A Fed official is asking whether AI is becoming ‘too big to fail’
A senior Federal Reserve official has put an uncomfortable question on the table. Speaking this week, Kansas City Fed president Jeff Schmid said the finances around the AI buildout now merit close watching. Jeff Schmid said there were signs the industry had grown large enough that policymakers should start discussing it at a macro level, […]<br /> This story continues at The Next Web [...]
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AI search agents don't fail at searching, they fail at asking the right questions when queries get ambiguous
AI search agents rarely fail at multi-step research because of the search itself. Their real problem is not asking the user for clarification when queries are ambiguous. A new benchmark called DiscoBe [...]
Enterprises using multiple AI models are underestimating failure rates by 2.25x
A team routing queries across a coding specialist, a logic specialist, and a generalist model assumes each will cover the others' blind spots. A new study evaluating 67 frontier models from 21 pr [...]
Agentic reliability and evaluations : Enterprises that got burned by a bad eval are the most likely to remove humans from the loop, not the least
Across 108 enterprises, trust in automated agent evaluation rose sharply in July — and the failure rate it is supposed to predict did not move at all. The share of organizations that fully trust aut [...]
Forrester: Gen AI is a chaos agent, models are wrong 60% of the time
The shark from Jaws attacked without warning, showing how an apex predator exploits chaos to create lethal, devastating harm on its prey. Now, Forrester says, gen AI has become that predator in the ha [...]
Frontier models can recover up to 65% of facts they can't directly recall — just by thinking longer
When large language models (LLMs) hallucinate, developers typically assume the model lacks the required facts. Engineering teams diagnose the error as missing knowledge. The standard response is to in [...]
Rethinking AEO when software agents navigate the web on behalf of users
For more than two decades, digital businesses have relied on a simple assumption: When someone interacts with a website, that activity reflects a human making a conscious choice. Clicks are treated as [...]