Innovation doesn’t need a faster engine

The doomsayers of AI are having their moment. They correctly point out that the rapid progress of large language models has slowed. Context windows remain limited, hallucinations persist, and bigger models no longer guarantee smarter ones. From this, they conclude that the age of AI breakthroughs is ending.

They are mistaking the engine for the journey.

History offers many parallels. When the internal combustion engine stopped getting dramatically better, innovation didn’t stop. That was when it really started. The real transformation came from everything built around it: road networks, trucking logistics, suburbs, the global supply chain. Likewise, the shipping container changed the world not through further improvements, but because it became the standard that reshaped ports, labor systems, and trade. When the core technology stabilizes, people finally start reimagining what to do with it.

This is the point we’ve reached with AI. The models are powerful, but most of their potential remains untouched. Businesses are still treating AI as a novelty, something to sprinkle on top of existing processes. Education systems, government workflows, healthcare administration; these are built as if nothing new has happened. We haven’t even begun to redesign for a world where everyone has a competent digital assistant.

The real question is not whether an AI can pass a medical exam. It’s how we organize diagnosis and care when every doctor has instant access to thousands of case studies. It’s not about whether an AI can draft an email. It’s about how office communication changes when routine writing takes seconds. The innovation now lies in application, not invention.

Limits are not the enemy. In fact, recognizing limits often helps creativity flourish. When designers accept that screen size on phones is fixed, they find smarter interfaces. We become inventive when the boundaries are clear. The same will happen with AI once we stop waiting for miracle upgrades and start asking better questions.

The real bottleneck is attention. Investment still flows heavily into training larger and larger models, chasing diminishing returns. Meanwhile, the tools that would actually change how people work or learn get far less support. It’s as if we are building faster trains while neglecting the tracks, stations, and maps.

There is a similar problem in education, where energy goes into protecting the structure of institutions while ignoring how learning could be improved. Just because we can do something well does not mean it is worth doing. And just because AI researchers can build a bigger model does not mean they should.

The most meaningful innovation is ready to happen. It is no longer about raw power, but about redesign. Once we shift our focus from models to uses, the next revolution begins.

The Start-up Advantage and the Plain Bot Paradox

In the gold rush to AI, start-ups seem, at first glance, to have the upper hand. They are unburdened by legacy infrastructure, free from the gravitational pull of yesterday’s systems, and unshackled by customer expectations formed in a pre-AI era. They can begin with a blank canvas and sketch directly in silicon, building products that assume AI not as an add-on, but as the core substrate. These AI-native approaches are unencumbered by the need to retrofit or translate—start-ups speak the native dialect of today’s machine learning systems, while incumbents struggle with costly accents.

In contrast, larger, established companies suffer from what could be called "retrofitting fatigue." Their products, honed over decades, rest on architectures that predate the transformer model. Introducing AI into such ecosystems isn’t like adding a module; it’s more akin to attempting a heart transplant on a marathon runner mid-race. Not only must the product work post-op, it must continue to serve a massive, often demanding, user base—an asset that is both their moat and their constraint.

Yet even as start-ups celebrate their greenfield momentum, they stumble into what we might call the plain bot paradox. No matter how clever the product, if the end-user can get equivalent value from a general-purpose AI like ChatGPT, what exactly is the start-up offering? The open secret in AI product development is this: it is easier than ever to build a “custom” bot that mimics almost any vertical-specific product. The problem is not technical feasibility. It’s differentiation.

A travel-planning bot? A productivity coach? A recruiter-screening assistant? All of these are delightful until a user realizes they can recreate something just as functional using a combination of ChatGPT and a few well-worded prompts. Or worse, that OpenAI or Anthropic might quietly roll out a built-in feature next week that wipes out an entire startup category—just as the “Learn with ChatGPT” feature recently did to a slew of bespoke AI tutoring tools. This isn’t disruption. It’s preemption.

The real kicker is that start-ups not only compete with each other but also with the very platforms they’re building on. This is like opening a coffee stand on a street where Starbucks has a legal right to install a kiosk next to you at any moment—and they already own the espresso machine.

So if start-ups risk commodification and incumbents risk inertia, is anyone safe? Some large companies attempt a third route: the internal start-up. Known in management lore as a “skunk works” team—originally a term coined at Lockheed to describe a renegade engineering group—these are designed to operate with the nimbleness of a start-up but the resources of a conglomerate. But even these in-house rebels face the plain bot paradox. They too must justify why their innovation can’t be replicated by a general AI and a plug-in. A sandboxed innovation team is still building castles on the same sand.

Which brings us to a more realistic and arguably wiser path forward for incumbents: don’t chase AI gimmicks, and certainly don’t just layer AI onto old products and call it transformation. (Microsoft, bless its heart, seems to be taking this route—slathering Copilot across its suite like a condiment, hoping it will make stale workflows taste fresh again.) Instead, the challenge is to imagine and invest in products that are both fundamentally new and fundamentally anchored in the company’s core assets—distribution, brand trust, proprietary data, deep domain expertise—things no plain bot can copy overnight.

For example, a bank doesn’t need to build yet another AI budgeting assistant. It needs to ask what role it can play in a world where money advice is free and instant. Perhaps the future product isn’t a dashboard, but a financial operating system deeply integrated with the bank’s own infrastructure—automated, secure, regulated, and impossible for a start-up to replicate without decades of licensing and customer trust.

In other words, companies must bet not on AI as a bolt-on feature, but on rethinking the problems they’re uniquely positioned to solve in an AI-saturated world. This might mean fewer moonshots and more thoughtful recalibrations. It might mean killing legacy products before customers are ready, or inventing new categories that make sense only if AI is taken for granted.

The trick, perhaps, is to act like a start-up but think like an incumbent. And for start-ups? To act like an incumbent long before they become one. Because in a world of rapidly generalizing intelligence, the question is not what can be built, but what can endure.

Why Agentic AI Is Not What They Say It Is

There is a lot of hype around agentic AI, systems that can take a general instruction, break it into steps, and carry it through without help. The appeal is obvious: less micromanagement, more automation. But in practice, it rarely delivers.

These systems operate unsupervised. If they make a small mistake early on, they carry it forward, step by step, without noticing. By the time the result surfaces, the damage is already baked in. It looks finished but is not useful.

Humans handle complexity differently. We correct course as we go. We spot inconsistencies, hesitate when something feels off, we correct. That instinctive supervision that is often invisible, is where most of the value lies. Not in brute output, but in the few moves that shape it. 

The irony is that the more reliable and repeatable a task is, the less sense it makes to use AI. Traditional programming is better suited to predictable workflows. It is deterministic, transparent, and does not hallucinate. So if the steps are that well defined, why introduce a probabilistic system at all?

Where AI shines is in its flexibility, its ability to assist in murky, open-ended problems. But those are exactly the problems where full AI autonomy breaks down. The messier the task, the more essential human supervision becomes.

There is also cost. Agentic AI often burns through vast compute resources chasing the slightly misunderstood task. And once it is done, a human still has to step in and rerun it? burning through even more resources.

Yes, AI makes humans vastly more productive. But the idea that AI agents will soon replace humans overseeing AI feels wrong. At least I have not seen anything even remotely capable of doing so. Human supervision is not a weakness to be engineered away. It is where the human-machine blended intelligence actually happens.

The Startup That Masters AI Memory Will Own the Future

Last week, I wrote about how AI tutors often forget not just details—but the learner entirely. That is not a minor design flaw. It points to a deep, structural limitation in how AI handles memory. Current systems do not know how to forget, and they certainly do not know what to forget. Any startup that solves this—really solves it—will not just improve tutoring bots or assistants. It will change the entire trajectory of human–AI interaction.

Human memory is not just bigger or faster. It is smarter. It is shaped by two capabilities AI still lacks: sleep-like reorganization and emotional tagging. These are not metaphors. They are core operating functions. Without them, AI systems cannot manage their memories in any meaningful way. They forget the important things and cling to the trivial. They remain information-rich and understanding-poor.

Consider sleep. We tend to think of it as rest, but it is actually an intense phase of cognitive activity. During sleep, the brain sorts through the day’s experiences. Some are stored. Some are deleted. Others are reconnected to older memories in new ways. This is not storage—it is triage. The brain updates its understanding of the world while we are unconscious.

AI does not do this. Its memories accumulate, but they are not structured. They are not weighted. Nothing in the current architecture mimics the brain’s nightly editorial session. A student can work with an AI tutor for weeks, but the system will never reflect on what kind of learner that student is becoming. It just stores input and generates output. No hierarchy, no synthesis.

That is the first gap. The second is tagging. Humans do not remember everything. We remember what matters—and we know it matters because we felt it. Emotion tags certain events for long-term storage. A moment of clarity. A conflict. A breakthrough. These are prioritized, reinforced, and recalled. The brain flags them as significant, even if they occurred only once. This is why you all remember where you were during a traumatic even like 9/11. This is why you will never forget a frightening encounter with a bear. 

AI has nothing equivalent. No built-in way to distinguish a routine command from a life-changing statement. Contextual memory today is driven by frequency, recency, or static rules. It does not learn which moments are defining. It does not develop a memory architecture that mirrors relationship or growth. This limitation is visible everywhere—from tutoring systems that ignore learning epiphanies to companion bots that speak blandly even after years of interaction.

Without emotional tagging, AI cannot assign importance. Without sleep-like reordering, it cannot develop perspective. These two ingredients are what allow human memory to be dynamic, useful, and personally meaningful.

So far, no commercial system has implemented either in a compelling way. There is academic work on memory pruning, neural replay, and adaptive attention. But no product has captured the integration of emotional salience and long-term memory structuring. Not OpenAI, not Google, not the hundreds of startups competing to build the next generation of personal AI.

That leaves a massive opening. A startup that figures out how to replicate these two functions—even in a narrow domain like education or productivity—could leapfrog every existing system. Imagine a tutoring bot that does not just track your errors, but reorganizes its memory of your progress nightly. Imagine a personal assistant that remembers not just what you said, but what mattered to you. Imagine a relationship simulator that actually grows with you over time because it forgets the noise and preserves the signal.

We are not talking about incremental UX improvements. This would redefine what memory means in artificial systems. It would be the difference between an assistant and a partner, between a chatbot and something closer to a mind. 

Human memory is not perfect, but it is efficient. It is not just recall—it is strategy. That is what makes it powerful. And that is the standard any serious AI system must eventually meet.

Whoever builds that first—really builds it—will not just fix AI memory. They will redefine the relationship between humans and machines. Any takers out there?

Deep Research is still more of a promise

The promise of deep research by AI tools like ChatGPT is simple: feed in a question, receive a nuanced, well-reasoned answer, complete with references and synthesis. And in some domains, it delivers admirably. When it comes to media trends, tech news, or cultural analysis, the tool works best. It sifts through the torrent of online commentary, news articles, blog posts, and social chatter to surface patterns and narratives. The real value here lies not just in the volume of data it processes, but in how the user frames the question. A clever, counterintuitive prompt can elicit insights that feel like genuine thought.

But the illusion shatters when the query turns academic. For scholarly literature reviews, this tool falters. It is not the fault of the software itself—there is no shortage of computational power or linguistic finesse. The limitation is upstream. Most academic journals sit behind expensive paywalls, historically inaccessible to large language models. The corpus they are trained on has lacked precisely the kind of data that matters most for rigorous research: peer-reviewed studies, meta-analyses, theoretical frameworks built over decades.

This, however, is beginning to change. In May 2024, Microsoft signed a $10 million deal with Taylor & Francis to license journal content for its Copilot AI. OpenAI, for its part, has secured a two-year agreement with The Associated Press and forged partnerships with European publishers like Axel Springer, Le Monde, and Prisa Media—giving ChatGPT a better grasp of reputable journalistic and scholarly content. Wiley joined the fray with a $23 million licensing deal to grant an unnamed AI developer access to its academic publishing portfolio. Even Elsevier, long a fortress of paywalled knowledge, is now channeling its scholarly data into AI collaborations.

These are significant moves. They mark a transition from aspiration to access. Once these agreements begin to reflect in AI performance, the quality of output will change markedly. A tool that can both identify the pivotal paper and incorporate it meaningfully into its reasoning would be a true research assistant—something closer to intellectual augmentation than just computational summarization.

It is still early days. Scite, for now, remains stronger at pointing users to the right academic sources, even if its analytical output lacks flair. ChatGPT and its peers, in contrast, excel at synthesis but stumble when the raw material is lacking. The ideal tool is still on the horizon.

There is an irony, nevertheless. AI, the most advanced information-processing technology ever built, has been running on the least rigorous parts of the internet. It has quoted tweets with ease but struggled to cite the peer-reviewed studies that ought to anchor serious inquiry. That is no longer a permanent condition. It is, increasingly, a transitional one.

The future of AI in research will be determined not solely by engineering breakthroughs, but by access negotiations. With major publishers now at the table, the landscape is poised for a shift. For the user, the best strategy remains what it has always been: ask sharp questions. But soon, the machine’s answers may finally rest on deeper knowledge.

The Invasive Innovation, a Case of AI in Education

Disruptive innovations, as defined by Clayton Christensen, typically emerge at the margins before gradually overtaking established players. In contrast, artificial intelligence in education is not a slow-moving force of competitive displacement. It is an invasive innovation—spreading far beyond the predictions of Everett Rogers’ diffusion model, propelled not as much by institutions as by students themselves. This is not a technology waiting to be adopted. It is a reality forcing adaptation. Treating it as an optional innovation mises the point entirely. 

Educational leaders, policymakers, and institutions may wish to evaluate AI’s impact, consider best practices, and implement careful frameworks. But they are not in control of the timeline. The adoption is not up for debate. It is already happening, driven by students who see AI not as a tool of the future but as an everyday utility, as natural as search engines or calculators. The question is not when to integrate AI into education, but how to manage an environment where AI is already integrated—often in ways institutions neither designed nor anticipated.

This is why traditional approaches to educational innovations are inadequate. Normally, innovations are assessed, piloted, and then scaled. But AI in education is unfolding more like a crisis than an initiative. It requires a response more akin to a public health emergency than a strategic rollout. When COVID-19 disrupted education, schools did not spend years analyzing whether remote learning was effective. They pivoted overnight, creating imperfect but necessary solutions. AI invasion demands a similar level of urgency.

Institutional response to invasive AI must be comprehensive rather than defensive. How do we accommodate this invasive innovation? Putting AI tools directly in the hands of faculty represents a critical first step, ensuring they engage with the same technologies their students already access freely. This must be paired with robust professional development—not merely technical training but genuine pedagogical exploration that helps educators reimagine their disciplinary approaches in an AI-augmented world.

Beyond tools and training, institutions must invest in creating dedicated time and space for disciplinary teams to collaboratively revise their assignments. The goal is not to create "cheat-proof" assessments but to develop authentic tasks that meaningfully incorporate AI as a partner in learning. This demands protected time away from everyday teaching pressures, where faculty can experiment, fail, refine, and document new approaches that acknowledge AI as a permanent fixture in their educational landscape rather than an external threat to be neutralized.

The AI Recruiter Will See You Now

The tidy world of job applications, carefully curated CVs and anxious cover letters may soon become a relic. Every professional now leaves digital traces across the internet - their work, opinions, and achievements create detailed patterns of their capabilities. Artificial Intelligence agents will soon navigate these digital landscapes, transforming how organizations find talent.

Unlike current recruitment tools that passively wait for queries, these AI agents will actively explore the internet, following leads and making connections. They will analyze not just LinkedIn profiles, but candidates' entire digital footprint. The approach promises to solve a persistent problem in recruitment: finding qualified people who are not actively job-hunting.

The matching process will extend beyond technical qualifications. Digital footprints reveal working styles and professional values. A cybersecurity position might require someone who demonstrates consistent risk awareness; an innovation officer role might suit someone comfortable with uncertainty. AI agents could assess such traits by analyzing candidates' professional communications and public activities.

Yet this technological advance brings fresh concerns. Privacy considerations demand attention - while AI agents would analyze public information, organizations must establish clear ethical guidelines about data usage. More fundamentally, AI agents must remain sophisticated talent scouts rather than final decision makers. They can gather evidence and make recommendations, but human recruiters must evaluate suggestions within their understanding of organizational needs.

The transformation suggests a future where talent discovery becomes more equitable. AI agents could help overcome human biases by focusing on demonstrated capabilities rather than credentials or connections. The winners will be organizations that master this partnership between artificial intelligence and human judgment. The losers may be traditional recruitment agencies - unless they swiftly adapt to the new reality.

AI and Labor: A Smarter Path Forward

Trade unions face a defining moment. Artificial intelligence presents genuine concerns about job displacement, yet the response need not mirror historical patterns of resistance to technological change. The Luddite movement of the 1810s serves as a cautionary tale - their destruction of mechanized looms neither preserved jobs nor improved workers' conditions. All technology affects labor; that it what technology is, work assistance. 

The automation paradox offers a more nuanced perspective. While machines replace specific tasks, they generate new forms of work. The introduction of automated teller machines in banking led to more bank branches and tellers performing complex customer service roles. This pattern repeats across industries - automation reduces costs, expands services, and creates different job categories.

Labor leaders would serve their members better by negotiating robust transition arrangements. Key demands should include employer-funded retraining programs, preferential access to new positions, and compensation packages that recognize acquired skills. The focus must shift from preventing change to shaping its implementation.

The pace of AI integration varies significantly by sector. Manufacturing and data processing may see rapid adoption, but industries built on human relationships - education, healthcare, social work - will incorporate AI gradually as assistive technology. Complex organizations require extensive testing and workflow redesign before meaningful automation becomes feasible.

Economic history demonstrates that reduced production costs expand economic activity. When basic tasks become automated, human attention shifts to more sophisticated problems. The telephone eliminated telegraph operators but created vast new communication industries. Similarly, AI will likely automate routine cognitive work while opening possibilities in areas we have not yet imagined.

Unions retain significant leverage during this transition. Organizations need experienced workers to implement new technologies effectively. This position allows labor to negotiate favorable terms - extended notice periods, substantial retraining budgets, wage protection during transition, and clear paths to higher-skilled roles.

The key lies in recognizing AI as a tool for augmentation rather than pure replacement. A machine learning system may process medical images faster than radiologists, but interpreting results in complex cases still requires human judgment. Similar patterns will emerge across professions - AI handling routine tasks while humans focus on nuanced decision-making and interpersonal elements.

Rather than resist change, unions should position themselves as partners in managing transition. This approach preserves their relevance and better serves member interests. The alternative - attempting to prevent AI adoption - risks marginalization as companies seek ways around opposition or relocate to more amenable jurisdictions.

The challenge for labor leadership is to shift from defensive postures to proactive engagement. This means developing expertise in emerging technologies, identifying opportunities for worker advancement, and ensuring transition arrangements protect vulnerable members while facilitating adaptation to changing workplace demands.

The Subtle Art of Monopolizing New Technology

Monopolizing new technology is rarely the result of some grand, sinister plan. More often, it quietly emerges from self-interest. People do not set out to dominate a market; they simply recognize an opportunity to position themselves between groundbreaking technology and everyday users. The most effective tactic? Convince people that the technology is far too complex or risky to handle on their own.

It starts subtly. As soon as a new tool gains attention, industry insiders begin highlighting its technical challenges—security risks, integration headaches, operational difficulties. Some of these concerns may be valid, but they also serve a convenient purpose: You need us to make this work for you.

Startups are particularly skilled at this. Many offer what are essentially "skins"—polished interfaces built on top of more complex systems like AI models. Occasionally, these tools improve workflows. More often, they simply act as unnecessary middlemen, offering little more than a sleek dashboard while quietly extracting value. By positioning their products as essential, these startups slide themselves between the technology and the user, profiting from the role they have created. 

Technical language only deepens this divide. Buzzwords like API, tokenization, and retrieval-augmented generation (RAG) are tossed around casually. The average user may not understand these terms. The result is predictable: the more confusing the language, the more necessary the “expert.” This kind of jargon-laden gatekeeping turns complexity into a very comfortable business model.

Large organizations play this game just as well. Within corporate structures, IT departments often lean into the story of complexity to justify larger budgets and expanded teams. Every new tool must be assessed for “security vulnerabilities,” “legacy system compatibility,” and “sustainability challenges.” These concerns are not fabricated, but they are often exaggerated—conveniently making the IT department look indispensable.

None of this is to say that all intermediaries are acting in bad faith. New technology can, at times, require expert guidance. But the line between providing help and fostering dependence is razor-thin. One must ask: are these gatekeepers empowering users, or simply reinforcing their own relevance?

History offers no shortage of examples. In the early days of personal computing, jargon like RAM, BIOS, and DOS made computers feel inaccessible. It was not until companies like Apple focused on simplicity that the average person felt confident using technology unaided. And yet, here we are again—with artificial intelligence, blockchain, and other innovations—watching the same pattern unfold.

Ironically, the true allies of the everyday user are not the flashy startups or corporate tech teams, but the very tech giants so often criticized. Sometimes that criticism is justified, other times it is little more than fashionable outrage. Yet these giants, locked in fierce competition for dominance, have every incentive to simplify access. Their business depends on millions of users engaging directly with their products, not through layers of consultants and third-party tools. The more accessible their technology, the more users they attract. These are the unlikely allies of a non-techy person. 

For users, the best strategy is simple: do not be intimidated by the flood of technical jargon or the endless parade of “essential” tools. Always ask: Who benefits from me feeling overwhelmed? Whenever possible, go straight to the source—OpenAI, Anthropic, Google. If you truly cannot figure something out, seek help when you need it, not when it is aggressively sold to you.

Technology should empower, not confuse. The real challenge is knowing when complexity is genuine and when it is merely someone else’s business model.

Navigating the AI Gold Rush: Skins, Security, and the Real Value Proposition

 The economic battle surrounding artificial intelligence is intensifying at an unprecedented pace. Major AI players like OpenAI, Google, Meta, and Anthropic are leading this technological revolution. Tech giants such as Microsoft, Amazon, and Apple, along with thousands of startups, are vying for a stake in this burgeoning market without being able to develop their own competitive models. Amidst this frenzy, a critical question arises: what exactly is being sold?

Two primary value propositions have emerged in this landscape: skins and security mongers. Skins are interfaces or applications that overlay major AI models, aiming to simplify user interaction. They cater to individuals lacking advanced prompting skills, offering a more user-friendly experience. Security mongers, on the other hand, emphasize heightened privacy and security, often exaggerating potential risks to entice users.

While both propositions seem valuable on the surface, a deeper examination reveals significant shortcomings. Skins promise to streamline interactions with AI models by providing preset prompts or simplified interfaces. For instance, a startup might offer a chatbot specialized in drafting business emails, claiming it saves users the hassle of formulating prompts themselves. However, is this convenience truly worth it?

Major AI models are increasingly user-friendly. ChatGPT, for example, has an intuitive interface that caters to both novices and experts. Users often find they can achieve the same or better results without intermediary platforms. Additionally, skins often come with subscription fees or hidden costs, meaning users are essentially paying extra for a service the primary AI model already provides. There is also the issue of limited functionality; skins may restrict access to the full capabilities of the AI model, offering a narrow set of functions that might not meet all user needs.

The second proposition taps into growing concerns over data privacy and security. Vendors claim to offer AI solutions with superior security measures, assuring users their data is safer compared to using mainstream models directly. But does this claim hold up under scrutiny?

Most of these intermediaries still rely on API connections to major AI models like ChatGPT. Your data passes through their servers before reaching the AI model, effectively adding another point of vulnerability. Introducing additional servers and transactions inherently increases the risk of data breaches. More touchpoints mean more opportunities for data to be intercepted or mishandled. Furthermore, major AI providers invest heavily in security and compliance, adhering to stringent international standards. Smaller vendors may lack the resources to match these safeguards.

For example, a startup might advertise an AI-powered financial advisor with enhanced security features. However, if they are routing data through their servers to access a model like GPT-4, your sensitive financial data is exposed to additional risk without any tangible security benefit. The promise of enhanced security becomes questionable when the underlying infrastructure depends on the same major models.

AI platforms have not introduced new risks to privacy or security beyond what exists with other online services like banks or credit bureaus. They employ advanced encryption and security protocols to protect user data. While no system is infallible, major AI models are on par with, if not superior to, other industries in terms of security measures. They use end-to-end encryption to protect data in transit and at rest, implement strict authentication measures to prevent unauthorized access, and conduct regular security assessments to identify and mitigate vulnerabilities. It is easy to opt out of providing your data to train new models. It is much more difficult to know what your vendors are going to do with your data.

In a market flooded with AI offerings, it is crucial to approach vendors' claims with a healthy dose of skepticism. Validate the functionality by testing whether the convenience offered by skins genuinely enhances your experience or merely repackages what is already available. Assess the security measures by inquiring about the specific protocols in place and how they differ from those used by major AI providers. Transparency is key; reputable vendors should be open about how your data is used, stored, and protected.

As the AI gold rush continues, distinguishing between genuine innovation and superficial value propositions becomes essential. Skins and security mongers may offer appealing pitches, but often they add little to no value while potentially increasing costs and risks. It is wise to try using major AI models directly before opting for third-party solutions. Research the backgrounds of vendors to determine their credibility and reliability. Seek reviews and testimonials from other users to gauge the actual benefits and drawbacks.

In the end, the most powerful tool at your disposal is due diligence. By critically evaluating what is being sold, you can make informed decisions that truly benefit you in the rapidly evolving world of AI. Beware of vendors selling either convenience or security without substantial evidence of their value. At the very least, take the time to validate their claims before making an investment.

 

The Stealth AI Adoption

In modern workplaces, a quiet trend is taking hold: employees are secretly adopting artificial intelligence tools to enhance their work. Whether it is writing, designing, coding, or creating content, many are leveraging AI without informing their bosses. This “stealth AI adoption” is likely more widespread than managers realize.

Consider Alex, a software developer at a bustling tech firm. To streamline his coding process, Alex uses an AI assistant that can generate snippets of code in seconds. This tool not only saves him hours each week but also allows him to tackle more complex projects. However, Alex keeps this AI helper under wraps. Why? He has two choices: use the extra time for personal activities or take on additional work to appear more productive than his peers. There is no actual incentive to admit the use of AI. In some shops, cybersecurity people will come after you, if you confess. 

This hidden use of AI offers clear benefits for employees. Saving a few hours each week is tempting, whether for personal pursuits or to discreetly boost one’s workload. As a result, many organizations might be underestimating how extensively AI is being integrated into daily tasks.

Productivity can be measured in two ways: doing the same work with fewer people or doing more with the same number. The latter is a healthier, more sustainable approach. To achieve true success, organizations should aim to do more with their existing workforce rather than cutting staff. However, the stealth adoption of AI complicates this goal.

When employees use AI tools without disclosure, organizations miss out on opportunities to harness these technologies strategically. Without knowing how AI is being utilized, companies can not provide proper training or integrate AI into their workflows effectively. This fragmented approach can lead to missed efficiency gains and a lack of cohesive progress.

To foster a productive and innovative environment, companies need to build trust with their employees. Here is how:

1. Reassure Employees: Let your team know that adopting AI will not lead to layoffs. Emphasize that AI is a tool to help them do their jobs better, not a replacement for their roles. In unionized environments, a conversation with labor leaders would be wise. 

2. Create Incentives for Disclosure: Encourage employees to share the AI tools they are using by offering rewards or recognition. This transparency can help management understand how AI is being integrated and identify best practices.

3. Do More with the Same People: Focus on expanding the scope of work and fostering innovation rather than cutting positions. This approach not only boosts morale but also drives the organization forward.

By building trust and creating a supportive environment, organizations can turn stealth AI adoption into a strategic advantage. Employees will feel comfortable sharing their AI discoveries, allowing organizations to implement these tools effectively and sustainably.

As we move further into the AI-driven era, organizations must address this hidden trend. Encouraging transparency about AI tools and developing clear strategies for their use can ensure that productivity gains are real and sustainable. Until then, the silent spread of AI will keep reshaping workplaces, one undisclosed tool at a time. 

Why Newsom should veto SB 1047

The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB 1047) might appear as a forward-thinking approach to regulating AI, but it overlooks a crucial reality: we lack the infrastructure to implement its provisions effectively. While some companies will inevitably claim they can audit AI systems and evaluate safety protocols, their motivations will often be driven by profit rather than genuine expertise.

Moreover, the burdens imposed by this bill will disproportionately affect smaller developers, particularly those on college campuses or within startups, who simply cannot afford the additional costs. This will stifle innovation, further entrenching the dominance of large tech companies and discouraging new entrants from participating in the AI landscape.

Before implementing such heavy-handed regulations, California must first focus on developing clear standards and building the capacity to enforce them. Without this groundwork, the bill will do more harm than good, leading to increased monopolization and a chilling effect on the very innovation it seeks to protect. The Governor should veto this bill and advocate for a more measured, phased approach that prioritizes the development of standards and capacity before regulation.

Filling Voids, Not Replacing Human Experts

The debate over artificial intelligence replacing human experts often centers on a binary question: Can AI do a better job than a human? This framing is understandable but overly simplistic. The reality is that in many contexts, the competition is not between AI and people—it is between AI and nothing at all. When viewed through this lens, the value of AI becomes clearer. It is not about pitting machines against human expertise; it is about addressing the voids left by a lack of available service.

Consider healthcare, particularly in underserved areas. It is a truism that a qualified doctor’s advice is better than anything an AI could provide. But what if you live in a rural village where the nearest doctor is hundreds of miles away? Or in a developing country where medical professionals are stretched thin? Suddenly, the prospect of AI-driven medical advice does not seem like a compromise; it feels like a lifeline. While AI lacks the nuanced judgment of an experienced physician, it can provide basic diagnostics, suggest treatments, or alert patients to symptoms that warrant urgent attention. In such scenarios, AI does not replace a doctor—it replaces the silence of inaccessibility with something, however imperfect.

Another case in point is mental health counseling. In many parts of the world, even in affluent countries, mental health services are woefully inadequate. Students at universities often face wait times ranging from weeks to months just to speak with a counselor. During that limbo, the option to interact with an AI, even one with obvious limitations, can be a critical stopgap. It is not about AI outperforming a trained therapist but offering a form of support when no other is available. It can provide coping strategies, lend a sympathetic ear, or guide someone to emergency services. Here, AI does not replace therapy; it provides something valuable in the absence of timely human support.

Education offers another case for AI’s gap-filling potential. Tutoring is an essential resource, but access to quality tutors is often limited, mainly because it is expensive. Universities might offer tutoring services, but they are frequently understaffed or employ peer tutors. Office hours with professors or teaching assistants can be similarly constrained. AI can step into this void. Chatting with an AI about a difficult concept or problem set might not equal the depth of understanding gained from a one-on-one session with a human tutor, but it is unquestionably better than struggling alone. AI does not compete with tutors; it extends their reach into spaces they cannot physically or temporally cover.

The same logic applies to a range of other fields. Legal advice, financial planning, career coaching—all are areas where AI has the potential to add significant value, not by outstripping human expertise but by offering something in environments where professional advice is out of reach. Imagine a low-income individual navigating legal complexities without the means to hire an attorney. An AI could provide at least basic guidance, clarify legal jargon, and suggest possible actions. All of it must be done with proper disclaimers. It is not a substitute for legal representation, but it is a world better than the alternative: no help at all.

In embracing this non-competing stance, we shift the narrative. The role of AI is not to replace human experts but to step in where human services are scarce or nonexistent. The true potential of AI lies in its ability to democratize access to essential services that many people currently go without. When AI is viewed as a bridge rather than a rival, its utility becomes much more evident. AI does not have to be better than a person to be valuable; it just should be better than the void it fills.

Meet Jinni, a Universal Assistant Bot

In a busy campus with 30,000 students, hundreds of faculty, and staff, managing everyday tasks and emergencies can be tricky. Imagine a universal bot, named Jinni, designed to assist everyone regardless of what they want and need to happen. Here’s a glimpse into how this could transform daily life on campus.

Take Dr. Nguyen, for instance. A junior professor with a packed schedule, she was just invited to present at a conference in Milan but wasn't sure how to get funding. She turned to Jinni.
"Good afternoon, Professor Nguyen. What do you need today?" Jinni asked.
"I want to attend a conference in Milan. Can I get support?" she inquired.

Jinni quickly scanned the institutional website and the financial data wharehouse and responded, "In your College, it takes a request from your Associate Dean. There is still some travel budget left, but you need to hurry. However, if it’s not a peer-reviewed conference and you’re not presenting, I wouldn't bother—the College's policy does not allow for this."

It added, "If you’d rather tell me the details about the conference and upload the invitation letter, I can file the request for you. Or, you can follow the link and do it yourself."

Professor Nguyen appreciated the options and the clarity, and chose to upload her details, letting Jinni handle the rest. Within a minute, Jinni said "Done, you shuold hear from the dean's office within a week. I alrready checked your eligibility, and recommended the Associate Dean to approve."

Then there was Mr. Thompson, a new staff member who discovered a puddle in the lobby after a rainy night. He pulled out his phone and described the situation to Jinni.

"You need to file an urgent facilities request. Here’s the link. Would you like me to file one for you? If yes, take a picture of the puddle," Jinni offered. "But if it’s really bad, you may want to call them. Do you want me to dial?"

Mr. Thompson opted for the latter, and within moments, Jinni had connected him to the facilities team.

Finally, there was Jose, a student who had missed the course drop deadline because of a bad flu. Anxious and unsure what to do, he asked Jinni for help. 

"Sorry to hear you’ve been sick. Jose. Yes, there is a petition you can file with the Registrar," Jinni replied. "I can do it for you, but I need a few more details. Do you have a note from your doctor? If not, you should get it first, then take a picture of it for me. If you used the Campus Health Center, I can contact them for you to request documentation. I will then write and submit the petition on your behalf. I will also need a few details - which class, the instructore's name, when you got sick, etc." Jose was relieved to find a straightforward solution to his problem and began to answer Jinni's questions one by one. 

The technology to create a universal agent bot like Jinni is not yet on the open market, but all elements do already exist as prototypes. More advanced customizable AI models, trained on extensive and diverse datasets, are essential to handle such tasks. More active, agentic AI also does exist. It can file and submit forms, not just find them. But even if we could to simply find and interpret policy and procedures, and point users to the right forms, it would alredy be a huge step forward. 

Simplifying and streamlining hundreds of procedures that any complex organization develops is definitely possible, but we know few examples of successful transformations like that. The next best thing is to use AI to help people navigate those procedures. This will lower barriers for all and reduce transactional costs. 

AI is not going to implement itself, but governments can help

The AI hype has passed, and the overexcited futurists' voices are mercifully fading away. We're now entering a practical era where AI is leveraged to boost productivity in businesses, non-profit, and public organizations. This shift brings a sobering realization: AI integration requires a meticulous, pragmatic approach to build reliable and trustworthy systems. It's a lot of work and requires some strategy.

When a single person manages a well-defined workflow, integrating AI is relatively straightforward. It's easy to incorporate AI tools like ChatGPT or Claude to assist with ad copy, reports, or applications. The beauty of these scenarios lies in their simplicity - the user acts as both operator and quality controller, immediately judging the output's effectiveness.

However, the story changes dramatically when we shift to multi-user workflows or more complex processes, where both inputs and outputs are more of a collective responsibility. I recently spoke with an Accounts Payable team who posed a challenging question: "Yes, we can see that AI can help review travel claims, but can you guarantee it's going to be 100% accurate?" I couldn't provide that guarantee; I don't have time to conduct a hundred tests, and I don't even have access to a hundred travel reports. They emphasized their need for completely audit-proof outcomes. This conversation highlighted the trust issues that arise when moving from AI enthusiasts to skeptics in larger organizations. And organizations should have a healthy group of skeptics to remain viable.

I've also recently been a fly on the wall during discussions between healthcare executives and a U.S. lawmaker. The executives explained that each AI-assisted medical procedure needs validation, which is expensive and often duplicated across multiple hospital systems. This challenge extends beyond healthcare. For instance, when using AI to crunch data in all organizations, we need to understand its reliability in analyzing large datasets, cleaning them, and handling outliers.

The problem is that no private institution can conduct the kind of comprehensive testing and validation needed to establish trust in AI systems across various industries. We cannot seriously trust claims of startups who are trying to sell a specialized product to an industry or a government organization. It's not clear how a hypothetical validation private service would monetize such an endeavor.

This is where I believe government involvement becomes crucial. Instead of obsessing with deep fakes and ethics, that's what governments should be doing. Governments can collaborate with industry experts to develop standardized benchmarks for AI reliability and performance. They could establish certification programs that act as quality marks, assuring users that AI systems have undergone rigorous testing. Moreover, government funding could support businesses, NGOs, and government agencies in conducting extensive AI testing, especially benefiting smaller organizations lacking the necessary resources.

In my view, public-private partnerships are key to navigating these challenges. By leveraging expertise from both sectors, we can develop robust testing frameworks and create dependable AI systems. This approach would pave the way for more efficient and innovative workflows across industries, ensuring that the benefits of AI are realized while maintaining trust and reliability. 

Public Money, Private Glory?

At tech events, where AI CEOs bask in the adoration, there's a conspicuous absence in the narrative: the role of public funding and research. These sectors haven't just sprung up through the ingenuity and perseverance of a few brilliant minds; they're the culmination of substantial public investment. Yet, you'd be hard-pressed to hear a word of thanks to taxpayers or governments at these glittering presentations.

The problem with this omission is twofold. Firstly, it promotes a misleading story of technological development—one where breakthroughs seem to happen through sheer brilliance rather than collaborative, incremental progress supported by public funding. This narrative can skew public perception, suggesting that technological advancement might somehow spontaneously occur without structured support. It makes the process seem more magical than methodical, glossing over the reality that innovation is usually more marathon than sprint, and certainly not a solo race.

Secondly, this narrative concentrates excessive admiration—and thus influence—in the hands of tech leaders. Celebrated as visionary and almost superhuman, these individuals often come to wield significant power, not just over their companies but within society itself. Yet, while they may be exceptional in their fields, they frequently lack broad education in social sciences and humanities, or experience in broader human affairs, areas crucial for understanding the implications of the technologies they unleash. This can lead to decisions that prioritize innovation over social impact considerations or public welfare, a risky imbalance.

The superstar culture in technology isn't just an issue of misrepresentation. It has practical consequences, potentially leading policymakers and the public to undervalue the importance of ongoing governmental support for research. If tech advancements are viewed as products of individual genius rather than results of public investment and collaboration, governments and voters might feel justified in cutting funds to these areas, mistakenly believing the private sector will fill the gap. This could slow innovation and shift the global tech landscape, especially towards countries that maintain robust public funding for research.

Acknowledging the role of public funding in technology isn't about diminishing the achievements of tech leaders—it's about painting a more complete and accurate picture of innovation. This more nuanced understanding could foster better-informed decisions regarding funding, education, and policy, ensuring the ecosystem that nurtures new technologies remains dynamic and well-supported.

Ultimately, recognizing the collective contributions to technological advancements isn't just about giving credit where it’s due. It's about ensuring a balanced narrative that neither idolizes the individual innovator nor underestimates the foundational role of public investment. By correcting this imbalance, we can encourage a more sustainable, equitable approach to technology development—one that's grounded in reality and attentive to the broader implications of rapid technological change.

AI revolution minus massive unemployment

The conversation on AI often revolves around efficiency and cost reduction, typically translating into fewer jobs. However, a pivotal shift in perspective—from cutting workforce to enhancing and expanding workforce capabilities—can redefine the role of AI in the corporate world. This approach not only preserves jobs but also adds significant value to customer experiences and broadens the spectrum of services and products a company can offer. 

The traditional method of dealing with technological disruption—laying off workers and hiring new ones with the necessary skills—is not only a waste of human capital but also disregards the cultural knowledge embedded within an organization's existing workforce. Retraining keeps people within the organization, allowing them to shift roles while retaining and applying their invaluable understanding of the company's ethos and operations in new ways.

The first step in a proactive workforce transformation strategy is to map out the anticipated skills and roles that will be in demand. This is not just about foreseeing the obsolescence of certain skills but identifying emerging opportunities where AI can augment human capabilities. For instance, with the rise of AI-driven analytics, there is a growing need for professionals who can interpret and leverage these insights into strategic decisions, enhancing business intelligence far beyond current levels.

Once future needs are mapped, the next step is to develop a compelling incentive structure for retraining. Traditional models of employee development often rely on mandatory training sessions that might not align with personal or immediate business goals. Instead, companies should offer tailored learning pathways that align with career progression and personal growth, supported by incentives such as bonuses, career advancement opportunities, and recognition programs. This approach not only motivates employees to embrace retraining but also aligns their development with the strategic goals of the organization.

With AI's capacity to handle repetitive and mundane tasks, employees can redirect their efforts towards more complex, creative, and meaningful work. This shift enables businesses to expand their service offerings or enhance their product features, adding significant value to what customers receive. For example, financial advisors, freed from the tedium of data analysis by AI tools, can focus on crafting bespoke investment strategies that cater to the intricate preferences and needs of their clients. Similarly, customer service representatives can use insights generated by AI to provide personalized service experiences, thereby increasing customer satisfaction and loyalty.

AI not only optimizes existing processes but also opens new avenues for innovation. For instance, in the healthcare sector, AI can manage diagnostic data with high efficiency, which allows healthcare providers to extend their services into preventive health management and personalized medicine, areas that were previously limited by resource constraints. In the retail sector, AI-enhanced data analysis can lead to the creation of highly personalized shopping experiences, with recommendations and services tailored to the individual preferences of each customer, transforming standard shopping into curated personal shopping experiences.

For successful implementation, organizations must foster a culture that views AI as a tool for empowerment rather than a threat to employment. Leadership should communicate clearly about the ways AI will be used to enhance job roles and the benefits it will bring to both employees and the company. Regular feedback loops should be established to adjust training programs based on both employee input and evolving industry demands, ensuring that retraining remains relevant and aligned with market realities.

By focusing on retraining the workforce to harness AI effectively, businesses can transform potential disruptions into opportunities for growth and innovation. This approach not only preserves jobs but also enhances them, adding unprecedented value to the company and its customers, and paving the way for a future where human ingenuity and artificial intelligence work hand in hand to achieve more than was ever possible before.