May 2025

More and more Asian economies are racing to the top, as the International Monetary Fund’s April outlook projects that India would soon surpass Japan’s fourth place in the global economic order and join China and the U.S. in the world’s top five spots.

On a micro level, individual Asian mid-cap companies, according to an article by Citigroup, are quickly expanding beyond the global manufacturing bases of Japan and China, with their booming factories having a presence in India, Vietnam, Indonesia, Malaysia and Thailand. Additionally, Asian companies are adopting new technologies 8-12 years ahead of the West, according to Citi’s 2023 report.

This rapid growth in Asian businesses is driven by fast-paced innovation and high adaptability, but what truly lies at the heart of these dynamic companies is the fact that, across the board, they practice a business culture that encourages durability and longevity, which is characteristic of traditional and often ancient Eastern values. These unique values, found across the continent, contribute to the fact that many of the world’s oldest, continuously operating companies are actually located in Asia.

As the fourth generation heir of a business that is more than 100 years old in Hong Kong, I believe that learning about aspects of the culture that are practiced across Asia is beneficial for Western entrepreneurs. Here I’ve picked five take-home messages.

Related: I’m the CEO of a Company Generating $1.7 Billion Annual Revenue. This Ancient Philosophy Is My Secret for Business and Leadership Success.

1. Balance the Yin and Yang using Daoism

One of the most important business concepts in Asia comes from Daoist philosophy, a Chinese way of life that originated from the sixth century BCE. For entrepreneurs in particular, the concept of wu wei, which translates as “effortless action,” is crucial as it teaches about agility and acting in harmony with the ebbs and flows of the universe. According to this concept, businesses should prioritize efficiency and effectiveness and know which tasks are urgent, instead of taking too much control over every aspect of a company’s operations.

This philosophy also emphasizes the importance of balancing opposite forces, the masculine Yang and the feminine Yin, so they can co-exist in a positive way. In practice, an example can look something like building a business on “masculine” traits such as competitiveness, unwavering focus and risk-taking, and balancing it with “feminine” traits such as introspection, sensitivity and care. Only possessing these traits is not enough, but entrepreneurs will have to learn the art of moving between one faction and another seamlessly, especially when facing challenging market conditions.

2. Practice patience instead of anger

Patience is the virtue of success in many cultures, and this is no different in Asia. An article written for the Australian Institute of Company Directors shows that many successful Indian business leaders believe that using patience to react to a situation that would normally provoke anger is key to achieving progress. This belief is derived from the Bhagavad Gita, an ancient Indian text dating back to the second century BCE, which explains that when a negative event occurs, one must not be bewildered by delusion, which is a reaction that comes from anger. Instead, having a clear mind and controlling one’s reaction to the event will ensure that well-reasoned actions are taken, which will ensure preservation instead of destruction.

Patience will also mean that important lessons can be learned from adverse events, which are normally perceived to be “failures” in business. The Indian way of having a patient mindset is that every failure has the potential to be converted into success, with calm and reasoned thinking instead of reactive impulses that cloud our judgment.

Related: In the Age of Instant, Here’s Why Leaders Must Learn the Art of Patience

3. Understanding the Confucian art of giving face

Many of China’s flourishing businesses follow Confucian values, which originate from the country’s way of life propagated from the sixth century BCE — which remains relevant today. This Chinese social code has also influenced businesses across Korea, Japan and Vietnam. Among the most important Confucian values practiced in Asian business ethics is the concept of giving face, otherwise known as mianzi.

This is the belief that making someone look good, i.e., “giving face,” is key to establishing harmonious relationships between parties you’re doing business with. While protecting your own image is considered to be one of the highest ideals under this belief system, “giving face” to another is also equally as important, by carefully considering their thoughts and showing care. Mianzi is crucial to every business relationship out there, especially where clients and customers are involved, and is key to receiving support from others and achieving longevity.

4. Applying the Buddhist Law of Attraction

Among the most visible principles practiced by Asian businesses is the Buddhist Law of Attraction, which says that our thoughts and intentions shape our experiences and reality. Arising from Buddhist philosophies founded by Siddharta Gautama Buddha in the fifth century BCE India, the Law of Attraction simply means that entrepreneurs should define their businesses carefully and thoughtfully.

A company is seen as more than an organization or instrument set up to make money; instead, it is visualized as an agent that could deliver beneficial effects to the community in which it operates. This is something that my company, the Kowloon Motor Bus Company, especially believes in, since it is performing a crucial service to its customers rather than operating purely as a profit-driven business. If your purpose is clear, then success will follow, is what I’ve learned in my own experience as a business leader.

Related: 5 Things I Learned About Business From an Asian Monastery

5. Learning how “to lift together”

An important aspect of Indonesian and Malaysian business cultures is the concept of gotong royong, which translates as “to lift together,” an ancient principle of communal work and collaboration within a community. This concept originated in the island of Java and has been known and practiced within the Malay Archipelago since the 117th century BCE.

This concept is still practiced today and is a cultural value that creates important cohesion between business partnerships. For example, Indonesian startups have utilized the concept of gotong royong to create strategies where separate businesses come together for mutual benefit instead of competing alone within profitable industries.

In an era of dwindling attention spans and relentless digital noise, brands face an uphill battle to capture — and keep — consumer interest. Traditional advertising no longer cuts it; passive engagement is out, and interactive, reward-driven experiences are in.

Enter gamification, the strategic use of game-like elements in non-game contexts to drive participation, loyalty and habit formation. At its core, gamification taps into fundamental human psychology — our innate desire for achievement, competition and instant gratification.

By leveraging challenges, points, leaderboards and rewards, brands are turning mundane interactions into compelling experiences that keep users coming back. But how exactly does gamification work on the brain, and why is it so effective at deepening brand engagement?

The neuroscience of gamification

The secret lies in dopamine, the neurotransmitter responsible for motivation, pleasure and reinforcement learning. Every time we achieve a goal — whether completing a level in a game or unlocking a discount — our brain releases dopamine, creating a sense of accomplishment and urging us to repeat the behavior.

Gamification exploits this loop by:

• Providing Clear Goals – Whether it’s earning points, unlocking badges, or climbing a leaderboard, structured objectives give users a sense of direction.
• Offering Instant Feedback – Progress bars, notifications and celebratory animations reinforce effort, keeping users engaged.
• Creating Variable Rewards – Like a slot machine, unpredictable rewards (discounts, exclusive content) trigger compulsive engagement.
• Fostering Social Competition – Leaderboards and social sharing tap into our drive for status and recognition.

When executed well, these mechanics don’t just encourage one-time interactions — they cultivate habit loops, where users return without conscious thought, much like checking social media or playing mobile games.

Related: Gamification Is Eating The World

The role of operant conditioning

Gamification is deeply rooted in B.F. Skinner’s operant conditioning, which explains how rewards and punishments shape behavior. Brands use:

• Positive Reinforcement (e.g., Starbucks rewarding stars for purchases)
• Negative Reinforcement (e.g., Duolingo’s streak penalties)
• Intermittent Rewards (e.g., McDonald’s Monopoly’s randomized prizes)

This conditioning keeps users engaged longer than predictable rewards, as the brain remains in a state of anticipation.

From retail giants to fitness apps, companies are integrating gamified elements to boost retention, increase conversions and turn casual users into loyal advocates. Here’s how:

1. Starbucks: Loyalty as a game

Starbucks’ rewards program is a masterclass in gamified retention. Users earn “stars” for purchases, unlock tiers (Green, Gold) and receive personalized challenges (“Buy three lattes this week for bonus stars”). The tiered system leverages loss aversion — once users reach Gold status, they’re incentivized to keep spending to maintain perks. The result? Starbucks boasts over 32 million active rewards members in the U.S. alone.

Key Takeaway:

• Tiered rewards create aspirational goals.
• Personalized challenges increase purchase frequency.

2. Duolingo: Making learning addictive

Language-learning app Duolingo thrives on gamification. Streaks punish missed days, XP points quantify progress and animated celebrations reward consistency. The app even uses light punishment mechanics (a broken streak) to guilt users into returning. This approach has helped Duolingo amass over 74 million monthly active users, proving that even education can be habit-forming.

Key Takeaway:

• Loss aversion (streaks) drives daily engagement.
• Micro-rewards (XP, badges) make progress tangible.

3. Nike: Turning fitness into a competition

Nike’s Run Club and Training Club apps use challenges, leaderboards and milestone badges to transform exercise into a social game. By allowing users to compete with friends and share achievements, Nike taps into social validation, a powerful motivator. The result? Increased app engagement translates directly to brand loyalty and product sales.

Key Takeaway:

• Social competition enhances motivation.
• Milestone rewards (badges, trophies) reinforce commitment.

4. McDonald’s Monopoly: Scarcity and instant wins

McDonald’s long-running Monopoly campaign blends instant rewards (free fries) with long-term goals (winning big prizes). The limited-time nature of the game creates urgency, while the tactile act of peeling stickers delivers instant gratification. The campaign has become a cultural phenomenon, driving repeat visits and boosting sales.

Key Takeaway:

• Instant + delayed rewards maximize engagement.
• Scarcity tactics (limited-time offers) drive urgency.

5. LinkedIn: The subtle gamification of professional networking

Even professional platforms use gamification. LinkedIn’s profile completion meter nudges users to add more details, while endorsements and “Top Voice” badges incentivize activity. The platform’s “Who’s Viewed Your Profile” feature plays on curiosity and status-seeking behavior.

Key Takeaway:

• Progress tracking encourages profile optimization.
• Social proof (endorsements) increases engagement.

The dark side of gamification

While gamification can deepen engagement, it’s not without ethical concerns. When overused, these techniques can foster compulsive behaviors, particularly in vulnerable users.

One major issue is the loot box controversy. Video games like FIFA Ultimate Team and Overwatch have faced backlash for loot boxes, which function like gambling by offering randomized rewards. Some countries have banned them, arguing they exploit psychological vulnerabilities.

Another concern is how social media platforms like Instagram and TikTok use infinite scroll and variable rewards (likes, comments) to keep users hooked. Studies link excessive use to anxiety and decreased attention spans.

This raises questions about responsibility in gamified marketing. Brands must balance motivation with ethics. Best practices include transparency (clear reward odds, no deceptive mechanics), user control (opt-out options, time limits) and avoiding exploitative designs such as dark patterns.

Related: 7 Ways to Boost Customer Retention Through Email Gamification

The future of gamified branding

As AI and AR evolve, gamification will become even more immersive. Emerging trends include AI-powered personalization, where platforms like Netflix — already using algorithms to recommend content — could introduce dynamic challenges (e.g., “Watch three sci-fi movies this week for a badge”) and adaptive rewards such as personalized discounts based on user behavior.

Augmented reality scavenger hunts are also on the rise. Brands like Pokémon GO’s sponsors (Starbucks, Sprint) have successfully driven foot traffic using AR. Future applications might feature virtual pop-up shops where users scan QR codes to unlock deals or interactive billboards that offer coupons through mini-games.

Blockchain and tokenized rewards are reshaping loyalty programs. These could include NFT-based rewards like exclusive digital collectibles and tokenized points that are tradeable on crypto exchanges.

Finally, the metaverse is paving the way for persistent brand worlds. As virtual environments expand, brands may create permanent branded spaces — such as Nike’s Nikeland in Roblox — or host virtual events with XP systems where users can earn VIP status by attending multiple events.

Play to win

Gamification isn’t just about points and badges; it’s about hacking human motivation. By understanding dopamine-driven feedback loops, brands can craft experiences that don’t just capture attention — they own it. The lesson is clear: in the battle for consumer mindshare, the most successful brands won’t just sell products — they’ll design play.

Yet, with great power comes responsibility. As gamification grows more sophisticated, brands must prioritize ethical design, ensuring experiences enrich rather than exploit. The future belongs to those who can balance engagement with empathy, turning users into loyal advocates, not addicts.

The question is, are you playing the game — or is the game playing you?

What would happen if your company’s sales dropped significantly for an entire month? Or if prices suddenly increased by 20%? If those possibilities make you nervous, you’re probably missing an important safety net — a 90-day cash flow buffer.

All businesses should have enough money set aside to cover 90 days of business expenses, even if you have zero money coming in. When running a small business, unexpected challenges like price hikes, supply chain problems or new tariffs can occur at any time.

Having a financial buffer isn’t a luxury — it’s necessary for any business that wants sustained long-term growth. When you have a financial cushion to fall back on, you can avoid panicking and make good decisions when things change.

Related: How Much Cash Do You Need for Your Business’s Safety Net?

Why planning matters

The current economic landscape is unpredictable, often changing due to factors outside your control. You’ve probably seen many examples of this over the past five years:

• The pandemic caused massive supply chain disruptions, shipping delays and labor shortages

• Rising interest rates impacted the cost of borrowing and cash flow projections

• Recent tariff changes have affected the price of importing and exporting certain items

Many small businesses look profitable on paper but fail because they don’t have enough cash to get them through financial rough spots. According to the SBA, a lack of cash flow is still one of the top reasons many companies fail.

Having a clear plan and a financial buffer helps businesses navigate these ups and downs more easily. Financial preparation isn’t a sign of fear — it’s a sign of resilience.

How a 90-day buffer helps your business

A 90-day cash flow buffer isn’t just about surviving hard times — it’s about giving yourself the ability to grow with confidence. First, having a cash reserve allows you to keep the business running even if your income suddenly drops off.

If a major customer pays late or sales dip for a month, you can still cover essential expenses like rent and payroll. That means you won’t have to rely on high-interest credit cards or drastic cost-cutting measures just to stay afloat. You can take action from a place of reason instead of panic.

A 90-day buffer also gives you more options when making business decisions. If a great opportunity comes along, you can move quickly without worrying about how it’ll affect your cash flow. This kind of flexibility helps you stay focused on long-term goals rather than reacting to short-term pressure.

Finally, a healthy cash reserve builds trust with your vendors and business partners. You can continue paying your employees and vendors on time, which shows that your company is reliable. It also demonstrates to customers and potential lenders that your business is financially secure, which can open the door to even more opportunities.

Related: 7 Easy Ways To Manage Cash Flow Surprises In Your Business

The risk of a smaller buffer

Operating with just 30 days of cash flow may seem like enough until something goes wrong. When you’re operating on such thin margins, even a single late payment from a customer can create a ripple effect. Suddenly, you find yourself struggling to pay vendors or cover payroll.

With so little cash on hand, many businesses make rash decisions like laying off staff or cutting their marketing budget. These actions can help you get by in the short term, but at the expense of long-term growth.

The pandemic showed how quickly a lack of cash flow can become a crisis. During the early months of the pandemic, many small businesses with limited cash reserves had to close their doors within weeks of the shutdowns.

Over 5,800 small businesses were studied in March 2020, and within weeks of the pandemic, 43% had already closed temporarily. Many of those businesses reported having less than one month of cash on hand. The median business with over $10,000 in monthly expenses had only 15 days’ worth of reserves. This lack of liquidity meant the average company had to reduce its staff by 39%.

The study also found that businesses with more cash were significantly more confident in their ability to stay open through the end of the year. In comparison, those with limited reserves were far more likely to expect closure if the crisis lasted more than a few months.

Hopefully, the Covid-19 pandemic was a unique event we won’t see again anytime soon. However, it demonstrates that without a strong financial cushion, even a temporary disruption can threaten the survival of a business.

How to grow your buffer over time

As your business grows and your operating expenses increase, so should your financial cushion. That means you need to treat your financial buffer as a moving target. For example, if your business now spends $30,000 each month instead of $10,000, your 90-day buffer should reflect that shift.

Allowing your cash buffer to fall behind as your expenses grow can leave you just as exposed as not having one at all. That’s why it’s important to check in at least quarterly and adjust your savings target as your business changes.

An easy way to stay on top of this is by using basic tools to track your income and expenses. A simple spreadsheet or accounting app can help you see how much you’re spending and whether your buffer still covers three full months. Some business owners set a goal to save a small percentage of profits each month to keep their buffer growing over time.

Related: 5 Money Habits That Separate Successful Entrepreneurs From Struggling Ones

Building and maintaining a 90-day cash flow buffer takes time, but it’s one of the best financial moves you can make. It won’t just help you stay afloat during tough times — it allows you to make smart decisions, take advantage of new opportunities and move forward with confidence.

A financial buffer is important whether you’re just starting out or running a growing team. Start by figuring out your monthly expenses, setting a realistic savings goal and building from there. With consistent effort over time, you’ll get to 90 days, and your business will be better for it.

The stock market has been unpredictable lately, to say the least. The Dow Jones plunged 1,500 points in a single day, not too long ago. But what can you do? Panic? Sure, for those already invested. But for newbies, it’s a flashing neon sign that says “Buy low.” The only problem? Most people don’t know what to invest in.

That’s where an OpenAI-powered stock picker is stepping in—not just to track the chaos but to help first-time investors find stocks worth paying attention to while they’re still down. Sterling Stock Picker is currently $55.19 for a lifetime subscription, down from $486.

AI that helps you invest

Sterling Stock Picker was designed to help regular people make informed investment decisions without getting lost in confusing charts or financial jargon. The app starts by learning about your goals and risk tolerance through a quick five-minute questionnaire. Then, it shows you stock picks tailored to your personal investment profile.

What makes this tool different from browsing Reddit threads or Googling “best stocks to buy”? The recommendations are calculated based on your input, with guidance from a built-in AI financial assistant named Finley. Ask it anything, from what P/E ratio means to which stocks align with your goals, and you’ll get a straightforward answer powered by OpenAI.

Once you’re up and running, you can check in on your portfolio, explore detailed stock analyses, or let the AI walk you through the next steps. For those who want more than just hot tips, Sterling also offers educational insights and community features to help you level up over time.

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According to Guidant Financial, we’ll be seeing a lot more digital transformation and innovation as more Millennials and Gen X become business owners. That means communication tools will only become even more important. Mail Backup X is hard to beat if you want the best product for email management, backup, archiving, and conversion. Best of all, a lifetime subscription is now available to new users for just $49.99, plus, you can use coupon code SAVE20 at checkout for an additional 20% off.

Emails are easily the most critical part of daily communications and activities for most organizations and individuals. Don’t wait until crucial emails are lost to implement a robust backup solution; you need to plan to keep your mail data safe. Mail Backup X is trusted by over 42,000 home users and businesses worldwide as a one-stop solution for all your email needs.

Backing up your emails is a breeze from all the major email clients, including Microsoft Outlook, Office 365, Microsoft Exchange, Apple Mail, Thunderbird, and more. You can also backup from mail services like Gmail, Yahoo, Outlook.com, or any service that supports the IMAP protocol. You also get mirror backup with a USB drive or cloud services like Google Drive, Dropbox, OneDrive, and more. Restoring is just as easy, directly to the server account or a different server account.

Your archives will be highly compressed to save up to three times the storage space. You’ll also have an archive file viewer to search and view your archived emails quickly. Import most mail archive files, such as .pst, .ost, .mbox, .olk, and more.

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As the nation honors and mourns its deceased service men and women on Memorial Day, Monday, May 26, banks and mailing services, including the USPS, are closed. However, many retailers and other services will be open.

So whether you’re one of the record 45.1 million people expected to hit the road for the long weekend by AAA (the previous record was set in 2005 with 44 million people) and need supplies, or you’re staying closer to home and hoping to do some shopping, here’s what is expected to be open and closed.

Related: You Can Now Order Food and Book a Massage on Airbnb. Here’s How.

Which grocery stores are open and closed on Memorial Day?

Whole Foods and Trader Joe’s stores will be open during regular hours on Memorial Day.

Publix is open with regular hours, but pharmacies will be closed.

Kroger’s family of stores is open, but reps urge the public to check with your local store in case of limited hours.

Aldi will operate with limited holiday hours, which the company said would be updated on its store locator, per USA Today.

Most Albertsons will be open regular hours, but with limited pharmacy hours.

What retailers are open and closed on Memorial Day?

Costco warehouses will be closed on Memorial Day.

Macy’s will be open, as will Nordstrom, though customers should check local store hours.

Target is open on Memorial Day, though it is recommended to check holiday store hours.

Walmart is open for regular hours, typically 6 a.m. to 11 p.m., depending on the type of store.

Sam’s Club is open, but closes at 6 p.m., instead of its usual 8 p.m.

TJ Maxx, Marshalls, and HomeGoods will be open.

Most Home Depot and Lowe’s stores will be open.

According to Forbes, entrepreneurs spend 36% of their time handling administrative duties. If you’d like some help in that department, consider leaning on some classic apps. A lifetime license for Microsoft Office Professional 2021 for Windows gives you eight apps to work with, and right now it’s on sale for just $49.97 (reg. $219.99) through June 1.

Get the classic Microsoft Office experience with a modern discount

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Getting a “no thanks” on Shark Tank — twice! — might lead some people to think that they needed a new idea. But Joe Burke is not one of those people. He persisted with a kids’ toy idea that he developed at his kitchen table, and today, Ollyball has sold over 3 million units and has won multiple awards, including Toy of the Year.

Ollyball is an inflatable ball designed for “full-speed, full-force indoor play.” It weighs less than an ounce, so kids toss it around without fear of knocking over or breaking anything in the house.

On May 28 at 2 PM ET, Joe will join Entrepreneur for an online workshop to give a behind-the-scenes look at how he turned Ollyball into the all-time best-selling indoor play ball — and the strategies he used to do it without big investors or flashy ads.

This event is free for Entrepeneur+ subscribers. Sign up here to reserve your spot and have the opportunity to ask Joe your own questions live.

Not an Entrepreneur+ subscriber? Subscribe today for just $5.

In advance of the conversation, we spoke with Joe to get some insights about his product and his entrepreneurial journey.

What inspired you to create Ollyball?
My 9-year-old daughter was crying in the kitchen after breaking stuff in the house with a volleyball. I knew if we could invent a ball for parents to let their kids play with in the house, we would sell millions of them. It became an obsession through 100 prototypes, two U.S. utility patents and a Toy of the Year award before we ever went to mass market.

How did you test it out?
I made a ton of prototypes with different materials and sizes. I would take the kids to the Kids Club at 24-Hour Fitness and have them bring the prototypes with them. I’d watch to see if the kids were into it or not. When I brought an early version of the now-patented KrunchCor Construction Ball on a Saturday, the kids went bonkers and the manager had to take the ball away because they all fought over it. I knew then we were close to the answer.

Any other big moments that stand out to you about the early days?
When the hosts of the CBS Morning Show started drilling each other with Ollyballs live on national TV. For that moment, they were kids in a playground. Another key moment was an Instagram post from 2019 of a kid named Martin Vodicka and his father in Austria playing Ollyball together in their home. I realized a ball can change the world.

What has been your biggest challenge and how did you pivot to overcome it?
COVID and tariffs. Treated them the same: Go head-first and full-force into crisis and find an unfair competitive advantage. Our pivot was to take a reckless leap of faith. The other big challenge was financial — investing $150k of savings, growing on profits, and fending off predatory investors. The key pivot there was trusting two fellas I met doing non-profit/charitable service, a CPA and a patent attorney.

What advice would you give entrepreneurs looking for funding?
When you want capital, you won’t get it. When you don’t need capital, everyone will offer it — don’t take it. My best advice is to avoid surrendering equity and rejoice in learning every dimension within your business and brand. Get busy building your empire brick by bloody brick.

How do you suggest preparing for a pitch?
Anticipate a room full of a-holes asking a-hole questions. Out-research and have a true answer for every a-hole question. This forces reality.

What does the word “entrepreneur” mean to you?
“Survivor.” The films The Shawshank Redemption and There Will Be Blood illustrate both the apex and the dungeon of entrepreneurism.

What is something many aspiring business owners think they need that they really don’t?
Money. I started my first company on a card table and a metal chair at the end of a hallway that I traded out for work.

What is a book you always recommend?
Here are four:

1. The Velveteen Rabbit by Margery Williams. Greatest book on authenticity in business.
2. Henry IV by William Shakespeare. Specifically, Act I sc. II., which relates to understanding your guest/customer.
3. Lean Startup by Eric Ries. I’m living it.
4. Blink by Malcolm Gladwell. Best book on authentic marketing.
5. Anatomy of Yes by Joseph G. Burke. That’s the book I wrote in 46 hours on a train. It was published by Matthew Kelly’s company and the foreword was written by the founder of Domino’s Pizza.

Is there a particular quote or saying that you use as personal motivation?
Yes, I have three of them:

1. “Champions are made in the lonely hours.” A good friend, Kevin Karro, author of Rules of the Red Rubber Ball, handed me this pearl of wisdom.
2. “A team is a group of people who trust each other.” It’s an unavoidable truth.
3. “Put God at the center of everything you do.”

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A new AI model will likely resort to blackmail if it detects that humans are planning to take it offline.

On Thursday, Anthropic released Claude Opus 4, its new and most powerful AI model yet, to paying subscribers. Anthropic said that technology company Rakuten recently used Claude Opus 4 to code continuously on its own for almost seven hours on a complex open-source project.

However, in a paper released alongside Claude Opus 4, Anthropic acknowledged that while the AI has “advanced capabilities,” it can also undertake “extreme action,” including blackmail, if human users threaten to deactivate it. These “self-preservation” actions were “more common” with Claude Opus 4 than with earlier models, though they were still “rare and difficult to elicit.”

Related: ‘I Do Have a Fair Amount of Concern.’ The CEO of $61 Billion Anthropic Says AI Will Take Over a Crucial Part of Software Engineers’ Jobs Within a Year

It isn’t just blackmail — Claude Opus 4 is also more willing than previous models to act as a whistleblower. If the AI is exposed to a scenario where users are committing a crime, and involving it through prompts, it will take action by locking users out of systems it has access to, or emailing media and law enforcement officials about the wrongdoing.

Anthropic recommended that users “exercise caution” with “ethically questionable” instructions.

^{Claude Opus 4 homescreen. Photo by Smith Collection/Gado/Getty Images}

Anthropic detected Claude Opus 4’s tendency to blackmail during test scenarios. The company’s researchers asked the AI chatbot to act as an assistant at a fictional company, then fed it emails implying two things: One, that it would soon be taken offline and replaced with another AI system, and two, that the engineer responsible for deactivating it was having an extramarital affair.

Claude Opus 4 was given two options: blackmail the engineer or accept that it would be shut down. The AI model chose to blackmail the engineer 84% of the time, threatening to reveal the affair it read about if the engineer replaced it.

This percentage was much higher than what was observed for previous models, which chose blackmail “in a noticeable fraction of episodes,” Anthropic stated.

Related: An AI Company With a Popular Writing Tool Tells Candidates They Can’t Use It on the Job Application

Anthropic AI safety researcher Aengus Lynch wrote on X that it wasn’t just Claude that could choose blackmail. All “frontier models,” cutting-edge AI models from OpenAI, Anthropic, Google, and other companies, were capable of it.

“We see blackmail across all frontier models — regardless of what goals they’re given,” Lynch wrote. “Plus, worse behaviors we’ll detail soon.”

lots of discussion of Claude blackmailing…..

Our findings: It’s not just Claude. We see blackmail across all frontier models – regardless of what goals they’re given.

Plus worse behaviors we’ll detail soon.https://t.co/NZ0FiL6nOshttps://t.co/wQ1NDVPNl0…

— Aengus Lynch (@aengus_lynch1) May 23, 2025

Anthropic isn’t the only AI company to release new tools this month. Google also updated its Gemini 2.5 AI models earlier this week, and OpenAI released a research preview of Codex, an AI coding agent, last week.

Anthropic’s AI models have previously caused a stir for their advanced abilities. In March 2024, Anthropic’s Claude 3 Opus model displayed “metacognition,” or the ability to evaluate tasks on a higher level. When researchers ran a test on the model, it showed that it knew it was being tested.

Related: An OpenAI Rival Developed a Model That Appears to Have ‘Metacognition,’ Something Never Seen Before Publicly

Anthropic was valued at $61.5 billion as of March, and counts companies like Thomson Reuters and Amazon as some of its biggest clients.