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ARTIFICIAL INTELLIGENCE

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Global Advisors: a consulting leader in defining quantified strategy, decreasing uncertainty, improving decisions, achieving measureable results.

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Quantified Strategy

Decreased uncertainty, improved decisions

Global Advisors is a leader in defining quantified strategies, decreasing uncertainty, improving decisions and achieving measureable results.

We specialise in providing highly-analytical data-driven recommendations in the face of significant uncertainty.

We utilise advanced predictive analytics to build robust strategies and enable our clients to make calculated decisions.

We support implementation of adaptive capability and capacity.

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Thoughts

Podcast – The Real AI Signal from Davos 2026

Podcast – The Real AI Signal from Davos 2026

While the headlines from Davos were dominated by geopolitical conflict and debates on AGI timelines and asset bubbles, a different signal emerged from the noise. It wasn’t about if AI works, but how it is being ruthlessly integrated into the real economy.

In our latest podcast, we break down the “Diffusion Strategy” defining 2026.

3 Key Takeaways:

  1. China and the “Global South” are trying to leapfrog: While the West debates regulation, emerging economies are treating AI as essential infrastructure.
    • China has set a goal for 70% AI diffusion by 2027.
    • The UAE has mandated AI literacy in public schools from K-12.
    • Rwanda is using AI to quadruple its healthcare workforce.
  2. The Rise of the “Agentic Self”: We aren’t just using chatbots anymore; we are employing agents. Entrepreneur Steven Bartlett revealed he has established a “Head of Experimentation and Failure” to use AI to disrupt his own business before competitors do. Musician will.i.am argued that in an age of predictive machines, humans must cultivate their “agentic self” to handle the predictable, while remaining unpredictable themselves.
  3. Rewiring the Core: Uber’s CEO Dara Khosrowshahi noted the difference between an “AI veneer” and a fundamental rewire. It’s no longer about summarising meetings; it’s about autonomous agents resolving customer issues without scripts.

The Global Advisors Perspective: Don’t wait for AGI. The current generation of models is sufficient to drive massive value today. The winners will be those who control their “sovereign capabilities” – embedding their tacit knowledge into models they own.

Read our original perspective here – https://with.ga/w1bd5

Listen to the full breakdown here – https://with.ga/2vg0z
While the headlines from Davos were dominated by geopolitical conflict and debates on AGI timelines and asset bubbles, a different signal emerged from the noise. It wasn't about if AI works, but how it is being ruthlessly integrated into the real economy.

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Strategy Tools

Fast Facts

Fast Fact: Great returns aren’t enough

Fast Fact: Great returns aren’t enough

Key insights

It’s not enough to just have great returns – top-line growth is just as critical.

In fact, S&P 500 investors rewarded high-growth companies more than high-ROIC companies over the past decade.

While the distinction was less clear on the JSE, what is clear is that getting a balance of growth and returns is critical.

Strong and consistent ROIC or RONA performers provide investors with a steady flow of discounted cash flows – without growth effectively a fixed-income instrument.

Improvements in ROIC through margin improvements, efficiencies and working-capital optimisation provide point-in-time uplifts to share price.

Top-line growth presents a compounding mechanism – ROIC (and improvements) are compounded each year leading to on-going increases in share price.

However, without acceptable levels of ROIC, the benefits of compounding will be subdued and share price appreciation will be depressed – and when ROIC is below WACC value will be destroyed.

Maintaining high levels of growth is not as sustainable as maintaining high levels of ROIC – while both typically decline as industries mature, growth is usually more affected.

Getting the right balance between ROIC and growth is critical to optimising shareholder value.

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Selected News

Term: Context window

Term: Context window

“The context window is an LLM’s ‘working memory,’ defining the maximum amount of input (prompt + conversation history) it can process and ‘remember’ at once.” – Context window

What is a Context Window?

The context window is an LLM’s short-term working memory, representing the maximum amount of information-measured in tokens-that it can process in a single interaction. This includes the input prompt, conversation history, system instructions, uploaded files, and even the output it generates.

A token is approximately three-quarters of an English word or four characters. For example, a ‘128k-token’ model can handle roughly 96,000 words, equivalent to a 300-page book, but this encompasses every element in the exchange, with tokens accumulating and billed per turn until trimmed or summarised.

Key Characteristics and Limitations

  • Total Scope: Encompasses prompt, history, instructions, and generated response-distinct from the model’s vast pre-training data.
  • Performance Degradation: As the window fills, LLMs may forget earlier details, repeat rejected ideas, or lose coherence, akin to human short-term memory limits.
  • Growth Trends: Early models had small windows; by mid-2023, 100,000 tokens became common, with models like Google’s Gemini now handling two million tokens (over 3,000 pages).

Implications for AI Applications

Larger context windows enable complex tasks like processing lengthy documents, debugging codebases, or analysing product reviews. However, models often prioritise prompt beginnings or ends, though recent advancements improve full-window coherence via expanded training data, optimised architectures, and scaled hardware.

When limits are hit, strategies include chunking documents, summarising history, or using external memory like scratchpads-persisting notes outside the window for agents to retrieve.

Best Related Strategy Theorist: Andrej Karpathy

Andrej Karpathy is the foremost theorist linking context windows to strategic AI engineering, famously likening LLMs to operating systems where the model acts as the CPU and the context window as RAM-limited working memory requiring careful curation.

Born in 1986 in Slovakia, Karpathy earned a PhD in computer vision from the University of Toronto under Geoffrey Hinton, a ‘Godfather of AI’. He pioneered recurrent neural networks (RNNs) for sequence modelling, foundational to memory in early language models. At OpenAI (2015-2017), he contributed to real-time language translation; at Tesla (2017-2022), he led Autopilot vision, advancing neural nets for autonomous driving.

Now founder of Eureka Labs (AI education) and former OpenAI employee, Karpathy popularised the context window analogy in lectures and blogs, emphasising ‘context engineering’-optimising inputs like an OS manages RAM. His insights guide agent design, advocating scratchpads and external memory to extend effective capacity, directly influencing frameworks like LangChain and Anthropic’s tools.

Karpathy’s biography embodies the shift from vision to language AI, making him uniquely positioned to strategise around memory constraints in production-scale systems.

References

1. https://forum.cursor.com/t/context-window-must-know-if-you-dont-know/86786

2. https://www.producttalk.org/glossary-ai-context-window/

3. https://platform.claude.com/docs/en/build-with-claude/context-windows

4. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-a-context-window

5. https://www.blog.langchain.com/context-engineering-for-agents/

6. https://www.anthropic.com/engineering/effective-context-engineering-for-ai-agents

"The context window is an LLM's 'working memory,' defining the maximum amount of input (prompt + conversation history) it can process and 'remember' at once." - Term: Context window

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