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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. 📈 Turn AI investment into measurable impact with IBM
• 2. 🏘️ Join The AI Report Community (free guides inside)
• 3. ⚡️Apple sues OpenAI over secrets
• 4. 💼 Your Business Briefing
• 5. 🔐 Protect your identity with Incogni
• 6. ✍️ Today’s Policy Corner
• 7. 🗞️ The News Bulletin
Are you ready to launch AI transformation for your company?
TOGETHER WITH IBM
From tokenmaxxing to valuemaxxing
The first wave of enterprise AI was all about tokenmaxxing. Organizations prioritized adoption, usage and getting AI into the hands of employees at scale. But as AI matures, a new reality is emerging: more AI use does not automatically translate into better outcomes. The next phase is valuemaxxing, where success is measured by productivity gains, business outcomes and ROI. Many organizations are moving beyond usage metrics and asking a more important question: How much value is AI creating? The companies that get ahead will be the ones that turn AI investments into measurable business impact.
THE AI REPORT COMMUNITY
New here? Our free community is where the extra stuff lives, including:
📊 2026 AI Tool Stack Guide (20+ pages)
🤖 HubSpot x The AI Report: ChatGPT at Work Guide
📝 Claude + ChatGPT Prompt Library (75+ prompts)
AND you can gain access to your choice of two resources available in our premium Leaders Launch Program for free.
Latest in AI
Apple sues OpenAI for theft
🚨 Our Report
Apple filed a lawsuit against OpenAI, alleging trade secret theft and breach of contract by former Apple employees now at the AI company. The iPhone maker claims OpenAI's senior leadership directed a pattern of misconduct to extract confidential information about unreleased products and proprietary technologies.
🔓 Key Points
Apple accuses OpenAI Chief Hardware Officer Tang Tan of using Apple's confidential project code names during recruiting, asking job candidates to bring hardware components to interviews, and coaching departing employees on evading security procedures.
Former Apple engineer Chang Liu allegedly failed to return an Apple laptop after joining OpenAI and used it to download confidential technical documents about unannounced technologies, features, and products.
Apple claims OpenAI used its proprietary metal finishing technique after allegedly misleading a partner into believing it had Apple's permission, suggesting stolen trade secrets are already in use in OpenAI's hardware development.
🔐 Relevance
The lawsuit arrives as OpenAI is reportedly developing a smartphone that would rely on AI agents instead of apps, posing a direct threat to Apple's core business. For enterprise leaders, this signals escalating IP warfare between AI and traditional tech giants competing for hardware dominance. Companies hiring from competitors should review their own onboarding protocols, as Apple's complaint suggests these practices may face increased legal scrutiny.
Stop wasting time researching AI tools
The hardest part of adopting AI isn't finding tools, it's knowing which ones are actually worth using.
That's why we've upgraded our Tool Database into a completely redesigned Tool Index, featuring 5,500+ AI tools, structured comparisons, powerful search and filtering, and a new AI Stack Builder that recommends the best tools for your business based on your team, budget, and existing workflow.
Spend less time researching and more time implementing AI.
THE BUSINESS BRIEFING: IT & OPERATIONS (powered by Upscaile)
Elsewedy Electric (integrated energy solutions, 19,000 employees, $5B revenue) was experimenting with AI across isolated pockets — HR testing one tool, finance piloting another, supply chain running a third. No governance framework. No consistent measurement. Executive leadership couldn't tell which use cases delivered value or how to scale what worked. They partnered with IBM to move from scattered experiments to enterprise-grade agentic AI, using watsonx.ai and watsonx Orchestrate to build a governed roadmap of 30+ prioritized use cases.
Tool used: IBM watsonx — enterprise AI platform for building, governing, and deploying models with agentic workflow orchestration across domains.
Result: 10+ use cases already in advanced delivery, delivering measurable productivity gains. Standardized governance framework now in place to scale AI consistently across operations, supply chain, HR, finance, legal, and market intelligence.
The lesson: Elsewedy Electric didn't start with technology. They started with governance. IBM's Client Engineering team ran a proof of concept on Expanding Markets Investment Research first, built confidence, then mapped strategic business priorities before deploying anything at scale. Most companies fail AI adoption by deploying tools before establishing measurement frameworks and governance controls.
Steal this: Audit your current AI pilots this week. List every tool in use, the team using it, and whether you're measuring output impact. If you can't answer "what specific outcome improved and by how much?" for each tool, you're not ready to scale. Build measurement and governance first, scale second.
TOGETHER WITH INCOGNI
Remove your personal data from Google search results
Your phone number, address, DOB, even your SSN can show up in a Google search. Marketers buy it, scammers exploit it, and in the worst cases, it ends up for sale on the dark web.
Incogni Unlimited helps you take control. Our privacy agents hunt down and remove your personal data from an unlimited number of sites. With automation across 420+ broker types—including People Search platforms and private databases—Incogni erases your information where others can’t reach.
Protect your identity before it’s too late. Use code AIREPORT for an exclusive 55% discount on unlimited removals.
THE POLICY CORNER
Thailand releases draft AI Act requiring foreign providers to appoint local representatives and comply with strict liability rules.
Thailand's Electronic Transactions Development Agency published a revised draft AI Act on July 2, 2026, establishing a risk-based regulatory framework for any AI system affecting individuals in Thailand. The law applies regardless of where the AI provider is based. Foreign providers may need to appoint a local representative with broad authority to act on their behalf. High-risk AI systems face mandatory human oversight, risk management processes, and 6-month operational log retention. Generative AI developers must embed machine-readable identifiers in AI-generated content.
Deadline: Public consultation closes in 30 days. Core measures take effect immediately upon publication; remaining provisions 180 days after.
Risk: Strict liability regime means you're responsible regardless of intent or negligence. Fines reach THB 5 million (~$150,600). Regulators can order ISPs to block your AI services in Thailand.
Your move: Audit any AI systems this month. Map which could fall under high-risk classifications and assess whether you need a local representative before the final rules land.
📚 RETHINKING YOUR CAREER? START HERE
80,000 Hours: How to Have a Fulfilling Career That Does Good by Benjamin Todd
If you're rethinking your career path (or just want to make sure you're spending your working years well), this one's worth a look.
Todd breaks down how to find work that's genuinely fulfilling and makes a real impact: practical, research-backed advice rather than vague "follow your passion" platitudes. Great pick for anyone weighing next steps or feeling stuck in a career rut.
AI News
📉 AI spending now drives 25%+ of U.S. GDP growth: Bloomberg analysis finds AI-related investment has reached 8% of GDP, surpassing the dot-com era's 6.5% peak, raising questions about economic exposure if the buildout slows. FULL STORY
📸 Meta kills Instagram AI feature after backlash: The company removed Muse Image's ability to generate images using photos from public accounts without notification, reversing course within days of launch amid scrutiny from users and talent agencies. FULL STORY
🎓 UST to train 20,000 on Claude as Anthropic's newest enterprise partner: The systems integrator is embedding Claude into engineering platforms for semiconductors, telecom, and manufacturing, signaling a shift toward standardized AI stacks at the platform layer. FULL STORY
💸 Enterprise AI budgets burning out mid-year: Major companies including Uber, Meta, and Salesforce are rationing tokens and cutting AI access as annual budgets deplete in months, with only 26% of enterprises saying governance keeps pace with deployment. FULL STORY
Trending AI Tools (Sponsored by the AI Executive’s Pass)
A curated look at the AI tools quietly transforming how teams work.
Gamma:* Create stunning presentations and websites from a single prompt, no design skills required
Aftercare is an AI platform that enhances surveys with intelligent follow-up questions and automated response analysis
Abstra is a Python-driven workflow engine for building custom business processes with AI
*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: AI infrastructure financing hits the balance sheet
Two of this week's largest capital moves signal a shift in how Big Tech funds the AI buildout. Amazon's $25B bond sale and CoreWeave's $24.9B debt stack show hyperscalers and neoclouds alike now treat AI infrastructure like power plants or telecom networks: finance it with long-dated debt, collateralize it with hardware, and spread the cost across years of contracted revenue.
Deals to know:
Amazon (Bond sale, $25B) -- Funding data centers, chips, and cloud capacity for AWS AI infrastructure expansion. Follows prior large debt raises in 2026.
CoreWeave (Total debt, $24.9B) -- GPU-backed debt rated A3 by Moody's based on Meta's $14.2B compute contract. Interest payments hit 25.8% of Q1 revenue. Investors: Blackstone Credit, MUFG, Morgan Stanley, Goldman Sachs, JPMorgan
Signal: AI capex is migrating from equity raises to structured debt backed by customer contracts. The companies that can collateralize compute agreements with investment-grade counterparties will keep borrowing cheaply. Everyone else pays 10%+ yields.
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Until next time, Arturo and Liam.
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