How AI Will Change Business Forever

we're living in a world that has been
pummeled by exponential Technologies the
world has now turned into information
for the first time we started hearing
about artificial intelligence was at a
conference in Dartmouth in 1956. the
first article that came out saying that
robots are going to take all the jobs in
five years appeared in 1964. A.I is not
going to take her job it's someone using
AI that's going to take her job the AI
plus a human being always turns out to
be the best uh competitor it's a tsunami
of change and you're either an EXO
surfing on top of the tsunami or you're
being crushed by it gets 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 Celine Ismail the
CEO of open EXO and my co-author on a
new book called exponential
organizations 2.0 uh Celine the world is
so different than it's ever been and for
an entrepreneur especially an
exponential entrepreneur
um you're either building an exponential
organization or You're Dead on Arrival 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 trained radically like four
months ago and so everything is
different from that 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's the on
off switch there is no on off 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 Saleem what is an
exponential organization uh
and then first century organization
focused and delivering minimum 10x
better faster and 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
exos with a set of characteristics and
aeon 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 liken
it to the asteroid that impacted the
planet 65 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 these exponential
Technologies computation sensors
networks AI robotics 3D printing
synthetic biology ARB or a blockchain
all these technology are just like
transforming you know it's a 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 six
months knows that one of those tsunami
causing uh attributes is AI and
algorithms so let's jump into that uh
it's a super exciting opportunity and I
I've 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
three-person billion dollar 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 six D's 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 tsunami of data we
actually need Ai and algorithms to help
manage and massage it all in the
business models that emerge for that are
going to be really profound so if we
look at a quick definition
um Ai and algorithms are the use of
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 the
quintessential example of this with the
creation of AdSense and and uh and
pagerank and pagerank
um and the massive amount of value is
Created from that is unbelievable and
now we're seeing that pervasively being
applied across the board the world runs
on AI to day yeah no it does and just
just to put AI in a frame I think that
uh people can unders appreciate is why
now what has changed because there's
something that's actually changed in the
last five 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
hearing about artificial intelligence
was at a conference in Dartmouth in
1956. and then people say well no it's
the Deep learning models and deep
learning Concepts that are new 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 you well know is
computation right we're in this massive
growth of computation that's doubling
every 18 to 24 months Moore's Law what
Ray Kurzweil 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 that are are being
deployed and that's allowing us to run
these deep learning models that were
never possible at scale before yeah
we've you know in the past we were
focused on narrow AI right fuzzy logic
in your digital camera or anti-lock
brake systems or credit card fraud
detection very Niche applications then
we went to deep learning where you 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 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 two years
we're about to hit
175 Zeta bytes I love that which is 175
billion million megabytes of data and
this data is now labeled uh I it was an
article recently that said we're going
to create a new term called a Yoda byte
which is coming online I love that you
know the stat that always blows my mind
is that because 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 in the last six 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 I would suggest that we
can't comprehend or process that a quick
break from our episode on June the 6th
Saleem and I are going to be running a
free three-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've built that
allows you to query the book and helps
you design your exponential organization
it's June the 6th it's three hours it's
free we've never done this before click
on the link below diamandis.com
backslash EXO and join us all right now
back to the episode so computation
massive amount of data labeled data
which is really the food stock for the
large language models you know open AI
stability Bard 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
percent in the last five 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 dollars to sequence one
genome now you know it's a hundred bucks
so 100 million dollars you know we'll
we'll sequence I mean 100 million
dollars will sequence a million genomes
not one genome in the same way it used
to be you know uh call it a thousand
bucks uh to sequence you know to
actually train 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 listen you're 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 pandemic 160
billion dollars of global corporate
investment went into AI alone
crazy and then 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're looking at what data sources what
can I turn into information and then you
need algorithms to make sense of it all
and the comment that you made earlier
about startups being created out of this
are going to be profound 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
to build a contract and 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 2020
two in January two months later it
passes the U.S medical licensing exam
USMLE which is insane you normally need
you know four years of medical school
two years of residency or internship to
pass that and it does that and here's a
good example of how it's going to
massively disrupt I think eventually two
things are going to happen your AI will
be your diagnostician zero question
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 I may I may have shared this
before I don't know seven thousand seven
thousand seven thousand per day so ask
yourself how many of those journals has
my doctor read this morning well uh
Daniel Kraft the one he referenced to me
was that there's 2 500 cancer research
papers published today right so if
you're an oncology just there's no way
you can keep track of all that you need
an AI to Just Surf that tsunami of data
and make sense of it all yeah we have uh
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 and upload every year and it's
150 gigabytes of data it's their full
genome full body MRI brain brain
masculature coronary CT you know 80
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 some 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 it let's dive into that one
second and 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
spelled a-l-e-x uh a sitting across the
room here I should 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 conversations 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 we
have a very little flow and so over over
evolutionary time period our brains
evolve these cognitive biases they were
neural hacks to help you reach
conclusions quicker like a similarity or
a familiarity bias someone who looks
like you you trust more or recency bias
you give higher value to more recent
information
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 which you
give far more value to negative news
than positive news what was the stat you
and Stephen uncovered in abundance is it
10x yeah so yeah this is something that
Stephen Cutler 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 if I'm in
a conference someplace I'll play the
game and count the negative stories to
positive stories it's ten 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
colors yeah yeah you know this is such
such an important point this is one of
the most important pieces out of
abundance that I can ever remember
reading was this identification of this
because we evolved that amygdala 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 that died so if you were happy
we're way more optimized for listening
to bad news than good news because it's
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 start with this negative
perception of the technology and over a
long period of time we kind of evolve a
better version of it etc etc we're not
evidentially based at all in terms of
how we cognate or analyze the world it's
a problem it's screwing with the world
right our politics software yeah our
core software is fear and scarcity
versus 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 mindset shift where
you're taking advantage and you're
jumping on 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 exo2
um and at the end of the day uh an AI
will help you if you want to navigate
those cognitive biases another going
back to the fundamentals of why Ai and
algorithms are so critical we're living
in a world of an explosion of data we're
seeing the amount of data double uh
every every two years and an explosion
in sensors we're hinting towards a
trillion sensor economy I call it right
where autonomous cars with lidar and
radar and cameras and drones flying and
augmented reality glasses and everything
is just generating massive amount of
data you're heading towards a world
where you can know anything you want
anytime 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
degenerative AI That's emerged is we can
use it everywhere right 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 him so we'll start using it
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 pichai 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 but still you know really black
and white which is they're going to be
two kinds of companies at the end of
this decade those that are fully
utilizing Ai and those are out of
business
and I think it's that black and white
yeah I really truly do it completely is
can I can I show 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 questing and then come back
with an answer so I've asked it the
question here how do I turn in Brazilian
Shipping Company into an EXO and here's
the answer right it literally tells you
uh identify a transformative of purpose
there's your MTP right it has to align
the purpose with the transformational
shift in company leverage external
resources like you can benefit from
collaborating with other organizations
in a bunch of ways consider an
autonomous uh unit 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
24 000 Consultants EXO people are going
hey wait a minute what did you what did
you just do I I think this is so funny
digitize them well as you often say
right the crowd is a proxy for AI yeah
yeah just like an Uber driver is a proxy
for an autonomous car yeah so for sure
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 tests so let me show uh kind
of one image here as well
um and it's uh you know something that
we've talked about a lot uh here we go
and when will AI reach and or exceed
human level AI so Ray Kurzweil has for
the last you know 20 years consistently
predicted 20 829 I mean the guy is uh is
like committed to that date and uh
everybody in the AI industry was
laughing at him uh and but eventually
and it's been polled by all the AI
experts it's gone like from 100 years
ago to 50 years ago to you know 50 years
now they all come closer to rape 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 Rey 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's 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 an entrepreneur running a
company you know one of the things I
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 out of date
such a pain in the ass though right in
front of these days because we had to
rewrite big chunks of the book after
Chachi PT came out it's like you're
shaking her fist at the gods around this
I want to go on a little bit of rant
okay you know the 2029 number which is
called the technological singularity
option which is well Ray talks to us
about the singularity is 2045 yeah
versus 2029. either way I hate the
discussion 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 as one big hairy
problem of a question and the second
which touches on the Chachi PT stuff is
what would you constitute overtaking the
minute I can prescriptively describe a
task in AI 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 it
that useful I think as you said before
it's how will you use AI just like in
chess we all use AI now in chess to help
us man navigate and do the Box standard
openings and then it comes down to the
chest the AI plus a human being that
always turns out to be the best uh
competitor I think that's where the
world will end up I mean there's a lot
of dystopian conversation going on right
now around AI let's dive into that
because 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
are just igniting our amygdalas it's
like boom boom boom right and and I
don't think the new the global news has
really taken on yet but they'll have a
Heyday we're going to see a whether you
tackle the Consciousness one and I'll
tackle the jobs one all right well
listen first of all you know I was
reading a book called a thousand brains
by Jeff Hawkins and it it talks about
how the brain works and this idea of
these cortical columns and
three-dimensional spacing as the means
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 if 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 anti-virus
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 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 problem is
the world's biggest business
opportunities the presidential candidate
in the turkey presidential election just
resigned because of a sex porn tape that
surface that he claims is a deep fake
I know it's just it's just crazy how
pervasive wait till the US elections in
2024. it's gonna be I mean you know and
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 especially please son go vote for
yeah you know for this candidate
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 and when I
think about Ai and I've heard you make
the spring you look at pagerank it's
evolving its own intelligence scanning
billions of web pages at the same time
and it's a completely complementary type
of intelligence to human intelligence
it's not replicative right the the
Hollywood side will always portrayed as
a dystopian Matrix Terminator uh Skynet
uh thing if we're lucky the robot or
it's come and treat us like pets and if
we're unlucky we're food right like
that's pretty much that range that it
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 five years appeared in 1964.
um and we have the clipping uh the thing
and every five 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
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
increased they have the lowest
unemployment because when you automate
the robot work there's so much more work
to be done in problem solving increase
deficiency 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 the huge consternation should we do
this big ethical questions and 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 that 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 again in
every domain that we've been able to
study this so the likelihood is that
um if you 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 focus on the dystopian future
because that's what we evolved 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 a lot of those
jobs are going to be dull dangerous and
dirty and a lot of people you know we're
gonna 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 as a kid
to grow up and do that so how do we
allow automation Ai and Robotics and
they're both coming together and there's
going to be AI 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 slim 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 and so you've got a cognitive
bias in government wanting to wanting to
look at this 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 startup 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 a community to
develop and Define 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 I think
that's a really important point you know
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 disrupter 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 the 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 even look at
this Microsoft buys effectively open AI
right Microsoft didn't develop uh all of
these generative AI tools the team at
openai did and with 130 people so small
teams can do amazing things so let me
let me do a live thought experiment sure
okay we have a friend will Henshaw who
runs a startup called focus at will
which is streaming music to put your
brain in a focus now it's amazing 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 puts your brain in an alpha
Focus State now I can imagine if you
rebuilt that company with AI you would
have the AI 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 an active State
and now you do product development for
free rapid experimentation right you can
run a collection 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 freemium
to what and what 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 side is
handled already so you can 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 a totally new premise and it's going
to be the 20 year olds that do it
because they have no biases from before
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 singular
University a decade ago and then five
years ago we were showing these charts
that said
you know a decade ago it cost this much
money to start a company several million
dollars yeah you have to buy the servers
you had to buy the employees you had to
buy the software you had to buy the
bandwidth to get the you know the stuff
out there and then it was going from
like five million dollars to five
hundred thousand to fifty thousand to
five thousand to five hundred 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 startup schools 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 hundred 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 beauty of it
is that you know I used to think of
startups as turtlenecks 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 fire the fish are eating
them and the surface pounding on them
and only five of the original hundred
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 Chachi PT and other tools
and other in various domains creative
writing etc etc is totally gonna totally
gonna take over the world can I show you
my favorite chat GPT prompt yeah please
okay so what I did was I I said uh
rewrite the Bible Genesis chapter as a
rap song
let's flip it back to the Genesis from
the world were Dark Void in the Deep
Abyss God stepped up 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 light day The Dark
Knight he was dauntless and it just goes
out like that it's amazing it's
absolutely amazing that you can do this
right in this Shakespearean and it goes
on and on and on it just goes on and on
and on uh I hope you I hope you go on
camera and sing this
one of our sons do that they're more
they're more honestly it's like you know
do you start to wonder if every rap song
in every book and every blog is written
by generative yeah 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 two how do we deal with
the infinite creativity we now have an
abundance of creative activity right it
used to be scarce and now we have
abundance hey everybody this is Peter a
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to the episode yeah one of my favorite
examples of someone using generative AI
in a really blow my mind mindset was
this individual is a woman on one of my
implementation workshops for a 360 uh
said I'm using general I was saying
going around the room saying what are
using generative AI for and this person
said I'm using generative AI to make
patents understandable because if you've
ever read a patent they're in this
obscure language and so you put in a
patent up amazing huh amazing you put
the patent number just the patent number
and say what does this patent mean in
plain English in a hundred 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 patterns
together to transform our company
holy 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 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 the IBM let's
build an incubator on top of that patent
portfolio with General 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 let's put potential yeah 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
P what can I do with it can I can I make
a quick a quick add on there go if
you're in a meeting if you're in uh uh
your board meeting if you're in 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 uh in in everything you're doing
we should have had it as part of this
podcast screen 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 yeah 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 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 or an artist a writer you're
going to have uh your version of Jarvis
that is there with you know 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 start with one and then
hand over to you sure right
um
here's a big idea there is a billion
dollar question
that if you knew the answer to that
billion dollar question it would
transform your 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 tpd generative AI
stability whatever equivalent and say
what intellectual property or techniques
or Technologies can I build to build a
billion dollar 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 Moon
shots now you add AI to it and say okay
how did I accomplish this moonshot yeah
and in fact we we built that as a
peterbot version
um a friend of mine 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 it doesn't
need to be bring in someone who is your
strategic thinker in this Arena so Steve
Brown is my strategic thinker in this
Arena and he built a peterbot and so we
did this experiment where um we started
with an MTP on and go you can go to
dmandis.com backslash MTP it will help
you design your MTP and then with MTP
you can go to uh Slash moonshot and
develop your moonshot and then said
uh
break this moonshot down into 10 steps
um that I can execute it and um and give
me ideas on what to do uh 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 is it
about
the speed of action right uh faster
never staring at a black screen if you
can develop your MTP and then hand run a
process like that to make it to action
it you now have moved nine steps forward
in building out your Venture your
non-profit your business whatever and
you're well on 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 we're
going to see uh large language models
generative ai ai in general sort of
starting to demonetize businesses and it
was an article came out recently
that said
it was a leaked memo out of Google I'd
said there's no moat no protective uh
surrounding around gender 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 going out and
creating a unique data set or
identifying your 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 five x just by taking the data and
collateralizing into a separate
structure so it's amazing what's
possible today yeah I was in I was at a
event that Deloitte was running for
chief financial officers like three
years ago and like 500 of them uh you
know anyway I don't know there's a
speaking gig for me and I asked the
question to me 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 huge it's gonna kind of I think
that'll be the predominant that whole
idea of data is the new oil suddenly
becomes of two fruition but I think the
point you made earlier is needs to be
re-emphasized if you have access to a
rich scheme 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 them yeah 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
quick conversation yeah take care
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