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Artificial Intelligence: News, Business, Research
Essential AI's new open-source model, Rnj-1, outperforms significantly larger competitors on the "SWE-bench Verified" test. This benchmark is considered particularly challenging because it evaluates an AI's ability to independently solve real-world programming problems. Despite being a compact model with just eight billion parameters, Rnj-1 scores 20.8 points.

By comparison, similarly sized models like Qwen 3 (without reasoning, 8B) only reach 4.5 points in Essential AI's testing. The system was introduced by Ashish Vaswani, co-founder of Essential AI and co-author of the famous "Attention Is All You Need" paper that launched the Transformer architecture. Rnj-1 is also Transformer-based, specifically utilizing the Gemma 3 architecture. According to the company, development focused primarily on better pre-training rather than post-training methods like reinforcement learning. These improvements also result in lower pre-training computational costs, thanks to the use of the Muon optimizer.
Entry-level consulting salaries have remained flat for the second year in a row, according to a new report from Management Consulted. The slowdown affects top firms like McKinsey and the Big Four, as well as smaller boutique consultancies. The report cites weaker demand, productivity gains from AI, and fewer employees leaving the industry as key factors.
Namaan Mian of Management Consulted says firms can now get more done with fewer people thanks to AI, which is putting a lid on salary growth. The findings are based on verified offer data and show that companies are hiring fewer high-cost MBA graduates. In previous years, entry-level pay typically rose by five to ten percent annually. Management Consulted expects salaries for new hires to remain flat even if demand eventually picks back up.
HSBC has signed a multiyear partnership with the French startup Mistral AI to bring generative AI across its global operations. According to the announcement, the bank wants to speed up internal workflows and improve customer service by running Mistral's models on its own infrastructure.
HSBC plans to use the technology for financial analysis, translations, and risk assessments. The bank also expects gains in marketing and credit evaluation. It already uses AI for fraud detection and is folding the new tools into its existing security policies.