we’re living in a world that has been pummeled by exponential Technologies the world is now turned into information the first time we started hearing about artificial intelligence was at a conference in darkmouth in 1956 the first article that came out saying that robots are going to take all the jobs in 5 years appeared in 1964 AI is not going to take your job it’s someone using AI that’s going to take her job the AI plus a human being that always turns out to be the best uh competitor it’s aam of change and you’re either an EXO surfing on top of the tsunami or you’re being crushed by it get started as fast as you can because this is one of those where you cannot afford to be left behind on this Paradigm welcome to moonshots and mindsets here with my dear friend selem Ismael the CEO of open EXO and my co-author on a new book called exponential organizations 2.0 uh s the world is so different than than it’s
[00:01:00] ever been and for an entrepreneur especially an exponential entrepreneur um you’re either building an exponential organization or You’re Dead on Arrival uh I mean I think it’s that black and white you know it’s going to be an EXO or nothing in this decade ahead we used to say the world changed radically 10 years ago but the world changed radically like 4 months ago and so everything is different from that and and it’s accelerating you know when I’m on stage and people say you know when is this going to slow down when is the world going to like you know where is the onoff switch there is no onoff switch there’s no velocity meter it’s accelerating and we can talk about why it’s accelerating but in this session we’re going to talk about one of the most important external attributes of being an exponential organization which is AI and algorithms but before we get there for those just hearing this for the first time uh selem what is an exponential organization uh an exponential organization is a 21st century organization focused and delivering minimum 10x better faster and
[00:02:02] cheaper than your more linear peers the 20th century was all about building scalable organizations focused on efficiency and predictability today you need to be agile flexible adaptable and fast and that’s what an EXO is with a set of characteristics and AI algorithms is one of those you know I like to say that we’re living in a world that has been pummeled by exponential Technologies right I I liken it to the asteroid that impacted the planet 6 5 million years ago and it changed the world so rapidly the environment so rapidly that the slow lumbering dinosaurs died and went extinct and the furry little mammals are very proud ancestors evolved to dominate and the asteroid that struck the world now over the last 20 30 years and accelerating is all of these exponential Technologies computation sensors networks AI robotics 3D printing synthetic biology AR BR blockchain all these Technologies are just like transforming you know it’s a
[00:03:00] tsunami of change and you’re either an EXO surfing on top of the tsunami or you’re being crushed by it and I think anybody who’s not been um you know asleep for the last uh 6 months knows that one of those tsunami causing uh uh attributes is AI and algorithms so let’s jump into that uh it’s super exciting opportunity and I I mentioned this in one of our previous podcasts but I saw a tweet from a friend of ours that said you know we’re not far from the first threers billion doll company starting you know literally overnight and I think that’s true yeah I think that’s exactly right and it goes back to your 6ds premise right where you’re digitizing the world we the world is now turned into information our relationships are not digital our memories aren’t in our heads and now we with all of that Sunami of data we actually need Ai and algorithms to help manage and massage it all and the business model that emerge
[00:04:00] for that are going to be really profound so if we look at a quick definition um AI algorithms are the use of uh artificial intelligence and algorithms to basically make sense of data sets and create value from those data sets and then eventually in an EXO create a business model around them Google is a quintessential example of this with the uh creation of AdSense and and uh page Rank and Page rank um and the massive amount of value it’s created from that is unbelievable uh now we’re seeing that pervasively being applied across the board the world runs on AI today yeah it it does and just a just to put AI in a frame I think that uh people can un appreciate is why now what has changed cuz there’s something that’s actually changed in the last 5 years uh we’ve met certain thresholds that’s transformed the world you know if you think about it AI is over as a concept is 60 plus years old the the first time we started
[00:05:00] hearing about artificial intelligence was at a conference at Dartmouth in 1956 and then people say well no it’s the Deep learning models and deep learning Concepts during you but you know that actually emerged in like 1960s mid-60s so why now why are we seeing this huge uh tsunami of change um where every trillion dollar company is betting their future on these generative AI models and it’s four things um the first as as you well know is computation right we’re in this massive growth of computation that’s doubling every 18 to 24 months more as law what Ray kwell calls the law of accelerating returns doubling power and power and power and finally we got enough computational power on the cloud um we have a new set of massive Nvidia computational chips uh that are are being deployed um and that’s allowing us to run these deep learning models uh that were never possible at scale before yeah we’ve you know in the past we were focused on
[00:06:00] narrow AI right fuzzy logic in your digital camera or anti-lock breaking systems or credit card fraud detection very Niche applications uh then we went to deep learning where you uh you basically gave it and it learned as it went along and that got us to a certain point I remember chatting with Jeffrey Hinton a few years ago I think it was like 2017 and he was speaking at a conference and I said you know where does deep learning go and he said we’ve hit the end of the life cycle we need the next breakthrough to happen so that AI can progress to the next level I don’t know what that is and literally at the same time the Transformer paper was being published and that turns out to be the big thing that that all these llms are based on the second major thing that’s occurred is that we have a massive amount of data so global data has been doubling roughly every 2 years um we’re about to hit 175 zettabytes I love that which is 175 billion million megabytes of data and this data is now labeled uh I there was
[00:07:01] an article recently that said we’re going to create a new term called a Yoda bite uh which is coming online I love that you know the stat that always blows my mind is that goes the one that goes in the last you know six months we created more data than the entire history of humanity did until that point yeah and then we just did it in the last 6 months and then we’ll do it again in the next three months and then you’re like okay I just can’t I I just suggest that we can’t comprehend or process that a quick break from our episode on June the 6th SEL and I are going to be running a free 3-hour workshop on how to actually build and design an exponential organization would love to have you join us if you join us on June the 6th first of all you’ll get free access to the book exponential organizations 2.0 access to an AI that we built that allows you to query the book and helps you design your exponential organization it’s June the 6th it’s 3 hours it’s free we’ve never done this before click on the link below DM andis.com back SLO and join us all right now back
[00:08:02] to the episode so computation massive amount of data label data which is really the food stock for the large language models you know open AI stability uh barred all of these the third thing that’s happening that is really changing uh this universe is the cost to train AI systems has gone down by 99.5% in The Last 5 Years so the efficiency of the algorithms and and this is something that people don’t realize this is what’s speeding up the world ladies and gentlemen it’s the fact that you know the tech is getting so much better that every dollar goes so much further so you know in genome sequencing it was it cost Craig Venter 100 million to sequence one genome now you know it’s 100 bucks so $100 million you know will will sequence I mean you $100 million will sequence a million genomes not one genome in the same way it used to be you know uh call it a th000 bucks uh to sequence
[00:09:03] you know to actually train an AI model and now it’s like 50 cents so or five bucks it’s transformative um how fast it’s going and then the third you know my favorite phrase and half half people listening are not going to know this but you know no bucks no Buck Rogers right uh is the amount of massive capital I have a reference number um that in 2021 during the p mic $160 billion of global corporate investment went into AI alone it’s crazy and then uh Facebook pretty much doubled it on its own just in the trying to go after their different angles I think the you add this together and this becomes one of the most important characteristics of an exponential organization because as you build out you looking at what data sources what can I turn into information and then you need algorithms to make sense of it at all um and the comment
[00:10:00] that you made earlier about startups being created out of this are going to be profound the the two domains that blow my mind just specifically to llms are are doctors and lawyers right and and I it you I can like literally see the point where you literally don’t need a doctor and you don’t need a lawyer in a human form of any kind because the law you can just tell chat GPT to build a contract and it’ll write a contract for you well it can right now really well right and in fact a lot of people are using um chat GPT as their physician interesting reference point right so chat GPT goes live in November of 2022 uh in January 2 months later it passes the US medical licensing exam us mle which is insane you normally need you know four years of medical school two years of residency or intent trip to to pass that and it does that and here’s a a good example of how it’s going to massively disrupt I think eventually two things are going to happen uh your AI will be your diag ician zero question
[00:11:00] about that and before then it’s going to become malpractice to diagnose a patient without AI as your co-pilot in the loop right here’s a data point do you have any idea how many medical journals medical journal articles are published every day may I may have shared this with you right on 7,000 7,000 okay 7,000 per day so ask yourself how many of those journals has my doctor read this morning well I Daniel craft the one he referenced to me was that there’s 2,500 cancer research papers published a day right so if you’re an oncologist there’s no way you can keep track of all of that you need an AI to Just Surf that tsunami of data and make sense of it all yeah we have uh at at Fountain life where I’m I’m proud to be executive chairman you know we in an upload we upload our members they go through an upload every year and it’s 150 gbt of data it’s their full genome uh full body MRI brain brain vasculature coronary C T you know 80
[00:12:00] blood biomarkers and they’re changing all the time and the re the database that we look into of knowledge is changing all the time and you know it’s kind of pathetic to think about a poor human trying to make heads or tails of that information cannot um so it’s changing fast you know let’s look at our brain right it’s not had an upgrade in 50,000 years it’s stuck inside this it’s a liter and a half volume stuck inside here and it’s trapped um it has evolutionary incremental gains and we are stuck with all these cognitive biases like sun cost bias and framing bias and and all these other biases that we can’t get around very easily these cognitive biases yeah so I I that’s a let’s dive in that one second we’ll come back to the more uh you know basic uses of AI and algorithms I think one of the things we’re all eventually going to have our own version of Jarvis I don’t think it’s very far away right we have um uh I wouldn’t say her name it’s
[00:13:00] spelled a l e x uh a uh sitting across the room here she’ll wake up um we have that and Siri and uh you know Google’s variation and and I don’t know if Cortana is still a thing or not but uh they’re early versions uh and we’re going to get to a point where uh we all have an AI that is on our bodies you know literally in our bodies and we give permission to read everything we write listen to our conversation read our emails our text messages everything because then that AI is going to be able to be there to facilitate anything we want and one of the things I wanted to facilitate is hey tell me when I have a cognitive bias because cognitive biases are unfortunately we cannot process all the information that comes into our minds um we have a very little flow and so over over evolutionary time period period our brains evolved these cognitive biases
[00:14:01] they were neural hacks to help you reach conclusions quicker like uh similarity or familiarity bias someone who looks like you you trust more or recency bias you give higher value to more recent information um or a negativity bias right are damned amygdalas that are you know destroying the planet and the crisis news network is taking advantage of them uh which you give far more value to negative news than positive news what was the stat you and Steven uncovered in abundance is it 10x yeah so yeah this is something that stepen Cotler and I found in looking at the news media and you can do the experiment yourself pick up a newspaper I don’t read them anymore but um if I’m at a conference someplace I I’ll play the game and count the negative stories to positive stories it’s 10 to one right and on on Cable News Network whatever the case might be you’re getting you know 95% negative stories every murder brought to you over and over again In Living Color stream to
[00:15:01] 20 devices yeah yeah I you know this is such an important Point uh this was one of the most important pieces out of abundance that I can ever remember reading was this identification of this because we evolved that amigdala when we were running around on the plains of Africa if you heard a noise in the bushes you ran because bad news could kill you right if I missed some good news I might miss some fruit that I could eat but if I missed a piece of bad news I died so we we’re way more optimized for listening to bad news than good news because of a survival Factor um and when I noticed one thing that I noticed when we came when we were teaching courses at Singularity University when you showed somebody something new they immediately because of the unknown factor they related to it as danger right so the first when you saw somebody the autonomous car the first reaction is oh my God stop the car because that car might kill somebody uh and then we we start with this negative perception of the technology and over a
[00:16:00] long period of time we kind of evolve a better version of it etc etc we’re not evidentiary based at all in terms of how we cognit or analyze the world it’s a problem at screwing with the world right our core software our core software is fear and scarcity vers is abundance and optimism right and fear and scarcity puts you back on your heels in a protective World um versus you know abundance and optimism against a set shift where you’re taking advantage and you’re jumping on and how can I use that where can I go with it how can I make a better product or service for people yeah I mean just to wrap up on cognitive biases we have so many cognitive biases as as humans I think there’s a whole list on Wikipedia I wrote about it we write about it in the book uh exo2 um and at the end of the day uh an AI will help you if you want to nag navigate those cognitive biases another going back to the fundamentals of why Ai and algorithms are so critical we’re living
[00:17:01] in a world of an explosion of data we’re seeing the amount of data double uh every every two years um and an explosion in sensors we’re henting towards a trillion sensor economy I I call it right where autonomous cars with lar and radar and cameras and drones flying and augmented reality glasses and every is just generating massive amount of data you’re heading towards a world where you can know anything you want any time you want anywhere you want the data is there but no way to access it without Ai and algorithms it becomes a critical filtering point I mean every EXO will have to be using Ai and what’s magical I think about the llms and the generative AI That’s emerged is we can use it everywhere right uh one of our team members said hey optimize my email subject lines on our newsletter to increase our open rates and our open rates went up 25% just from that right like and so we’ll start using it
[00:18:01] everywhere across every business function accounting fulfillment sales marketing the whole lot so you know when you talk about the importance of uh of AI let me just read a couple of quotes here um Sundar Pai the CEO of alphabet has a quote that I love he goes artificial intelligence could have more profound implications for Humanity than electricity or fire I love that quote and Elon has one which is a little more Punchy he goes companies have to race to build AI or they’ll be made uncompetitive essentially if your competitor is racing to build AI they will crush you um you know I put it differently and and I said uh but still you know really black and white which is they going to be two kinds of companies at the end of this decade those that are fully utilizing Ai and those that are out of business and I think it’s that black and white yeah I really truly do it it completely is can I show can I sh Show
[00:19:01] you an image yeah please okay check this out so we incorporated an AI generative AI chatbot into the book where we you can ask it a question and it will literally look up the entire Corpus of the book uh pose it with your qu thing and then come back with an answer so I’ve asked it the question here how do I turn a Brazilian Shipping Company into an EXO and here’s the answer right it literally tells you uh identify transforma of purpose there’s MTP right it has to align the purpose with the transformational shift in company uh leverage external resources like you can benefit from collaborating with other organizations in a bunch of ways um consider an autonomous uh unit uh you create a separate autonomous unit to develop new disruptive business models and then build a culture of experimentation right and this is pretty damn good that’s like a 50k worth of Consulting right there right my entire community of 24 th000 Consultants EXO people is going hey wait a minute what
[00:20:01] did you what did you just do I I think this is so digitized them well as you often say right the crowd is a proxy for AI yeah just like an Uber driver is a proxy for an autonomous car yeah so over time we’re going to automate more and more of these tasks I think there’s this unbelievable thing that’s happened that nobody expected that we thought we’d automate manual tasks washing dishes and we just couldn’t figure out how to do that and what we’ve automated is all the white color tasks so let me show uh one image here as well um and it’s uh you know something that we’ve talked about a lot uh here we go it’s when will AI reach and or exceed human level AI so Ray Kur has for the last you know 20 years consistently predicted 2029 I mean the guy is uh is like committed to that date and uh everybody in the AI industry was laughing laughing at him uh and but
[00:21:00] eventually and it’s been pulled by all the AI experts it’s gone like from 100 years ago to 50 years ago to you know 50 years over time they all come closer to R they all come closer and closer and then recently you know Elon put this one out he said AI will be vastly smarter than any human and would overtake Us by 2025 so I mean pretty uh extraordinary now he since tweeted that you know he said I think Ray is right about the timing so maybe maybe it’s somewhere between 25 and 29 but for those listening I mean here’s the question there no there’s no question that we’re heading towards and put aside whether this is Agi or conscious it’s a matter of will this be able to be as good or better than humans in your in your company it’s coming and so how are you going to start thinking about this if you’re the owner of a business if you’re an investor if you’re uh an entrepreneur running a company you know one of the things I
[00:22:00] talk about uh critical uh to this is every company needs to create or identify hire bring in what I call a chief AI officer so that’s one one tidbit I want to offer out what is a chief AI officer it is not someone coding your own large language model it is not someone who is uh who is really coding it’s more someone who understands what’s going on they understand it at a core um and they know the players and they are helping you as the entrepreneur the CEO the business owner the investor understand you know the platforms and what to utilize because it’s moving so fast that you need that person inside your organization so one piece of advice get a chief AI officer in the book we write that by the time you read this chapter it’ll be at a date it’s such a pain in the ass to write a book these days cuz we had to rewrite big chunks of the book after chat GPT came it’s like we’re shaking our fist at the gods around this I want
[00:23:01] to go on a little bit of rant okay I you know the 2029 number which is called the technological singularity often which is well Ray talks us about the singularity is 2045 yeah versus 2029 either way I hate the discussion and I’ll I’ll explain why one we don’t know what intelligence is right now we have about a dozen facets of intelligence and we measure two pieces of it which is the speed of thought processing and the ability to match Concepts across Frameworks that’s how we currently think but we have emotional intelligence we have spatial intelligence we have the Eastern concept of presence or awareness we don’t touch on any of that so what do we mean by intelligence is one big hairy problem of a question and the second which touches on the chat GPT stuff is what would you constitute overtaking the minute I can prescriptively describe a task an AI orot is going to do much better than me anyway so I find it it’s a great kind of framing discussion but I don’t find find it that useful I think as you said before it’s how will you use
[00:24:03] AI just like in chess we all use AI now in chess to help us M navigate and do the bog standard openings and then it comes down to the chess the AI plus a human being that always turns out to be the best uh competitor and I think that’s where the world would end up I mean there’s a lot of dystopian conversation going on right now around Ai and let’s dive into that cuz I I really want to take it head on so there are two conversations one is Will AI take your job the second conversation is Will AI destroy humanity and both of them are just are just igniting our amigdalas it’s like boom boom boom right and and I don’t think the new the global news has really taken it on yet but they’ll have a Heyday we’re going to see a why don’t you tackle the Consciousness one and I’ll tackle the jobs one all right well listen first of all you I was reading a book called a thousand brains by Jeff Hawkins um and it’s uh it talks about how the brain works and this idea of these cortical columns and three-dimensional spacing as the means
[00:25:02] by which and I think it’s clear to a lot of people who’ve studied this that currently AI as it’s being built um is orders of magnitude you know it could be you know Millions not billions of times less complicated uh which it has a long way to go to get to the level of complexity of the human brain and uh and so I’m not worried about AI becoming conscious anytime soon the place I get concerned is nefarious actors you know terrorists uh uh individuals who are unfortunately uh looking to do more harm than good using AI to do that and it’s going to be as always you know a virus antivirus competition um in that in that world uh and so that’s the that’s my near-term concern and how do we do that right so um we’ve seen Intel for example come up with a set of algorithms to
[00:26:01] determine deep fakes at 99.5% accuracy recently so you know we’re going to have problems and we’re going to solve them and I could say the world’s biggest problems the world’s biggest business opportunities the presidential candidate in the turkey presidential election just resigned because of a sex porn tape that surfaced that he claims as a deep fake I know it’s just it’s just crazy how pervasive wait till the US elections 24 I mean you know we have we have all of these these technologies that are being able to clone your voice and you’re going to get a a call from your mom asking you you know passionately please son go vote for you know for this candidate it’s it’s crazy so I have a different take on the Consciousness thing you know we we have the same problem we have no idea what Consciousness is right and and um we don’t know how to define it we don’t know how to test it um and so when I think about Ai and I’ve heard you make this point you look at page rank it’s
[00:27:00] evolving its own intelligence scanning billions of web pages at the same time and it’s a completely complimentary type of intelligence to human intelligence it’s not replicative right the the the Hollywood side will always portrayed as a dystopian Matrix Terminator uh Skynet thing if we’re lucky the robot overlords come and treat us like pets and if we’re unlucky we’re food right like that’s pretty much that range that occurs but in reality we’re adding capability to human uh intelligence not subtracting or replicating in any way that I’ve seen I want to go on a rant about the jobs thing right because we we we’ve worried so we did some research on this the first article that came out saying that robots are going to take all the jobs in 5 years appeared in 1964 um and we have the clipping uh the thing and every 5 years you see that you see the same kind of basic article so can we can we go back to that 1964 I don’t think it was robots I think it was um automation was going to steal our
[00:28:01] jobs yeah but this is a key point now let’s look at some data if you look at say Germany or Sweden or Korea the most automated robotics enabled manufacturing countries in the world employment has not dropped at all in fact it’s increase they have the lowest unemployment because when you automate the robot work there’s so much more work to be done in problem solving increased efficiency better design Etc my favorite example at a macro level is in the 70s when we created ATM Bank machines uh there was all this hand ringing going what will we do with millions of bank tellers that will be out of a job and and and huge consternation should we do this big ethical questions on should we not create the machines or not and what actually happened was the cost of running a branch dropped by 10x and the branches the banks created 10 times more branches and the number of bank tellers hasn’t changed at all so it turns out when we automate we increase capacity we don’t drop employment and this is we’ve seen this now time and time and time
[00:29:01] again in every domain that we’ve been able to study this so the likelihood is that um if we can do 10 times more as a programmer it doesn’t mean you need 10x less programmers we just program 10 times more well it’s important listen um to folks hearing this and disagreeing uh we’re going back to our cognitive biases we have this negativity bias and we just will tend to um to uh focus on the dystopian future because that’s what we evolve to focus on and you have to ask yourself the question the jobs that are being digitized and dematerialized and and automated um at the end of the day uh a lot of those jobs are going to be dull dangerous and dirty and a lot of people you know we’re going to have robots that are going to clean uh you know homes or hotels and that’s great I don’t think that a lot of the people cleaning doing the cleaning services that was their dream dream as a as a kid to grow up and do that so how
[00:30:00] do we allow automation Ai and Robotics and they’re both coming together these are going to be Aid driven robots and we see a whole generation of humanoid robots coming different conversation um how do we allow the jobs that are not inspiring to be done by them and how do we allow individuals to gain access to the amazing Technologies and and actually dream a bigger dream um I think you know how do you feel about Ubi are we going to have Universal basic income S I think we are I’m a huge proponent of it you know I remember about uh several years ago we ran a workshop at Singularity with Tony Robbins there and others and we kind of looked deep into Ubi and we we looked at 14 major experiments and where it was implemented fully the results were outstanding um the challenge is when you use Ubi you can actually reduce government the need for government by a huge factor and governments don’t like making themselves redundant uh and so you’ve got a cognitive bias in
[00:31:00] government wanting to wanting to uh look at this um I’d like to get back to the EXO and AI conversation though right so if you go back to your the comment that we started where you can create a billion dollar start up with three people this is absolutely possible right so the CEO would be involved in vision and strategy and Lead public facing marketing um you have a product lead that will work with AI agents to kind of refine the product work with the community to develop and Def to drop and an operations leader who will basically manage those functions and track the AI Bots as they do for their various things that’s pretty much all you need with a whole set of AI Bots that will do pretty much everything else and I think this is going to be prototypical of the future uh one thing we write about in the book uh is that there’s probably 10,000 startups that are being built on that premise right now right so many of them will fail but it doesn’t take that many to succeed to completely disrupt the existing industries that we live in yeah
[00:32:01] I think that’s a really important point you know uh for if you’re a large corporation um trying to bring AI in and uh seeing how hard it is and saying well I’m not going to get disrupted by this the challenge is uh the disruptor is not your normal competition it isn’t the large corporation down the street or the large corporation on the side of the world it’s uh literally two guys or gals in a garage using these generative AI tools and trying a crazy idea that you would never experiment with because it was too dangerous right um and and coming up with something it’s why Google purchased YouTube when they had Google videos going right it’s it’s why Facebook you know and and even look at this Microsoft buys effectively open AI right Microsoft didn’t develop uh all of these generative AI tools uh the team at open AI did and with 130 people so small
[00:33:00] teams can do amazing things so let me let me do a live thought experiment sure okay we have a friend will henchal who runs a startup called focus at will which is streaming music to put your brain in a focused right so now it’s like a Pandora type service you sign into it I wrote the whole first edition of the book listening to this music and it puts your brain in an alpha Focus dat now I can imagine if you rebuilt that company with AI you would have the AI I compose chunks of music okay play it out randomly using a Mechanical Turk type thing to a million people and said okay watch where their eyes go or whatever feedback loop to see if their brains go into a passive State and boom if that operates that way then that piece of music generates in an active State and now you do product development for free rapid experimentation right you can run a then you have a a system that’s out there optimizing for sales and running the funnel saying how many people switch from free to premium to what and what
[00:34:02] prompts can you bring to bring them back in and encourage them to sign up uh longer terms you could vary the terms by what some people might like or not like and the all the accounting and collection s is handled already so you could essentially run that entire company pretty much autonomously going forward and I think that’s what’s going to happen more and more going forward it’s just going to be thousands and thousands and thousands of companies being built on totally new premise and it’s going to be the 20-year-olds that do it cuz they have no biases from before I I totally agree and the marginal cost of starting a business is approaching zero you know uh we had a when you and I were running our workshops at Singularity University a decade ago and then 5 years ago we were showing these charts that said you know a decade ago it cost this much money to start a company yeah you have to buy the servers you have to buy the employees you to buy the software you have to buy the bandwidth to get the you know the stuff out there and then it was going from like $5 million to 500,000 to 50,000 to
[00:35:02] 5,000 to 500 and now I mean the marginal cost using generative AI I have a a summer intern um out of uh Cornell’s computer science uh team and it’s like he’s getting his master’s degree and I said are you working on any startups he goes yeah I’ve got three generative AI startups I’m working on right now like oh my God it’s like not one you know three and and multiply that um and you know I run a venture fund bold capital and we’re just seeing a massive influx of generative AI companies now I don’t know I could imagine there’s a million startups going on right now and and 99.99% could fail but you know if you have a 100 breakthrough companies that come out of no place the question is how do you how do you uh tell the difference between the you know the Cambrian garbage and the Cambrian explosion gold well the the the beauty of it is that you know I used to think of startups as
[00:36:01] turtle eggs right a turtle will lay 100 eggs and you’ve got 100 little turtles running towards the beach and the birds are eating them the animals are eating them then they get to the water and F the fish are eating them and the surface pounding on them and only five of the original 100 turtles will actually get to the bottom right and the problem if you’re an investor is which five because there’s so many chaotic conditions along the way but now forget 100 Turtles you can launch a million turtles Right and some of them are going to go nuts and I think the creative application of of chat PT and other tools in other in various domains creative writing etc etc is totally going to totally going to take take over the world can I show you my favorite chat GPT prompt yeah please okay Le so what I did was I I said uh rewrite the Bible Genesis chapter as a rap song okay and and look at this you’re going to have you’re going to have to sing it for me so it says let’s flip it back to the Genesis when the world was Dark Void in a deep Abyss God stepped up
[00:37:01] to the plate no time to reminisce spoke the words let there be light yeah he insisted in the beginning yo the Earth was formless but God had a plan his vision enormous divided the light from the dark so Flawless called the light day the dark night he was dauntless and it just goes on like that it’s amazing it’s absolutely amazing that that you can do this right in this Shakespearean it goes on and on and on it just goes on and on and on um I hope you I hope you go on camera and sing this in not I’ll let my we’ll let one of our sons do that they’re more they’re more qualified honestly it’s like you know do you start to wonder if every rap song and every book and every blog is written by generative AI it’s it’s going to be very shortly and this brings up some really really big questions right that are I think outside the scope of this discussion and to how do we deal with the infinite creativity we now have an abundance of creativity right we used to be scarce and now we have abundance hey everybody this is Peter a quick break from the episode you know I’m a firm believer that science and
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[00:39:03] back to the episode yeah one of my favorite examples uh of someone using generative Ai and a really blow my mind mindset was uh this individual as woman uh on one of my implementation workshops uh 4360 uh said I’m using gener I was saying going around the room saying what are you using generative AI for and this person said I’m using generative AI to make patent understandable cuz if you ever read a patent they’re in this obscure language and so you put in a patent amazing huh amazing you put a patent number just a patent number and say what does this patent mean in plain English in 100 words right and you get an answer now the thing that she did which was amazing is get this she said okay this is my company this is what we do and here are two patents how would we use these two patents together to transform our company holy
[00:40:01] amazing right and she got like some you know blow your mind ideas and it’s like it’s what AI is doing so well is it’s interpolating and extrapolating yeah and I mean it’s still blowing your mind right it’s just yeah my mind’s blown because now I’m thinking wow you take a company like IBM that has a huge patent portfolio yeah and you say to IBM let’s build an incubator on top of that patent port folio with generator you won’t do it yourselves because you’re at IBM but let’s help you build that and let’s see where it goes that’s incredible that’s amazing what’s put potential so you know there’s there’s all sorts of aspects of this that go forward I think it’s absolutely critical if you’re building a startup of any kind or running a company to take uh to get everybody access to generative AI first of all right and the second thing to do is to start playing with different models asking it exactly that here’s my IP what can I do with it can I can I a quick quick add-on there if you’re in a meeting if you’re in a your board
[00:41:02] meeting if you’re in uh a management meeting have have open AI or Bard or whatever you want to use open on the screen alongside and be asking it for its ideas in every conversation you’re having and I guarantee you um it will transform the speed of your conversations it becomes a thought partner in in everything you’re doing we should have had it as part of this podcast going how could we make this uh discussion a little richer well actually I mean all the questions I’m asking are just coming from you know from chat GPT not me but in all honesty uh it’s it’s incredibly uh it is your partner you know there’s a great meme going on right now and it’s uh in the loss of jobs you know it’s AI is not going to take her job it’s someone using AI that’s going to take her job and I agree with that I think everybody is going to need to have
[00:42:00] their co-pilot I was having a dinner with Reed Hoffman um I don’t know a couple months ago and we’re talking about co-pilots the idea that every profession is going to have an AI co-pilot whether you’re a lawyer a doctor an artist a writer you’re going to have uh your version of Jarvis that is there with you knows you and is making you just not even 10 times more productive 100 times more productive it’s amazing um you know I don’t want to drag this on too long but I want to come back to uh Ai and algorithms it’s it’s one of your external attributes of an exponential organization and let’s let’s sort of uh bring it back uh as advice to the entrepreneur once again um I’ll I’ll I’ll start with one and then hand it over to you sure right um here’s a big idea there is a billion dooll question that if you you the answer to that billion doll question it would transform your
[00:43:00] company and I think if you know what you’re looking for if you know it’s like I’m looking for here’s an example I’m looking for the lowest price uh real estate in the most expensive neighborhood where the house is on sale because the person passed away and has no children it’s like you know if if that is what you want to know you can find that data the data is out there and an AI can scrape it and go and gather it and give you those Target homes to go purchase um so what is that billion dollar question because the we’re heading towards a world where you can know anything you want anytime you want anywhere you want where there’s a massive amount of data and AI will parse that for you but you have to be clear like I you know talk about what I want for my kids I want them to have a purpose I also want them to learn how to ask great questions absolutely so I I take it a step further and I would say take your MTP um go to a chat GPD generative AI
[00:44:01] stability whatever equivalent and say what intellectual property or techniques or Technologies can I build to build a billion dooll company implementing my MTP and start that prompt because if you start with the MTP you’ve got the problem space nicely laid out and let it find the spaces the white spaces in that domain that need to be solved um you know your tool for MTP plus moonshots now you add AI to it and say okay how do I accomplish this moonshot yeah in fact we we we built that there’s a Peter bot version um a friend of mine my my chief AI officer which is by the way the third piece of advice bring in a chief AI officer if that’s you as an entrepreneur fantastic if you’re um if you if that’s not you if that’s not your area of expertise and doesn’t need to be bringing someone who is your strategic thinker in this Arena so Steve Steve Brown is my strategic thinker in this Arena and he built a Peter bot and so uh
[00:45:01] we did this experiment where um we started with an MTP uh and go you can go to demand.com MTP and it will help you design your MTP and then with the MTP you can go to uh SL moonshot and develop your moonshot and then um uh said uh break this moonshot down into 10 steps um that and execute it and um and give me ideas on what to do and then he said write me a proposal to The Gates Foundation to implement the first step of this and it did and it wrote this incredible proposal and letter to the Gates Foundation uh and and so this is about the speed of action right uh faster never staring at a blank SC blank page if you can develop your MTP and then hand run a process like that to make it uh to action it you now have moved nine steps forward in building out your Venture your nonprofit your business whatever and you’re well on
[00:46:00] your way right and so I think the potential for this is incredible if you’re an existing company Ai and algorithms becomes absolutely mandatory to start thinking about implementing it get a chief AI officer and you have to do that now do not wait even a week before you start applying this the other piece of advice I would give is what is the unique data that you have or that you can collect right uh we’re going to see uh large language models gener of ai ai in general sort of starting to demonetize businesses and there was an article that came out recently that said it was a leaked memo out of Google that said there’s no moat no protective uh surrounding around gener of AI models because of the rapid rise of open AI systems like stability Ai and others um but what makes you unique is the data you own and so as a company uh going out and creating a unique data set or
[00:47:01] identifying a unique data set and then applying AI to that unique data set gives you value yeah in fact we now know of companies that have taken figure out how to collateralize all their data and AI into a separate entity and they’re able to up their market cap by like four or 5x just by taking the data and collateralizing into a separate structure so it’s amazing that’s possible today yeah I was in I was at a event uh that deoe was running for chief financial officers like 3 years ago and like 500 of them uh you know anyway I know was a speaking gig for me and I asked the question how many of you have put data on your balance sheet as an asset and none of them raised their hands and I’m like that’s insane this is a very new thing we’ve actually partnered with somebody that knows how to do this so it’s hu it’s going to kind of I think that’ll be the predominant that whole idea of data is the new suddenly becomes true for but I think the point you made earlier needs to be reemphasized if you have
[00:48:00] access to a rich seam of data right there’s some incredible businesses you could build on top of that or approach a company that has existing data a nursing home Zillow which has unbelievable data on real estate and start building businesses on top of that it’s incredible what’s going to be possible any last advice for people uh thinking about this external attribute for I mean I think it’s just get started as fast as you can because this is one of those where you cannot afford to be left behind on this Paradigm you have to learn it has to become a key uh core competency inside your organization like yesterday yeah two kinds of companies by the end of this decade there you go yeah all right all right buddy see you soon enough great great conversation yeah take [Music] care