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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.

Our latest

Thoughts

The AI Signal from The World Economic Forum 2026 at Davos

The AI Signal from The World Economic Forum 2026 at Davos

Davos 2026 ( WEF26 ) signalled a clear shift in the AI conversation: less speculation, more execution. For most corporates, the infrastructure stack matters, but it will be accessed via hyperscalers and service providers rather than built internally. The more relevant question is what happens inside the organisation once the capability is available.

A consistent theme across discussions: progress is coming from pragmatic leaders who are treating AI as an operating model change, not a technology project. That means building basic literacy across the workforce, redesigning workflows, and being willing to challenge legacy assumptions about how work gets done.

In the full write-up:

  • The shift from “AI theatre” to ROI and deployment reality
  • The five-layer AI stack (and why corporates mostly consume it via partners)
  • The emerging sixth layer: user readiness — and why it is becoming decisive
  • Energy and infrastructure constraints as real-world brakes on scale
  • Corporate pragmatism: moving beyond an “AI veneer” to process redesign and agentic workflows
  • Labour market implications: skills shifts, entry-level hollowing, and what employers must do now
  • The Global South dimension: barriers, pathways to competitiveness, and practical adoption strategies
  • Second-order risks: cyber exposure, mental health, and cognitive atrophy as governance issues

If you’re leading a business, the takeaway is straightforward: there are strong lessons from pragmatic programs outside of Silicon Valley.

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Strategy Tools

PODCAST: Effective Transfer Pricing

PODCAST: Effective Transfer Pricing

Our Spotify podcast discusses how to get transfer pricing right.

We discuss effective transfer pricing within organizations, highlighting the prevalent challenges and proposing solutions. The core issue is that poorly implemented internal pricing leads to suboptimal economic decisions, resource allocation problems, and interdepartmental conflict. The hosts advocate for market-based pricing over cost recovery, emphasizing the importance of clear price signals for efficient resource allocation and accurate decision-making. They stress the need for service level agreements, fair cost allocation, and a comprehensive process to manage the political and emotional aspects of internal pricing, ultimately aiming for improved organizational performance and profitability. The podcast includes case studies illustrating successful implementations and the authors’ expertise in this field.

Read more from the original article.

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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: Prompt engineering

Term: Prompt engineering

“Prompt engineering is the practice of designing, refining, and optimizing the instructions (prompts) given to generative AI models to guide them into producing accurate, relevant, and desired outputs.” – Prompt engineering

Prompt engineering is the practice of designing, refining, and optimising instructions—known as prompts—given to generative AI models, particularly large language models (LLMs), to elicit accurate, relevant, and desired outputs.1,2,3,7

This process involves creativity, trial and error, and iterative refinement of phrasing, context, formats, words, and symbols to guide AI behaviour effectively, making applications more efficient, flexible, and capable of handling complex tasks.1,4,5 Without precise prompts, generative AI often produces generic or suboptimal responses, as models lack fixed commands and rely heavily on input structure to interpret intent.3,6

Key Benefits

  • Improved user experience: Users receive coherent, bias-mitigated responses even with minimal input, such as tailored summaries for legal documents versus news articles.1
  • Increased flexibility: Domain-neutral prompts enable reuse across processes, like identifying inefficiencies in business units without context-specific data.1
  • Subject matter expertise: Prompts direct AI to reference correct sources, e.g., generating medical differential diagnoses from symptoms.1
  • Enhanced security: Helps mitigate prompt injection attacks by refining logic in services like chatbots.2

Core Techniques

  • Generated knowledge prompting: AI first generates relevant facts (e.g., deforestation effects like climate change and biodiversity loss) before completing tasks like essay writing.1
  • Contextual refinement: Adding role-playing (e.g., “You are a sales assistant”), location, or specifics to vague queries like “Where to purchase a shirt.”1,5
  • Iterative testing: Trial-and-error to optimise for accuracy, often encapsulated in base prompts for scalable apps.2,5

Prompt engineering bridges end-user inputs with models, acting as a skill for developers and a step in AI workflows, applicable in fields like healthcare, cybersecurity, and customer service.2,5

Best Related Strategy Theorist: Lilian Weng

Lilian Weng, Director of Applied AI Safety at OpenAI, stands out as the premier theorist linking prompt engineering to strategic AI deployment. Her seminal 2023 blog post, “Prompt Engineering Guide”, systematised techniques like chain-of-thought prompting, few-shot learning, and self-consistency, providing a foundational framework that influenced industry practices and tools from AWS to Google Cloud.1,4

Weng’s relationship to the term stems from her role in advancing reliable LLM interactions post-ChatGPT’s 2022 launch. At OpenAI, she pioneered safety-aligned prompting strategies, addressing hallucinations and biases—core challenges in generative AI—making her work indispensable for enterprise-scale optimisation.1,2 Her guide emphasises strategic structuring (e.g., role assignment, step-by-step reasoning) as a “roadmap” for desired outputs, directly shaping modern definitions and techniques like generated knowledge prompting.1,4

Biography: Born in China, Weng earned a PhD in Machine Learning from McGill University (2015), focusing on computational neuroscience and reinforcement learning. She joined OpenAI in 2018 as a research scientist, rising to lead long-term safety efforts amid rapid AI scaling. Previously at Microsoft Research (2016–2018), she specialised in hierarchical RL for robotics. Weng’s contributions extend to publications on emergent abilities in LLMs and AI alignment, with her GitHub repository on prompting garnering millions of views. As of 2026, she continues shaping ethical AI strategies, blending theoretical rigour with practical engineering.7

References

1. https://aws.amazon.com/what-is/prompt-engineering/

2. https://www.coursera.org/articles/what-is-prompt-engineering

3. https://uit.stanford.edu/service/techtraining/ai-demystified/prompt-engineering

4. https://cloud.google.com/discover/what-is-prompt-engineering

5. https://www.oracle.com/artificial-intelligence/prompt-engineering/

6. https://genai.byu.edu/prompt-engineering

7. https://en.wikipedia.org/wiki/Prompt_engineering

8. https://www.ibm.com/think/topics/prompt-engineering

9. https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-prompt-engineering

10. https://github.com/resources/articles/what-is-prompt-engineering

"Prompt engineering is the practice of designing, refining, and optimizing the instructions (prompts) given to generative AI models to guide them into producing accurate, relevant, and desired outputs." - Term: Prompt engineering

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