Hierarchy does more than route information; it also verifies: deciding what information means, what deserves the firm's attention, which outputs can be trusted, and which are worth generating at all. As the ability to generate text, media, and code becomes increasingly commoditized and abundant, the calculation as to whether execution or verification creates the most value for companies evolves too. When execution is cheap, verification becomes more valuable, and firms turn into verification factories: institutions capable of properly steering AI-generated output and standing behind the results. World-class verification factories rely on two assets: unique ground truth and talent. Unfortunately, many firms are adopting AI in ways that erode both of these critical assets. To remain competitive, they need to avoid automating away their expertise and aim to own the'weights' that their production depends on.
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