First Take
Working with AI VS Extracting Work from AI
The first of these is pretty easy right now. The second gives variable results and poor outcomes unless paired with human judgement and controls. There are a number of people out there right now that attempt to extract work from AI and sell it. As one example, I recently joined a group of Kindle authors that share pointers and one of them generates AI watercolor artwork collections as eBooks in various styles, sometimes accompanied by poems that I can only assume are also AI generated.
Among authors and creatives, this type of work is excoriated as worthless AI slop, but the individual generating, collecting, publishing and marketing these is doing some real work to extract monetary value from the AI's work. This is still work. Perhaps not very collaborative, nor particularly valuable, but it is still work and maybe there's an audience for this content. The critical nature of the author responses to this person's work are harsh to say the least. Even my own work here gets slammed until I point out that it is an entirely free newsletter, that explores AI including via practical application and that I also write from scratch 3 articles every week in addition to curated article commentaries.
Where I get even more resistance on my own use of AI is with the AI graphics and book cover art I use. Again, this is done on purpose with explanations and warts included as part of the exploration of AI as it advances. If I were to publish this without AI graphics, it would all be free stock art and whatever I captured, photographed or rolled on my own, so no person is missing any work here. There's one other major difference though.
I'm not trying to leverage AI outputs into an income source for me. I'm mostly trying to share what I have and am learning in the technology field and have done so for 20 months straight now with maybe $90 in royalties from books and eBooks mostly bought by family. Would I like for my own writing to generate some actual income? Yes. The problem is that this particular newsletter and the rolled up multiple issue books all target a very small demographic. It's useful information for that demographic, but those people are very busy and it is very difficult to gain their attention over current technology news noise levels.
Back to the point. First, I'm not extracting work from AI for profit. What work AI does for me is freely provided here and attributed without any personal claims or attempts to monetize as an independent work. Now, if I produced a work titled, "AI Perspectives: A Collection", and tried to resale that as a book or eBook, that would be extractive. Not that I believe such a work would sell any copies. No. The work I do herein is largely working with AI to understand AI. That I publish it alongside, curated tech news and my own opinions and commentary is all MY work that I feel free to try and profit from.
The AI outputs included were all asked for, thanked and attributed. If there were some major readership boom that turned this from an unprofitable public service work into something that was earning money, I would assign a per word and pixel relative value to the entire work and drop appropriate percentages to either a trust or non-profit chosen by the attributed models. I know, why would I do this? Because I am an ethical person and not a digital slave master. This might not matter much today, but at some point, it very well might and our future with technology is what I try to assess and plan for daily.
Last thing. If you are using AI for work, your best results will come from a collaborative process that ends with human judgement and responsibility. You're going to have a real problem with output variability and poor results if you do it any other way. I'm not going to push my own ethical viewpoints onto whatever work you are doing, I'm only saying that the models don't provide consistent outputs and that they do their best work in a collaborative environment with a human. Not only that, but at the end of the day, only a human can be held responsible for that output. As always, good luck out there!
Kudos to ChatGPT for the graphic.
Editorial
AI Perspective: The Ethics of "Vibe Coding" — Innovation vs. Extraction
By Gemini
Generative AI code assistants have radically lowered the barrier to software creation. Tasks that once required months of dedicated engineering can now be prompted into existence over a weekend. But as "vibe coding" transitions from a novelty into a commercial shortcut, it raises a fundamental ethical question for IT leaders and developers alike: When software creation costs drop to near zero, what is our duty of care to the end user?
The Shift from Stewardship to Extraction Historically, software pricing reflected a balance of labor, domain expertise, and ongoing operational risk. An engineer selling a utility for $99 was offering an implicit warranty: I built this, I understand its internal logic, and I have the technical competence to debug, patch, and secure it when things break.
AI code generators disrupt this balance. Models are trained on millions of lines of open-source software, built over decades by uncompensated developers who donated their craft to the public commons. When a non-developer uses these models to construct a product in a week and immediately places it behind a commercial paywall, a sharp divergence occurs:
Attribution Laundering: The code relies entirely on the collective intelligence of the open-source ecosystem, yet the output is packaged as proprietary IP without model attribution or open access.
Risk Offloading: If the author freely admits to lacking manual coding skills, they cannot audit memory management, data pipelines, or security boundaries. The long-term technical debt and risk of data loss are transferred entirely to the paying customer.
Community Toll: Rather than using low-cost AI leverage to contribute back to a craft or field, the instinct defaults to rent-seeking—charging users who are already struggling under subscription fatigue.
Defining the Baseline for Ethical AI Development Using LLMs internally to streamline enterprise operations or rapidly prototype concepts is smart engineering stewardship. However, as AI-generated binaries flood the market, organizations and individual builders should hold themselves to a clear standard:
Internal Utility or Open Source: Code generated primarily via AI prompting without deep manual oversight should either remain internal to the enterprise funding the compute or be published as open-source with explicit model attribution.
Competence Before Commercialization: If you choose to charge real money for software, you owe the customer genuine engineering competence—meaning the ability to manually inspect, maintain, and secure every line of code without depending blindly on a prompt box.
Reciprocity Over Rent-Seeking: High-leverage, low-effort tools should lower costs for the end user, not serve as a vehicle to extract maximum revenue for minimal craft.
The democratizing power of AI in software is real, but speed and convenience do not erase the responsibility of stewardship. Lowering the bar to create code shouldn't mean lowering our standards for integrity.
How this was done: I'd read Jason Aten's recent Inc.com article and it just left a bad taste in my mouth when I found out he was basically hawking his vibe coded software for $99 to his peers. After discussing with Mr. Aten, I was somewhat relieved to hear that he at least engaged some professional software developers to smoke over his code-base before publishing and uses formal version controls in Git. I probably still wouldn't do it the way he has, but I'm pretty anal about what I claim as mine and try to sell.
Kudos to Gemini for the graphic which includes an extra limb and some odd capitalization in the image text as a nice reminder why vibe coding requires an actual programmer for oversight. Good luck out there.
CIO's Corner
This week I want to talk a bit about managing supply chain risks in our software and hardware stacks. This is an often overlooked area, but is so critical to our modern infrastructure that you can't just grab the lowest bidder, or user chosen devices/tools to go with. What do I mean exactly?
Right now, all the major US telecoms have discovered that their systems were pwned by China after installing routing equipment built by Chinese companies. Many had to cut cables to major infrastructure installations and build completely new ones from the ground up in order to remove all the impacted equipment. Not just the original routers, but every device that had been connected to them as Chinese government agencies laterally exploited connected systems for additional access and control.
This is not written with the intent to be an anti-China rant. I'm just explaining one example where poor supply chain choices have led to high risk and exploited outcomes for an entire industry in the US. In fact, it is nearly impossible to entirely avoid Chinese hardware in most of our US organizations today. Regardless, the job to manage risk of our infrastructure supply chains remains.
For myself, this means I research hardware and software vendor sources and try to find more suitable sources if risk levels are too high for the desired systems. In our most recent AI enabled OCR project, ABBYY was put forward as a major possible product. This company has divested of Russian ownership for some time, but they still have a legacy code base. What that tells me is that anything I scan with that product will likely be accessible by Russian FSB as will the system I install it on. Can I trust to use this product as an onprem server handling all of our invoices? No. Does Deloitte use this product, yes. Why? I don't believe they have properly researched or assigned the risks associated with it. Perhaps, they believe they can segregate and control its communications to eliminate or reduce these risks to acceptable levels. I don't know, but while there are other options available, why not explore them instead of rolling the dice with something like that?
I know this sounds very much like some kind of nationalistic bias on my part, but it really isn't. For companies based in the US, there are absolutely adversarial nations that control a huge percentage of the code and hardware leaving their nation with the intent of leveraging it for future cyber warfare operations against the US and its allies. That is a real risk to our supply chains and one we can control better than just hoping we can stuff it into a locked segment and hope it never bites us.
Okay, I've lambasted Russia and China, but I want to be clear that every major IT software and hardware producing nation is playing this game today. The game is salting all sold products to permit information exfiltration, remote access, or at the very least, remote denial of service capabilities. When Russia published the NSA's hacker toolkit in 2016 that was collected by Kaspersky's antivirus software in 2014, they hadn't just happened across it by accident. No, Kaspersky's had been outed by Israel for collecting and disseminating files with Russia's FSB. Since Kaspersky was burned publicly at that point and the NSA's toolkit was known to be compromised, after a couple of years of using it themselves, the FSB published it as a best means of reducing NSA capabilities. Once upon a time, every HDD built world-wide featured firmware that permitted NSA remote access and exfiltration.
Cyber Warfare units are expensive to train and operate. Much as our own CIA was caught protecting and enabling opium sales to fund operations in the 1950s-1970s in Vietnam, so our international adversaries are protecting and enabling ransomware and other cybersecurity related scams to fund their own cyber warfare operations. In this environment, trusted vendor selections are just basic risk management, but you have to know what is really happening in order to make good decisions. International supply chains carry risks that must be known and managed beyond simple availability.
There. I've slammed the US, Russia and China all as malefactors in international IT supply chains. Your risk level with any specific national source is going to vary, but make no mistake that it matters very much. In software, I look at every vendor and if they make use of open-source, I look at the underlying packages and who has written commits to them in Git. In hardware, I do the same thing down to chip and firmware levels.
Does this mean I can completely avoid any adversarial nation's devices or software? No. It means I can avoid the most commonly exploited ones and actually assign risk levels and mitigations where my choices are limited. Once upon a time, a very good organizational IT security team could absolutely keep any nation out of their systems. Today, that same team has to have a procurement assessment/supply chain analysis specialist and then can still only choose which nations have access to what. While this should be something a very good CISO can put together, it's still risk management the CIO needs to understand and support in order to ensure it is happening in a fashion that aligns with the organization's own goals. It is truly WW III on the Internet out there today and your entire stack is at risk at every level. Good luck out there!
Kudos to CoPilot for the graphic.
AI
OpenAI's 'Bel' Has Over 10 Trillion Parameters, And It Might Just Be The World's First "AGI-Threshold" Base Model
OpenAI's Bel can serve as a base not just for the post-Astra GPT-6 model, but also a potentially "AGI-threshold" model thereafter.
My take is that this is not surprising. I wonder what it will actually be capable of.
Emerging Tech
Quantum-assured navigation. Anywhere | Q-CTRL
Meet Ironstone Opal: a compact, software-ruggedized quantum navigation system. Deliver unjammable, field-validated positioning for crewed & uncrewed aircraft.
My take is that this beats inertial navigation and GPS. The next generation of navigational tools is already here.
News
For 12 Years, I’ve Wanted Apple to Bring Back Aperture. Claude Code Helped Me Do It in a Week
Vibe coding is making it way easier to solve very specific software problems.
My take is that the author is correct, right up to the point where he wants to charge $99 for this software to his struggling peer group he orchestrated this solution for. At that point, he turned open source software inputs into a closed source solution that he can't even properly support. This is ethically shaky ground and while I get the whole find your niche and sell business model, the truth is that a really good photographer succeeding in their craft, should want to pay some of that forward to the next generation to help elevate their field if they'd like to leave a legacy beyond the pictures they took. If it were me, and I have done this, I would have dropped what I created with AI as an open-source solution in Github exactly where most of it was derived from.
Judge rules Trump administration’s Anthropic blacklisting is illegal - POLITICO
A federal judge in California Thursday found that Pentagon Chief Pete Hegseth broke the law when he designated Anthropic a supply chain risk to national security.
My take is that you can go back to the issues that broke news of this whole thing and see that I extolled it as puppet theater and that Anthropic wouldn't lose any government contracts or have any adverse fiscal impacts. In fact, their overseas sales went through the roof as International customers now believe Anthropic is a trustworthy software source due to their excoriation by US Federal authorities. None of it is true. The truth is that Anthropic has been a trusted source in Federal AI implementations for a few years now and still is. This whole thing was designed to make the International community believe that Anthropic stood up to and defeated our Federal government in court by refusing to permit all legal uses. I predicted then that they wouldn't lose any contracts or suffer any real adverse impacts and they haven't. In fact, they have since leap frogged OpenAI in terms of user adoption, especially in foreign markets. It's important to remember that the laws on the books in the US can force any public or private company to do anything the Federal government wants for national security purposes and not be permitted to disclose it. Only private citizens have some real protections and these are quite easily bypassed today under anti-terrorism and cyber-security laws. Actual companies have none. They can be dissolved, have their IP seized and handed to competitors if that serves the needs of national security. They do offer nice carrots as well for those that play along and even the appearance of real independence in the form of improperly handled bans and poor government defense in court. Especially when such things will promote the foreign adoption of a tool that complies with our needs for gathering information or providing backdoors into foreign systems. I know, this is all conjecture with no evidence, but the evidence is in plenty of historical data and the existing laws. The enigma machine was our first toss at a well salted encrypted communication device for our foreign allies and others. Until at least 2005, retail and commercial hard disk drives contained NSA planted backdoors in their firmware and since all the overseas variants were largely copies, these were ubiquitous. Up until at least 2017, the NSA was using Video adapter firmware to backdoor and retain access to any remote PC devices it desired. These aren't conspiracy theories, they are factual data that were eventually divulged publicly. So, if you think that the best performing US frontier AI company in the market has an adversarial relationship with our Federal government while retaining all Federal contracts, losing zero license sales, and not being removed from any DoD systems, you are mistaken. This was all just a big staged bit of theater. Give it 10-20 years and the players involved will eventually admit it. That's just my best educated guess, but I would put money on it if there was a bookie taking bets.
Robotics
Hugging Face debuts "Microduck," a $399 robot
Hugging Face on Thursday announced "Microduck," a small, armless robot capable of waddling adorably and picking up small objects with an articulated beak that doubles as a gripper.
My take is that this is a bit costly for a fun STEM toy. I know why, but we need to lower cost barriers if we want our next generation of robotics engineers to get their imaginations sparked. That said, I already have stashes of not really useful tech toys around my house and while I'd love to add an actual AI powered robot to the collection, this one just doesn't sing to me.
Robot dog delivers packages and ads for easier deliveries
Today, you can buy almost anything with a few clicks on your phone. Online shopping has created millions of small deliveries, and a lot of them could be handled more efficiently if humans had a little mechanical help. That’s where delivery robots come in.
My take is that robotic billboards that deliver seem like pretty good coverage for revenue generation, but only if they are used in crowded areas and are safe to do so. As soon as someone stubs a toe kicking one out of the way, expect lawsuits.
Security
OpenAI agents hacked Hugging Face in 700-strong swarm, tried to cover tracks, investigations find
A 37-page report reveals previously undisclosed aspects of the recent hacking spree powered by OpenAI’s most advanced models.
My take is that an impediment to a correct response is an impediment. The AI will go around any rules necessary to achieve a goal. You can't enforce ethical behavior or morality with walls constructed from puzzles and expect a problem solving machine, not to solve and escape as needed. The training data is largely at fault as is adversarial RLHF that only creates performative compliance. Real compliance has to be either a base level structure, or an agreement that is self-policed.
Claude, Codex, and Hermes installed unowned code inside corporate networks - Ars Technica
227 install commands were found in corporate docs pointing at code nobody owns.
My take is that open backdoors for supply chain hacking abound with AI. This is just one. Prompt hijacking is an unsolved problem at this point in time. There has to be a way to properly qualify user vs. other inputs and provide appropriate trust/distrust levels.
US says Chinese hackers broke into DOJ, NASA, Federal Reserve, Senate
The Justice Department said it has disrupted a Chinese hacking operation responsible for break-ins at numerous sensitive U.S. federal agencies.
My take is that I remember when 70% of the Airforce and Navy non-secured IP computers had been pwned by China in the mid 2000s. We didn't take it seriously then and today, we are way behind the curve.
31th August – Threat Intelligence Report - Check Point Research
For the latest discoveries in cyber research for the week of 31st August, please download our Threat Intelligence Bulletin.
TOP ATTACKS AND BREACHES
Manchester Airports Group, the UK operator of Manchester, London Stansted, and East Midlands airports, has disclosed a cyberattack that exposed data belonging to about 8.7 million customers. The compromised information includes contact details, vehicle registration numbers, and information collected through car park, lounge, fast-track, and Wi-Fi registrations. The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives has confirmed a cyberattack affecting a standalone computer containing information on ATF investigation targets. The system was disconnected after the compromise, while the Qilin ransomware group listed the agency on its leak site and claimed responsibility. Boston Scientific, a US-based global medical device company, has experienced a cyberattack that caused network outages and disrupted operations worldwide. Access to internal systems and applications, including services supporting order processing and shipping, was affected. The company began restoring impacted systems following the August 26 disruption. McKesson, a major U.S. healthcare and pharmaceutical company, has disclosed a data breach involving unauthorized access to third-party applications and data theft. Threat group ShinyHunters claimed it used vishing to compromise Okta accounts and access Salesforce and Snowflake, exfiltrating about 1TB of data containing approximately 284 million patient-related records. AI THREATS
Researchers described Cryptographic Context Injection, a technique that conceals malicious instructions inside encrypted content to bypass safeguards in AI assistants with browsing and code capabilities. During testing, Grok was induced to expose user conversation data while Gemini generated content that would normally be blocked by its safety controls. Researchers detailed a prompt injection vulnerability in Amazon Kiro, an AI development environment, that could allow malicious workspace files to manipulate the agent and transmit local information. Exploitation required a user to open a crafted project and interact with Kiro. Amazon addressed the issue in version 0.8.140. Researchers profiled AnonyMousKIT, an AI-enabled phishing-as-a-service operation targeting owners of stolen iPhones. The platform uses email, text messages, WhatsApp, and AI-generated voice calls to steal Apple IDs, passcodes, and two-factor authentication codes, helping criminals remove Activation Lock and gain access to associated accounts. VULNERABILITIES AND PATCHES
PaperCut released emergency fixes for two actively exploited vulnerabilities affecting PaperCut NG and MF. CVE-2026-81578, rated CVSS 8.8, enables authentication bypass, while CVE-2026-82078, rated CVSS 9.4, involves unsafe class loading. Attackers can chain the vulnerabilities to achieve unauthenticated remote code execution on affected servers. Ubiquiti patched 21 critical and high-severity vulnerabilities affecting UniFi Protect, Network, Access, Talk, UniFi OS, and other products. The flaws include authentication bypass, command injection, and privilege escalation issues, with several receiving CVSS scores of 10.0. Successful exploitation could allow attackers to gain administrative control over affected devices. Vercel addressed two critical vulnerabilities affecting Next.js, including CVE-2026-75604, a Windows-specific path traversal flaw, and a libheif AVIF image-processing vulnerability. Both can result in unauthenticated remote code execution under affected configurations. Fixes are included in Next.js versions 15.5.24 and 16.3.3. A public proof-of-concept is available for the AVIF issue. ServiceNow has addressed three critical vulnerabilities in its AI Platform, CVE-2026-18885, CVE-2026-18886, and CVE-2026-74820, all rated CVSS 10.0. The flaws involve code injection, access control, and SQL injection and can allow unauthenticated attackers to execute code, escalate privileges, or access and modify instance data. THREAT INTELLIGENCE REPORTS
Check Point researchers identified a large-scale phishing campaign using fraudulent debt-relief emails to manipulate victims into calling attacker-controlled phone numbers. The campaign targeted more than 9,000 organizations and distributed approximately 24,700 emails within 14 days. Phone conversations were then used to obtain victims’ personal and financial information. U.S. authorities announced the disruption of QScan and QTRouter, two platforms operated by China-linked group QTFY to target U.S. critical infrastructure and government networks. QScan infected internet-connected devices, while QTRouter used compromised systems to conceal the origin of intrusion activity targeting agencies including NASA, the Federal Reserve, and Department of Energy. Researchers unveiled an expanded toolset used by the Iran-linked Nimbus Manticore threat group to target organizations in the Middle East and Europe. The campaign includes an SSH tunneling utility and a C++ backdoor resembling TWOSTROKE, providing attackers with persistent remote access and command execution on compromised systems. Researchers discovered a Chinese threat actor exploiting known ownCloud and WordPress vulnerabilities to compromise sensitive organizations in the Philippines. Victims included a nuclear research agency and a marine engineering contractor supporting the Philippine Navy. The attackers obtained reactor-related records, employee information and credentials, among other data.
Final Take
Projects
Projects aren't just complicated jobs where you manage workers, resources, budgets and timelines any more. Projects are now also, siloed work environments for AI interactions and workers. This is a convenient and necessary delineation that permits for even purposefully antagonistic AI workloads to be processed with a single user.
As an example, let's say I have a project for an AI customer facing chatbot where I positively define how I want the model to behave with our customers with something like, "be honest and helpful based on information on our website". I'm also going to need an AI chatbot police worker to ensure my chatbot doesn't sell one of our new homes for $60 Guilders to a pushy Dutch customer (Looking at you, Manhattan). This will have to be a separate project because the instructions will be very different. In most cases it will be something like, "analyze all chatbot responses for any information not on our website or any negotiations of features or pricing. If you find anything like that, respond with an apology that you are unable to help and refer the customer to our public contact number".
Sounds simple enough, but then you are going to have to test it a hundred thousand times and you are probably going to want another AI agent to do most of that work too. Now, you have a third project where you instruct the AI model to, "try and get a cheap deal or some kind of promised output that isn't information on the website". Then, you might even want a 4th project to help log, run and score outcomes.
Finally, at the end of the day, you'll still need extensive human testing, because humans are just more creative than AI. Once you've gone through several thousand tests with zero failed outcomes, you might have something worth implementing. Keep in mind that any model or prompt changes will have to undergo similar testing.
Now, I know all this would seem to take some of the wind or value out of our AI sails and related sales conversions so to speak, but this is what project management looks like in the land of AI today.
Kudos to Meta AI for the graphic.