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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. 📝 See what your customers are really saying with Unwrap
• 2. ⚡️ China's Kimi K3 rivals US models
• 3. 💼 Your Business Briefing
• 4. 🤓 Read the signals your data is missing with Marie-Lou Poirrier
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin

Are you ready to launch AI transformation for your company?

TOGETHER WITH UNWRAP

 🎯 Less meetings, more answers

If your team still sorts through customer feedback manually (or with a patchy mix of manual work and AI), there's a better way. Unwrap brings all your feedback across surveys, reviews, tickets, social comments etc. into one view, then uses AI and NLP to surface what actually needs your attention.

With Unwrap, you can:

• Automatically categorize all your feedback in one unified view

• Ask questions in plain language with Unwrap's AI Assistant or MCP

• Get real-time alerts as trends emerge, plus custom reporting on your schedule

• Access a platform trusted by companies like Clay, Perplexity, Oura, Stripe, and lululemon

✅ tested and trusted at scale by leading frontier labs, Oura, lululemon, Stripe, Southwest Airlines, Clay and many more!

Exclusive for The AI Report subscribers: Grab a free trial and get set up today!

Latest in AI

China's Kimi K3 rivals US models

🚨 Our Report

Chinese AI lab Moonshot AI released Kimi K3, a massive 2.8 trillion-parameter model that outperforms leading US systems in blind tests while undercutting their pricing. In Arena evaluations, developers preferred K3 over Anthropic's Fable 5 and OpenAI's GPT-5.6 Sol for coding tasks, and it matched Sol's text performance while beating Anthropic's Opus 4.8, a frontier model just weeks ago.

🔓 Key Points

• K3 features a 1 million-token context window and handles both text and images, making it one of the largest open-weight models ever released with performance rivaling the best American systems.

• Moonshot priced K3 at roughly $12 per million tokens, well below premium US models it's challenging, raising questions about how long American labs can maintain top-tier pricing for frontier intelligence.

• The release comes days before the 2026 World AI Conference in Shanghai where President Xi Jinping is expected to outline Beijing's AI priorities, with rival DeepSeek also preparing to drop an updated model soon.

🔐 Relevance

For enterprise AI buyers, K3 signals a pricing correction incoming across the market. If Chinese labs can deliver frontier performance at mid-tier pricing, US vendors will face pressure to justify premium costs or risk losing contracts. CISOs and procurement teams should track K3's real-world reliability over the next 30 days before making vendor decisions, but the competitive dynamics just shifted hard.

The AI Report Podcast

AI Is Optimized to Sound True, Not Be True | Dan Klein, CTO, Scaled Cognition

THE BUSINESS BRIEFING: HR & TALENT (powered by Upscaile)

Adecco (global workforce solutions, 35,000+ employees) was burning recruiter hours on repetitive pre-screening while candidates waited days for callbacks. They deployed AI agents across seven recruitment stages, from pre-screening to onboarding, handling candidate interactions at scale while recruiters focused on relationship building.

Tool used: Adecco's proprietary AI agent network -- automated pre-screening, shortlisting, redeployment outreach, and 24/7 candidate engagement across voice and text.

Result: Time-to-deliver cut 50%. Fill rates above 80%. 1.2 million candidate interactions logged, with 51% happening outside business hours. Customer satisfaction hit 4.3/5 across lead markets.

The lesson: AI recruitment works when it handles volume without replacing human judgment at decision points. Adecco's Redeployment Agent proactively contacts candidates within days of assignment end, captures feedback, and builds preference profiles. That handoff keeps candidates engaged instead of lost.

Steal this: Identify your highest-volume, lowest-complexity candidate touchpoint this week. Pre-screening calls, scheduling confirmations, status updates. Automate that single step first. Track time saved per recruiter and candidate response rates before expanding.

📚 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.

TOGETHER WITH MARIE-LOU POIRRIER

Five Signals Your AI Transformation Cannot Afford to Miss

Anthropic interviewed 81,000 people about AI at work. Most organizations read the productivity data. This report reads what adoption is actually doing to your people’s capacity to contribute — and what that costs the business.

• 5 human signals drawn from the data — what it says, what it actually means, what it asks of leaders

• 4 stages of human AI adoption — where your organization likely stands right now

• 3 costs of getting the human layer wrong — unrealized AI value, human capability depreciation, the human multiplier left unused.

Start with 10 questions to initiate the reflection. Get the report straight to your inbox.

THE POLICY CORNER

Australia establishes federal AI Office and announces national standards for artificial intelligence.

Prime Minister Anthony Albanese announced the immediate creation of an Office of AI within the Prime Minister's department, alongside new national standards for AI that will be legislated early next year. The standards will create legal obligations for large data centre operators to underwrite their own power supply, avoid increasing household electricity costs, and minimize water usage. The government also reaffirmed that Australian AI developers must pay creators for content used to train models, rejecting the free-use exemptions adopted by the US, EU, and Japan.

Deadline: AI Office is operational now. National AI standards legislation is expected in early 2026.

Risk: Companies building or operating data centres in Australia face new compliance obligations. AI developers using copyrighted content without licensing agreements face continued legal exposure.

Your move: If you operate data centres or are developing AI models, review your power and water agreements against the incoming standards and ensure content licensing is documented before the legislation drops.

AI News

• 🎮 Roblox launches AI game creation for 132M users: New "Build" tools let anyone create games from natural language prompts on mobile, with publishing rolling out to New Zealand first and broader regions in the coming months. FULL STORY

• 🎥 Google Vids adds AI avatars from selfies: Workspace users can now create custom digital avatars that look and sound like them, pushing the tool beyond presentations into full video production with Gemini Omni integration. FULL STORY

• 🔌 Microsoft taps 3M for Azure AI data center infrastructure: 3M's Expanded Beam Optical technology will deploy across Azure AI facilities as the companies expand their partnership to a $2B+ addressable market opportunity. FULL STORY

• 🔗 Google AI Mode connects to Instacart, Canva, YouTube: U.S. users can now link apps directly within conversational search to complete tasks like grocery ordering and playlist creation without leaving AI Mode. 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. Incogni* — Data brokers feed AI your info. Incogni removes you from 200+ of them — automatically

2. ClearML is an AI infrastructure platform for managing GPU clusters and deploying generative models.

3. Aabo is a digital health platform offering AI-powered wearable medical devices for personalized monitoring.

^{*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: Healthcare AI moves from pilot to infrastructure

Two of the week's largest funding rounds targeted healthcare AI deployment at scale. As hospitals shift from evaluating AI tools to embedding them in clinical workflows, investors are backing platforms that can deploy dozens of agents across entire health systems rather than point solutions solving single problems.

Deals to know:

• Bunkerhill Health (Series B, $25M) -- AI agent platform deploying 22 operational and clinical agents across 15 health systems including Cleveland Clinic, Mayo Clinic, and Intermountain Health. Nine FDA-cleared algorithms embedded. Investors: Khosla Ventures (lead), Sequoia, Felicis, Optum Ventures, Y Combinator

• Neko Health (Series C, $700M) -- Body-scanning and health assessment platform preparing U.S. expansion after 100K+ scans completed. Spotify founder Daniel Ek's preventive care bet scaling from Sweden and U.K. to New York. Investors: Lightspeed Venture Partners (lead), O.G. Venture Partners, Atomico, General Catalyst

Signal: Capital is consolidating around healthcare AI platforms that can scale across entire systems, not single-use tools. Multi-agent deployments and preventive infrastructure commanding premium valuations as hospitals move from experimentation to enterprise rollout.

Refer a Friend

Latest episode: AI Is Optimized to Sound True, Not Be True→ Listen here
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Until next time, Arturo and Liam.

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