AI Market Share Shifts, New State Rules, and Custom Chip Tech

Hello Friend,

The AI you lean on is not fully yours to control.

Apple now runs its new Siri on Google’s models. Anthropic had to switch off its two most powerful models overnight after a government order. And a team out of MIT showed just how much power and water it takes to keep these systems running.

The tools you depend on can change, get pulled, or hit a wall you did not see coming. Your focus should be having a backup plan so you stay steady even as AI changes.

If you need help building an AI setup that does not fall over when one tool does, send an email to [email protected].

Here are the top stories from this week:.

Leading Your Team Through AI Adoption: The Owner Operator’s Guide to Change Management

You cannot just hand your team a new AI tool and expect them to change how they work overnight. This guide breaks down the human side of bringing AI into your operations. We cover how to manage fear, build clear training steps, and create a culture where your staff actually wants to use the technology.

Read the full text

Our Most Requested Service: AI Strategy

We survey your team, review your current workflows, and find the safest AI opportunities for your operations. Our team builds a practical, phased roadmap and recommends secure tools so you can scale without adding headcount.

Book a meeting today

This week’s stories

ChatGPT Loses Its Dominant Share of the AI Market

ChatGPT fell to 46.4% market share at the end of May. This marks the first time it slipped below the 50% mark. Other tools like Gemini and Claude are catching up quickly. Gemini reached 27.7% of the market, and Claude hit 10.3%. The shift shows that more users now rely on tools built directly into their phones and existing software.

My Take: Adoption matters more than buying the most popular tool. Google is pushing Gemini onto billions of Android phones to make it the default option. This proves that convenience usually wins. Look at your own workflows. Are you forcing your team to use a tool that takes five extra steps, or are you bringing AI into the software they already use? Keep your tech stack simple.

Source: TechCrunch

MIT Researchers Build a Custom Operating System for Chips

A team at MIT created a new operating system called Fractal to study how computer chips actually work. Standard systems like macOS have too much background noise. This noise makes it hard to observe precise chip behavior safely. Fractal acts like a microscope for hardware. It runs directly on the metal to uncover unknown activities in processors.

My Take: Hardware sets the limit for software. While everyone focuses on shiny new AI tools, researchers are still uncovering blind spots in the chips that power them. You do not need to understand the deep technical details, but you should recognize that the physical machines running AI are still changing. Keep your long-term plans flexible. Where are you vulnerable if your current software changes its rules?

Source: MIT News

State Lawmakers Outpace Congress in Creating New AI Rules

States passed 150 AI-related bills in 2025 while Congress is just beginning to debate a federal law. These state rules require businesses to disclose when they use AI in regulated fields like healthcare. Some states also demand safety steps for chatbots that act as companions or offer mental health support.

My Take: Ignoring the legal side of AI is a fast track to a lawsuit. If you use chatbots for customer service, you must clearly tell your users they are talking to a machine. Careless deployment carries heavy compliance risks. Do you even know the data policies of the customer support tools your team uses? It is time to audit your public-facing AI so you do not unknowingly break any laws.

Source: Goodwin Law

Psychologists Advise Patients on the Limits of AI Therapy Bots

A recent survey found that 77% of psychologists say their patients use AI. More than a third treat it like an extra mental health provider. The American Psychological Association is now guiding therapists to ask patients about their AI use. They warn that chatbots lack privacy and can give harmful advice during a crisis.

My Take: People are desperate for quick answers. They will turn to AI when they cannot get human support. This is a massive shift in customer expectations. If people trust AI with their mental health, they will expect it to handle basic questions about your business. Trust AND verify. 

Source: American Psychological Association

New Copyright Challenges Emerge Over AI Deepfakes

The rapid growth of artificial intelligence has brought complex new issues to U.S. copyright law, especially concerning deepfakes. Legal experts and courts are now struggling to decide how current intellectual property laws apply to synthetic media. In plain terms, it is becoming harder to define who actually owns the rights to AI-generated copies of a person’s voice or likeness.

My Take: The rules around what you can and cannot create with AI are still messy. You cannot safely assume that an AI-generated voice or image is free to use just because your team prompted it. As a business, you need clear guidelines on how you use synthetic media in your marketing. Do you have a AI Use Policy in place to protect your brand from accidental copyright violations?

Source: JD Supra

Tool picks of the week

Workflow & SOP Creator – This tool maps your business operations and builds clear standard operating procedures. It also finds ways to remove manual bottlenecks. We used this exact concept in AI Smart Labs to build standard guidelines so anyone on the team can step in quickly.

ClickUp – Cloud-based, all-in-one productivity and project management platform designed to replace multiple work apps by centralizing tasks, documents, chat, and goals.

Opus Clip -Chop up long form videos into short form content for social media.

Join the Conversation

Got a burning question, a fresh take, or just want to share your latest AI wins? Hit us up at [email protected]. Your insights keep this community growing and thriving!

Have a great day!

-Nicole A. Donnelly

Founder, AI Smart Ventures

AI Strategy – AI Training – AIConsulting – AI Implementation