In 1958, Mao ordered every village in China to produce steel. Farmers melted down their cooking pots in backyard furnaces and reported spectacular numbers. The steel was useless. The crops rotted. Thirty million people starved.
In 2026, every other company is having top down mandate on AI transformation.
Same energy.
Backyard Furnaces
The rallying cry of the Great Leap Forward was 超英趕美 — surpass England, catch up to America. Every province, every village, every household was expected to close the gap with industrialized Western nations by sheer force of will. Peasants who had never seen a factory were handed quotas for steel production. If enough people smelt enough iron, China becomes an industrial power overnight. Expertise was irrelevant. Conviction was sufficient.
The mandate today is identical, just swap the nouns. Every company, every function, every individual contributor is expected to close the AI gap. Ship AI features. Build agents. Automate workflows. That nobody on the team has ever trained a model, designed an evaluation system, or debugged a retrieval system is beside the point. Conviction is sufficient.
So everyone builds. PMs build AI dashboards. Marketing builds AI content generators. Sales ops builds AI lead scorers. Software engineers are building AI and data solutions that look pixel-perfect and function terribly. The UI is clean. The API is RESTful. The architecture diagram is beautiful. The outputs are wrong. Nobody checks because nobody on the team knows what correct outputs look like. They’ve never looked at the data. They’ve never computed a baseline.
Entire departments are stitching together n8n workflows and calling it AI — dozens of automated chains firing prompts into models, zero evaluation on any of them. These tools are merchants of complexity: they sell visual simplicity while generating spaghetti underneath. A drag-and-drop canvas makes it trivially easy to chain ten LLM calls together and impossibly hard to debug why the eighth one hallucinates on Tuesdays. The people building these workflows have never designed an evaluation pipeline, never measured model drift, never A/B tested a prompt. They don’t need to — the canvas looks clean, the arrows point forward, the green checkmarks fire. The complexity isn’t avoided. It’s hidden behind a GUI where nobody with ML expertise will ever look.
The backyard steel of 1958 looked like steel. It was not steel. Today’s backyard AI looks like AI. It is not AI. A TypeScript workflow with hardcoded if-else branches is not an agent. A prompt template behind a REST endpoint is not a model. Calling these things AI is like calling pig iron from a backyard furnace high-grade steel. It satisfies the reporting requirement. It fails every real-world test.
But the most dangerous furnace is the one that produces something functional. Teams are building demoware — pretty interfaces, working endpoints, impressive walkthroughs — with zero validation underneath. Some are in-housing SaaS products by vibe coding some frontend with coding agents: it runs, it has a dashboard, it cost a fraction of the vendor. Klarna announced in 2024 that it would replace Salesforce and other SaaS providers with internal AI-built solutions. What these replacements don’t have is data infrastructure, error handling, monitoring, on-call support, security patching, or anyone who will maintain them after the builder gets promoted and moves on.
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