THU AM News: UW comp sci expert predicts dwindling advantage for major AI firms; Home sales up 7.4% in April, WRA reports

May 21, 2026

— A computer science expert at UW-Madison expects major AI firms will face a dwindling economic advantage as widely available models become more powerful, while companies running data centers will thrive.

Patrick McDaniel, a professor in the university’s School of Computer, Data and Information Sciences, was a featured speaker during the latest UW Now livestream held by the Wisconsin Alumni Association.

“The people that are building models for AI aren’t necessarily the companies that are going to win the ‘AI wars,’” McDaniel said this week. “Put another way, companies like … ChatGPT and Anthropic are producing technology that can be, not readily, but within a matter of months, reproduced by the public.”

As a result, free-to-use AI platforms are steadily becoming more powerful as the technology advances, meaning “the economic differentiator of these larger companies are going to diminish,” he said. At the same time, the “really dominant” businesses will be the ones providing the critical infrastructure underpinning this broader AI usage.

“These large data centers are going to be the utilities for AI,” he said. “You will need to use these large-scale utilities to practice AI, even though the … software may be readily available.”

McDaniel also weighed in on the public’s “rejection” of AI, particularly among young people. He referenced a study showing just 18% of Gen Z have a positive outlook on AI, arguing this generation generally distrusts the technology.

He drew a comparison with the evolution of advanced internet search engines over the last two decades, noting Google initially dominated the space when it was introduced with its sophisticated relevance-based search function.

But over the last 25 years or so, this model has shifted into a “bidding war over your attention,” McDaniels noted, as results were monetized to prioritize businesses and others willing to pay for the privilege of showing up higher in a search.

“We will see this in AI,” he said. “AI will not necessarily provide you the best AI services for you as a consumer. The concern is, is that the AI will provide the best monetization of you as a consumer, that works in the best interest of the companies. And we’ve seen this over and over again.”

Even as AI becomes an increasingly important tool, McDaniels warned the “information asymmetry” between users and those controlling the technology could lead to manipulation of the public, including in ways that aren’t readily apparent.

“So this rejection of AI is the fear that the same kinds of services, or the misuse of those services, against the consumer’s best interest will play out in AI,” he said, adding “yes, it will be important for the next generation of users to know something about AI. But we have to be really careful about the hype.”

Watch the video.

— April home sales in Wisconsin grew at a “healthy” pace of 7.4% over the year after a slow start to 2026, the Wisconsin Realtors Association reports.

The group’s latest report, released today, shows the state had 5,573 home sales in April, up from 5,188 during the same month last year. That marks the second month in a row of strong sales for the state, driving year-to-date sales up by 4.1%, the report shows.

Meanwhile, prices continue to rise as home inventories remain limited. While new listings were 5.6% higher than in April 2025, the robust sales figure resulted in total listings rising by just 0.2%. Last month, total listings stood at 21,587, barely budging over the year.

WRA President and CEO Tom Larson says the “spike” in sales is straining the state’s already tight supply.

“With just 3.7 months of supply, we would need inventory to increase by nearly 62% to get to a balanced market with six months of supply,” he wrote in the report. “For potential sellers, this is an excellent time to list as we move into the all-important peak summer market.”

Going into this period, the state’s median home price rose 6.3% over the year to $340,000, up from $320,000 in April 2025.

Still, WRA Board Chair Amy Curler says the group is glad to see the sales momentum from March continue into April.

“Even with limited inventory, the consistency in activity reflects resilient buyer demand and continued strength in our existing home market,” she wrote.

Also in the report, WRA consultant and economist Dave Clark wrote the U.S. economy remains solid despite annual headline inflation jumping from 2.3% to 3.8% over the year due to the conflict in the Middle East.

“Recent jobs reports revealed stronger than expected job growth, and the initial estimate of inflation-adjusted GDP was up 2% in the first quarter,” he wrote. “The resilience of the economy combined with a predictable spike in inflation from higher oil prices will likely result in the Fed holding the line on interest rates for the foreseeable future.”

See the report.

— The DNR is continuing with stricter PFAS drinking water standards Gov. Tony Evers approved this year despite EPA plans to roll back federal standards, the agency told WisPolitics.

Under the proposed federal rules, EPA would rescind Biden-era drinking water limits for four PFAS substances, while allowing drinking water systems to apply for a delayed deadline to comply with PFOA and PFOS drinking water limits and move the compliance year back from 2029 to 2031.

The spokesperson said DNR would evaluate next steps “if or when the federal rule becomes final.”

The EPA in 2024 under President Joe Biden finalized limits for six types of PFAS, including a 4 parts per trillion limit for PFOA and PFOS. The agency announced plans to roll back the regulations after Trump began his second term.

Evers signed off this year on rulemaking to establish the Biden-era benchmarks in Wisconsin, including lowering the state’s threshold for PFOA and PFOS in drinking water from 70 to 4 ppt.

The final rule is expected to be published on June 29 and go into effect on July 1, according to DNR.

Some stakeholders, including Wisconsin Manufacturers & Commerce, urged DNR to pause the rulemaking process for the new limits considering expected federal changes. However, DNR argued the update was necessary for the state to maintain authority to implement requirements under the national Safe Drinking Water Act.

A spokesperson for WMC did not return a request for comment.

— Organizers for the Innovation to Commercialization Pipeline program will start taking applications next week for a second round of funding, supporting early-stage biotech companies in Wisconsin.

Forward BIOLABS and BioForward Wisconsin yesterday announced applications will open Tuesday and run through June 19. Awards range from $25,000 to $75,000, funding projects that help recipients hit a milestone and attract further investment.

The program aims to help emerging businesses surmount common challenges, supporting access to expertise, commercialization services and prepare to raise capital if needed.

It gets state funding as part of Forward BIOLABS’ project under the Wisconsin Biohealth Tech Hub initiative. Jessica Martin Eckerly, CEO and co-founder of Forward BIOLABS, notes the state’s biohealth industry contributes more than $37 billion to the state economy and supports at least 141,000 jobs.

“To keep that engine growing, we need to ensure that promising early-stage companies have the resources to move from innovation to commercialization,” she said in a statement.

See the release.

— The latest episode of WisBusiness’ “Talking Trade” podcast features insights on tariff uncertainty from a recent event, part two of a three-part video.

“Talking Trade” hosts Sandi Siegel and Ken Wasylik joined Carroll University professors Alexandra Sielaff and Lilly Goren April 22 at Carroll University to talk about the impact of President Donald Trump’s trade policies over the past year.

In part two, panelists discuss the “reshoring” effort to bring manufacturing back to U.S. soil, tariffs as a negotiating tactic, impacts on consumer behavior and more.

Watch the episode here.

See a WisBusiness story on the event here.

Wisconsin childcare funding was working. It ends this summer.

Work starting on one of Milwaukee area’s largest apartment projects

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