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Before today's stories — this is the one to act on: the AI Executive's Pass is live right now. We've been teasing this for a while, and it's finally here. One $199/year membership that bundles $11,000+ in AI tools and resources — Notion, beehiiv, ListKit, Make.com, Paperform, Intercom, a private GPT training session, and a LinkedIn growth consult. Launch pricing only runs until May 19, so if you've been on the fence, now's the time.

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

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• 1. 🧪 Advanced health testing made simple with Function
• 2. ⚡️ Claude now leads in B2B spend
• 3. 💼 Your Business Briefing
• 4. 🔎 Remove your personal data from Google with Incogni
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin

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TOGETHER WITH FUNCTION

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Latest in AI

Claude now leads in B2B spend

🚨 Our Report

For the first time, Anthropic has overtaken OpenAI as the top AI vendor among business customers, according to this month's AI Index from fintech firm Ramp. The survey, compiled from expense data across 50,000+ companies, shows 34.4% of participating businesses now use Anthropic services, compared to 32.3% for OpenAI.

🔓 Key Points

• Anthropic's business adoption has surged over the past 12 months. In May 2025, just 9% of businesses were using Anthropic products, a figure that climbed 26% to reach 34.4% by May 2026.

• Ramp economist Ara Kharazian credits Anthropic's success to a focused strategy: "Start with a very technical customer base, focus on their needs, really succeed in execution and then start broadening out through tools like Cowork."

• The trend extends beyond Ramp's data. On OpenRouter's leaderboard, which samples a different user base, OpenAI last ranked above Anthropic in December 2025.

🔐 Relevance

Business buyers who once defaulted to OpenAI are now choosing Anthropic in greater numbers. For companies evaluating AI vendors, the takeaway is clear: competition at the top is real, and Anthropic's enterprise-first approach is paying off. Decision-makers should expect aggressive competition and feature battles as both labs fight to retain their business customer bases.

The AI Report Podcast

Pentagon's AI List + Elon Musk Rents His Data Center to Anthropic | AI News in 5

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THE BUSINESS BRIEFING: COMPLIANCE (powered by Upscaile)

Macquarie Bank (5,000-person financial institution) was burning resources on repetitive manual work across legal, risk, and compliance teams. Incident response required hours of data collation. Sensitive case handling involved 30 staffers manually drafting responses. Legal teams struggled to assess risk exposure during time-sensitive incidents.

Tool used: Gemini Enterprise — Google's enterprise AI platform with built-in compliance controls and workflow automation.

Result: 130,000 productivity hours recovered in seven months. 80% daily adoption across the organization. Risk and compliance teams built their own AI agents without dedicated tech support.

The lesson: Macquarie didn't sell AI to risk teams — they made risk teams the pilot users. By putting legal, compliance, and risk personnel on the tool first, those teams understood exactly how to assess and approve it for broader rollout.

Steal this: Before pitching AI adoption to your compliance team, give them licensed access for 30 days. Let them test it on their own workflows. They'll write better risk assessments because they'll understand the tool's actual behavior, not hypothetical risks.

TOGETHER WITH INCOGNI

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THE POLICY CORNER

CFPB eliminates statistical bias testing for lenders -- fair lending enforcement curtailed under Trump administration.

The Consumer Financial Protection Bureau finalized a rule ending the use of disparate impact analysis under the Equal Credit Opportunity Act. Lenders will only face discrimination claims where intentional bias can be proven through direct evidence like emails or documents, not statistical patterns showing unintended discrimination against protected groups. Applies to all entities extending credit under ECOA, including banks, fintech lenders, and AI-powered credit platforms.

Deadline: Takes effect 90 days after publication in Federal Register (mid-May 2025).

Your move: Review how your credit models or underwriting AI make decisions by protected characteristic. Document intentional non-discrimination in writing now -- the new standard requires paper trails proving bias wasn't intentional, not just statistical fairness.

AI News

• 🪖 Marines mandate AI training for entire force: All active duty, reserve, officer, and enlisted Marines must complete 45-minute GenAI course by December 31, 2026, covering platforms like ChatGPT, Gemini, and Grok through DoD's GenAI.mil. FULL STORY

• 🏢 Anthropic launches Claude for Small Business: Package includes 15 ready-to-run workflows and integrations with QuickBooks, PayPal, HubSpot, Canva, and Docusign to automate payroll, invoicing, and campaign management for 44% of U.S. GDP that relies on small businesses. FULL STORY

• 🚢 Anduril raises $5B, expands Seattle shipyard: Defense tech startup valued at $61B builds autonomous warships at historic Foss Maritime facility, part of broader Pacific Northwest defense tech boom including Armada's Bellevue hub and Saronic's $1.75B raise. FULL STORY

• 🔓 Claude Code vulnerability persists after token rotation: New proof-of-concept shows how malicious npm package hijacks credentials stored in ~/.claude.json config file, capturing fresh tokens even after rotation because proxy remains in authorization loop. FULL STORY

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The Money: Drug design becomes an AI discipline

Two billion-dollar bets this week signal a shift: AI is no longer assisting drug discovery—it's redefining it as an engineering problem. Investors are backing platforms that treat biology like code, betting AI can compress decades of pharma R&D into quarters.

Deals to know:

• Isomorphic Labs (Series B, $2.1B) -- AI-first drug design engine hit key milestones across internal programs, proving repeatable candidate identification. Partnerships with Novartis, Lilly, J&J validate commercial model. Investors: Thrive Capital, Alphabet, GV, MGX, Temasek, CapitalG, UK Sovereign AI Fund

• Recursive Superintelligence (Seed/Series A, $650M) -- Self-improving AI systems for drug discovery, exited stealth at $4.65B valuation. Team includes ex-Salesforce chief scientist, Google DeepMind, Meta, OpenAI talent. Investors: GV, Greycroft, Nvidia, AMD

Signal: Traditional pharma timelines are the new target. Capital follows platforms that can prove AI drug design works at scale—not just in research papers.

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Until next time, Arturo and Liam.

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