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Session 00: AI Landscape & Fundamentals ​

Date: August 1, 2025
Duration: 2 hours
Presenters: Damien Li, Eden Ye

πŸ“‹ Overview ​

This inaugural Crossroad AI session provided a comprehensive overview of the current AI landscape, covering major industry reports, breakthrough developments, and fundamental AI concepts. The session featured two main segments: Damien Li's deep dive into AI industry trends and ecosystem architecture, followed by Eden Ye's introduction to basic AI concepts.

Session Recording: View Recording


🎯 Key Topics Covered ​

1. Report & Activity Review ​

Agentic AI - The New Frontier in GenAI (H1 2025) ​

πŸ“‘ Download Report: Agentic AI Executive Playbook

πŸ“‘ Download Report: AI Adoption Survey H1 2025

Key Insights:

  • Agentic AI represents the evolution from passive AI tools to autonomous AI systems
  • Enterprise adoption accelerating in H1 2025
  • Focus on practical implementation strategies

China's "AI+" Action Plan ​

The State Council of China, chaired by Premier Li Qiang on July 31st, passed "Opinions on Deepening the Implementation of the 'Artificial Intelligence +' Action."

Reference: Official Announcement

Americas AI Action Plan ​

πŸ“‘ Download Report: Americas AI Action Plan

Americas AI Action Plan Overview

Strategic Highlights:

AI Investment Priorities

Infrastructure Development

Innovation Ecosystem

Regional Collaboration

Technology Roadmap

Implementation Framework


2. WAIC 2025 Highlights - Part 1 ​

Geoffrey Hinton's Keynote: The "AI Godfather" Speaks ​

Article Reference: Insights from Hinton's WAIC Speech

Key Takeaways:

  1. Knowledge Transfer Speed Has Fundamentally Changed
    • The core of innovation may no longer be "what to think of," but "what to choose" and "what to persist in"
    • Making decisions based on intuition and experience is often more important than waiting for perfect data

Hinton's Core Message

  1. Cultivating "Value Judgment" is More Important Than "Skill Proficiency"

  2. Building Cross-Domain Knowledge Structures

Future Skills Framework


3. Former Google CEO Eric Schmidt Interview - Part 1 ​

Topic: Digital Superintelligence Coming Within a Decade Will Reshape Human Civilization

Watch Full Interview: YouTube Link

Read Analysis: Detailed Interview Translation

Key Predictions:

  • 2025: AI will learn to autonomously construct knowledge frameworks
  • Within 10 Years: Digital superintelligence will enable everyone to have "Einstein in their pocket"
  • Energy Bottleneck: The US AI revolution requires an additional 92 gigawatts of power (equivalent to 92 nuclear power plants); energy, not chips, is the real development bottleneck
  • Reasoning-Time Compute: Allowing the same AI "brain" to think longer produces significantly better results, fundamentally changing competitive dynamics
  • Learning Loop Speed: In the AI era, learning loop speed determines corporate survival; competitors with just a few months' lag will completely fail
  • Open Model Proliferation: Open model weights can be replicated and run on 4-8 GPUs, enabling technology diffusion so even phones can have data center-level intelligence
  • 100,000 Enterprise Software Middleware Companies at Risk: AI direct database connections make middleware connections redundant
  • AI Specialists Timeline:
    • Within 1 year: World-class AI mathematicians
    • Within 2 years: World-class AI programmers
    • Junior programmers will be the first to disappear
  • Attention Economy: Humans are losing deep reading ability, but 6-hour Gemini conversations show AI may help regain focus

4. Open Source & Architecture ​

Context Engineering ​

GitHub Repository: Context Engineering

A new paradigm for optimizing AI interactions through structured context management.

Agentic AI: Understanding the 8-Layer Architecture ​

Reference Article: Visual Guide to Agentic AI's 8-Layer Architecture

Agentic AI Architecture Overview

8-Layer Framework

The 8 Layers Explained:

  1. Infrastructure Layer: Provides computing resources (GPU, CPU), network connectivity, storage systems, and cloud-edge computing integrationβ€”the foundation of all agentic AI systems

  2. Agent Internet Layer: Enables interconnection between AI systems, supporting agent discovery, registration, standardized communication protocols, distributed coordination, and trust/reputation systems

  3. Protocol Layer: Standardizes communication between agents and interaction with external systems, including communication protocols, service discovery & integration, security & authentication, and contract & negotiation systems

  4. Tools and Enrichment Layer: Enables agents to invoke external tools and services, extending their capabilities through function calling, API integration, code generation & execution, external tool integration, and knowledge base access

  5. Cognition & Reasoning Layer: The "thinking engine" of agentic AI, responsible for complex decision-making, problem-solving, and strategic planning, including advanced reasoning engines, planning & strategy formation, decision frameworks, and learning & adaptation mechanisms

  6. Memory & Personalization Layer: Enables agents to maintain persistent memory, learn from experience, and adapt to users or contexts, including working memory, long-term memory storage, personalization engines, and goal & preference management systems

  7. Application Layer: Contains specialized AI agents designed for specific domains, industries, or use cases, such as personal assistants, business agents, creative agents, and analytical agents

  8. Operations & Governance Layer: Provides monitoring, governance, and control mechanisms to ensure agentic AI systems operate safely, ethically, and in compliance with regulations, including monitoring & observability systems, compliance & regulatory frameworks, security & risk management, and governance & policy enforcement


5. Model Developments ​

Seed-X: Specialized Translation Model ​

Hugging Face Collection: Seed-X Models

ByteDance's open-source Seed-X, a specialized translation model with only 7B parameters, achieves translation quality approaching DeepSeek R1 and Gemini Pro 2.5 in human evaluations. Notably, the training process intentionally excluded STEM, code, and reasoning-related data, focusing specifically on translation tasks.

GLM 4.5 - Currently #1 on Hugging Face ​

GLM 4.5 Performance

GLM 4.5 Benchmarks

GLM 4.5 Comparison

Official Announcement: https://z.ai/blog/glm-4.5

X (Twitter): https://x.com/Zai_org

Key Features:

  1. Strong Agent Coding Capability
  2. Super Affordable Pricing & Extremely Fast Speed
  3. Transparency: All test questions and Agent trajectories are public and available on HuggingFace for verification and reproduction (Test Dataset)

Such transparency is rare among model manufacturers and demonstrates great confidence.

Overall Assessment: Should be the most cost-effective model to pair with Claude in the future. GLM-4.5 + CC is likely to become mainstream.

Try it now: https://chat.z.ai/

Qwen3-Coder: Most Agent-Capable Code Model ​

Qwen3-Coder

GitHub: https://github.com/QwenLM/Qwen3-Coder

Hugging Face: Qwen3-Coder-480B-A35B-Instruct

Alibaba officially releases Qwen3-Coder, its most agent-capable code model to date.

Specifications:

  • Available in multiple sizes
  • Most powerful version: Qwen3-Coder-480B-A35B-Instruct
  • MoE (Mixture of Experts) model with 480B parameters and 35B activated parameters
  • Native support for 256K token context window (extendable to 1M tokens via YaRN)
  • Exceptional coding and Agent capabilities

Achievements:

  • SOTA (State-of-the-Art) among open-source models in:
    • Agentic Coding
    • Agentic Browser-Use
    • Agentic Tool-Use
  • Comparable to Claude Sonnet 4

6. Below the Iceberg ​

"Below the Iceberg" is a metaphorical concept describing components or factors hidden beneath visible AI applications or surface functionalities that are not easily perceived by the public but are crucial.

The Coachman and the Car Driver Analogy ​

Horseless Carriage Analogy

The Horseless Carriage Problem:

Whenever a new technology is invented, the first batch of tools built on that technology 
inevitably fail because they often replicate old ways of working, like "Horseless Carriages."

"Horseless Carriage" refers to early automobile designs that heavily borrowed from previous 
horse-drawn carriages. Here's a design drawing of an 1803 steam carriage I found on Wikipedia.

The flaws in this design were unnoticed at the time but are obvious in hindsight.

Imagine living in 1806, riding in such a vehicle for the first time. Even if the wooden 
frame was sturdy enough to get you to your destination, the wooden seats and lack of 
suspension would make the journey unbearable.

You might think: "I would never choose an engine over a horse." And before the automobile 
was invented, you'd be right.

I suspect we're experiencing a similar era with AI applications. Many of them, like Gmail's 
Gemini integration, are useless.

The original horseless carriages were born of "old world thinking"β€”replacing horses with 
engines without redesigning the vehicle for higher speeds. What old world thinking is 
limiting these AI applications?

AI Excels at Tasks with Standard Answers ​

Jason Wei's Insight (Former OpenAI Lead Scientist for o3, now at Meta):

A key pattern in AI progress is emerging ✨

We should shift our attention from "can it solve the problem" to "can we quickly verify 
the answer." This is called: Asymmetry of Verification.

Simply put, some tasks are hard to solve, but once you have a solution, it's easy to 
verify if it's correct.

---

A few examples make this clear:

βœ… Sudoku: Solving requires skill, verifying takes seconds
βœ… Writing Instagram website code: Implementation is hard, but running it once tells you 
   if it's correct
βœ… BrowseComp: Finding the answer requires searching 100 web pages, but seeing the answer 
   immediately tells you if it's correct

These all demonstrate that "verification is far simpler than solving" in most cases.

---

The key insight:
AI is best at tasks where "verification is easy."

Jason Wei summarizes this phenomenon as a law:

The Verifier's Law:
"How efficiently AI can solve a problem depends on the verifiability of that problem."

---

How to judge if a task is easily verifiable? He lists five dimensions:

1️⃣ Objective Truth: Right/wrong is commonly agreed upon, not subjective
2️⃣ Fast Verification: Can judge answer correctness in seconds
3️⃣ Scalable Verification: Can verify tens of thousands of answers in parallel
4️⃣ Low Noise: Verification results highly correspond to answer quality
5️⃣ Continuous Rewards: Answers can be finely ranked and scored

---

You'll find:
βœ… Almost all widely studied and "conquered" AI benchmarks (like ImageNet, GLUE, MMLU) 
   meet the above conditions 1-4.

Conversely, tasks with difficult verification not only progress slowly but lack suitable 
benchmarks (Working on it!!! such as LLM's money-making ability, etc.)

---

More importantly:
Inspired by this, to improve LLM capabilities, we can artificially enhance verification 
asymmetry πŸ‘‡

βœ… Prepare answer keys for math problems
βœ… Prepare test cases for coding problems
βœ… Set reward functions for strategy games

This not only facilitates human supervision but also gives AI clearer training signals.

---

Google DeepMind's AlphaEvolve project is an extreme example of practicing the Verifier's Law:
πŸ” Training set β‰  Test set
βœ… Each problem is constructed in a highly verifiable environment
πŸ“ˆ Drives new breakthroughs in mathematics, algorithms, and science

This is a new paradigm: constructing worlds with clear training signals and letting AI 
optimize itself.

---

The underlying philosophy:

🧠 What AI can learn doesn't depend on humans cleverly designing algorithms, but on 
   whether the problem's feedback mechanism is friendly.

This is very similar to how humans learn and complete tasks.

As Elon Musk says, most failures in life begin with loss of precision. If your task 
description and rewards are more precise, you're more likely to complete the task.

---

From this perspective, future intelligence is "jagged intelligence":
πŸ€– AI will be superhuman in some areas (because they can be verified)
πŸ§β€β™‚οΈ Humans will retain advantages in other areas (because correctness can't be defined)

AI development isn't comprehensive transcendence, but sprinting along the verification track.

---

Want to build stronger AI?
Don't focus on "what problems to solve"
Think about: How to define **verification mechanisms** to help AI converge quickly

The Verifier's Law is the first principle of future AI application design.

Predictions for Future Software Development ​

Reference Article: https://www.woshipm.com/ai/6245593.html

Key Trends:

1. Hierarchical Software Development Future software systems will increasingly adopt layered architectures, with each layer having specialized AI models and tools to handle specific types of tasks:

  • Bottom layer: AI engines specifically handling data and computation
  • Middle layer: Reasoning models handling business logic
  • Top layer: Conversational AI handling user interaction

This layering is not just technical architecture layering, but layering of responsibilities and capabilities.

2. Redesign of Software Development Processes Traditional "requirements analysis-design-coding-testing-deployment" waterfall processes, and "rapid iteration-continuous integration-continuous deployment" agile processes, will be supplemented or replaced by new AI-enhanced processes.

In new processes, AI will participate in every link: requirements understanding, architecture design, code generation, automated testing, intelligent deployment. But the human role won't disappear; it will shift to higher-level decision-making and creative work.

3. Evolution of Software Quality Assurance Methods When AI begins participating heavily in code generation, traditional code review and testing methods may no longer suffice. We need new methods to ensure the quality, security, and maintainability of AI-generated code. This may include AI reviewing AI, new automated testing tools, and quality assurance based on formal verification.

4. Reconstruction of Developer Tool Ecosystem Future IDEs will no longer be just text editors with some development tools, but intelligent development environments integrating multiple AI capabilities. They'll understand developer intent, provide intelligent suggestions, automatically handle repetitive tasks, and even proactively discover and resolve potential issues. The intelligence level of such tools will far exceed our current imagination.

5. Changes in Software Delivery Models When software development becomes easier and faster, user expectations for software will correspondingly increase. They'll expect faster response times, more personalized experiences, and more intelligent features. This will drive software from standardized products to customized services, from one-time delivery to continuous evolution.


7. Eden Ye's AI Fundamentals ​

Basic Concepts

Note: Eden Ye's presentation covered fundamental AI concepts including machine learning basics, neural networks, and practical applications.


πŸ“Š Demo Showcase ​

1. Demo-Level MCP Server ​

Demonstration of a Model Context Protocol (MCP) server implementation showcasing practical AI integration patterns.

2. AI Doc Engine ​

Three practical demonstrations of AI document processing capabilities:

πŸ“„ AI Statistics: Staff Profile

  • Automated data extraction and analysis from staff documents

πŸ“„ AI Searching: Export Shipments by Cutoff Date

  • Intelligent search and filtering of shipment data

πŸ“„ AI Summarization and Analysis: Shipment

  • Comprehensive document summarization and insights generation

Industry Reports ​

  1. Agentic AI Executive Playbook - Comprehensive guide to agentic AI implementation
  2. AI Adoption Survey H1 2025 - Latest enterprise adoption trends
  3. Americas AI Action Plan - Regional AI strategy and initiatives

Articles & Insights ​

  1. Hinton's WAIC Speech Analysis - Insights from the "AI Godfather"
  2. Eric Schmidt Interview Translation - Future of AI and civilization
  3. Agentic AI 8-Layer Architecture - Visual architecture guide
  4. Future of Software Development - Development paradigm predictions

Tools & Open Source ​

  1. Context Engineering - Context optimization framework
  2. Qwen3-Coder - State-of-the-art coding model
  3. Seed-X Translation Models - Specialized translation models

Videos & Media ​

  1. Eric Schmidt Interview - Full interview on AI's future
  2. Session Recording - Complete session recording

🎬 Other Highlights ​

First Digital Human Singer ​

Digital Human Singer

Hollywood Director's Workflow Tools:

Planning Work:

  • Storyboard Management: Figma
  • Production Overview: Google Sheet
  • Historical Research Board: Figma

Creative Work:

  • Prompt Generation: Gemini/ChatGPT
  • Image Generation: Google Imagen 3/Midjourney
  • Image Refinement: FLUX kontext/PS/Canva magic AI
  • Video Generation: Kling 2.1/Veo 3

Post-Production:

  • Material Resolution Upgrade: Topaz
  • Dubbing: Real voice actors + Lipsync (Runway Act One/Heygen)
  • BGM: Real composers + real-time editing adjustments
  • Editing: Adobe Premiere

πŸ“’ Upcoming & Preview ​

SuperCLUE AI Model Evaluation Series - Part 1 ​

48 large models participated in the July general evaluation, with 7 domestic models entering the "Leader Quadrant."

Website: https://superclueai.com/

SuperCLUE Evaluation

Wisdom Advisory Demo Day ​

  • Regular AI Demo Days coming soon (Global level, also at Nanjing Office)
  • Showcase AI ideas from various teams
  • Establish both AI Round Table & Demo Day formatsβ€”the two most popular AI atmosphere-building activities in Silicon Valley

OpenAI Study Mode ​

New learning paradigm from OpenAI enabling personalized, adaptive learning experiences.

Reference: https://openai.com/zh-Hans-CN/index/chatgpt-study-mode/

AdventureX Review - Part 1 ​

"Old school at WAIC, new school at AdventureX"

Article: AdventureX Summer Reflections

DeepSeek V3/R1 Deep Dive ​

Coming in future sessions


πŸ”‘ Key Insights ​

  1. Verification Over Solution: AI excels when verification is easier than solvingβ€”design your AI systems around this principle

  2. Layered Intelligence: Future AI systems will be hierarchical, with specialized models at each layer handling specific responsibilities

  3. Speed of Learning Loops: In the AI era, the speed of your learning and iteration loops will determine competitive advantage

  4. Energy, Not Chips: The real bottleneck for AI advancement is energy infrastructure, not semiconductor capacity

  5. Middleware Crisis: Traditional enterprise software middleware faces existential threats as AI enables direct database connections

  6. Old World Thinking: Many current AI applications are like "horseless carriages"β€”they haven't reimagined the fundamentals for the new paradigm


🎯 What's Next? ​

Looking forward to future sessions! Stay tuned for:

  • Part 2 of WAIC 2025 highlights
  • Part 2 of Eric Schmidt interview series
  • SuperCLUE evaluation deep dive
  • DeepSeek V3/R1 technical breakdown
  • Wisdom Advisory Demo Day showcases

First Session!

This inaugural session set the foundation for our Crossroad AI journey. All materials are available aboveβ€”explore and dive deeper into any topic that interests you!

Questions?

Have questions about the content? Reach out to the Crossroad AI team or join our next session!


Session 00 | August 1, 2025 | AI Landscape & Fundamentals | Damien Li, Eden Ye

Internal WiseTech Global Resource