of “business as usual.”

Now, imagine what happens when everyone is empowered to innovate without limits. That’s the potential of AI that excites me most: It has the power to democratize innovation. Yet this is precisely why AI will encounter resistance — not from competitors but from entrenched bureaucratic systems. AI doesn’t just make workflows more efficient; it redefines them. It questions the very existence of the layers of management created to maintain outdated processes.

Related: Scale Your Business, Not Your Hierarchy. Here Are 3 Ways You Can Harness The Benefits of a Flat Organizational Structure As You Grow.

AI: The great bureaucracy disruptor

AI doesn’t just optimize — it transforms. It flattens hierarchies, demands transparency and dismantles traditional power structures. For those managers who thrive on gatekeeping, AI represents a fundamental threat, eliminating barriers they’ve spent careers building.

Consider this: AI thrives on efficiency, speed and clarity. Tasks that once consumed hours of human effort — like vetting vendor contracts or managing customer service inquiries — are now handled instantly by AI systems. Employees can experiment with bold ideas without wading through endless committee approvals.

But the true power of AI lies in decentralizing decision-making. By analyzing vast datasets, AI equips frontline employees with actionable insights that previously required executive oversight. This creates organizations that are faster, more agile and less dependent on gatekeepers.

AI also brings unparalleled transparency. Where bureaucracy thrives in murkiness, AI thrives in openness, democratizing data and providing visibility into organizational workflows. This transparency builds trust, accelerates progress and creates accountability — areas where bureaucracy has historically fallen short.

Lessons from history: Why AI is different

As I’ve shared many times, resistance to transformation is nothing new. During the Industrial Revolution, workers feared the loss of their livelihoods. The printing press threatened institutions that once controlled information. Today, AI faces similar skepticism as it redefines work and automates repetitive tasks.

The difference this time? Speed. Past revolutions unfolded over decades, but AI is evolving at an exponential pace. Leaders don’t have the luxury of slow adaptation. Organizations that embrace AI as a tool for innovation, not just efficiency, will uncover new opportunities to create, grow and thrive.

Related: 6 Steps to Leading Effectively in an Artificial Intelligence Environment

Leadership in an AI-first world

Bureaucracy has taught leaders to protect the status quo, but in an AI-first world, the status quo is a liability. As I share in my AI executive workshops, leadership today demands a new paradigm that reimagines how organizations operate:

1. From control to curiosity

Leaders don’t need to be AI engineers, but they must ask the right questions: What can AI automate? Where can it uncover opportunities? How can it drive creativity? Leadership in this era requires experimentation and exploration.

2. From authority to empathy

As AI reshapes roles, it will disrupt workflows and create uncertainty. Leaders must be transparent and empathetic, showing employees how AI will enhance their potential rather than replace them.

3. From hesitation to decisiveness

The rapid adoption of AI leaves no room for indecision. Leaders must move quickly to dismantle outdated systems and embrace AI-driven solutions.

4. From delegation to empowerment

AI enables decisions to happen faster and closer to the action. Leaders must empower their teams to leverage AI insights and act independently, focusing on creativity and strategy — areas where humans shine.

5. From obfuscation to transparency

Bureaucracy thrives on silos and opacity. AI thrives on openness. By embracing transparency, leaders can foster trust and hold everyone accountable, creating a culture where innovation thrives.

The road ahead

This isn’t just a shift in leadership — it’s a complete redefinition. The role of a manager will evolve from enforcing rules to facilitating creativity, championing innovation and guiding transformation.

In an AI-first world, hierarchies will begin to collapse as real-time data eliminates the need for multiple layers of oversight, enabling faster and more efficient decision-making. At the same time, workflows will be reimagined as leaders take on the critical task of redesigning processes to seamlessly integrate AI, ensuring organizations can adapt quickly and effectively.

Related: How to Become an AI-Centric Business (and Why It’s Crucial for Long-Term Success)

As AI takes over repetitive tasks, creativity will rise to prominence, with human ingenuity becoming the most valuable and irreplaceable asset within any organization. Moreover, transparency will emerge as a defining advantage, as organizations that embrace openness and accountability gain trust and agility, leaving legacy systems and bureaucratic competitors far behind.

The future of leadership is already here. The question is no longer whether this transformation will happen but who will lead the way.



Source link

How Leadership Must Evolve in the Age of AI Read More »

This AI is the Key to Unlocking Explosive Sales Growth in 2025

This AI is the Key to Unlocking Explosive Sales Growth in 2025


Opinions expressed by Entrepreneur contributors are their own.

Tired of the endless hustle? Most entrepreneurs are working harder than ever, but their results aren’t keeping up. In 2025, that’s about to change. There’s a free, hidden AI from Google that’s a light year ahead of ChatGPT, and it’s poised to revolutionize how you grow your business.

In this video, I’ll show you how I used Google’s relatively unknown AI to double my sales and triple my leads in just one month. You’ll discover how this powerful tool can analyze your email campaigns and website copy to uncover hidden insights that most marketers miss. I’ll walk you through the exact steps, including the specific prompts I used to prime this experimental AI model to think like a top 1% marketing analyst.

Download the free ‘AI Success Kit’ (limited time only). And you’ll also get a free chapter from Ben’s brand new book, “The Wolf is at The Door – How to Survive and Thrive in an AI-Driven World.”



Source link

This AI is the Key to Unlocking Explosive Sales Growth in 2025 Read More »

Here’s How You Can Simplify Google Sheets Processes, Instantly

Here’s How You Can Simplify Google Sheets Processes, Instantly


Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

Ever find yourself bogged down by repetitive tasks in Google Sheets? Imagine if you could automate those mundane chores and reclaim valuable time for strategic initiatives. Repetitive tasks can drain valuable time and resources, hindering productivity.

Logic Sheet is a powerful Google Sheets add-on that’s designed to automate these tasks seamlessly. For a limited time, business leaders can secure a lifetime subscription for just $99, a significant reduction from the regular $720 price.

Logic Sheet empowers users to automate workflows within Google Sheets, streamlining operations and enhancing productivity. By setting up triggers—such as specific times, form submissions, or spreadsheet edits—you can initiate actions like sending emails, updating records, or notifying team members via Slack. This automation reduces manual effort, allowing teams to focus on strategic initiatives.

The platform offers a user-friendly interface with pre-built templates and recipes, enabling quick setup of automation workflows without extensive technical expertise. This accessibility ensures that businesses of all sizes can leverage automation to optimize their processes.

Investing in Logic Sheet not only enhances operational efficiency but also delivers substantial cost savings. The current offer provides lifetime access at a fraction of the standard price, ensuring long-term value and a competitive edge in process automation.

Incorporating Logic Sheet into your business operations can lead to significant improvements in productivity. By automating the more repetitive tasks, your team is able to dedicate more time to innovation and growth, driving your business forward.

It also makes a terrific last-minute gift option for the pro on your list because it doesn’t require shipping.

Seize this opportunity to enhance your business operations with Logic Sheet’s automation features, available now for just $99 (regularly $720) for a lifetime subscription.

Logic Sheet: Lifetime Subscription – $99

Get It Here While You Can

StackSocial prices subject to change.



Source link

Here’s How You Can Simplify Google Sheets Processes, Instantly Read More »

Kylie Kelce’s New Podcast Is Beating Joe Rogan. Here’s How.

Kylie Kelce’s New Podcast Is Beating Joe Rogan. Here’s How.


Kylie Kelce’s new podcast, “Not Gonna Lie,” is currently No. 1 on Apple’s podcast chart. It also hit the top spot on Spotify this month, though at press time, it is No. 2 below “The Joe Rogan Experience.” (Rogan’s podcast, meanwhile, took first place on Spotify for all of 2024.)

Kelce’s podcast’s Instagram bio reads: “One mic. Zero f*cks. No lies.” Reviews call it “relatable” with a mix of “humor, candor, and an unmistakable sense of camaraderie.” The episodes are tailored to a female audience and capped at 45 minutes to prioritize “the timeline of busy women,” she told the New York Times. There is talk about raising children, holiday shopping, and how uncomfortable high-waisted jeans really are.

In its first week, the podcast had a combined 25 million social views and audio downloads, according to Wave Sports + Entertainment, per the New York Times. Wave is the company behind the show that also produces Travis and Jason Kelce’s “New Heights” podcast.

Not bad for a mom of three (currently pregnant with No. 4) who coaches field hockey at her local high school. Of course, she isn’t a random person with no followers, either. She can boast 2.3 million on Instagram.

Kelce is married to Jason Kelce, the now-retired Philadelphia Eagles star, and seven-time NFL Pro Bowler, who she reportedly met on Tinder without knowing who he was (see, relatable). Her brother-in-law, Travis Kelce, is the Kansas City Chief’s tight end who is famously dating Taylor Swift, one of the most famous people in the world.

This has all led to a built-in following and the ability to land some pretty impressive guests.

Her first guest on Dec. 5 was one of Hollywood’s hardest workers, “honorary Philadelphian” Kaitlin Olsen. Besides starring in “It’s Always Sunny in Philadephia” for 17 seasons, Olsen also appears in HBO’s comedy series “Hacks,” which took home an Emmy Award in 2024, and she stars as the lead in ABC’s new hit show, “High Potential.”

Related: I Tried Making an AI-Hosted Podcast with Google’s NotebookLM. It Worked Surprisingly Well.

However, when it comes to landing guests and creating content to beat Joe Rogan, Kelce is clear it’s not about that.

“I’m focused on putting out content that people like to consume,” Kelce told the Times. “If that puts us there for a week, cool. If it puts us there for longer than that, cool. But I also don’t need to feed any conflict that’s created by it.”

There’s been criticism, too, from nepotism to her parenting advice, but Kelce continues to give “zero f–ks.”

“I mean this in the most respectful way,” she added. “I don’t care what other people have to say.”





Source link

Kylie Kelce’s New Podcast Is Beating Joe Rogan. Here’s How. Read More »

You Can Call ChatGPT on the Phone for Advice, Translations

You Can Call ChatGPT on the Phone for Advice, Translations


Have a question for ChatGPT but lack a Wi-Fi connection? OpenAI has introduced a new way to connect with its popular AI chatbot for U.S. users: Call 1-800-CHATGPT or 1-800-242-8478.

OpenAI announced the feature on Wednesday and demonstrated how it works through a YouTube livestream. OpenAI researchers called the number with everything from an iPhone to a flip phone to a landline. No matter the medium, the end output was the same: A female voice saying, “Hello again, it’s ChatGPT, an AI assistant. Our conversation may be reviewed for safety. How can I help you?”

In the live demo, ChatGPT helped identify landmarks that a researcher said he saw on a road trip. In another instance, it provided a different researcher with an English-to-Spanish translation so that she could greet a friend’s grandmother in Spanish.

The move to have ChatGPT available via phone call is part of the company’s goal to make AI “as accessible as possible to as many people,” OpenAI product lead Kevin Weil said in the demo video.

Related: After This 26-Year-Old Got Hooked on ChatGPT, He Built a ‘Simple’ Side Hustle Around the Bot That Brings In $4,000 a Month

Right now each phone number is limited to 15 free minutes of call time, with no disclosed plans to monetize the feature.

Only U.S. users get to call ChatGPT, but OpenAI also announced Wednesday that global users can access the chatbot by sending the 1-800-242-8478 number messages via WhatsApp. In the demo, ChatGPT offered a recipe for a pesto pasta dinner via WhatsApp and modified it to be vegan at the user’s request.

Both calling and messaging features involve talking to ChatGPT without creating an account.

The OpenAI team built this capability within a few weeks, according to Weil.

“They hustled really hard to ship it and it’s awesome to see it here,” he said.

The feature is one of many announcements that OpenAI has made as part of its “12 Days of OpenAI” event. Other new features released by the company under the same event include opening up ChatGPT Search for all users, free or paid, and releasing its text-to-video generator Sora to the general public.

Related: Is ChatGPT Search Better Than Google? I Tried the New Search Engine to Find Out.



Source link

You Can Call ChatGPT on the Phone for Advice, Translations Read More »

5 Ways to Build a Thriving Global Culture in Your Business

5 Ways to Build a Thriving Global Culture in Your Business


Opinions expressed by Entrepreneur contributors are their own.

Teams are more diverse than ever. With advancements in technology, a skilled labor shortage and the booming demand for remote work, work has come to defy borders. Companies that don’t embrace this reality and adapt risk being left behind.

I’ve witnessed this transformation firsthand through my work at DOXA Talent, where we help businesses build high-performing teams leveraging talent from across the world. With team members across the Philippines, Vietnam, Kenya and Colombia, I see how today’s technology and remote work are not just reshaping the future of business but also giving people equitable opportunities to earn a good living.

This journey has taught me meaningful lessons about creating a truly global culture. By blending different cultural perspectives while uniting everyone under a common mission and purpose, we’ve seen remarkable results. Our attrition rate is less than half the acceptable industry standard, and our teams consistently deliver outstanding service with an NPS of 82.

But the most important lesson I’ve learned is that when we put people first and maintain high standards, we create an environment where teams can truly thrive.

Here are five key strategies we’ve discovered for building a successful global culture that brings out the best in your international workforce.

Related: A Culturally Diverse Workforce Could Be a Boon to Your Business

1. Define your global culture

A global culture is fundamentally about creating a shared set of values, principles and practices that transcend geographical boundaries. To this end, DOXA prioritizes a few key values.

One of our most important values is curiosity, which drives us to learn about and appreciate the differences that make each culture unique while encouraging open-mindedness and new ways of working. The next is relationships matter. It’s about seeking to understand and accept our differences. This means honoring the unique traditions, perspectives and practices of every culture represented in our organization, building trust and fostering an environment where everyone feels valued. Understanding the experiences and needs of team members from different backgrounds helps us create meaningful connections and fair opportunities.

2. Recognize cultural differences

One of the biggest challenges in managing a culturally diverse workforce is navigating communication styles, decision-making processes and giving feedback. At DOXA, we recognize these processes are all shaped by cultural norms.

For example, team members in high-context cultures, such as the Philippines, often use indirect communication, while those in low-context cultures, such as the U.S., prefer directness. When it comes to feedback delivery, certain cultures are more to the point, while others tend to soften criticism. The decision-making process also reflects differences, as I’ve observed how some cultures favor egalitarian input and others rely on hierarchical structures. Differences extend to time management as well, with punctuality taking precedence in some cultures while others emphasize maintaining relationships over strict schedules.

Related: 3 Tips for Managing a Cross-Cultural Workforce

3. Build a framework for expectations

Something I’ve found highly helpful is defining our DOXA culture overview, a map per se, which expresses how everyone, regardless of background, is expected to show up within our global culture. This framework sets clear expectations for behavior, communication and decision-making that transcend cultural differences.

Our culture map helps all team members be aware of the cultural nuances that may impact interactions and adapt accordingly. For example, we encourage direct and respectful communication while remaining sensitive to cultural preferences. We also emphasize both relationship-building and accountability to balance task-oriented and relationship-based approaches. Ultimately, our framework is about integration: bringing out the best of every culture while aligning everyone under a common operation and purpose.

4. Adapt your leadership style

Leading a global team very well might require you to adjust your natural approach. I know I’ve had to adapt my style to fit the more reserved and relationship-focused cultures of our Philippine and Colombian teams. This means creating a safe space by asking more questions, listening actively and resisting the urge to jump in, solve or debate. That, in turn, gives others the opportunity to share their thoughts more comfortably.

As a leader, I’ve also adapted my communication style. I’ve had to temper the directness that comes instinctively to me with cultural sensitivity and invest in relationship-building to foster trust. It hasn’t always been easy, but finding ways to respect my team’s cultural differences while staying true to my strengths has been a successful formula.

Related: 3 Ways for Leaders to Embrace the Cultural Quotient

5. Embrace continuous learning

A final piece of advice to businesses looking to blend multiple cultures: Become a student. Seek out mentors who lead diverse teams and learn from their experiences. Study what other companies are doing — within and outside your industry — and take note of best practices you could leverage.

By continuously learning and staying open to new ideas, you can chart a thoughtful path forward. Also, approach this journey with humility. Remember that blending cultures doesn’t happen overnight. It’s a process of understanding, evolving and building a workplace where everyone feels valued and aligned with your company’s mission. Your ability to integrate diverse perspectives and life experiences can be the catalyst for winning in today’s competitive global market.



Source link

5 Ways to Build a Thriving Global Culture in Your Business Read More »

Boost Productivity and Efficiency with This Essential Business Toolkit

Boost Productivity and Efficiency with This Essential Business Toolkit


Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

In the fast-paced world of entrepreneurship, having the right tools can make all the difference. Microsoft Office 2024 Home & Business offers a comprehensive suite designed to streamline your operations and enhance productivity, all for a one-time payment of $169.97 (reg. $249).

Draft polished documents in Word, crunch numbers with precision in Excel, and create presentations that captivate with PowerPoint. Keep your notes and ideas centralized in OneNote, and rely on Outlook to manage your emails and schedules with ease. These applications work together to simplify your workflow, whether you’re a solo entrepreneur or managing a growing team.

With lifetime access and no subscription fees, Microsoft Office 2024 offers reliable, long-term value. Install it on your Mac or PC for seamless integration into your existing setup, and enjoy regular security updates to keep your data safe.

For professionals who need a comprehensive productivity suite that’s as dependable as it is powerful, Microsoft Office 2024 Home & Business is the ultimate solution for tackling your workday with confidence.

Elevate your business operations with this lifetime license to Microsoft Office 2024 Home & Business for Mac or PC for $169.97 — a strategic asset for the modern entrepreneur.

Microsoft Office 2024 Home & Business for Mac or PC Lifetime License – $159.97

See Deal

StackSocial prices subject to change.



Source link

Boost Productivity and Efficiency with This Essential Business Toolkit Read More »

Why Investors Need Emotional Strength More Than a Diverse Portfolio

Why Investors Need Emotional Strength More Than a Diverse Portfolio


Opinions expressed by Entrepreneur contributors are their own.

I am going to say something mainstream or even old-school, but people in the business world consider portfolio stability the most important factor in investing. Is that the right move? If you are a rational investor with a long-term vision, the answer is most likely yes.

But let’s be honest: does it really matter how diversified your portfolio is if you can’t handle your emotions when the market starts crashing and your assets are losing value? Financial success is hard to achieve without emotional resilience (there are exceptions, sure). While diversification is a key tool for managing risk, an investor’s ability to stay emotionally steady is just equally important.

Staying calm is not only about keeping it together when things get rough; it is also about making thoughtful decisions when everything feels like it’s going off the rails. From my professional and personal experience, I have learned that mental resilience is a must. In many ways, it is what actually makes big money things work.

Related: How to Calm Financial Panic During Inflation Surges

Portfolio diversification does not guarantee peace of mind

Perfect diversification has been considered the platinum standard in investing practice. The simple magic behind this statement is that distributing assets across stocks, bonds, real estate or startups helps reduce risk.

When one little (or a big) part loses value, others remain stable or even gain, minimizing overall losses. And we — investors — love when potential risks are going down. This strategy is how business-related people deal with crises, political instability, and other uncertainties.

But here’s the catch: no amount of diversification will shield you from market turbulence. It is just not possible, period. During difficult economic uncertainty, even the most diversified portfolios face massive pressure.

The COVID-19 pandemic in 2020 is an example, as it hit multiple sectors at once. Even those who followed every diversification rule felt the pain. Some assets have recovered since then, while others are still struggling, but at the moment, everyone suffered.

That’s where emotional discipline should be highlighted. Investors who can’t control their emotions often damage their portfolios more than the market itself. Panic selling during a crash or overly optimistic buying at the peak are common mistakes that lead to avoidable losses. Diversification is worthless if you can’t use its advantages with a clear, steady mindset. That makes sense, right?

Related: How to Embrace Life’s Changes and Evolve Your Sense of Purpose

Emotional resilience is a soft skill we all need — but investors more than others

We’re all familiar with soft skills, right? Adaptability, communication and stress management — have become essential for success in business. But what if I told you that investing has its own set of soft skills? Yes, that would not be a surprise. However, one of the most critical is emotional resilience, a skill that plays a key role in decision-making.

Emotional resilience helps investors stay clear-headed, even during market turmoil. When markets are volatile, or a startup faces unexpected challenges, this skill allows you to maintain strategic focus and avoid panic. A calm mind leads to rational decisions — this is what seems logical to me.

Rather than reacting impulsively, an experienced investor uses this skill to analyze the situation and assess its impact on long-term goals. In theory, this approach prevents rash decisions and helps uncover opportunities where others see only risks. Surprisingly, when it comes to real practice, it works exactly the same.

The financial market is all about change — that’s an unshakable fact. Markets rise and fall, startups succeed or shut down, and even the most skillful players can be thrown off by chaotic headlines. In these moments, emotional control becomes the defining skill that separates successful investors from those who succumb to panic.

How do you develop this soft skill?

Emotional resilience is a soft skill, and that means it can and should be trained and cultivated. Here are a few simple methods I use to strengthen this soft skill every day:

  • Create a clear plan. A detailed, well-thought-out strategy reduces uncertainty. When you and your team have a plan, you know what to do in any situation, making it easier to stick to your course. Make sure to have a plan B. C and D, as well.
  • Learn to accept volatility as normal. Markets will always fluctuate — it’s just part of the game that we can’t change. Breathe! Accepting this as inevitable helps prevent emotions from controlling your decisions.
  • Trust in diversification. If you’ve distributed your assets wisely, you already have built-in protection against significant losses. When markets get turbulent, remind yourself of this.
  • Surround yourself with professionals. Working with financial advisors or experienced partners can help lighten the load. External advice often provides a more objective view of the situation.

Emotional resilience and diversification are complementary, traveling different paths toward the same goal. While diversification protects your portfolio from market risks, emotional resilience protects you from yourself. An investor’s health — both financial and psychological — is the foundation for long-term success.

In the end, investing is about staying confident in your decisions, even when everything around you suggests otherwise. Strengthening emotional resilience might just be the best investment you can make in yourself!



Source link

Why Investors Need Emotional Strength More Than a Diverse Portfolio Read More »

Fed Rate Cut: Expert Explains Effect on Mortgage Rates, CDs

Fed Rate Cut: Expert Explains Effect on Mortgage Rates, CDs


Federal Reserve officials cut the federal funds rate, or the borrowing rate that banks charge each other, by 25 basis points or 0.25% on Wednesday.

The central bank’s rate-setting committee, the Federal Open Market Committee (FOMC), announced Wednesday that the target range for the federal funds rate was now 4.25% to 4.5%.

Federal Reserve chair Jerome Powell said at a news conference following the decision that the move to cut rates this month was a “closer call” than previous cuts but ultimately the “right call.” He said the FOMC was balancing between two risks: undermining economic activity in the labor market and undercutting progress on inflation.

Related: Here’s What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

The rate cut follows two preceding cuts, one of 50 basis points in September and another of 25 basis points in November. The September adjustment was the first time the FOMC lowered rates in four years.

Federal Reserve chair Jerome Powell. Photographer: Yuki Iwamura/Bloomberg via Getty Images

Going forward, rate cuts aren’t certain. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the FOMC wrote in a statement.

Dana Menard, CFP, founder and lead financial planner at Twin Cities Wealth Strategies told CNET that these cuts will affect shorter-term CDs and savings accounts, which “will likely fall by the same amount as the cut, with longer-term CDs and rates also being reduced.”

Will a rate cut affect mortgage rates?

A lower federal funds rate ripples out to lower borrowing costs for consumer-facing loans, like credit cards and personal loans. The purpose of adjusting the rate is to keep prices stable and respond to the labor market.

The 0.25% rate cut “will not have any impact on mortgage rates,” says Melissa Cohn, regional vice president of William Raveis Mortgage and a 40-year veteran of the mortgage industry. Rates as of Wednesday were 7.13% for a 30-year fixed mortgage.

Cohn told Entrepreneur in an emailed statement that “mortgage rates are data-driven, and if you look at the data, it doesn’t support much lower interest rates.”

Rates hovering around 7% is “sort of a new normal,” she said.

Related: Barbara Corcoran Says This Is the Interest Rate Magic Number That Will Make the Market ‘Go Ballistic’

Calixto Garcia-Velez, president and CEO at BanescoUSA in Miami told Bankrate that the 30-year mortgage rates are tied to the 10-year Treasury bonds, “and long-term Treasury bonds have been increasing,” which is why “residential loan rates haven’t been falling as much as people have expected.”



Source link

Fed Rate Cut: Expert Explains Effect on Mortgage Rates, CDs Read More »

Some OpenAI Employees Are About to Become Millionaires

Some OpenAI Employees Are About to Become Millionaires


OpenAI has arranged a private stock sale for its staff with SoftBank Group that allows current and former employees to sell their stock to SoftBank at $210 per share, a source told Fortune on Tuesday.

The tender offer, or bid to purchase stock in a company, allows OpenAI employees who were issued stock more than two years ago (OpenAI was valued at nearly $20 billion) to cash in on the ChatGPT-maker’s enormous growth. After a $6.6 billion fundraising round this past October, the company’s new valuation stands at $157 billion, a nearly eightfold increase.

According to Fortune, SoftBank plans to buy up to $1.6 billion in stock from eligible shareholders. The tender offer’s $210 per share price reflects OpenAI’s $157 billion valuation.

Current OpenAI employees will be allowed to sell as much as $10 million worth of shares. If the deal is oversubscribed with more people participating than the $1.6 billion limit allows, current OpenAI employees will take preference over former staff members.

Related: Is ChatGPT Search Better Than Google? I Tried the New Search Engine to Find Out.

This means that former OpenAI employees may not be able to sell the full $10 million worth of stock under this tender offer. However, all current and former staff are guaranteed the ability to cash out at least $2 million worth of stock if they choose, under OpenAI’s rules.

The shareholders have until December 24 to decide if they want to sell their shares, and how many.

SoftBank first invested about $500 million into OpenAI in October.

OpenAI has over 2,000 employees, per Fortune. Data acquired by BI last week shows that salaries for 86 employees at the company under specialty visas ranged from $145,000 to $530,000.

Related: ‘Pressure Cooker’: Why Millionaire Nvidia Employees Are Still Working Until 2 A.M.



Source link

Some OpenAI Employees Are About to Become Millionaires Read More »