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"AI won’t take your job. A person using AI will."

The real threat isn’t robots. It’s the people adapting faster than you.

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This week in the AI & tech world:

  • OpenAI cracks AI's hallucination code

  • Albania appoints AI as government minister

  • Anthropic agrees to $1.5B author settlement

  • OpenAI backs ‘Critterz’ animated AI film

  • Claude can now create files

  • Tips, tricks & tutorials

  • Free resources & other cool updates

Reading time under 8 minutes

Latest updates

OpenAI cracks AI's hallucination code

OpenAI just published a new paper arguing that AI systems hallucinate because standard training methods reward confident guessing over admitting uncertainty, potentially uncovering a path towards solving AI quality issues.

Here’s what you need to know:

  • Researchers found that models make up facts because training test scoring gives full points for lucky guesses but zero for saying "I don't know."

  • The paper shows this creates a conflict: models trained to maximize accuracy learn to always guess, even when completely uncertain about answers.

  • OpenAI tested this theory by asking models for specific birthdays and dissertation titles, finding they confidently produced different wrong answers each time.

  • Researchers proposed redesigning evaluation metrics to penalize confident errors more than when they express uncertainty explicitly.

Here’s what I think:

This research potentially makes the hallucination problem an issue that can be better solved in training. If AI labs start to reward honesty over lucky guesses, we could see models that know their limits — trading some performance metrics for the reliability that actually matters when systems handle critical tasks.

Albania appoints AI as government minister

Here’s what you need to know:

  • Prime Minister Edi Rama unveiled Diella during a cabinet announcement this week, calling her the first member “virtually created by artificial intelligence”.

  • The AI avatar will evaluate and award all public tenders where the government contracts private firms.

  • Diella already serves citizens through Albania's digital services portal, processing bureaucratic requests via voice commands.

  • Rama claims the AI will eliminate bribes and threats from decision-making, though the government hasn't detailed what human oversight will exist.

Here’s what I think:

While there is little doubt of AI’s use within government operations (and we’re already seeing it deployed en masse), handing full control to the tech in its current form sounds like a security nightmare ripe for malicious workarounds that might end up enabling as much corruption as its human predecessors.

Anthropic agrees to $1.5B author settlement

Anthropic just agreed to pay at least $1.5B to settle a class-action lawsuit from authors, marking the first major payout from an AI company for using copyrighted works to train its models.

Here’s what you need to know:

  • Authors sued after discovering Anthropic downloaded over 7M pirated books from shadow libraries like LibGen to build its training dataset for Claude.

  • A federal judge ruled in June that training on legally purchased books constitutes fair use, but downloading pirated copies violates copyright law.

  • The settlement covers approximately. 500,000 books at $3,000 per work, with additional payments if more pirated materials are found in training data.

  • Anthropic must also destroy all pirated files and copies as part of the agreement, which doesn’t grant future training permissions.

Here’s what I think:

This precedent-setting payout is the first major resolution in the many copyright lawsuits outstanding against the AI labs — though the ruling comes down on piracy, not the “fair use” of legal texts. While $1.5B sounds like a hefty sum at first glance, the company’s recent $13B raise at a $183B valuation likely softens the blow.

OpenAI backs ‘Critterz’ animated AI film

OpenAI is throwing its resources behind "Critterz", an AI-generated animated feature that aims to prove AI can help create strong films while cutting Hollywood production costs and timelines.

Here’s what you need to know:

  • The team hopes to complete the feature in 9 months with a sub-$30M budget, compared to typical animated films requiring 3 years and much higher budgets.

  • OpenAI plans to provide its ‘tools and computing resources, including GPT-5 and image generation models, targeting a Cannes Film Festival debut in 2026.

  • Human actors will voice characters, with artists creating initial sketches that GPT-5 and image models transform into the final animations.

  • OpenAI creative specialist Chad Nelson developed the characters over three years, initially using DALL-E to create the first iteration of the film.

Here’s what I think:

AI’s disruption of Hollywood is already underway, but it’s been more of an integration of tools, with large swaths of both creatives and consumers still taking a strong anti-AI stance. We’d bet on ‘Critterz’ successfully hitting its timeline and goals, but the audience's embrace of an openly AI film will be the tougher hurdle.

Claude can now create files

Anthropic rolled out new productivity features to Claude, including the ability to create and edit Excel sheets, Word documents, PowerPoint slides, and PDFs directly in chat, challenging OpenAI’s dominance in the workplace AI space.

Here’s what you need to know:

  • Claude gains a private computing environment where it can write and run code to create files, turning data into reports with charts, analysis, and formulas.

  • Users can also convert between formats, turning PDF reports into slide decks or meeting notes into formatted documents.

  • The feature is rolling out to Max, Team, and Enterprise subscribers, with Pro users gaining access in the coming weeks.

  • Anthropic recommended starting with “straightforward” tasks, also warning of potential data risks with giving Claude access to the internet.

Here’s what I think:

The AI work productivity wars are coming directly into our files, which is an absolutely massive unlock for the tools that many workers use the most. Just like we’ve seen with AI coding tools, using Excel and spreadsheets is increasingly going to become a simple natural language conversation over understanding complex formulas.

Resources

Best ChatGPT FREE Course

Prompts of the week

Meeting Prep Framework

Prompt: "You are my executive assistant. Never let me walk into a meeting blindsided. Task: Review the email I selected for you [share email]. Context: Prepare me for the next meeting about [share context]. Reference: Use insights from all past manager and team discussions connected to this meeting series [share summaries, notes, or prior context]. Deliverables: Summary of the selected email (clear, concise). Meeting prep notes: Key points, open threads, and issues I should raise. Action items: What’s expected of me, what I owe others, and deadlines. Team/Manager alignment: Remind me of prior agreements, decisions, and dynamics I must keep in mind. Red flags: Any risks, tensions, or gaps I should be ready to address. Keep the tone direct, practical, and anticipatory. Write like a chief of staff who wants me fully equipped to contribute and not be blindsided.”

AI Tips, Tricks & Tutorials

How to merge multiple images into a single image with AI

Follow these steps:

  • Go to Google AI Studio and select ‘Gemini 2.5 Flash Image (Nano Banana)’ as your model.

  • Upload multiple images (scenes, people, objects, or props).

  • Enter your prompt describing exactly how you want them combined.

Prompt: “A model is posing and leaning against a pink BMW. She is wearing the following items, the scene is against a light grey background. The green alien is a keychain, and it's attached to the pink handbag. The model also has a pink parrot on her shoulder. A pug is sitting next to her, wearing a pink collar and gold headphones.”

  • Within seconds, you’ll get a single hyper-realistic merged photo.

How to create persuasive presentations with Canva AI

  • Go to Canva AI and sign up.

  • In the dashboard, select ‘Design for me‘ → ‘Presentation‘.

  • Enter your prompt describing your presentation and hit Enter.

Prompt: “Create a marketing campaign plan template for a new product launch. Include placeholders for company name, target audience, budget, and messaging. Develop a social media content calendar template for a quarter. Make it generic enough so any brand can add their posting themes and channels.”

  • Select from styles to match your audience: Playful & Colorful, Formal & Polished, or Clean Hybrid.

  • Click ‘Use Canva Editor’ to refine your presentation.

  • Once your design is ready, export it as a PowerPoint, PDF, or link.

PRODUCTIVITY

Top AI tools of the week

  • ❤️ Lovable Voice Mode - Code and build apps with voice commands.

  • 🤖 Qwen3-Max - Alibaba’s massive new 1T parameter model.

  • 📽️ Sidekick - Build Zapier-style automations using a chat interface

  • 💄 Higgsfield Ads 2.0 - Create realistic custom AI product placement ads.

  • 🖥️ HeyGen - Create AI avatars and video clones of yourself.

AI IMAGES OF THE WEEK

Timeless icons

Prompt: “Photorealistic image 64k of a 1939 Bugatti Type 57C Cabriolet, top view, background white.”

Cartoon exposure

Prompt: “Double exposure, Midjourney style, merging, blending, overlay double exposure image. An exceptional masterpiece by Yukisakura, revealing a fantastic double exposure composition of (CHARACTER / SUBJECT NAME’s) silhouette harmoniously intertwined with the visually striking scene. Beautiful tension builds as the stark [BACKGROUND STYLE / COLOR] maintains razor.”

VIDEOS OF THE WEEK

Bring famous art to the modern world

Humanoid robot stacking, sorting, and loading dishes in a dishwasher

💡 The Latest in AI and Tech

  • Alibaba introducedQwen3-Max’, a 1T+ model that surpasses other Qwen3 variants, Kimi K2, Deepseek V3.1, and Claude Opus 4 (non-reasoning) across benchmarks.

  • AI startup Runway is expanding beyond creative AI tools into robotics, using its video-generating world models to help train robots and self-driving cars.

  • Higgsfield AI unveiledAds 2.0’ — a new tool it says can replace entire production, marketing, and creative teams with a Mini App.

  • Waymo is expanding its robotaxi service to Denver and Seattle, planning to test autonomous driving in harsher weather conditions.

  • Google introduced learning tools to ‘NotebookLM’, including customizable flashcards and quizzes, redesigned reports, and interactive notebooks for academic textbooks.

  • OpenAI will begin mass production of its own custom AI chips next year through a partnership with Broadcom, according to a report from the Financial Times — joining other tech giants racing to reduce dependence on Nvidia's hardware.

  • Microsoft is set to reach a deal to integrate Anthropic's AI models into Office 365 alongside OpenAI's tech, according to The Information, marking the software giant's first major AI diversification away from its OpenAI partnership.

  • ByteDance Seed introducedSeedream 4.0’, a new image generation and editing model that competes with Nano Banana with 4K outputs and multimodal capabilities.

  • Google added new capabilities to its Veo 3 and Veo 3 Fast models, including vertical video outputs, 1080p HD resolution, and a 50% decrease in price.

  • Mira Murati’s Thinking Machines Lab published research on making AI responses more consistent and predictable, taking its initial step toward sharing work openly.

  • ElevenLabs introducedVoice Remixing’, a new feature allowing users to change aspects of both designed and user voices for more customizable outputs.

  • Math Inc. just introducedGauss’, an AI system that solved a complex mathematical theorem called the Strong Prime Number Theorem in just three weeks — after top mathematicians struggled with it for 18 months.

💼 Tools I Use Daily to Work Faster & Smarter!

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Thank you for your support and for being an amazing subscriber!🙌

That’s a wrap, my fellow Sapiens. Until next week:

Stay informed, stay adaptable, and keep thriving!

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