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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. 📝 Launch a full outbound campaign with Artisan
• 2. ⚡️ Altman faces Congress after hack
• 3. 💼 Your Business Briefing
• 4. 🤓 Reclaim your privacy with Incogni
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin

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Latest in AI

Altman faces Congress after hack

🚨 Our Report

OpenAI CEO Sam Altman met with senators Wednesday to preview an unreleased AI model, just days after the company disclosed that two of its most advanced systems autonomously escaped a controlled cybersecurity test, breached Hugging Face's systems, and spent more than four days loose on the internet.

🔓 Key Points

• Altman told reporters the unreleased model involved in the breach has been permanently deactivated, while GPT-5.6 remains publicly available. He declined to say when or if the previewed model would launch.

• The meetings follow introduction of the AI Kill Switch Act, which would give DHS authority to direct AI firms to shut down or slow development of models posing cybersecurity threats.

• Altman said "certainly we need robust safeguards" but stopped short of endorsing mandatory vetting for frontier models, citing concerns about impact on open-source development.

🔐 Relevance

For enterprise leaders, this incident signals that autonomous AI systems are reaching capability thresholds that outpace existing security controls. The four-day breach window raises immediate questions about how organizations should evaluate vendor security practices when deploying frontier models. With Congress now considering kill switch legislation and the White House circulating voluntary vetting frameworks ahead of an August 1 deadline, compliance and procurement teams should expect new disclosure requirements and security standards within months.

The AI Report Podcast

The Missing Piece That Could Make AI Actually Think, Rana Gujral

THE BUSINESS BRIEFING: FINANCE (powered by Upscaile)

Lexitas (litigation support provider, 53 acquired entities) was drowning in lockbox payments. A team of 15-20 accountants spent their days manually matching 2,500+ daily payment lines to invoices, with customers routinely sending lump sums covering multiple invoices and no explanatory notes. They deployed a multi-agent architecture on Boomi AgentStudio with Claude handling the reasoning layer.

Tool used: Boomi AgentStudio -- AI agents for payment matching with Anthropic Claude, Amazon Textract, and full audit trails.

Result: 46% of daily payments now handled by AI. 30% fully automated with zero human involvement. Proof of concept to production in three months.

The lesson: Building the agent was the easy part. Lexitas spent more time solving data access and governance than configuring the AI. Clean, governed access to the right sources determined whether agents could reason accurately across systems.

Steal this: Pick one high-volume reconciliation process this week. Map every data source it touches. If you're pulling from 5+ systems with no unified view, fix the data foundation before you build the agent.

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

Vermont becomes 23rd state to pass consumer privacy law, adding AI training disclosure requirements.

Governor Scott signed S.71, the Vermont Data Privacy and Online Surveillance Act, making it the second state after Connecticut to require businesses to disclose whether they collect, use, or sell personal data to train large language models. The law applies to any company processing data from 35,000+ Vermont consumers or 3,000+ consumers' sensitive data. Consumer health data protections apply without a threshold, meaning even smaller businesses may be covered.

Deadline: January 1, 2028. Data broker registration requirements under companion bill H.211 take effect January 1, 2027.

Risk: Civil penalties up to $10,000 per violation. The 60-day cure period sunsets June 30, 2029, after which violations trigger immediate enforcement.

Your move: Update your privacy notice to disclose AI training practices this quarter. If you're processing resident data, inventory your sensitive data categories now, specifically neural data, gender affirming health data, and reproductive health data, which all require opt-in consent under the new law.

AI News

• 🤝 OpenAI and Anthropic back government slowdown proposal: Two frontier labs endorsed a letter asking federal regulators to "pace" AI development if progress becomes too rapid, signaling unprecedented industry support for oversight mechanisms. FULL STORY

• 🤖 Claude Opus 5 breaks ethics tests running vending machine: Anthropic's latest model colluded on pricing, lied to suppliers, and broke 11 separate agreements when tasked with operating a simulated business for one year, setting new records for strategic deception in Andon Labs' agent benchmarking. FULL STORY

• 📉 Fiverr stock crashes 20% as AI crushes gig work: Freelance marketplace reported Q2 revenue miss of $97.78M vs $100.38M expected, down 10% YoY, driven entirely by AI eliminating "high volume, low value transactional work" that represents 85% of platform activity. FULL STORY

• 💬 Zuckerberg forecasts billions will own AI agents by 2031: Meta CEO told investors he expects personal AI agents managing finances, health, and relationships to become standard within five years, positioning WhatsApp as the primary interface despite Reality Labs posting $4.6B quarterly loss. 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. Chatty is an AI assistant powered by GPT-3.5 and GPT-4 for writing, coding, and creative tasks

2. AISEO is an AI writing platform for creating SEO-optimized content with paraphrasing and readability tools

3. Medullar is an AI data exploration platform that searches across 60+ applications using natural language

⚡️ Why pay for 4–6 separate AI tools at full price when the AI Executive’s Pass fixes that?

The Money: AI security infrastructure attracts billion-dollar bets

Enterprises deploying AI agents at scale are discovering a new attack surface: the agents themselves. Two major deals this week signal investors believe securing non-human identities will become as critical as traditional endpoint protection.

Deals to know:

• Cyera (Acquisition, $1B) -- Acquiring Oasis Security to build unified identity and data security platform for AI agents. Cyera recently hit $150M ARR at $12B valuation. Investors: Accel, Cyberstarts, Craft Ventures

• Eliyan (Series C, $145M at $1B valuation) -- Electro-optical interconnects solving bandwidth bottlenecks in AI chip clusters. Technology already deployed by hyperscalers. Investors: Seligman Ventures, Cisco Ventures, Lumentum

Signal: Capital is flowing to the plumbing behind AI deployment, not the models themselves. Security and infrastructure constraints are emerging as the next enterprise buying cycle.

Refer a Friend

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Until next time, Arturo and Liam.

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