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Welcome to The AI Report — the #1 AI newsletter for business leaders.
We believe you don’t need to be technical. Just informed.
Inside: real-world use cases and Partner Perspectives you won’t find anywhere else:
• 1. 💬 Turn your customer feedback into actionable insights with Unwrap
• 2. 🔎 Anthropic exposes Chinese labs for stealing
• 3. 💼 Your Business Briefing
• 4. 🦾 Turn your AI enthusiasm into marketable skills with Innovating with AI
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin
Want to reach 400k+ AI-focused business leaders?
TOGETHER WITH UNWRAP
Powerful insights for powerful brands!
Unwrap’s customer intelligence platform brings all your customer feedback (surveys, reviews, support tickets, social comments, etc.) into a single view, then uses AI + NLP to surface the most actionable insights and deliver them straight to your inbox.
Unwrap works with product, CX, support, operations, and data teams to cut through thousands of pieces of feedback, ensure no customer voice gets lost, and get data-backed insights to inform their roadmaps. Trusted by Stripe, Lululemon, WHOOP, Clay, Ro, DoorDash, Southwest Airlines, and others.
If your team is still relying on time-consuming manual processes (or even a mix of manual work and AI), there's a much better way to aggregate and analyze feedback.
With Unwrap you get:
All customer feedback auto-categorized into a single view
Natural language queries to explore feedback instantly
Real-time alerts, custom reporting, and clear sentiment tracking
Book a time to chat with the team about automating customer insights.
Latest in AI
Anthropic exposes Chinese labs for stealing
🚨 Our Report
Anthropic has revealed that three Chinese AI labs, DeepSeek, Moonshot, and MiniMax, ran industrial-scale campaigns to illicitly extract Claude's capabilities to train their own models. The labs generated over 16 million exchanges with Claude through approximately 24,000 fraudulent accounts, violating Anthropic's terms of service and regional access restrictions.
🔓 Key Points
The labs used "distillation," a technique that trains a less capable model on outputs from a stronger one, letting them acquire advanced capabilities at a fraction of the time and cost required to develop them independently.
DeepSeek generated over 150,000 exchanges targeting reasoning capabilities, while MiniMax ran the largest campaign with over 13 million exchanges, pivoting within 24 hours of new Claude releases to capture the latest features.
Anthropic warns that illicitly distilled models lack safeguards, creating national security risks as dangerous capabilities proliferate with protections stripped out, potentially enabling authoritarian governments to deploy AI for cyber operations and surveillance.
🔐 Relevance
For business leaders, it raises questions about the security of proprietary AI systems and the effectiveness of current access controls. Anthropic is responding with detection classifiers, intelligence sharing with other labs, and stronger account verification. The incident also reinforces the rationale for stricter export controls on advanced chips, since executing distillation at this scale still requires substantial compute resources.
THE BUSINESS BRIEFING: MARKETING
Priceline (global travel brand, thousands of employees) managed 200,000 campaigns but couldn't scale niche marketing opportunities because each new campaign required producing hundreds of thousands of custom, city-specific, keyword-rich ads that met strict character limits and editorial policies. They integrated Copilot in Microsoft Advertising Platform via API into their proprietary ad system, feeding landing page URLs and short prompts into Google Sheets to auto-generate compliant headlines and descriptions at scale.
Tool used: Copilot in Microsoft Advertising Platform — generates compliant, location-specific ad copy from landing pages and keyword prompts.
Result: 10% immediate CTR lift. Launched campaigns for 200,000+ boutique hotels, upper-funnel destination queries, and event-based travel (concerts, festivals) that were previously too labor-intensive to pursue. Tasks requiring hundreds of hours are now completed in minutes.
The lesson: Generative AI for ads only works when fed real landing pages and structured prompts. Priceline's copy stayed on-brand because the tool scraped their actual URLs, not generic templates.
Steal this: Pick one campaign type you've been avoiding because it requires too many ad variants. Paste 5 landing page URLs into a spreadsheet with keyword prompts. Use Copilot in Microsoft Advertising Platform or a similar tool to generate 50 ad variants this week. Test CTR against your manual baselines.
TOGETHER WITH THE AI CONSULTANCY PROJECT
‘AI consultants are getting paid $900/hr’ –Fortune
Fortune Magazine interviewed Innovating with AI’s founder to discuss a crazy stat – AI engineers are being deployed as consultants at $900/hr. Why did they interview Rob? Because he’s already trained 1,000+ AI consultants – and IWAI’s exclusive consultant directory has driven Fortune 500 leads to graduates.
Want to learn how to turn your AI enthusiasm into marketable skills, clear services and a serious business? Enrollment in The AI Consultancy Project is opening in 2026 – and you’ll only hear about it if you apply for access now.
THE POLICY CORNER
Colorado’s Senate Bill 24-205 requires businesses that develop or use “high-risk” AI systems to take reasonable care to prevent algorithmic discrimination and to complete formal impact assessments. It applies to companies doing business in Colorado when AI plays a substantial role in decisions about employment, credit, housing, education, healthcare, legal, or government services. Both AI developers and deployers have documentation, disclosure, and risk management obligations.
Deadline: February 1, 2026.
Your move: If AI influences hiring, lending, or customer eligibility decisions, start building a documented AI risk management program aligned to NIST’s AI Risk Management Framework and schedule your first impact assessment before deployment.
AI News
Guide Labs open-sources Steerling-8B: 8B-parameter LLM with fully traceable outputs, every token linked to training data origins for interpretability. FULL STORY
ASML unveils EUV light source advance: new technology could yield 50% more chips by 2030, major breakthrough in semiconductor manufacturing capacity. FULL STORY
Spotify rolls out AI-Prompted Playlists: Premium users in the U.K., Ireland, Australia, and Sweden can now generate custom playlists from text prompts. FULL STORY
OpenAI stops reporting SWE-bench Verified scores: 59.4% of audited tasks contain flawed tests, contamination from training data makes the benchmark unreliable for measuring real coding capability. FULL STORY
Trending AI Tools (sponsored by our tools database)
A curated look at the AI tools quietly transforming how teams work.
Chatnode is for building custom, advanced AI chatbots that enhance customer support and user engagement ⭐️⭐️⭐️⭐️⭐️ (Product Hunt)
Lots AI is an AI-driven trading assistant for chart insights, news evaluation, and position sizing
Asymmetric Data is a keyword clustering tool for data-driven marketing strategies
The Money: AI workflow layers command premium valuations
Infrastructure bets climbed the stack this week. Investors poured $400M+ into orchestration, compliance automation, and vertical platforms, signaling a shift from raw compute toward operational AI that integrates with regulated enterprise systems.
Deals to know:
Temporal (Series D, $300M) -- Durable execution platform coordinating long-running, multi-step AI workflows at enterprise scale. Investors: Accel, Index Ventures, Sequoia Capital, and others.
Jump (Series B, $80M) -- AI operating system automating compliance, CRM updates, and client workflows for 27,000 financial advisors managing $12T in assets. Investors: Insight Partners, F-Prime, Allianz Life Ventures, TIAA Ventures, Peterson Partners
Signal: Capital follows reliability over novelty. Buyers want AI wired into systems of record, not browser experiments. Workflow orchestration and vertical compliance automation will absorb disproportionate venture dollars through Q3 2026.
Refer a Friend
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Until next time, Martin, Arturo, and Liam.
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