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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. 👯 Build your own AI coworkers with Outskill
• 2. ⚡️ChatGPT faces tougher EU rules
• 3. 💼 Your Business Briefing
• 4. 🕵️‍♂️ Get matched to jobs or candidates with Jack and Jill
• 5. ✍️ Today’s Policy Corner
• 6. 🗞️ The News Bulletin

Are you ready to launch AI transformation for your company?

TOGETHER WITH INNOVATING WITH AI

Master the 15+ AI Tools That Actually Matter (Live This Saturday)

205,000 jobs were cut this year with AI cited as a reason. The people who stayed had one thing in common.

They knew which tool to use for what.

And the numbers back it up. AI-attributed layoffs through August 2026 have already matched the entire 2025 total in under eight months. In March and April, AI was the single most-cited reason for corporate job cuts. First time a technology has ever topped that list.

But here's the other half of the story: workers with AI skills are earning a 62% wage premium this year, and jobs requiring those skills are growing about eight times faster than the market overall. More than half of those postings aren't even in tech. They're in marketing, HR, ops, sales and finance.

So the split isn't people versus AI. It's people who use it well versus people who don't. And right now that gap is only getting wider.

That's what this 3-Hour AI Tools Workshop fixes. Live session, the 15 most powerful AI tools of 2026, and exactly which one to reach for depending on the job: research, writing, design, data, code, automation. Plus how to build your own AI co-worker that keeps working while you're asleep.

You'll walk out knowing how to:

• Pick the right tool for the right job instead of using one app for everything

• Turn AI into a research engine that does the reading for you

• Build apps and dashboards with zero coding

• Wire tools together so the repetitive work runs itself

And it doesn't end at 3 hours. There's a bonus follow-up session included, going deeper on the workflows most worth stealing.

🗓️ This Saturday, 10 AM EST 🕐 3 hours live + bonus sessions 💸 Worth $395. Free for readers.

Latest in AI

ChatGPT faces tougher EU rules

🚨 Our Report

The European Commission has designated ChatGPT as a "very large" online platform under the Digital Services Act (DSA), making OpenAI's chatbot the first AI system subject to the EU's strictest content and safety regulations.

🔓 Key Points

• ChatGPT reported 159 million monthly active users in the EU, crossing the 45 million threshold that triggers enhanced oversight. The commission classified it as a search engine to bring it under DSA jurisdiction.

• OpenAI now has four months to comply with obligations including risk assessments for illegal content, electoral interference, and negative effects on minors' mental health.

• Reddit and gaming platform Roblox were also designated, with Roblox's 46.6 million EU users raising concerns given its popularity with children and immersive design.

🔐 Relevance

For enterprise leaders deploying ChatGPT across European operations, this changes the compliance landscape. OpenAI must now layer DSA transparency and risk-mitigation requirements on top of existing AI Act obligations, potentially affecting how the platform handles content moderation, data practices, and algorithmic recommendations. Companies building on ChatGPT's API should monitor how OpenAI responds, as changes could ripple into enterprise integrations. Violations carry fines up to six percent of global revenue.

The AI Report Podcast

How AI Agents Are Becoming the New Front Door to Shopping | Andrew McNamara, VP, Applied ML, Shopify

THE BUSINESS BRIEFING: MARKETING (powered by Upscaile)

Brooks Running (heritage athletic brand, 110+ years in market) was stuck with one photograph of one shoe in one colorway carrying all their ad weight across every audience and channel. Creative testing was impossible. They deployed Adora's AI platform to generate on-brand ad variations at scale, then fed performance data back into live campaigns for real-time iteration.

Tool used: Adora -- AI-powered creative generation with built-in performance intelligence for brand advertisers.

Result: 107% increase in ROAS year over year. 53% drop in cost per acquisition. $1.8 million in incremental revenue on a flat budget. Over 1,500 ad variations generated across 40 products.

The lesson: Volume without testing discipline is just noise. Brooks tested specific variables systematically: gym backgrounds versus other environments, one-shoe versus two-shoe compositions, off-foot product shots. That structure turned 1,500 variations into actionable insights instead of chaos.

Steal this: Pick your top-performing product this week. Generate 5-10 variations of one variable only (background, angle, or composition). Run them for 72 hours with equal budget splits. Kill the bottom performers, scale the winner. Repeat weekly until you've isolated what actually drives clicks for that product.

TOGETHER WITH JACK AND JILL

Meet Jack and Jill.

Jack is a free AI agent that gives unimaginably good support as you take the next step in your career. Jill is an AI agent that hires for your company.

Jack and Jill have thousands of conversations every day, making thoughtful introductions when there is a match between companies and professionals.

Get direct introductions to jobs for free. /jack

Get direct introductions to remarkable talent for free. Only pay if you successfully hire. /jill

THE POLICY CORNER

FTC cracks down on facial recognition data sharing for AI training—settles with Match Group over undisclosed transfers.

The FTC settled with Match Group and OkCupid after alleging the dating platform shared nearly three million user photos with a third-party facial recognition company for AI model training without user consent or disclosure. The agency framed the conduct as both deceptive and unfair under Section 5, emphasizing that even lawfully collected data triggers liability when repurposed beyond disclosed uses. The settlement prohibits misrepresentations about biometric data collection, use, or sharing, and imposes ongoing compliance and reporting requirements.

Deadline: In effect now.

Risk: No monetary penalty in this case, but opens the door to state unfair trade practices claims and privacy class actions. Companies sharing user data for AI training face FTC scrutiny regardless of whether their state regulates biometrics.

Your move: Audit your data sharing agreements this week. If any third party receives user photos or biometric identifiers for AI development, verify your privacy policy explicitly discloses that use. If it doesn't, fix the disclosure or terminate the arrangement.

AI News

• 🎖️ Pentagon launches ChatGPT Mil and Grok for Government: 3 million DoD personnel now have access to secure, military-tailored versions of OpenAI and xAI tools through GenAI.mil, with 1.7 million already onboarded. FULL STORY

• 📸 Instagram limits reach of undisclosed AI profiles: Platform will penalize creators who don't label AI-generated profile subjects, responding to user complaints about deceptive synthetic personas. FULL STORY

• 🎵 Sony Music and Warner sue Anthropic over training data: Publishers allege "brazen campaign" of illegal torrenting and scraping to obtain copyrighted lyrics and sheet music for Claude. FULL STORY

• 🍎 Apple alleges ex-employee used confidential schematics at OpenAI: New court filings claim Chang Liu deployed Apple circuit designs in OpenAI work and enlisted a colleague to destroy evidence. 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. Kit* — 600K+ creators. 2.5B emails monthly. 99.8% deliverability. The newsletter OS for creators.

2. Exa is a web search API and AI researcher that gathers real-time information for enterprise data needs

3. Nooks AI is an advanced sales assistant platform for dialing, coaching, and prospecting

^{*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: Big Tech locks down AI infrastructure through equity entanglements

The largest AI capital moves this week weren't about models or chips alone. They were about owning the physical layer. SoftBank is dangling $5.5 billion in stock warrants to keep OpenAI committed to its data center empire, while Nvidia invested $3.5 billion in MediaTek to ensure custom silicon stays plugged into its ecosystem. The pattern: infrastructure owners are using equity to create financial interdependence that lasts decades.

Deals to know:

• SB Energy / OpenAI (Pre-IPO warrants, $5.5B) -- Stock warrants offered to OpenAI ahead of SB Energy's $5B-$7B IPO to lock in 20-year lease commitments for 10 GW Ohio data center campus. Investors: SoftBank, OpenAI, Nvidia

• Nvidia / MediaTek (Strategic investment, $3.5B) -- MediaTek gains NVLink Fusion access to build custom chips that integrate with Nvidia data center architecture; expects $2B in custom ASIC revenue in 2026. Investors: Nvidia

Signal: Smart money is shifting from building infrastructure to owning the financial relationships around it. Expect more equity-for-commitment deals as compute demand outpaces supply through 2028.

Refer a Friend

Latest episode: How AI Agents Are Becoming the New Front Door to Shopping → Listen here
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Until next time, Arturo and Liam.

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