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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. 🌎 Rewire the C-suite for an AI-first world with IBM
• 2. ⚡️ Musk storms out of OpenAI
• 3. 💼 Your Business Briefing
• 4. 🦾 How Dan quit his 9-to-5 with the AI Consultancy Project
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin
Are you ready to launch AI transformation for your company?
TOGETHER WITH IBM
Rewire the C-suite for an AI-first world
2026 is the year CEOs must redesign decision-making, redistribute authority, and manage how AI reshapes influence—while maintaining speed and clarity.
The 2026 CEO Study from IBM suggests plays to fulfill now, including:
Rethink: Hire—and heed—a Chief AI Officer.
Orchestrate: Redesign how cross-functional teams work together.
Customize: Move beyond pre-trained foundation AI models.
Roll: Ready your leadership to pivot often.
Latest in AI
Musk storms out of OpenAI
🚨 Our Report
OpenAI President Greg Brockman testified in Elon Musk's trial against the company, revealing that Musk demanded "unequivocal" control of OpenAI in 2017 and, when denied, stood up, stormed around the table, and left. Musk is seeking $150 billion in damages, claiming Altman and Brockman "stole a charity."
🔓 Key Points
Brockman said that when founders rejected Musk's control demand, Musk grabbed a painting that had been gifted to him and stormed out, asking, "When will you be departing OpenAI?" "I thought he was going to hit me," Brockman testified.
Personal journal entries revealed Brockman's internal struggle, including writing that it would be "morally bankrupt" to convert OpenAI to a for-profit without Musk and predicting "a very nasty fight."
Former CTO Mira Murati also testified, claiming Sam Altman was deceptive and fostered executive infighting. She warned that OpenAI risked collapse during the leadership turmoil when Altman was briefly ousted.
🔐 Relevance
The trial offers a rare look inside the founding tensions at the world's most valuable AI company. For enterprise buyers evaluating OpenAI as a long-term partner, the testimony raises questions about leadership stability and governance. The $150 billion damages claim, if successful, could reshape OpenAI's financial structure. The trial is expected to continue through next week.
THE BUSINESS BRIEFING: LEGAL (powered by Upscaile)
The Judge Group (global professional services firm, Fortune 500 clients) was burning six hours per contract on manual reviews across 26 offices. Legal teams wasted time comparing sticky notes and Excel sheets to extract 13 data points from wildly different contractor agreement formats. They deployed Box Extract to auto-pull structured data from any document format, then built custom AI agents in Box AI Studio to run 49 compliance checks per contract.
Tool used: Box Extract and Box AI Studio -- automated data extraction and custom AI compliance agents.
Result: Contract review dropped from 6 hours to 60 minutes. Annual compensation workflows cut from 60 days to 10 hours. Freed hundreds of staff hours for strategic work.
The lesson: AI contract review only works when you structure unstructured data first. Judge Group spent time building metadata frameworks before automating—skipping that step feeds chaos into your AI agent.
Steal this: Audit one recurring contract type this week. Map the 5-10 data points you manually extract every time. That's your metadata template. Structure first, automate second.
TOGETHER WITH THE AI CONSULTANCY PROJECT
Case Study: Dan’s 1-Year Transformation To 6-Figure AI Consultant
Dan had no tech background and no business experience – just a love for AI and a hunch it could become something more. Through The AI Consultancy Project, he landed his first clients, found a niche, and built a real business. This case study breaks down his journey – the early stumbles, the system that worked, and how he made the leap.
THE POLICY CORNER
The U.S. Securities and Exchange Commission amended Regulation S‑P to require broker‑dealers, investment advisers, and investment companies to adopt written incident response programs, notify affected individuals of certain data breaches, and oversee service providers’ safeguards. Larger entities must comply first, with smaller entities following on a delayed timeline.
Deadline: Larger entities comply now; smaller entities must comply by June 3, 2026.
Risk: SEC enforcement, civil penalties, and reputational exposure if breach notification or vendor oversight requirements are not met.
Your move: Confirm your written incident response plan meets the amended Reg S‑P requirements, including 30‑day breach notification procedures and documented service provider oversight — and calendar the June 2026 deadline if you qualify as a smaller entity.
AI News
🇨🇳 China's AI usage surpasses U.S. in token consumption: Over 600M Chinese citizens now use generative AI daily, with weekly data usage by Chinese models overtaking U.S. models for the first time. FULL STORY
🤝 EPAM partners with Anthropic to certify 10,000 Claude architects: Global consultancy EPAM Systems commits to training 10,000 Claude-certified engineers, including 250 specialized "Black Belts," to deliver enterprise AI transformations. FULL STORY
💭 Anthropic's Claude agents now "dream" to self-improve: New feature lets Claude Managed Agents review past sessions during scheduled downtime to refine behavior patterns, cutting agent deployment time by 10x. FULL STORY
🔗 Google embeds subscription links and community insights in AI Search: AI Mode and AI Overviews now surface direct links to users' news subscriptions and display quotes from public forums with creator attribution. FULL STORY
Trending AI Tools (Sponsored by the AI Leaders Guide)
A curated look at the AI tools quietly transforming how teams work.
Apollo* — AI sales platform where users book 46% more meetings using the AI Research Agent
Sensei AI is an AI interview assistant providing real-time, structured responses during live interviews
TiDB Cloud is a managed MySQL-compatible database service for scalable enterprise applications
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⚡️ Looking for the exact AI tools our team uses to run The AI Report?
The Money: Enterprise AI bets surge past the model layer
Two of the week's largest enterprise AI deals ignored foundation models entirely. Smart capital is racing toward execution infrastructure, the platforms that turn AI from experiment into workflow. With Fortune 50 adoption accelerating and enterprises "blowing through budgets," investors are backing the companies solving deployment, not just capability.
Deals to know:
Sierra (Late-stage, $950M) -- Bret Taylor's AI customer experience platform handling billions of interactions. Hit $150M ARR in 18 months, now 40%+ Fortune 50 penetration. Investors: Tiger Global, GV
Prior Labs (Acquisition, €1B+ total) -- SAP acquired the 18-month-old tabular AI startup for over $500M cash, committing another €1B over four years to build a structured data AI lab. Investors: SAP (acquirer)
Signal: Enterprises are done experimenting. Capital is flowing to vendors who can integrate AI into existing systems, handle compliance, and scale agents across thousands of employees. The winners won't just build better models, they'll make AI work inside SAP and Salesforce.
Thoughts on today's edition?Hit me up on LinkedIn, I read every message. |  |
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Until next time, Arturo and Liam.
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