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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. ⚡️ NY halts hyperscale data centers
• 3. 💼 Your Business Briefing
• 4. 🕵️‍♂️ Protect your personal data with Incogni
• 5. 🤝 The Human & AI De Brief with Marie-Lou
• 6. ✍️ Today’s Policy Corner
• 7. 🗞️ 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

NY halts hyperscale data centers

🚨 Our Report

New York Governor Kathy Hochul signed an Executive Order creating the nation's first statewide moratorium on new hyperscale data centers. The one-year pause on state environmental permits will allow regulators to build a framework protecting ratepayers, the grid, and communities from unchecked AI infrastructure expansion.

🔓 Key Points

• The moratorium blocks new discretionary permits while the Department of Public Service develops a Generic Environmental Impact Statement assessing energy demand, water use, and air quality impacts of data center operations.

• Governor Hochul is directing regulators to consider a New York Grid Acceleration Fund that would require data centers to invest in aging grid infrastructure and fund dedicated clean energy generation for their operations.

• The state will also pursue legislation to repeal sales tax exemptions for massive data centers and issue a Community Investment Framework within 60 days to help localities negotiate benefits from large-scale deals.

🔐 Relevance

For enterprise leaders planning AI infrastructure investments, New York just became a harder market to enter. The moratorium signals a potential regulatory template other states may follow as power-hungry AI workloads strain local grids and drive up utility costs for residents. Companies eyeing Northeast expansion will need to factor in longer permitting timelines, mandatory community benefit agreements, and the possibility that cheap energy subsidies are ending. This also adds pressure to the already constrained data center supply chain serving the AI buildout.

The AI Report Podcast

Why AI Adoption Fails Most Companies | Scott Likens, Global Chief AI Engineer, PwC

THE BUSINESS BRIEFING: MARKETING (powered by Upscaile)

JAKALA (European data and AI company, 3,600 employees across 30+ countries) had senior planners spending 40-60% of their weeks pulling data from 8-12 systems, hand-consolidating reports in BI tools, and building scenario decks. Campaign optimization cycles dragged to 5-7 working days per iteration. They deployed Claude Agent SDK to build specialized Performance Agents for search, programmatic, social, and creative channels, connecting via MCP to client ad accounts and JAKALA's geo-intelligence engine.

Tool used: Claude Agent SDK -- specialized agents for campaign intelligence that reason across combined data and propose optimization actions for human review.

Result: Campaign cycles compressed from 5-7 days to under 24 hours. Senior delivery teams redirected 70% of time from data assembly to strategic client work. Client satisfaction scores rose 35-40%.

The lesson: The heaviest Claude users turned out to be directors and partners, not junior staff. The agents absorbed assembly work, concentrating value where senior expertise matters most. First production agent took a full quarter to go live; by the fifth, the team had a repeatable pattern shipping new agents in weeks.

Steal this: Map one recurring campaign workflow where your team spends hours pulling data from multiple platforms before analysis begins. Identify which steps require human judgment versus mechanical consolidation. Start with a single channel (search or social) and build the data connection layer before layering AI reasoning on top.

📚 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 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 HUMAN & AI DE BRIEF

Did We Disappear Into the Tool?

A founder is reviewing twelve pieces her team produced last week. Clean structure. Correct vocabulary. And something she can’t quite name — a low hum underneath the volume, like the work is coming from everywhere and nowhere at once. She’s already imagining what her community will feel. Whether they’ll ask, was this made with care? Was I respected? Am I being manipulated at scale? The answer has nothing to do with which tool was in the room — and everything to do with a question AI just made impossible to ignore.

THE POLICY CORNER

Illinois becomes first US state to mandate annual AI safety audits for frontier developers.

Gov. JB Pritzker signed the Artificial Intelligence Safety Measures Act, requiring companies with over $500 million in annual revenue (OpenAI, Anthropic, Google, Meta, xAI) to undergo yearly third-party safety reviews. Covered developers must publish risk frameworks, report critical safety incidents within 72 hours, and disclose incidents posing imminent threat to life within 24 hours.

Deadline: In effect now. Annual audits required going forward.

Risk: Civil penalties up to $1 million for first violation, $3 million for subsequent violations. Illinois attorney general has enforcement authority.

Your move: If your company develops or deploys frontier AI systems, confirm whether you meet the $500M revenue threshold. If yes, engage qualified independent auditors and establish incident reporting protocols before your first compliance deadline.

AI News

• ⚖️ OpenAI denies Apple trade secret claims: The company said it is “not aware of any evidence” supporting Apple’s 41-page lawsuit alleging former Apple engineers took confidential hardware IP. FULL STORY

• 🔊 OpenAI plans screen-free ChatGPT smart speaker: Bloomberg reports a 2027 launch for a portable, camera-equipped device using GPT-Live voice and “mechanical elements that can move on their own” FULL STORY

• 🛡️ White House launches ‘Gold Eagle’ AI cyber clearinghouse: The initiative consolidates vulnerability reports across agencies and critical infrastructure under a June 2 executive order. FULL STORY

• 🍎 Anthropic unveils Claude for Teachers: Verified U.S. K-12 educators get free premium access with standards-aligned lesson planning across all 50 states and FERPA-compliant data terms. 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. Gamma* — Create stunning presentations and websites from a single prompt, no design skills required

2. Day One Careers is an AI-driven Amazon interview coaching and career preparation platform.

3. Free Network Monitor is an AI-powered network monitoring and automated security testing solution.

^{*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: Open-weight AI labs and video generation race for scale

Capital is flowing to companies positioning themselves outside the closed-model oligopoly. Two massive deals this week signal investor confidence in alternatives to OpenAI and Anthropic: open-weight model developers securing compute infrastructure and video-generation startups crossing the $2B valuation threshold. For enterprise buyers, this means more leverage and more options as the AI vendor landscape fragments.

Deals to know:

• Reflection AI (Compute deal, $1B) -- Open-weight model developer locks in Nvidia's latest chips through Nebius. Valued at $8B, follows recent SpaceX compute partnership. Investors: Nvidia, Sequoia Capital, Lightspeed Venture Partners

• PixVerse (Series C extension, $439M at $2B+ valuation) -- Video-generation platform with 150M registered users expands world model offering. Investors: Alibaba, CDH Investments, Mirae Asset, OCBC Lion X Ventures

Signal: After Trump administration pressure on closed-model providers and OpenAI's Sora shutdown, capital is hedging toward open alternatives and specialized media generation. Enterprises worried about model access restrictions now have funded alternatives to watch.

Refer a Friend

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Until next time, Arturo and Liam.

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