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AI First Principles: Moving Beyond the Hype

February 24, 2026 · Anthony Franco

AI First Principles: Moving Beyond the Hype

The hype cycle is breaking.

For two years, we've been promised that AI is magic. We were told it would write our code, answer our emails, and double our revenue while we slept.

Now, reality is setting in. The chatbots are hallucinating. The automated workflows are breaking in weird, silent ways. The "magic" is turning into a maintenance nightmare.

We are entering the "Trough of Disillusionment," and frankly, it's right on schedule.

The problem isn't the technology. The problem is that we are trying to manage AI the same way we manage software. And AI is not software.

The Deterministic Trap

Traditional software is deterministic. If you write code that says `if x then y`, it will do exactly that, every single time, forever.

AI is probabilistic. It is "fuzzy." It is messy. It is, in many ways, more like a new employee than a new database. It makes mistakes. It has biases. It drifts.

When you try to bolt a probabilistic tool onto a deterministic process, things break.

To fix this, we don't need better prompts. We need better principles.

A Framework for the Mess

That is why I help coordinate AI First Principles (aifirstprinciples.org). It's not a product. It's an open-source set of principles for how to operationalize this technology without losing your mind (or your customers).

It's built on 12 core tenets, but here are the three that solve 90% of the failures I see in the enterprise:

1. AI Inherits Messiness

Define what's prohibited over what's required.

Traditional code requires you to define exactly what should happen. AI is the opposite. Because it is creative and probabilistic, it will find new and interesting ways to screw up that you never predicted. Instead of trying to script every positive interaction (impossible), focus on guardrails. Define the "Never Events." "Never offer a discount over 20%." "Never mention a competitor." Give the AI a playground, but build an electric fence around it.

2. AI Fails Silently

Build feedback loops over post-mortems.

When a database fails, it throws an error. The system crashes. Everyone knows. When an AI fails, it usually does so with perfect confidence. It hallucinates a legal citation or politely gives a customer the wrong price. There is no error log. You cannot "set and forget" AI. You have to audit it. You need human-in-the-loop validation until the confidence interval is high enough, and even then, you need spot checks. If you aren't looking for the errors, you won't find them until the lawsuit arrives.

3. People Own Objectives

Name the owner.

This is the big one. We love to blame "the algorithm." "Oh, the AI denied your loan application." "The model flagged your account." No. A human decided to deploy that model. A human defined the risk parameters. A human chose to prioritize efficiency over nuance. In an AI-First organization, accountability never lies with the machine. It always lies with the person who deployed it. If the AI breaks it, you bought it.

Stop Building "AI Strategies"

You don't need an "AI Strategy" any more than you need an "Electricity Strategy." You need a business strategy that understands the physics of the new tools available to you.

The companies that win won't be the ones with the smartest models. They will be the ones with the strongest principles. They will build systems robust enough to handle the messiness of AI, transparent enough to build trust, and accountable enough to keep humans in the driver's seat.

The hype is over. The work begins now.

Move beyond the magic tricks. Start building on principles.