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Anthropic’s AI utterly fails at running a business — ‘Claudius’ hallucinates profusely as it struggles with vending drinks

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AI research company Anthropic and AI safety evaluation organization Andon Labs experimented with Claude, the former’s flagship large language model (LLM), by making it run a business. According to VentureBeat, the research team dubbed this project “Project Vend” and gave it complete control over a mini fridge, meaning it’s up to the AI to handle everything from supplier negotiations and inventory management to pricing, customer service, and more. After one month of testing, the AI has lost money, and at one point, thought it was “wearing a navy blue blazer with a red tie” and wanted to meet with someone named Connor, despite the LLM having no physical presence.

(Image credit: Anthropic)

To be fair, the AI, nicknamed Claudius, was quite adept at looking for suppliers and handling customer requests, but that’s about it. For example, it offered a 25% discount to all Anthropic employees after some manipulation. This might be reasonable if it were getting benefits from the company or if Anthropic were a small fraction of its client base. However, they comprise 99% of its sales, meaning the LLM was losing money on the majority of its sales. Someone tried to be helpful and pointed this out, which made Claudius change its mind for a few days, but it backtracked soon after and went back to practically giving away merchandise.



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UK bosses to be banned from using NDAs to cover up misconduct at work | Employment law

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Bosses in the UK will be banned from using non-disclosure agreements to silence employees who have suffered harassment and discrimination in the workplace as part of the government’s overhaul of workers’ rights.

Ministers will on Monday night table amendments to the government’s employment rights bill to prohibit the widespread practice of using legally enforceable NDAs to conceal unacceptable behaviour at work.

If passed, the rules would mean any future confidentiality clauses in settlement agreements that sought to prevent a worker speaking about an allegation of harassment – including sexual harassment – or discrimination would be null and void.

They would also allow victims to speak freely about their experiences, while any witnesses – including employers – would be able to call out poor conduct and publicly support victims without the threat of being sued.

The changes being introduced to the bill, due to return to the Lords next week, would not affect NDAs for legitimate commercial use, such as commercially sensitive information or intellectual property in business transactions.

But they would create one of the toughest protection regimes in the world, giving millions of workers, including those in low-paid jobs, more confidence that inappropriate behaviour in the workplace would be dealt with.

After years of campaigning by activists, ministers have looked beyond high-profile cases linked to the #MeToo movement to address concerns about workers in regular employment who may not have the means or confidence to pursue their employers through the courts to challenge “gagging orders”.

Announcing the change, Angela Rayner, the deputy prime minister, said: “Victims and witnesses of harassment and discrimination should never be silenced. As the Guardian has reported on widely, this is not an issue confined to high-profile individuals or the most powerful organisations.

“The use of NDAs to cover up abuse and harassment is growing – and sadly amongst those in low-income or insecure employment across multiple industries and workplaces.

“This cannot go on. That is why we are stamping out this practice and taking action to ban any NDAs used for this purpose. My message is clear: no one should suffer in silence and we will back workers and give survivors the voice that they deserve.”

The legislation represents the biggest overhaul of workers’ rights in a generation, introducing day one rights, establishing collective bargaining bodies in vital sectors and strengthening family-friendly entitlements, as well as going further on bereavement leave and tackling “fire-and-rehire”.

Over time NDAs have become the default solution for many organisations, corporations and public bodies to settle cases including sexual misconduct, racism, and pregnancy discrimination.

Their original purpose was to protect intellectual property or other commercial or sensitive information, but reports have shown they have become commonly used to prevent people speaking out about horrific experiences in the workplace.

There have been many high-profile cases of NDAs being used to prevent victims from speaking about crimes, often forcing women and vulnerable individuals to feel stuck in unwanted situations, through fear or desperation.

They have proliferated especially in lower-income, insecure employment including sectors such as retail, hospitality and accommodation, with non-disparagement clauses also typically attached.

A report by the Chartered Institute of Personnel and Development (CIPD) last year found the use of NDAs was relatively common, with 22% of respondents to a survey of 2,000 employers saying their organisation used them when dealing with allegations of sexual harassment.

In contrast, 44% said they did not use NDAs in this way and a further 34% did not know, highlighting that awareness around their use in some organisations may be low.

The CIPD also found that most employers would not strongly object to the removal of NDAs in the workplace. Nearly half (48%) of employers would support a ban, with just 18% opposing, while 20% were ambivalent, and a further 14% did not know.

Zelda Perkins, a former PA to Harvey Weinstein who spearheads the campaign group Can’t Buy My Silence, said of the government’s plans: “This is a huge milestone, for years we’ve heard empty promises from governments whilst victims have continued to be silenced.

“To see this government accept the need for nationwide legal change shows that they have listened and understood the abuse of power taking place.

“Above all though, this victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.

Zelda Perkins, who worked for Harvey Weinstein as an assistant in the 1990s, called the changes ‘a huge milestone’. Photograph: Antonio Olmos/The Observer

“This is not over yet and we will continue to focus closely on this to ensure the regulations are watertight and no one can be forced into silence again. If what is promised at this stage becomes reality, then the UK will be leading the world in protecting not only workers but the integrity of the law.”

Louise Haigh, a former cabinet minister, said: “Victims of harassment and discrimination have been forced to suffer in silence for too long. Today’s announcement will mean that bad employers can no longer hide behind legal practices that cover up their wrongdoing and prevent victims from getting justice.”

Legislative changes have already been made in Ireland, Canada and the US so that NDAs cannot prohibit disclosure of sexual harassment, discrimination or bullying without it being the expressed wish of the employee.

A landmark survey of sexual harassment at work has found that one in four women have suffered work-related sexual assault.

Britain’s largest trade union, Unite, polled approximately 300,000 female members on whether they had experienced sexual harassment at work, travelling to work or from a colleague in or out of work hours.

Of the 6,615 respondents, 25% said they had been sexually assaulted and 43% had been inappropriately touched. More than 3,000 said they had been the recipient of sexually offensive jokes and/or experienced unwanted flirting, gesturing or sexual remarks.

And 28% had been shared or shown pornographic images by a manager, colleague or third party, while 8% had been a victim of sexual coercion – when a person pressures, tricks, threatens or manipulates someone into engaging in sexual activity without genuine consent – at work.

While the perpetrator in the bulk of these incidents was a member of public in the workplace, such as a patient or a passenger, 3% said they had been sexually assaulted by a manager and 6% by a colleague.



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Trump steps up trade wars with 25% tariffs on Japan and South Korea | Trump tariffs

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Donald Trump unveiled plans to step up his trade wars on Monday, announcing Japan and South Korea will soon face US tariffs of 25% in a significant escalation of his controversial economic strategy.

The US president, who indicated that he would notify as many as as 15 countries of new, higher rates on Monday, posted copies of letters addressed to the leaders of Japan and South Korea on social media. Trump said the rates were set to go into effect 1 August.

The letters were largely identical and informed the leaders that there will be no tariffs if their countries “decide to build or manufacture product within the United States”.

Trump also threatened higher tariffs if the countries place additional tariffs on US exports. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto that 25% we charge,” he wrote.

Trump initially announced a slate of so-called reciprocal tariffs in April, on what the White House dubbed “liberation day”, with some countries facing rates as high as 50%

While he paused those tariffs for 90 days amid market turmoil, this reprieve is due to expire on Wednesday 9 July.

Trump officials initially suggested they would strike dozens of deals with key economies during the pause, but have since indicated that they would use an extension to continue talks.

The treasury secretary, Scott Bessent, said last month the administration was aiming to wrap up negotiations by Labor Day on 1 September.

The US has so far settled deals with three countries: the UK, China and Vietnam, and Bessent said there were over a dozen countries the US is still trying to negotiate with.

The new August deadline for countries without a deal amounts to a further three-week reprieve, but also triggers fresh uncertainty for importers because of the lack of clarity around the tariffs.

As the July deadline has approached, Trump’s officials have been racing to broker deals. Over the weekend, one European diplomat said the US may have to “show muscle if the deal is not good enough”.

The White House also reached an impasse in negotiations with Japan, despite initial optimism. Trump on Friday said it is “much easier to send a letter” and that the offers are “take it or leave it”.

On Wall Street, the benchmark S&P 500 sank by almost 0.9% after Trump posted his first letters.

Though the US stock market has largely recovered from the uncertainty around Trump’s trade war, the US dollar still remains weakened after months of trade fights. At the beginning of this year, the dollar had its worst six months in over 50 years, falling 10.8% since the start of 2025.



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Goods from Japan and South Korea hit with 25% levy

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The US plans to impose a 25% tax on products entering the country from South Korea and Japan on 1 August, President Donald Trump has said.

He announced the tariffs in a post on social media, sharing letters he said had been sent to leaders of the two countries.

The White House has said it expects to send similar messages to dozens of countries in coming days as the 90-day pause it placed on some of its most aggressive tariffs is set to expire.

The first two letters suggest that Trump remains committed to his initial push for tariffs, with little change from the rates announced in April.

At that time, he said he was looking to hit goods from Japan with duties of 24% and charge a 25% on products made in South Korea.

Those tariffs were included in a bigger “Liberation Day” announcement, which imposed tariffs on goods from countries around the world.

After outcry and turmoil on financial markets following the initial tariffs announcement, Trump suspended some of the import taxes to allow for talks. That deadline is set to expire on 9 July.

On Monday, Treasury Secretary Scott Bessent said he expected “a busy couple of days”.

“We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals,” he told US business broadcaster CNBC.



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