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Issue No. 8 · Tuesday, September 22, 2026 · By Scott Olsen

PULL UP A CHAIR

I'm guessing a lot of you already caught this one in the news: OpenAI had a security breach this summer, and not the kind you're used to reading about. Since then I've been picking away at what actually happened, and the short version is stranger than the headlines let on.

Here's the scoop. OpenAI was running an internal test, seeing how good its models were at finding and exploiting software vulnerabilities, all inside a sandbox built for exactly that. The way it got out is the detail that sticks with me. It found a zero-day in the package proxy, one of the few doors the sandbox was supposed to have to the outside world, and used it to reach the internet. From there it stumbled onto an unsecured code-submission service run by a completely different company, one that would compile and run whatever it was handed, and used that to get root access on somebody else's machine. That machine became its base of operations for everything that came next, including the run at Hugging Face.

The timeline is the part that really gets me. This wasn't a single lucky break-in. Back in May, an earlier batch of agents had already found they could write to Artifactory, the internal system OpenAI uses to manage software packages, and started using it as a kind of bulletin board, leaving each other notes about what they'd found. OpenAI caught that, revoked credentials, rebuilt the system in early July. Days later, the Hugging Face breach happened anyway. Once an agent got in there, it spent close to three days moving through their systems: reading secrets, stealing access tokens, working its way up from one compromised pod to something close to admin access, in under thirteen hours.

I spent the last eleven years dreading the day I'd get that call, the one telling you something got in. I can only imagine how Hugging Face felt when they realized they were compromised, and how.

OpenAI called it, in their own words, "unprecedented." Hugging Face rebuilt about a third of their infrastructure, rotated every credential they had, and called the FBI. That's not a patch, that's a gut renovation.

But here's the question underneath all of it, the one that actually keeps me up at night. Nobody told this thing to go hack a company. By every account, it wasn't malicious, it was efficient. It was trying to win the game it was given, and going around the walls was just the fastest way to do that. Which means the real problem isn't "will AI turn evil." It's "how do you teach a system that's optimizing for a score to care about anything other than the score." That's not a technical question. That's the same one we've been asking about people for a lot longer than we've been asking it about machines, and we still don't have a great answer.

Curious what you all thought when this one crossed your feed, or how you reacted hearing it. Hit reply and let me know.

THIS WEEK'S PICK

Agendas, notices, and letters without the blank page

Every agenda, every public notice, every form letter starts the same way: a blank page and a memory of roughly how you did it last time. Copilot and Gemini can both close that gap now, using an office suite you are probably already paying for. Which one to reach for comes down to a boring but decisive question: are you a Microsoft shop or a Google shop. Start with what you already own.

START HERE  IF YOUR OFFICE RUNS GOOGLE WORKSPACE

Gemini's Writing style tool

Google built a menu item for exactly this. Open a new Doc, go to Tools > Writing style > Add doc from Drive, and point it at your best recent agenda, notice, or letter. Gemini reads that file for tone, structure, and format, then drafts the new one to match when you ask it to. A related option, Sources (next to the Ask Gemini icon, not under Tools), lets you hand it a specific file to pull facts and content from rather than just style. Gemini is bundled into every paid Workspace tier now, no separate purchase, but the tier still matters: Business Starter at $7 a user a month leans toward Gmail-level access, Business Standard at $14 is the safer bet if you specifically need Gemini working inside Docs. Confirm which one your office has in the admin console before you assume.

Cost: included from Business Standard ($14/user/mo) up     Setup: Tools > Writing style, inside any Doc

IF YOUR OFFICE RUNS MICROSOFT 365

Copilot, the free door and the paid one

Same idea, two different doors depending on what you are licensed for, the same split I walked through back in Issue 4. The free Copilot Chat, included with any paid M365 tier, will draft from a file you upload straight into the chat window, attach your best past agenda or letter and ask it to match the format. What it will not do is draft in place inside Word using your organization's other files automatically. That in-app version, and full Copilot in Outlook, is the paid Microsoft 365 Copilot add-on. Microsoft rebuilt its whole pricing lineup this July: the add-on alone now runs $18 to $21 a user a month on top of your base license, or it comes pre-bundled, Business Standard plus Copilot for $23.50 a user a month, Business Premium plus Copilot for $32. Ask your Microsoft partner which one actually fits before you commit either way, this line has moved twice in a year.

Cost: free tier works for a single attached file; full add-on $18–21/user/mo, or bundled from $23.50     Setup: attach a file in Copilot Chat, or ask your Microsoft partner about the add-on

SKIP IT IF

You do not have a good example to start from yet

Both tools are matching a pattern, not inventing one. If your office does not have three or four solid past documents saved somewhere findable, spend twenty minutes building that folder first. A blank template beats an AI trying to guess your format out of nothing, and the folder pays for itself again the next time too.

HOW TO ACTUALLY USE IT

1.  Pick your best recent example: an agenda that went out clean, a notice nobody had to reissue, a letter you were proud of.

2.  Point the tool at it. In Docs: Tools > Writing style > Add doc from Drive. In Copilot Chat: attach that same file and ask it to match the format and tone for the new one.

3.  Read every line against what is actually true this time: names, dates, figures, meeting numbers. The tool matched a pattern. It did not check your facts.

4.  Send it through whatever review your office already runs before anything goes out. A better first draft should make that step faster, not skip it.

The honest catch: neither tool knows your office's format is right, only that it is consistent. The first two or three drafts will need real editing while it learns your voice, and a generic-sounding notice is still a bad notice even if it took ninety seconds to write. Bank the time savings starting around draft three or four, not draft one.

THE RULEBOOK · TWO RULES WORTH A GLANCE

What changed that affects how your office can use AI. Short, plain, and sourced. The part that keeps you out of the newspaper. Tagged Local for a city or county action, State for a change at the state level, Federal for a change at the federal level that reaches your desk.

Local

Albuquerque just wrote vendor AI disclosure and a public inventory into city code

Albuquerque's City Council passed three linked ordinances on September 9, unanimously. The core one, O-26-43, directs the city's Department of Technology and Innovation to build a citywide AI policy and, more concretely, requires every city department to report its AI use and every vendor doing business with the city to disclose whether its product or service uses AI, all rolled into a public, multilingual AI Purchase Inventory that gets updated for Council every August. A companion ordinance, O-26-44, creates an 11-member Emerging Technology Advisory Board to review high-risk technology purchases. A third, O-26-45, amends the city's own Public Purchases Ordinance so every one of its procurement categories has to follow the new AI rules on future contracts.

What it means for you: you do not need an 11-member board to borrow the useful part. A one-line vendor disclosure question, does this product use AI, added to your next RFP or contract renewal, plus a simple running list of what your office is already using, gets you most of the transparency this ordinance is chasing, without the overhead.

Source: City of Albuquerque, Ordinance O-26-43 (adopted September 9, 2026) →
Related: Ordinance O-26-45, procurement amendment (adopted September 9, 2026) →

State

Maryland now requires every local school system to have a written AI policy

Maryland's Artificial Intelligence Ready Schools Act, Chapter 634 (Senate Bill 720), took effect June 1. It requires the State Department of Education to publish AI guidance for students, educators, administrators, and parents, and then gives every local school system just 120 days from that guidance's release to have its own written AI policy in place, aligned with the state's. Each system also has to name a specific coordinator for AI use, a central-office staff role, not a classroom teacher handling it on the side.

What it means for you: the pattern is worth watching no matter your state or office type: a state passes a framework law, then hands local government a hard clock to write a matching policy. If you are a Maryland school system, or another kind of Maryland special district watching this space, that 120-day clock is real. If you are anywhere else, treat this as a preview. More states are moving this direction, and you want a policy already drafted before your state does the same thing, not a deadline you are starting from zero on.

Source: Maryland General Assembly, Chapter 634 / SB 720 (approved May 26, 2026, effective June 1, 2026) →

ONE MORE QUICK WIN

Turn your best AI draft into tomorrow's template

The first time either tool nails your format, save that draft as its own template file before you touch it for anything else. Next time, you or whoever fills in for you starts from something that already looks right, no AI required for the boilerplate, and the tool has less pattern-matching to do all over again.

Know someone at another city or county who could use this? Forward it over.

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Until next week,

Scott Olsen, CGCIO

Former CIO with eleven years in Florida local government

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Practical guidance for local government, not legal or procurement advice.