Digital transformation is no longer a future ambition—it’s a present-day necessity. Organizations across every industry are adopting artificial intelligence to improve decision-making, automate repetitive work, personalize customer experiences, and uncover new business opportunities. Yet many companies discover that purchasing AI tools is the easy part. The real challenge lies in preparing the organization itself to embrace change.

Successful AI adoption isn’t driven solely by technology. It depends on leadership, culture, processes, and people. Companies that thrive understand that becoming AI-ready is an organizational transformation rather than a software implementation. Leaders who recognize this distinction position their businesses for long-term success while avoiding costly mistakes that often accompany rushed digital initiatives.

One of the biggest misconceptions about AI is that it simply replaces existing workflows. In reality, it reshapes how teams collaborate, communicate, and solve problems. Just as businesses rely on the best video maker online to simplify creative production without replacing human creativity, AI works best when it enhances employees’ capabilities instead of attempting to replace them entirely. The goal is to empower people with smarter tools while allowing them to focus on strategic thinking, innovation, and meaningful customer interactions.

What Does It Mean to Be AI-Ready?

An AI-ready organization has more than modern software or powerful hardware. It possesses the mindset, infrastructure, and leadership needed to continuously adapt as technology evolves.

Being AI-ready typically involves:

• High-quality, accessible business data
• Clear strategic objectives for AI initiatives
• Employees who understand and trust AI tools
• Leadership committed to responsible innovation
• Processes that encourage continuous learning

Organizations that skip these foundational elements often struggle with disappointing AI projects, despite significant investments.

Leadership Sets the Direction

Technology initiatives often succeed or fail because of leadership rather than technical capability. Employees naturally look to executives and managers for guidance during periods of change.

Strong leaders don’t simply announce an AI strategy—they communicate the purpose behind it.

Instead of saying:

“We’re implementing AI because everyone else is.”

Effective leaders explain:

“We’re adopting AI so our employees spend less time on repetitive tasks and more time solving meaningful customer problems.”

That subtle difference creates alignment instead of uncertainty.

Transparent communication also reduces resistance. Employees are more likely to embrace AI when they understand how it supports their work rather than threatens their roles.

Build a Culture That Welcomes Change

Digital transformation isn’t a one-time project. It’s an ongoing evolution that requires flexibility across every department.

Organizations with adaptable cultures share several characteristics:

They Encourage Experimentation

Not every AI initiative will succeed immediately. Teams should feel comfortable testing ideas, measuring outcomes, and learning from failures without fear of punishment.

Small pilot programs often produce valuable insights before larger investments are made.

They Reward Learning

Technology evolves quickly. Continuous education helps employees stay confident rather than overwhelmed.

This may include:

• Internal workshops
• Online certifications
• AI awareness sessions
• Cross-functional knowledge sharing

Companies that invest in learning often see higher employee engagement throughout transformation efforts.

Data Is the Foundation of AI

AI systems are only as effective as the information they receive.

Before launching sophisticated AI initiatives, organizations should examine their data quality.

Questions leaders should ask include:

• Is our data accurate?
• Are departments using consistent information?
• Can teams easily access the data they need?
• Are privacy and security standards in place?

Poor data leads to unreliable AI recommendations, reducing trust throughout the organization.

Investing in data governance early prevents larger problems later.

Empower Employees Instead of Replacing Them

One of the biggest fears surrounding AI involves job security.

Forward-thinking organizations address this concern directly.

Rather than positioning AI as a replacement, they present it as a productivity partner.

For example:

A customer service representative can use AI to summarize conversations before responding to customers.

A marketing specialist can generate content ideas faster while still applying human creativity and brand judgment.

A financial analyst can automate repetitive reporting while dedicating more time to strategic planning.

These examples demonstrate that AI amplifies expertise rather than eliminating it.

Create Cross-Functional Collaboration

AI initiatives rarely belong to one department.

Successful implementations often involve collaboration between:

• IT teams
• Human resources
• Operations
• Marketing
• Legal
• Finance
• Executive leadership

Each department brings unique perspectives that improve decision-making.

For example, while data scientists may understand algorithms, HR teams understand employee concerns, and legal departments ensure compliance with regulations.

Cross-functional collaboration minimizes blind spots and improves adoption across the business.

Focus on Business Problems, Not Technology

Many organizations become distracted by the latest AI tools instead of identifying the problems they actually need to solve.

A more effective approach starts with business objectives.

Examples include:

• Reducing customer response times
• Improving demand forecasting
• Increasing employee productivity
• Detecting fraud more efficiently
• Personalizing customer experiences

Once the business challenge is clearly defined, selecting the appropriate AI solution becomes much easier.

Technology should always support strategy—not replace it.

Responsible AI Builds Long-Term Trust

As AI becomes increasingly integrated into business operations, ethical considerations become more important.

Responsible AI practices include:

Transparency

Employees and customers should understand when AI contributes to decisions.

Fairness

Organizations should regularly monitor AI systems for bias and unintended discrimination.

Privacy

Customer and employee data must be handled responsibly and securely.

Accountability

Humans should remain responsible for significant decisions, especially in hiring, healthcare, finance, and legal processes.

Companies that prioritize responsible AI strengthen trust among employees, customers, and stakeholders.

Measure Progress Beyond ROI

Financial returns matter, but they’re only one indicator of successful transformation.

Leaders should also monitor:

• Employee adoption rates
• Customer satisfaction
• Productivity improvements
• Process efficiency
• Innovation outcomes
• Training participation

These metrics provide a broader understanding of organizational maturity.

Transformation is ultimately about creating sustainable improvements rather than achieving short-term financial gains.

Learn from Real-World Success

Many leading organizations began their AI journey with relatively modest initiatives.

A manufacturer might first use predictive maintenance to reduce equipment downtime.

A retailer may introduce AI-powered inventory forecasting before expanding into personalized shopping experiences.

A healthcare provider could automate appointment scheduling before implementing advanced diagnostic support.

These gradual successes build confidence, develop internal expertise, and create momentum for larger transformation projects.

Organizations that attempt to overhaul every process simultaneously often encounter unnecessary complexity and employee fatigue.

Starting small and scaling strategically produces stronger long-term results.

Prepare for Continuous Evolution

AI technology will continue advancing rapidly over the coming years. New models, automation capabilities, and analytical tools will emerge faster than many organizations can fully implement them.

Rather than chasing every innovation, successful leaders establish adaptable systems capable of evolving over time.

This includes regularly reviewing AI strategies, updating employee skills, improving governance, and reassessing business priorities.

Organizations that remain flexible are far better positioned to capitalize on future opportunities while minimizing disruption.

Conclusion

Building an AI-ready organization requires much more than adopting cutting-edge technology. It demands visionary leadership, a culture of continuous learning, reliable data, responsible governance, and a commitment to empowering people alongside intelligent systems.

The organizations that succeed won’t necessarily be those with the biggest technology budgets. They’ll be the ones whose leaders inspire confidence, encourage innovation, and create environments where employees and AI work together to solve meaningful business challenges. By focusing on people as much as technology, businesses can build a resilient foundation for digital transformation that delivers lasting value in an increasingly AI-driven world.

Student loan defaults are up to a record high, with 9.5 million borrowers in default, meaning they are more than 270 days behind on loan payments, according to data from the Office of Federal Student Aid. 

The near-10 million borrowers in default represent a record-high and nearly double the number in default at the nadir of a pandemic-prompted moratorium on student loan payments enacted by former President Joe Biden. 

In March 2025, months after a default-halting payment pause that Biden signed at the onset of the COVID-19 pandemic ended, the U.S. had 5.3 million borrowers in default. 

The Biden-era moratorium technically ended in January 2024, but the former president tacked on a 9-month extension that lasted until September 2024. With borrowers having 270 days to pay before entering default, June 2025 started a skyrocketing of defaults that saw the U.S. add over 4 million defaulted borrowers. 

TRUMP ADMINISTRATION AGREES TO SPEED UP STUDENT LOAN FORGIVENESS UNDER NEW COURT DEAL

President Joe Biden speaks in the Rose Garden of the White House in Washington, D.C., US, on Tuesday, May 14, 2024. (Tierney L. Cross/Bloomberg via Getty Images / Getty Images)

The 9.5 million defaulted borrowers represent more than 20% of all federal student loan borrowers. 

Of the $1.7 trillion of federally-backed student loans in the U.S., $233.3 billion is in default, according to the Office of Federal Student Aid data. 

Borrowers in default are vulnerable to a number of collection methods that include loans being sent to collections agencies or having their wages garnished directly from their paychecks. 

The Trump administration has thus far been unwilling to take such strong measures, with the Department of Education choosing to delay a plan to resume garnishment in January.

TRUMP ADMIN STARTS SENDING NOTICES TO STUDENT LOAN BORROWERS IN DEFAULT AHEAD OF WAGE GARNISHMENT

A sign marks the location of the U.S. Department of Education headquarters building on June 20, 2025, in Washington, DC. (J. David Ake/Getty Images / Getty Images)

But following a Republican Attorneys General-led effort, a federal appeals court terminated the SAVE Plan, a Biden-built program that lowered repayment rates for student loan borrowers and which 7.5 million Americans had signed up for.

Though the challenge was led by red state Attorneys General, the Trump Department of Justice (DOJ) backed the efforts by encouraging federal courts to vacate the plan and reaching settlements with states that were suing, such as Missouri.

WASHINGTON – JANUARY 10: Missouri Attorney General Andrew Bailey arrives to testify during the House Homeland Security Committee hearing on “Havoc in the Heartland: How Secretary Mayorkas’ Failed Leadership Has Impacted the States” on Wednesday, Janu (Bill Clark/CQ-Roll Call, Inc via Getty Images / Getty Images)

The U.S.’s southern states have the highest concentrations of borrowers in default, with Mississippi leading the way at over 28% of its borrowers in default, according to an analysis from the Associated Press (AP). 

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While Mississippi leads all U.S. states, the territory of Puerto Rico has an even higher concentration of borrowers in default at over 30%.

Fox Business contacted the White House and the Department of Education for additional comment. 

The Associated Press contributed to this report.

Nvidia has held the position as the world’s biggest company since about a year ago, when it became the first to reach $4 trillion in market value. It soared past former leaders Apple and Microsoft. But in recent days, Apple, which hasn’t climbed as much as its peers during the artificial intelligence (AI) boom, has been making a comeback.

And on July 17, Apple even slipped ahead of Nvidia to become – at least for part of the trading session – the world’s biggest company. By the end of the day, though, Nvidia returned to the lead with a value of $4.9 trillion. That’s compared to $4.89 trillion for Apple.

As these tech giants vie for the position as the world’s biggest company, which is the better buy now? Let’s find out.

APPLE BRIEFLY OVERTAKES NVIDIA AS WORLD’S MOST VALUABLE COMPANY AMID AI INVESTMENT DOUBTS

Apple even slipped ahead of Nvidia on July 17 to become – at least for part of the trading session – the world’s biggest company. (Adam Gray for Fox News Digital)

The case for Nvidia

Nvidia stock has soared more than 300% over the past three years amid excitement about its position in the AI market. The company is the No. 1 designer of graphic processing units (GPUs), the chips used to power AI development and use. This strength, along with Nvidia’s full portfolio of related products and services, has generated double- and triple-digit earnings growth in recent years.

For example, in the recent quarter, Nvidia’s revenue surged 85% to more than $81 billion, and this was at a high level of profitability on sales, as we can see through the company’s gross margin – that figure has exceeded 70% quarter after quarter.

JENSEN HUANG SAYS NVIDIA’S NEW RTX SPARK CHIP WILL REINVENT THE PC

Nvidia stock has soared more than 300% over the past three years. (Patrick T. Fallon/AFP via Getty Images)

Nvidia focuses on innovation, pledging to update its GPUs on an annual basis, and this has helped it stay ahead. The company has also steadily expanded its reach in order to make it the key place to go for anything AI. In the latest quarter, Nvidia announced the upcoming release of its first stand-alone central processing unit (CPU), a move that opens the door to a $200 billion market.

Investors have piled into Nvidia’s stock in recent years, understanding that an investment in this company should put them on track to benefit from the AI revolution.

The case for Apple

Apple shares have advanced – but not as much as those of Nvidia. Over the past three years, Apple has climbed about 70%. The company has been slower to invest in and apply AI than many of its peers – for example, it only began rolling out AI features across its devices in the fall of 2024, and the rollout continues. So, investors aiming to get in on potential AI leaders turned away from Apple and chose companies that were investing more aggressively in the space.

APPLE TO INVEST $30 BILLION IN US CHIP MANUFACTURING

This trend, however, hasn’t hurt Apple’s earnings growth. In fact, the company has proven itself to be a player investors can count on for progress in this area. Apple has a fantastic moat, or competitive advantage, and this is its brand – customers love the iPhone and won’t easily switch to another. In the first quarter, the iPhone 17 was the world’s top-selling smartphone, according to Counterpoint Research.

Apple shares have climbed about 70% over the past three years. (Apple Inc./Reuters)

Apple also is benefiting from its sales of services, with services revenue reaching records quarter after quarter. After building up more than 2.5 billion active devices over the years, Apple now can count on these devices for recurrent revenue. When customers sign up for digital entertainment or storage, for example, this represents a regular stream of income for the company.

Today, investors may be turning to Apple as they recognize these strengths and as they seek an alternative to companies heavily exposed to AI.

The better buy?

Nvidia and Apple have proven their earnings strength and leadership over time. So either makes a solid long-term investment. But if you could only choose one to buy right now, which one should you go for?

Nvidia clearly beats Apple when it comes to valuation. At these levels, the chip giant looks dirt cheap, particularly considering the AI empire it’s built and its long-term prospects in the field. It’s important to note that even if AI stocks slump temporarily, the AI story remains strong, with the technology already put to use in many areas.

So now is a fantastic moment to get in on Nvidia at these levels. That said, cautious investors who aim to avoid any AI turbulence still may prefer picking up Apple shares, as even at today’s level, the stock has room to run.

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.

Newly enacted housing legislation that bans institutional investors from purchasing single-family rental homes has those same investors putting up more “for sale” signs.

The number of homes owned by institutional investors listed for sale is, as of this month, more than double what it was at the start of February, according to an analysis provided exclusively to Property Play by Parcl Labs, a real estate data provider.

Listings have gone from 4,166 on Feb. 1, when Parcl launched its full research, to now 9,447 homes representing $3.1 billion in total asking price.

“The rate of for-sale change is something to keep an eye on,” said Jason Lewris, co-founder of Parcl Labs. “These numbers won’t materialize into actual dispositions for months given how long the sales cycle can be, but it’s the fastest read into institutional behavior.”

The legislation defined institutional investors as those owning 350 or more homes. That was a surprise to the industry, which traditionally set that bar at 1,000 homes. It does not force them to sell the homes they currently own, but they are barred from buying any more homes unless they fall under certain exceptions, including build-to-rent.

The charge by lawmakers was that these investors, most of whom were able to buy the homes with all cash, were inflating prices and sidelining regular owner-occupant buyers. The call for a ban was bipartisan.

Large-scale investors first entered the market during the financial crisis in 2008, when foreclosures were rampant and bulk auctions were popping up in the hardest-hit markets, like Atlanta, Las Vegas and Phoenix. Private equity firms purchased thousands of homes in a short period, converting them to rentals and creating a new single-family rental asset class.

The cohort of investors with 350 or more homes that therefore fall under the new legislation now own roughly 589,000 homes, or 3.9% of the 14 million single-family rental homes in the U.S., according to Parcl. They account for roughly 40% of the net selling year to date.

The largest landlords — Progress Residential, Invitation Homes, AMH, Tricon, FirstKey, Amherst and VineBrook — are all net sellers year to date, with 3,180 more homes sold than bought since Jan. 1. To put that in perspective, they still own about 400,000 homes, so it’s not exactly a liquidation sale, with one exception. VineBrook currently has nearly 10% of its portfolio on the market, roughly 1,900 homes with a total asking price of $285 million.

Invitation homes and AMH, the two publicly traded, single-family rental REITs, have 549 and 536 homes for sale, respectively. The largest landlord, Progress Residential, has the least of the larger players, just 143 for sale.

“There is broad recognition now both by the White House and lawmakers, in an overwhelming majority, that private capital has a very big role to play for a component of the American population that wants to rent a home,” said Stephen Scherr, co-president of Pretium, in an interview last week on CNBC’s “Squawk on the Street.” Pretium is the parent company of Progress Residential. 

Progress is now focusing on the areas that the new legislation allows and which the industry fought hard for during the legislative process.

“We can buy build-to-rent, which is a predominant component of new housing. We can buy under various other exceptions including rent-to-renovate, where we improve the housing stock or we buy under a homeownership boost, where we give people an opportunity to transition where they want from renters to owners,” Sherr said.

The build-to-rent play has been gaining significant steam over the past few years as demand for single-family rental housing grows.

AMH started early, in 2017, building its own homes. It has so far developed more than 14,000 homes for rent in 180 communities, according to the company. Invitation Homes purchased an Atlanta-based homebuilder, ResiBuilt, at the beginning of this year. 

“The financing case has materially changed with the forced disposition mandate removed. Lenders can underwrite [build-to-rent] again, and we’re starting to see this happen,” Chris Nebenzahl, vice president of rental research at John Burns Research and Consulting, wrote in a report. 

The investors who are selling are offering discounts on the properties. Nationally, 38.7% of all listings for sale today have had price cuts compared with 54% within the institutional, single-family rental cohort, according to Parcl Labs. Since early May, markdowns have deepened from about 3.1% to 4% of asking value. Meanwhile, 54% of the investor listings for those in the more than 350 homes category carry a price cut.

“From what we can tell, given where U.S. home prices are, some of this is attributed to shifts in strategy — collect high dollar values off of top U.S. home values by culling underperforming assets and redirect that capital towards growth areas, i.e. build-to-rent, for example,” Lewris said in a statement, adding that the next six to eight weeks will be telling.

Peter Kyle has been sacked as business secretary on Andy Burnham’s first day in Downing Street, leaving the government’s flagship late payment crackdown without the minister who built it while the bill is still midway through parliament.

Kyle became the third cabinet minister dismissed on Monday afternoon as the new Prime Minister assembled his own top team, following housing secretary Steve Reed and deputy prime minister David Lammy out of the door. Rachel Reeves was also sacked as chancellor, as Burnham moved swiftly against ministers most closely associated with Sir Keir Starmer.

No successor has been confirmed. The Financial Times has reported that Jonathan Reynolds could return to the brief, the role he handed to Kyle only last September.

For business owners, though, the more pressing question is not who next sits behind the desk at the Department for Business and Trade, but what happens to the agenda Kyle leaves behind.

Chief among it is the Small Business Protections (Late Payments) Bill, laid before parliament in May. The legislation caps payment terms at 60 days for large firms paying smaller suppliers, imposes mandatory interest of 8 per cent above the Bank of England base rate on overdue invoices, and hands the Small Business Commissioner powers to investigate and fine serial offenders. Government figures suggest poor payment practices drain roughly £11 billion a year from the economy and contribute to the closure of an estimated 38 small businesses every day.

Kyle had made the bill personal. He told Business Matters in May that he would not “resile from delivering” what he called a “step change in the relationship between all larger businesses and their supply chains”, adding: “Sixty days is a solid, reasonable outer limit for paying a small business.”

With the CBI and the British Retail Consortium already pressing concerns ahead of committee stage, the departure of the bill’s most vocal defender hands corporate lobbyists an opening at an awkward moment for small firms. Whoever inherits the brief faces an immediate test of nerve: hold Kyle’s line, or let the toughest payment rules in the G7 soften on the way to the statute book.

The churn itself will grate. Kyle’s successor will be the third business secretary since Labour took office two years ago, an unhappy echo of the revolving door at the business department that firms endured under successive Conservative administrations. Kyle used his ten months in post to promise an active, interventionist department, setting a target of nurturing Britain’s first $1trn company and pledging to make the UK the best place to start and scale a business.

His exit also lands amid a wider reorganisation of the Whitehall machinery that matters to growing firms. Officials have been asked to draw up plans to close the science and technology department, with its responsibilities split between the business department and the culture department, a proposal that has already provoked a revolt from tech leaders. The next business secretary could therefore take on a substantially bigger empire, and a year of restructuring to go with it.

Burnham, for his part, has promised to “bring forward the biggest changes in the last 40 years”, with a return to public ownership, a 10-year plan for the country and cost-of-living measures expected as early as Tuesday.

For SMEs, three things now bear watching: who gets the business brief, whether the late payments bill survives committee stage intact, and where the science department’s funding streams end up. On all three, owners will hope the new Prime Minister moves faster than the reshuffle rumour mill.

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk