Ernst & Young's U.S. division says it will invest $100 million in employee rewards to recognize more human skills and how those attributes will help in AI adoption. So folks who show skills like adaptability, innovation and judgment are becoming more prized-and eligible for new cash incentives.

In an exclusive report, our colleague Allison Pohle has the details: Individuals can earn spot awards up to $500, and the professional-services firm will give cash awards of up to $25,000 to people and teams that make a material difference to the firm.

Context and background: EY isn't alone. KPMG revamped its audit internship training this summer to focus more on teaching critical thinking and judgment. Earlier this year, PwC U.S. rolled out a curriculum meant to emphasize both AI skills and human traits like empathy and creativity. One frequent topic of discussion we have with CFOs and C-suite leaders is how they manage and retain talent. It's becoming especially important in this AI era where those tech skills are rising in importance, which is why Allison's story caught our eye. I reached out for a few more details from Allison, who's out reporting her next story.

Your article points to a more contrarian view, where at least EY is thinking about how to reward human intelligence. What struck you most in your reporting?

I would think of this as a complement to the AI training that many firms are doing. At EY, there's a firm-wide approach to redesign training and development from the internship level all the way through senior ranks. The firm announced a career residency, which is essentially an extended internship that will include up to 12 months of training after the standard eight-week program. It has also introduced bootcamps for engineers and in-person experiential sessions for partners. The point of the monetary reward is to build on all the skills being taught, and reward things like adaptability, innovation and judgment.

Why are they doing this now?

Everyone is talking about how AI will redesign workflows, but it is also affecting the work people do. This is part of a broader initiative to make sure the firm is incentivizing the behavior that it says matters most going forward.

How is this different than other employee spot bonuses?

In this case, EY says anyone can nominate a colleague and the idea is to reward someone in real time. There's also no limit to how much any one person can earn. That's because EY says there's no limit on impact.

Your article also touched on how AI is changing billing practices. Are we seeing the beginning of the end for hourly billing?

In some parts of enterprises, yes-at least for now. I don't think anyone has pricing figured out yet, but there is pressure from clients who want results quicker and in more cost effective ways. But it's not a one-size-fits-all model.

The Day Ahead

📆 Earnings

Dell Technologies

Gitlab

Medtronic

Palo Alto Networks

📈 Economic Indicators

The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey. The Institute for Supply Management releases its Manufacturing Purchasing Managers' Index for August.

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What Else Matters to CFOs

The Securities and Exchange Commission has stepped up its examinations of firms behind so-called special purpose vehicles that purport to offer exposure to private company investments, Corrie Driebusch reports in an exclusive.

SEC examiners have been asking registered investment advisers for proof that their SPVs own or have exposure to the shares in private companies that they claim to, according to people familiar with the matter.

***

After cost overruns at America's last big nuclear power project bankrupted Westinghouse Electric, the company is in the midst of a turnaround and looking at an IPO on the horizon.

Our colleague Jennifer Hiller reports how Westinghouse, best known as the manufacturer of a U.S. flagship reactor, is riding years of trends that favor nuclear power: rising interest in reliable electricity, a global focus on energy security, and a scramble to build electricity-hungry data centers.

"There really is no credible path to the AI build-out and energy security without nuclear," Chief Executive Dan Sumner said in an interview. The company confidentially filed in July for an initial public offering, Jennifer writes.

📰 Other headlines

Anthropic Signs $35 Billion Cloud Deal Backed by Nvidia

Exclusive: FTC to File Lawsuit Alleging Amazon Deceived Advertisers

How Amazon's 'Secret' Ad Pricing System Worked, According to the FTC

Fervo Secures Its Largest-Ever Geothermal Power Deal, With Google

Shein Makes Ho-Hum Market Debut After Years of Geopolitical Drama

The Rapid Expansion That Built Bally's Is Now Under Pressure

Trump Says Communities That Oppose Data Centers Risk Becoming 'Backwards and Poor'

See the New Building Techniques Turbocharging the Data-Center Boom

10 Books to Read: The Best Reviews of August

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📈 Earnings wrapup

GameStop Sees Higher Profit as eBay Investment Offsets Lower Sales

Huawei Profit Slumps by a Third on R&D Expenses, Raw-Material Costs

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The Big Number

Number of barrels of oil per day that Chevron produces in Venezuela. Chevron is the only major U.S. oil company operating in that country.

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