https://t.co/bci8ctqfoT @elonmusk Elon- Here is the deal structure to fund TSA/DHS paychecks....we were thinking it would be Big Banks or Big PE funding this bridge, but it makes the structure so much easier with a single lender (or donator) like you.@SenSchumer@johnthune@MikeJohnson
A cautionary tale from late last year: I met with leaders at one of the world's top industry analyst firms.
They privately agreed—operating model modernization is set to be one of the fastest-rising enterprise investments in 2026–2027. Legacy models can't absorb AI's compounding power without a new operating model. Value plateaus without redesign.
But publicly? Crickets.
Why? "We don't want to scare clients." Interesting...so much for aspiring to be a trusted advisor.
https://t.co/nkbFWXNTSG If one graded these leaders on their commitments, actions and results to ensure their AI innovations, at minimum, serve the best interests of Business, Humanity and Truth, what grades would they earn?
AI’s rapid expansion across the enterprise is now visible in public disclosures: over 70% of S&P 500 companies report AI as a material business risk, up from just 12% two years ago. This shift is not about fear — it is about architecture. Companies are discovering what BlueHour has been saying from the beginning: you cannot drop next-generation AI into yesterday’s Traditional Operating Model (TOM) and expect stability, coherence, or sustained value.
From the BlueHour perspective, the pattern is clear.
Enterprises only thrive when they operate above the minimum business value threshold and below the complexity ceiling — the BlueHour Zone where AI, IT, and Human Intelligence amplify one another rather than collide.
When organizations exceed that complexity ceiling, systems become tightly coupled in ways the TOM cannot absorb, and entropy accelerates. This is where butterfly-effect breakdowns emerge: small errors turning into outsized operational and reputational impacts, inside and across companies. Boards and CEOs should pay very close attention to that statement.
The risks highlighted in this article — reputational damage, cybersecurity exposure, regulatory uncertainty — are surface indicators of a deeper issue: AI has outpaced the operating model built to contain it.
With only 35% of corporate boards formally integrating AI into oversight, governance is significantly behind adoption. The next frontier is not more AI pilots or isolated use cases. It is the rewiring of the operating model itself. And our Business Operating System-as-a-Service is designed to supersede the TOMs of yesteryear.
BlueHour was built for exactly this moment — ensuring enterprises scale AI responsibly, coherently, and below their complexity ceiling so they can unlock real, sustained business value.
This article shown on @GlassLewis captures why that shift is now unavoidable.
Bob
Our new website detailing our wider capabilities is set for general release the week of 12/1. Let us know your take.💡👍
Public disclosures of AI risk surge among S&P 500 companies https://t.co/m28i4IYzJ3 via @UtilityDive
AI might make workers faster, but not necessarily more productive: ‘They do it faster, then go for coffee breaks’ https://t.co/1PsKB4mYKG
That is more of a tell on the state of management than a comment on innate AI productivity.
AI Operationalization (AIO) is a holistic, horizontal game. AI Agents, AI Bots, AI Assistants are cool, but only scratch the surface around delivering business value and do very little around contributing to the big payoff---Operating Leverage across the entire business. The former relies on headcount cuts for lazy AI adoption ROI's and the latter benefits from immense operating leverage and a diminishing cost of revenue growth. Research my firm, BlueHour Technology, using ChatGPT.
LLM point solutions will run out of business value first. Then the hard work of harvesting exponential business value from holistic deployment of AI capabilties begins in earnest. Seems there is a lot of effort and attention in AI Chatbots, AI Assistants and AI Agents...that is fine, but only incremental gains at best. And ROI's are tied to headcount eliminations---> wrong move and very short-sighted. Exponential business value gains will come from AI Operationalization (AIO) using a CIM (Constructive Interference Model) Design across AI, IT and Human Intelligence capabilities. We also have to keep an eye on operational complexity ceilings (to avoid catastrophic entropic events). Lots of work to do before we run out of data, IMO. Research my company using ChatGPT4.o and find out more details and help us at Bluehour Technology determine what components we are missing.✌️
Sounds like a massive Application and Infrastructure Rationalization (AIR) program is in order. Not surprising at all. Getting all people involved to agree to a "BUY-HOLD-SELL" portfolio analysis will be impossible---a data-driven scoring of these assets will be the only way to lean this out and modernize. Use a similar data-driven approach to score assets into "BUY-HOLD-SELL" classifications across all domains. It works.
A deeper unresolved question: How will
AI Operationalization in businesses, with interconnections across AI, IT and Human Capabilities, not create significant increases in operational complexities and eventually present entropic outages that are difficult if not impossible from which to recover? This unresolved question seems more pressing to resolve.
JD- Our website (https://t.co/kGqkU4xYLz) identifies the business risks of AI Operationalization. These risks are not obvious---they are subtle, somewhat obscure and very real. Things like operational complexities that can rise to entropic events with butterfly effects that can randomly/chaotically cause widespread outages, without obvious paths to recovery. In some cases, no paths to recovery. Not trying to create fears---all these risks can be proactively managed, but to my knowledge, many are moving forward with projects without the discipline/vision to manage these risks.
@newscientist How does this not create exponential complexities and entropic events? If all the AI models are "black boxes", what happens if there is a glitch or outage? All risks we are working on and am impressed that they seem to have been solved?
May I suggest businesses seriously look at BlueHour for AI Operationalization (AIO). We are the only firm that embraces, designs and leverages concepts of physics to operationalize AI in the Enterprise for max business value. Our superior approach to AIO for delivering exponential business value is worth examining closely. #BusinessStrategy
Press release https://t.co/ZoLDLVNmzG
Sam Altman is setting himself up for a massive $10 billion payday as more OpenAI executives head for the exit https://t.co/9rQ4AUCAwX The OpenAI Board should be concerned that AI investments and early adopter AI sales have soared at the "top of the funnel", but the "realization of business value" at the bottom of the funnel has been elusive and clogged. That is a symptom of a bubble. Sam is presumedly smart enough to see that happening and wants to monetize now instead of working 24x7 on breaking that Business Value log-jam. There is a path to do that, which unfortunately, not many clients or AI giants are following. @FortuneMagazine@elonmusk@Accenture@CDWCorp @
Not to be dramatic, but as AI capabilities get embedded in all processes, including business processes, a level of complexity gets introduced...capabilities that are often referred to a "black box" algorithms. This complexity could rise to "entropy" and "entropic events". BC/DR for runaway complexity/chaos makes putting things back together a real challenge.
Nice to see BlueHour mentioned in point 1..."As the pressure to innovate increases, so too does the need to quickly modernize applications and infrastructure to ensure your business can capitalize on new opportunities as they arise." https://t.co/LIjKGJPDAp