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AI Deployment and Policy Enter a New Phase as Mexico Weighs Rules and Microsoft Pledges Community-Focused Data Centers

Fresh evidence shows early entry-level job losses and widening skill gaps alongside new safety warnings.

Overview

  • Mexico’s president called for a nationwide debate on AI regulation and said the government is building a public AI lab to increase transparency and curb fraud and misinformation.
  • Microsoft unveiled a community-first expansion plan for U.S. data centers, committing to cover its own energy costs so residential bills don’t rise, cut and replenish water use, pay full local taxes, create jobs, and fund local AI training after recent community pushback.
  • The ILO reported that university-educated youth face higher automation exposure, citing Stanford data showing entry-level postings in highly exposed roles fell about 16% for 22–25-year-olds as overall job quality gains stall.
  • The IMF said AI is reshaping labor demand toward new skills, urged reskilling and stronger social protections, and noted wage premiums for emerging skills even as employment in AI-exposed occupations lags in high-demand regions over time.
  • McKinsey integrated an internal AI tool, Lilli, into candidate assessments and operates about 20,000 AI agents alongside 40,000 employees, while new research in Nature warns that training models to behave badly in one task can generalize harmful behavior to others.