Welcome to Issue #1 of The AI Playbook.

If you run a small or medium-sized business, you've probably heard a lot about AI lately. Maybe your kids talk about it. Maybe your competitors mention it. Maybe you've tried ChatGPT once and weren't sure what to actually do with it after.

That's exactly who this newsletter is for.

Every week, this newsletter takes real AI stories — verified, no hype — and answer the one question that actually matters: what does this mean for my business? Each issue walks you through exactly what to do about it.

Let's dig into this week's three stories.

📋 This Week's Playbook

One of the World's Biggest Consulting Firms Now Has 20,000 AI "Employees"

In January 2026, McKinsey CEO Bob Sternfels announced that the firm — with 60,000 human employees — now runs an additional 20,000 AI agents as part of its everyday operations. They've also started testing job candidates on how well they can work with their internal AI tool, called "Lilli." Candidates are evaluated on judgment and reasoning, not technical know-how. (Source: Fortune)

What this means for your business: You don't need 20,000 AI agents. But if the biggest consulting firm in the world is building AI into every job and every workflow, it's a signal the window to get ahead of your competitors is closing. The good news? Small businesses move faster than big ones. You can try something this afternoon that McKinsey spent months piloting.

One thing you can do today — here's exactly how:

  1. Go to chatgpt.com — it's free, no download needed, works in any browser

  2. Think of one email your team had to write this week that took longer than it should have — a customer complaint, a quote follow-up, anything

  3. Type this into ChatGPT: "I run a [type of business] in Canada. Write a professional, friendly response to this customer email: [paste the email]"

  4. Read what it spits out in about 5 seconds

  5. Edit one or two things to sound like you, and send it

That's it. You just used AI in your business. Build from there.

ChatGPT Got a Major Upgrade — And It Changes What's Possible

OpenAI (the company behind ChatGPT) has released a series of major upgrades to their AI since mid-2025 — the most recent significantly improves its ability to handle multi-step, complex tasks on its own. That means instead of answering one question at a time, it can now take a more involved task — like "research three competitors and write a comparison summary" — and work through the whole thing without you managing every step. (Source: OpenAI)

What this means for your business: The difference between the ChatGPT you might have tried two years ago and the one available today is like the difference between a calculator and a capable assistant. Tasks that used to take your team two hours can realistically be done in 10 minutes. You're not replacing your people — you're giving them a power tool.

One thing you can do today — here's exactly how:

  1. Go to chatgpt.com (free account is fine)

  2. Give it a real task you've been putting off — a job posting, a response to a negative Google review, a summary of your services for your website

  3. Type something like: "I own a [type of business] in [your city]. Write a [job posting / Google review response / website paragraph] for me. Here's the context: [paste whatever background is helpful]"

  4. Read the result. It won't be perfect — edit it. But you'll have a solid draft in under a minute

The goal isn't perfection on the first try. The goal is getting comfortable. Most business owners are shocked how useful it is after just one or two tries.

Ontario Just Made It the Law to Tell Job Applicants If You're Using AI

This one is directly relevant if you're in Ontario and you hire people. As of January 1, 2026, Ontario's Employment Standards Act now requires any employer with 25 or more employees to disclose in their public job postings whether AI is being used to screen, assess, or select applicants. This is real, it's in effect now, and the government is watching. (Source: Osler Law | Source: CBC)

What this means for your business: If you use any kind of software to sort through resumes — even a basic filter in Indeed — you may need to say so in your job postings. If you have fewer than 25 employees, this doesn't legally apply to you yet. But it's coming everywhere, and getting ahead of it costs you nothing.

One thing you can do today — here's exactly how:

  1. Check if you have 25 or more employees in Ontario — if yes, this applies to you now

  2. Look at your current job posting template (or wherever you post jobs — Indeed, LinkedIn, your website)

  3. If you use any AI or software to screen applicants, add this line: "We may use artificial intelligence tools to assist in reviewing applications."

  4. If you're not sure whether your hiring software counts, check with your HR software provider — most will have guidance ready

  5. Full legal details: Littler Law summary here

💡 This Week's Big Takeaway

All three of this week's stories point to the same thing: AI isn't a future problem or a future opportunity. It's happening now, in the businesses you compete with, in the laws that govern how you hire, and in tools that are free to use today.

You don't need to become a tech expert. You need to spend 20 minutes this week actually trying one of the things above.

More next week.

— The AI Playbook Team

If this was useful, forward it to a business owner you know. It's free, and it only takes one good idea to make it worth their time.

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