Digest 6 min read Free

Daily Digest - 2026-05-12

1. If you’re stuck on expensive models, evals are how you break free — Aparna Dhinakaran * Why read: How to handle the inference compute crunch by using evaluations to route tasks to cheaper, smaller models. * Summary: Frontier AI labs are hitting compute limits, stalling price drops and increasing rate limits.
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Seven Powers in the AI Era — Series Index

Index for the Seven Powers in the AI Era series.
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Seven Powers in the AI Era Series #10: A Practical AI Power Audit

Most AI strategy work should be less theatrical. You do not need a manifesto to start. You need a sober inventory of where AI changes your economics, customer behavior, and competitive exposure. The point is not to declare that you have a moat. The point is to find where power
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Seven Powers in the AI Era Series #9: Fake Moats AI Will Expose

AI will not only create new advantages. It will expose fake ones. That may be the more useful lens for operators. Before asking what AI lets you build, ask which profits were quietly protected by friction, confusion, slow competitors, or customers who had no better option. A fake moat can
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Seven Powers in the AI Era Series #8: Process Power: The Moat Hiding in How the Work Gets Done

Process power is the least glamorous of the Seven Powers and probably the most interesting in AI. It is hard to copy because it is not a single asset. It is a way of operating built over time: habits, judgment, systems, feedback loops, incentives, tooling, and accumulated know-how. Competitors
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Seven Powers in the AI Era Series #7: Cornered Resource: Scarcity Still Matters, But It Moved

AI makes some resources feel less scarce and makes others matter more. Basic coding ability, generic analysis, ordinary copywriting, first-pass design, and routine support are easier to access. That does not make them worthless. It just makes them less likely to be the protected asset. Cornered resource means a
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Seven Powers in the AI Era Series #6: Branding and Trust: When Everyone Claims Intelligence

Branding gets stranger in the AI era. When every vendor says the product is intelligent, fast, secure, and transformative, the words stop carrying information. Buyers learn to discount the language. They have to. The market is loud, and most demos look better than the operating reality. That does not make
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Seven Powers in the AI Era Series #5: Switching Costs: Workflow Lock-In Is Not the Same as User Pain

Switching costs are often confused with inconvenience. A customer may dislike migrating data, retraining staff, or changing vendors. That does not mean you have power. It means the customer has chores. If the replacement is meaningfully better, cheaper, or bundled into a system they already use, chores get done. AI

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