As Economy Shifts, AI Rises and Consumer Protection Hangs in the Balance

As the US economy navigates uncharted territory, a mix of optimism and concern prevails among Americans. According to the latest consumer confidence survey from the Conference Board, Gen Z and young millennials are the only demographic feeling positive about the economy's future, while their older counterparts remain pessimistic. This disparity in sentiment is reflected in the current economic landscape, where trade and inflation concerns dominate the headlines.

Meanwhile, the Consumer Financial Protection Bureau (CFPB) faces an uncertain future, as the Trump administration's spending freezes and cuts have crippled the agency's ability to regulate banks and protect consumers. The full U.S. Court of Appeals for the DC Circuit is set to hear oral arguments in an appeal from the National Treasury Employees Union and other plaintiffs, which will determine the fate of the agency.

In contrast, the business world is embracing artificial intelligence (AI) with open arms. A Harvard study published by the National Bureau of Economic Research found that AI and machine learning can predict up to 71% of mutual fund managers' trade directions, potentially disrupting the finance industry. This trend is evident in the success of companies like Cava, a Mediterranean fast-casual chain that has surpassed $1 billion in sales, with revenue growth of 22.5% in 2025. Cava's CFO, Tricia Tolivar, attributes the company's success to long-term discipline and a focus on menu innovation.

AI is not only transforming industries but also influencing personal lives. McDonald's CEO Chris Kempczinski, a self-proclaimed "supersubscriber" to AI tools, used an AI image generator to create a family Christmas card photo, highlighting the increasing presence of AI in everyday life.

As AI continues to rise, concerns about job displacement and the need for regulation grow. The CFPB, in its current form, plays a crucial role in protecting consumers from financial exploitation. However, its uncertain future raises questions about who will safeguard consumers' interests in an increasingly AI-driven economy.

The intersection of AI, business, and consumer protection will likely be a dominant theme in the coming years. As the economy evolves, it remains to be seen how these factors will interact and impact Americans' lives. One thing is certain, however: AI is here to stay, and its influence will only continue to grow.

Sources:

• "The Consumer Financial Protection Bureau is under threat" (Source 1)
• "Cava trounces fast-casual peers with 22% revenue growth, surpassing $1 billion in sales for the first time" (Source 2)
• "Harvard study shows AI stock trading rivals many picks made by fund managers" (Source 3)
• "Gen Z and young millennials are the only ones feeling good about the economy—everyone else is worrying about trade and inflation" (Source 4)
• "McDonald's CEO is a 'supersubscriber' of AI tools—and even used it to photoshop all his kids into a Christmas card" (Source 5)