Our AI position, one year on

We now let AI ship code and prepare documents. It still never sees customer data, PII or secrets, and it still can’t design. Here’s what changed and why.

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TO ADD: featured image

More AI, doing more of the work, checked harder than ever.

The current generation of models is a real step change, so we now use AI hands-on in production, mostly shipping code. The trade-off is more checking, not less: agents review agents, every pull request goes through CodeRabbit, and a person approves anything that ships. Sensitive data stays out. Design stays human.

In August last year I wrote that we'd gone through every app we use and switched AI off by default, that clients would opt in to how much AI touched their work, and that we wouldn't let it anywhere near live systems, repos or production. In March I wrote that it's a powerful tool that is "often very very wrong", and that I wasn't buying the hype that its capabilities would improve exponentially.

Both of those articles were honest at the time. This one is the update, because a fair bit has changed in how we work, and a fair bit hasn't. The AI Usage Policy has been rewritten to match.

Key takeaways

  • We now use AI hands-on in production. Mostly shipping code, and increasingly for preparing documents and analysing research.
  • The line on sensitive data has not moved. No AI touches customer data, personally identifiable information, credentials or anything secret.
  • AI features in our everyday tools are still off by default. The one change is meeting transcripts are on. Video and screen recording stay off.
  • The models released in the last few months, Claude's Fable and OpenAI's Astra this week, are a step change. Not a marketing 10x, an actual one, in how well they understand a brief and how good the end output is.
  • The trade-off for handing over more of the work is more checking. Agents now review agents, and every pull request goes through CodeRabbit before a human looks at it.
  • Creative thinking and design are still average to poor. That's unchanged, and it isn't where we point these tools.
  • Our default position with clients has flipped from opt-in to a stated default they can dial down.

What actually changed

In March I described the experience of building with AI as "sometimes good at doing step 1, and very not good at doing step 2". Getting a first pass that looked like a real app was easy. Getting it to actually work, and be good, cost hours of logic loops, undone work and code I had to unpick. That was true of every model I'd used up to that point, premium or local, and it's why our policy said no end-to-end code creation and no pushing to a repo.

Then the current generation of models arrived. We've been running Claude's Fable since it landed and started on OpenAI's Astra the day it was released this week. The difference isn't incremental. On the work we do, the models understand what's being asked the first time, hold that understanding across a long task, and produce output that needs a review rather than a rebuild. The time we used to spend correcting, re-prompting and reverting has mostly gone. I'd put the improvement in understanding and end output at ten times, and I don't say that lightly given how sceptical the last two articles were.

So I'll own the March prediction. I said I wasn't buying that capabilities would improve exponentially over the next ten years, and I'm still not buying the "world order is changing" story that goes with it. The historical pattern I described, overestimate the short term and underestimate the long term, still looks right to me. But I under-called how much better the tools would get in six months. Working with what I can test myself today, as I said then, means updating when what I can test changes.

What we're doing with it now

The biggest shift is in programming. Where the previous policy stopped at "coding assistant, discrete tasks, debugging", we now give agents open briefs, let them work in our repos, open pull requests and take work through to production. That's the thing we explicitly said we wouldn't do a year ago, and it's now a large part of how development at Harvey happens.

The second shift is document preparation and research analysis. Turning workshop notes, interviews and desktop research into structured documents, first drafts of reports, and pulling apart survey data. The illusion of productivity I wrote about last year hasn't fully disappeared here, the output still needs someone who knows the subject to read it properly, but the ratio of useful output to correction time has changed enough that it's worth doing.

We're working across three model families: OpenAI, Claude, and zcode, which is in a limited pilot only while we work out whether it earns a place.

The price of handing over more of the work

At the RIAA conference in June I said that running ten agents creates ten times the review work, and that you can't just trust the output. Letting AI ship code doesn't change that, it makes it the central design problem. Our answer is what I described on that panel as a harness: a framework where the work is checked, critiqued and cross-checked before a person sees it.

In practice that means agents review other agents' work as a matter of course. Every pull request goes through CodeRabbit for an automated review before a developer reads the diff. Tests have to pass. Nothing reaches production without a person approving it, and that person has to understand what they're approving. The three rules from March still stand: understand the subject matter, give very clear direction, and monitor, intervene and review everything. We've just built more of the monitoring into the process rather than relying on whoever is at the keyboard to remember.

What hasn't changed

Sensitive data. The most important line in last year's article was about what you put in. It hasn't moved. AI does not get access to customer data, personally identifiable information, passwords, keys or anything else that could do harm if it left the building. That applies regardless of how good the model is, because the risk was never about model quality. Our Security & Data Protection Policy defines what counts.

AI in our tools is still off by default. We went through Google Workspace, Slack, HubSpot, Zoom, Sentry, GitHub and the rest last year and disabled the built-in AI features. They're still disabled, because when we've revisited them they still mostly don't add much. The one exception is meeting transcripts, which we've turned on. Video and screen recording stay off. The transcript is useful, the recording of people's faces and shared screens was never the useful part.

Creative thinking and design. I said in March it was "excellent at creating the most generic (or terrible) design you've ever seen". Still true. The newest models are a genuine leap in understanding and execution, but they produce limited novel thought, and left to their own devices they produce user and brand experiences that are average at best. Concepting, brand design and website design stay with people. Where AI is useful in design is exactly where it was: wireframing, exploring options, editing images. Not the idea.

Human review before anything reaches a client. Unchanged. And deliverables that involved AI are still identified as such.

What this means for clients

Last year our position was that AI use was opt-in. Every client chose their mode at the start of a project and the default was to hold back. That made sense when we didn't trust the tools and neither did anyone else.

It's now the other way around. We have a stated default way of working, which is Assistant for programming and data, Generator for strategy and content, and Researcher for design, and every client can dial that down as far as they like, including to no AI at all. The choice is still theirs and it's still recorded in the project documentation. What's changed is that the default reflects how we actually work, rather than how cautious we felt in 2025.

The reasons a client might dial it down are the same as before. Sensitive data, a regulatory environment, a preference for how their money is spent, or a view on the environmental and ethical cost of the AI supply chain, which I wrote about at length last year and which hasn't got better. We'd rather have that conversation openly than assume.

Where I've landed

I still think we're near the top of a hype cycle, and I still think most of the confident predictions about jobs and industries will look silly in hindsight. But I'm not going to pretend the tools didn't get dramatically better, or keep a policy that was written for the ones we had a year ago. The version of us that wrote last year's article would be surprised at how much we now let AI do, and reassured by how much we still don't.

The updated AI Usage Policy has the modes, the defaults, the harness requirements and the boundaries in full.

AI usage in this article

This article was drafted by Claude from my notes, our previous articles and our existing policy, then edited by me. Roughly one round of back and forth to get the draft, and the edits were mine.

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Maintain current ownership and governance

🟢
  • Harvey is 100% owned by the Smallchua Family Trust. Rebecca Smallchua is our sole Director.

Share templates, documents, insight into business for good

🟢
  • We’ve officially made all our policies and procedures publicly available here along with our past and current impact reports — sharing our lessons, tools, and insights openly. Something we’ve wanted to do properly for years and glad we finally got it sorted.
  • Maintain B Corp score from 134.1 with workers included
🟢
  • No change here. We’re up for recertification next year and looking forward to exploring the new B Corp standards. We shared our experience of recertification from the previous year here.

We’re exploring profit share, and employee ownership models with the team

🟠
  • Team feedback indicates a preference for a profit-share model rather than equity, as it is simpler, clearer and easier to manage. While there is no urgency from the team, there is interest in defining the approach in more detail. Our informal research also shows that many organisations find equity schemes complex and often less motivating in practice. What people value more is being paid properly, doing meaningful work and a healthy, supportive culture.

Be climate positive at work and at home

🟠
  • We don’t track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn’t donate to the environment (see above) so we can’t say we countered our CO2.
  • We continue to choose Hub as our office space for co-working who are Carbon Neutral Certified. Our overall carbon emissions are mostly contributed by our technology usage and we haven’t got a very detailed view on what that is and how to offset it.

To be updated: Donate 5% revenue to the environment

🟢
  • We delivered this as $55k of pro bono service to RIAA who are the leading industry body in Australia and New Zealand dedicated to aligning investment capital with a healthy society, environment and economy. We believe where you invest — and how you choose to use your money — has a powerful impact on people and the planet.
  • Going forward our plan is to commit 50% of profits to invest in clean tech enterprises and/or donations to charitable organisations fighting climate change.

Re-use, recycle and manage dangerous waste

🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.

Advocate for sustainable business

🔴
  • We only did one small action this year supporting Business for 75. A coalition of organisations calling on the Australian Government to commit to at least a 75% emissions reduction target by 2035, because strong climate action is essential for Australia’s future — and good for business.
  • Sarah also personally contributed to B Local Melbourne in various ways running events and engaging the community.

Protest and boycott important issues (Australia Day, Melbourne Cup)

🟢

Buy with intention from local and discriminated groups

🟢

We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community section of the report.

To be confirmed: Invest $20k in impact businesses and $20k of pro bono time

🟠
  • $0 impact investment. Over $55k 100% pro bono time.
  • We did not invest in impact businesses this year as we dedicated significantly more to probono & amazing discounts, and we didn’t have free cash on hand to do the investment.
  • We will be better at managing our impact allocations  — including impact discounts, cross-subsidies, pro bono work, donations, and investments in impact businesses or climate ETFs. 
  • The major pro bono contribution was  $55k of additional free services to RIAA who are the leading industry body in Australia and New Zealand dedicated to aligning investment capital with a healthy society, environment and economy. We believe where you invest — and how you choose to use your money — has a powerful impact on people and the planet.

Begin a Reconciliation Action Plan

🔴
  • We again looked into starting a RAP this year, but with the administrative requirements for a business of our size, we decided to focus our efforts on taking meaningful action instead outlined in our Community chapter here.

All staff spend 75%+ of their time on clients

🟠
  • Spent 66% of our time on clients. 
  • Our forecasting/financials is based on 65%, but our target is obviously higher to give us a buffer. We are happy with 66%, but will continue to aim to increase this.
  • The 34% broken down into 23% operations, 8% business development, 3% learning. Slightly more on ops, less on learning & business development (Sales/Marketing) than FY24.
  • We spent less time on admin, impact reporting, marketing, formal training & recruitment, and more on client admin, team activities, onboarding and self-learning on projects.

Regular, honest check-ins about how we feel

🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.

Targeted and clear personal growth, if we are better our clients will be

🟢
  • Continued with our personal goal setting questionnaires that ask the big questions of where we want to go and how we’ll get there. Also lots of accountability check-ins. 

Improve and increase capability across team 

🟢
  • Raising our emotional health levels through a leadership development program with Global Leadership Foundation.
  • Expanding output skills: Market research, Web design, content & copywriting, strategy & development and automation strategy.

9 day fortnights, with option for 4 day weeks

🟢
  • 60% work 9 day fortnights, 30% part-time hours, 10% standard working hours.

Gradually grow the team to 7 people

🟢
  • We ended the year getting ready to onboard our 7th team member in July 2025.
  • In FY24/25 Alex joined us as Senior Designer (Brand & Digital) and Simon Hoye came on board as Head of Technology.

No destructive clients. Revenue 10% Good, 65% Great, 25% Amazing

(Here’s what the classifications mean)

🟠
  • No destructive clients. Revenue breakdown: 6.5% Good, 59% Great, 33% Amazing
  • We were well under on Good and over on Amazing which improves impact and puts pressure on us financially. We’re now managing allocation more carefully each month.

Client survey metrics

  • 100% good value for money. (3 / 5 value for money (1 - ‘could charge less’ and 5 - ‘could charge more’)
  • 8 / 10 likely to recommend
🟢
  • All metrics are on or over target
    • 3.5 / 5 value for money
    • 8.5 / 10 likely to recommend
    • 82 NPS

$1.03m revenue (Up by 23% from FY 23/24). Ambitious, we know!

🟠
  • $916,460 - +10% YoY but under our of +23%,
  • The main reasons we didn’t hit target were scope creep and overruns as well as exceeding the Amazing impact discount.
  • Maintain B Corp score from 134.1 with workers included
🟢
  • We officially re-certified in November 2023, and are pleased to report we achieved the same score (to the decimal point). Wild! We shared our experience of recertification here.
  • Share templates, documents, insight into business for good
🟠
  • We haven't done this publicly, but when people have asked, we have shared. And we're sharing a series of things as part of this impact report.
  • Maintain current ownership and governance
🟢
  • Harvey is 100% owned by the Smallchua Family Trust. Rebecca Smallchua is our sole Director.
  • Re-use, recycle and manage dangerous waste
🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.
  • Be climate positive at work and at home
🟠
  • We don't track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn't donate to the environment (see above) so we can't say we countered our CO2.
  • Advocate for climate change / inspire sustainable living
🟢
  • We hosted a panel event on Zero Emissions Day in September 2023, along with our friends at Portable, where we interviewed industry experts on the opportunity to engage with community and work towards a more sustainable future. Recording here.
  • Donate 5% to the environment
🔴
  • We didn't make the donation this year as we're revisiting our impact giving model - more details here
  • Invest $20k in impact businesses plus $20k of pro bono time
🔴
  • We delivered some pro bono time but dropped the ball and had no official measurements in place.
  • We also did not invest $20k in impact businesses, and are reviewing this goal going forward. In the last 12 months, our three Impact Investments all lost their value (Whole Kids, Pronto Bottle & Kester Black). While it's not great, we accept this is part of ambitious investing, and each had their own challenges that they couldn't quite overcome.
  • Buy with intention from local and discriminated groups
🟢
  • We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community chapter of our report.
  • Protest and boycott important issues (Australia Day, Melbourne Cup)
🟢
  • Yes and yes!
  • 9 day fortnights, with option for 4 day weeks
🟢
  • 80% work 9 day fortnights, 40% part-time hours, 10% standard working hours.
  • Improve and increase capability across team
🟢
  • Raising our emotional health levels through a leadership development program with Global Leadership Foundation.
  • Expanding output skills: Market research, Web design, content & copywriting, strategy & development and automation strategy.
  • Targeted and clear personal growth, if we are better our clients will be
🟢
  • A new process for 360 feedback, plus personal goal setting questionnaires that ask the big questions of where we want to go and how we'll get there. Also lots of accountability check-ins.

Client survey metrics

  • 3 / 5 value for money (1 - 'could charge less' and 5 - 'could charge more')
  • 8 / 10 likely to recommend
🟢
  • 3.4 / 5 value for money
  • 9.2 / 10 likely to recommend

No destructive clients. Revenue breakdown: 17% Good, 59% Great, 24% Amazing

🟠
  • No destructive clients.
  • Revenue breakdown: 17% Good, 59% Great, 24% Amazing (A little over on Good and under on Great, but on target for Amazing - which is most important, so we're happy with that)
  • All staff spend 80%+ of their time on clients
🔴
  • Spent 64% of our time on clients (under). Due to team changes (recruitment, onboarding and offboarding) and extra investment in training, personal development and community engagement (e.g. B Local), we did not hit this target. On reflection, we will think 80% is too ambitious and we'll be revising to 70% going forward.
  • Regular, honest check-ins about how we feel
🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.

$994k revenue (Up $211k on FY2223)

🔴
  • $833,588. Revenue was up 6% YoY. Midway through the year, we adjusted down our target to $879k as team growth / services shifted. The main reasons we didn't hit target were scope creep and overruns, both of which we're trying to manage better with process improvements.
  • Maintain B Corp score from 134.1 with workers included
🟢
  • We applied for our B Corp re-certification at the end of this financial year and are pleased to report we achieved the same score (to the decimal point). Wild!
  • Share templates, documents, insight into business for good
🟠
  • We haven't actively done this publicly, but when people have asked, we have shared. And we're sharing a series of things as part of this impact report.
  • Maintain current ownership and governance
🟢
  • Harvey is 100% owned by the Smallchua Family Trust and Rebecca Smallchua is our sole Director.
  • Re-use, recycle and manage dangerous waste
🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.
  • Donate 5% to the environment
🔴
  • We fell short here, we didn't make the donation. More details here.
  • Advocate for climate change / inspire sustainable living
🟢
  • Be climate positive at work and at home
🟠
  • We don't track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn't donate to the environment (see above) so we can't say we countered our CO2.
  • Protest and boycott important issues (Australia Day, Melbourne Cup)
🟢
  • Have a RAP, engaged stakeholders and implemented more change
🔴
  • Due to competing priorities and limited time (no lack in desire) we de-prioritised our Reconciliation Action Plan as we want to do it meaningfully and have the capacity to follow through. However, we took a few first steps outlined here.
  • Buy with intention from local and discriminated groups
🟢
  • We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community chapter of our report. We took it one step further this year with a public call to pledge to audit suppliers in this campaign www.supplier-impact.com
  • Invest $20k in impact businesses plus $20k of 100% pro bono time
🟠
  • We delivered some pro bono time but dropped the ball and had no official measurements in place. We also did not invest $20k in impact businesses because of the reduced revenue with Becky on maternity leave.
  • Sarah personally donated her photography equipment valued at around $7,500 to empower a content and brand producer in the Solomon Islands.
  • 9 day fortnights, with option for 4 day weeks
🟠
  • 40% work 9 day fortnights, 40% part-time hours, 20% standard working hours.
  • Improve and increase capability across team
🟢
  • Elevated our tool nerd level. See here.
  • Expanding output skills: Market research, Web design, strategy & development, video editing, and automation strategy.
  • Targeted and clear personal growth, if we are better our clients will be
🟢
  • Lots of on-the-tools growth, structured learning through weekly Lunch 'n Learns and Intro to Programming at RMIT.

No destructive clients. Revenue breakdown: 15% Good, 60% Great, 25% Amazing (Here's what the classifications mean)

🟢
  • No destructive clients.
  • Revenue breakdown: 10% Good, 66% Great, 25% Amazing
  • All staff spend 70%+ of their time on clients
🟢
  • Spent 71% of our time on clients (over by only 76 hours).

Client survey metrics

  • 3 /5 value for money
  • 8 / 10 likely to recommend
🟢
  • 3.4 / 5 value for money
  • 8.8 / 10 likely to recommend

Maintain current revenue

🟠
  • Revenue down 16% YoY
  • Regular, honest check-ins about how we feel
🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.
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22 Bricks
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Farm My School
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Fresco Secco
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Goodtel
Green Collar
Hagens Organics
Hara
Hey Doodle
HINU
iDE
Interspan
Jasper Coffee
Jaunt
KingPump
KOSI
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Love Tribe Yoga
Lumen
LVL UP
LVLY
Maine Wellness
Marnie Hawson
Merry People
MIIROKO
Milkcan
MK Local Foods
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Orange Ninja
Pacer Digital
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Responsible Investment Association Australasia
Shadowboxer
Strongim Bisnis
Studio Schools Australia
SupaGarlic
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
THL Tourism Holdings Limited
Tierra
Time
Whole Kids
WIRE
Yarrow Build
No items found.
22 Bricks
ABCH
Abundant Water
ACSI
ALCA
Anantaya Jewellery
Artist Engineering
ATEC
Australian Garlic
Bank Australia
B Lab ANZ
bobby
ButterNut
BZE
Campervan Rental Guide
Certification O
Chaulk
City of Melbourne
Clean Focus
Client Fabric
Clockwork Films
Common Ground
Compass Studio
CPSN
Curated with Conscience
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Firesticks
Fresco Secco
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hara
Hey Doodle
HINU
iDE
Interspan
Jasper Coffee
Jaunt
KingPump
KOSI
Lee Christison
Love Tribe Yoga
Lumen
LVL UP
LVLY
Maine Wellness
Marnie Hawson
Merry People
MIIROKO
Milkcan
MK Local Foods
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Orange Ninja
Pacer Digital
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Responsible Investment Association Australasia
Shadowboxer
Strongim Bisnis
Studio Schools Australia
SupaGarlic
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
THL Tourism Holdings Limited
Tierra
Time
Whole Kids
WIRE
Yarrow Build

No items found.
No items found.
22 Bricks
ABCH
Abundant Water
ACSI
ALCA
Anantaya Jewellery
Artist Engineering
ATEC
Australian Garlic
Bank Australia
B Lab ANZ
bobby
ButterNut
BZE
Campervan Rental Guide
Certification O
Chaulk
City of Melbourne
Clean Focus
Client Fabric
Clockwork Films
Common Ground
Compass Studio
CPSN
Curated with Conscience
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Firesticks
Fresco Secco
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hara
Hey Doodle
HINU
iDE
Interspan
Jasper Coffee
Jaunt
KingPump
KOSI
Lee Christison
Love Tribe Yoga
Lumen
LVL UP
LVLY
Maine Wellness
Marnie Hawson
Merry People
MIIROKO
Milkcan
MK Local Foods
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Orange Ninja
Pacer Digital
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Responsible Investment Association Australasia
Shadowboxer
Strongim Bisnis
Studio Schools Australia
SupaGarlic
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
THL Tourism Holdings Limited
Tierra
Time
Whole Kids
WIRE
Yarrow Build
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