Bad AI: Ex Box

Jul 16, 2025

AI Newsletter: Xbox AI Fails, Kimi K2, Knowledge Bases & Perplexity Browser

AI IS ACCELERATING - GET READY

Let's help you understand the WTF of AI and how it helps YOU and your organisation grow. Ready, set, agent.

This week:

😱 Bad AI: Ex Boxed

💭 AI Models: Kimi K2

🔥 Knowledge Bases: Get The Playbook

✨ AI Tools: Perplexity Comet Browser

💡 News, Trends & Insights


 

BAD AI: EX BOXED

Microsoft just laid off over 9,000 people, including Xbox designers - so naturally, they used an AI franken-image to advertise for…Xbox designers.

Looks alright to me. Well, apart from the woman magically coding on the back of her monitor, on a desk fading into the abyss - she's also wearing iPod-era wired Apple headphones, ffs. It's an image Picasso himself would call technically confusing.

Who posted it? Probably a senior Xboxer with a healthy satirical bent, or a sentient Midjourney bot went design-postal after a 3-day bender.


Was it satire? Unclear. It could be mocking itself or it could be a hidden piece of performance art disguised as a cry for help from beyond the singularity, in .png format.

What did the Internet say?
Designers: 'I'm kerning for the old days'
Everyone else: 'Where can I get one of those cordless workstations'?

If I see an image this cursed?
Report it to HR, IT and probably an exorcist to be on the safe side.


 

AI KNOWLEDGE BASES: Playbook Download

Your employees spend a full day each week hunting for internal information.

And we've all somehow decided this is normal. It’s not.

McKinsey found that companies lose an entire workday per employee, every week, just searching for existing answers. That isn't a 'people' problem - it's a systems problem.

Advanced AI Knowledge Bases turn scattered internal knowledge into immediate, accurate answers - fully secure, always current, and tailored by role. If you want insights into setting them up, we have the playbook.

You can download it here - it covers:

✅ Real-world RAG, explained simply

✅ Why Copilots and Wikis fall short

✅ The leading tech stacks

✅ Advanced fine tuning options

We build advanced AI knowledge bases for organisations. Get in touch for a conversation about making your team more efficient.


 

AI MODELS: Kimi K2

Chinese startup Moonshot have released an open source model - Kimi K2 (I know, what is it with AI models and naming?) it's gaining some early buzz and outperformed ChatGPT and Claude in coding and reasoning.

Key points:

  • Performance: Achieved higher scores than GPT-4.1 and Claude Opus across standardised coding and maths tests.
  • Task-oriented: Designed specifically for structured tasks like code generation, debugging, workflow automation, and technical reasoning.
  • Efficiency: Activates only a small fraction of parameters per task, reducing infrastructure costs and speeding up performance (it's a mixture-of-experts model with 32 billion activated parameters and 1T total parameters).
  • Open deployment: Freely available weights, cost-effective and its built on Deepseek's existing open architecture.

What it means for businesses:

Companies have more and more credible open-source alternatives to closed US-centric models. But adopting Chinese models like K2 means carefully balancing performance gains against geopolitical concerns around data sovereignty, trust, and regulatory compliance.

Wider context:

This release accelerates the global open vs closed-source AI competition, positioning China at the front of model efficiency innovation. US models have the high ground still but face tougher competition - not just on performance but price and scale too.


 

AI Tools: Perplexity Comet Browser

Perplexity has launched Comet, an AI‑powered browser that integrates a chat‑assistant, agents and more, directly into your browsing flow.

Key points:

  • Conversational: Sidebar assistant answers questions in‑page, so no more context‑switching - and features Perplexity's AI search engine as the default.
  • Comet assistant: An agent that can automate tasks like summarising emails, navigating web pages or organising tabs in your sidebar.
  • Private: Data stays local; Perplexity claims it doesn’t train on your browsing or usage history.
  • Currently expensive: It's available to subscribers who pay $200 per month for Perplexity Max, with broader access rolling out via invite over the summer. You can join the waitlist here. 

What it means for businesses:

This is a step towards AI-native workflows. Instead of bouncing between ChatGPT, Google, and docs, teams get an interface that thinks, finds, and acts. Local-first data privacy will be important for uptake - though the steep price is a barrier.

Wider context:


This launch marks a key pivot: search, browsing, and AI agents are converging. Comet enters the AI‑browser wars alongside Google, OpenAI, Dia and others. This is the battle for what the Perplexity CEO, Aravind Srinivas, calls 'infinite retention' - if a user can do everything in one place, why go anywhere else.


 

WHAT'S NEW - News, Insights & Trends

> Adobe digital trends report

> WeTransfer deny AI training on uploads

> Amazon launches a new IDE

> What is the hottest job in town?

> Nvidia is selling chips to China again


AI Newsletter Q&A

Q: What happened with Microsoft’s Xbox AI job ad?
A: After laying off thousands of staff, including Xbox designers, Microsoft bizarrely used an AI-generated image to promote new Xbox design roles. The image featured surreal details, like someone coding on the back of a monitor—raising questions about taste, timing, and the misuse of AI visuals.

Q: Why are AI knowledge bases important for productivity?
A: Employees lose around a day a week searching for internal answers. AI knowledge bases solve this by turning your existing documents into instant, role-specific answers—saving time and improving efficiency across the business.

Q: What is the Kimi K2 AI model and how does it compare to others?
A: Kimi K2 is a high-performing open-source model from Chinese startup Moonshot. It outscored GPT-4.1 and Claude Opus in coding and reasoning tasks, offering strong performance for structured work - though use in the West may raise data trust and compliance concerns.

Q: What does the Perplexity Comet browser do differently?
A: Comet blends browsing and AI assistance into one tool. It summarises emails, answers questions in-page, and protects user privacy by processing data locally. It’s part of a wider shift towards AI-native interfaces, though its current $200-a-month price makes it niche for now.

Q: What’s the big trend in AI this week?
A: Open-source AI is rising fast, AI-generated visuals are facing backlash, and tools like Perplexity are reshaping how we browse, search and interact online. The gap between hype and real-world business value is starting to narrow.


G3NR8 is an impact consultancy for the exponential age. We help organisations implement AI for maximum returns on investment.

Work with us to:

  • Rapidly improve your sales and marketing function with an AI ecosystem - from horizon scanning to content repurposing and active campaign planning.
  • Help each employee find information 60% faster with advanced AI knowledge bases - secure, and based on your business logic and data.
  • Create valuable MVPs that don't sit in silos and work immediately to generate productivity gains and ROI in weeks, not months.
  • Train your teams - we've trained 150+ large organisations in advanced generative principles and implementation.

Drop us a line for a chat about productivity gains, cost savings, growth and how AI can scale your business.


 

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