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Welcome to The AI Report — the #1 AI newsletter for business leaders.

You don’t need to be technical. Just informed.

• 1. 🧠 Get the full scoop on AI with IBM
• 2. ⚡️ Anthropic files for IPO
• 3. 💼 Your Business Briefing
• 4. 📖 Build your profitable AI idea with Innovating with AI
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin

Are you ready to launch AI transformation for your company?

TOGETHER WITH IBM

Where are our returns on AI?’

For many companies, AI’s arrival has disrupted long-term plans. Multiple studies suggest that only a small minority of organizations are capturing meaningful value at scale.

As investment rises, boards and executives are increasingly asking why—and what can be done.

Expert analysis reveals problems and solutions, including:

 Rethinking: Adopt AI as a companywide effort.
 Accountability: Consolidate ownership and responsibility across the C-suite.
 Translation: Address the perception-versus-reality divide among management levels.
 Collaboration: Recognize 5 distinct executive agendas that might collide.

Latest in AI

Anthropic files for IPO

🚨 Our Report

Anthropic, the AI safety company behind Claude, has confidentially filed for a US initial public offering, positioning itself to potentially beat rival OpenAI to public markets in a move that could reshape the AI investment landscape.

🔓 Key Points

• The IPO filing comes as Anthropic's valuation has surged, attracting major institutional investors including Blackstone and Insight Partners as Wall Street bets on the company's enterprise AI focus.

• Analysts say the timing is strategic: by going public before OpenAI, Anthropic could secure a first-mover advantage in capturing investor capital and establishing itself as the leading pure-play AI stock.

• The listing could provide a boost to the sluggish US IPO market, with Anthropic poised to reshape US equity markets if it proceeds as planned.

🔐 Relevance

For enterprise buyers, the filing points to long-term vendor stability for Claude users. A public Anthropic means greater financial transparency and access to capital markets for continued R&D investment. For investors, it opens a path to gain direct exposure to a frontier AI company. The race to public markets also intensifies competition between Anthropic and OpenAI, which could accelerate product development and pricing pressure across the industry.

The AI Report Podcast

What a Trillion Data Points Tell Us About AI and Consumer Behaviour | Vivek Pandya, Adobe

The AI Executive's Pass is live

Most business leaders are already paying for 4–6 AI tools they found separately, at full price, with no coordination between them. The AI Executive's Pass is the fix.

$11,000+ in tools and resources built for executives actually implementing AI — not just reading about it.

Inside: Notion, beehiiv, ListKit, Make.com, Paperform, Intercom, a private GPT training session, and a LinkedIn growth consult.

Are you ready to launch AI transformation for your company?

THE BUSINESS BRIEFING: SALES (powered by Upscaile)

Macy's (legacy retailer, 90K employees, 2.5M SKUs) faced a 70% cart abandonment rate, customers overwhelmed by choice couldn't find what they needed fast enough. They rebuilt their digital shopping experience from scratch in 4 weeks using Gemini Enterprise for Customer Experience, launching "Ask Macy's," a multimodal AI agent that handles text, images, and virtual try-ons.

Tool used: Gemini Enterprise for Customer Experience -- conversational AI agent that understands customer context across product catalogs.

Result: Revenue per visit for Ask Macy's users measured 4.75x higher than standard site visitors during beta. Daily engagement climbed within two months of launch.

The lesson: Speed beats perfection when AI moves this fast. Macy's scrapped six months of prior work to pivot to newer tech in under six weeks—and launched to 100% of users five days after beta.

Steal this: Map your highest-friction customer touchpoint this week—where do users drop off or get stuck? That's your first AI agent candidate.

TOGETHER WITH INNOVATING WITH AI

Find your profitable AI idea and build it tonight.

Not "learn about AI." Not "explore some prompts." In 60–90 minutes, go from "I want to build with AI" to "I shipped something and a real person clicked."

The bottleneck isn't ideas or tools — it's the gap between thinking and starting. So we published the loop we run with founders weekly:

→ A Claude skill that scores your idea against the SHIP framework
→ A Claude skill that builds a working prototype in 30–45 minutes
→ A test script that turns it into real market signal

THE POLICY CORNER

SEC expects companies to prove their AI claims—and companies now disclose AI risks 700% more than five years ago.

Between 2019 and 2024, S&P 500 firms shifted from 55 companies mentioning AI to 444, with most now flagging AI as a material risk in their 10-K filings, not just a business opportunity. The SEC launched an AI task force in 2025 and has brought enforcement actions against issuers whose AI claims overstated capabilities. The FTC is demanding transparency from major chatbot developers on testing and safeguards.

Deadline: In effect now. Enforcement underway.

Risk: SEC complaints for fraudulent schemes or exaggerated AI capability claims. Overstated AI disclosures open exposure to regulatory action and shareholder litigation.

Your move: Audit all investor-facing and consumer-facing AI claims this quarter. Remove capability overstatements. Verify that disclosures reflect actual testing, limitations, and operational risks—not aspirational roadmaps.

AI News

• 🌪️ Google DeepMind outperforms forecasters in 2025 hurricane season: AI model delivered predictions 3 days ahead of Cat 5 landfall, helped NHC make most aggressive early forecasts in center's history, operates 100x faster than physics models. FULL STORY

• 🔓 Instagram patched chatbot hack that let attackers reset passwords: Security flaw allowed hackers to trick Meta AI Support Assistant into adding new email addresses to victim accounts, compromised Obama White House and Space Force handles before fix. FULL STORY

• 💰 Pinterest cut AI inference costs 90% by customizing Qwen: Rebuilt Qwen3-VL's vision layer with proprietary embeddings, boosted accuracy 30% for 620M users, precomputes embeddings offline to avoid runtime latency. FULL STORY

• 🤖 NVIDIA releases agent toolkit for physical AI development: Open source collection automates robotics, AV, and vision AI workflows, TSMC and Foxconn already deploying skills for manufacturing inspection, cutting training time 67%. FULL STORY

Trending AI Tools (Sponsored by the AI Executive’s Pass)

A curated look at the AI tools quietly transforming how teams work.

1. Kit:* 600K+ creators. 2.5B emails monthly. 99.8% deliverability. The newsletter OS for creators.

2. Luvvoice is a free text-to-speech platform with 200+ voices across 70+ languages

3. Telemo is an AI-driven platform for customer engagement and support automation

^{*indicates a sponsored tool, if any}

⚡️ Why pay for 4–6 separate AI tools at full price when the AI Executive’s Pass fixes that?

The Money: Fintech AI agents hit profitability

Finance automation isn't a future bet anymore; it's generating returns now. Two recent raises prove investors are backing AI agents that cut costs and close deals in highly regulated verticals where traditional automation failed.

Deals to know:

• Gradient Labs (Series A extension, $26M) -- Finance-focused AI agents automating lending, disputes, and KYC for Wise, Monzo, and Zego. Doubled round from $13M in under a year. Investors: Octopus Ventures, CommerzVentures, Redpoint Ventures

• Corgi (Series B1, $106M at $2.6B valuation) -- Commercial insurance underwriting and claims platform. Profitable last month. Three weeks after $160M Series B at $1.3B valuation. Investors: TCV, Prime Capital, Kindred Ventures

Signal: Money flows to agents solving compliance bottlenecks, not chatbots answering questions. Vertical SaaS with embedded AI that touches revenue commands steep valuations when unit economics prove out fast.

Refer a Friend

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Until next time, Arturo and Liam.

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