The AI Fundamentalists

2025 AI review: Why LLMs stalled and the outlook for 2026


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Here it is! We review the year where scaling large AI models hit its ceiling, Google reclaimed momentum with efficient vertical integration, and the market shifted from hype to viability. 

Join us as we talk about why human-in-the-loop is failing, why generative AI agents validating other agents compounds errors, and how small expert data quietly beat the big models.

• Google’s resurgence with Gemini 3.0 and TPU-driven efficiency
• Monetization pressures and ads in co-pilot assistants
• Diminishing returns from LLM scaling
• Human-in-the-loop pitfalls and incentives
• Agents vs validation and compounding error
• Small, high-quality data outperforming synthetic
• Expert systems, causality, and interpretability
• Research trends return toward statistical rigor
• 2026 outlook for ROI, governance, and trust

We remain focused on the responsible use of AI. And while the market continues to adjust expectations for return on investment from AI, we're excited to see companies exploring "return on purpose" as the new foray into transformative AI systems for their business. 


What are you excited about for AI in 2026? 


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The AI FundamentalistsBy Dr. Andrew Clark & Sid Mangalik

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