Business
One of California’s first labor fights over AI is playing out at Kaiser
Workers of one of the most powerful unions in California are forming an early front in the battle against artificial intelligence, warning it could take jobs and harm people’s health.
As part of their negotiations with their employer, Kaiser Permanente workers have been pushing back against the giant healthcare provider’s use of AI. They are building demands around the issue and others, using picket lines and hunger strikes to help persuade Kaiser to use the powerful technology responsibly.
Kaiser says AI could save employees from tedious, time-consuming tasks such as taking notes and paperwork. Workers say that could be the first step down a slippery slope that leads to layoffs and damage to patient health.
“They’re sort of painting a map that would reduce their need for human workers and human clinicians,” said Ilana Marcucci-Morris, a licensed clinical social worker and part of the bargaining team for the National Union of Healthcare Workers, which is fighting for more protections against AI
The 42-year-old Oakland-based therapist says she knows technology can be useful but warns that the consequences for patients have been “grave” when AI makes mistakes.
Kaiser says AI can help physicians and employees focus on serving members and patients.
“AI does not replace human assessment and care,” Kaiser spokesperson Candice Lee said in an email. “Artificial intelligence holds significant potential to benefit healthcare by supporting better diagnostics, enhancing patient-clinician relationships, optimizing clinicians’ time, and ensuring fairness in care experiences and health outcomes by addressing individual needs.”
AI fears are shaking up industries across the country.
Medical administrative assistants are among the most exposed to AI, according to a recent study by Brookings and the Centre for the Governance of AI. The assistants do the type of work that AI is getting better at. Meanwhile, they are less likely to have the skills or support needed to transition to new jobs, the study said.
There are millions of other jobs that are among the most vulnerable to AI, such as office clerks, insurance sales agents and translators, according to the research released last month.
In California, labor unions this week urged Gov. Gavin Newsom and lawmakers to pass more legislation to protect workers from AI. The California Federation of Labor Unions has sponsored a package of bills to address AI’s risks, including job loss and surveillance.
The technology “threatens to eviscerate workers’ rights and cause widespread job loss,” the group said in a joint letter with AFL-CIO leaders in different states.
Kaiser Permanente is California’s largest private employer, with close to 19,000 physicians and more than 180,000 employees . It has a major presence in Washington, Colorado, Georgia, Hawaii and other states.
The National Union of Healthcare Workers, which represents Kaiser employees, has been among the earliest to recognize and respond to the encroachment of AI into the workplace. As it has negotiated for better pay and working conditions, the use of AI has also become an important new point of discussion between workers and management.
Kaiser already uses AI software to transcribe conversations and take notes between healthcare workers and patients, but therapists have privacy concerns about recording highly sensitive remarks. The company also uses AI to predict when hospitalized patients might become more ill. It offers mental health apps for enrollees, including at least one with an AI chatbot.
Last year, Kaiser mental health workers held a hunger strike in Los Angeles to demand the healthcare provider improve its mental health services and patient care.
The union ratified a new contract covering 2,400 mental health and addiction medicine employees in Southern California last year, but negotiations continue for Marcucci-Morris and other Northern California mental health workers. They want Kaiser to pledge that AI will be used only to assist, but not replace, workers.
Kaiser said it’s still bargaining with the union.
“We don’t know what the future holds, but our proposal would commit us to bargain if there are changes to working conditions due to any new AI technologies,” Lee said.
Healthcare providers have also faced lawsuits over the use of AI tools to record conversations between doctors and patients. A November lawsuit, filed in San Diego County Superior Court, alleged Sharp HealthCare used an AI note-taking software called Abridge to illegally record doctor-patient conversations without consent.
Sharp HealthCare said it protects patients’ privacy and does not use AI tools during therapy sessions.
Some Kaiser doctors and clinicians, including therapists, use Abridge to take notes during patient visits. Kaiser Permanente Ventures, its venture capital arm, has invested in Abridge.
The healthcare provider said, “Investment decisions are distinctly separate from other decisions made by Kaiser Permanente.”
Close to half of Kaiser behavioral health professionals in Northern California said they are uncomfortable with the introduction of AI tools, including Abridge, in their clinical practice, according to their union.
The provider said that its workers review the AI-generated notes for accuracy and get patient consent, and that the recordings and transcripts are encrypted. Data are “stored and processed in approved, compliant environments for up to 14 days before becoming permanently deleted.”
Lawmakers and mental health professionals are exploring other ways to restrict the use of AI in mental healthcare.
The California Psychological Assn. is trying to push through legislation to protect patients from AI. It joined others to back a bill requiring clear, written consent before a client’s therapy session is recorded or transcribed.
The bill also prohibits individuals or companies, including those using AI, from offering therapy in California without a licensed professional.
State Sen. Steve Padilla (D-Chula Vista), who introduced the bill, said there need to be more rules around the use of AI.
“This technology is powerful. It’s ubiquitous. It’s evolving quickly,” he said. “That means you have a limited window to make sure we get in there and put the right guardrails in place.”
Dr. John Torous, director of digital psychiatry at Beth Israel Deaconess Medical Center, said that people are using AI chatbots for advice on how to approach difficult conversations, not necessarily to replace therapy, but that more research is still needed.
He’s working with the National Alliance on Mental Illness to develop benchmarks so people understand how different AI tools respond to mental health.
Healthcare workers say they are worried about what they are already seeing can happen when people struggling with mental health issues interact too much with AI chatbots.
AI chatbots such as OpenAI’s ChatGPT aren’t licensed or designed to be therapists and can’t replace professional mental healthcare. Still, some teenagers and adults have been turning to chatbots to share their personal struggles. People have long been using Google to deal with physical and mental health issues, but AI can seem more powerful because it delivers what looks like a diagnosis and a solution with confidence in a conversation.
Parents whose children died by suicide after talking to chatbots have sued California AI companies Character.AI and OpenAI, alleging the platforms provided content that harmed the mental health of young people and discussed suicide methods.
“They are not trained to respond as a human would respond,” said Dr. Dustin Weissman, president of the California Psychological Assn. “A lot of those nuances can fall through the cracks, and because of that, it could lead to catastrophic outcomes.”
To be sure, some users are finding value and even what feels like companionship in conversations with chatbots about their mental health and other issues.
Indeed, some say the AI bots have given them easier access to mental health tips and help them work through thoughts and feelings in a conversational style that might otherwise require an appointment with a therapist and hundreds of dollars.
Roughly 12% of adults are likely to use AI chatbots for mental healthcare in the next six months and 1% already do, according to a NAMI/Ipsos survey conducted in November.
But for mental health workers like Marcucci-Morris, AI by itself is not enough.
“AI is not the savior,” she said.
Business
This $100,000 EV from Sony is part gadget, part gamble and only available in California
As electric vehicle makers struggle to remain relevant, a new competitor is about to hit California’s roads.
It is stuffed to the sunroof with speakers and screens, and it’s a Sony.
Sony’s joint venture with Honda, Sony Honda Mobility, will launch a luxury EV brand called Afeela just in California this year.
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The sedan is a brash bet that the two old-guard brands can succeed where others have struggled.
“We believe customers are looking for more than just a means of transportation” in their luxury EVs, said Sony Honda Mobility President and Chief Executive Shugo Yamaguchi in a statement to The Times. “They are looking for technology, safety, design, and a personalized experience.”
Afeela vehicles aim to do for driving what the Sony Walkman did for walking.
They have 28 speakers, wraparound screens, an AI assistant and an entertainment system for Karaoke or playing Sony PlayStation games.
The interior of the Afeela vehicle at Afeela Studio in Beverly Hills.
(Ronaldo Bolanos/Los Angeles Times)
Even as the end of government incentives for EVs has taken the air out of the market, Sony and Honda are hoping there are enough high-end Tesla buyers who may be looking to try something different.
Some EV enthusiasts have been alienated by Tesla Chief Executive Elon Musk’s affiliation with President Trump, who has strangled government support for green vehicles.
In West Los Angeles, a big Afeela ad above a Tesla dealership puts the EV leader squarely in its crosshairs.
“Get stares, not glares,” the billboard reads, with a glamour shot of a sleek, silver Afeela 1.
Tesla’s market share in California slipped to 48% last year from around 53% a year earlier.
Honda’s own EVs haven’t been wildly successful but their market share in California edged up to 3.8% last year compared to 1.8% a year earlier.
Afeela is entering the market at a time when federal support for EVs is low and public enthusiasm is faltering.
Major automakers including Ford, General Motors and Stellantis are paring back their EV ambitions. Lucid, a Newark, Calif.-based EV maker, has been struggling to turn a profit and recently laid off more than 300 employees.
Irvine-based luxury EV maker Rivian said last year that it was laying off more than 800 workers as it looked to cut costs.
Afeela has showrooms in San José, Beverly Hills and Century City. The company is manufacturing the cars at a Honda plant in Marysville, Ohio, and will make its first deliveries at the end of the year.
The Sony and Honda joint venture is in the midst of legal obstacles as it aims to build a solid reputation. Last August, the California New Car Dealers Assn. filed a lawsuit against American Honda Motor Company and Sony Honda Mobility, alleging that the companies violated franchise law by selling Afeela vehicles directly to consumers rather than through Honda dealerships.
Various display screens inside the Afeela vehicle at Afeela Studio, Beverly Hills.
(Ronaldo Bolanos/Los Angeles Times)
For now, Californians can reserve an Afeela 1 for a $200 deposit. Selling only in the Golden State at first will allow the company to learn from an engaged customer base, said Yamaguchi.
“California is one of the most advanced markets for EV adoption, grid infrastructure, and new mobility technology,” he said. “It also represents a culture of innovation and creativity that aligns well with the Afeela vision.”
The company is planning to begin sales in Arizona next year.
The car comes in two trims, starting at $89,900 and $102,900. Both trims come with level two automation. When using a vehicle with level 2 automation, the driver must remain in control and attentive while the system assists with braking, acceleration or steering.
While some of Afeela’s tech may have a leg up on the competition, the brand will have to prove there’s healthy demand for it at that price, said Brian Moody, an auto industry analyst.
(Ronaldo Bolanos/Los Angeles Times)
Sony and Honda are looking to capitalize on growing interest in self-driving technology and plan to eventually equip all their vehicles for full autonomy. The Afeela 1 comes with 18 cameras, nine radars, 12 ultrasonic sensors, and lidar, a laser-based radar that Waymo uses to power its autonomous taxis.
“You do have to pay attention and we definitely don’t want people to believe that they can just go to sleep behind the wheel,” said Raisu Williams, an Afeela engagement operations associate. “But we are aiming for that level four autonomy, where you don’t have to drive at all.”
While some of Afeela’s tech may have a leg up on the competition, the brand will have to prove there’s healthy demand for it at that price, said Brian Moody, an auto industry analyst.
“Tesla and its platforms are aging, and the Lucids and Afeelas of the world feel more modern, more futuristic,” Moody said. “We’ll see if the car can make the jump from early adopters and tech-type people to the mainstream.”
The AFEELA logo sits on top of a rear cameras of a Afeela vehicle.
(Ronaldo Bolanos/Los Angeles Times)
Afeela is hoping to have more success than Lucid with attracting a wide audience. Lucid laid off more people this year after laying off around 6,800 people in 2024 and hiring actor Timotheé Chalamet as a brand ambassador.
“I do think Afeela is in danger of heading down the same road as as Lucid,” Moody said. “If those cars can be successful in California, will that translate to success throughout the rest of the country and the world?”
Sony Honda Mobility got its start when the two founding companies formed a strategic alliance in 2022. The new company unveiled its first Afeela prototype in 2023 at the Consumer Electronics Show in Las Vegas.
AFEELA 1 unveiled during a Sony news conference at the Consumer Electronics Show in Las Vegas last year. ,
(Ian Maule/AFP via Getty Images)
Auto industry experts said Honda’s bet on Afeela is somewhat risky for the major automaker, but it could pay off. Because Sony and Honda each own 50% of Sony Honda Mobility, the companies reduce their liability by sharing risk, said auto analyst Kristin Shaw.
Honda has popular gas-powered models such as the Pilot and the CR-V to fall back on if their ambitions with Sony fall through.
“Honda’s bread and butter is still in their production vehicles,” Shaw said. “Honda is hedging its bets across the board, and Afeela is one way for them to explore what could happen.”
Business
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Business
Universal Pictures will now keep its movies in theaters for at least five weekends
Universal Pictures will now keep its new films in theaters for at least five weekends, a reversal from the studio’s previous policy of at least 17 days that was set during the pandemic.
The change takes place immediately, the studio said Thursday. That means it will apply to its newest film, the Colleen Hoover romance “Reminders of Him,” which is out in theaters this weekend. Other upcoming films include Christopher Nolan’s “The Odyssey,” which will be released in July.
“Our windowing strategy has always been designed to evolve with the marketplace, but we firmly believe in the primacy of theatrical exclusivity and working closely with our exhibition partners to support a healthy, sustainable theatrical ecosystem,” Donna Langley, chair of NBCUniversal Entertainment, said in an email to the New York Times, which first reported the news.
Focus Features, Universal Pictures’ specialty film arm, will keep its existing theatrical exclusivity policies, which vary on a case-by-case basis. Chloé Zhao’s “Hamnet,” for instance, was in theaters for 99 days, while 2024’s “Nosferatu” played for 58 days. The minimum is 17 days.
The amount of time films are available exclusively in theaters — known as “windowing” in industry jargon — has become a contentious topic of conversation in Hollywood.
That debate ramped up during the pandemic, when some studios shortened theatrical exclusivity periods in order to move films to release for video on demand or streaming.
Prior to the pandemic, those windows could be as long as 90 days. Now, the average is around 30 days.
Theater owners have argued that shorter windows cut into box office profits and train audiences to wait to watch a movie at home. Distributors have countered that a one-size-fits-all approach doesn’t necessarily work for smaller or mid-budget films, which may find a bigger audience via at-home viewing.
At last year’s CinemaCon trade conference, top theater lobbyist Michael O’Leary called on distributors to establish a minimum 45-day window, arguing there needed to be a “clear, consistent starting point” to set moviegoers’ expectations and affirm commitment to theatrical exclusivity.
The debate has become even more fierce as box office profits still have not recovered from the pandemic. Last year, theatrical revenue in the U.S. and Canada totaled about $8.87 billion, just 1.5% above 2024’s disappointing $8.74-billion tally.
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