It’s OK AI hasn’t lived up to the hype some executives promised. But people’s patience might not last forever.

Death, taxes, and Googlers posting funny memes about company news. The tech giant’s employees have a habit of reacting to big news via an internal message board. When a judge ruled favorably in Google’s antitrust case, they didn’t disappoint. (BI’s Alistair Barr thinks the celebration could be premature, though.)

In today’s big story, AI might be in its “meh” era, but that’s not necessarily a bad thing.

What’s on deck:

Markets: Elliott Management is taking on Pepsi, but activist campaigns aren’t as scary as they used to be.

Tech: Amazon wants to help companies design custom AI agents, internal documents show.

Business: A weekend in the Hamptons as it wraps up its busy season.

But first, hype vs. reality.

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The big story

Unfulfilled AI expectations

AI is falling short of some of its executives’ sky-high promises, and that’s okay.

That’s not to say AI is a bust. Instead, as BI’s Hugh Langley smartly puts it, AI is just in the midst of its “meh” era. And that’s not necessarily a bad thing!

Since ChatGPT first graced us with its presence, the proclamations have only gotten bigger and bolder. At this point, every convo about AI is almost like a Mad Lib:

“INDUSTRY is going to get upended by generative AI. At least SHOCKINGLY HIGH PERCENTAGE of jobs will be lost. It’s not worth it anymore for kids to get INDUSTRY-RELEVANT DEGREE when all the robots will be doing the work. It’s time to get a job as a BLUE-COLLAR JOB.”

Three years later, things haven’t always panned out as some have predicted. Sure, there have been job disruptions. But generating dollar signs from leveraging AI has been a tougher nut to crack. A recent study published by MIT reported that only 5% of the companies it studied converted AI into actual revenue.

So are the AI absolutists screwed?

Short answer: No.

Like previous tech developments, AI’s hype is just surpassing its reality. It shouldn’t come as a surprise. AI companies are happy to make big promises to keep the money flowing with billions, maybe even trillions, of dollars on the line.

And progress is being made. AI will almost certainly change the way we do things. (There I go making a Mad Lib.) But the change will be a lot more gradual and incremental than a flip of the switch.

Again, that’s not a bad thing. Remember the tortoise and the hare? Slow and steady wins the race.

However, this relay comes at a high cost. AI bills are mounting. And the real issue could be whether people are willing to wait.

3 things in markets

1. Finance bro vs. bot. In a recent survey, more than 500 Morgan Stanley interns weighed in on AI. While about 96% reported using the tech — and more than 52% said they subscribe to a paid version of an AI tool — some were concerned about it replacing Wall Street jobs. A report from ThoughtLink shared how the tech could reshape four corners of investment banking.

2. The markets are entering a “postmodern” cycle. That’s according to Goldman Sachs strategists, led by chief global equity strategist Peter Oppenheimer. Even though it’s the fourth long secular bull run since World War II, this era is different. The firm shared how investors should navigate it.

3. Why today’s activist campaigns are more bark than bite. Billionaire Paul Singer’s Elliott Management is taking a $4 billion stake in Pepsi. The activist investor wrote in a letter to the company that it believes Pepsi’s stock could rise by more than 50%. Pepsi’s C-suite doesn’t need to worry, though: These big-name campaigns rarely turn into a huge fight anymore.

3 things in tech

1. Amazon is set to enter the AI agent race in a big way. The company is testing a new agentic, AI-powered workspace software called Quick Suite, which allows companies to design custom agents for business and team needs, according to internal documents reviewed by BI. Several companies have already gotten a private preview.

2. Meta’s performance review is in. Christelle Dernon, a top policy manager at the Big Tech company, didn’t miss the chance to rate her employer when she announced she was leaving. She said it “Met Most” of her expectations in a post on Meta’s internal forum.

3. The Big Tech backlash is over. After being ruled a monopoly in 2024, Google got off pretty easy when a federal judge ruled it could keep Chrome. That constitutes more than just a win for the search giant — it shows the push to rein in Big Tech is done, writes BI’s Peter Kafka.

3 things in business

1. Brand crossovers are getting weirder. From Kate Spade’s Heinz ketchup packet purse to Chipotle’s dorm collection with Urban Outfitters, random brand crossovers are everywhere these days. If done properly, experts say they can capitalize on nostalgia and boost cultural relevance. The collabs will need to pass Gen Z’s authenticity radar, though.

2. Instagram on the big(ger) screen. The social media app finally launched an iPad-specific version after 15 years of not having one. BI’s Katie Notopoulos tried it and said it was “like the Cadillac of doomscrolling.”

3. It’s not all picture-perfect in the Hamptons. BI’s Alice Tecotzky spent Labor Day weekend in Long Island’s eastern enclave. She discovered some local tensions over wealth were bubbling up along with some surprising revelations.

In other news

• Is the class of 2029 the most screwed ever?
• Amazon’s strict RTO policy is costing it top tech talent, according to internal document and insiders.
• Klarna is reassigning engineers and marketers to customer support after its AI bet went too far.
• Frontier stands to be the big winner from Spirit’s 2nd bankruptcy.
• Tesla says more than 50% of Model S and X drivers pay for FSD — and the percentage is up for other models too.
• Stock traders are cheering Alphabet’s antitrust win, and Apple is riding the wave.
• I left Meta to launch an AI startup. Now I’m offering up to $2 million to poach its researchers.
• Klarna paid more than $16 million to nonprofits founded by the wife of its CEO, filings show.
• Tesla is stalling in China just as its rivals pick up speed.
• Henry Blodget says the AI boom reminds him of the dot-com era — and that’s not bad.
• A Jeffrey Epstein accuser says victims will make their own list of people in the sex-trafficker’s orbit.

What’s happening today

• NFL 2025 season kickoff.
• Senate Banking Committee considers nomination of Stephen Miran to Federal Reserve.

Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York.

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