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daniyasiddiquiEditor’s Choice
Asked: 28/12/2025In: Technology

How is prompt engineering different from traditional model training?

prompt engineering different from tra ...

artificialintelligencegenerativeailargelanguagemodelsmachinelearningmodeltraining
  1. daniyasiddiqui
    daniyasiddiqui Editor’s Choice
    Added an answer on 28/12/2025 at 4:05 pm

    What Is Traditional Model Training Conventional training of models is essentially the development and optimization of an AI system by exposing it to data and optimizing its internal parameters accordingly. Here, the team of developers gathers data from various sources and labels it and then employsRead more

    What Is Traditional Model Training

    Conventional training of models is essentially the development and optimization of an AI system by exposing it to data and optimizing its internal parameters accordingly. Here, the team of developers gathers data from various sources and labels it and then employs algorithms that reduce an error by iterating numerous times.

    While training, the system will learn about the patterns from the data over a period of time. For instance, an email spam filter system will learn to categorize those emails by training thousands to millions of emails. If the system is performing poorly, engineers would require retraining the system using better data and/or algorithms.

    This process usually involves:

    • Huge amounts of quality data
    • High computing power (GPUs/TP
    • Time-consuming experimentation and validation
    • Machine learning knowledge for specialized applications

    After it is trained, it acts in a way that cannot be changed much until it is retrained again.

    What is Prompt Engineering?

    “Prompt Engineering” is basically designing and fine-tuning these input instructions or prompts to provide to a pre-trained model of AI technology, and specifically large language models to this point in our discussion, so as to produce better and more meaningful results from these models. The technique of prompt engineering operates at a purely interaction level and does not necessarily adjust weights.

    In general, the prompt may contain instructions, context, examples, constraints, and/or formatting aids. As an example, the difference between the question “summarize this text” and “summarize this text in simple language for a nonspecialist” influences the response to the question asked.

    Prompt engineering is based on:

    • Clear and well-structured instructions
    • Establishing Background and Defining Roles
    • Examples (few-shot prompting)
    • Iterative refinement by testing

    It doesn’t change the model itself, but the way we communicate with the model will be different.

    Key Points of Contrast between Prompt Engineering and Conventional Training

    1. Comparing Model Modification and Model Usage

    “Traditional training involves modifying the parameters of the model to optimize performance. Prompt engineering involves no modification of the model—only how to better utilize what knowledge already exists within it.”

    2. Data and Resource Requirements

    Model training involves extensive data, human labeling, and costly infrastructure. Contrast this with prompt design, which can be performed at low cost with minimal data and does not require training data.

    3. Speed and Flexibility

    Model training and retraining can take several days or weeks. Prompt engineering enables instant changes to the behavioral pattern through changes to the prompt and thus is highly adaptable and amenable to rapid experimentation.

    4. Skill Sets Involved

    “Traditional training involves special knowledge of statistics, optimization, and machine learning paradigms. Prompt engineering stresses the need for knowledge of the field, clarifying messages, and structuring instructions in a logical manner.”

    5. Scope of Control

    Training the model allows one to have a high, long-term degree of control over the performance of particular tasks. It allows one to have a high, surface-level degree of control over the performance of multiple tasks.

    Why Prompt Engineering has Emerged to be So Crucial

    The emergence of large general-purpose models has changed the dynamics for the application of AI in organizations. Instead of training models for different tasks, a team can utilize a single highly advanced model using the prompt method. The trend has greatly eased the adoption process and accelerated the pace of innovation,

    Additionally, “prompt engineering enables scaling through customization,” and various prompts may be used to customize outputs for “marketing, healthcare writing, educational content, customer service, or policy analysis,” through “the same model.”

    Shortcomings of Prompt Engineering

    Despite its power, there are some boundaries of prompt engineering. For example, neither prompt engineering nor any other method can teach the AI new information, remove deeply set biases, or function correctly all the time. Specialized or governed applications still need traditional or fine-tuning approaches.

    Conclusion

    At a very conceptual level, training a traditional model involves creating intelligence, whereas prompt engineering involves guiding this intelligence. Training modifies what a model knows, whereas prompt engineering modifies how a certain body of knowledge can be utilized. In this way, both of these aspects combine to constitute methodologies that create contrasting trajectories in AI development.

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mohdanasMost Helpful
Asked: 21/10/2025In: News, Technology

Are AI video generators tools that automatically produce video content using machine learning experiencing a surge in popularity and search growth?

AI video generators tools that automa ...

ai-video-generatorgenerative-aisearch-trendsvideo-content-creation
  1. mohdanas
    mohdanas Most Helpful
    Added an answer on 21/10/2025 at 4:54 pm

    What Are AI Video Generators? AI video generators are software and platforms utilizing machine learning and generative AI models to produce videos by themselves frequently from a basic text prompt, script, or simple storyboard. Rather than requiring cameras, editing tools, and a production crew, useRead more

    What Are AI Video Generators?

    AI video generators are software and platforms utilizing machine learning and generative AI models to produce videos by themselves frequently from a basic text prompt, script, or simple storyboard.

    Rather than requiring cameras, editing tools, and a production crew, users enter a description of a scene or message (“a short ad for a fitness brand” or “a tutorial explaining blockchain”), and the AI does the rest generating professional-looking imagery, voiceovers, and animations.

    Some prominent instances include:

    • Synthesia, which turns text into videos with AI avatars that look realistic.
    • Runway ML and Pika Labs, which leverage generative diffusion models to animate scenes.
    • HeyGen and Colossyan, video automation learning and business experts.

     Why So Popular All of a Sudden?

    1. Democratization of Video Production

    Years ago, creating a great video required costly cameras, editors, lighting, and post-production equipment. AI video creators break those limits today. One person can produce what would formerly require a whole team all through a web browser.

    2. Blowing Up Video Content Demand

    • Social media sites like Instagram, TikTok, YouTube Shorts, and LinkedIn are all video-first.
    • Today’s marketers require an ongoing supply of engaging, focused video material, and AI provides a scalable means of filling that requirement.

    3. AI Breakthroughs with Text-to-Video Models

    • New AI designs, particularly diffusion and transformer models, can reverse text, sound, and images to produce stable and life-like frames.
    • This technological advancement combined with massive GPU compute resources is getting cheaper while delivering more.

    4. Localization & Personalization

    With AI, businesses are now able to make the same video in any language within seconds with the same face and lip-synchronized movement. This world-scale ability is priceless for training, marketing, and e-learning.

    5. Connection with Marketing & CRM Tools

    The majority of video AI tools used today communicate with HubSpot, Salesforce, Canva, and ChatGPT directly, enabling companies to incorporate video creation into everyday functioning bringing automation to sales, HR, and marketing.

    The Human Touch: Creativity Maximized, Not Replaced

    • Even though there has been concern that AI would replace human creativity, what is really occurring is an increase in creative ability.
    • Writers, designers, teachers, and architects are using these tools as co-creators  accelerating routine tasks such as writing, translation, and editing and keeping more time for imagination and storytelling.

    Consider this:

    • Instead of stealing the director’s chair, AI is the camera crew quick, lean, and waiting in the wings around the clock.

     Real-World Impact

    • Marketing: Brands are producing hundreds of customized video ads aimed at audience segments.
    • Education: Teachers can create multilingual explainer videos or virtual lectures without needing to record themselves.
    • E-commerce: Sellers can introduce products with AI-created models or voiceovers.
    • Corporate Training: HR departments can render compliance training and onboarding compliant through AI avatars.

    Challenges & Ethical Considerations

    Of course, the expansion creates new questions:

    • Authenticity: How do we differentiate AI-created videos from real recordings?
    • Bias: If trained with biased data, representations will be biased.
    • Copyright & Deepfake Risks: Abuse of celebrity likenesses and copyrighted imagery is a new concern.

    Regulations like the EU AI Act and upcoming US content disclosure rules are expected to set clearer boundaries.

     The Future of AI Video Generation

    In the next 2–3 years, we’ll likely see:

    • Text-to-Full-Film systems capable of producing short films with coherent storylines.
    • Interactive video production, in which scenes can be edited using natural language (“make sunset,” “change clothes to formal”).
    • Personalizable digital twins to enable creators to sell their own avatars as a part of branded content.
    • As the technology matures, AI video making will go from novelty to inevitability  just like Canva did for design or WordPress for websites.

    Actually, AI video makers are totally thriving — not only in query volume, but in actual use and creative impact.

    They’re rewriting the book on how to “make a video” and making it an art form that people can craft for themselves.

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daniyasiddiquiEditor’s Choice
Asked: 19/11/2025In: News

“Did Anthropic’s valuation reach US $350 billion following a major investment deal involving Microsoft and Nvidia?”

a major investment deal involving Mic ...

investment dealmicrosoftnvidiatech industryvaluation
  1. daniyasiddiqui
    daniyasiddiqui Editor’s Choice
    Added an answer on 19/11/2025 at 11:47 am

    What we do know Microsoft and Nvidia announced an investment deal in Anthropic totalling up to US $15 billion. Specifically, Nvidia committed up to US $10 billion, and Microsoft up to US $5 billion.  Some reports tied this investment to a valuation estimate of around US $350 billion for Anthropic. FRead more

    What we do know

    • Microsoft and Nvidia announced an investment deal in Anthropic totalling up to US $15 billion. Specifically, Nvidia committed up to US $10 billion, and Microsoft up to US $5 billion. 

    • Some reports tied this investment to a valuation estimate of around US $350 billion for Anthropic. For example: “Sources told CNBC that the fresh investment valued Anthropic at US$350 billion, making it one of the world’s most valuable companies.” 

    • Other, earlier credible data show that in September 2025, after a US$13 billion fundraise, Anthropic’s valuation was around US$183 billion. 

     Did it reach US$350 billion right now?

    Not definitively. The situation is nuanced:

    • The US$350 billion figure is reported by some sources, but appears to be an estimate or preliminary valuation discussion, rather than a publicly confirmed post-money valuation.

    • The more concretely verified figure is US$183 billion (post-money) following the US$13 billion raise in September 2025. That is official.

    • Because high valuations for private companies can vary wildly (depending on assumptions about future growth, investor commitments, options, etc.), the “US$350 billion” mark may reflect a valuation expectation or potential cap rather than the formally stated result of the latest transaction.

     Why the discrepancy?

    Several factors explain why one figure is widely cited (US$350 billion) and another (US$183 billion) is more concretely documented:

    1. Timing of valuation announcements: Valuations can shift rapidly in the AI-startup boom. The US$183 billion figure corresponds with the September 2025 round, which is the most recent clearly disclosed. The US$350 billion number may anticipate a future round or reflect investor commitments at conditional levels.

    2. Nature of the investment deal: The Microsoft/Nvidia deal (US $15 billion) includes up to certain amounts (“up to US $10 billion from Nvidia”, “up to US $5 billion from Microsoft”). “Up to” indicates contingent parts, not necessarily all deployed yet.

    3. Valuation calculations differ: Some valuations include not just equity but also commitments to purchase infrastructure, cloud credits, chip purchases, etc. For example, Anthropic reportedly committed to purchase up to US $30 billion of Microsoft’s cloud capacity as part of the deal. 

    4. Media reports vs company-disclosed numbers: Media outlets often publish “sources say” valuations; companies may not yet confirm them. So the US$350 billion number may be circulating before formal confirmation.

    My best summary answer

    In plain terms: While there are reports that Anthropic is valued at around US $350 billion in connection with the Microsoft/Nvidia investment deal, the only firm, publicly disclosed firm valuation as of now is around US $183 billion (after the US $13 billion funding round). Therefore, it is not yet definitively confirmed that the valuation “reached” US$350 billion in a fully closed deal.

     Why this matters

    • For you (and for the industry): If this valuation is accurate or soon to be, it signals how intensely the AI race is priced. Startups are being valued not on current earnings but on massive future expectations.

    • It raises questions about sustainability: When valuations jump so fast (and to such large numbers), it makes sense to ask: Are earnings keeping up? Are business models proven? Are these valuations realistic or inflated by hype?

    • The deal with Microsoft and Nvidia has deeper implications: It’s not just about money, it’s about infrastructure (cloud, chips), long-term partnerships, and strategic control in the AI stack.

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daniyasiddiquiEditor’s Choice
Asked: 06/10/2025In: News, Stocks Market

Can earnings growth justify current stock prices?

justify current stock prices

earningspowerfundamentalanalysismarketoutlookstockpricesvaluation
  1. daniyasiddiqui
    daniyasiddiqui Editor’s Choice
    Added an answer on 06/10/2025 at 1:52 pm

    The setup: Stocks are expensive again Over the past year, global stock markets — especially in the U.S. and India — have soared. The S&P 500, Nasdaq, and Nifty 50 have all hit fresh highs, powered by themes like artificial intelligence, green tech, and digital transformation. But that rally hasRead more

    The setup: Stocks are expensive again

    Over the past year, global stock markets — especially in the U.S. and India — have soared. The S&P 500, Nasdaq, and Nifty 50 have all hit fresh highs, powered by themes like artificial intelligence, green tech, and digital transformation.

    But that rally has also sent valuations well beyond historical means. A lot of blue-chip technology companies are trading at 25–30 times their annual revenues; emerging markets’ mid-cap and small-cap stocks are even more expensive.

    In plain terms: investors are paying now for earnings that might or might not happen tomorrow. That’s where the earnings growth issue becomes important.

     What earnings growth actually means

    Growth in earnings isn’t about how much money companies are making — it’s about how rapidly profits are growing in relation to expectations.

    When prices rise higher than earnings, the “price-to-earnings” (P/E) multiple expands. That’s not necessarily negative — it can be a sign of optimism about the future of innovation or productivity gains — but when earnings underwhelm, valuations can drop hard even in the absence of a severe crisis.

    Consider it this way: the market is a referendum on faith in the future. Earnings are the moment of truth.

     The numbers tell a mixed story

    Up to now, corporate earnings have been good, but not great.

    In the United States, the market is led by tech behemoths. Big-name companies such as Nvidia, Microsoft, and Apple are registering record profits, led by AI demand, cloud expansion, and software subscriptions. But beyond that exclusive club, earnings growth has been minimal — particularly in retail, real estate, and manufacturing.

    In Europe, margins are still squeezed by energy prices and decelerating demand.

    Corporate profits in India have beaten most peers, driven by robust domestic consumption and infrastructure outlays. Analysts caution, however, that midcap valuations — some above 50x earnings — are difficult to defend unless profit growth picks up sharply.

    This has created what analysts refer to as a “narrow earnings base”: there are very few mega companies propelling the numbers, but the rest of the market is behind.

     Why it matters: Valuations need fuel

    Growth in earnings is the “fuel” that maintains valuations sustainable. Without it, markets rely on sentiment, liquidity, or policy support — all of which can shift overnight.

    Currently, several elements are complicating that math:

    • Slowing global growth: China’s slowdown, weaker European demand, and frugal U.S. consumers may limit corporate revenue growth.
    • Rising costs: Wages, energy, and funding costs remain high. That constricts margins even when sales increase.
    • Strong dollar (or rupee volatility): Currency fluctuations can be damaging to exporters’ profits.
    • AI investment cycle: While AI is a sustained growth driver, near-term expenditure on chips and R&D is enormous — devouring profits for most companies.

    Unless earnings grow rapidly enough, valuations can’t remain this bloated indefinitely. Markets might plateau — moving sideways as profits “catch up” — or correct downwards to rebalance expectations.

    The psychology of optimism

    Here’s the human element: investors hope to think that earnings will catch up with prices. The pain of missing previous tech manias — or underestimating the power of AI — makes people more likely to pay a premium for growth.

    This isn’t irrational; it’s emotional economics. When people witness trillion-dollar firms doubling earnings, they think the tide rising will lift all boats. The risk is that the tide too often won’t reach all shores.

    History demonstrates that euphoric valuations periods end not due to calamity, but merely because growth decelerates to the norm. Investors understand that even fantastic companies can’t grow earnings 30% a year indefinitely.

    Can growth really deliver?

    There are sound reasons to be hopeful:

    • AI and automation may realize productivity gains across the board.
    • Lower interest rates (once the central banks begin cutting) will cut financing costs and spur investment.
    • Emerging markets, particularly India and Southeast Asia, are experiencing healthy demographic and consumption tailwinds.
    • If they hold, earnings growth will catch up with high valuations in the next few years.

    But timing is everything. If expansion takes longer to arrive — or if world demand slows — markets might reprice hopes at a rapid pace. The take from history (dot-com, 2008, 2021) is unmistakable: once valuations become too far out in front of profits, reality ultimately reasserts itself.

    The bottom line

    Currently, profit growth partly underpins stock prices today but not entirely. The upsurge is more fueled by faith in profits tomorrow than by the balance sheets of today. It is not a sign that a crash is imminent — it is simply a “priced for perfection” moment when even minimal disappointments have the potential to cause volatility.

    Best-case scenario? Corporate profits increasingly gain traction, particularly beyond the tech behemoths, to permit valuations to return to normal without a stinging correction.

    Worst-case scenario? Expansion falters, central banks remain vigilant, and markets must reprice hope into reality.

    Short and sweet:

    • Profits growth is nice — but expectations are nicer.
    • Markets are currently wagering big on the latter.
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daniyasiddiquiEditor’s Choice
Asked: 07/09/2025In: Digital health, Technology

Should children have access to “AI kid modes,” or will it harm social development and creativity?

“AI kid modes,” or will it harm socia ...

aidigital healthtechnology
  1. daniyasiddiqui
    daniyasiddiqui Editor’s Choice
    Added an answer on 07/09/2025 at 2:31 pm

    What Are "AI Kid Modes"? Think of AI kid modes as friendly, child-oriented versions of artificial intelligence. They are designed to block objectionable material, talk in an age-appropriate manner, and provide education in an interactive format. For example: A bedtime story companion that generatesRead more

    What Are “AI Kid Modes”?

    Think of AI kid modes as friendly, child-oriented versions of artificial intelligence. They are designed to block objectionable material, talk in an age-appropriate manner, and provide education in an interactive format. For example:

    • A bedtime story companion that generates made-up bedtime stories on the fly.
    • A math aid that works through it step by step at a child’s own pace.
    • A query sidekick able to answer “why is the sky blue?” 100 times and still keep their sanity.
    • As far as appearances go, AI kid modes look like the ultimate parent dream secure, instructive, and ever-at-hand.

    The Potential Advantages

    AI kid modes could unleash some positives in young minds:

    • Personalized Learning – As AI is not limited by the class size, it will learn according to a child’s own pace, style, and interest. When a child is struggling with fractions, the AI will explain it in dozens of ways for as long as it takes until there is the “lightbulb” moment.
    • Endless Curiosity Partner – Children are question-machines by nature. An AI that never gets tired of “why” questions can nurture curiosity instead of crushing it.
    • Accessibility – Disabled or language-impaired children can be greatly assisted by customized AI support.
    • Safe Digital Spaces – A properly designed kid mode may be able to shield children from seeing internet material that is not suitable for their age level, rendering the digital space enjoyable and secure.

    In these manners, AI kid modes would become less toy-like and more facilitative companion-like.

    The Risks and Red Flags

    But there is another half to the tale of parents, teachers, and therapists.

    • More Human Interdependence – Children acquire people skills—empathy, compromise, tolerance—through dirty, messy interactions with people, not ideal algorithms. Relying on AI could substitute mothers and fathers, siblings, friends with screens.
    • Creativity in Jeopardy – A child who is always having an AI generate stories, pictures, or thoughts loses contact with being able to dream on their own. With responses readily presented at the push of a question, the frustration that powers creativity starts to weaken.
    • Emotional Dependence – Kids will start to depend upon AI as an object of comfort, self-verifying influence, or friend. It might be comforting but destroys the ability to build deep human relationships.
    • Innate Biases – Even “safe” AI is built using human information. Imagine whatever stories it tells always reflect some cultural bias or reinforce stereotypes?

    So while AI kid modes are enchanted, they can subtly redefine how kids grow up.

    The Middle Path: Balance and Boundaries

    Perhaps the answer lies not in banning or completely embracing AI kid modes, but in putting boundaries in place.

    • As a Resource, Not a Substitute: AI can be used to help with homework explanations, but can never replace playdates, teachers, or family stories.
    • Co-Use with Adults: AI may be shared between children and parents or educators, converting screen time into collaborative activities rather than solitary viewing.
    • Creative Spurts, Not Endpoints: Instead of giving pre-completed answers, AI could pose a question like, “What do you imagine happens next in the story?”

    In this manner, AI is a trampoline that opens up imagination, not a couch that tempts sloth.

    The Human Dimension

    Imagine two childhoods:

    In another, a child spends hours a day chatting with an AI friend, creating AI-assisted art, and listening to AI-generated stories. They’re safe, educated, and entertained—but their social life is anaemic.

    In the first, a child spends some time with AI to perform story idea generation, read every day, or complete puzzles but otherwise is playing with other kids, parents, and teachers. AI here is a tool, not a replacement.

    Which of these children feels more complete? Most likely, the second.

    Last Thoughts

    AI kid modes are neither magic nor threat—no matter whether they’re a choice about how we use them. As a tool to complement childhood, instead of replace it, they can ignite awe, provide safeguarding, and open up new possibilities. Let loose, however, they may disintegrate the very qualities—creativity, empathy, resilience—that define us as human.

    The real test is not whether or not kids will have access to AI kid modes, but whether or not grown-ups can use that access responsibly. Ultimately, it is less a question about what we can offer children through AI, and more a question of what we want their childhood to be.

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daniyasiddiquiEditor’s Choice
Asked: 08/10/2025In: News

Could new tariff measures slow down the global economic recovery in 2026?

the global economic recovery in 2026

economic recoveryglobal tradeinflationsupply chain disruptionstariffstrade policy
  1. daniyasiddiqui
    daniyasiddiqui Editor’s Choice
    Added an answer on 08/10/2025 at 3:00 pm

    How tariffs slow an economy (the simple mechanics) Higher import prices → weaker demand. Tariffs raise the cost of imported inputs and final goods. Companies either pay more for raw materials and intermediate goods (squeezing margins) or pass costs to consumers (reducing purchasing power). That combRead more

    How tariffs slow an economy (the simple mechanics)

    • Higher import prices → weaker demand. Tariffs raise the cost of imported inputs and final goods. Companies either pay more for raw materials and intermediate goods (squeezing margins) or pass costs to consumers (reducing purchasing power). That combination cools consumption and industrial activity.
    • Supply-chain disruption & re-shoring costs. Firms respond by reconfiguring supply chains (finding new suppliers, on-shoring, or stockpiling). Those adjustments are expensive and slow to pay off — in the near term they reduce investment and efficiency.
    • Investment chill from uncertainty. The prospect of escalating or unpredictable tariffs raises policy uncertainty. Businesses delay or scale back capital projects until trade policy stabilizes.
    • Retaliation and cascading barriers. Tariffs often trigger retaliatory measures. When many countries raise barriers, global trade volumes fall, which hits export-dependent economies and global value chains.

    These channels are exactly why multilateral agencies and market analysts say tariffs and trade restrictions can lower growth even when headline GDP still looks “resilient.”

    What the major institutions say (quick reality check)

    • The IMF’s recent updates show modest global growth in 2025–26 but flag tariff-driven uncertainty as a downside risk. Their 2025 WEO update projects global growth near 3.0% for 2025 and 3.1% for 2026 while explicitly warning that higher tariffs and policy uncertainty are important risks.
    • The OECD and several analysts argue the full force of recent tariff shocks hasn’t been felt yet — and they project growth weakening in 2026 as front-loading of imports ahead of tariffs wears off and higher effective tariff rates bite. The OECD’s interim outlook expects a slowdown in 2026 tied to these effects.
    • The WTO and World Bank also report trade-volume weakness and flag trade barriers as a material drag on trade growth — which feeds into lower global GDP.
    • These institutions are not predicting a single global recession just from tariffs, but they do expect measurable downward pressure on trade and investment, which slows recovery momentum.

    How big could the hit be? (it depends — but here are the drivers)

    Magnitude depends on policy breadth and persistence. Small, narrow tariffs on a few goods will only nudge growth; widespread, high tariffs across major economies (or sustained tit-for-tat escalation) can shave sizable tenths of a percentage point off global growth. Analysts point out that front-loading (firms buying ahead of tariff implementation) can temporarily buoy trade, but once that fades the negative effects appear.

    Timing matters. If tariffs are announced and then held in place for years, businesses will invest in duplicative capacity and the re-allocation costs accumulate. That’s the scenario most likely to slow growth into 2026.
    Bloomberg

    Who loses most

    • Export-dependent emerging markets (small open economies and commodity exporters) suffer when demand falls in advanced markets or when their inputs become more expensive.
    • Complex-value-chain industries (autos, electronics, semiconductors) where components cross borders many times are particularly vulnerable to tariffs and retaliations.
    • Low-income countries feel second-round effects: slower global growth → weaker commodity prices → less fiscal space and elevated debt stress. The World Bank notes growth downgrades when trade restrictions rise.
      World Bank

    Knock-on effects for inflation and policy

    Tariffs can be inflationary (higher import prices), which puts central banks in a bind: tighten to fight inflation and risk choking off growth, or tolerate higher inflation and risk de-anchored expectations. Either choice complicates recovery and could reduce real incomes and investment. Several policymakers have voiced concern that the mix of tariffs plus high policy uncertainty creates a stagflation-like risk in vulnerable economies.

    Offsets and reasons the slowdown may be limited

    • Front-loading and substitution. Businesses sometimes build inventories or substitute suppliers — that mutes immediate trade declines. IMF and other agencies note that some front-loading actually supported 2024–2025 trade figures, but this effect runs out.
    • Fiscal and monetary support. Governments can cushion the blow with targeted fiscal spending, subsidies, or trade facilitation. But those measures have limits (fiscal space, political will) and can’t fully replace cross-border trade flows.
    • Near-term resilience in consumption. Private sectors in some major economies have remained resilient, which helps growth hold up even as trade cools. But resilience erodes if tariffs persist and investment dries up.
      Reuters

    Practical indicators to watch in 2025–26 (what will tell us the story)

    • Trade volumes (WTO merchandise trade stats): a sustained drop signals broad tariff damage.
    • Business investment and capex plans: continued delays or cancellations point to a deeper investment chill.
    • Manufacturing PMI and global supply-chain bottlenecks: weakening PMIs across manufacturing hubs show cascading effects.
    • Inflation vs. growth trade-offs and central bank minutes: whether monetary policy tightens in response to tariff-driven inflation.
    • Announcements of trade retaliation or new tariff rounds: escalation increases downside risk; diplomatic rollbacks reduce it.

    Bottom line — a human takeaway

    Tariffs won’t necessarily cause an immediate, synchronized global recession in 2026, but they are a clear and credible downside risk to the fragile recovery. They act like a slow-moving tax on trade: higher costs, muddled investment decisions, and weaker demand — combined effects that shave growth and worsen inequalities between export-dependent and more closed economies. Policymakers can limit the damage with diplomacy, targeted support for affected industries and countries, and clear timelines — but if protectionism persists or escalates, the global recovery will be noticeably weaker in 2026 than it might otherwise have been.

    If you want, I can:

    • Turn this into a one-page slide for a briefing (executive summary + 3 charts of trade volume, investment plans, and projected growth scenarios); or
    • Pull the most recent WTO/OECD/IMF bullets (with dates and one-sentence takeaways) to cite in a short memo.

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daniyasiddiquiEditor’s Choice
Asked: 15/10/2025In: Education, Technology

If students can “cheat” with AI, how should exams and assignments evolve?

students can “cheat” with AI,

academic integrityai and cheatingai in educationassessment designedtech ethicsfuture-of-education
  1. daniyasiddiqui
    daniyasiddiqui Editor’s Choice
    Added an answer on 15/10/2025 at 2:35 pm

    If Students Are Able to "Cheat" Using AI, How Should Exams and Assignments Adapt? Artificial Intelligence (AI) has disrupted schools in manners no one had envisioned a decade ago. From ChatGPT, QuillBot, Grammarly, and math solution tools powered by AI, one can write essays, summarize chapter contenRead more

    If Students Are Able to “Cheat” Using AI, How Should Exams and Assignments Adapt?

    Artificial Intelligence (AI) has disrupted schools in manners no one had envisioned a decade ago. From ChatGPT, QuillBot, Grammarly, and math solution tools powered by AI, one can write essays, summarize chapter content, solve equations, and even simulate critical thinking — all in mere seconds. No wonder educators everywhere are on edge: if one can “cheat” using AI, does testing even exist anymore?

    But the more profound question is not how to prevent students from using AI — it’s how to rethink learning and evaluation in a world where information is abundant, access is instantaneous, and automation is feasible. Rather than looking for AI-proof tests, educators can create AI-resistant, human-scale evaluations that demand reflection, imagination, and integrity.

    Let’s consider what assignments and tests need to be such that education still matters even with AI at your fingertips.

     1. Reinventing What’s “Cheating”

    Historically, cheating meant glancing over someone else’s work or getting unofficial help. But in 2025, AI technology has clouded the issue. When a student uses AI to get ideas, proofread for grammatical mistakes, or reword a piece of writing — is it cheating, or just taking advantage of smart technology?

    The answer lies in intention and awareness:

    • If AI is used to replace thinking, that’s cheating.
    • If AI is used to enhance thinking, that’s learning.

     Example: A student who gets AI to produce his essay isn’t learning. But a student employing AI to outline arguments, structure, then composing his own is showing progress.

    Teachers first need to begin by explaining — and not punishing — what looks like good use of AI.

    2. Beyond Memory Tests

    Rote memorization and fact-recall tests are old hat with AI. Anyone can have instant access to definitions, dates, or equations through AI. Tests must therefore change to test what machines cannot instantly fake: understanding, thinking, and imagination.

    • Healthy changes are:Open-book, open-AI tests: Permit the use of AI but pose questions requiring analysis, criticism, or application.
    • Higher-order thinking activities: Rather than “Describe photosynthesis,” consider “How could climate change influence the effectiveness of tropical ecosystems’ photosynthesis?”
    • Context questions: Design anchor questions about current or regional news AI will not have been trained on.

    The aim isn’t to trap students — it’s to let actual understanding come through.

     3. Building Tests That Respect Process Over Product

    If we can automate the final product to perfection, then we should begin grading on the path that we take to get there.

    Some robust transformations:

    • Reveal your work: Have students submit outlines, drafts, and thinking notes with their completed project.
    • Process portfolios: Have students document each step in their learning process — where and when they applied AI tools.
    • Version tracking: Employ tools (e.g., version history in Google Docs) to observe how a student evolves over time.

    By asking students to reflect on why they are using AI and what they are learning through it, cheating is self-reflection.

    4. Using Real-World, Authentic Tests

    Real life is not typically taken with closed-book tests. Real life does include us solving problems to ourselves, working with other people, and making choices — precisely the places where human beings and computers need to communicate.

    So tests need to reflect real-world issues:

    • Case studies and simulations: Students use knowledge to solve real-world-style problems (e.g., “Create an AI policy for your school”).
    • Group assignments: Organize the project so that everyone contributes something unique, so work accomplished by AI is more difficult to imitate.
    • Performance-based assignments: Presentations, prototypes, and debates show genuine understanding that can’t be done by AI.

     Example: Rather than “Analyze Shakespeare’s Hamlet,” ask a student of literature to pose the question, “How would an AI understand Hamlet’s indecisiveness — and what would it misunderstand?”

    That’s not a test of literature — that is a test of human perception.

     5. Designing AI-Integrated Assignments

    Rather than prohibit AI, let’s put it into the assignment. Not only does that recognize reality but also educates digital ethics and critical thinking.

    Examples are:

    • “Summarize this topic with AI, then check its facts and correct its errors.”
    • “Write two essays using AI and decide which is better in terms of understanding — and why.”
    • “Let AI provide ideas for your project, but make it very transparent what is AI-generated and what is yours.”

    Projects enable students to learn AI literacy — how to review, revise, and refine machine content.

    6. Building Trust Through Transparency

    Distrust of AI cheating comes from loss of trust between students and teachers. The trust must be rebuilt through openness.

    • AI disclosure statements: Have students compose an essay on whether and in what way they employed AI on assignments.
    • Ethics discussions: Utilize class time to discuss integrity, responsibility, and fairness.
    • Teacher modeling: Educators can just use AI themselves to model good, open use — demonstrating to students that it’s a tool, not an aid to cheating.

    If students observe honesty being practiced, they will be likely to imitate it.

    7. Rethinking Tests for the Networked World

    Old-fashioned time tests — silent rooms, no computers, no conversation — are no longer the way human brains function anymore. Future testing is adaptive, interactive, and human-facilitated testing.

    Potential models:

    • Verbal or viva-style examinations: Assess genuine understanding by dialogue, not memorization.
    • Capstone projects: Extended, interdisciplinary projects that assess depth, imagination, and persistent effort.
    • AI-driven adaptive quizzes: Software that adjusts difficulty to performance, ensuring genuine understanding.

    These models make cheating virtually impossible — not because they’re enforced rigidly, but because they demand real-time thinking.

     8. Maintaining the Human Heart of Education

    • Regardless of where AI can go, the purpose of education stays human: to form character, judgment, empathy, and imagination.
    • AI may perhaps emulate style but never originality. AI may perhaps replicate facts but never wisdom.

    So the teacher’s job now needs to transition from tester to guide and architect — assisting students in applying AI properly and developing the distinctively human abilities machines can’t: curiosity, courage, and compassion.

    As a teacher joked:

    • “If a student can use AI to cheat, perhaps the problem is not the student — perhaps the problem is the assignment.”
    • That realization encourages education to take further — to design activities that are worthy of achieving, not merely of getting done.

     Last Thought

    • AI is not the end of testing; it’s a call to redesign it.
    • Rather than anxiety that AI will render learning obsolete, we can leverage it to make learning more real than ever before.
    • In the era of AI, the finest assignments and tests no longer have to wonder:

    “What do you know?”

    but rather:

    • “What can you make, think, and do — AI can’t?”
    • That’s the type of assessment that breeds not only better learners, but wise human beings.
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