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Your business deploys AI pilots everywhere. But are they going anywhere? Or are they stuck in silos? Exhausting resources? Unable to scale? Maybe you don't need hundreds of AI pilots. You need a holistic strategy.
IBM has 65,000 consultants with Gen AI expertise who can help you design, integrate, and optimize AI solutions. So you're not just deploying AI, you're scaling it across your business. Learn more at ibm.com slash consulting. IBM, let's create. I'm Scott Galloway, and this is No Mercy, No Malice. I've known Greg Shrove, the CEO of Section, for years. Section's focus is upscaling the enterprise for an age of AI.
AI Thought Partner, as read by George Hahn. This is the summer of AI discontent. In the last few weeks, VCs, pundits, and the media have gone from over-promising on AI to raising the alarm. Too much money has been poured in, and enterprise adoption is faltering. It's a bubble that was overhyped all along. If the computer is what Steve Jobs called the bicycle for our minds...
AI was supposed to be our strongest peddling partner. It was going to fix education, accelerate drug discovery, and find climate solutions. Instead, we got sex chatbots and suggestions to put glue on pizza. Investors should be concerned. Sequoia says AI will need to bring in $600 billion in revenue to outpace the cost of the tech.
As of their most recent earnings announcements, Apple, Google, Meta, and Microsoft are estimated to generate a combined $40 billion in revenue from AI. That leaves a big gap. At the same time, the leading AI models still don't work reliably. And they're prone to ketamine-like hallucinations. Silicon Valley speak for, they make shit up.
Sam Altman admits ChatGPT-4 is "mildly embarrassing at best," but he's also pumping up expectations for GPT-5. Unless you're an investor or an AI entrepreneur, though, none of this really matters. Let's refocus. For the first time, we can talk to computers in our language and get answers that usually make sense.
We have a personal assistant and advisor in our pocket, and it costs $20 a month. This is Star Trek, 58 years ago, and it's just getting started. If you're using AI as a bubble as an excuse to ignore these capabilities, you're making a big mistake. Don't laugh. I know Silicon Valley tech bros need a win after their NFT metaverse consensual hallucination.
And as you're likely not reading this on a MetaQuest 3 purchase with Dogecoin, your skepticism is warranted. For all the hype of AI, few are getting tangible ROI from it. OpenAI has an estimated 100 million monthly active users worldwide. That sounds like a lot, but it's only about 10% of the global knowledge workforce.
More people may have tried ChatGPT, but few are power users, and the number of active users is flatlining. Most people bounce off, asking a few questions, getting some nonsense answers, and return to Google. They mistake GPT for Better Google. Better Google is Google. Using AI as a search engine is like using a screwdriver to bang down a nail. It could work, but not well.
That's what Bing is for. The reason people make this mistake? Few have discovered AI's premier use case as a thought partner. I've personally taught more than 2,000 early adopters about AI, and Section has taught over 15,000.
Most of them use AI as an assistant, summarizing documents or contracts, writing first drafts, transcribing or translating documents, etc. But very few are using AI to think. When I talk to those who do, they share that use case almost like a secret. They're amazed AI can act as a trusted advisor and reliably gut check decisions, preempt the boss's feedback, or outline options.
Last year, Boston Consulting Group, Harvard Business School, and Wharton released a study that compared two groups of BCG consultants: those with access to AI and those without. The consultants with AI completed 12% more tasks and did so 25% faster. They also produced results their bosses thought were 40% better.
Consultants are thought partners, and AI is super soldier serum. Smart people are quick to dismiss AI as a cognitive teammate. They think it can automate call center operators, but not them, because they're further up the knowledge work food chain. But if AI can make a BCG consultant 40% stronger...
Why not most of the knowledge workforce? Why not a CEO? Why not you? Last fall, I started asking AI to act like a board member and critique my presentations before I sent them to the section directors. Even for a longtime CEO, presenting to the board is a test you always want to ace. We're blessed with a world-class board of investors and operators, including former CEOs of Time Warner and Akamai. Also, Scott.
I try to anticipate their questions to prepare me for the meeting and inform my decisions around operations. I prompt the AI, quote, I'm the CEO of Section. This is the board meeting pre-read deck. Pretend to be a hard-charging venture capitalist board member expecting strong growth. Give me three insights and three recommendations about our progress and plan, unquote.
Claude and ChatGPT4's performance was breathtaking. AI returned 90% of the same comments or insights our human board made. We compared notes. They were able to suggest the same priorities the board did, with the associated trade-offs, including driving enterprise value, balancing growth and cash runway, and taking on more technology risk.
Since then, I've used AI to prepare for every board meeting. Every time, AI has close to a 90% match with the board's feedback. At a minimum, it helps me know most of what Scott is going to say before he says it. A free gift with purchase? The AI is nicer, doesn't check its phone, and usually approves management comp increases. Let's call it a draw.
Think of what this could mean for any of your high brain power work. Less stress, knowing you didn't overlook obvious angles or issues, a quick gut check to anticipate questions and develop decent answers, which you will improve, and a thought partner to point out your blind spots, risks you forgot to consider, or unintended consequences you didn't think of.
Whether interviewing for a job, admissions to a business school, or trying to obtain asylum, I can't imagine not having the AI role play to better prepare. Other scenarios where AI has helped as my thought partner? Discussing the pros and cons of going into a real estate project with several friends as co-investors.
Getting a summary of all my surgical options after uploading my MRI to fix my busted ankle so I can hold my own with my overconfident, time-starved Stanford docs. Doing industry and company research to evaluate a startup investment opportunity. Right now, the smartest people in the room think they're above AI. Soon, I think they'll be bragging about using it. And they should.
Why would anyone hire a doctor, lawyer, or consultant who's slower and dumber than their peers? Why would you hire someone with a fax number on their business card? As Scott says, AI won't take your job, but someone who understands AI will. Here are some ideas of how to use AI as a thought partner.
1. Ask for ideas, not answers. If you ask for an answer, it will give you one and probably not a very good one. As a thought partner, it's better equipped to give you ideas, feedback, and other things to consider. Try to maintain an open-ended conversation that keeps evolving rather than rushing to an answer. 2. More context is better.
The trick is to give AI enough context to start making associations. Having a generic conversation will give you generic output. Give it enough specific information to help it create specific responses. Your company valuation, your marketing budget, your boss's negative feedback about your last idea, an MRI of your ankle, and then take the conversation in different directions. Three.
Ask AI to run your problems through decision frameworks. Massive amounts of knowledge are stored in LLMs, so don't hesitate to have the model explain concepts to you. Ask, how could a CFO tackle this problem? Or, what are two frameworks CEOs have used to think about this? Then have a conversation with the AI unpacking these answers. Four, ask it to adopt a persona. Quote,
If Brian Chesky and Elon Musk were co-CEOs, what remote work policies would they put in place for the management team? Unquote. That's a question Google could never answer, but an LLM will respond to without hesitation. Five, make the AI explain and defend its ideas. Say, why did you give that answer? Are there any other options you can offer? What might be a weakness in the approach you're suggesting?
And six, give it your data. Upload your PDFs, business plans, strategy memos, household budgets, and talk to the AI about your unique data and situation. If you're concerned about privacy, then go to data controls in your GPT settings and turn off its ability to train on your data. When you work this way, the possibilities are endless. Take financial planning.
Now I can upload my entire financial profile — assets, liabilities, income, spending habits, W-2, tax return — and begin a conversation around risk, where I'm missing opportunities for asymmetric upside, how to reach my financial goals, the easiest way to save money, be more tax efficient, etc. The financial advisor across the table doesn't, in my view, stand a chance.
She's incentivized to put you into high-fee products and doesn't have a billionth of the knowledge and case studies of an LLM. In addition, she's at a huge disadvantage as the person in front of them, you, is self-conscious and unlikely to be totally direct or honest. Quote, "I'm planning to leave my husband this fall." Unquote. We all crave access to experts. It's why people show up to hear Scott speak.
It's why someone once paid $19 million for a private lunch with Warren Buffett. It's why, despite all the bad press regarding their ethics and ineffectiveness, consulting firms continue to raise their fees and grow. But most of us can't afford that level of human expertise. And the crazy thing is, we're overvaluing it anyway. McKinsey consultants are smart, credentialed people.
But they can only present you with one worldview that has a series of biases, including how to create problems only they can solve with additional engagements and what will please the person who has a budget for follow-on engagements. AI is a nearly free expert with 24-7 availability, a staggering range of expertise, and most importantly, inhumanity.
It doesn't care whether you like it, hire it, or find it attractive. It just wants to address the task or query at hand. And it's getting better. The hardest part of working with AI isn't learning to prompt. It's managing your own ego and admitting you could use some help and that the world will pass you by if you don't learn how to use a computer, PowerPoint, AI. So get over your immediate defense mechanism. AI can never do what I do.
Life is so rich.
It's time to review the highlights. I'm joined by my co-anchor, Snoop. Hey, what up, dawg? Snoop, number one has to be getting the new iPhone 16 Pro with Apple Intelligence at T-Mobile. Yeah, you should hustle down at T-Mobile like a dog chasing a squirrel, chasing a nut. That's a nice analogy, Snoop. On to highlight number two, if T-Mobile families can save 20% every month versus the other big guys. Very impressive. Take it away, Snoop. Head to T-Mobile.com and get the new iPhone 16 Pro with Apple Intelligence on them. Now drop that jingle.
See how you can save versus the other big guys at T-Mobile.com slash switch. Apple intelligence coming fall 2024. Creativity is one of the core traits that makes us human. It allows us to tell stories, to create, and to solve problems in new and exciting ways. So why does it feel so threatened? With new technological advances that can create art in milliseconds, where does that leave us? In this special three-part series, we wanted to ask, how can we save and celebrate creativity?
Tune into Saving Creativity, a special series from The Gray Area sponsored by Canva. You can find it on The Gray Area feed wherever you get your podcasts.
