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A few years ago, if you turned on the heat in an apartment in Helsinki, the energy typically came from coal. But the citys power company shut down one coal plant in 2023, and the remaining one closed this weekfour years earlier than a target set by the national government. Within two years, we have completely phased out coal, says Olli Sirkka, CEO of Helen, the power company, which is a subsidiary of the city. The city has one of the worlds biggest district heating systems, with a network of underground pipes filled with hot water that deliver heat to buildings. It takes a huge amount of energy to run. One large chunk of that now comes from wind power, which has more than doubled in Finland since 2020. Helsinki is now building the worlds largest heat pump, which will send heat to 30,000 homes when it starts running in 2026. At the site of one of the closed coal plants, the city is also building a new facility that will capture heat from the Baltic Sea. Some of the energy also now comes from wood pellets, which Helsinki is using temporarily as it transitions completely away from combustion. (Wood helped replace natural gas from Russia after the invasion of Ukraine, but isnt a good long-term solution. Burning it still produces CO2, it puts pressure on forests, and its more expensive than other alternatives; Finland plans to phase it out completely by 2040.) Helsinki also uses some hydro and nuclear power, and as much waste heat as possible. That includes capturing heat from local data centers and wastewater. Though the coal plants shut down quickly, the push to close them started more than a decade ago. In 2015, a campaign called Coal Free Helsinki convinced the city council to commit to closing the first coal plant. I think activists played a really big role, says Amanda Pasanen, who previously studied the coal phaseout and is now a city councilmember. It was very much due to public pressure that they decided to quit coal burning. At that point, it still wasnt clear how it could happen. Then, it was considered a completely impossible goal, says Sirkka. It was only maybe four years ago there was a solid decision that this has to happen. And then it started to roll really, really fast. [Photo: Helen Ltd] The steep drop in the cost of wind power, thanks to technological advancements and scaled-up production, was key. Wind power decreased electricity prices so much that its actually a very good business case to replace coal with electricity, he says. On the day we talked, it was windy enough that electricity prices in Finland had dropped to zero. (Finland is a fairly windy place and well suited for the technology; while it also has some solar power, it’s so far north that it isn’t sunny in the winter, and solar can’t really be used to power heating.) The power company continually monitors energy sources, shifting from one source to another to optimize costs. The city’s layout, with the district heating system, helped make the switch easier than if every single building had to be retrofitted with different technology. “It’s easier to implement these environment-friendly solutions in a centralized system where you have district heating and where you can use your economies of scale,” says Helsinki Mayor Juhana Vartiainen. Other factors also pushed the company to act quickly. The EUs emissions trading system increased the price of coal as carbon prices rose over time. In 2019, Finland passed a national law to phase out coal by 2029 as part of its climate plan. Changes in national tax policy made coal more expensive and clean power cheaper. In 2021, Helsinki decided to speed up its own plan to become carbon neutral, moving the target date from 2035 to 2030. “There is broad political consensus on the issue [of climate action],” says Vartiainen, noting that when he took office in 2021, there was nearly unanimous agreement that Helsinki should move faster on its already-ambitious plans to cut emissions. Yet even with that political mandate, it wasn’t guaranteed that the change would happen quite as quickly as it did. “It’s been quite surprising, Vartiainen says, to see how fast this shift to electricity has taken place.
Category:
E-Commerce
When President Donald Trump announced his sweeping tariffs against America’s trading partners around the world, Ethan Frisch and Ori Zohar were paying close attention. As the cofounders of the single origin startup Burlap & Barrel, they do business with dozens of small farmers around the world. They source berbere from Ethiopia, adobo from Puerto Rico, black Urfa chili from Turkey. We bring in spices from countries where they are grown in particular ways, using heirloom varieties, says Zohar. We cannot just buy these spices here in the United States. Many are not grown here at all. All of the U.S.’s trading partners has been hit by tariffs; the question is just how big the tariff is. Burlap & Barrel is just one example of a small American company whose business will be adversely hit by these tariffs. Yesterday’s news means Zohar and Frisch will now have to pay at least 10% more for the products they import. The business partners are now scrambling to figure out how to manage this crisis. We’re a small business, Frisch says. We don’t have strategic reserves, or relationships with big banks. We’re particularly sensitive to these price fluctuations. Economists say that businesses will make up for these losses by increasing prices to customers, potentially driving up inflation, or paying their suppliers less, which could profoundly harm workers in poor countries. For now, Burlap & Barrel’s founders have decided to do neitherand absorb these costs internally by halting spending on innovation and special projects. More broadly and alarmingly, they are reckoning with how they can continue building relationships with farmers around the world, when the United States now seems like an unstable, unreliable trading partner. An Ancient Profession Frisch and Zohar launched Burlap & Barrel in New York in 2016, which now has a staff of 20, in an effort to make high-quality spices accessible to more home cooks. They see themselves as part of the ancient spice trade that goes back thousands of years. Their business relies on going to remote corners of the world where small farmers have been growing particular spices for centuries. For instance, they partner with women in Afghanistan who harvest wild cumin, and Guatemalan farmers who harvest cardamom. Part of their mission as a company is supporting communities in developing countries. The founders had been closely following Trump’s tariffs on China, Mexico, and Canada. But they were surprised by the broad sweep of tariffs the Trump administration announced yesterday. There is now a flat 10% tariff across all of America’s trading partners, and additional tariffs on many other countries, including Vietnam, Cambodia, Nicaragua, Thailand, and Malaysia. Burlap & Barrel sources from many of these countries. The expanse of the tariffs was much greater in magnitude than any economist expected, says Joshua Stillwagon, associate professor of economics at Babson College. I expected there to be a phasing-in of the tariffs or some kind of implementation, but that didn’t happen. Last year, the Burlap & Barrel paid $1 million for the cost of goods; this year, they expect this to go up to least $1.4 million. This money needs to come from somewhere. The founders decided from the outset not to pay their suppliers less. We’re a social enterprise, so paying our farmers less is just a nonstarter, says Frisch. We work with small farmers with little access to other income. We have seen firsthand how hard their lives are, and cutting their income could be devastating. Difficult Decisions But they’ve also made the decision not to raise prices, at least in the short term. Part of the mission of their business is to make good quality spices affordable to more people; they charge $9.99 per bottle for everything on their site. Zohar also points out that if the United States goes into a recession, more people may choose to eat at home rather than go out for meals. So if they don’t inflate their prices, people may see them as a resource during turbulent economic times. We didn’t want to jump to increasing prices for our consumers, says Zohar. Burlap & Barrel does not have the option of switching to domestic suppliers because most of their spices are not made in the United States. But even in industries where there are American manufacturers, switching suppliers is not such an easy calculation, says Alex Field, professor of economics at the Leavey School of Business at Santa Clara University. Domestic producers often sell their products at higher prices than their foreign counterparts, he says. So either way, it is going to cost more. Economists expect many companies to pass on cost increases to consumers; unchecked, this will eventually lead to inflation. Stillwagon says the first prices to increase will be on perishable goods, like fruit. But over time, as companies go through their current inventory, it will eventually trickle into many other products. As costs go up, there could be a recession. As companies raise prices on necessities, people are going to be spending more of their budget on those things, he says. As people pull back their spending, they are going to make less profit and hire fewer employees. While the tariffs are causing businesses a lot of stress, Field says that the sheer instability of the economic situation is even more crippling. The Trump administration has rolled out these tariffs in a chaotic manner and there is uncertainty about whether he will renege on them. So Burlap & Barrel’s decision not to increase cost to consumers in the short term makes sense. Trump is so changeable in his views that you may just want to take a ‘wait and see’ approach, and take a hit on profits to see whether the matter resolves itself before you change your catalog pricing and make your customers unhappy, he says. Killing Innovation Frisch and Zohar need to figure out how to make up for the hundreds of thousands of dollars they now have to pay in tariffs. They’ve decided to spend less on innovation. In their case, this refers to things like developing new products, creating interesting partnerships with restaurants and celebrities, and doing special projects. For instance, many people had been asking Burlap & Barrel to create a holiday advent calendar with spices. Frisch says the entire team had been excited about this. But they’ve decided to stop work on it immediately. The packaging for the calendar is now more costly, they were going to source new spices for it, and it was going to take employees’ time. Burlap & Barrel’s approach of cutting back on extraneous spending is going to happen at businesses across the country. And it will have a profound impact on the American economy as a whole. At a time of instability, companies have to be prudent and pull back on investments, including things like buying equipment and spending in innovation, Field says. But this is a key driver of spending and it is what gave American businesses their edge. America is No Longer a Reliable Trading Partner Since launching their business, Frisch and Zohar have been all over the world to build relationships with suppliers. In the past, many of these small farmers were eager to work with American brands, because the country positioned itself as an ideal trading partner. It meant income for them, but it was also a source of pride, says Frisch. They were excited about sending their cinnamon or black pepper to American consumers. But now that Trump has upended the global trading system, this won’t be true for much longer. Countries around the world now see the United States as hostile and unreliable, which could have long-term consequences, even if Trump quickly reverses these particular tariffs. And eventually, this image of America will trickle down to the rural farmers that Frisch and Zohar have worked closely with. Everything has changed, says Zohar. There’s been a radical shift in how the U.S. engages with the rest of the world, and what the American economy represents.
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E-Commerce
The nonstop cavalcade of announcements in the AI world has created a kind of reality distortion field. There is so much buzz, and even more money, circulating in the industry that it feels almost sacrilegious to doubt that AI will make good on its promises to change the world. Deep research can do 1% of all knowledge work! Soon the internet will be designed for agents! Infinite Ghibli! And then you remember AI screws things up. All. The. Time. Hallucinationswhen a large language model essentially spits out information created out of whole clothhave been an issue for generative AI since its inception. And they are doggedly persistent: Despite advances in model size and sophistication, serious errors still occur, even in so-called advanced reasoning or thinking models. Hallucinations appear to be inherent to generative technology, a by-product of AI’s seemingly magical quality of creating new content out of thin air. They’re both a feature and a bug at the same time. {"blockType":"creator-network-promo","data":{"mediaUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2025\/03\/mediacopilot-logo-ss.png","headline":"Media CoPilot","description":"Want more about how AI is changing media? Never miss an update from Pete Pachal by signing up for Media CoPilot. To learn more visit mediacopilot.substack.com","substackDomain":"https:\/\/mediacopilot.substack.com\/","colorTheme":"blue","redirectUrl":""}} In journalism, accuracy isn’t optionaland thats exactly where AI stumbles. Just ask Bloomberg, which has already hit turbulence with its AI-generated summaries. The outlet began publishing AI-generated bullet points for some news stories back in January this year, and it’s already had to correct more than 30 of them, according to The New York Times. The intern that just doesn’t get it AI is occasionally described as an incredibly productive intern, since it knows pretty much everything and has superhuman ability to create content. But if you had to issue 30-plus corrections for an intern’s work in three months, you’d probably tell that intern to start looking at a different career path. Bloomberg is hardly the first publication to run head-first into hallucinations. But the fact that the problem is still happening, more than two years after ChatGPT debuted, pinpoints a primary tension when AI is applied to media: To create novel audience experiences at scale, you need to let the generative technology create content on the fly. But because AI often gets things wrong, you also need to check its output with “humans in the loop.” You can’t do both. The typical approach thus far is to slap a disclaimer onto the content. The Washington Posts Ask the Post AI is a good example, warning users that the feature is an “experiment” and encouraging users to “Please verify by consulting the provided articles.” Many other publications have similar disclaimers. It’s a strange world where a media company introduces a new feature with a label that effectively says, “You can’t rely on this.” Providing accurate information isn’t a secondary feature of journalismit’s the whole point. This contradiction is one of the strangest manifestations of the application of AI in media. Moving to a close enough world How did this happen? Arguably, media companies were forced into it. When ChatGPT and other large language models first began summarizing content, we were so blown away by their mastery of language that we weren’t as concerned about the fine print: “ChatGPT can make mistakes. Check important info.” And it turns out that for most users that was good enough. Even though generative AI often gets facts wrong, chatbots have seen explosive user growth. “Close enough” appears to be what the world is settling on. It’s not a standard anyone sought out, but the media is slowly adopting it as more publications launch generative experiences with similar disclaimers. There’s an “If you can’t beat ’em, join ’em” aspect to this, certainly: As more people turn to AI search engines and chatbots for information, media companies feel pressure to either sign licensing deals to have their content included, or match those AI experiences with their own chatbots. Accuracy? Theres a disclaimer for that. One notable holdout, however, is the BBC. So far, the BBC hasn’t signed any deals with AI companies, and it’s been a leader in pointing out the inaccuracies that AI portals create, publishing its own research on the topic earlier this year. It was also the BBC that ultimately convinced Apple to dial back its shoddy notification summaries on the iPhone, which were garbling news to the point of making up entirely false narratives. In a world where it’s looking increasingly fashionable for media companies to take licensing money, the BBC is architecting a more proactive approach. Somewhere along the waywhether out of financial self-interest or falling into Big Tech’s reality distortion fieldmany media companies began to buy into the idea that hallucinations were either not that big a problem or something that will inevitably be solved. After all, “Today is the worst this technology will ever be.” Think of pollution and coal plants. Its an ugly side effect, but one that doesnt stop the business from thriving. Thats how hallucinations function in AI: clearly flawed, occasionally harmful, yet toleratedbecause the growth and money keep coming. But those false outputs are deadly to an industry whose primary product is accurate information. Journalists should not sit back and expect Silicon Valley to simply solve hallucinations on its own, and theBBC is showing there’s a path to being part of the solution without evangelizing or ignoring the problem. After all, “Check important info” is supposed to be the media’s job. {"blockType":"creator-network-promo","data":{"mediaUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2025\/03\/mediacopilot-logo-ss.png","headline":"Media CoPilot","description":"Want more about how AI is changing media? Never miss an update from Pete Pachal by signing up for Media CoPilot. To learn more visit mediacopilot.substack.com","substackDomain":"https:\/\/mediacopilot.substack.com\/","colorTheme":"blue","redirectUrl":""}}
Category:
E-Commerce
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