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A daily bite-size selection of top business content.
PM edition. Issue number 1011
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“Everyone carries a shadow, and the less it is embodied in the individual’s conscious life, the blacker and denser it is. If an inferiority is conscious, one always has a chance to correct it… But if it is repressed and isolated from consciousness, it never gets corrected, and is liable to burst forth suddenly in a moment of unawareness.” - Carl Jung - pioneering figure in psychology
Jung described the shadow as the unconscious part of the personality that consists of repressed ideas, weaknesses, desires, instincts, and shortcomings—essentially the darker, hidden side of ourselves that the conscious ego does not identify with or wishes to deny. It is a "cognitive blind spot" within the psyche, representing aspects of the self that one is unaware of or rejects because they don't fit with the socially acceptable or conscious self-image.
The quote explains that when these shadow aspects remain unconscious and repressed, they become "blacker and denser," meaning they grow more intense and potentially destructive. Conscious awareness or acknowledgment of these inferiority feelings or shadow elements gives one the chance to address and integrate them, promoting psychological growth and balance.
Importance of Shadow Integration
Jung emphasized that the path to self-knowledge and individuation—the process of becoming a whole person—requires confronting and embracing the shadow. This is often painful and challenging because it involves recognizing traits, desires, or impulses we typically deny. However, doing so prevents these shadow elements from erupting uncontrollably or damagingly, as they might if suppressed too long.
Jung wrote that the shadow is not solely negative but contains valuable qualities such as instincts, emotional energy, creativity, and realistic insights, which can be reclaimed through awareness. If left unrecognized, the shadow keeps a person psychologically impoverished and disconnected.
Carl Jung’s Background
Carl Gustav Jung (1875–1961) was a pioneering figure in psychology who diverged from Freud to develop his own theories about the unconscious mind. He introduced terms such as archetypes, the collective unconscious, and the personal unconscious, with the shadow being a central archetype representing the hidden dimension of personality.
His work has deeply influenced not only psychology but also philosophy, literature, and spirituality. Jung’s exploration of the shadow was part of his broader interest in the balance of conscious and unconscious parts of the self, aiming for personal wholeness.
In Summary
- The shadow represents the unconscious, repressed, often undesirable parts of ourselves.
- If these parts are conscious, one can work on and correct them.
- If they are repressed, they become more intense and may suddenly emerge in uncontrolled ways.
- Jung saw acknowledging and integrating the shadow as essential to psychological health and self-realization.
- The quote reflects Jung’s belief in the necessity of self-awareness and honesty to prevent the shadow from overwhelming the individual.
This quote encapsulates a key psychological insight from Jung’s analytical psychology, highlighting the importance of self-consciousness in managing the darker sides of human nature and achieving personal growth.

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Persona inflation, as defined by Carl Jung, refers to the psychological phenomenon where an individual becomes excessively identified with their persona—the social mask or role they present to the world—leading to an inflated sense of self that is cut off from deeper, more authentic layers of the psyche. The persona is the social mask we create to meet external expectations. When we identify with it—“I am the CEO, the star, the influencer”—the ego becomes inflated, cut off from shadow and Self.
Jung’s Concept of the Persona
Jung introduced the concept of the persona as the mask or identity we adopt to meet the expectations and norms of society. It acts as a kind of psychological armor, allowing us to function in social roles—such as the CEO, the star, or the influencer. However, this mask is not our true self; it is a construct designed to navigate external realities.
Backstory: How Persona Inflation Occurs
- Identification with the Role: Over time, individuals may become so attached to their persona that they genuinely believe they are the role they play—confusing the mask with their essence. For example, someone who endlessly introduces themselves and behaves as “the visionary CEO” may start to believe this role encompasses their entire identity.
- Ego Inflation: Jung described inflation as a state where the ego’s sense of self-importance grows disproportionately, disconnected from the rest of the psyche—including the shadow (our hidden, unacknowledged aspects) and the Self (a more integrated, whole identity). This happens when the ego merges with the persona or even with powerful archetypes, losing any humility or self-critique.
- Blind Spots and Disconnection: An inflated persona blinds individuals to their own limitations, fallibility, and deeper needs. Jung noted such a person becomes egocentric and “conscious of nothing but its own existence,” unable to see their blind spots or relate authentically to others.
Symptoms and Societal Implications
- Lack of Authentic Relationships: When the ego is wedded to its persona and inflated, it becomes difficult to form genuine connections, as interactions are filtered through the mask rather than the true self.
- Vulnerability and Fragility: Like an overblown balloon, persona inflation is impressive but fragile; it is easily punctured by criticism, failure, or loss of status.
- Denial of Humanness: This state serves as a defense against confronting one's limitations, mistakes, or need for change—resulting in denial of one's own humanity and incompleteness.
- Societal Trends: In the modern era, pressure to project success and cultivate an idealized image—amplified by social media—makes persona inflation a widespread risk.
Jung’s Warning and the Path to Wholeness
Jung consistently warned about the dangers of inflation, emphasizing that it is not always consciously felt; often, its presence is best inferred from symptoms like arrogance, extreme defensiveness, or the reactions of others. The antidote lies in differentiating between the persona and the deeper Self, integrating unconscious elements, and maintaining humility. This ongoing process leads to greater psychological health and authentic living.
In summary, persona inflation is the over-identification with one’s social mask, resulting in an ego that is inflated and disconnected from one’s deeper self, relationships, and authentic human experience. Jung saw this as a common but perilous condition, especially prevalent in environments that reward surface performance over genuine self-knowledge

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“You have to face the lifetrap head-on and understand it. Change also requires discipline. You have to systematically observe and change behaviors every day. Change cannot be hit-or-miss. It requires constant practice.” - Jeffrey E. Young - the creator of schema therapy and a transformative figure in modern psychology
Jeffrey Young developed schema therapy in response to the limitations he observed in traditional forms of cognitive behavioral therapy, particularly with clients experiencing chronic, deeply rooted emotional difficulties. After studying at Yale University and the University of Pennsylvania—and completing postdoctoral work under Aaron Beck, the father of CBT—Young realized that many people struggle with what he called “lifetraps,” now more widely known as early maladaptive schemas.These are enduring, self-defeating emotional and cognitive patterns established in childhood, usually due to unmet core emotional needs.
Young’s work led him to found the Schema Therapy Institute, where he and his colleagues developed integrative methods that blend cognitive, attachment, psychodynamic, and experiential approaches. Central to schema therapy is the insight that awareness alone isn’t enough—patients must actively and systematically challenge and change their ingrained reactions and beliefs. “Lifetraps” or schemas can’t be altered by insight alone; they demand disciplined, daily effort to observe one's thoughts and behaviors and to practice new, healthier ways of responding to life’s challenges.
This quote distills Young’s belief that enduring change is a process, not a single event: it requires direct confrontation with one’s schemas, daily self-observation, disciplined practice, and persistence. The path to change, as Young outlines in both his professional texts (Schema Therapy) and his bestselling self-help book (Reinventing Your Life), is structured, intentional, and ongoing—a philosophy that has helped millions worldwide recognize and heal their deepest emotional wounds.
Leading with EMS or Leading Those with EMS
In leadership and workplace settings, understanding EMS has profound implications. Leaders with unaddressed schemas may unconsciously enact patterns such as perfectionism, avoidance, mistrust, or overcompensation, which can undermine their effectiveness and harm team dynamics. For instance, a leader with an "unrelenting standards" schema might push themselves and their team too hard, causing burnout and resentment. Conversely, an "abandonment" schema might result in over-accommodation or difficulty setting boundaries, diminishing authority and clarity.
Leading individuals with EMS requires attunement, clear boundaries, and consistent, compassionate communication. It is important to recognize when an employee's reactions may stem from deep-seated patterns rather than surface-level conflicts or incompetence. Effective leaders:
- Provide structured feedback and clear expectations.
- Model emotional regulation and transparency.
- Encourage open dialogue about challenges and stressors.
- Offer support for professional development that includes emotional intelligence and self-awareness.
- Avoid reinforcing negative schemas through punitive, inconsistent, or excessively critical management styles.
Leaders who are aware of EMS—in themselves and in others—can foster a work environment that supports psychological growth, resilience, and healthy relational patterns. This not only improves individual well-being but also enhances collective performance, creativity, and loyalty. Ultimately, addressing EMS in the workplace is about creating a culture where people can move beyond self-defeating patterns and realize their full potential, both individually and as part of a team
About Jeffrey Young
- Jeffrey E. Young (born 1950) is a renowned American psychologist best known for developing schema therapy and founding the Schema Therapy Institute.
- He trained at Yale University and the University of Pennsylvania under Aaron Beck, and became deeply interested in helping clients with persistent problems not fully addressed by traditional therapies.
- His approach revolutionized therapy for those with personality disorders, chronic depression, and long-standing relationship patterns, opening new avenues for psychological healing through an emphasis on self-discipline, daily practice, and compassion.
- Young’s books, including Schema Therapy and Reinventing Your Life, have become primary resources for both professionals and the general public, making the process of facing and changing fundamental life patterns widely accessible.
This quote embodies the core message and method of schema therapy: change is possible, but only through purposeful, disciplined, and sustained action.

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Early maladaptive schemas are deeply ingrained patterns of thinking and feeling about oneself and one’s relationships, originating in childhood or adolescence and persisting into adulthood in dysfunctional way. The concept is foundational to Schema Therapy, introduced and developed by psychologist Jeffrey Young in the 1990s. Young and colleagues defined these schemas as “broad, pervasive themes regarding oneself and one's relationship with others, developed during childhood and elaborated throughout one's lifetime, and dysfunctional to a significant degree."
Backstory and Major Analysts
- Jeffrey Young is the primary analyst who identified and categorized early maladaptive schemas, integrating elements from cognitive-behavioral, attachment, psychodynamic, and gestalt models into Schema Therapy.
- Subsequent researchers and clinicians (e.g., Mason, Platts & Tyson) have expanded on Young’s work, exploring how negative relational experiences and early childhood traumas contribute to the development of specific schemas.
- Schema Theory now occupies a central role in understanding how adverse childhood experiences—such as abandonment, criticism, abuse, or neglect—lead to persistent, self-defeating beliefs and emotional patterns.
How This Plays Out in Life
The effects of early maladaptive schemas permeate multiple domains:
Life and Choice
- Individuals may repeatedly make decisions based on underlying beliefs like “I am unworthy” or “others will always leave me,” which can unconsciously guide life choices towards confirming these beliefs.
- For example, someone with an abandonment schema may avoid close relationships or, conversely, cling to unsafe partners, fearing inevitable loss.
Relationships
- Schemas such as mistrust/abuse, defectiveness/shame, or emotional deprivation often lead people to expect disappointment or mistreatment from others, causing patterns of withdrawal, conflict, or unhealthy attachment.
- These beliefs can trigger maladaptive interpersonal styles, influencing the ability to form healthy bonds or communicate effectively.
Careers and Work
- Unrelenting standards and self-sacrifice schemas may drive individuals to perfectionism or chronic overwork, while also undermining self-esteem and satisfaction.
- Early maladaptive schemas are linked to workplace anxiety, depressive symptoms, and a reduced sense of self-efficacy, which may hinder performance and well-being.
Illustration with Examples
A psychology student who experienced critical parenting may develop an unrelenting standards schema, perpetually pushing themselves out of fear they will never measure up. In relationships, a history of emotional neglect may result in a social isolation schema, prompting avoidance of social connection and reinforcing loneliness.
Schema Therapy aims to identify these schemas and shift the underlying patterns, promoting healthier ways of thinking and relating to oneself and others.
In summary: Early maladaptive schemas are enduring, self-defeating patterns shaped by early adversity, described and categorized by Jeffrey Young and other schema therapy analysts. They have far-reaching effects on personal choices, relationships, careers, and psychological health, underpinning many persistent emotional and behavioral problems throughout life

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“Today’s problems come from yesterday’s ‘solutions.’” - Peter Senge - The Fifth Discipline: The Art and Practice of The Learning Organization
Senge’s law encapsulates a key insight from systems thinking: the unintended consequences of solutions, especially those that address only symptoms rather than root causes, can generate even greater problems over time.
Senge illustrates this principle with vivid examples and analogies. For instance, he recounts the story of a canoer trapped in a swirling backwash at the foot of a dam: the canoer’s instinctive but misguided efforts to fight the current only make matters worse. The only path to safety is a counterintuitive one—diving down, rather than struggling at the surface. This metaphor captures how intuitive, short-term problem-solving often intensifies the underlying, systemic issues.
The broader point Senge makes is that organizations (and people) often rely on quick fixes—what he calls “symptomatic solutions”—that deliver temporary relief but fail to address the deeper forces shaping outcomes. For example, a business struggling with declining sales might launch aggressive discounting or cut costs. While these measures may provide a short-term boost, they can erode brand value or employee morale, creating new problems down the line. Over time, organizations find themselves trapped in cycles where yesterday’s fixes become the root of today’s difficulties.
Senge’s insight is that “structures of which we are unaware hold us prisoner." Without a systems perspective, leaders and teams repeatedly apply solutions that only reinforce problematic patterns, trapping organizations in cycles of recurring crises. Only by looking for underlying structures—feedback loops, delayed effects, and hidden interconnections—can organizations find lasting, transformative solutions.
Backstory on Peter Senge
Peter Senge is an American systems scientist, organizational theorist, and Senior Lecturer at MIT Sloan School of Management. He is internationally recognized for his pioneering work in organizational learning and systems thinking.
Senge’s reputation is founded on his landmark book, The Fifth Discipline (1990), where he introduced the concept of the “learning organization”—an entity capable not only of adapting to change but of continually transforming itself by learning at every level. He identifies five “disciplines” necessary for creating such organizations:
- Personal Mastery: Commitment to individual learning and self-development.
- Mental Models: Surfacing and challenging ingrained assumptions and beliefs.
- Building Shared Vision: Creating collective commitment to a desired future.
- Team Learning: Developing group capabilities for dialogue and collaborative problem-solving.
- Systems Thinking: Understanding patterns, feedback loops, and the interconnectedness of organizational life.
Senge’s work synthesized insights from cybernetics, organizational development, and psychological research into a coherent framework for navigating complexity and change. His influence extends globally, shaping how leaders, organizations, and even educational institutions approach learning, adaptation, and long-term change.
Through his writing, teaching, and consulting, Senge has helped countless organizations recognize the pitfalls of linear thinking and reactive solutions, and guided them toward more holistic, systemic approaches to problem-solving and innovation.

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The "Downward Spiral" conveys the self-reinforcing nature of decline, where negative outcomes trigger further negative effects, creating a vicious cycle that accelerates organizational or business deterioration.
Description in Strategy Context:
A downward spiral (or death spiral) is a self-perpetuating cycle in which a series of negative events and poor decisions reinforce each other, leading a business or organization into deeper trouble with each iteration. Here’s how it typically unfolds:
- Initial setback: An organization experiences a blow—such as declining sales, rising costs, or the loss of key talent.
- Reactive cuts: In response, leadership may cut costs, reduce investment, or scale back innovation, hoping to stabilize the business.
- Worsening performance: These moves often reduce morale, product quality, or customer satisfaction, causing results to worsen even further.
- Accelerated decline: Negative outcomes compound: as performance drops, more resources are withdrawn, leading to further decline in capability and competitiveness.
- Vicious feedback loop: Each round of negative results triggers even more severe responses, until the business can no longer recover—a classic vicious cycle.
The death spiral is not only a business phenomenon; it also appears in organizational health, team dynamics, and even sectors facing structural disruption. Examples include companies that fail to adapt to market changes, cut back on innovation, or repeatedly lose top talent—each bad outcome sets up the next.
Systems thinking frames this as a “cycle of disinvestment or deterioration,” where short-term fixes and narrow thinking deplete the core strengths of the organization, making it ever harder to recover.
Related Strategic Thinker: Peter Senge
Senge, through his influential book The Fifth Discipline, pioneered the use of systems thinking in organizations, identifying and describing “reinforcing feedback loops”—the underlying structure of both virtuous and vicious (downward) cycles. He showed how, left unchecked, these loops could create powerful forces driving either sustained growth or relentless decline.

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“Each turn builds upon previous work as you make a series of good decisions, supremely well executed, that compound one upon another. This is how you build greatness.” - Jim Collins - Turning the Flywheel: A Monograph to Accompany Good to Great
The flywheel effect is central to Jim Collins’ research into organizational excellence, first articulated in his book Good to Great. Collins uses the metaphor of a massive, heavy flywheel that requires enormous effort to start turning, but with consistent, patient pushes in the same direction, it incrementally gains speed and momentum. Eventually, the flywheel’s own weight works for you—it spins faster with each push, each rotation building on the last. At a certain point, momentum takes over, and what was once slow-going becomes a force of near-uncontrollable acceleration.
“Each turn of the flywheel builds upon work done earlier, compounding your investment of effort."
The logic of momentum underpins Collins’ flywheel: each action drives the next in a reinforcing loop, creating an inevitable-seeming sequence of growth and progress. The flywheel is not a single dramatic breakthrough or magic moment, but the result of persistent, disciplined effort and focus. In company transformations Collins studied, there was never a single defining action, no grand program, no solitary lucky break. Instead, it was turning the flywheel—consistent efforts, smart decisions, and well-executed plans compounding over time—that led to greatness.
This principle is nearly synonymous with what strategists call a virtuous circle (or cycle): a self-reinforcing loop where positive effects breed more positive effects, creating sustainable competitive advantages. In Collins’ version, the flywheel’s logic is customized for each organization; the key is to rigorously define what specific actions drive momentum in your context. Amazon’s flywheel, for instance, links lower prices to increased customer visits, which lead to more sellers, greater selection, and further efficiency gains.
Other Strategy Thinkers on Virtuous Cycles
The flywheel/virtuous cycle concept, while popularized by Collins, has echoes in earlier and parallel strategic thinking:
- W. Edwards Deming described improvement “cycles” (Plan-Do-Check-Act) for quality and productivity—a precursor to the idea of reinforcing loops.
- Peter Senge’s Fifth Discipline (1990) explores “reinforcing feedback loops” in systems thinking, where actions create conditions that reinforce even more powerful actions.
- Clayton Christensen discussed “resource allocation processes” and how success can generate more resources for innovation and reinvestment, fueling further competitive advantage.
- Michael Porter’s value chain analysis similarly identifies how interlinking activities can reinforce and sustain competitive advantage.
- Chris Zook describes how companies that focus on their core, and then repeat and scale what works, create feedback loops where each cycle of success builds and strengthens the business, making future growth even easier and more likely.
Despite these similarities, Jim Collins is most directly associated with the flywheel metaphor and its systematic application to corporate strategy and transformation.
The Backstory of Jim Collins
Jim Collins is an American researcher, author, consultant, and lecturer focused on business management and company sustainability and growth. Born in 1958, Collins began his career as a faculty member at the Stanford Graduate School of Business, where he received the Distinguished Teaching Award. He later established a management laboratory in Boulder, Colorado, to conduct research into what makes companies thrive over the long term.
Collins is best known for his books:
- Built to Last (with Jerry I. Porras), which explores what makes visionary companies endure
- Good to Great, his most influential work, where he identifies the characteristics and behavioral patterns that distinguish truly great companies from merely good ones.
- Turning the Flywheel, a monograph expanding on the flywheel concept.
His research is marked by rigorous empirical study. Collins and his teams comb through vast amounts of data, conducting years-long studies that compare companies that outperform their peers. His approach is analytical and data-driven, using matched-pair comparisons and case studies to extract patterns and frameworks.
Collins’ impact on the field of strategy and management is significant. His concepts—the flywheel effect, the hedgehog concept, Level 5 leadership—have become part of the modern management lexicon. His frameworks are valued for their clarity, broad applicability, and deep empirical grounding, making him one of the most respected thought leaders in business strategy and organizational development today.

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A virtuous cycle is a self-reinforcing loop in which a series of positive actions and outcomes continually strengthen each other, leading to sustained growth and improvement over time. In business, this means one beneficial event—such as improved performance or cost savings—leads to additional positive effects, such as increased customer acquisition or higher profits. The momentum generated by these reinforcing outcomes creates an upward spiral where each gain fuels the next, resulting in exponential growth and long-term success.
A classic example is Amazon’s business model: lower operating costs enable reduced prices, which attract more customers. Increased sales generate higher profits, which can then be reinvested in further efficiencies—perpetuating the cycle. Similarly, when a company reinvests profits from top-line growth into innovation or market expansion, it triggers a renewed cycle of revenue increases and competitive advantage.
Key characteristics of a virtuous cycle:
- Positive feedback loop where each success amplifies future successes
- Sustainable and exponential business growth
- Contrasts with a "vicious cycle", where negative outcomes reinforce decline
The best-related strategy theorist for the virtuous cycle is Jim Collins. His influential work, particularly in the book Good to Great, describes how companies create "flywheels"—a metaphor for virtuous cycles—where small, consistent efforts build momentum and translate into extraordinary, sustained results. Collins’ articulation of the flywheel effect precisely captures the mechanics of building and maintaining a virtuous cycle within organizations.

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“Before we reach human-level AI, we will have to reach cat-level AI and dog-level AI.” - Yann LeCun - Chief AI Scientist at Meta
Yann LeCun, a pioneering figure in artificial intelligence, is globally recognized for his foundational contributions to deep learning and neural networks. As the Chief AI Scientist at Meta (formerly Facebook) and a Silver Professor at New York University’s Courant Institute, LeCun has been instrumental in advancing technologies that underlie today’s AI systems, including convolutional neural networks (CNNs), which are now fundamental to image and pattern recognition in both industry and research.
LeCun’s journey in AI began in the late 1980s, when much of the scientific community considered neural networks to be a dead end. Undeterred, LeCun, alongside peers such as Geoffrey Hinton and Yoshua Bengio, continued to develop these models, ultimately proving their immense value. His early successes included developing neural networks capable of recognizing handwritten characters—a technology that became widely used by banks for automated check reading by the late 1990s.This unwavering commitment to neural networks earned LeCun, Hinton, and Bengio the 2018 Turing Award, often dubbed the "Nobel Prize of Computing," and solidified their standing as the "Godfathers of AI".
The quote, “Before we reach human-level AI, we will have to reach cat-level AI and dog-level AI,” encapsulates LeCun’s pragmatic approach to artificial intelligence. He emphasizes that replicating the full suite of human cognitive abilities is a long-term goal—one that cannot be achieved without first creating machines that can perceive, interpret, and interact with the world with the flexibility, intuition, and sensory-motor integration seen in animals like cats and dogs. Unlike current AI, which excels in narrow, well-defined tasks, a cat or a dog can navigate complex, uncertain environments, learn from limited experience, and adapt fluidly—capabilities that still elude artificial agents. LeCun’s perspective highlights the importance of incremental progress in AI: only by mastering the subtleties of animal intelligence can we aspire to build machines that match or surpass human cognition.
LeCun’s work continues to shape how researchers and industry leaders think about the future of AI—not as an overnight leap to artificial general intelligence, but as a gradual journey through, and beyond, the marvels of natural intelligence found throughout the animal kingdom.

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AI inference refers to the process in which a trained artificial intelligence (AI) or machine learning model analyzes new, unseen data to make predictions or decisions. After a model undergoes training—learning patterns, relationships, or rules from labeled datasets—it enters the inference phase, where it applies that learned knowledge to real-world situations or fresh inputs.
This process typically involves the following steps:
- Training phase: The model is exposed to large, labeled datasets (for example, images with known categories), learning to recognize key patterns and features.
- Inference phase: The trained model receives new data (such as an unlabeled image) and applies its knowledge to generate a prediction or decision (like identifying objects within the image).
AI inference is fundamental because it operationalizes AI, enabling it to be embedded into real-time applications such as voice assistants, autonomous vehicles, medical diagnosis tools, and fraud detection systems. Unlike the resource-intensive training phase, inference is generally optimized for speed and efficiency—especially important for tasks on edge devices or in situations requiring immediate results.
As generative and agent-based AI applications mature, the demand for faster and more scalable inference is rapidly increasing, driving innovation in both software and hardware to support these real-time or high-volume use cases.
A major shift in AI inference is occurring as new elements—such as test time compute (TTC), chain-of-thought reasoning, and adaptive inference—reshape how and where computational resources are allocated in AI systems.
Expanded Elements in AI Inference
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Test-Time Compute (TTC): This refers to the computational effort expended during inference rather than during initial model training. Traditionally, inference consisted of a single, fast forward pass through the model, regardless of the complexity of the question. Recent advances, particularly in generative AI and large language models, involve dynamically increasing compute at inference time for more challenging problems. This allows the model to “think harder” by performing additional passes, iterative refinement, or evaluating multiple candidate responses before selecting the best answer
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Chain-of-Thought Reasoning: Modern inference can include step-by-step reasoning, where models break complex problems into sub-tasks and generate intermediate steps before arriving at a final answer. This process may require significantly more computation during inference, as the model deliberates and evaluates alternative solutions—mimicking human-like problem solving rather than instant pattern recognition.
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Adaptive Compute Allocation: With TTC, AI systems can allocate more resources dynamically based on the difficulty or novelty of the input. Simple questions might still get an immediate, low-latency response, while complex or ambiguous tasks prompt the model to use additional compute cycles for deeper reasoning and improved accuracy.
Impact: Shift in Compute from Training to Inference
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From Heavy Training to Intelligent Inference: The traditional paradigm put most of the computational burden and cost on the training phase, after which inference was light and static. With TTC and chain-of-thought reasoning, more computation shifts into the inference phase. This makes inference more powerful and flexible, allowing for real-time adaptation and better performance on complex, real-world tasks without the need for ever-larger model sizes.
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Strategic and Operational Implications: This shift enables organizations to optimize resources by focusing on smarter, context-aware inference rather than continually scaling up training infrastructure. It also allows for more responsive AI systems that can improve decision-making and user experiences in dynamic environments.
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Industry Adoption: Modern models from leading labs (such as OpenAI and Google’s Gemini) now support iterative, compute-intensified inference modes, yielding substantial gains on benchmarks and real-world applications, especially where deep reasoning or nuanced analysis is required.
These advancements in test time compute and reasoned inference mark a pivotal transformation in AI, moving from static, single-pass prediction to dynamic, adaptive, and resource-efficient problem-solving at the moment of inference.
Related strategy theorist: Yann LeCun
Yann LeCun is widely recognized as a pioneering theorist in neural networks and deep learning—the foundational technologies underlying modern AI inference. His contributions to convolutional neural networks and strategies for scalable, robust AI learning have shaped the current landscape of AI deployment and inference capabilities.
“AI inference is the core mechanism by which machine learning models transform training into actionable intelligence, supporting everything from real-time analysis to agent-based automation.”
Yann LeCun is a French-American computer scientist and a foundational figure in artificial intelligence, especially in the areas of deep learning, computer vision, and neural networks. Born on July 8, 1960, in Soisy-sous-Montmorency, France, he received his Diplôme d'Ingénieur from ESIEE Paris in 1983 and earned his PhD in Computer Science from Sorbonne University (then Université Pierre et Marie Curie) in 1987. His doctoral research introduced early methods for back-propagation in neural networks, foreshadowing the architectures that would later revolutionize AI.
LeCun began his research career at the Centre National de la Recherche Scientifique (CNRS) in France, focusing on computer vision and image recognition. His expertise led him to postdoctoral work at the University of Toronto, where he collaborated with other leading minds in neural networks. In 1988, he joined AT&T Bell Laboratories in New Jersey, eventually becoming head of the Image Processing Research Department. There, LeCun led the development of convolutional neural networks (CNNs), which became the backbone for modern image and speech recognition systems. His technology for handwriting and character recognition was widely adopted in banking, reading a significant share of checks in the U.S. in the early 2000s.
LeCun also contributed to the creation of DjVu, a high-efficiency image compression technology, and the Lush programming language. In 2003, he became a professor at New York University (NYU), where he founded the NYU Center for Data Science, advancing interdisciplinary AI research.
In 2013, LeCun became Director of AI Research at Facebook (now Meta), where he leads the Facebook AI Research (FAIR) division, focusing on both theoretical and applied AI at scale. His leadership at Meta has pushed forward advancements in self-supervised learning, agent-based systems, and the practical deployment of deep learning technologies.
LeCun, along with Yoshua Bengio and Geoffrey Hinton, received the 2018 Turing Award—the highest honor in computer science—for his pioneering work in deep learning. The trio is often referred to as the "Godfathers of AI" for their collective influence on the field.
Yann LeCun’s Thinking and Approach
LeCun’s intellectual focus is on building intelligent systems that can learn from data efficiently and with minimal human supervision. He strongly advocates for self-supervised and unsupervised learning as the future of AI, arguing that these approaches best mimic how humans and animals learn. He believes that for AI to reach higher forms of reasoning and perception, systems must be able to learn from raw, unlabeled data and develop internal models of the world.
LeCun is also known for his practical orientation—developing architectures (like CNNs) that move beyond theory to solve real-world problems efficiently. His thinking consistently emphasizes the importance of scaling AI not just through bigger models, but through more robust, data-efficient, and energy-efficient algorithms.
He has expressed skepticism about narrow, brittle AI systems that rely heavily on supervised learning and excessive human labeling. Instead, he envisions a future where AI agents can learn, reason, and plan with broader autonomy, similar to biological intelligence. This vision guides his research and strategic leadership in both academia and industry.
LeCun remains a prolific scientist, educator, and spokesperson for responsible and open AI research, championing collaboration and the broad dissemination of AI knowledge.

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