Research & Insight

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Original research, curated industry reads, and annotated perspectives on enterprise AI adoption, governance, and risk, from the 01 research desk.

01 Whitepapers
Whitepaper·01AI LTD · October 2026New

The Token Paradox

Why AI Gets Cheaper per Token and Dearer per Month, and How to Run It at a Cost You Can Defend

Token ParadoxPilot ParadoxVendor Lock-InGovernance Gap

The price of a token has collapsed; the AI bill has not. Agents, reasoning models and long contexts multiply the tokens behind every task faster than prices fall, and the spend is scattered across API keys, seat licences and features inside other software. Five cost leaks explain most of the gap: the loop tax, frontier by default, real time for everything, seats nobody uses and spend nobody can see. One control plane closes them: one gateway, one unit metric, one review.

Whitepaper·01AI LTD · August 2026

Follow the Prompt

A Data-Flow Analysis of the Enterprise AI Stack, and the Intermediaries You Never Vetted

Sanctioned LeakageGovernance GapVendor Lock-In

What looks like one call to the LLM is a chain of intermediaries. LLM routers, AI gateways, and model marketplaces each read your prompt in plaintext to optimise its cost, and each is a place your data can leak, persist, or cross a border you never authorised. Trace one prompt hop by hop and five leak surfaces appear: the decryption point, retention reality, residency blindness, the unvetted sub-processor chain, and the attribution gap.

Whitepaper·01AI LTD · July 2026

The Intelligence Scale

How to Enter New Markets and Outpace Incumbents Without Matching Their Headcount

Intelligence ScaleMarket ExpansionCompetitive Moat

Most enterprises are asking AI to help them do less. This paper makes the opposite case: the real value of AI is scale, not savings. Five competitive asymmetries let a challenger reach markets, distribute scarce expertise, and profitably serve customers its larger rivals cannot, then compound the lead into a moat.

Whitepaper·01AI LTD · June 2026

The AI ROI Mirage

Why Your AI Pilot Succeeded and Your Production Deployment Will Not

Pilot ParadoxSkills IllusionGovernance Gap

Five illusions that inflate AI value at the pilot stage and quietly erode it in production. The productivity dividend from AI is real. It is also narrower, slower, and more expensive to sustain than the business cases that get projects approved. This paper identifies where the gap lives and what to do about it.

Whitepaper·01AI LTD · April 2026

The Agentic Blast Radius

Why Your AI Agents Are Your Next Insider Threat

Non-Human IdentityExcessive AgencySanctioned LeakageGovernance GapShadow AI

Five control gaps that turn autonomous AI from a productivity multiplier into a breach multiplier. Each gap maps to a control enterprises already possess for human users. The defensive work is not inventing new disciplines; it is extending existing ones to a class of actor that the original designs did not anticipate.

Whitepaper·01AI LTD · March 2026

The Five Silent Pitfalls of First-Time AI Adoption

How Enterprises Undermine Their Own Transformation Before It Begins

Shadow AISanctioned LeakageVendor Lock-InGovernance GapSkills Illusion

Between 70-85% of AI initiatives fail to meet their expected outcomes. This paper identifies five structural decisions, made in the earliest stages of adoption, that consistently undermine first-time enterprise AI. They are not technical failures. They are governance, architecture, and competence failures, each avoidable, each compounding over time.

October 2026 Picks

01 Brief · October 2026

Agents, Token Bills and AI-Enabled Breaches: What the 2026 Reports Say

Our reading of both reports, with four checks for this quarter.

Pick 1·McKinsey & Company·August 2026

The State of AI in 2026: On the Road to ROI

Pilot ParadoxExcessive Agency
  • 40% of respondents from large organisations report scaling AI agents, up from 27% a year earlier
  • About 20% report that AI-related operating costs, including token costs, constrained their AI use
  • 32% say their organisation decided against buying software it could now build in-house with agentic coding tools
  • 37% attribute at least some EBIT impact to AI, unchanged in a year; high performers remain about 6% of respondents

01 Annotation

Agents are moving into production faster than results are reaching the P&L: the share reporting EBIT impact has not moved in a year while agent use and token consumption climb. That is the gap our whitepaper The AI ROI Mirage describes, now with a running cost attached, and the report's own advice is to treat operating costs as a design constraint rather than an afterthought.

Maps to: The AI ROI Mirage (Pilot Paradox) and The Agentic Blast Radius (Excessive Agency)

Pick 2·IBM · Ponemon Institute·29 July 2026

IBM Study: One in Four Malicious Breaches are AI-Enabled, Costing Companies $6 Million on Average

Excessive AgencyGovernance Gap
  • One in four malicious breaches was AI-enabled, a 56% increase on the previous year
  • AI-enabled breaches cost $6 million on average, against a $4.99 million global average
  • The attacks were mostly deepfake impersonation and AI-enabled malware
  • More than 20% of organisations reported a breach targeting AI models or applications

01 Annotation

Two findings matter most for AI programmes. Attackers use AI chiefly to impersonate people, which defeats approval processes rather than firewalls, and AI applications are now a target in their own right. Both call for controls on what agents and staff can be talked into, the subject of our whitepaper The Agentic Blast Radius.

Maps to: The Agentic Blast Radius (Excessive Agency) and The Five Silent Pitfalls (Governance Gap)

April 2026 Picks
Pick 1·Wharton AI & Analytics Initiative·April 2026

Two Early 2026 AI Exposures: Lessons for the Future of AI and Data Governance

Excessive AgencySanctioned LeakageNon-Human IdentityGovernance Gap
  • In a security researcher's test on 28 February 2026, CodeWall's autonomous AI agent gained full read-write access to McKinsey's internal GenAI platform Lilli in under two hours
  • Within reach: 46.5 million plaintext chat messages, 728,000 confidential files, 57,000 user accounts and 95 writable system prompts
  • Attack path: 22 unauthenticated API endpoints discovered by the agent, followed by SQL injection into the production database
  • No human operator and no credentials on the agent side. McKinsey responded quickly and reported no evidence of client data access beyond the researcher's test.

01 Annotation

Wharton's April 2026 analysis of the McKinsey Lilli exposure is the clearest published case study to date of the failure pattern we describe in our whitepaper The Agentic Blast Radius. Three of its five control gaps are visible in the timeline. No human insider was needed. An autonomous agent ran reconnaissance, discovered 22 unauthenticated API endpoints, found the SQL injection path and reached full read-write access to the production database in under two hours. It was a researcher's test, and McKinsey reported no evidence of client data access beyond it; the point is what the same path would have given an attacker. That is the Gap 5 scenario made concrete: access that propagates faster than any conventional SOC escalation path can respond to it. The 46.5 million chat messages were not primary data. They were the memory layer of a GenAI platform: the accumulated conversational residue of tens of thousands of consultants working on strategy, M&A, and client engagements. Most organisations classify their CRM, their document management system, and their email archive as sensitive. Very few classify their agent memory, their vector stores, or their conversation logs with the same rigour. The unauthenticated API endpoints are the Gap 2 scenario: permission architecture scoped for the broadest possible task, not the narrowest current one. And the absence of a behavioural kill switch that could have terminated anomalous query patterns against the production database is Gap 5 in its operational form. The lesson is not that McKinsey got it uniquely wrong. The lesson is that the failure pattern (over-privileged agents, ungoverned memory, no machine-speed response capability) is the default pattern in most enterprise agentic deployments right now.

Maps to: Gaps 2, 4 & 5: Permission creep by design, Memory as a data leak, No kill switch

March 2026 Picks
Pick 1·EY US Newsroom·5 March 2026

Autonomous AI Adoption Surges at Tech Companies as Oversight Falls Behind

Shadow AIGovernance GapSanctioned Leakage
  • 52% of department-level AI initiatives operating without formal approval
  • 78% of leaders say adoption is outpacing their ability to manage risk
  • 45% report confirmed or suspected data leaks tied to unauthorised AI tools in the past year

01 Annotation

EY's March 2026 Technology Pulse Poll quantifies what we describe in our whitepaper as the Governance Gap: over half of department-level AI initiatives are running without formal oversight, and 78% of leaders admit adoption has outpaced risk management. Most telling: 45% report confirmed or suspected data leaks from unauthorised AI tools in the past year alone. The "velocity paradox" EY identifies (the tension between speed-to-market and accountability) is precisely why we argue governance must precede deployment, not follow it.

Maps to: Traps 1, 2 & 4: Shadow AI, Sanctioned Leakage, Governance Gap

Pick 2·AI Business · Gartner Data & Analytics Summit·16 March 2026

AI Innovation vs. Adoption: Why They Are Misaligned

Skills IllusionGovernance Gap
  • AI innovation continues to move at a rapid pace, but enterprise adoption remains slow
  • Two root causes: lack of data foundation and lack of governance model
  • Without governance, trust never forms, and without trust, adoption stalls

01 Annotation

Speaking at the Gartner Data & Analytics Summit this month, Deloitte's AI Institute head Beena Ammanath put it plainly: enterprises are caught between pressure from leadership to show AI value and foundations that are not ready. Her two blockers (data readiness and governance) mirror what we identify as the Governance Gap and the Skills Illusion. As she notes: without the right governance model, trust never forms, and adoption stalls. That is the trap. Not the technology; the organisational discipline around it.

Maps to: Traps 4 & 5: Governance Gap, Skills Illusion

Further Reading
McKinsey & Company·August 2026

The State of AI in 2026: On the Road to ROI

Skills IllusionGovernance Gap

The 2026 edition of the McKinsey survey our whitepaper drew on, and it confirms the central argument. Nearly nine in ten respondents report regular use of AI in at least one business function, yet AI high performers (5% or more of EBIT from AI, with significant value reported) remain about 6% of respondents, unchanged from 2025, and the share reporting any EBIT impact from AI is flat at 37%. Adoption metrics are still not capability metrics. The gap between using AI and getting value from it is exactly the terrain 01 operates in.

Maps to: Trap 5 (Skills Illusion) & Conclusion

IBM Security & Ponemon Institute·July 2026

Cost of a Data Breach Report 2026

Governance GapSanctioned Leakage

The definitive quantitative source on what ungoverned AI costs, now in its 2026 edition. The global average breach reached a record $4.99 million, up 12%. Roughly one in five organisations reported an attack on their AI models or applications, and 92% of those lacked proper AI access controls; only 40% of organisations use access controls on AI models and data at all. AI-driven attacks rose 56%, led by deepfake impersonation and AI-enabled malware. The 2025 edition put a price on shadow AI; this one shows the controls are still missing.

Maps to: Traps 2 & 4: Sanctioned Leakage, Governance Gap

CTO Magazine·June 2025

The Great AI Vendor Lock-In: How CTOs Can Avoid Getting Trapped by Big Tech

Vendor Lock-In

This article centres on the Builder.ai bankruptcy as a cautionary tale and provides a practical CTO-level playbook for vendor independence: code escrow, data portability, multi-provider architecture. It complements our whitepaper because it goes deeper on the operational 'how to avoid it' side of vendor lock-in, while our paper frames the strategic 'why it matters.' Builder.ai was not a fringe startup: backed by Microsoft, the Qatar Investment Authority, $445M raised, and still collapsed overnight, stranding its clients.

Maps to: Trap 3: Vendor Lock-In

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