Pre-reasoning AI models were static assets that depreciated quickly. The advent of reasoning allows models to learn from user interactions, re-establishing the classic internet flywheel: more usage generates data that improves the product, which attracts more users. This creates a powerful, compounding advantage for the leading labs.

To trust an agentic AI, users need to see its work, just as a manager would with a new intern. Design patterns like "stream of thought" (showing the AI reasoning) or "planning mode" (presenting an action plan before executing) make the AI's logic legible and give users a chance to intervene, building crucial trust.

Current AI can learn to predict complex patterns, like planetary orbits, from data. However, it struggles to abstract the underlying causal laws, such as Newtonian physics (F=MA). This leap to a higher level of abstraction remains a fundamental challenge beyond simple pattern recognition.

Instead of opaque 'black box' algorithms, MDT uses decision trees that allow their team to see and understand the logic behind every trade. This transparency is crucial for validating the model's decisions and identifying when a factor's effectiveness is decaying over time.

AI evaluation shouldn't be confined to engineering silos. Subject matter experts (SMEs) and business users hold the critical domain knowledge to assess what's "good." Providing them with GUI-based tools, like an "eval studio," is crucial for continuous improvement and building trustworthy enterprise AI.

The effectiveness of an AI system isn't solely dependent on the model's sophistication. It's a collaboration between high-quality training data, the model itself, and the contextual understanding of how to apply both to solve a real-world problem. Neglecting data or context leads to poor outcomes.

While a world model can generate a physically plausible arch, it doesn't understand the underlying physics of force distribution. This gap between pattern matching and causal reasoning is a fundamental split between AI and human intelligence, making current models unsuitable for mission-critical applications like architecture.

The main barrier to AI's impact is not its technical flaws but the fact that most organizations don't understand what it can actually do. Advanced features like 'deep research' and reasoning models remain unused by over 95% of professionals, leaving immense potential and competitive advantage untapped.

GSB professors warn that professionals who merely use AI as a black box—passing queries and returning outputs—risk minimizing their own role. To remain valuable, leaders must understand the underlying models and assumptions to properly evaluate AI-generated solutions and maintain control of the decision-making process.