worse earlier. roughly 1% declines, as well, for the s&p 500 and nasdaq. >> yeah, once again, we're watching the regionalen banks they're getting crushed again. the first public rescue is not stopping the slide also, oil down nearly 5% hurt in part by the likelihood of another fed rate hike tomorrow we'll hit the market-moving stories. first, the latest leg of the bank slide leslie >> hey, kel, regional banks in focus again as the market digested the fallout of the first republic failure and sale to jpmorgan. down a little more than 6% co a coamerica, western alliance, zions and keycorp leading the downs today. it is the real estate exposure, level of uninsured deposits, various factors and variables causing them to sell-off the bearish thesis stems from

the bondholders and stockholders were wiped out in yesterday's season sale to jpmorgan. the market is essentially re-evaluating the downside risk in the event another regional bank sees the same fate. there was a highlight of the big bank balance sheet to acquire the failed bank out of receivership due to cost concerns in a world of consolidation, though, this calls in regional's ability to compete the timing is kind of unfortunate, too, coming off the heels of better than expected q1 earnings last week but right ahead of tomorrow's fed meeting and amid the debt ceiling debacle. in a goldman note to clients, the firm notes the sell-off was driven largely by hedge funds, specifically short pressure. the firm notes the lack of relief rally yesterday when jpmorgan/first republic news was announced sent a bearish signal to the market, guys. >> you mentioned one thing, and

that is the level of uninsured deposits that some of these regional banks have. why is that such a sore point? are investors worried that that money is not sticky money and might flee to money market funds or other higher yielding alternatives >> uninsured deposits, exactly right, tyler, are seen as riskier forms of deposits, because people look at what's going on they feel the jitters. they start to have the concern that, you know, there could be some sort of failure here. uninsured deposits would be the ones most vulnerable. >> so -- >> those are the ones that tend to be more -- to leave the bank first. >> so could bankers, regional bankers, ameliorate that problem by paying more on deposits in other words, if i make more money on my deposit at your bank, i will be less inclined to flee to another kind of product. >> so that's one response. but i think it depends on the risk calculation that each

individual depositor is alookin at because they may pay more, but if the bank fails, the amount is worthless because you have the risk of losing all your capitol if -- capital is uninsured at your bank that's why the fdc is looking at potential reforms, to make people feel like their money is safe in these institutions and they're not going to pull them out. the risk of pulling out these uninsured deposits is that it affects the asset side of the balance sheet. there is a mismatch that's created, and that's the concern the market hasghtiness of the uninsured deposits. >> fascinating answer. leslie, thank you very much. appreciate it. beyond those growing concerns about the regional banks, fears are rising over tech and a.i two companies reporting an impact already, chegg saying it is hurting growth. ibm may use it to replace workers. we have more in the "tech

check. deirdre? >> tchegg is the first company t blame chat gpt and a.i. for slower user growth, and it is probably not the last. we're seeing the flip side of the a.i. boom. microsoft, nvidia, meta, they have billions of dollars to pour into the platform shift and so much to gain for the littler guys, it'll be more complicated chegg ceo says he will fight chat gpt with chat gpt to ultimately make a better product. you hear similar arguments, especially in cybersecurity. a.i. will both be a threat and an opportunity but very quickly, as it turns out, investors are having to figure out if it is a net positive or negative for companies like chegg and industries like edtech, which business models will be eviscerated. where does the value flow? we're only at the beginning of this dual lingo, they're looking at how the business model could be

affected ibm k'quantifying the impact on jobs, saying 30% of jobs could, quote, be easily replaced by a.i. in five years that, again, is just the tip of the iceberg. goldman sachs estimates that 25% of all employment could be automated by a.i that is a quarter of all jobs in america and europe i haven't even mentioned, guys, the writers strike and a.i. concerns there, or a.i., aka, fake selena gomez at the met gala last night. this is all happening very, very quickly. as we were warned but maybe even quicker than many expected. >> yeah. dierdre, stay right there as we talk more about the long-term implications of a.i. for business, but also for society with us now is cnbc's steve ko kovac. this is a broad question, and i think the answer is it is different depending on what the corporation does and is. how will a.i. affect the corporate landscape broadly, and

which industries will it hit the most, the hardest or the best? >> yeah, that's a really tough question because it is specific, tyler, to the different industries let's talk about what's going -- what we're seeing in education, for example. i want to see the grades of these kids for choosing chat gpt over chegg's products we know are right. we already know these things can get wrong. as we see industries like hollywood get affected, as we see industries like ibm and, you know, hr work get affected, how good is chat gpt in these large language models at replacing i'm less confident in that based on what i've seen and how good they are at giving appropriate answers. look, there's a reason why, to dierdre's point, big tech is investing more in this than ever there is a reason why microsoft hasn't put these products into education yet. just a couple months ago, they announced a bunch of cool a.i. tools for office apps, but they're not selling that to education yet because they don't know if it is going to be

helpful for students or if it can be a cheating tool or what they need to get those answers right, tyler. >> i'm going to give you an anecdotal evidence i was at a table that included my son about a month ago two other students, one at a university i will not name, the other a classmate of my son's in high school. i asked them, have you ever used chat gpt for anything? they kind of sheepishly all at once looked down at their asparagus and looked away. i said, so what? yeah, we've used it. the college student was the most forthcoming. he said, yeah, i used it to write an essay for me, and i got a 98% on it. >> wow. >> wow. >> this is -- >> there you go. maybe it is good enough. >> you're in trouble >> i am out of here, man i'm getting out of the top tick. chiney, let me turn to you with that bit of evidence in mind i suppose the overriding question is, on balance, is a.i.

going to be good for society or bad for society? and why? >> that's a really great question and one with a lot of stakes i will say, at this point in time, if we can steer it correctly, putting in the right guardrails and stafety mez smass in place, we could have an optimistic future with this tech not technology however, there's a lot of decisions that need to be made ahead of that to reach that overall scenario what is guaranteed over the next decade is a lot of change. a lot of disruption. we need to be in an environment where we can absorb that and harden our institutions for that, which involves a lot more foresight. we have mentioned here education being a little bit disrupted large language models like chat gpt and these systems, research papers have existed on these systems for years. so we do have time to prepare. we just need to lean on a lot

more into the future we need a lot more cohesion between public and private sectors, so we're not always caught off guard, kind of scrambling to adapt to these technologies >> why do you say that the pluses will outweigh the minuses, fquickly? >> if we look at the historical trend of technology overall, it's led to more jobs. it's created new industries. we've largely been better off as technology has advanced. so if we look at that as our data points, artificial intelligence is going to be far more powerful, some say, than electricity or the wheel. >> dierdre, she says look to the past and take heart for the future >> i could never answer that question i mean, that is the conversation here in the bay area among everyone right now, is it going to be a net positive or a net negative if anyone thinks they can answer it, i just -- they can't there's no way for us to know right now. people are in technology and

say, yes, it'll be used to figure it out. the c hegg ceo says he's going t use it to make a better product, but we don't know. talk about the ramifications the next decade, they're happening right now. they're happening in the stock market with ibm, chegg, many companies to follow. this is being negotiated, and there is no way to know. i'm using the stuff every day, and a lot of the answers from chat gpt and bart, they sound right, like maybe your son's friend who you threw under the bus, tyler, the essay that doesn't stand up to scrutiny i don't know you have to be really careful. i think that's the attack alphabet is taking. >> on the ibm front, they expect to pause hiring for roles as 7,800 jobs could be replaced by a.i. in the coming years this is probably, you know, the first very tangible example of a.i. coming to the white collar workplace. are you surprised at how quickly this has happened, and do you think that this off-the-hand, sort of off-the-cuff comment, he

will walk back from it, or will more companies quickly follow suit >> he hasn't walked it back yet. in fact, his predecessor talked about this all the time. look, i think he's just saying the quiet part out loud. the ceo of ibm, he says that these kind of jobs, they're basically very easily copied over to an a.i. chatbot, for example. think of customer service. that's just a low-hanging fruit kind of job that can be replaced by these this is something people want. as we talk about efficiency all this year, especially in tech companies, what is more efficient, i guess, that's getting rid of a human or not hiring a human and having software do it instead that sounds awful and scary, of course, because that's jobs a human is not getting, but for the company at large, maybe, you know, it is a good thing it protects margins and makes the entire organization run more efficiently. i really think everyone is thinking like mr. christian is thinking, they're just not saying it yet because, look, we're talking about it now

>> right >> final question. shanead, what is the one area of a.i., or is there a particular piece or part of a.i. that frightens you more than any other? >> i get all the hard ones today. i think the uncertainty, we obviously can't plan for a breakthrough, in how capable and advanced these systems get i think is a bit challenging but, to be completely honest, i'm less worried about a.i. and more worried about our social, political and social environment to absorb the changes from artificial intelligence. i think what our foundation is is a little cracked, and that's what alarms me a little bit more. >> i think i agree with you. i think i agree with you strongly i think that's what worries me about this, is the potential for

misuse it's always the unintended consequences that get ya, right? i think we can agree on that thank you very much. shanead, steve, dierdre, appreciate it. still to come, a huge day for the markets today and tomorrow the fed is set to make what could be the most important interest rate decision yet why investors are still dealing with the after effects of the bank crisis. they're desperate for any sign of a pause or pivot. how will powell and company respond? plus, we will speak to pfizer ceo albert bourla the company beating estimates. the catalyst, revenue from its covid-19 vaccine and anti-viral. the outlook is strong despite worry from analysts. full-timely, we'll speak to ashton kutcher, the hollywood star and investor. he'll weigh in on a.i. and streaming, awe as s llthe hollywood writers strike "power lunch" will be right back

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welcome back to "power lunch. stocks heading lower today. the regional bank fears have been lingering around. let's get to chicago to see how the stories are playing with bonds. rick santelli live with the traders. rick >> yes, it's the one-two punch the first punch, job openings and labor turnover, jolts dropping under 9.5 million

the second part of the punch, regional banks under pressure again, whether it is pak west a and option traded. consider intradays of huge drops. interest rates skyrocketing. you see the kbw index there. the lowest level since october 20 let's talk to a trader what a day, do you have a minute >> of course >> when we look at 50,000 puts today on pacwest, what did it do to volatility? how does that figure into the one-two punch of the fed tomorrow and regional bank nervousness? >> gives short pause for a little bit, but we're going here into the fed meeting as if the ball is sticking out there this is well stelegraphed. hedge fund positioning is short now across the board i'd say it had a blip effect. >> jamie dimon was saying, we can take a breath now. he is one of the best bankers in the world. is he a little early

is he incorrect? is there too much in front of the fed meeting? >> the reality is, it's a self-fulfilling prophecy if there's a run, it can keep on going. banks at the end of the day have a tail on them particularly the regional banks have 70% of exposure in commercial real estate, as that starts to decay. it's a function of time. it can get ugly, right at the end of the day, the fed is going to keep stepping in, b backstopping these things, we'll have a rally. >> between you and me, don't listen out there, people, you think the fed is really going to do anything after tomorrow's quarter point, seriously >> i think they're going to keep it stickier than people think. >> stickier, i agree they could leave it up once again, i used a thermometer. or the thermostat. just because you're at 60 degrees and put the setting at 85, you have to go 51, 52, through all of it. so leave it up there and let it do its work, higher rates. >> i a iagree.

they have to wait and look they're not bringing it down. >> i agree with you on that. they're not bringing it down let's leave it with this the slow, unexpected issues in effect of fast-moving rate hike cycle, got to watch out for the moguls, right? >> absolutely. takes a little longer. >> thanks. >> take care. >> tyler, kelly, back to you. >> thank you very much, rick for more on what to expect from the fed tomorrow, let's bring in brian smegly from guggenheim investments he is a new face for cnbc, joining us from the loud and crowded conference in beverly hills. great to see you, brian. if i tell you i think they're going to break things if they hike rates tomorrow, do you disagree >> thanks, kelly great to be with you i disagree that tomorrow's decision is going to make or break the economy. our sense is that the economy is already headed for a recession in the second half of this year, and that reflects the cumulative monetary policy tightening that has already occurred over the

course of the last year. i think from here, what's important is the fed's efforts to convince the broader public that it is committed to fighting inflation and doing what it takes to finish the job. >> brian, by the end of the year, will the fed be loosening money or sort of paused? >> yeah, tyler, i think if we look at the two major tools the fed is using on interest rates, they're likely to hold rates steady in the second half of the year potentially start easing in the first quarter of 2024. that's only if the unemployment rate rises on the order of a percentage point the way the fed is projecting as of the march economic projections that's an ugly scenario for the economy and investors in our view in terms of the balance sheet, the fed is wlikely to keep shrinking the securities, quantitative tightening, and we think it'll continue at least into the first part of 2024. >> brian, curious as someone who worked at the new york fed, kind

of the market's, you know, leadership position, we'll say, within the fed, what do you think they think when they look at the board today and see the regional bank etf down 7.5%? are they calling the fdic? i don't know just take me inside this decision making process 24 hours before their next rate hike decision. >> yeah, without a doubt they're watching closely the price action across markets, particularly the stress in regional bank shares i think what that demonstrates to me, the signal, is that this policy of significantly inverted yield curve will continue to put funding strain on banks. quantitative tightening will draw deposits out of the system. that'll increase funding costs for banks in general, but particularly for the smaller and mid-sized banks. also, we're going to be facing additional regulatory pressure and supervisory scrutiny

the fed is going to take that on board and consider the implications for the availability of credit and the cost of credit to the real economy. we heard chair powell talk about that at his press conference in mid-march, where he said that a tightening of bank credit conditions, which has been under way for more than a year, but will likely continue in the wake of these bank failures, that could very well take the place of alternatively rate hikes the fed might have needed to do in lieu of the stress in the banking sector. >> final question. you say a recession is your base case for the second half of the year is it going to be a recession like in your little baby feelings, or is it going to be deeper and more prolonged? >> yeah, tyler, i think the concern is the fed is committed to fighting inflation, and there are significant, underlining inflation pressures to deal with so the fed is going to be intentionally late in addressing a slowdown in the economy and an increase in the unemployment rate in the past, they've had the

luxury of being proactive because inflation was well contained. this time, i think we face the situation where the fed will again be very late in reacting at that point, investors will have to mark down expectations for earnings and probably pe vary owes. on the fiscal side, i think that's where it also gets interesting. we have a debt limit we'll be watching to see if fiscal tightening comes out of the process. the lack of fiscal and monetary policy support in this recession, has we expect, could prolong the process, but i do want to emphasize that we see a lot of significant fundamental strengths on consumers and the business sector, which should help keep this a more mild recession on balance. >> thank you, brian. guggenheim, appreciate it, sir thank you. >> thank you. a quick programming note and reminder both "the exchange" and "power lunch" will be live from washington for coverage of the fed interest rate decision tomorrow it begins at 1:00 p.m. eastern we have a great lineup. >> senator elizabeth warren and senator kennedy of louisiana will be with us.

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welcome back to "power lun ." dow is down 400. lows down 1.3% nasdaq down 1.2% today regional banks getting hit hard again today, even after jpmorgan's rescue of first republic even after jamie dimon said this part of the crisis is over pacwest down 25% western alliance, 18%. keycorp down 9%. beneath 40 for the first time since october 2020 for regional

banks. >> pippa stevens is looking at this for us. >> hey, oil is getting killed today, down more than 5% it's kind of a triple-header here we have weak demand data out, weak manufacturing, i should say, out of china. got the fed decision tomorrow. we also have questions about this possible recession. with this, it begs the question of no one wants to be in the market it feels like there are no positive, upcoming catalysts with all these potential demand destruction events, people are saying, don't want to make a bet right here we are seeing thin trading volume despite this decline. it feels like, until we get some positive data, whether that be from china or the state of the global economy, there's not really going to be all that much of a turnaround. >> do these places make another production cut >> production cut from opec? i mean, we'll see. it does become the wild card they are meeting again in june we've seen that they have been much more active than in prior

years in terms of anticipating production cuts. >> am i wrong? >> they cut the beginning of april, but people have basically forgotten at this point because prices are well below. we were at $76 the friday before that cut was announced on the sunday now, we're at $72, i elieve, o wti last i checked that's all but been erased at this point we have seen they're much more proactive than in years past i also do wonder if there might be some kind of a growing tension there. this is more speculation, but given that russia is sending record amounts of oil now to china and india, does that begin to alienate some other members of opec because those are seen as the key growth markets for countries like saudi arabia? longer term, can they hold on to this, you know, policy, these production cuts, if some producers are benefitting more than others? >> running around them. >> yeah. i mean, there's no indication of that yet, but there has been tensions between saudi arabia and russia, specifically, in the past you know, when they do have cuts

implemented, we've seen this reorder of global oil flows, at a certain point, you have to wonder if maybe they'll change their tune a little bit. >> great point thank you, pippa pippa stevens. still ahead on "power lunch," pfizer's earnings results show the drugmaker leaning heavily on the covid drugs, but analysts aren't thrilled the stock is down 24% so far on the year we'll spk t c nt.eatoheeoex ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. ♪ ♪ why are there two extra seats?

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welcome back i'm courtney reagan. here's your cnbc news update at this hour. the biden administration will send over 1,000 troops to the u.s.-mexico border ahead of an expected migrant surge following tend of a coronavirus pandemic-era restriction now, the military personnel will do data entry and other administrative tasks so customs and border protection can focus on field work. the troops will be sent down for roughly 90 days, though their presence can be extended if necessary. interstate 55 reopened in illinois following a 70-car pileup that left multiple dead and more than 30 others injured. the pile-up came after a dust storm reduced visibility in the area state police say excessive winds

blew dirt from farm fields across the interstate. some like it hot, leading the way in the tony award nominations. the musical pulling in 13 nominations, including a nod for best musical three other musicals got nine nominations. kelly, i haven't seen any of them back to you. >> i'm with you. try to keep tony -- tony is broadway >> yeah. >> got it. >> last i saw was "a beautiful noise" with neil diamond loved it. >> the carroll king was, that was probably years ago now >> all right i am, i said pfizer topping expectations this morning with a beat on earnings and revenue, despite a decline in sales driven by lowered demand for the covid action as the world transitions into a new phase of managing the virus, the company expects growth to be driven by a large number of product launches in the coming year the stock down 24% this year, one of the worst performing non-financials on the s&p 500. on that cherry note, let's bring in pfizer's ceo, mr. bourla,

welcome back good to have you with us. >> thank you for having me. >> how is the business going covid feels like it is less of a me menace and your revenue in covid vaccine products are down. >> yeah, they were down. the non-covid business grew 5%, which is very strong growth. as you said in your introduction comments, things are moving into the post-covid crisis era. we expect covid would not be any more the epicenter of what we do still, the covid products will remain two of the largest products we have had we have having many other products we are about to launch 19 new products in the next 18 months 19 new products. that's something no one has ever done before, according to my knowledge. but we are up to the challenge, to bring the products, those medicines to the places that need them. >> you've grown your pipeline both by internal research and

also by acquisition. i assume you're going to continue to do that. as the company maybe reorients away from the tight focus on covid, what areas of the business will be the growth engine will it be vaccines? will it be oncology? will it be antivirals and antiinfectives >> pfizer is a big plane, so you need multiple engines to fly but to be -- to respond to your question, i think that our next focus, we have invested $43 billion in proposed acquisition of technology called adc we think that we can take on this technology. in our capabilities, manufacturing, clinical development and commercialization, okay, bring

your products to places that need them. >> so the two areas in pharma more broadly, albert, that people seem excited about is alzheimer's and weight loss. are either of those areas where pfizer is going to be involved in a big way >> we are involved in a big way in weight loss right now we have a program that -- we have two candidates that we are investigating. by the end of the year, we'd select the winner and move it to, very quickly, to phase three status we are very excited about that with alzheimer's, we have an outsourced a lot we participate with 25% equity in the company working on alzheimer's. >> i'm also curious, to go back to covid for a second, i thought i saw an eu deal which would make you the only provider of covid vaccines in europe going

forward. is that true >> we are negotiating with eu and are speaking in very good faith. we are discussing with all member states. i don't want to make any comments because this is still ongoing. once this is concluded, then we will disclose all the details. >> back to the weight loss drug. the idea of an oral medicine certainly has its advantages over an injection, which some of the other products, lily's products, among others, are. how -- i'm going to ask you to go out on a limb here, and it may be too uncomfortable, but let's try. i'll hold your hand if you'll hold mine. how big a drug could this weight loss drug be, and what would the pricing look like if you've got t gotten that far? >> no, we haven't decided the price. in general, based on the current things, the use, we think this would be likely the largest category we expect that it could be as big as a category, not our product, as a category, close to

$90 billion. i think maybe one-third of that would be the orals so this is the area we plan to be in. >> all right albert bourla, great to see you, sir. thank you, again, for coming by, stopping by cnbc. >> thank you very, very for having me. >> very grateful to you. another name moving on earnings today is uber, on pace for its best day of the year after smashing estimates for q1. more of today's movers coming up there is uber up 11% this afternoon as the market tone tries to improve somewhat. as we head to break, cnbc is celebrating asian-american and pacific islander heritage throughout may, sharing stories of business leaders in their community. here is open table's ceo, debbie soo. >> i'm proud to be asian-american because of my ability to straddle two different worlds i grew up in a chinese-taiwanese household with very different cultural norms than when i was at school or with my friends

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welcome back "power lunch." want to get you caught up on the markets. looking better now, maybe a little worse again dom chu, down right now. >> what's happening with the stocks on the move, no doubt where it is. it's the regional banks, arguably the story of the day so far. you have pacwest and western a i license down 17% to 25%. two regionals that have been halted for trading multiple times today because of volatility the overall negative sentiment is also working through other lenders, as you can see, as well bank of hawaii, zions, even the bank etfs. then you have ride-sharing and food delivery giant, uber, up big after a smaller than expected loss on better than expected revenues. helped in large part by a jump in people taking more rides and more trips then we're going to end on a drop in shares of arista

networks down, despite a revenue beat, and what is viewed as strong guidance. but they did comment that the company sees a cool off in spending from larger cloud computing customers, cloud titans shares down 14%. i'll send things back to you. >> dom chu, thank you very much. coming up, ashton tokutcher a.i. ambitions the capital fundraising of hundreds of millions to invest in the next tech frontier. we'll hear from ashton himself about that mos ri aywood writerstkend re when "power lunch" returns. m to find great talent. but with upwork, there's highly skilled talent from all over the globe. right at your fingertips. ♪ this is how we work now ♪ i was having relationship issues with my old bank. it was just take, take, take. so i moved to sofi checking and savings. get up to 4.20% apy, and earn up to $250 when you set up direct deposit. sofi get your money right.

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everyone is talking about a.i. and the role it'll play in the future of business and work and humankind. it's a huge topic at the milk and global summit in beverly hills. actor and investor ashton kutcher announcing his sound ventures raised $240 million to invest in a.i. he and his partner at sound ventures, epstein, join julia borstein hi, julia. >> thanks so much, tyler i'm so excited to be joined by the general partners at sound ventures you made this announcement, $240 million focused on a.i., and you announced three key investments including open a.i. from chat

gpt, as well as stability and other big players in the space what is your thesis and plan for this fund? >> you want to answer? >> absolutely, of course so for this fund, it is really focused on the foundational model within a.i we believe that we're really only having a handful of players that ultimately emerge so few companies have the technical talent and access to data and compute sounds is in a unique space because we can invest in competitors. that is rare within venture. we're essentially taking an ecosystem bet with our investments in open,anthropic, a model will emerge and we want to be in all the players that are likely. >> you were on my panel yesterday. there was talk about the potential for a.i. here's, there's a lot of talk about the valuations being very high are you concerned about the valuations being high at this point? >> so i think that this looks a

lot more like web one, when you had had yahoo, ask jeeves and other search engines these models are reinforcing i think the likelihood that one, two or maybe three of the models become the persuasive model is really, really high. with that being the case, i think that there's not really a valuation you'd look at, that you would balk at relative to revenues none of these companies really started capturing revenues yet everybody likes to mark a company relative to its revenues or relative to its public pop. we have never seen anything like this before. i think every company in the next 5, 10 years is going to be an a.i. company. the same way that, if you look at commerce, you're a commerce company ten years ago and you weren't investing in ecommerce as a solution, you're probably

not a company anymore. so i think every company is about to become an a.i. model, and if there are two to three companies that are the base layer, the foundational layer of that, the tam is so large that marking the value of a company base >> now, and notably in the last mobile wave of the internet, you invested in uber, airbnb, spotify, among many others, which really turned out to be applications that defined that sort of mobile era of the internet i'm curious how you see this era of ai evolving, especially from a consumer standpoint. >> i think whether it's the same exact kind of platform shift we saw in 2008 and 2009 which is interesting because we were actually coming out of a recessionary environment a lot of people got wiped out in that scenario, and all of a sudden, there were these extraordinary emergence of this

new platform that enabled things that were never possible before. we all have gps in our pockets and cameras in our pocket. we were all able to build companies that never could have existed before the same thing is happening now. we're going into a recessionary environment. we have a massive platform shift taking place if the last wave of software is disrupted in unskilled labor, we know this is disrupting skilled labor. this is a beautiful thing because it democratizes access and skills -- not everybody can get a lawyer at an affordable price today. not everybody can get a doctor at an affordable price, a pediatrician, a constutor. these skills are now being democratized which is going to unleash brand-new business models that never existed before, and we're only at the very beginning of that right now, and this next wave of applications is going to be

massive, and i think it's happening right now right before our very eyes. >> kelly, you want to jump in here >> that's a fascinating point, and and ashton, this is for you first, and they have been effie. you were the big twitter guy back in the day. are you on blue sky now? do you even care about social media? i would like effie to answer that too, but first, where are you socially active these days what has the new potential or is the whole space kind of boring >> oh, social media. so -- so i still utilize social media. i think social media is really valuable, and i truly do believe in the pieces of democratizing access to information, and i think that that is what social media provides it provides environments for great debates. it provides environments for access to information that most people don't have.

it provides access to cultural trends, and i think all of that is incredibly valuable i think it's about to be disrupted by generative ai the question will be, is that human or is that a robot that's the mass transition that's about to take place i still use all the -- i still use twitter. i still use linkedin i still use instagram. i use these tools, but i think i use them in a very different way than i used to use them, and i think that that is only going to continue to evolve over time >> i completely agree. i actually think those are really interesting uses for ai around companionship, and when you think about having your best friend in your pocket or your tutor or pediatrician in your pocket, there will be, i think always a place for social media, but it will evolve in the way that people leverage it will evolve because of this best friend you have in your pocket.

>> i think one more thing on that front that's really important to consider is that when these social media companies were growing, they didn't really think about the seco secondary side effects of what social media could create with misinformation, with toxicity, and i think one of the things that's really promising about this ai bill is the founders of those companies are really thinking about those things. i have a nonprofit, thorn, and we identify child sexual abuse material, help report it and remove it from the internet, and these generative ai companies are being extraordinarily forward thinking about that. they're being forward thinking about how their platforms are contributing to misinformation they're being forward thinking to a lot of the secondary elements and utilizations of what they're doing, and how they can mitigate those, and actually utilize safety by design in the creation of their companies, and i think that's really promising in a way that some social media companies still are.

>> it's interesting how ai both can play into that misinformation, and also catching some of these dangerous things online. another area where there's a lot of concern about ai here in california is in terms of ai replacing jobs both for writers and for actors the writers strike just started today, and i know both the writers and the screen actors guild have raised concerns about the role that ai might play in reducing employment. what's your take on this action as an actor yourself >> i'm fully prepared to be replaced no look we're not at general intelligence, like, i think it's a big mi a big misnomer and there's a fear of artificial intelligence and that comes with a lot of risk that has to be highly considered we're not there yet. we have generative ai. it can produce an output, but

it -- entertainment is a human-consumed entity, and we'll always need human beings in the process to actually understand the emotionality of the content. that's the value of it we need directors that understand the value of it we have directors and we have actors that voice animated films because there's an emotional level -- there's emotional content and understanding that nuance is extraordinarily important. we're going to increase the volume of content that's created drastically. we're going to be able to personalize the content that is created. i have a friend who's a writer, and he's written six books he fed chatgpt something and said, write my next book and it gave him a decent output, and he said, i'll send you the personalized copy of this book

that is only able with ai. the writers are going to utilize it and make themselves better, and the writers that don't won't, and might not have work. >> fascinating to see how this plays out. i'm so sorry we're out of time i could keep going with this conversation much longer et effie, and ashton thank you very much for talking us to today iis bzyr to you. >>t auz place out there. thank you very much, julia we will be right back. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

welcome back, everybody. dow is about 116, the low. >> tomorrow is the big fed day tune in tomorrow for our big cnbc special the exchange will be live from washington starting at 1:00 p.m. thanks for watching. >> "closing bell" starts right now. thanks so much i'm scott walker live from post nine here at the new york stock exchange this make orbreak hour begins with this big day, and the fed countdown decision less than 24 hours away so much riding on that outcome stocks already jittery, whether it's about banks waging on sentiment or data in a weakening u.s. economy here's your scorecard with 60 minutes to go in regulation. dow under some pretty heavy selling pressure as you know by now, so much for the s&p closing in on 4,200. it was just on the doorstep. it's back way off that round number now nasdaq giving back