Welcome back to Daily Zaps, your regularly-scheduled dose of AI news ⚡️ 

Here’s what we got for ya today:

• 🤖 68% of tech support to be handled by AI

• 🐋 DeepSeek releases upgraded R1 AI model

• 🕵 Perplexity is gunning for Google

• 🧠 DeepMind warns AI will disrupt jobs in 5 years

Let’s get right into it!

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RESEARCH

68% of tech support to be handled by AI

A Cisco report highlights that agentic AI—AI agents combining conversational skills with tool interaction—is set to transform the IT industry, especially customer service. Surveying nearly 8,000 business leaders worldwide, the report projects that by 2028, 68% of customer support interactions with tech vendors could be automated via agentic AI, with 93% believing this will improve personalization and efficiency. Despite AI’s rise, 89% say human involvement remains essential, underscoring the importance of human-to-human connections.

Major tech firms like Google and Microsoft are actively releasing AI agents to enhance productivity and customer experience. The report urges tech vendors to adopt agentic AI swiftly to avoid losing customers and reputation, while also addressing widespread concerns over data security and the need for clear governance strategies.

STARTUPS

DeepSeek releases upgraded R1 AI model

Chinese startup DeepSeek quietly released an upgraded version of its AI reasoning model, DeepSeek R1, on Hugging Face without an official announcement. The company gained global attention earlier this year when its free, open-source R1 model outperformed competitors from Meta and OpenAI, raising concerns about U.S. tech giants overspending on AI infrastructure and causing a market dip in stocks like Nvidia.

The new version improves reasoning, math, and coding abilities, showing significant gains in inference accuracy and reducing AI hallucinations, positioning DeepSeek close to top models like OpenAI’s o4-mini and Gemini. This progress highlights China’s advancing AI capabilities despite U.S. export restrictions on chips, a point underscored by Nvidia CEO Jensen Huang, who criticized U.S. policies for underestimating China’s AI chip development and acknowledged China’s strong AI research presence.

✅ Try it now: https://chat.deepseek.com/

STARTUPS

Perplexity is gunning for Google

Perplexity, an AI-powered search engine competing with Google, launched Perplexity Labs for subscribers of its $20/month Pro plan. Available on web, iOS, and Android—with Mac and Windows apps coming soon—Labs enables users to create reports, spreadsheets, dashboards, and interactive web apps by leveraging AI tools like web search, code execution, and chart generation.

Designed for tasks requiring around 10 minutes or more, it organizes all generated files for easy access and download, expanding Perplexity’s offerings beyond search into productivity tools. This release coincides with other AI platform innovations, such as Manus’s slide deck creator, reflecting Perplexity’s broader strategy, which includes a new web browser and recent acquisition of a professional social network.

BIG TECH

DeepMind warns AI will disrupt jobs in 5 years

Google DeepMind CEO Demis Hassabis urges teens to embrace AI now or risk being left behind, highlighting AI as the defining technology shaping Generation Alpha’s future. Speaking at Google I/O and on the “Hard Fork” podcast, Hassabis predicted that artificial general intelligence (AGI) could emerge within a decade, transforming jobs by disrupting some roles while creating more valuable ones.

He stresses the importance of mastering AI tools early and developing strong STEM skills—especially coding—alongside broader meta skills like creativity, adaptability, and resilience to navigate rapid technological change. Hassabis emphasizes that AI is already here and that young people who immerse themselves in learning how AI works and cultivating a growth mindset will be best positioned to thrive in an AI-driven world.