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Reading Room

Vol. 1 · No. 67 Tuesday, November 3, 2026 aikansh.com

This week's theme

Knowing what, and whom, you can actually trust

Four pieces on trust: how many agents you can really watch, what your data means to them, which AI gains survive a fair test, and whose side a broker takes.

A 6-minute read · 2 stories

In this issue

01 Front Page

AI-built baselines quietly erased many science papers' gains

A language model built comparison baselines that erased most of 36 papers' claimed AI gains.

Outside your usual reading: this is a research paper, not a company announcement, but it hands you a question worth asking every time you read about an AI model beating some test. Researchers built a system that automatically generates the simple comparison a new method has to beat before anyone should believe it is actually an improvement. That comparison is called a baseline, the plain method a new approach must outperform to prove it is really better, and the paper's point is that weak baselines have been quietly making ordinary results look like breakthroughs across science.

The team pulled 36 tasks straight out of peer-reviewed papers published in Nature, Science, and the Cell family of journals. Every one of the 36 was a case where scientists had proposed a new deep learning method (an AI model built from many stacked layers that learns patterns from data) to solve a real research problem, the kind of prediction task common in the physical and life sciences. For each task, the researchers had a language model, the general kind of AI that reads and writes plain text, read about the problem and build its own simple baseline from scratch, with no human telling it what that baseline should look like.

The results were blunt. The automatically built baselines recovered a median of 95.5 percent, and an average of 85.7 percent, of the entire gap between a trivial guess (the simplest possible answer, such as always predicting the average result) and the score the published deep learning model actually achieved. In plain terms, most of the improvement scientists were crediting to their new method was, on average, something a simple AI-built comparison could already reach. In 12 of the 36 studies, the simple baseline matched or beat the deep learning model outright. That means in a third of these peer-reviewed papers, the headline result may not represent real progress at all.

Nothing about this is specific to AI hype or journalism. These were peer-reviewed papers in some of the most selective journals in science, vetted by expert reviewers, and the pattern still showed up in a third of them. That is the real finding: checking the baseline is a blind spot even careful review does not catch, because building a serious comparison is extra work nobody is required to do.

The paper states plainly that "there have been numerous cases in which apparent progress has turned out to be an artifact of omitted or missing baselines," and frames the automated check as a practical fix: human peer reviewers cannot keep up with the volume of papers being published, so a tool that asks what the simplest explanation for a result would be can catch inflated claims before they get published.

The transferable habit for him is the same one the paper is really about. Every AI benchmark (a standard test everyone runs) claim he reads, in this edition or anywhere else, implicitly depends on what it was compared against. The headline number is only half the story. The other half, almost always left out, is how strong the thing it beat actually was.

there have been numerous cases in which apparent progress has turned out to be an artifact of omitted or missing baselines.
via arXiv.org →
02 Insights

What a buy-side broker actually does, and what it costs

Buy-side brokers work only for the buyer, and their fees follow three distinct patterns.

Outside your usual reading: this is not a news story, it is an explainer page he bookmarked about how buy-side business brokers work, and it maps directly onto the SMB (small and medium-sized business) acquisition search he is running himself. A buy-side broker works only for the buyer. That is the core distinction from a normal, sell-side broker, who works for the owner and is paid to get the highest possible exit price. A buy-side advisor instead runs the mechanical process of finding, evaluating, and securing a business that matches the buyer's own criteria: industry, size, location, and business model.

The explainer lays out five steps a buy-side broker actually runs. First, establish search criteria: mapping out target industries, EBITDA ranges (profit before interest, tax, and write-downs, a standard way to size a small business), geography, and business model. Second, source the hidden market: running active, cold outreach to owners who have not listed their business for sale, which produces deals with no competing bidders. Third, vet and filter leads: pulling initial financials and checking revenue stability before ever presenting an opportunity. Fourth, model deal structures: running valuations, checking working capital, and structuring offers using tools like seller financing, earn-outs (where part of the price depends on the business hitting future targets), and clawbacks (price reductions if those targets are missed). Fifth, coordinate the deal team: managing deadlines and information flow between the buyer's accountants, transaction attorneys, and SBA lenders, lenders backed by the Small Business Administration and a common way to finance a small business purchase.

The fee structures matter just as much as the steps, because they show where a broker's incentives actually point. The most common is retainer plus success fee: a monthly retainer, typically $2,500 to $7,500 or more depending on the size of the target business, funding dedicated search hours, plus a success fee at closing calculated as a percentage of the purchase price, usually on a sliding scale that takes a bigger cut of the first part of the price and a smaller cut of each additional part. The retainer paid during the search is normally credited back against that final fee. The second model is hourly advisory, $150 to $350 or more per hour, aimed at buyers who run their own outreach but want a broker for valuation, offer structuring, or negotiation specifically. The third model is success-only, paid purely at closing, and the explainer flags its real risk plainly: if that broker is relying entirely on co-brokering businesses already listed for sale, splitting the seller's own commission, the broker has a built-in conflict of interest to push the deal through regardless of what diligence turns up. The advice given is to ask directly whether the broker requires exclusivity and whether they actually run outbound outreach, or just work listed deals.

The note also lists three places to find one: Axial, a deal-matching platform best suited to lower middle-market deals where a buyer can submit precise criteria and get private, matching introductions; the IBBA Directory, a professional association for finding credentialed Certified Business Intermediaries who do dedicated buy-side work; and the BizBuySell Broker Directory, a plain marketplace listing of active local brokers with existing networks in a specific region.

None of this says he should hire one. It says exactly what a broker would do for the money, and exactly how to tell a broker working only for him apart from one quietly working the seller's side too.

Because buy-side brokers work solely for you, their compensation must align with your long-term success rather than simply closing any deal.
via his own note →
The Last Word
A fair baseline is the cheapest audit you will ever run.
The Desk Report

How this edition came together — from bookmarks and feeds to the page.

228links gathered
40read by the desk
4made the edition

Where they came from

On the cutting-room floor — 36 links read but not run this week

Quality over volume: most links get a second look and a pass. The ones that made it earned their place.

Reading Room — every Sunday

The week's AI signal in 6 minutes — what happened, why it matters, and what to do with it. Curated by someone who actually builds, not a feed algorithm.