Welcome back, AI’ers!

Here’s What’s On The Menu For Today

• Samsung's tiny model challenges GPT-4

• Fears of an AI bubble burst grow

• Google’s new enterprise AI agents

• How 41% of bosses are cutting jobs

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TODAY’S TOP STORIES

Samsung's Tiny AI Revolution

The Recap: A new 7M-parameter model from Samsung researchers is challenging the AI industry’s “bigger is better” mantra. The Tiny Recursion Model reportedly outperforms giants like GPT-4 on complex reasoning tasks.

Unpacked:

• With just 7 million parameters, the model is a fraction of the size of giants like GPT-4, which is estimated to have over a trillion parameters.

• The model achieves its impressive reasoning ability through a process of iterative self-improvement, allowing it to refine its answers over multiple cycles.

• It was developed by Samsung researcher Alexia Jolicoeur-Martineau, pushing the boundaries of what small-scale neural networks can accomplish.

Bottom line: This development proves that raw size is not the only path to creating powerful AI. It opens the door for highly capable models to run on smaller, more accessible hardware in the near future.

 Is The AI Bubble About To Burst?

The Recap: The Bank of England and the IMF are sounding the alarm, warning that sky-high valuations in AI are creating bubble-like conditions reminiscent of the dot-com era.

Unpacked:

• Analysts point to “circular” investments as a major red flag, where a company invests billions in a startup that then uses the funds to buy the investor's own products.

• The disconnect between value and profit is stark, with OpenAI hitting a $500 billion valuation while reportedly projecting its losses will triple to $14 billion by 2026.

• The promised productivity gains have yet to appear for most, with one MIT study finding that 95 percent of organizations saw zero return from their AI initiatives.

Bottom line: A market correction could be painful for investors in the short term. Like the dot-com bust, however, the foundational infrastructure built during this boom will likely survive to power the next wave of innovation.

MY FAVORITE AI TOOLS

Relevance is my favorite AI tool right now (even more so than N8N).

Here’s why:

It’s an AI agent building tool that doesn’t require you to build out the logic using nodes. Instead, you use natural language to build out these agents. But the best thing imo is that you can build AI Agent teams.

Like agents talking to each other completing a goal until its done. It’s nuts. No other tool on the market is doing this. You have to check it out.

(Try it out →Link)

👾 AI Tools We Use Everyday

➡️ N8N for AI Agents - Literally use this everyday to write this newsletter (link)

➡️ Axiom AI - AI Browser automation to scrape anything on the web (link)

➡️ GummySearch - AI Reddit research (link)

Tools are sourced from our database and are not sponsored or affiliated.

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MORE NEWS

Google Challenges Enterprise AI with Custom Agents

The Recap: Google is launching Gemini Enterprise, a new subscription that allows businesses to build and deploy their own custom AI agents. The $30 per month service directly challenges rivals by bundling Google's latest models with powerful creation tools.

Unpacked:

•  It offers no-code and low-code tools so companies can create custom agents for specific internal tasks without needing a team of developers.

• The platform includes pre-built agents for roles like coding and customer engagement and works within competitor ecosystems like Microsoft 365 and Salesforce.

• Early customers are already seeing results, with Virgin Voyages reporting a 28% sales boost after implementing a custom email marketing agent.

Bottom line: Google is making a clear push to move AI tools from the hands of specialized developers into everyday business workflows. By offering a comprehensive suite of models and tools, the company is positioning itself as the go-to platform for corporate AI adoption.

AI Sparks 'Job-pocalypse' Fears

The Recap: A new global study from the British Standards Institution reveals 41% of business leaders are already using AI to reduce headcount. This shift prioritizes automation over hiring for entry-level positions, creating a challenging environment for new entrants to the workforce.

Unpacked:

• A significant shift in hiring strategy is underway, with nearly one-third of organizations now considering AI solutions first before looking to hire a person.

• The impact is most visible at the start of careers, as 39% of leaders report that entry-level roles have already been reduced or eliminated due to AI-driven efficiencies.

• Despite the cuts, over half of business leaders believe the long-term benefits of AI implementation will ultimately outweigh the disruption to the workforce.

Bottom line: The data confirms that AI is not a future threat to jobs but a present-day reality actively reshaping hiring practices. This trend places a new premium on upskilling as businesses aggressively pursue automation for cost and efficiency gains.

OTHER NEWS YOU MAY LIKE

Microsoft seeks to license information from Harvard Medical School for its upcoming Copilot update, aiming to boost its medical AI capabilities and reduce its dependence on OpenAI.

McKinsey reported that a key challenge for AI software monetization is the difficulty in showing quantifiable ROI, as many customers face higher IT costs without being able to reduce headcount.

A new study found that while Americans support automating 30% of occupations, that number nearly doubles if AI outperforms humans at a lower cost, though jobs like clergy and therapists are considered "morally repugnant" to automate.

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THAT’S IT FOR TODAY

Until next time, stay safe.

-Best of AI Team

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