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Lumify warns AI readiness must catch up to enterprise adoption

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As artificial intelligence tools move rapidly from novelty to necessity, enterprises across Australia and New Zealand are scrambling to prepare their people – not just their systems – for what comes next.

For Michael Blignaut, an IT and process instructor at Lumify Work New Zealand, this moment feels like déjà vu.

“Cybersecurity is our fastest growing area,” he said, pointing to the same kind of urgency now emerging around artificial intelligence. “Every single one of our partners – AWS, Microsoft, all of them – have got huge amounts of cybersecurity training.”

Lumify Work, formerly known as Auldhouse in New Zealand and DDLS in Australia, is Australasia’s largest provider of corporate IT training, with nearly four decades of experience. It offers education across IT, project management, cybersecurity, and now a growing portfolio in AI. As new technologies go mainstream, organisations are looking for more than just tools – they need a strategy to roll them out responsibly.

“AI has moved from that vague buzzword to a vital business tool,” Blignaut said.

“It’s really reshaping how people think and work.” But he also cautions against a simplistic approach. “It’s not a one-size-fits-all magic wand. Unless companies really think about staff and training, and how they’re going to manage their AI adoption and address ethical concerns, I think there are going to be issues.”

The enthusiasm is undeniable. With tools like Microsoft Copilot and ChatGPT entering daily workflows, demand for AI training is exploding – especially among end users.

“Just using Copilot in emails, in Outlook and in Excel seems to get people very excited,” said Blignaut. “It’s that basic end-user usage where there seems to be a lot of wow and excitement.”

But that excitement can mask new risks. “People either don’t trust it, or they’ve been given the wrong answer by whatever tool they use. But there’s also an overreliance: everything from ‘it can solve all our problems’ to ‘it’s not doing what I need’.”

This rapid adoption has elevated issues like data privacy, governance, and training fit-for-purpose. “AI governance is knowing what people are going to do with data, how companies are going to adopt AI and really use it to the potential benefit of the organisation,” Blignaut said. In regulated sectors or for firms handling sensitive data, that means rethinking internal frameworks – starting with education.

Blignaut’s advice for businesses still unsure about jumping into AI? Start smart.

“It’s about thinking through your adoption strategies—and not being slow about putting in place really great implementation pathways,” he said. “How are we going to get everybody in the organisation to use their tools while staying safe and not opening the company up to breaches in privacy and all of those ethical bits and pieces?”

Assessment tools are a useful starting point. “There are a good number of AI readiness assessments – or Lumify can also help with that,” he said.

“Before you adopt any new technology or tool, there’s that initial awareness to see where the company is at and what they’re actually going to use it for, and making sure everybody’s aware of where the business actually needs AI and how it can assist.”

As with cybersecurity, the upskilling challenge isn’t limited to technical staff. Training now spans everyone—from executives navigating governance to frontline workers learning prompting. “I like having people in class with me,” said Blignaut, “but I think that’s where we’re going to settle: a bit of a mix.”

Hybrid training delivery – once rare pre-COVID – is now standard. Lumify offers formats ranging from one-day intro workshops to five-day technical intensives, delivered in-person, online, or both.

Vendor-specific certifications remain strong, especially those from Microsoft and Amazon. But interest is also growing in tool-agnostic programs, such as AI Certs, an internationally recognised certification body. “We’ve also got a really cool set of vendor-neutral or tool-neutral tools through AI Certs,” Blignaut said. “With all things AI, it’s amazing how things are changing—and changing again. Keeping certifications current and standard is going to be a huge amount of work for them, but so far, so good.”

Blignaut said one skill will become foundational: the ability to prompt AI effectively. “To me, it’s always about the prompting,” he explains.

“Being able to ask the right question, being able to really frame your prompt. Across all of those platforms, being able to ask the right question or prompt – I think that’s where the challenge is going to be for everybody.”

He also emphasises critical thinking and iterative refinement. “AI does hallucinate. Being agile about this thinking – not being shy to iterate and double-check your answers, reframing and re-asking the question in another way and being quite specific—iterating, iterating and iterating again is absolutely important.”

Blignaut believes AI will be a net creator of jobs, but not without disruption. Lumify is already designing reskilling programs to help displaced workers transition into new roles, including non-technical tracks that focus on digital literacy and adaptability.

Ultimately, Blignaut said, the companies that thrive in an AI-enabled world will be those that treat training as a continuous, strategic function – not a one-off fix.

“Before you can lead in AI, you’ve got to understand it,” he said. “And that starts with asking the right questions – of your people, your data, and your systems.”



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Tech Companies Pay $200,000 Premiums for AI Experience: Report

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  • A consulting firm found that tech companies are “strategically overpaying” recruits with AI experience.
  • They found firms pay premiums of up to $200,000 for data scientists with machine learning skills.
  • The report also tracked a rise in bonuses for lower-level software engineers and analysts.

The AI talent bidding war is heating up, and the data scientists and software engineers behind the tech are benefiting from being caught in the middle.

Many tech companies are “strategically overpaying” recruits with AI experience, shelling out premiums of up to $200,000 for some roles with machine learning skills, J. Thelander Consulting, a compensation data and consulting firm for the private capital market, found in a recent report.

The report, compiled from a compensation analysis of roles across 153 companies, showed that data scientists and analysts with machine learning skills tend to receive a higher premium than software engineers with the same skills. However, the consulting firm also tracked a rise in bonuses for lower-level software engineers and analysts.

The payouts are a big bet, especially among startups. About half of the surveyed companies paying premiums for employees with AI skills had no revenue in the past year, and a majority (71%) had no profit.

Smaller firms need to stand out and be competitive among Big Tech giants — a likely driver behind the pricey recruitment tactic, a spokesperson for the consulting firm told Business Insider.

But while the J. Thelander Consulting report focused on smaller firms, some Big Tech companies have also recently made headlines for their sky-high recruitment incentives.

Meta was in the spotlight last month after Sam Altman, CEO of OpenAI, said the social media giant had tried to poach his best employees with $100 million signing bonuses

While Business Insider previously reported that Altman later quipped that none of his “best people” had been enticed by the deal, Meta’s chief technology officer, Andrew Bosworth, said in an interview with CNBC that Altman “neglected to mention that he’s countering those offers.”





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A Recipe for Tech Bubble 2.0

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The tech industry’s history is littered with cautionary tales of irrational exuberance: the dot-com boom, the crypto craze, and the AI winter of the 2010s. Today, Palantir Technologies (PLTR) stands at the intersection of hype and hubris, its stock up over 2,000% since 2023 and trading at a Price-to-Sales (P/S) ratio of 107x—a metric that dwarfs even the most speculative valuations of the late 1990s. This is not sustainable growth; it is a textbook bubble. With seven critical risks converging, investors are poised for a reckoning that could slash Palantir’s valuation by 60% by 2027.

The Illusion of Growth: Valuation at 107x Sales

Let’s start with the math. A P/S ratio of 107x means investors are betting that Palantir’s revenue will grow 107-fold to justify its current price. For context, during the dot-com bubble, Amazon’s peak P/S was 20x, and even Bitcoin’s 2017 mania never pushed its P/S analog to such extremes. shows a trajectory that mirrors the NASDAQ’s 2000 peak—rapid ascents followed by catastrophic collapses.

Seven Risks Fueling the Implosion

1. The AI Bubble Pop

Palantir’s valuation is tied to its AI product, Gotham, which promises to revolutionize data analytics. But history shows that AI’s promise has often exceeded its delivery. The AI winters of the 1970s and 1980s saw similar hype, only to crumble under overpromised outcomes. Today’s AI tools—despite their buzz—are still niche, and enterprise adoption remains fragmented. A cooling in AI enthusiasm could drain investor confidence, leaving Palantir’s inflated valuation stranded.

2. Gotham’s Limited Market

Gotham’s core clients are governments and large enterprises. While this niche offers stability, it also caps growth potential. Unlike cloud platforms or social media, Palantir’s market is neither scalable nor defensible against competitors. If governments shift spending priorities—or if AI’s ROI fails to materialize—the demand for Gotham’s services will evaporate.

3. Insider Selling: A Signal of Doubt

Insiders often sell shares when they anticipate a downturn. While specific data on Palantir’s insider transactions is scarce, the stock’s meteoric rise since 2023 has coincided with a surge in institutional selling. This behavior mirrors the final days of the dot-com bubble, when executives offloaded shares ahead of the crash.

4. Interest-Driven Profits, Not Revenue Growth

Palantir’s profits now rely partly on rising interest rates, which boost returns on its cash reserves. This financial engineering masks weak organic growth. When rates inevitably fall—or inflation subsides—this artificial profit driver will vanish, exposing the company’s fragile fundamentals.

5. Dilution via Equity Issuances

To fund its ambitions, Palantir has likely diluted shareholders through stock offerings. The historical data shows its adjusted stock prices account for splits and dividends, but no splits are noted. This silent dilution reduces equity value, a tactic common in bubble-stage companies desperate to fund unsustainable growth.

6. Trump’s Fiscal Uncertainty

Palantir’s government contracts depend on political stability. With a potential Trump administration’s fiscal policies uncertain—ranging from spending cuts to regulatory crackdowns—the company’s revenue streams face existential risks.

7. Valuation Precedents: The 2000 Dot-Com Crash Revisited

Valuation metrics matter. In 2000, the NASDAQ’s P/S ratio averaged 4.5x. Palantir’s 107x ratio is 23 times higher—a disconnect from reality. When the dot-com bubble burst, companies like Pets.com and Webvan, once darlings, lost 99% of their value. Palantir’s fate could mirror theirs.

The Inevitable Correction: 60% Downside by 2027

If Palantir’s valuation reverts to a more rational 10x P/S—a still aggressive multiple for its niche market—its stock would plummet to $12.73, a 60% drop from its July 2025 high. Even a 20x P/S, akin to Amazon’s peak, would price it at $25.46—a 75% drop. This is not a prediction of doom; it is arithmetic.

Investment Advice: Avoid the Sizzle, Seek the Steak

Investors should treat Palantir as a warning sign, not a buy signal. The stock’s rise has been fueled by sentiment, not fundamentals. Stick to companies with proven scalability, sustainable margins, and valuations grounded in reality. For Palantir? The only question is whether it will crash to $12 or $25—either way, the party is over.

In the annals of tech history, one truth endures: bubbles always pop. Palantir’s 2023–2025 surge is no exception. The only question is how many investors will still be dancing when the music stops.

Data sources: Historical stock price summaries (2023–2025), Palantir’s P/S ratio calculations, and fusion of market precedents.



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