What This Week Taught Us About AI In Action.

Happy Friday. This week I wanted to shift focus back to AI, both in the data we’re seeing and in company commentary. We are just 11 days away from what looks like a Fed cut, and while the macro view we’ve discussed in recent weeks still holds, the spotlight this week is on how AI is showing up in real time.

At several investment conferences, companies shared insights into how AI is being adopted across industries. We also saw supporting data from the ad ecosystem, where performance metrics suggest advertisers may already be benefiting from AI-driven personalization.

Together, it paints a picture of momentum building beneath the surface. Let’s dig in.

Here is the summary if you want just that:

• LegalZoom 10 to 10,000

• Paycom’s command line product scale out.

• Nvidia’s flywheel

• Ad spend shows AI gains?

Last week I focused on the macro economy. This week I want to shift gears back to AI.

The first point is about the source data feeding large language models. What stands out is that much of it comes from the largest semi-structured internet assets, with Reddit and Wikipedia among the most sourced. It’s a good reminder that while LLMs appear incredibly “intelligent,” the foundation is still human-created, semi-structured information. Synthetic data may play a larger role in the future, but it’s hard to argue that humans won’t remain central to these models. Brain.

This week on LinkedIn I highlighted a point about Jensen Huang at Nvidia. Beyond his technical brilliance, he is equally skilled in marketing and communicating with both users and investors, which matters given the scale of value creation tied to Nvidia here.

On the last earnings call, he framed Nvidia as far more than a chip company. His story was about an ecosystem where chips, networking, software, and cluster design all work together. It is this integration of racks, networking, and the ability to scale up or out, that drives performance and energy efficiency. All of which drives towards ROI. Basically saying that the real moat is not just the chips. It is the full stack.

Not sure there’s an exact rhyme or reason, but it is worth noting that some of the largest ad platforms have linked recent performance gains to AI-driven personalization. The data this week across the ecosystem looks very healthy, CPMs are up, yet return on ad spend improved meaningfully. The question is whether this reflects AI-driven efficiency or just a seasonal bump. Either way advertisers are happy.

We also had a couple of conferences this week where some of our companies spoke. One highlight came from Paycom’s founder and CEO, who discussed their new command-driven product that sits on top of their payroll database. Adoption has been massive. What started as a rollout to a handful of customers is now expected to reach the entire customer base by year-end.

Instead of manually inputting or searching for information across a company, a single-line interface, similar to a ChatGPT-style prompt, is quickly becoming the norm.

Similar commentary came from LegalZoom, the largest brand in online legal and business formations. The CEO explained how AI is supercharging the platform’s legal experts, enabling them to scale customer interactions by 100x. Instead of replacing expertise, AI is amplifying it, allowing more touch points, better service, and stronger economics.

Last but not least, Google launched its new image product, Nano. It was a huge success both in terms of performance and virality across the internet. That virality is already visible in app downloads for Google’s Gemini product. It highlights how we will likely continue to see waves of demand in AI as each new product and model enters the market.

That’s it this week!

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