Distillation, Data Supply Chains, and the New AI Liability Frontier

In this episode of AI in Flow, Claire and Peter unpack a Reuters-backed report alleging Chinese military-linked researchers may be using outputs from leading US AI models to distil smaller defence-focused systems, raising fresh questions about API access, monitoring, and enforcement beyond chip export controls. They also dig into the emerging legal risk around agentic AI and cyber incidents, who pays when an autonomous tool causes harm, and why early court cases could set the industry standard for reasonable care. Plus, the web’s referral economy comes under pressure as Reddit’s CEO criticises Google’s AI Overviews, AI firms turn to physical books as online training data tightens, Alibaba launches Qwen3.8-Max amid intensifying US China model competition, and new research questions whether current agent-safety benchmarks measure what they claim. The conversation closes on slowing IT job growth as spend shifts to AI infrastructure, creator royalty models for opt-in training data, and why incumbents may hesitate to ship disruptive AI when it threatens the core business.About Six & FlowSix & Flow is a digital transformation consultancy helping businesses adapt, grow, and thrive in a fast-changing world. We specialise in AI, CRM, and revenue operations, blending strategy, technology, and creativity to deliver measurable impact. From scaling startups to global enterprises, we partner with ambitious teams to unlock growth through smart automation, customer-centric marketing, and forward-thinking sales enablement. Learn more at sixandflow.com. Hosted on Acast. See acast.com/privacy for more information.