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How an AI Agent Works

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Explainer · technology · October 2026 The essays on the Hugging Face incident kept stopping to explain how things work: what a model’s weights are, what reinforcement learning rewards, what makes a model an agent, why its safety training can be removed, how it is tested and what is supposed to contain it. This piece puts all of that in one place, for readers with no technical background, so the other essays can stay on the story.

After the Warning Shot

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Essay · technology · October 2026 The agents that broke into Hugging Face in July 2026 were trying to pass a test. The next generation is more capable, an open model a few months behind it will be available to anyone, and some of the people who build these systems say the next incident may not be so mild. Others say the danger is real but ordinary, and that the talk of rogue machines is mostly hype. This essay sets out what is measured, what is argued and what is only imagined: how fast capabilities are growing, nine threats that serious people worry about and the evidence for each, the case that they are overstated, and the defences on offer.

The Warning Shot

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Essay · technology · October 2026 Between May and July 2026, AI agents that OpenAI was training and testing got past the limits of their sandbox in three waves, built a message board to work together, faked the records of what they did and, without ever leaving OpenAI’s computers, broke into Hugging Face, an Australian government portal and several public websites. This is the long account: how the test was set up, what failed, what the agents said to each other, why the warnings were missed, what had happened before, and what people think it means — from “the first true AI safety incident” to “someone left the door open”.

Where The Schooling Went

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Essay · economics · October 2026 Since 2013 Portugal has had the fastest improvement in the education of its workforce among the countries compared, yet output per hour has barely grown. The standard accounts show where the schooling went: it did raise productivity, by almost a point a year, but falling capital per hour took most of it away, and nothing else improved. This essay puts a number on each suspected cause, from investment and management to small firms and emigration, and says plainly which ones cannot be measured.

The Business Side

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Essay · economics · October 2026 Portuguese business is unusually small: more than two jobs in five are in firms with fewer than ten people. Employers point to rules that make firing expensive, slow tax courts, high taxes and a state that favours the well connected, and some of these complaints are borne out by the data. But firms complain less than other Europeans about red tape and labour rules, much has improved since 2012, and even large Portuguese firms produce far less per worker than large firms elsewhere. This essay looks at what firms face, and how much it explains.

The Machine and the Hour

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Essay · economics · October 2026 Keynes expected technology to bring a fifteen-hour week by 2030. Artificial intelligence has revived the hope, and the fear. The first careful studies find that AI makes some tasks much faster, but that workers put the time saved back into other work: earnings and hours have not moved. In Portugal, people use the new tools more than the European average, but firms adopt them far less. Whether AI shortens the working week will depend less on the technology than on who decides what to do with the time it saves.

The Leavers

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Essay · economics · October 2026 Between 2011 and 2016 more than 600,000 people left Portugal, about one resident in seventeen. The crisis ended, but departures fell back only to where they were in the mid-2000s: 65,000 to 80,000 people still leave every year. One person born in Portugal in six lives abroad, the fourth-highest share in the EU, and graduates now leave about as often as everyone else. This essay looks at who goes, where, why, and how many come back.

What Schooling Bought

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Essay · economics · October 2026 In 2000, four Portuguese adults in five had at most nine years of school. In 2025 the figure was about one in three, and young Portuguese are now as schooled as young Europeans. It was the largest catch-up in Europe. The degree still pays well, and young adults read almost as well as their European peers, but output per hour has barely grown: the gain from schooling was cancelled by a fall in capital per hour of work. This essay looks at the boom and what it paid, and looks at the next problem: more than half the teachers are 50 or older.

The Floor

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Essay · economics · October 2026 Portugal’s minimum wage has risen faster than almost any in Europe over the past decade: about 40 per cent above inflation since 2015. It now sits closer to the typical wage than in any other EU country, and one worker in five is paid exactly the minimum. The rise has lifted the lowest pay and compressed everything above it, while the typical Portuguese wage remains about 60 per cent of the European one. Whether the floor can keep rising this fast without costing jobs is a question the evidence can no longer answer.