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Google just previewed its smartest Gemini yet for developers. Anthropic's Claude Gov now works inside U.S. intelligence. An AI foot scanner saves lives pre-symptom. And Klarna? Its AI cuts thousands of jobs, making human service a luxury. As enterprise tools get smarter, the question is no longer what AI can do but who gets the good stuff.

In today’s Generative AI Newsletter:

• Google drops Gemini 2.5 Pro with major upgrades for coders and creators

• Anthropic launches Claude Gov to serve national security operations

• AI scanner predicts heart failure nearly two weeks in advance

• Klarna cuts 700 jobs, reserving human service for premium clients

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🚀 Google Drops Gemini 2.5 Pro Upgrade Preview

Google just rolled out a new preview of Gemini 2.5 Pro, touting it as its most intelligent model yet with standout gains in coding, reasoning, STEM performance, and multimodal understanding, plus a few key fixes users demanded.

What’s new:

• Top of the charts: Gemini now leads key benchmarks 24 Elo points up on LMArena (1470) and 35 points up on WebDevArena (1443)

• Sharper across the board: Google fixed non-coding regressions from the last release, boosting output in creative writing, structured reasoning, and general versatility.

• Cost control for devs: New thinking budgets in the API allow devs to manage compute and latency for enterprise use.

• Instant access: The updated model is already live in Gemini AI Studio, Vertex AI, and rolling out to the Gemini app.

A full stable release will follow in weeks. Instead of big bang launches, it’s moving toward rolling improvements, giving developers early access and tighter feedback loops. The result? A smarter, more responsive Gemini that’s built to evolve at startup speed.

🏛️ Anthropic Launches Claude Gov for U.S. Intelligence

Anthropic just revealed Claude Gov, a custom version of its AI models built exclusively for U.S. defense and intelligence agencies with tailored safety guardrails, reduced refusals on classified tasks, and enhanced national security performance.

What’s happening:

• Already deployed at top U.S. national security levels, Claude Gov is restricted to users working in classified environments only.

• The models offer better comprehension of sensitive defense and intelligence materials, while lowering refusal rates on restricted documents.

• Features include foreign language fluency, improved cyber threat recognition, and optimized intelligence data parsing for mission-critical ops.

• Claude Gov maintains Anthropic’s safety limits on weapons design, disinfo, and cyberattacks, even while flexing to government-specific exemptions.

Anthropic, OpenAI, and others are now embedding their models in classified government systems, trading tight ethical boundaries for defense contracts. The real test will be whether these custom models stay aligned with public interest as they’re weaponized by geopolitics.

 🫀AI Foot Scanner Detects Heart Failure Weeks in Advance

Cambridge-based Heartfelt Technologies has developed an AI-powered foot scanner that spots signs of heart failure up to 13 days before hospitalization, offering a hands-free, at-home solution that could transform chronic care.

Key Details:

• The wall-mounted device captures 1,800 images per minute of patients’ feet and ankles to detect fluid buildup, a key early sign of heart failure.

• In a six-month trial across five NHS trusts, the scanner predicted five out of six hospitalizations with an average lead time of 13 days.

• The system is fully automated, requires no patient input, and 82% of participants kept it after the study due to ease of use and peace of mind.

This is what proactive healthcare looks like non-invasive, ambient AI quietly watching for trouble before it strikes. Instead of relying on ER visits, patients may soon have clinical-grade monitoring embedded in their own homes, shifting the burden from hospitals to smarter living spaces.

👔 Klarna Cuts 700 Jobs With AI: Human Service Now a Luxury

After championing AI and slashing its workforce, Klarna CEO Sebastian Siemiatkowski now says human customer service will be reserved for premium clients calling it the “hand-stitched” equivalent of support.

What’s new:

• Klarna cut its workforce from 5,500 to 3,000 over two years, replacing many roles with AI agents to reduce costs and boost revenue-per-employee.

• Siemiatkowski says AI will handle the “boring jobs,” while humans will deliver empathy and nuance for high-value users.

• Klarna is also hiring again but selectively and reinvesting AI-driven savings into cash and equity compensation for top human talent.

• Internally, a new type of businessperson-who-codes is emerging, thanks to tools like ChatGPT. Even the CEO now uses AI to understand Slack threads and data infrastructure.

Klarna’s pivot captures a broader reality: AI may dominate operations, but the human touch is being reframed as a luxury. As AI eats the backend, elite customer experience is becoming a paid privilege not a baseline right.

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