In today's lineup: 

Robots

• The AI boom is putting core tech at risk

• Real ROI from Gen AI

• Taming your internal data chaos with AI search

People

• Pascal Gauthier's high-stakes strategy

Love

• How to overcome the innovator's blind spot

• Transformative Reads: Working Backwards

Reading time: 3 min. 

Top Insights

• Human-level AI has arrived, collapsing the strategic timeline

• AI's initial impact is on revenue, not headcount

• The most valuable AI skill is now prompting, not programming

• Microsoft pivots from a single AGI to specialized superintelligence

• Tesla's new mandate is to build a million-robot army

The AI boom is putting core tech at risk

Companies are chasing AI, but it's creating a hidden vulnerability. While 74% of organizations are boosting AI investment, a new Deloitte study reveals a dangerous side effect: spending on foundational tech like data management and cybersecurity is declining. This creates a "pay-later" problem, building AI ambitions on a shaky foundation.

This imbalance is unsustainable and puts future growth at risk. As hype fades, leaders must balance innovation with resilience. The winners will be those who build a robust, integrated tech strategy.

The playbook for a balanced tech stack

• Protect the foundation: Set spending minimums for core infrastructure. Don't let AI cannibalize your budget.

• Align on value: Move beyond siloed ROI. Create a shared C-suite scorecard for enterprise-wide outcomes.

• Build for resilience: Integrate your AI strategy with a robust plan for your entire tech estate.

My book, 100x, offers a deeper framework for implementing these principles and turning your AI investments into a measurable, competitive advantage.

Real ROI from Gen AI

• Lowe's enhances its e-commerce search by fine-tuning OpenAI models on its product data, improving product tagging accuracy by 20% and boosting error detection by 60%.

• IKEA launched an AI-powered interior design tool that generates shoppable 3D room designs based on customer photos and style preferences.

• Mayo Clinic uses a large language model to synthesize and summarize vast amounts of medical research and patient data to help clinicians make faster, more informed diagnostic decisions.

Together with The AI Entrepreneurs

Stay one step ahead with AI

The AI Entrepreneurs is the executive briefing with the critical intelligence and tools you need to stay ahead. Get:

• Access to 73,000+ AI leaders and innovators.

• A private community for strategic partnerships.

• Actionable playbooks to deploy high-ROI AI initiatives.

• A full execution toolkit: 100 ChatGPT prompts, a free AI writer, and two courses, "Minimum Viable Business" and "4-Hour AI Workweek."

No loans. No fluff. Just ROI.

Subscribe for free

Tool Spotlight

Your weekly briefing on tools that create competitive leverage

Taming your internal data chaos with AI search

Glean

Best for: Companies wanting a powerful, standalone platform to search across all their apps. Choose if you need a unified search experience that connects to everything, without being tied to a specific ecosystem.

Microsoft Copilot for Microsoft 365

Best for: Organizations deeply integrated into the Microsoft ecosystem. Choose if you want an AI assistant embedded within your existing workflow in Teams, Outlook, and SharePoint.

More ways to unlock your data

• Guru: A knowledge hub that captures verified information and delivers it within your team's workflow.

• Coveo: An AI search platform for large enterprises that delivers personalized results across the digital workplace.

• Notion: A built-in AI assistant that answers questions using your existing Notion wikis, projects, and docs.

Transformation Champion

Pascal Gauthier on how a real-world threat shapes Ledger's market strategy

Ledger CEO Pascal Gauthier’s mission to make crypto self-custody mainstream took on a stark urgency after his co-founder, David Balland, was violently kidnapped for a crypto ransom. This event highlights the physical risks of digital ownership and fuels Gauthier's strategy to transform security from a complex chore into a seamless experience. To execute this vision, he brought iPod inventor Tony Fadell to the board, cementing his core belief: "When we build a product, it's not just a device, it's an experience."

How to overcome the innovator's blind spot

Your past success often creates your biggest risk. The "best practices" that built your career can blind you to the next disruptive shift, turning your playbook into a prison.

The solution comes not from learning more, but from intentionally unlearning the assumptions that hold you back.

Two shifts to make it happen:

1. Think from first principles

   Stop relying on analogy ("what worked before") and break problems down to their fundamental truths.

2. Challenge your core business

   Question whether your main value-delivery model remains the right one for a world with AI.

I break down the full framework in my latest article.

Transformative Reads

One book, handpicked from my conversations with friends, industry leaders, and tech innovators:

Working Backwards by Colin Bryar and Bill Carr reveals the operational playbook behind Amazon's success. It details the practical processes, like the six-page narrative, that enforce a customer-first approach to innovation and provides a blueprint for building a culture of relentless, customer-centric execution.

Perfect for: Leaders seeking a proven system to build scalable, customer-focused innovation.

In Culture

THANK YOU!

Lighthouse takes us many hours to create, and we don’t run ads or charge anything. We are dedicated to making it the best AI transformation newsletter possible.

We just ask for one thing: tell one friend about Lighthouse today!