20/07/2026
This week, AI wrote the patch list, and the attack.
Here's what actually mattered in AI for IT (14–20 July)
Update on our last post: the gate finally opened. In our 6 July post we said OpenAI's GPT-5.6 was still locked to 20 vetted partners, with a public launch "expected before the end of July." It landed early: GPT-5.6 (Sol, Terra, Luna) is now rolling out publicly via ChatGPT and the API. The lockdown then launch cycle we've tracked since 30 June has run its full course.
The "cheaper AI" race just had a second DeepSeek moment. Two weeks ago we flagged that serious AI is getting dramatically cheaper, pointing at China's low-cost models. This week Moonshot AI released Kimi K3 (16 July), a 2.8-trillion-parameter model billed as the largest open-source model ever, benchmarking neck and neck with the top systems from OpenAI and Anthropic. It rattled AI and chip stocks, and the full weights go public on 27 July. Frontier grade AI is getting cheaper and more open fast.
AI found a record 570 Windows flaws in a single month. Microsoft's July Patch Tuesday fixed 570 vulnerabilities its largest update ever and credits AI-assisted scanning for the surge. Three are zero-days (two already being exploited), including privilege escalation bugs in SharePoint and Active Directory Federation Services, plus a 9.6-severity remote code ex*****on flaw in Copilot itself. If you run Microsoft 365, patching just became a bigger, faster-moving job.
Researchers: AI has gone from "assistant" to "operator." Check Point's AI Security Report 2026 (14 July) warns that AI now runs live attacks writing malware, powering phishing-as-a-service, and driving a roughly 5x rise in prompt-injection attempts. It also found the average business quietly runs ~10 AI apps a month, many unsanctioned, with risky, data-exposing prompts doubling to 4%. Shadow AI is now a boardroom risk:
Update on Microsoft's "multi-model" bet. Two weeks ago we noted Microsoft's $2.5-billion "Frontier" push toward a multi-model world. This week the strategy sharpened: Microsoft is reportedly coaching its salesforce to pitch its own in-house models as cheaper and more efficient than OpenAI, Google, and Anthropic "selling the full end-to-end system." Multi-model, sure, but every vendor still wants to be your default.
What it means for SMEs: The same AI that's getting cheaper and more capable is also finding, and exploiting, security holes faster than ever. The smart play hasn't changed: patch fast (that M365 update is bigger this month for a reason), get visibility on the AI tools your team is already using, keep your data governed and portable, and harden your Microsoft 365 tenant before you stack AI on top of it.
That's the work we do at LITSA. Let's talk.