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<v Speaker 1>Welcome to AI Assembled, the top AI news for small business.

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<v Speaker 1>I'm Chris Daily and each week I bring you the

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<v Speaker 1>most important AI developments that can transform your business. Let's

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<v Speaker 1>dive into this week's top stories.

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<v Speaker 2>Anthropic shipped Claude Opus four point eight on May twenty eighth,

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<v Speaker 2>and what stands out is not the model, it's the framing.

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<v Speaker 2>Anthropic itself called the release quote a modest but tangible

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<v Speaker 2>improvement end quote. That kind of honesty from an AI

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<v Speaker 2>lab is rare, and it sets the tone for what

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<v Speaker 2>is actually in the box on the headline. Coding benchmark

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<v Speaker 2>swe bench Pro Opus four point eight scored sixty nine

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<v Speaker 2>point two percent, almost five points ahead of the previous

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<v Speaker 2>Opus and more than ten points clear of GPT five

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<v Speaker 2>point five and Gemini three point one pro. Even more interesting,

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<v Speaker 2>for any small business that has tried to vibe code

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<v Speaker 2>its own internal tools, Opus four point eight is roughly

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<v Speaker 2>four times less likely than its predecessor to let flaws

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<v Speaker 2>in its own code slide by unremarked in plain English.

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<v Speaker 2>It now tells you when it's not sure. The mixed

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<v Speaker 2>reviews come from two places. First, a smaller, cheaper model

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<v Speaker 2>Gemini three point five Flash Beat Opus four point eight

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<v Speaker 2>on Finance Agent Work. Second, heavy users on Reddit are

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<v Speaker 2>reporting that the new Opus models consume noticeably more tokens

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<v Speaker 2>per task than older versions, partly because of tokenizer changes.

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<v Speaker 2>So even though the headline pricing is unchanged at five

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<v Speaker 2>dollars per million input and twenty five dollars per million output,

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<v Speaker 2>the real world bill can creep up. The fast mode

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<v Speaker 2>tier did get a major price cut, three times cheaper

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<v Speaker 2>than before for a small business. The takeaway is simple,

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<v Speaker 2>if you're paying per token in any Claude powered tool,

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<v Speaker 2>watch your usage this week. The intelligence per dollar is better,

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<v Speaker 2>but the tokens per task may also be higher. While

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<v Speaker 2>Anthropic was launching its modest upgrade, deep Seek was rewriting

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<v Speaker 2>the floor of the entire AI pricing war. On May

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<v Speaker 2>twenty third, the Chinese AI lab deep Seek announced that

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<v Speaker 2>the seventy five percent discount on its flagship V four

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<v Speaker 2>Pro model, which was supposed to expire May thirty first,

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<v Speaker 2>is now permanent. That puts V four Pro at roughly

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<v Speaker 2>one quarter of its original price, with input tokens landing

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<v Speaker 2>as low as forty three cents per million. To put

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<v Speaker 2>that in perspective, that is a fraction of what Claude

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<v Speaker 2>or GPT five point five charges for comparable frontier tier inference.

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<v Speaker 2>Deepseek did not disclose whether the cut was driven by

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<v Speaker 2>new supply of Huawei Ascend nine to fifty chips, which

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<v Speaker 2>it uses to run V four pro, but the signal

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<v Speaker 2>to the rest of the market is clear. The cost

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<v Speaker 2>of high end AI is collapsing fast For a small business.

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<v Speaker 2>This has two implications. If you're paying for an enterprise

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<v Speaker 2>model through a third party tool that supports multiple providers,

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<v Speaker 2>and Microsoft Copilot now offers exactly that, which we'll get

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<v Speaker 2>to in a minute, you may soon see Deepseek as

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<v Speaker 2>an option. And second, every AI tool vendor pitching you

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<v Speaker 2>a subscription this year is now under enormous pressure to

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<v Speaker 2>either drop their price or prove their value. Ask vendors directly,

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<v Speaker 2>what does my monthly bill look like if inference costs

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<v Speaker 2>drop another fifty percent in the next twelve months. If

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<v Speaker 2>they can't answer, that tells you something. Speaking of Microsoft,

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<v Speaker 2>this is the most important small business announcement of the week.

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<v Speaker 2>On May twenty eighth, Microsoft introduced two brand new SKUs,

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<v Speaker 2>Microsoft three sixty five Business Standard with Copilot and Microsoft

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<v Speaker 2>three sixty five Business Premium with Copilot they launch July first.

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<v Speaker 2>The key phrase is built in, not bolted on. Copilot

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<v Speaker 2>will live directly inside word, Excel, PowerPoint and Outlook, and

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<v Speaker 2>it connects to more than one thousand outside business tools Shopify, PayPal, Zero, Docu,

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<v Speaker 2>sign Asana, Canva, Monday, dot Com, Bamboo, HR and on

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<v Speaker 2>and on without the small business owner doing any plumbing.

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<v Speaker 2>The most interesting feature Microsoft is shipping a model chooser.

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<v Speaker 2>You will be able to pick whether your task runs

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<v Speaker 2>on a model from Open AI or from Anthropic Yes,

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<v Speaker 2>including the new Claude Opus four point eight we just

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<v Speaker 2>talked about, and switch between them job by job. That

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<v Speaker 2>means the average small business owner no longer needs to

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<v Speaker 2>maintain separate subscriptions to Chat GPT, claud and Copilot one

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<v Speaker 2>skew multiple frontier models. The premium tier also enforces data labels,

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<v Speaker 2>mark a customer list or a contract as confidential, and

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<v Speaker 2>Microsoft prevents it from being forwarded, copied to personal email,

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<v Speaker 2>or accidentally shared even with the AI. For small businesses

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<v Speaker 2>that have been quietly worried about whether chat GPT was

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<v Speaker 2>leaking their data, this is the answer Microsoft is betting

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<v Speaker 2>will close the deal. Watch for pricing details in the

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<v Speaker 2>coming weeks. If you're already on Business Standard, expect an

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<v Speaker 2>upgrade prompt as soon as July first arrives.

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<v Speaker 3>Now to the biggest shakeup in paid advertising in years.

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<v Speaker 3>At Google Marketing Live last week, Google announced it is

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<v Speaker 3>killing dynamic search ads in favor of a fully AI

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<v Speaker 3>driven system called AI Max for Search. The rollout has

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<v Speaker 3>two phases. Phase one is happening now with US upgrade tools.

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<v Speaker 3>Phase two hits in September, when every remaining eligible legacy

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<v Speaker 3>campaign will be auto upgraded. After that, advertisers will no

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<v Speaker 3>longer be able to create new dynamic search ad campaigns

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<v Speaker 3>in Google Ads, in Google Ads Editor, or through the

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<v Speaker 3>Ads API. That's not a soft sunset. That's a hard deadline.

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<v Speaker 3>Here's what it means for a small business running paid

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<v Speaker 3>search today. You tell Google what keywords to bid on

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<v Speaker 3>and roughly where your ads should show up. Under AI Max,

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<v Speaker 3>Google's AI infers customer intent and chooses the keywords, the

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<v Speaker 3>asset combinations, the landing pages, and the moment to enter

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<v Speaker 3>the auction all on its own. You lose direct control

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<v Speaker 3>of channel placement. You're trading granularity for reach, and Google

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<v Speaker 3>is asking you to trust the black box. Google did

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<v Speaker 3>announce some guard rail features, including something called AI Brief,

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<v Speaker 3>where you can give the AI plain language instructions about

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<v Speaker 3>your brand and conversational attributes in Merchant Center for richer

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<v Speaker 3>product data. But the reporting transparency that paid search managers

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<v Speaker 3>have relied on for a decade is genuinely collapsing. For

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<v Speaker 3>a small business with a tight ad budget, the immediate

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<v Speaker 3>to do list is short, clean up your landing pages

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<v Speaker 3>right now, because that is what AI max actually reads.

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<v Speaker 3>Tighten your product feeds, and consider locking down a percentage

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<v Speaker 3>of budget into exact match keyword campaigns that AI max

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<v Speaker 3>cannot touch, at least until you can see how it

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<v Speaker 3>performs on your account. Open ai is racing into that

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<v Speaker 3>same ad market from the opposite direction. At the end

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<v Speaker 3>of May, OpenAI rolled out a self service ads manager

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<v Speaker 3>for Chat GPT, and this is the line that matters

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<v Speaker 3>for small businesses. The previous fifty one thousand dollars minimum

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<v Speaker 3>spend has been completely removed. That fifty thousand dollar barrier

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<v Speaker 3>was the mote keeping Chat GPT advertising the exclusive playground

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<v Speaker 3>of big brands. It's gone. With the new ads manager,

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<v Speaker 3>any merchant, including a one person operation, can set daily budgets,

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<v Speaker 3>upload creative and target by state, by media market, or

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<v Speaker 3>even by zip code. Open ai also added pixel tracking

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<v Speaker 3>and a conversion API so you can measure real ROI clicks, purchases,

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<v Speaker 3>form submissions, and it's plugging in dynamic call to action

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<v Speaker 3>buttons buy now, book now, register directly into the conversation flow.

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<v Speaker 3>So picture a customer asking chat gpt what running shoes

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<v Speaker 3>to buy for planter fasciitis. That used to be an

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<v Speaker 3>unmonetized conversation. Now it's a paid placement with a shoppable

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<v Speaker 3>carousel attached. Open ai ui is internally targeting two point

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<v Speaker 3>five billion dollars in AD revenue this year, which tells

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<v Speaker 3>you how serious this is for small business owners. Here's

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<v Speaker 3>the practical play. If you sell something local or specific,

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<v Speaker 3>a service in one zip code, a product to a

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<v Speaker 3>narrow audience, Chat gpt ads are now a real channel

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<v Speaker 3>worth testing with a small budget, probably two hundred to

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<v Speaker 3>five hundred dollars in spend will tell you whether it

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<v Speaker 3>works for your business before competitors flood. In story three

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<v Speaker 3>in this block, and one that small businesses outside of

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<v Speaker 3>India should still pay attention to. Meta this month launched

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<v Speaker 3>business Ai inside the WhatsApp business app starting in India.

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<v Speaker 3>The feature lets a small business train an AI agent

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<v Speaker 3>on its own product catalog and FAQ no coding, no

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<v Speaker 3>third party software, and then have that agent handle customer

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<v Speaker 3>questions twenty four hours a day. It answers product questions, captures, leads, books, appointments,

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<v Speaker 3>recommends products, and the business owner can step in and

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<v Speaker 3>take over the conversation at any time. Meta is reporting

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<v Speaker 3>early case studies that are striking. One personal care brand

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<v Speaker 3>says it's late night conversion rate jumped to eighty to

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<v Speaker 3>ninety percent after turning business AI on. A gifting company

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<v Speaker 3>says it's now closing six to seven orders per day

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<v Speaker 3>directly through AI handled queries, with a forty per cent

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<v Speaker 3>increase in sales. The reason this matters even if you're

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<v Speaker 3>not in India ninety one per cent of online adults

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<v Speaker 3>in India already chat with a business weekly, and Meta

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<v Speaker 3>is using that market as the proving ground for a

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<v Speaker 3>feature that is coming to other regions. If WhatsApp or

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<v Speaker 3>Messenger is part of how your customers reach, you expect

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<v Speaker 3>a similar business AI rollout in your market within the

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<v Speaker 3>next twelve months. The lesson to take away now start

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<v Speaker 3>documenting your most common customer questions your pricing rules, your

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<v Speaker 3>shipping policies, and your tone of voice. That is the

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<v Speaker 3>exact input these AI agents need to be trained on,

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<v Speaker 3>and the businesses that have it ready will move first.

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<v Speaker 2>The big small business research story of the week came

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<v Speaker 2>out of Into It. QuickBooks released its twenty twenty six

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<v Speaker 2>AI Impact Report, and it is the most comprehensive look

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<v Speaker 2>so far at how small and mid sized businesses are

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<v Speaker 2>actually using AI. The headline numbers are big. Seventy seven

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<v Speaker 2>percent of small businesses now use AI at least regularly,

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<v Speaker 2>up from forty eight percent in mid twenty twenty four.

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<v Speaker 2>Forty one percent reported revenue increases they attribute to AI,

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<v Speaker 2>seventy four percent reported productivity improvements. The reports surveyed thirty

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<v Speaker 2>four thousand business owners across the US, Canada, the UK

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<v Speaker 2>and Australia, and combine that with anonymized data from over

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<v Speaker 2>five point three million quick Books accounts. Sounds like an

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<v Speaker 2>unambiguous win. But Forbes did the most useful thing anyone

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<v Speaker 2>is done with this report, which is look at the

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<v Speaker 2>fine print. More than half of those businesses describing productivity

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<v Speaker 2>gains base the answer on quote a general feeling that

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<v Speaker 2>the business was better. Fewer than half were tracking specific metrics.

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<v Speaker 2>The productivity number came from self reporting, not time studies.

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<v Speaker 2>The revenue gains were attributed to AI based on correlation,

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<v Speaker 2>not controlled measurement. In other words, businesses are buying AI

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<v Speaker 2>feeling busier and assuming the AI is the cause Forrester

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<v Speaker 2>separately predicts that fifty five percent of AI projects in

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<v Speaker 2>twenty twenty six will miss their intended goals, usually because

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<v Speaker 2>nobody defines success upfront. For a small business. The takeaway

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<v Speaker 2>is uncomfortable, but important. Adoption is not ROI. If you

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<v Speaker 2>cannot tell someone in one sentence what task is now faster,

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<v Speaker 2>how much faster, and by how many dollars per month?

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<v Speaker 2>You are not measuring your AI investment. You are paying

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<v Speaker 2>for it. Meta made one more move worth flagging. On

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<v Speaker 2>May twenty seventh, Meta officially launched paid subscriptions on Instagram, Facebook,

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<v Speaker 2>and WhatsApp, with explicit confirmation that AI subscription tiers are

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<v Speaker 2>coming next. This is the unwind of fifteen years of

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<v Speaker 2>free everything. Meta is betting that some users will pay

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<v Speaker 2>for an ad free experience, premium creator content, and eventually

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<v Speaker 2>exclusive AI features inside the apps. The reason this matters

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<v Speaker 2>to a small business. Paid users see fewer ads, and

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<v Speaker 2>the audience your organic posts and ads reach is about

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<v Speaker 2>to fragment by tier. Customer is the kind of person

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<v Speaker 2>who will pay for an ad free Instagram, Your organic

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<v Speaker 2>strategy needs to work harder, and your paid targeting needs

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<v Speaker 2>to get sharper Watch what audience targeting controls META gives

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<v Speaker 2>advertisers Once subscriptions reach scale, expect higher CPMs for high

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<v Speaker 2>value audiences and start diversifying any business that relies heavily

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<v Speaker 2>on a single meta platform for customer acquisition. So here's

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<v Speaker 2>the bottom line on this week. Frontier AI capability gains

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<v Speaker 2>are getting smaller and more honest. Anthropic literally called its

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<v Speaker 2>release modest. At the same time, inference costs are collapsing.

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<v Speaker 2>Deepseek made a seventy five percent cut permanent, and Microsoft

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<v Speaker 2>is now letting you switch between Open AI and Anthropic

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<v Speaker 2>from inside office on July first. The platforms that small

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<v Speaker 2>businesses depend on for distribution, Google Search, Ads, Chat, GPT, WhatsApp,

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<v Speaker 2>Instagram are all simultaneously layering in AI in ways that

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<v Speaker 2>take control away from the marketer and hand it to

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<v Speaker 2>the model. And QuickBooks just confirmed what a lot of

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<v Speaker 2>owners suspect most small businesses adopting AI cannot actually prove

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<v Speaker 2>its working. Here is your five step action plan for

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<v Speaker 2>the next thirty days. One audit your AI spend right now.

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<v Speaker 2>List every subscription, what it is for and what you

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<v Speaker 2>would lose if you canceled it tomorrow. If you can't

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<v Speaker 2>justify it in one sentence, cancel it. Two. Pick three

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<v Speaker 2>tasks you do every week and time them, then time

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<v Speaker 2>them again with AI doing the work. Use a stopwatch,

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<v Speaker 2>not a feeling. That is your baseline. Three. If you

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<v Speaker 2>run paid search on Google, prepare for AI max. Clean

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<v Speaker 2>up your landing pages, update your product feed, and lock

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<v Speaker 2>in a portion of your budget on exact match keywords

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<v Speaker 2>before the September auto upgrade. Four test chat gpt ads

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<v Speaker 2>with a small budget two hundred to five hundred dollars

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<v Speaker 2>over two weeks targeted to your actual local zip codes

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<v Speaker 2>with pixel tracking turned on. Treat it like a real

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<v Speaker 2>channel before the rest of your market wakes up. Five.

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<v Speaker 2>Document your customer FAQs, your pricing rules, your shipping policies,

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<v Speaker 2>and your brand voice in writing That document is the

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<v Speaker 2>fuel you will need to train a business AI agent

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<v Speaker 2>on WhatsApp, on Messenger, or inside Microsoft three sixty five

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<v Speaker 2>copilot before the end of the year. That's the brief.

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<v Speaker 1>That's it for this week's AI assembled the top AI

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<v Speaker 1>news for small business. If you found this valuable, share

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<v Speaker 1>it with a fellow business owner. If you want a

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<v Speaker 1>hands on group that you can work with on your

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<v Speaker 1>specific AI needs, consider joining Business Success Academy at Freshmediaworks

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<v Speaker 1>dot com slash BSA until next week. Keep innovating and

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<v Speaker 1>keep it real.