An AI agent may soon be at your beck and call, but it might cost you a bit of your privacy

The stakes for Google are high, as nailing AI agents opens up a massive business opportunity.

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Halfway to the weekend! What do you get when you create a livestream video portal connecting New York and Dublin? In a word, chaos.

In today's big story, we're looking at Google's big event that's pitching all the ways AI agents can make our lives easier.

What's on deck:

• Markets: Meme stocks haven't given up just yet.
• Tech: Sam Altman gracefully thanked his OpenAI cofounder who quit. Then another exec quit hours later.
• Business: Punching a clock has never been cooler as blue-collar jobs are booming.

But first, AI can help with that.

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The big story

In our AI agent era

Forgot where your glasses are? Need to return some shoes? Want to add stuff to your calendar? AI can help with that.

Yes, I know you've heard some iterations of these pitches before. Since OpenAI's ChatGPT graced us with its presence, all anyone can seem to talk about is how AI is going to change everything.

But now Google is saying these things in a very real way. And when a company that's historically been at the forefront of tech talks, people tend to listen.

Google I/O, the tech giant's biggest developer conference, was heavy on the rise of so-called AI agents, writes Business Insider's Hugh Langley, who was there in person.

Google CEO Sundar Pichai said AI agents "think multiple steps ahead and work across software and systems all to get something done on your behalf and most importantly, with your supervision."

Tuesday's event wasn't just about the new and shiny.

Google's faithful, old search engine got a noticeable facelift with the help of AI, writes BI's Geoff Weiss. Gemini-powered updates were also on display for Gmail.

AI Overviews — AI-generated answers at the top of Google Search results — combines what previously would have been a bunch of steps to answer a complex question into a single search.

But what's good for the user could spell trouble for the rest of the internet. That type of feature could upend businesses built around search engine optimization.

At the center of this movement sits Project Astra, which is what Hugh succinctly describes as "what the Google Assistant should have been all along."

BI's Alistair Barr, who was also at I/O, got to test out Project Astra, and chatted with Gregory Wayne, the head of the project.

The stakes for Google are high, as nailing AI agents opens up a massive business opportunity.

For all the chatter AI has received, there hasn't been a singular application that has grabbed consumers' attention yet, writes Alistair. But Google's demos at the event give it a real shot at finally creating a killer AI app.

But Google's AI ambitions also require people to let the tech giant into their lives in a big way.

Google DeepMind chief Demis Hassabis described AI agents "that can see and hear what we do better, understand the context we're in and respond quickly in conversation making the pace and quality of interaction feel much more natural."

That concept is equally impressive and terrifying.

For AI agents to be so intuitive, they'll need access to seemingly every aspect of our lives. And with people getting increasingly protective over their data, that might be a tough sell.

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3 things in markets

1. Meme stocks keep memeing. GameStop and AMC Entertainment have continued their massive rallies, finishing Tuesday up more than 59% and 30%, respectively, following the re-emergence of Keith Gill, aka "Roaring Kitty." But not everyone is impressed, with one market guru calling it a "speculation orgy."
2. Another inflation report is coming. Here's how the market could react. All eyes are on today's April CPI report, which could dictate the timeline for interest rate cuts. A hot report might lead the S&P 500 to drop as much as 2.5%, according to JPMorgan, while cooler data could mean June rate cuts are a possibility. Here are six scenarios the bank sees playing out.
3. The head of Citi's fastest-growing wealth business is leaving. Naz Vahid, who heads a division devoted to serving rich law-firm partners and other rich executives, is exiting the bank after 38 years, according to a memo seen by BI. Check out Citi wealth boss Andy Sieg's announcement.

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3 things in tech

1. Adam Selipsky is out at AWS. According to an internal memo, the Amazon Web Services CEO is stepping down, effective June 3. Selipsky's tenure was marked by slow growth rates, major layoffs, and challenges in AI. He'll be succeeded by Matt Garman, AWS's senior vice president of sales, marketing, and global services.
2. Mental health startups could face a reckoning this year. Facing tight funding conditions, the market is due for more deals. Healthcare analysts shared the 13 mental health startups that could IPO, make acquisitions, or get bought this year.
3. Ilya Sutskever is leaving OpenAI. The OpenAI cofounder said in a post on X on Tuesday that he's stepping away from the company after nearly a decade — and just hours later, another top exec announced he'd also resigned. Sutskever's position at the ChatGPT developer had been in doubt for the past six months after reports indicated he'd played a key role in last year's attempt to oust CEO Sam Altman.

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3 things in business

1. Peloton might be headed for the fitness-fad graveyard. The connected-fitness company is struggling. Its CEO, who joined in 2022, is stepping down. It recently announced layoffs of 400 people. The stock is near a record low. In short, the road ahead is a rocky one.
2. Blue-collar jobs are booming. The jobs, which don't require sitting in front of a screen, have again assumed a competitive position within the American labor market. Demand is high, opportunities abound, and companies like Walmart and UPS are offering six-figure salaries and flashy benefits.
3. Big TV isn't dead just yet. That's according to Nielsen, which has a new way of tracking attention among media companies, including digital upstarts. BI's Peter Kafka breaks down the data, which shows legacy TV companies are still drawing in viewers across various platforms.

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In other news

• 'All That' star Lori Beth Denberg says Nickelodeon's Dan Schneider showed her porn, initiated phone sex, and lashed out on set.
• Jellysmack raised a 9-figure war chest as the creator economy soared. Insiders say it bit off more than it could chew.
• Red Lobster could file for bankruptcy this month following the closure of 50+ stores: WSJ
• Hackers really, really like trying to take over your food delivery apps
• Guy Fieri says rucking — the hot, new fat-burning workout — helped him lose 30 pounds.
• 5G and 6G are among 'the most strategic sectors' in the AI age, a national security advisor says.
• Behind the curtain of the global arms trade.
• 4 of the best looks worn at the 2024 Cannes Film Festival so far, and 3 that missed the mark.
• Kindergarten court: Trump lawyer grills Michael Cohen on insulting ex-president as a 'Cheeto-dusted cartoon villain.'

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What's happening today

• Today's earnings: Cisco Systems and other companies are reporting.
• Warner Bros. Discovery is hosting its upfront presentation, unveiling its 2024- 2025 program lineups.
• Uber is holding its Go/Get product showcase, revealing new products across the platform.

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The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. George Glover, reporter, in London.