This Weekly AI Update tackles one of the most misunderstood topics in technology today: the gap between AI hype and reality. Following headlines about thousands of layoffs attributed to AI, Pavan Agarwal and I break down what’s really happening behind the scenes—and why large language models like ChatGPT don’t actually “think,” but instead process and predict. We explore where AI is delivering massive productivity gains, where it can quietly lead users astray, and why understanding this distinction is critical for business leaders, especially in high-stakes industries like lending. If you’re using AI—or planning to—this conversation will help you cut through the noise and apply it with clarity and confidence.