Companies are reducing their AI usage due to rising costs that strain budgets. Many organizations are reassessing their AI investments and operational strategies to manage expenses more effectively.

Failing grades in UC Berkeley's computer science classes reached 35.3% for CS 10 and 10.6% for CS 61A in spring 2026, significantly higher than previous semesters. Instructors attribute this increase to greater reliance on AI, insufficient mathematical preparedness, and understaffing.

Nearly 70% of middle and high school students believe artificial intelligence is eroding their critical thinking skills, according to a December 2025 survey by the RAND Corporation's American Youth Panel. AI usage for homework among these students increased from 48% to 62% in just seven months.