Issue #65: New Agents, Interfaces, AI Operations for Your Business

Good morning.

The last 30 days or so were relentless.

AI moved quickly, transforming the landscape of software, hardware, and the tools businesses use every day.

You know I talk about convergence all the time. This month, we saw it happen live.

Large language models got smarter. Autonomous agents became genuinely useful. AI hardware started moving from prototypes to practical products. Major players began laying the groundwork for an internet built around AI at every level.

If your business involves or even touches software, marketing, product development, or operations, pay attention to the shifts beneath the surface.

Let's unpack it.

—Sam

IN TODAY’S ISSUE 🤖 

• AI Isn't a Feature Anymore. It's the Substrate.

• Huge Google IO Updates (Don’t Miss These)

• OpenAI Gets Physical (Hardware Edition)

• Agents Go Mainstream

• AI Hits the Physical World

• Policy, Ethics, and Resistance

• The Stack: Tools Worth Watching

• A New Metaphor: The Self-Updating Business

Let’s get into it.

AI Isn't a Feature Anymore. It's the Substrate

(This is a shorter version of the full issue, available to free subscribers and on the web. If you’re a Cortex subscriber, you get the full issue below—if you’re reading on the web, make sure you’re logged in. Cortex opens up once a month at the end of the month).

AI has evolved from being an add-on feature to becoming the foundational layer upon which all technology operates. 

Rather than just using AI tools, businesses can now run entirely on top of AI infrastructure. 

This shift represents a fundamental change in how we think about AI integration. It's no longer about having smarter chatbots, but about AI being embedded at every level of the technology stack.

Instead of simply adopting AI tools as supplements to existing processes, you should prepare for AI to become completely embedded within your operations, fundamentally changing how business workflows function.

Key Developments:

• Google completely rethinking search functionality

• OpenAI developing hardware designed for AI interaction without screens

• Agents capable of autonomously running entire business workflows

• Software tools designed directly for AI use, not just human use

Google I/O 2025 AI Updates Transforming Online Business

Google has made a dramatic comeback in the AI space with their most significant technological announcements in over two decades. 

Here’s the official list of 100 things they announced.

After being dismissed for fumbled releases, they're now leading with impressive developments that will reshape how users discover, interact with, and purchase from online businesses.

The scale of their AI transformation is massive, with AI Overviews serving 1.5 billion monthly users and driving 10% increased search usage.

These changes fundamentally alter user behavior, with people increasingly staying within Google's ecosystem rather than visiting individual websites. 

This shift means businesses must adapt their SEO strategies to focus on becoming citation-worthy sources for AI responses rather than optimizing for direct click-through traffic.

Major Announcements:

• Gemini 2.5 Pro & Flash: World-leading models with enhanced reasoning and 1-2 million token context windows

• AI Mode: Conversational AI assistant replacing traditional link directory search

• AI Overviews: Scaled to 40+ languages, reducing organic click-through rates

• Veo 3: Professional video generation with synchronized audio

• Imagen 4: Advanced visual content generation up to 2K resolution

• Agent Mode: Autonomous task execution for complex workflows

• Project Mariner: Web automation enabling AI agents to navigate websites

Business Implications:

• Expect traffic drops as "zero-click" searches become standard

• SEO will evolve but won't disappear - focus on AI citation-worthiness

• Access to professional-grade content creation tools at reduced costs

• Prepare systems for AI agent interactions rather than human-driven processes

OpenAI Gets Physical (Hardware Edition)

OpenAI has partnered with legendary Apple designer Jony Ive to create AI-focused hardware called "io," representing a major shift toward ambient, voice-driven interaction without screens.

This moves beyond traditional smartphones and tablets toward devices that integrate naturally into the environment, responding to conversational input without requiring visual interfaces.

Key Features:

• Natural, voice-driven interaction without screens

• Ambient, always-on technology integration

• Focus on emotional connection over practical functions

• Potential to revolutionize product design approaches

Agents Go Mainstream

AI agents have moved beyond demonstrations to handle real-world tasks autonomously, representing a shift from assisting human workers to taking over complete workflows independently. 

Multiple companies released capable agents in May, marking the transition from concept to practical business application.

These agents now manage entire processes from start to finish with minimal human supervision, enabling teams to focus on higher-level strategic work while AI handles routine operations.

Major Releases:

• OpenAI Codex v2: Autonomous software engineer writing code and submitting pull requests

• Claude Opus 4: Complex task handling with detailed context and reasoning

• Mistral Agents API: Modular agents with memory and external tool integration

Real-World Applications:

• Marketing teams running complete campaigns from brief to deployment

• Development teams delegating repetitive tasks to focus on bigger projects

• Strategy teams automating competitive research and insight preparation

• Full workflow completion with just prompts and feedback loops

AI Hits the Physical World

AI integration has expanded into everyday physical devices, manufacturing systems, and operating systems, marking the transition from digital-only applications to real-world implementation. This development represents AI becoming embedded in the physical infrastructure around us, from smartphones to factory equipment.

The shift toward AI-native devices means tools and equipment will proactively respond to environmental needs without explicit user commands, setting a new standard for intelligent, anticipatory technology.

Key Developments:

• Samsung + Perplexity: AI integrated as core smartphone feature, not just an app

• Manufacturing: Over 50% adoption for predictive maintenance and quality control

• Apple AI Shortcuts: Fully AI-powered automation becoming smarter over time

The Stack: Tools Worth Watching

The AI tool landscape has expanded significantly with new foundation models, development tools, and creative systems.

Rather than adopting every new tool, you should strategically select solutions that directly address workflow bottlenecks and operational challenges.

The key is building a streamlined AI stack that removes specific business process constraints rather than accumulating tools without clear purpose or integration strategy.

Foundation Models:

• Gemini 2.5 Pro: Enhanced reasoning with "Deep Think" mode

• Claude Opus 4: Long-form analysis and strategic planning

• LLaMA 4: Multimodal with large context support

• Qwen3: Cost-effective multilingual applications

Development & Agents:

• OpenAI Codex Agent: Autonomous software development

• Firebase Studio: AI-generated app scaffolding

• Jules: Google's autonomous coding assistant

• Mistral Agents API: Specialized persistent-memory agents

Creative Systems:

• Veo 3: AI video creation

• Imagen 4: High-resolution image generation

• Lyria 2: Automated music generation

• Flow: AI filmmaking platform

Interfaces & Assistants:

• Gemini Live: Real-time multimodal assistance

• Proxy: Cross-platform workflow coordination

• Operator: Proactive web automation

(If you’re a Cortex subscriber, the full, expanded issue is below).

Six months ago, knowing about AI was enough to stay competitive.

Today, that knowledge is table stakes.

Tomorrow, it won't even register.

We're past the point where you can watch from the sidelines and catch up later.

The companies building AI-native operations right now are getting ahead and rewriting the rules entirely.

While others debate whether AI will replace jobs, these businesses are already operating with 3-person teams doing what used to require 30.

The gap is measured in fundamental architecture. Some businesses are still bolting AI onto existing processes.

Others are rebuilding from the ground up with AI as the nervous system.

While you're optimizing your website for SEO, your competition's AI agents are already booking calls with your prospects.

While you're hiring another marketing coordinator, they're launching campaigns that adapt in real-time without human intervention.

The window for gradual adoption is closing fast.

Stop thinking about AI integration. Start thinking about AI transformation.

Stop managing processes. Start designing systems that think.

Build accordingly.

Until next time,
Sam Woods
The Editor