Block is re-architecting its entire business by treating all functions—from payments to HR—as a collection of capabilities. These are unified and accessed through a central AI agent middleware layer (Goose), orchestrating workflows across previously siloed product and corporate functions.

Don't treat AI as merely a product feature or a productivity tool. Moonpig's tech chief views it as a fundamental infrastructure shift, like the electrical grid. Leaders should focus on fostering an adaptable mindset for systemic change, rather than fixating on today's specific AI applications.

Jack Dorsey's decision to cut Block's workforce by 40% is being framed as the first major "AI cut." The stated rationale wasn't poor performance but the increased efficiency from AI tools enabling smaller teams. This move signals to the tech industry that drastic restructuring is now on the table to adapt to new AI capabilities.

Notion's CEO compares current AI adoption to swapping a water wheel for a steam engine but keeping the factory layout the same. The real gains will come from fundamentally rethinking workflows, meetings, and hierarchies to leverage AI that works 24/7, rather than just layering it onto existing processes.

AI isn't a technology to be applied to existing processes. It's a foundational layer, like an operating system, that fundamentally reshapes how businesses create value, make decisions, and operate. This perspective forces a complete rethink of strategy, not just an upgrade.

The focus on AI automating existing human labor misses the larger opportunity. The most significant value will come from creating entirely new types of companies that are fully autonomous and operate in ways we can't currently conceive, moving beyond simple replacement of today's jobs.

The CEO's primary job shifts from making top-down decisions to designing the company's intelligence system. Their focus becomes ensuring the human employees properly align this system towards the right outcomes, rather than managing chains of command.

The common analogy of AI being "like a website" that every company must adopt may be misleading. The real transformative power of AI could be in enabling entirely new, AI-native businesses that leapfrog incumbents, rather than simply being a feature tacked onto existing products.

Jack Dorsey framed Block's decision to cut nearly half its staff as a strategic move to leverage AI for massive efficiency gains, not a response to financial trouble. The goal is to quadruple gross profit per person, signaling a new era where companies use AI to proactively reshape their workforce.