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How Cisco uses AI agents and nudges to cut bureaucracy and free employees’ time 

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While many employees are worried that AI will take their jobs, not all businesses see it in cost-cutting terms.  

Some, like Cisco, ranked fifth on Fortune’s 100 Best Companies to Work For – Europe list, are instead trying to use the technology to unlock employee potential—and give them back their time. 

“If you look at this only through the lens of how do we increase productivity of a company… it’s shortsighted,” says Kelly Jones, chief people officer at Cisco. “If you can give 5% of their time back to a more than 86,000-person enterprise, what they can do with that time to drive better outcomes for our customers is exponential.” 

Kelly Jones, chief people officer, Cisco.

Cisco

Using AI to save employee time 

For the HR team at Cisco, one of the basic ways to save employees’ time was to create an AI agent that can directly answer their HR questions using company information and employee data. For example, a question about how much remaining personal time off an employee has gets a quick response without having to open a case with HR.  

The AI agent then goes one step further. When an employee tells the tool they want to take two weeks off in September, the agent not only logs the request but helps take the next step: “It will say, sure, do you want me to write a letter to your leader letting them know you’re going?” Jones says.  

Even an AI agent requires a significant level of employee trust, Jones explains.  

“We’re allowing people to interact with our HR tools for important tasks like entering paid time off or finding out how much they put in their 401k,” she says. “You need to be able to say to them: ‘By opting in, this is what we’re doing with your data, this is how it’s moving back and forth between tools.’” 

Cisco has built the trust that now fuels its AI adoption over years. Eight in 10 (83%) of Cisco employees in Europe would recommend their company as a great workplace to friends and family. For comparison, only 55% of European workers at a typical company would do the same, per a Great Place To Work market survey.  

The AI opportunity for HR 

Building upon these early pilots, Cisco’s plans for AI promise to transform how employees experience the workplace.  

New AI tools will improve time-tracking, currently an arduous manual process for European employees to meet EU regulations. AI will also be able to nudge leaders and employees based on things like flagging employee engagement. 

Jones is particularly excited about the opportunities for personalization. “We fill 10,000 roles a year,” she explains. “Soon AI can go in and give customized nudges to an employee, based on their interest or skills that a role opened up and maybe they should apply.”  

Onboarding can be personalized based on the team and role, helping people get productive faster and reducing the need for additional training. Employees can also get personalized recommendations and resources about available benefits (“One of our biggest challenges is we have so many benefits and people don’t always know about them,” Jones says). 

AI tools can even help leaders with rewards and compensation, giving a nudge when an employee might need an adjustment to ensure they don’t fall behind. 

There’s evidence that these kinds of transformations aren’t getting the investment that AI tools for sales and marketing have received. MIT research found that while 95% of AI pilots have failed to launch, the opportunity to transform back-office processes with AI was largely underfunded at the organizations studied. 

Tips for unleashing AI’s potential 

Trust and employee choice are central to Cisco’s AI transformation. For example, employees who choose to go to the office have higher AI usage than those who do not go at all. Additionally, teams with more autonomy and input over hybrid or remote work options were more likely to quickly adopt AI, Cisco learned.  

“One of our biggest challenges is we have so many benefits and people don’t always know about them…”Kelly Jones, chief people officer at Cisco

“When we empower employees with flexibility and choice, we not only accelerate AI adoption, we enable our top performers to do their best work,” Jones says. 

There are lots of ways to build trust around AI initiatives, but the most important step is to make sure employees are involved in developing the systems and workflows for this new technology.  

“If you involve the employees from every phase, from the evaluation to the policy considerations to the workflow needs, you’re going to get higher adoption,” Jones says.  

While it’s more than 86,000 employees can’t weigh in on every initiative, the team makes an effort to get a representative sample of roles and experiences to offer feedback. Cisco also partners with groups like its Cisco Disability Action Network to test new tools for accessibility issues and to ensure that a new system works for everyone.  

Ted Kitterman is a content marketing manager at Great Place To Work®. 

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Trump administration waives part of a Biden-era fine against Southwest Air for canceled flights

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The U.S. Department of Transportation is waiving part of a fine assessed against Southwest Airlines after the company canceled thousands of flights during a winter storm in 2022.

Under a 2023 settlement reached by the Biden administration, Southwest agreed to a $140 million civil penalty. The government said at the time that the penalty was the largest it had ever imposed on an airline for violating consumer protection laws.

Most of the money went toward compensation for travelers. But Southwest agreed to pay $35 million to the U.S. Treasury. Southwest made a $12 million payment in 2024 and a second $12 million payment earlier this year. But the Transportation Department issued an order Friday waiving the final $11 million payment, which was due Jan. 31, 2026.

The department said Southwest should get credit for significantly improving its on-time performance and investing in network operations.

“DOT believes that this approach is in the public interest as it incentivizes airlines to invest in improving their operations and resiliency, which benefits consumers directly,” the department said in a statement. “This credit structure allows for the benefits of the airline’s investment to be realized by the public, rather than resulting in a government monetary penalty.”

The fine stemmed from a winter storm in December 2022 that paralyzed Southwest’s operations in Denver and Chicago and then snowballed when a crew-rescheduling system couldn’t keep up with the chaos. Ultimately the airline canceled 17,000 flights and stranded more than 2 million travelers.

The Biden administration determined that Southwest had violated the law by failing to help customers who were stranded in airports and hotels, leaving many of them to scramble for other flights. Many who called the airline’s overwhelmed customer service center got busy signals or were stuck on hold for hours.

Even before the settlement, the nation’s fourth-biggest airline by revenue said the meltdown cost it more than $1.1 billion in refunds and reimbursements, extra costs and lost ticket sales over several months.



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Trump slams Democratic congressman as disloyal for not switching parties after pardon

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Trump blasted Cuellar for “Such a lack of LOYALTY,” suggesting the Republican president might have expected the clemency to bolster the GOP’s narrow House majority heading into the 2026 midterm elections.

Cuellar, in a television interview Sunday after Trump’s social media post, said he was a conservative Democrat willing to work with the administration “to see where we can find common ground.” The congressman said he had prayed for the president and the presidency at church that morning “because if the president succeeds, the country succeeds.”

Citing a fellow Texas politician, the late President Lyndon Johnson, Cuellar said he was an American, Texan and Democrat, in that order. “I think anybody that puts party before their country is doing a disservice to their country,” he told Fox News Channel’s “Sunday Morning Futures.”

Trump noted on his Truth Social platform that the Democratic President Joe Biden’s administration had brought the charges against Cuellar and that the congressman, by running once more as a Democrat, was continuing to work with “the same RADICAL LEFT” that wanted him and his wife in prison — “And probably still do!”

“Such a lack of LOYALTY, something that Texas Voters, and Henry’s daughters, will not like. Oh’ well, next time, no more Mr. Nice guy!” Trump said. Cuellar’s two daughters, Christina and Catherine, had sent Trump a letter in November asking that he pardon their parents.

Trump explained his pardon he announced Wednesday as a matter of stopping a “weaponized” prosecution. Cuellar was an outspoken critic of Biden’s immigration policy, a position that Trump saw as a key alignment with the lawmaker.

Cuellar said he has good relationships within his party. “I think the general Democrat Caucus and I, we get along. But they know that I’m an independent voice,” he said.

A party switch would have been an unexpected bonus for Republicans after the GOP-run Legislature redrew the state’s congressional districts this year at Trump’s behest. The Texas maneuver started a mid-decade gerrymandering scramble playing out across multiple states. Trump is trying to defend Republicans’ House majority and avoid a repeat of his first term, when Democrats dominated the House midterms and used a new majority to stymie the administration, launch investigations and twice impeach Trump.

Yet Cuellar’s South Texas district, which includes parts of metro San Antonio, was not one of the Democratic districts that Republicans changed substantially, and Cuellar believes he remains well-positioned to win reelection.

Federal authorities had charged Cuellar and his wife with accepting thousands of dollars in exchange for the congressman advancing the interests of an Azerbaijan-controlled energy company and a bank in Mexico. Cuellar was accused of agreeing to influence legislation favorable to Azerbaijan and deliver a pro-Azerbaijan speech on the floor of the U.S. House.

Cuellar has said he his wife were innocent. The couple’s trial had been set to begin in April.

In the Fox interview, Cuellar insisted that federal authorities tried to entrap him with “a sting operation to try to bribe me, and that failed.”

Cuellar still faces a House Ethics Committee investigation.



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Jerome Powell faces a credibility issue as he tries to satisfy hawks and doves on a divided Fed

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With the Federal Reserve split between increasingly hawkish and increasingly dovish policymakers, Chairman Jerome Powell is due to perform some serious log-rolling when the central bank meets this week.

Another rate cut is a near certainty after the Fed meeting ends on Wednesday, but the main question is what Powell will say about the prospects for more easing next month.

Wall Street expects a hawkish cut, meaning Powell is likely to avoid signaling a January cut to appease Fed hawks, after joining doves to lower rates this month.

“Chair Powell is facing the most divided committee in recent memory,” analysts at Bank of America said in a note on Friday. “Therefore, we think he will attempt to balance the expected rate cut with a hawkish stance at the press conference, just as he did in October.”

But at the same time, the Fed chief has also been insistent that policymakers are not on a pre-determined course and that rate moves depend on the data that come in.

As a result, BofA is doubtful that he can pull off a hawkish cut so easily, considering all the market-moving data that will come out between the two meetings, with some delayed due to the government shutdown.

The week after the Fed meeting, for example, jobs numbers for October and November, October retail sales, and the consumer price index for November will come out. And December readings for those indicators are likely to be released before the next meeting on Jan. 27-28.

“It will be difficult for Powell to send a credibly hawkish signal at the press conference,” analyst said.

BofA still sees a way for him to thread the needle. One option is for Powell to suggest that “significant further weakening” in the jobs data will be necessary to trigger a January cut.

Another option is to argue that 3.5%-3.75%—where benchmark rates would be if the Fed cuts again this week—isn’t restrictive after accounting for inflation, meaning the central bank is no longer weighing on the economy as much.

Similarly, JPMorgan chief U.S. economist Michael Feroli said he expects Powell to stress that after this week’s cut, rates will be close to neutral. So any additional easing would depend on meaningful deterioration in the labor market and not be predicated in risk management.

For now, Wall Street doesn’t expect a January cut, with 25% odds currently being priced in on CME Group’s FedWatch tool. But BofA thinks Powell will likely leave the door open for one.

“We wouldn’t be surprised if markets start pushing more aggressively for a Jan cut in the near term,” analysts predicted. “And the anticipation of this outcome might raise the probability of more dissents in Dec, since hawks might be inclined to dig their heels in instead of compromising.”



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