Ben Lorica and Paco Nathan on Deregulation vs. Regulation & the Future of Foundation Models.
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This is our semi-regular conversation on topics in AI and Technology with Paco Nathan, the founder of Derwen, a boutique consultancy focused on Data and AI. This episode analyzes the implications of the AI Action Summit in Paris, revealing a potential global shift towards lighter AI regulation and a renewed focus on commercial applications. We also explore the evolution of foundation models, highlighting the rise of multimodal AI and reasoning-enhanced models, and discuss the intensifying competition in the foundation model space. The episode also touches on the practical challenges of inference scaling and user experience, concluding with valuable book and essay recommendations for those seeking deeper insights into the future of AI.
Interview highlights – key sections from the video version:
- Deregulation and Interpretation of EU AI Act
- Shift from AI Safety to Commercial Benefits in Europe
- Infrastructure Sustainability and Energy Concerns
- Focus on Application Layer and Foundation Models
- European Strengths in Specific Application Sectors
- Defense Sector and Geopolitical Implications
- Ukraine as a Testing Ground for AI in Warfare
- Machine Learning in Transportation and Emerging Tech Hotspots
- Multi-Modal Foundation Models and Translation Advancements
- Video Generation Models and Creative Applications
- Visual Language Models and Applications in Sports
- Open Source Models and Multi-Modality Importance
- Reasoning Enhanced Models and External Tools
- UX Challenges in External Tooling and Agent Integration
- Competitive Landscape of Foundation Models and Frequent Updates
- Recommendations
Recommendations:
- [Ben] Gambling Man by Lionel Barber
- [Paco] What the history of the web can teach us about the future of AI
Related content:
- A video version of this conversation is available on our YouTube channel.
- Previous monthly roundups with Ben Lorica and Paco Nathan
- Navigating the Global AI Race: Insights from the Paris Summit
- Foundation Models: What’s Next for 2025 and Beyond
- 10 Things to Know About the State of AI Agents
- Decoding Inference Scaling
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