Business
Can Artificial Intelligence (AI) Help Turn Opendoor’s Business Around?

Key Points
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Opendoor recently appointed Shrisha Radhakrishna as its new interim leader.
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Radhakrishna believes artificial intelligence can help the company in multiple areas of its operations, including pricing and in-home assessments.
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The company has routinely incurred losses and it’s carrying more than $2 billion in debt on its books.
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10 stocks we like better than Opendoor Technologies ›
Artificial intelligence (AI) has been transforming businesses across the globe and across all sectors of the economy. While it may not necessarily fix a broken business, it can help add efficiency, unlock new growth opportunities, and drive down costs.
Those are all things that Opendoor Technologies (NASDAQ: OPEN) could benefit from. Many investors and analysts see the iBuying company as nothing more than the latest meme stock, benefiting from a flurry of hype from retail investors.
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Management, however, hopes to solidify its operations and do more with less, due to AI. Is this a great idea that could make Opendoor a better buy, or is this simply too risky of a stock to hold?
Image source: Getty Images.
Can AI fix the company’s biggest struggles?
Opendoor’s new president and interim leader, Shrisha Radhakrishna, who took over last month after Carrie Wheeler stepped down, is eyeing AI as a way to improve the company’s operations. Radhakrishna sees many ways that AI can be a key part of the company’s future growth, helping the business with marketing, pricing, and in-home assessments.
Turning to AI can be a way to improve efficiency, but it’ll take time and money to do so. And even then, it’s questionable how much generative AI can do for Opendoor’s business. Consider that the company’s gross margin is typically in just single digits. The iBuying business involves flipping houses and if there’s not enough of a spread there to make enough of a margin, it’s going to be incredibly difficult for the business to cover its other operating expenses and stay out of the red.
AI may help with pricing, but unless it results in significant margin expansion, it may not necessarily lead to a big payoff for the business and its shareholders.
Many AI projects are falling short of expectations
Excitement around AI has captivated investors, but that doesn’t mean that simply throwing money at AI is going to solve problems. In fact, it may create new ones as Opendoor spends excessively without having much to show for it.
According to a recent report from the Massachusetts Institute of Technology, a staggering 95% of companies haven’t been generating any meaningful revenue or payoff from their investments into AI. While the hyperscalers and big tech companies with massive budgets have undoubtedly grown their businesses due to AI, the study underscores the importance of keeping expectations in check.
As tempting as it may be to assume that AI will improve a company’s operations, that’s by no means a sure thing. And that can be particularly concerning for a business such as Opendoor, which has routinely posted losses and which already has more than $2 billion in debt on its books. Last quarter (which ended June 30), its interest expense totaled $36 million — nearly 3 times the size of its operating loss of $13 million.
Investing into AI likely won’t make Opendoor a better stock
Opendoor’s business needs a lot of work before it can have a realistic path to profitability and be a good investment option. There’s a ton of risk for investors to take on and although the stock has surged more than 300% this year (as of Monday), that doesn’t mean the rally is sustainable or that it will continue.
The volatility that comes with Opendoor’s stock makes it an unsuitable option for the vast majority of investors to consider for their portfolios. With challenging market conditions, poor financials, and many question marks surrounding the long-term viability of Opendoor’s business, this is a stock I’d steer clear of for the foreseeable future. At the very least, you may want to wait until the company actually shows some tangible improvement and payoff from its efforts and AI investments. Otherwise, you could be taking on significant risk. This is a stock that could have a long way to fall given its sharp rally this year and the volatility that comes with it.
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Business
Robinhood CEO Says AI Won’t Fully Take Over Trading

AI isn’t ready to take over all the human aspects of trading, said Robinhood’s CEO.
In an interview with Bloomberg Wealth released on Wednesday, Vlad Tenev reiterated his view that people don’t always trade to make money and that there will always be a human aspect to business.
“Most of the time you’re not doing it just because you want to make money,” he said. “You also love trading and you’re you’re extremely passionate about it.”
He added: “I don’t think there’s going to be a future where AI just does all of your thinking, all of your financial planning, all the strategizing for you.”
Tenev, who cofounded the brokerage platform in 2013, said that AI could be a bigger platform shift than mobile and cloud technologies. He said that while every company will quickly become an AI company, AI won’t completely take over trading.
“It’ll be a helpful assistant to a trader and also to your broader financial life,” he said. “But I think the humans will ultimately be calling the shots.”
Tenev made similar remarks about how investors “legitimately enjoy trading” in an August interview with Axios.
On Tuesday, Robinhood announced it was building a social media platform where users can post their trades and track what other investors, including politicians, are buying or selling.
Other CEOs are also wary of pronouncing AI the future of trading.
Ken Griffin, the founder and CEO of Citadel, said he doesn’t think AI will revolutionize the investment business.
“Do we use it in our investment business? A little bit, a little bit. I can’t say it’s been game-changing,” Griffin said in a May interview with Stanford Graduate School of Business.
“It saves some time. It’s a productivity enhancement tool. It’s nice, I don’t think it’s going to revolutionize most of what we do in finance,” Griffin added.
On the topic of AI and trading, Goldman Sachs CEO David Solomon has said that AI has been a big boost to productivity in the investing business.
In an interview with CNBC last year, he said that 40 years ago, when he started the banking business, it took six hours to compare two stocks. Now, it takes an instant, he said.
The firm has already launched ventures that could change how Wall Street makes deals. Louisa AI, a startup founded within the firm six years ago, helps bankers and investors analyze millions of articles and employees’ knowledge to identify deals.
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AI Breakthrough Promises More Consistent Results—A Win for Small Businesses – Times Square Chronicles

AI Breakthrough Promises More Consistent Results—A Win for Small Businesses Times Square Chronicles
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Business
Aha moments, the ‘first ten hours’, and other pro tips from business leaders building AI-ready workforces

As businesses face pressure to bring new AI tools on board, they have the dual challenge of effectively incorporating the technology into their operations and of helping their workforce make the best use of the technology.
Longstanding methods for assessing the skills and performance of an employee, as well as hiring practices, are being upended and re-imagined, according to business leaders who spoke at the Fortune Brainstorm Tech conference on Tuesday in Park City, Utah.
Technical skills, contrary to what you might think, are not paramount in the age of AI. In fact, for many employers, technical skills are becoming less important.
“For the first time this summer on our platform we saw a shift,” said Hayden Brown, CEO of Upwork, an online jobs marketplace for freelancers. In the past, when Upwork asked employers on its platform about the most important skills they were hiring for, the answer invariably involved deep expertise in certain technical areas, Brown said. “For the first time this summer, it’s now soft skills. It’s human skills; it’s things like problem solving, judgement, creativity, taste.”
Jim Rowan, the head of AI at consulting firm Deloitte, which sponsored the Brainstorm discussion, said an employee’s “fluency” should not be an end goal in itself. More important is intellectual curiosity around new tools and technology.
And that’s something that needs to start at the top.
“We’ve done a lot of work with executive teams to make sure the top levels of the organization and the boards are actually familiar with AI,” said Rowan. “That helps because then they can communicate better with their teams and see what they’re doing.”
For Toni Vanwinkle, VP of Digital Employee Experience at Adobe, it’s critical for employees at all levels of an organization to have an “aha moment” with AI technology. And the best way to bring that about is for each employee to get their “first ten hours” in.
“Go play with it,” Vanwinkle says. “Sort your email box, take the notes in your meeting, create a marketing campaign, whatever it is that you do.” Through that initial process of personal exploration, you start to understand the potential of the technology, she says.
The next step, Vanwinkle says, is collaboration, discussions, and experimentation among colleagues within the same departments or functionalities.
“This whole spirit of experiment, learn fast. That twitch muscle can turn into something of value when people talk openly,” Vanwinkle says.
The importance of embracing experimentation, and fostering it as a value within the organization, was echoed by Indeed chief information officer Anthony Moisant.
“I think about the pilots we run, most of them fail. And I’m not embarrassed at all to say that,” Moisant says. It all comes down to what a particular organization is optimizing for, and in the case of Indeed, Moisant says, “what we go for is fast twitch muscle. Can we move faster?”
By encouraging more low stakes experiments with AI, companies can gain valuable insights and experience that employees can leverage quickly when it counts. “The only way to move faster is to take a few bets early on, without real long term strategic ROI,” says Moisant.
Workday Vice President of AI Kathy Pham emphasizes that with new tools like AI, getting a full picture of an employee’s value and performance may take a bit longer than some people are used to. “Part of the measurement is better understanding what the return is and over what period of time,” she said.
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