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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. 📈 Increase your productivity by 10x with Outskill
• 2. 🏛️ Feds move to ax state AI laws
• 3. 💼 Your Business Briefing
• 4. 💻 Get rid of your personal data from Google with Incogni
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin

Are you ready to launch AI transformation for your company?

TOGETHER WITH OUTSKILL

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Latest in AI

Feds move to ax state AI laws

🚨 Our Report

The White House has released "A National Policy Framework for Artificial Intelligence," a seven-chapter set of legislative recommendations urging Congress to establish a single federal standard for AI governance and override state-level AI regulations that it calls "undue burdens" on innovation.

🔓 Key Points

• The framework calls for federal preemption of state AI development laws, arguing AI is "an inherently interstate phenomenon with foreign policy and national security implications."

• On copyright, the administration believes training AI on copyrighted material does not violate copyright law, but recommends Congress let courts resolve the fair use question rather than legislating on it directly.

• The White House explicitly advises Congress not to create any new federal rulemaking body to regulate AI, instead directing oversight to existing sector-specific regulators with subject matter expertise.

🔐 Relevance

For enterprise leaders, this framework points toward unified national compliance instead of managing 50 different state regimes. Companies operating AI-powered tools across multiple states may see reduced regulatory complexity if Congress acts on the preemption recommendations. The explicit stance against a new federal AI agency suggests existing regulators like the FTC and SEC will remain the primary enforcement bodies for their respective sectors.

The AI Report Podcast

How UserTesting Got 70% of Employees Using AI Weekly | Michael Domanic, UserTesting

THE BUSINESS BRIEFING: SALES (powered by Upscaile)

Guide (early-stage recruiting tech) faced a founder-led sales bottleneck: CEO Troy Sultan was drowning in manual prospecting and LinkedIn research while also managing an active pipeline and product development. Outsourced SDRs delivered lackluster results.

Tool used: Amplemarket Duo -- AI sales agent that captures buying signals and generates personalized email, social, and call sequences across multiple channels.

Result: 3x reply rates on Duo-sourced leads, 2+ hours saved per week on prospecting, and consistent outbound activity that "otherwise wouldn't be happening" according to Troy. Higher open and interest rates across Duo sequences.

The lesson: Founder bandwidth always favors active deals over prospecting. Duo kept outbound moving during peak pipeline periods by automating signal capture and draft creation—removing the "overthinking" trap that kills cold outreach momentum.

Steal this: Audit your CRM for closed-lost opportunities marked "circle back in Q2" or similar. Feed those into an AI copilot with context (original objection, timeline, champion name) and set up auto-draft reactivation sequences. Reactivating warm leads beats cold prospecting every time.

TOGETHER WITH INCOGNI

Unknown number calling? It’s not random…

The BBC caught scam call center workers on hidden cameras as they laughed at the people they were tricking. One worker bragged about making $250k from victims.

The disturbing truth?

Scammers don’t pick phone numbers at random. They buy your data from brokers. Once your data is out there, it’s not just calls. It’s phishing, impersonation, and identity theft.

That’s why we recommend Incogni: They delete your info from the web, monitor and follow up automatically, and continue to erase data as new risks appear. 

Get 58% off Annual plans this tax season! Use code: AIREPORT

THE POLICY CORNER

The Equal Employment Opportunity Commission now actively investigates algorithmic hiring platforms for age, race, and disability bias. Multiple lawsuits target employers and vendors simultaneously, with plaintiffs arguing automated candidate scoring produces disparate impact against protected groups. Enforcement covers resume screeners, video interview analysis, and applicant ranking systems used for any US-based role.

Deadline: In effect now. Active litigation includes class actions and administrative complaints filed in 2025–2026.

Your move: Document validation studies for every AI hiring feature showing job relevance and business necessity. Demand vendor audit reports covering training data, selection ratios, and adverse impact testing. Provide candidates with notice of algorithmic assessments and a human review pathway.

AI News

• 🔧 OpenAI acquires Astral to accelerate Codex growth: Brings open source Python tools (uv, Ruff, ty) into its developer ecosystem, integrating them with Codex to enable AI agents to work across the full development workflow. FULL STORY

• 🏭 Elon Musk unveils TERAFAB, a $25B Tesla-SpaceX-xAI chip factory: Joint venture targets 1 terawatt of annual computing power, with 80% directed toward space-based orbital AI satellites powered by constant solar energy. FULL STORY

• 💻 Amazon's Trainium chip wins over Anthropic, OpenAI, and Apple: AWS commits 2 gigawatts of Trainium capacity to OpenAI, with over 1 million Trainium2 chips already powering Claude and costing up to 50% less than comparable cloud servers. FULL STORY

• 📊 LinkedIn replaces five feed systems with one LLM model at 1.3B-user scale: New architecture uses LLMs to understand professional context and match content to members' actual behavior, reducing infrastructure costs across the platform. FULL STORY

Trending AI Tools (The Full 2026 Tool Stack PDF Included Here)

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

1. Chatnode is for building custom, advanced AI chatbots that enhance customer support and user engagement ⭐️⭐️⭐️⭐️⭐️ (Product Hunt)

2. Audiotype converts audio and video files into accurate text across 36+ languages

3. Sneos is a platform for comparing AI responses from multiple models simultaneously

⚡️ Looking for the exact AI tools our team uses to run The AI Report?

We just launched the 2026 AI Tool Stack…

The Money: AI infrastructure bets shift toward biology

Compute investments dominated 2024–25, but the largest AI deals this week targeted wet-lab applications and therapeutic R&D. With model performance plateauing and enterprise buyers demanding ROI, investors are reallocating capital toward AI tools that produce measurable clinical or commercial outcomes.

Deals to know:

• Earendil Labs (Growth, $787M) -- AI-driven biologics discovery with 40+ programs in pipeline, Phase 2-ready lead asset. Investors: Dimension Capital, DST Global, Sanofi, Pfizer-Hillhouse Biotech Fund

• Coatue Management (Fund Launch, ~$8B target) -- New crossover fund targeting AI and tech innovation across public and private markets. Anchor LPs: Bezos Expeditions, MSD Capital

Signal: Capital is migrating from AI-for-AI toward AI-for-outcomes. Biologics discovery produces patents, regulatory milestones, and partnership revenue that venture economics can model. Expect life sciences AI to command premium multiples through late 2026.

Refer a Friend

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Until next time, Arturo and Liam.

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