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THE RISE OF THE HUMANS AND THEIR AI AGENTS

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What are the sustainable competitive advantages (i.e., strengths) of Humans and AI? What are the weaknesses of Humans and AI? What is the context, the environment, of today’s world where these strengths and weaknesses are being deployed? Where does intelligence saturation and the non-singularity impact the context and the outputs? These four questions are much better questions to ask initially in today’s world where both AI and Humans are increasingly—some say completely—Labor substitution choices in economic models.

This white paper (complete with SWOT analysis) on the Rise of the Humans and Their AI Agents demonstrates:

• Humans will run the AI agents because the Strengths of Humans overcomes/minimizes the Weaknesses of AI...and AI Strengths make the end product of Humans and Capital better = no “mass loss of jobs.”
• Humans should learn AI’s weaknesses/strengths because Human compensation is not going to be wiped out = high paying jobs for us—yes!

There are other factors afoot that need to be kept in mind, too, because they can derail career and business plans, namely: AI saturation points and the other four structural changes (geopolitics, gender roles, labor/location, debt/new currencies), PLUS the speed of change is increasing.


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BOARDS: IN AN AI-HUMAN ENVIRON

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Humans have sustainable competitive advantages, i.e., strengths, as does AI. Looking for the synergies that play to both human and AI competitive advantages while minimizing both human and AI weaknesses leads to better results. Using these synergies, Boards in an AI-human environ can enhance corporate/board value by transforming interactions with the CEO in these areas:

• Strategic: The amount of time and the building by the Board of more useful relationships with the CEO is essential because the speed of change is increasing due to AI working—and improving—at computer-science speeds. This article provides numerous ways Directors can change their actions, change their focus, change their questions to be more effective in overseeing strategic direction.
• Risks: Humans—including Board Directors—have a different cadence than AI...and Agentic AI does not wait for humans: it “plans, reasons, and acts independently toward a goal, using reasoning, planning and feedback loops to continuously adapt to context and outcomes."This article describes seven different emerging risks where Boards can be potent advisors in lessening threats to corporate welfare.
• Governance: Nuances in the way Boards oversee the direction of the CEO are emerging because of developing distrust between the two parties under increasing structural pressures.This article points out three tipping points where Directors can significantly shape constructive Governance policy.


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CAREERS: ARE YOU STRESSED TO THE GILLS?

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Fish gills are organs that allow fish to breathe underwater. With consumer sentiment now at the lowest level ever, prices rising, and career opportunities harder to find in this low-hire, low-fire job market:

Are you feeling like you’re breathing underwater?

Are you “stressed to the gills?”


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CORPORATE: EVERGREEN PREMORTEMS, TO AVOID POSTMORTEMS

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AI, as one of the five structural changes now occurring, is tipping the scale with its reaction speed and accuracy/inaccuracy issues, resulting in organizations not having as much time or certainty about many key factors in their growth or risk strategies.

Previously, executives would base their future growth plans on deep-dive research development, prototypes, etc., then do postmortem analysis on what failed. There's no time to do that process anymore because the speed and complexity of change is increasing.

Given that more than 57% of CEOs worry they’re not adapting fast enough to stay ahead of disruption; 94% of executives say their business models need to change in the next three years; and 50% of CEOs have already made two or more business model transformations in the last five years (AND that only 12% of those business model transformations produced lasting impacts, a statistic that hasn’t changed in 20 years!?!), this article suggests a different tactic that also captures a solution to AI’s speeding up of reaction time dilemma.


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BOARD: 5 STRUCTURAL CHANGES TO ADDRESS

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Structural change is a shift in the fundamental ways an economy functions. For example, think of the 18th century structural change from individual weavers of each item to the mechanization of weaving in a factory setting that enabled mass production. This weaving structural change started the Industrial Revolution that is the basis of our current US and most of the global world’s economies.

Now consider 5 massive structural changes occurring at the same time—welcome to our “new world.”

This article provides a strategic and enterprise risk management oversight lens through which Boards can position their organizations for growth.


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CAREER: STAYING, MOVING ELSEWHERE, OR REINVENTING

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With much change, new opportunities appear because the status quo has been altered, leaving paths open to some phenomenal opportunities.

The question this article explores is how to determine what is the optimal choice for you and how to pursue it now.


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The HQ Companies

WEAK TIES TRULY ARE THE "GROWTH" TIES

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On October 12, 2025, Kathleen was a panelist on BOARD BOUND: A Strategic Guide to Landing Your 1st (& Next) Board Role at the NACD’s Annual Summit national conference in Washington, DC. There was much interest in her description of weak ties usefulness in identifying/securing board opportunities.
After reading this article, please read Dorlisa Flur’s The Magic Matrix: Purposeful Networking to Land Your Board Seat as it’s an excellent example of weak ties in action.

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THE LABOR MARKETS IMPACT: A POLICY PIVOT AFTER FEDERAL RESERVE'S JACKSON HOLE 2025 ECONOMIC SYMPOSIUM?

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Kathleen Graham’s Panelist Remarks During econVue's 8/25/25 Panel Presentation

These topics covered at the Jackson Hole 2025 Economic Symposium all involve factors that impact people significantly AND are all topics that are in flux currently, i.e., major impactors on people’s lives where what the outcome/direction will be is currently unknown. The question then becomes: how will people respond to such uncertainty in the near term? This article covers likely responses from US employers and US employees.


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THE AI EXPLOSION—MY TOP 3 PREDICTIONS FOR 2025

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Kathy Graham was requested by econVue to join as a Contributing Author and Panelist. econVue is a global consortium of economic, geopolitical experts from a wide range of specialties who discuss trending issues. econVue is also one of the top Substack thought leaders in terms of subscription numbers.

Kathy's Top 3 Predictions for 2025, which was all about The AI Explosion, was published on econVue on 1/16/2025. It turned out to be pretty timely given the news that arrived a week later about China's DeepSeek AI.

Kathy's predictions focus on:

1. Escalating Operational Costs: Training AI models will become increasingly expensive ...

2. Legal and Ethical Challenges: Intellectual property disputes, privacy concerns, and biases in AI systems will create new regulatory pressures and risks ...

3. Resource Strains: The growing reliance on AI will dramatically increase energy and water consumption, raising environmental concerns and pushing industries toward nuclear energy and sustainable solutions ...


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LESSENING REPUTATIONAL RISK

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An article co-authored by Kathy Graham that was featured in the Practice section of NACD's Directorship for Boardroom Intelligence magazine.

1. The risk of unmet stakeholder expectations is incinerating business value.

2. Enterprise risk professionals recognize that it is vital to understand the expectations of stakeholders, which is only possible via the reporting of knowledgeable staff who have their fingers on the pulses of those stakeholders. These critical reporting processes are vulnerable to human frailties, such as the biases of management.

3. There is a path to mitigate human capital systemic bias, ensuring more reliable enterprise intelligence for the purposes of reputation risk management. This path is built around three core actions: ...

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THE RISE OF THE HUMANS (PUBLISHED 2008)

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Dr. Izzy Nelkin wrote an article “The Rise of the Humans” for HQ Financial Views, my company’s newsletter, eighteen years ago when the consensus was that human traders were becoming dinosaurs, replaced by emotionless, scalable quantitative program trading driven by computer algorithms. It turns out that many of the proprietary human-less systems “were, in fact, variations of the same model,” which, along with the overreliance on quantitative models and leverage, resulted in a spectacular crash.

There was, of course, a backlash with a resulting re-employment of humans as traders AND of humans in the previously human-less risk management systems that had, unfortunately, not captured the scenarios most likely to result in catastrophic losses.

Much of what Dr. Nelkin says about the events of 2008 still applies to our understanding of the current economic and technical environment.


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ADDITIONAL PUBLICATIONS


THE LAND OF LEMONS AND NUTS.
A children's book on finance, economics, and world trade. ISBN 978-0-9821161-0-4.


CAREERS IN HEDGE FUNDS.
Hedge Fund and Financial Management, Izzy Nelkin, Elsevier, ISBN 0-7506-6007-4.


ALTERNATIVE INVESTMENTS A THROUGH Z.
Financial Engineering News.


THE ROLE OF THE BANKER IN THE AGRARIAN UNITED STATES.
Smithsonian's Financial History magazine.


THE DEVELOPMENT OF U.S. INVESTMENT ASSOCIATIONS.
Smithsonian's Financial History magazine.




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