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You're Thinking About AI All Wrong

You're Thinking About AI All Wrong

Everyone is racing to build the biggest AI. Here's why the smarter move is to go smaller.

Pallas Advisory
September 10, 2025 • Estimated Reading Time: 6 minutes

Welcome, AI Strategists

💫 Current thoughts: Let's be honest, the AI hype is a lot. But what if the race to build bigger AI is the wrong one for your business?

This week's article is about a quieter, smarter approach: the "Small AI" strategy. It’s all about using focused AI experts that solve one problem perfectly—it's the exact strategy I used to build my own AI Chief of Staff.

You'll learn why this is the key to fixing the biggest AI headaches—cost, security, and quality—and how to find your first project today.

Weekly Blog

Forget "Bigger is Better." The Future of Your Business is Small AI - Pallas Advisory

Discover why the "bigger is better" approach to AI is a trap for small businesses. This article introduces the "Small AI" strategy, a more practical and profitable way to use AI by focusing on specialized, fine-tuned models. Learn how this approach, analogized to a "master pizzaiolo vs. a celebrity chef," solves the biggest SMB headaches like high costs, data privacy risks, and generic, off-brand results, with insights backed by sources like Forbes, McKinsey, and TechCrunch.

pallasadvisory.com/2025/09/09/small-ai-strategy

AI News Roundup for SMB Decision-Makers and Marketing Professionals

SEO for AI Overviews: 5 Hacks to Grow Organic Traffic

The article highlights a critical shift: AI overviews are changing how content gets discovered. While the tactics are standard SEO fare, the strategic opportunity is real—businesses that optimize for AI-driven search results now will capture intent-driven traffic as search behavior evolves. The key isn't just ranking; it's becoming the source AI systems reference.

techbullion.com/seo-for-ai-overviews-5-hacks-to-grow-organic-traffic

The most overlooked AI strategy? Upskilling your frontline

40% of workers will need to reskill in the next three years due to AI. Yet many companies still deprioritize frontline education.

www.fastcompany.com/91400903/the-most-overlooked-ai-strategy-upskilling-your-frontline

The Work That Goes Behind AI Agents

Success hinges on organizational readiness—not just technical infrastructure, but cultivating AI literacy and redesigning workflows for human-agent collaboration. Start small with defined use cases while building the cultural foundation for this emerging hybrid workforce.

www.forbes.com/sites/joemckendrick/2025/09/09/the-work-that-goes-behind-ai-agents

Godfather of AI Says His Creation Is About to Unleash Massive Unemployment

Geoffrey Hinton, considered the "Godfather of AI," is once again offering scary predictions about what AI has in store for us.

futurism.com/godfather-of-ai-unemployment

Sharing AI wins and fails will save marketers from repeating mistakes

Understanding AI’s wins, pitfalls and best practices starts with sharing what actually works — and what doesn’t.

martech.org/sharing-ai-wins-and-fails-will-save-marketers-from-repeating-mistakes

What should sit at the center of your martech stack in the age of AI? | MarTech

The shift from "more tools" to "better integration" signals martech maturity. Smart leaders are realizing that your central data layer—not your latest shiny platform—determines whether AI amplifies your marketing or just adds expensive complexity.

martech.org/what-should-sit-at-the-center-of-your-martech-stack-in-the-age-of-ai

Anthropic's Claude now lets users edit Word, PowerPoint, Excel, and PDFs in chat

Anthropic has added file editing to Claude, letting users work with Word, PowerPoint, Excel, and PDF documents directly in the chat.

the-decoder.com/anthropics-claude-now-lets-users-edit-word-powerpoint-excel-and-pdfs-in-chat

Prompt of the Week:

The first step in a "Small AI" strategy isn't technical; it's strategic. This prompt helps you use a general-purpose AI to analyze your own business and identify the most valuable problem to solve with a specialized expert.

"You are my strategic business advisor. I want to identify the best opportunity to apply a 'Small AI'—a specialized, expert AI model—to my business. Analyze the following information I provide and help me answer three questions: The 'Annoyance Audit,' the 'Data Risk Question,' and the 'Superpower Test.'

[Describe your business here. What do you sell? Who are your customers? What does a typical week look like?]

Now, based on my business context, walk me through these three questions one by one:

1- The Annoyance Audit: Based on my description, what is likely the single most repetitive, low-value, and time-consuming task I do every week?

2 - The Data Risk Question: What is the most sensitive type of information I handle (e.g., client lists, financial data, strategic plans) that I should never upload to a public AI?

3 - The Superpower Test: What is a unique skill or process I have that, if it could be perfectly replicated in an AI, would provide the most value to my business?"

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Just Because

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