A recent push to diversify the types of investments included in employer-sponsored retirement plans is prompting some employers to consider whether to invest in new solutions for their workers.

The 401(k) is the most common type of retirement plan available to US workers today, and it typically includes a mix of stocks and bonds. One common way to allocate these investments is in a “60/40” portfolio, with 60% of investments made in public stocks and the other 40% going toward bonds.

But the strength of the 60/40 portfolio is being challenged today, with some financial experts arguing that retirement plan participants would see better returns from a more diversified portfolio that includes different types of assets—including alternative investments that are considered riskier, like private equity.

Though employers have typically steered away from incorporating private equity into their 401(k) plans over fears of being sued, a recent executive order from the Trump administration seeks to change that. As federal agencies prepare guidance on how plan sponsors can offer these investment options to their workers, employers can expect to be pitched on new solutions that incorporate both public and private assets.

For more on what HR should know about Trump’s 401(k) executive order, keep reading here.—CV

Employers in the European Union (EU) have a lot on the horizon when it comes to AI and DEI, thanks to new regulations both at home and across the Atlantic, according to the 2025 European Employer Survey Report from Littler.

New AI regulations. Certain provisions of the EU AI Act go into effect in August 2026, stipulating that employers in the region must use human oversight with AI. But many aren’t ready. One in five employers said they are “not at all” prepared to comply with the AI Act, unchanged from 2024, and 49% are at least “moderately prepared” for the changes, up from 44%. Regardless of readiness, 58% of employers expect AI-related regulatory changes next year.

The US effect. One in four of employers in the EU have reduced or canceled business travel to and operations in the US because of the Trump administration’s policy changes, the survey found. One in five employers have “paused or reduced” hiring in the US, and many pointed to the US immigration (32%) and DEI (36%) policy changes as the reason. But US policies aren’t just impacting how EU businesses operate in the US.

For more on how US policy is affecting European employers, keep reading here.—KP

Do you need a two- or four-year degree to land a job working with AI?

According to Jeffrey Bardzell, the vice provost of AI and chief AI officer at UNC-Chapel Hill, an individual who trains for an AI-related position instead of pursuing higher education is like someone who takes a 12-week course to play piano.

“You’re not going to play piano as well as somebody who…went through a conservatory and studied the theory and studied the history and learned the movements and spent time with other actual musicians,” Bardzell said. “That can’t be replaced. And where that plays out is the difference between landing your first job and thriving in a profession and rising to become a leader of that profession over time.”

For more on the case for upskilling vs. pursuing higher education, keep reading on IT Brew.—CN