In short
Summary of Podcast Episode: "The AI Implementation Audit: What Section’s CEO Learned in 18 Months"
Podcast Information
- Title: Beyond The Prompt - How to use AI in your company
- Host: Jeremy Utley, Henrik Werdelin
- Guest: Greg Shove, CEO of Section
- Episode Description: A deep dive into the learnings from Greg Shove's 18 months of AI implementation at Section, highlighting the rise of Pro AI and discussing the changing landscape of business due to AI.
Key Themes and Takeaways
AI as a Baseline Requirement
- AI Proficiency is Essential: Greg emphasizes that AI use is no longer optional; proficiency with AI tools is now a basic requirement for organizations.
- The AI Class: Organizations must ensure their employees are part of the "AI class" to remain competitive.
- Expectation Shift: The expectation is that not using AI will leave organizations at a disadvantage.
Business Model Disruption
- Beyond Tech Disruption: The real disruption will come from new business models rather than products themselves.
- Example: Transition from time-based pricing to outcome-based pricing.
- Service Industries Impacted: Industries such as SaaS and law firms are particularly vulnerable to margin compression due to AI-native competitors.
Cultural and Internal Challenges
- Cultural Taboos: There is a perception that using AI feels like cheating, influenced by traditional work ethics valuing hard work and effort.
- Fear of Adoption: There is a notable fear among organizations leading to stalled AI adoption; leaders need to encourage AI use openly.
Leadership and AI Strategy
- From Policy to Manifesto: Greg advocates for a shift from fear-based AI policies to a proactive AI manifesto.
- Leaders should encourage AI usage and model this behavior themselves.
- AI Upskilling: Traditional upskilling methods are becoming obsolete; AI-powered coaching focused on outcomes is the future.
The Future of Work and AI’s Role
- AI-Powered Coaching: Greg launched Pro AI, an AI-powered coaching tool, that helps individuals become proficient in using AI effectively.
- Cognitive Offloading: The risk of becoming overly reliant on AI, leading to cognitive decline, must be managed. Individuals should maintain their judgment and not merely cut corners.
Episode Structure
Time Stamps
- 00:00 - 01:10: Introduction to guest Greg Shove and his overview of AI.
- 01:10 - 03:59: Discussion on AI tools and their integration into daily work.
- 03:59 - 12:45: Insights on business model disruption due to AI.
- 12:45 - 19:14: Challenges in training and adoption of AI in organizations.
- 19:14 - 32:02: AI's impact on the future of work and job roles.
- 32:02 - 35:20: Leadership strategies for successful AI implementation.
- 35:20 - 39:39: Embracing AI in the workplace and workflow redesign.
- 39:39 - 40:12: The evolving role of AI agents.
- 40:12 - 45:14: Challenges organizations face in AI adoption.
- 45:14 - 51:03: Pro AI: The AI-Powered Coach discussion.
- 51:03 - 57:52: Disrupting business models with AI insights.
- 57:52 - 01:03:02: Final thoughts and reflections on AI’s future.
Conclusion This episode provides a sharp, realistic look into the necessity of AI in modern business practices and the impending disruptions across various industries. Greg Shove’s insights serve as a call to action for leaders to embrace AI not only for efficiency but also for a transformative shift in business models and workplace culture. The conversation emphasizes the urgency of adapting to AI technologies while maintaining human judgment and ethics in the face of rapid change.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00You have to say to your team, this is not cheating. You have to say that working with AI is working smarter. You have to say that we want you doing this. We have all these deeply held cultural beliefs about work. Don't cut corners. Hard work is a virtue, right? Don't cheat. And we've got to shift all that. Because right now, for a lot of people, it sounds like it's cheating using AI. It sounds like you are getting an unfair advantage. Hi, I'm Greg Shog. I'm the CEO of Section, the founder of Machine and Partners and the author of Personal Math. I'm Canadian, so I believe everybody should have access.
0:38I'm British, so I don't give up. I'm an American and I believe in outsized opportunities. This is a conversation I've actually been wanting to have for the last six months, because ever since we had you on the first time, there were so many threads that we could keep pulling and keep exploring. And I've continued to follow you and your work and sections work. And I've been really impressed at how you have kept your finger on the pulse of what's changing, what's developing, and I've been looking forward to kind of doing a where are they now episode. We've not done this before. This is the first time we're doing where are they now episode.
1:10So talk to us for a second about what has changed in the last 18 months, in your view. All right. A lot, and in some ways, not so much. So we'll focus on what's changed. Here's one, just to get us started. I have an AI monitor now on my desktop. So I've got a third monitor on a vertical horizon, just out of my line of sight, but in it as well. meaning it's my, and I can see it all the time when I'm working. And on that is one browse with three tabs for Buck City, GPT, and Claude open all the time. Claude usually my default. So it usually says, good morning, Greg, or good morning, Captain, which is how I like my eyes to address me.
1:54And that's kind of always there for me. That has increased my AI usage. It's kind of an upgrade from my post-it note that I used to have on my monitor that said, ask AI. This is the$100 upgrade, which I started in January. So that's one thing that's changed. And it's been really interesting for me. And I think a hint of what's to come when our AIs are really with us all the time, right? Listening, watching, you might've seen that Google feature. It's not yet ready for consumers, but it's in the development studio part of Google in terms of accessible to developers where you can screen share with Gemini Pro.
2:27When you see where this is going, you realize how pervasive these tools will be in our lives. And my little AI monitor was my experiment to understand what that feels like so that i don't forget to use ai i make it easy to use ai reduce the friction to work with ai and then i cut and paste that work and bring it into my main monitor my main workspace do you still use writing or do you use like whisper flow or something like that and you recently talked to it yeah i just got i just got uh uh was it whisper what's it called super whisper whisper flow there's a few different ones it's got one of those up and running actually this past week and of course i still use a lot on events voice on gpt on the phone but uh that's new.
3:05I tell you what else is new for me. Obviously, the reasoning models, their capabilities, they still hallucinate like crazy. So that hasn't changed. We've, I think, made almost no progress in hallucinations from my perspective in terms of sort of everyday consumer use. But the reasoning models are powerful. And I think that mental model we all used a year ago, that AI was like a summer intern, tireless, hardworking, but makes surprising mistakes. That's the wrong mental model or frame. If any of us are still using that model, we need to update it. It's now an analyst. It's now a first or second year MBA.
3:39It's now a very competent research analyst. So it's moving up the org chart, AI is in terms of knowledge work. And it's gone from$100 an hour to$200 an hour is kind of my perspective on it in terms of its capability. An hour of human time at around$200 is converted to a minute of reasoning time. So I do think what hasn't changed yet, and I do want to talk about today if we have time, is we haven't seen any business model really disruption. We've seen mostly technology and product disruption, if you will, some behavior change in terms of we don't use Google as much, we use AI more and more. We haven't yet seen business model disruption, but it's coming and it will be more dramatic than the technology disruption.
4:23Say more about that when you say it'll be more. If you think about the great companies, the really great companies, what VCs call generational companies now, used to be unicorns, now we call them generational companies. But if you look at Airbnb, AWS, Uber, Fiverr, these companies, the significant ones, have changed the business model as much as they changed the product experience. So they certainly changed the product experience first. They innovated on the product or service that they were offering using technology and using the disruptive nature of the new technology, whatever that might be, mobile or cloud or whatever.
5:00But really what they did that was more dramatic that the incumbents could not match is the business model disruption. Because incumbents can eventually catch on product. They can throw more people at it. They're going to be later. And so it's going to cost them more. Google is catching up with Gemini. And so, you know, that eventually kind of equals out at some point, but the business model disruption crushes the competitors and the incumbents, changing how you make money, changing how you charge for it. And I just can't see anything but a deflationary pressure, a long-term significant deflationary pressure on any product or service where human capital is the primary input.
5:43What are the implications of that as you play it forward, that long-term deflationary pressure? If I'm a manager or even a director, a junior employee, what are the implications of that reality on how I move forward? Sure. I think the implications are in the short, if you are a team leader, manager, CEO of a company selling a product or service where human capital is 50 % or more of the input, that by the way is all of software. All of software, the whole industry, its biggest input is human capital. All of consulting, most services businesses. Human capital is the primary ingredient, the primary cost of goods, the primary input, labor input, knowledge work.
6:26So if you're in one of those companies, you will enjoy a short-term margin expansion. So in the short term, you're going to think AI is good. And if you're not using AI, you're going to miss out. If your organization is not using AI, you're going to miss out on that margin expansion. That's going to be deceptive. It's going to be good, but deceptive. It's going to be a sugar high. And then the crash will come, meaning prices will deflate rapidly in your sector or vertical or category. Driven by AI native competitors that use the business model disruption more than the product disruption to win.
7:10Can I ask a little bit more on the business model? Maybe just to, this sounds like I'm kind of flaunting a business I'm working on, but like we're building this business that helps people make startups. So basically makes agendic businesses. So we have people come in through Instagram saying, I'd like to start a business. And then we help them identify what the business should be. And we built, you know, like the agent and then we help them sell it. Now, the business model is not equity. It is a royalty because basically the business model, they will never sell to anybody. So it doesn't matter to have equity.
7:45But obviously, it will take, I think, over a lot of intercapital. And so we raised a bunch of money to kind of do this. Is that the type of business model change that you're thinking? Or should I think about business model changing in a different way? No, I think that's one great example of a different business model. Another, obviously, is charging for agents. And you're doing something similar in terms of the royalty. When you think about OpenAI, what they're kind of hinted at is that they want to charge enterprise fees for agents that are not like software fees. If you think about software fees, they're per seat fees.
8:22And by the way, OpenAI kind of screwed themselves and the whole industry, I think, by charging 20 bucks for ChatGPT. Because it set a floor and a ceiling at the same time that AI was worth 20 to$25 a month in that range, right? Enterprise AI costs a little bit more, but not much more. Or when you negotiate with discounts, you probably get it for less at volume. So they really kind of hurt themselves, I think, in the industry in terms of really for a lot of value, for a lot of capability. So when they're now selling$100 kind of access, it's really like you'll buy like$100 MBA agent instead? Yeah.
8:54Well, they're saying they're going to cost between$2 ,000 and$20 ,000. And that's what they kind of indicated a few months ago. And maybe they're kind of spitballing on future pricing and future products. I don't know if they can get away with that. It's still software. So if I'm the buyer and I'm not sure that I'm going to let you charge me a fraction of the human labor cost, that's what OpenAI is proposing or suggesting. Hey, this is an agent that takes the place of a human. You pay the human$100 ,000. So why wouldn't you want to pay us$20 ,000 for an agent that does just as well? That is a new business model.
9:26It may or may not work and they may or may not even announce, you know, actually go to market with that. But you can see what they're trying to do. They're trying to reset the value of AI because they started at$20 a month. And sure, they have a premium plan at$200 a month, but it's still not significant. Another example, the obvious one is lawyers. Just think about all the guys in professional services. It's the time and materials business model being switched to an output business model. Paying for output or outcomes versus paying for time and materials. Law firms know AI will make them dramatically more efficient.
9:58And they are quietly implementing AI and not telling their clients. or trying to at least not make it that obvious how much work is going to be done by AI. Why? Because they don't want to reduce their fees yet. They are going to enjoy this margin expansion in the short term. They're going to lay off paralegals and they're going to make their junior associates more productive with AI and all that stuff. But the real disruption will be the AI native law firm comes along and says, we're not going to charge you$20 ,000 to do a contract that takes this many hours because it doesn't take that many hours anymore.
10:34So you talked about the leadership perspective. What about kind of day-to-day rank and file employees? What are the implications, again, of that deflationary pressure on what it means for work? Yeah, the first thing you got to do is war game it. The first thing you have to do is acknowledge to yourself and your team, this is going to happen faster. And even if it doesn't, why not be ready? So this might sound fantastical. This might sound very hypothetical and in the future, like, hey, this whole industry will change its business model from time and materials pricing to, you know, to outcome pricing or output pricing.
11:07But let's assume it happens in three years. So the very first thing you do is just war game. Get everybody in a room on Zoom, you know, in front of a whiteboard and just start doing scenario planning. What would you do? How would you react? What would your pricing be? If you were in a competitive situation for the first time in six months with an AI native version of your firm or your product or your service, and the AI native guys are pricing it this way, what would you do? Could you even compete? So the first thing you do in my mind is war game it, scenario plan it, and at least be ready, at least have a backup plan, you know, kind of in your back pocket.
11:45If this starts to happen, you know, I'll start doing this. I'll start rethinking the product. I'll start rethinking the pricing. I'll get ready for kind of a different business model. The other, of course, question is, should I do this? Should I go on the offense, right? Disrupt ourselves, yeah. Disrupt yourselves. Hardest thing to do. Who wants to do it? Which law firm? Which maybe? It must probably, I've read somewhere that Google's like AI kind of thing is just converting much worse than their normal kind of like. But obviously they have to do it. And so it probably would have like dramatic kind of internal conversations.
12:21They have dramatic conversations about if they should do this or not. Absolutely. They have to. I mean, it is terrifying when you flow the changes through the business model at scale. It never looks gookas. But barter work. When I talk to consumers about those, you know, Google NI answers, those summaries, consumers love them. Of course. Let me ask you another question. You were fast out of the gate. I think you probably was one of the first that made like a real robust training kind of module for people to kind of understand how to use all this stuff. And so good for you on that. A few questions on that.
12:56One is, what is the thing that you've learned by now seeing a bunch of people kind of coming in and trying to learn this? What's your observation and maybe what is some of the advice based on that? Sure. Two observations. One on the user side, if you will, the employee. One on the buyer side, the boss. On the employee side, they struggle finding their use cases fast enough. So we are able to get people more proficient, lower their anxiety, raise their proficiency. That's job one in terms of upscaling people. But they then struggle with finding their use cases. So a lot of our efforts in terms of our sort of training and change management are more focused there now.
13:37Get them quicker into the two or three or four use cases at work that they'll get value from. Actually see a productivity gain, actually see a little bit of time savings, improve the quality of their output and so on. They find those gains faster at home. They find those gains faster with parenting advice, therapy advice, travel planning, with medical second opinions. You can see those really good use cases for home use, but at work it's harder. Why is that? Is that just because people don't know how to think of product? Yeah. Yeah. I think it's just, you know, what does this thing do? How reliable is it?
14:11Am I really going to use it to create a work product? And will someone judge my work product? And if it's hallucinated or is it cheating? even though we still have some of those attitudes, I think, there to getting in the way at the employee level, which is I'm cutting a corner, I'm cheating, I shouldn't be doing this, or where should I be using AI? And so I think that's still in the way, that kind of attitude and anxiety around that. And also this idea of finding faster a couple, three use cases. We're intolerant. We don't get a search result sub one second. We get angry, right? And AI can take 30 seconds and then crap out.
14:48So if you think about, so that in a work setting, if you're at home and you're trying to get a medical second opinion and you had to wait, you know, 30 seconds for a reasoning model provided, you're going to be patient. It has so much value to you at home to get a medical second opinion that's good, especially if you're panicked about something. And AI can really deliver there. At work, you know, you don't want to wait 30 seconds. You know, you're off to the next task, right? Your to-do list is endless. You're overworked. You're underpaid. And now they're saying, get good at AI. Now on the buyer side, here's what's getting in the way.
15:22Just inflated expectations. Inflated expectations, leaders are not being clear around that, plus leaders are not being clear around what's going to happen. I can't tell you how many leaders say to me, hey, Greg, I need your help. Let's deploy. Let's get high levels of adoption. I just don't want you or any of us talking about job loss. Like, really? Like, you think your employees are that stupid? Like, come on, guys. Like, it's not an easy conversation to have. I'm not suggesting it is. But not having it. Do you think that's the same reason that every time somebody brags on LinkedIn that they've done something with AI, about one third of the comments are like, I'm going to cancel you now because basically you get it.
16:11Yeah. Listen, this is no different than people putting cones, traffic cones on the top of Waymo cars in San Francisco to disable the sensors, right? It's sabotage. And we're going to see versions of this. We're going to see everything from more direct sabotage to just disengagement, hostility on social media and so on. It's inevitable. Will you play through that job loss statement? You know, you say leaders talk about, please don't say anything about job loss. If you had a leader that said, say whatever you think is true, what's the message? Yeah, I think the message is simple in some ways. This is the message that I deliver to my team every few months as I encourage them to use AI more and more and more, like AI everywhere.
16:57We want to be fully AI enabled. And we're obviously a small team, 30 of us, and we're an AI company, so we should be. But what I say is, listen, in a year, one of three things will happen to your team. Some teams will be smaller. We will use AI in that team. The team will be able to do more work and we'll make the team smaller. Some teams will be the same size doing more work because AI will enable us to do more work. And some teams will be bigger. This is not most teams. I think most teams end up being smaller, but some teams are going to be bigger. Meaning if AI makes someone that much more productive and you want more of that in your business, you want more of those people using AI.
17:41Sales is the obvious example. If sales is enabled by AI to hit quota more efficiently, then I want more salespeople, not less as a CEO. I probably want more software engineers. If AI makes software engineers two or three X more productive, which is what it seems like it does. And I, my roadmap is always, you know, never enough. I've never got enough software built on time. I want more software engineers, not less. So I do think in some teams, in some companies, depends on companies, depends on the industry, depends on are you growing or not? Is your business maturing, flatlining, declining, or is it growing?
18:15When you're growing, AI will have less of a job impact. It will make everybody more productive because the company's growing, or the business is growing. But that's what I say. And what I say is, I don't know which teams. Let's just be honest about it. And let's just go in knowing that there's one of free outcomes here. How does that affect folks' motivation and engagement? I think it's mixed. Let's be honest. But, you know, if we don't talk about it and face it internally, again, it's not like they don't go home and talk about it to their friends or spouse or their partner. like it's on everybody's mind.
18:51You know, I've got a 23 year old kid who's an inside sales rep at LinkedIn. You think, I mean, like he's sitting around like, you know, they're using GPT, they're using GPTs that he reads about, you know, drives on one-on-one and sees the billboards that say, you know, AI SDR or AI sales, you know, stop hiring humans. Well, let's talk about that. Let's talk about the employee for a second, because you mentioned earlier that they struggle finding use cases. One question I have is, is it a bandwidth issue? I think there's this pressure of you need to produce more, you need to be more efficient, you need to be more effective, etc.
19:30And then the question of how do I use AI? It's like, I don't have the bandwidth to even consider it. Whereas at home, when I need a second opinion, that's something that I will give, I'll stay up late to do that, right? What are you seeing as the primary obstacle? Yeah, I think it's bandwidth. I think it's poor training. And by the way, we just finished our proficiency and AI readiness survey. We do it every six months. We survey 5 ,000 knowledge workers, US, UK, and Canada. So we just did the March report and we're about to provide the readout to people. The proficiency levels have not improved in a year.
20:03Employee proficiency levels with AI have not improved in a year. I think that's bad. What's going on? It's poor training. It's expectations that are misaligned, meaning we are deploying this and calling it software. It is not software. Does it behave like software? No. Does this look like ERP or CRM or marketing automation or, you know, pick whatever SaaS platform people are using in their data. And then we give them AI and say, you know, Copilot Pros is another piece of enterprise software we're deploying. It's nothing like software. And then you tell the employee when you use it, it hallucinates and sort of, you know, performs unreliably.
20:43So good luck with that. Do you see any of the different levels of the organization understand or adapt it better? Like, is this entry levels understand it? Senior management does not. Middle manager doesn't want this to happen because they kind of like did all the hard work. And now, like, how do you see it plays out across the organizations? That's a great question. What the survey shows, and again, we'll release this soon, is that managers and above, more senior, are actually more proficient. my theory on that is they're actually getting better ai training and i hear this a lot and frankly our clients at section ask us for more in-person or live trainings for senior for the more senior people it's more expensive right they can afford it yeah more expensive they can afford it they want and they want those leaders to model the right behavior and they want them to be using ai at least to model the behavior and drive the change and then they do like asynchronous you know video training for everybody else at LinkedIn.
21:40Why doesn't, why doesn't our, um, defensive driving course for AI work so well and at scale? Right. So that's, that's part of the answer. Um, yeah, listen, here, here's the good news. If you're on the side of AI, consumers love AI. I mean, open AI will pass a billion users in the next few months. That is insane. Consumers and small business, solopreneurs, side hustlers. And this is a revolution and it's not happening in the enterprise. It's happening, you know, with consumers really. And I think that's actually such a different point because I think you read like about the Shopify CEO sending out their memos and you see all these different things.
22:24And a lot of people get like very excited about it. A lot of these, when I read them, I read them as kind of like letters of despair. Like I read them as kind of people saying, like founders and CEOs saying, I've been talking about this now for two years. Nobody's doing anything. Like, come on. Yeah, I totally agree. Is that what you have sufficient to? I think they're a combination of, they're two things. They're a cry of frustration. You know, like what? I'm using AI every day. I'm getting value from it. I can't believe, you know, you guys aren't using AI. Shopify is a good size organization, right?
22:588 ,000 employees. Dueling goes smaller, under 1 ,000. The latest one was Fiverr, you know, and what that CEO is saying. I think they're all expressing a degree of frustration and they're putting employees on notice. They're basically saying, I will, where I can, use my lever points to drive this adoption, you know, carrot and stick. So these memos kind of have typically both in them. So, hey, I want you to do this. I'm encouraging. It's going to make you more competitive. It's going to make the company more competitive. And by the way, it's going to be in your performance review. Right. So this whole conversation here is making me think of your phrase, the AI class, Greg.
23:37And I know last year or 18 months ago when we talked, you talked about one key metric an organization should be tracking is what percentage of our employees are in the AI class. Can you talk, and it sounds like there's maybe a divergence in terms of where the rank and file are versus where leaders are. Can you talk about other observations over the last 18 months of getting folks into the AI class and what it looks like? I still believe that in terms of that you are advantaged by being in the class and then the company is advantaged if more people are in the AI class. And unfortunately, it seems stuck, as we just talked about, at around maybe 10 % for most organizations.
24:14Hence, these CEOs are getting frustrated. By the way, I want to say one more thing about those CEO memos. There's something important that they're not saying. I mean, I'm going to go long on Shopify. I'm buying Shopify stock. Me too. I'm into Shopify. Yeah, the company is going to be smaller in two years. Not revenue, people. So what Toby didn't say, and again, it's a tough thing to say, is that I've got 8 ,000 employees now and about$8 billion in revenue. And I think I could have$10 billion in revenue in two years and 6 ,000 employees. That's what wasn't said. So I want everyone at Shopify and all of these companies to read between the lines.
24:52when you then read all these uh linkedins which you know is tough not to sympathize with you know some people going hey you know it's it's easy to dismiss right you know like hey you should hire humans instead you go yeah but i'm also trying to run a profitable business um is there more responsibility and we and we kind of like maybe go like all the way back and saying ceo has the responsibilities of what social media had we obviously nobody understood that when we took pictures of our food and put her on Instagram, that that would kind of destroy like a lot of mental health. Like people didn't think about it.
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25:24And then business models and structures and things like that kind of made it less advantage for people who like mental health. Like in the same way, when you have Toby's and people listening and myself and other like who kind of have a position where they can do those change, how much do you think they have a responsibility also to say, yes, I realize I'll be able to cut some headcounts, but I also kind of need to do this in a way that's kind of like, say, see, Maddie. I think they do, but I'm Canadian, which means in America, I'm accused of being a socialist. I'm from Denmark, so I hear you. Listen, there is going to be some very hard downstream impacts of all of this.
26:08Job loss is already coming. The data we're now seeing, this is what's different than from when we talked 18 months ago. We are now seeing some real job data, right? The Washington Post report about programmers, those who are not software engineers, right? The level below programmers in the United States,$97 ,000 a year average income. That class of technical worker has seen a significant contraction in open positions in the last two years. So we know what's going on there. Derek Thompson, The Atlantic reported this past week around the recent college grad sort of hiring disparity, I guess, or slowdown when compared to other ages in the knowledge workforce.
26:52Implication being entry-level jobs for college grads being impacted by AI. I think that's more of an assumption versus we actually have the data that proves it, but it seems to be indicating that. So listen, this is coming. And every time I suggest that companies have some obligation, because they're going to become more profitable, do they have some obligation to the employees that are impacted? You know, here in the U.S., I get blank stares. I get it. That's not the purpose of capitalism. It's not the purpose of enterprise. You know, purpose is to profit maximize, as you said. Purpose is to deliver shareholder returns that are outsized.
27:33And so reserving money or training programs or whatever it might be to support those or impact, it's not going to be in most companies' plans. And frankly, therefore, who else? The government. I just don't think we have currently governments that want to deal with this because they've got their own challenges in terms of budgets. And we want to pass tax cuts. So you want to pass tax cuts. You want to shrink government. How do you want to handle what's about to happen? The AI industry doesn't get it. We know that. So in terms of who's creating this technology and deploying it and pushing it, the AI industry, they're not going to sign up to handle any of the implications of this.
28:16They're signing up to make a shit ton of money and become the most powerful and influential companies in the world. That's all they care about. Sam Altman's not trying to cure cancer, right? And he certainly doesn't care about the workers that get laid off. So I'm not sure what the answer is. Obviously, you can tell. I'm worried about the implications. And as a minimum, I think our responsibility as CEOs is at least get everybody into the AI class, at least get them ready for what's about to happen. And then if they do leave your organization, either by choice or not by choice, they're at least capable to work in the age of AI.
28:51I want to say one more thing, Jeremy. I think I was wrong about the AI class, meaning I thought it would be, so those would be in it and those would be out of it and those in it had an advantage. We're all going to be in the AI class faster than I thought. So this idea, this meme, right, that went around for the last two years, you won't lose your job to AI, you lose your job to someone who uses AI. That was bullshit. We're losing our jobs to AI. Being in an AI class will not be enough. Being able to work with AI is going to be a mandatory requirement, I think, for all knowledge workers, but it won't distinguish or differentiate you or save you in any way.
29:32In terms of companies are going to deploy these technologies as fast as they can to expand operating margins and create business advantage. And frankly, the recession that we're in or about to be in, depending on what data you look at, caused by the current economic uncertainty, will be the best thing for the AI industry. Not so good for workers, but it will accelerate the deployment of AI. Every CFO I talked to, I spent last week in New York, as a minimum, backfilling has stopped in terms of hiring. New hires are on hold. You know, we're at the beginning of what is going to accelerate, which is the recession will induce CEOs to double down on AI, try to push through all these deployment challenges and drive operating efficiency.
30:21Do you see any kind of industries that goes through your classes more than others? Is there like any pattern in kind of who is grabbing on this? You say service industries, of course, have a lot to gain and to lose. Is that the people coming through or is it just whoever CEO kind of like newness? It's everybody. I would say that we are our client basis of a mix of small, those more ambitious, more aggressive organizations, less concerned about risk, less concerned around data leakage and those kinds of concerns or issues. And then big, kind of a barbell. We have very large organizations that are just very committed.
31:01And frankly, many have failed in phase one or their first deployment basically landed with a thud. They deployed this like software, CTO or the VP of IT, it was a technology initiative. They bought it. They paid for the licenses. They deployed it. And there was no training. There was no change management. There was no AI champion program. They weren't like Moderna and these other organizations. And obviously, you know, Bryce, they didn't have those kinds of people really driving adoption. And it's kind of failed. And so we often get called at that moment, which is we're looking at our dashboard and 5 % of employees are using this thing, but it's costing us$3 million a year.
31:42What do we do now? And you basically have to restart and do the hard work. It's not rocket science. The good news, if you're the leader, this is not rocket science. Making the AI is the rocket science part. We're not making the AI. This is change management. This is, you know, a lot of this we know how to do. It's just hard. What do you do there? Say you're the CEO. Say you've got a failed first deployment. You treated it like a tech initiative. There's no change management, no training, as you said. And you're at this pivotal moment. What's the playbook for the first three or four actions to restart on solid ground?
32:19Well, you need some goals. So just reset. First of all, reset, reset the plan. What level of adoption and weekly or daily active usage are you targeting in what period of time? So take a 12 and 24 month time horizon. If your organization is larger, over a thousand employees, if you're under a thousand employees, you should do all this in a year and you have no excuses. And you'll be held responsible if you don't do it this quickly. Because your organization will suffer either from a, from an operating margin perspective or from a competitive perspective. Over a thousand employees takes a little bit longer, but not, but not that long.
32:51That's the first thing. Second thing is, and you guys, you guys talk a lot about this. You need to have a point of view about AI. You need to have a manifesto, not rules. You know, AI governance, AI policies depress usage. We know that. Now that was the point of them. You know, if you, your general counsel and your AI, you know, technologists come up with the rules, you know, that, that was stupid because they came up with a bunch of rules that just scared people from using AI and they couldn't put data into the AI and like, you know, okay, so you got to reset that. Can we double click on resetting that?
33:26I mean, I realized just to, just to put a bookmark, we're in number two and there's more I know, but say more about that because I see so many organizations say we can't do anything until we have our policy in place. And so I just, I want you to double click on that point. Well, I'd say the first thing you need to know, or we all need to know, is there is very little risk if you're using enterprise AI. So if you are, or even the Teams-based AI, meaning ChatGPT for Teams or Cloud for Teams, those products in the last couple of years have been built to be enterprise or company safe. and certainly the enterprise versions that if you're buying that from open AI or Microsoft, you know, a lot of the concerns around data have been dealt with in the technology.
34:12Now, you might not trust big tech or, you know, you might not trust that they're not going to change your business models later and use your data in a way, you know, that you didn't necessarily think they would today. That's fine. That's a different issue. But this idea of your data is going to be leaked into the model or, you know, and I hear that still excuses. I think they're just excuses. All the time. All the time. I'm executive saying, oh, I'm not sure it's safe. And no, no, that's just bullshit. But so you've got a policy or the legal team has written something up, right? How do you shift from policy to manifesto as a leader?
34:43You have to say to your team, this is not cheating. You have to say that working with AI is working smarter. You have to say that we want you doing this. We have all these deeply held cultural beliefs about work. Don't cut corners. Hard work is a virtue, right? Don't cheat. And we've got to shift all that. Because right now, for a lot of people, it sounds like it's cheating using AI. It sounds like you are getting an unfair advantage. It sounds like it's not my work. And I need to be credited for my work because that's how I get promoted. And so on, right? So you just need as a leader to be really clear around you want people to be using AI.
35:26It will have some downstream impacts, which will include people's jobs will change. We're going to create some new jobs for sure. I'm not worried about that over time. There's all kinds of jobs that we don't do today that we're going to create and do with AI in the future. So there's going to be all kinds of new jobs created, but there's going to be some stuff in the transition that's a little more painful. So we just need to model that behavior and talk about it in terms of let's use AI, make the organization more efficient. Let's create some new products. Let's have fun with it. let's outsource the drudge work.
35:58It's kind of a cliche, but it's true. Like I can't tell you how many little use cases for AI that we see at my companies where, yeah, you're not going to do a press release about it, but the team or the individual that's figured that workflow out and has outsourced that eight hours of drudge work. Hero. Hero. And they're happy. And how much of the, well, you mentioned how many people using AI in an organization. I think for many companies increasingly that's kind of like not a solved problem but like there's something that is the next level then how many agents you have deployed or like how do you see if like the next level of goal setting yeah i'm smiling about agents because uh you know don't get me started um oh please by all means start by all means i there's a step in between i want to talk about a step in between then we'll talk about agents step three then yeah so the step in between is what we call workflow redesign.
36:54So I do think that there are two ways to deploy AI successfully in organizations of any size. And I would suggest everyone should do both, either at the same time or one after the other. The first is give everybody a full-featured, good AI. So not some crippled old model, but give them, you know, Gemini 2.5 Pro. Give them Copilot Pro, right? the upgraded paid version. Don't give them bad AI, give them good AI. That's the first thing. And train them, support them with change management, with an AI manifesto that says you encourage and reward and value people who use AI. I call that, so the bottoms up, more organic use of AI.
37:39And then aim for 50 % plus adoption levels within 12 months, at least 50 in an organization under a thousand employees. Adoption defined initially as weekly active usage and then daily active usage. That's part A or that's the first, you know. The second is workflow redesigns. Take a team of people, one or two in a small org, maybe more in a larger org, and go into teams, interview people, and decompose their workflows. Write them out. Like literally describe these workflows on paper, the inputs, the outputs, the dependencies, and the data required to make the workflow, to create the outcome or output, whatever it is, human only.
38:28Describe it, then redesign it. See which ones AI can help with. Prioritize that list. You'll have a hundred or hundreds of potential workflows that can be redesigned with AI. That's the good news. Hundreds of potential use cases. Overwhelming. That's another reason why employees struggle with AI. Back to your question, Jeremy, at the outset. They struggle in part because the software, because it's not software, is so performant. It does so many things, but nothing really perfectly. Again, it's not like software, but it does so much that people get confused. Well, where do I use it? Same thing with use cases.
39:07When you kind of look at your human workflows or human use cases, you'll get hundreds in a typical knowledge workforce organization. Then prioritize five or 10 or 15, pick a number, prioritize them, redesign them with AI, codify that redesign. How do you codify it? Well, you build a prompt library, build a one hour seminar and show everybody how to use AI to do that workflow in the new way. Build a GPT or in Microsoft, that's called Microsoft Studio, you know, build an off the shelf bot or an agent. So, yeah, I think we are moving to agents. I think they're overhyped. This is what the AI industry always does.
39:47While their existing product doesn't work very well and it hallucinates like crazy, they're like, oh, don't worry, agents are coming. You know, they're always doing that. It's what playbook tech is always used. Yeah. It can't quote a document that you give it, but don't worry. It will outsource your thing. Yeah. Exactly. No, and agents are coming. We'll solve for all this. And by the way - Before agents though, before agents on, you know, codifying and redesigning workflows. When we last spoke, I think OpenAI just earlier in the week or the previous week had launched the GPT store, which say what you will about the store, forget that.
40:20But the capability to codify workflows, what impact have you seen of that ability on adoption? Because I'll just tell you my expectation. My expectation was it's going to transform adoption. I've been surprised that it hasn't. I share that sentiment. I think some organizations have been able to really leverage GPTs. We have at Section, and you and I both know about Moderna, and they talk about hundreds of GPTs deployed. I interviewed Michael Dominic from UserTesting recently, and he has a lot of GPTs deployed internally at UserTesting. So I think some organizations have figured out they are a great way to codify AI-assisted workflows.
41:03But it's been a struggle. It's been slower, I think, for people to realize their power and then to deploy them. They're also in some ways hard to deploy, like who builds them, who manages them. If you think about an organization, again, for an individual, for us, for solopreneurs and startups, they're easier to kind of build and deploy. And if they break, it's not a big deal. You go back and fix it. When you think about GPTs. Even how do you create authority in them, right? You know, like we have five brand bots internally. Yeah, exactly. Things like that. It's kind of the Wild West, right? So I could imagine a lot of heads of technology or IT are like, no, we don't want those things running around.
41:37They're like these little bots and yeah, there's different versions. And then the person who made it left the company and now there's bots. People are using it and who owns it? So I think it was, I love the idea. I was going to build a thousand GPTs and stick them in the GPT store and own that real estate. I bought that hook, line, and sinker. I love that idea. Hey, this is like the Apple Store 2.0 and they're early winter. store are going to win. So I was going to build a thousand GPTs overnight. And I said to one of our board members, I'm thinking about doing this. He's like, are you out of your mind?
42:10Like, this is like a concept, this idea of a GPT app store, like, dude, like slow down, like wait a bit, like, like figure out, is this really going to stick? And then when you get more signals, you might want to jump in and, you know, put a thousand GPTs in the app store and see if you can turn that into either lead generation or revenue stream. Anyway, we never did. Obviously, We didn't build one GPT or build a few and stuck them in the app store. The rest we use internally and we love them, you know? So listen, agents are coming. The big reason agents are coming is the AI industry, open AI in particular, but all of them have realized a couple of things.
42:47One is these applications really are what's driving the value. The models aren't driving the value, right? Then the models have all really been commoditized. So what's really different from 18 months ago is the frontier models have all converged, basically. with the same set of capabilities. So it is, in fact, the application layer where the money is going to get made and where adoption really happens and the business value is generated. And if you think about ChatGPT, what it is is the first AI application to get to a billion users. That's what ChatGPT will be. And that has really opened everyone's eyes to, no, the way we win is you build applications and you drive adoption of applications and applications essentially, to some extent, over time, take the human out of the loop.
43:31So agents are the next generation of AI applications. The AI industry wants them because humans are getting in the way of deployment. This might save us, ironically, right? Our challenges with adoption, our challenges with using AI. That's fascinating. Not actually be something that we need. It's slowing AI down inside of our companies. These pesky humans are keeping us from deploying AI. Right. They're getting in the way. So, and that's not good. You're open AI because you've raised so much capital. You're burning whatever it is a minute, you know, in terms of compute and energy. So agents are a way to take the humans out of the loop and our way to deliver to enterprise, larger enterprise where adoption is really stalled out in terms of chatbot adoption or LLM adoption.
44:19Let's bypass the humans, take them out of the loop, generate the business value, extract that business value. If you're open AI in whatever pricing model you can come up with, it sticks. And, you know, we're all going to be happy, at least the CEOs will and the builders and providers of the agents. Well, you actually, you kind of, I feel like you foreshadowed agents a little bit, even on our call 18 months ago. I don't know if you remember this, but you talked about at Section, you're an educational organization. but you, and we can have shared some cynicism about people's desire to learn, right?
44:50And specifically you mentioned somebody doesn't want to learn how to create a strategy. They want a strategy. Correct. And you talked about shifting from a class that teaches folks strategy to, I don't know what words you use, copilot, whatever that actually just delivers the strategy. Talk about how your offering has changed based on infusing AI, not as the subject matter, but as the, not the what, but the how? Yeah. That's changed in an important way because we've launched Prof. AI two weeks ago. So Prof. AI is an AI powered coach. And the only thing it's teaching and may ever only teach is AI.
45:28At this point, Prof. AI doesn't teach other things or coach other things. It's coaching AI. So Prof. AI is powered by currently the anthropic models. We built it initially on GPT, on the GPT APIs. Now we're using Anthropics models instead. We like the output better. And it teaches people how to get good at using AI. And talk about disrupting ourselves. There's lots to talk about with this. The first thing I want to talk about is it's an amazing learning experience. It is because it's personalized almost from the first moment. So when you play with an AI-powered learning experience or an AI-powered coach or an AI-powered tutor, I think the first time you do it, it is one of those magical sort of technology experiences, like playing with ChatGPT was, you know, two years ago when we all first started doing that.
46:18Because right away, the coach or the tutor knows who you are. So the exercises and content inside of the experience are immediately customized for you because you tell it where you work, what job you're in, what country you're in, what level you're in, you know, in the organization. and right away Prof. AI starts to work with you and coach you knowing who you are. It really is amazing. There'll be no value in video-based learning in a year or two. I mean, Chegg is dead, the rest are going down. You know, Udemy, Coursera, Skillshare, Skillsoft, you name them, anybody who's made a living producing video-based learning content and then asking people to watch it inside of learning management systems, all those companies, I mean, you know, there won't be around.
47:10These experiences are magical. The AI powered ones. The contents generate on the fly. The content is personalized. The content quality is high. And it's not just content. It's actually giving you exercises. It's producing. In our case, Prof. AI produces prompts with you, works with you to produce the prompt. So you get the output. You don't get the, you know, you get the learning, but you get the output. but you want to learn how to prompt and you actually want to cut and paste that prompt and stick it into the AI, right? Well, that's kind of what I was wrestling with even as you're talking, because as at least, and maybe this is feedback or whatever, but when you start talking about it, it's still a teaching tool.
47:45And maybe that's what, maybe there's this want versus need, right? I think people want to be a lifelong learner, but people don't need education. They need the output. So is the package teaching because that's what people think they want, but really the content, so to speak, or the sugar inside of the wrapper is actually the output because that's what people really need? I think it's both. I think people don't want really to learn, frankly. They don't. There's very few lifelong learners out there. No, it's a mix of this is what we could deliver today. And it's presented more as a coach, I'd say.
48:21It's sold to our enterprise customers as a learning experience because that's how enterprise buys upskilling. upskilling. They buy it as a learning experience primarily. But you're right. What people really want is get me faster to prompting and working with my AI to get good outcomes from my AI. So ultimately, Prof. AI or other learning experiences should be living inside of the AI, almost, if that makes sense, like living inside of the chatbot. We can't do that. Prof. AI is a, you know, it's a separate experience, but you can certainly save your prompts from Prof. AI. You can cut and paste them over to GPT or Cloud, whatever LLM you use.
49:00And eventually we'd like to make that integration as tight as possible so that, yeah, you're working and learning at the same time, essentially. At the last conversation, you also mentioned, the first that I heard talk about taking your board decks and then basically synthetic roleplay it out before you had board meeting. Still doing it. Learning something new. What's the latest board management trick? Yeah, we did it last week. I'd say this is what's new, this is what's different. from 18 months ago. So Claude used to be top of the leaderboard for the last 18 months. You've done it now, I guess six or seven board meetings.
49:32So GPT-04 jumped to the top of the leaderboard. Not 03, just 04. Yeah, for some reason. Yeah, we used, yeah, and maybe 03 could have as well. I don't know. We used 04 this month. And yeah, Claude was close behind. Yeah, we still do. It's great. And on the, on the, you think maybe that's a little bit of a jump, but you had like, you're a monitor with the three different kind of like foundational models. utago 304 what's your go-to kind of mental model for should i use deep seek uh deep think should i use research should i use ideation when do i go to grok you know what do i what do i image generate with mid-journey where do i how do you what's the go-to navigation structure i get confused like everybody else i mean i mean if you had to do a case study on the worst go-to-market at strategies in the history of technology, it would be the AI companies, right?
50:28OpenAI and Microsoft would both win the worst award. Well, Google's right there. Google's right there. I mean, it's terrible. Yeah. In terms of product marketing, in terms of naming, in terms of conventions and so on. Yeah. I get confused. You know, I, when I think about bigger projects, I think about deep research. When I think about everything else, I think about GPT or, or call them perplexity for research. But frankly, I'm, I'm confused. I'm very frustrated. Sometimes you don't even know, right? You're like, okay, remind me, is 03 better than 40? Is that? I mean, they know it. It's absurd.
50:59You know, Sam Alden's talked about it. They need to bring it all under one kind of product. But I want to go back to Prof. AI for a sec. I want to talk about business model disruption. Please. Yeah, no, I love it. Love it. Here's what's crazy about Prof. AI. It takes about an hour of conversations with Prof. AI to become very proficient in AI. Because we're measuring you, right? You're doing exercises. We're grading you, essentially. And so at the time you get completed, you're sort of certified as AI capable. And then we auto-release a LinkedIn badge if you want one to your LinkedIn profile. It takes about an hour.
51:35So those conversations, the tokens, the AI cost, the inference cost of that, for me, is a dollar. One dollar. That's crazy. So let's put that in context. We charge section$750 a year for unlimited access to the AI Academy, to consumers. And we absolutely discount that. So our probably net selling price over the course of a year is probably closer to$550, something like that, right? $750 is the list price for unlimited access to the AI Academy, which includes all live sessions and then anything that's recorded and some other benefits, right? We have a Slack channel and we have other community and benefits and assets.
52:19So it's not just the courses, but the core value proposition is the AI Academy, the courses. So$750, discounted to$500. Prof. AI can do most of that. Not all of it, not yet, but it can do most. It can't do the community, but it can certainly do the upskilling, the learning, the skill acquisition in hours or less for the average student. and it cost me a dollar. How do you price it right now? Oh, I don't price it. So it's a combination. I'm not sure what to do. And frankly, I want enterprise lead. So here's what I'm doing right now. It's going to be free to consumers. So our members who are paying hundreds of dollars a year will get Prof.
53:03AI, obviously included in their membership. And I'm betting what they're really paying for is access to the live events, the live lectures and workshops and so on. If they just want the upskilling, if they just want the skill acquisition, then Prof. AI is going to be free for everybody. All consumers are going to be able to use Prof. AI at no cost. That's my launch strategy I'm launching in a couple of weeks. I launched the enterprise version a couple of weeks ago. The consumer version is going to go out as a freemium version. So I'm doing that because I can bear for now the inference cost of a dollar.
53:40If we had millions of users, I'd be like, oh, shit, I need some capital. You know, I got to fund the inference cost. But for now, it feels like the smart thing for us to do in terms of getting it out there. Frankly, helping others get ready. It's a mission, that section. As you said, Jeremy, to bring a million people into the AI class. I don't think that'll be enough to kind of save you, so to speak, in terms of your job if your job changes. But you need to be in the AI class as fast as possible. So we want PropAI in as many people's hands as possible. It's going to help them, we hope, upskill themselves.
54:12But yeah, listen, if I was an AI native startup, I'm not, right? I'm an incumbent with an old, and I'm a digital incumbent now with an AI product that costs a dollar to deliver a tremendous amount of value to the student or to the employer that might be deploying Prof. AI. So this is my point around disruption from a business model perspective. These are going to be very significant business model disruptions. And so you got to do it to yourself or at least be ready when someone does it to you. Well, how did you decide? How did you how did you as the CEO of an incumbent digital player, how did you decide?
54:49Because what I'm hearing you say, just to read it back to you, is we decided to disrupt ourselves or we decided to at least get in the self disruption game. Walk us through your thought process. Yeah, I think it was, I don't know, three inputs probably. One is, what's our mission? Why are we even doing this? I don't need to be doing this for a living. This is hard. Running a startup that's got ambitions and not enough capital and investors that are expecting a high return and all that stuff. It's not exactly easy running a startup. So like, why are we doing this? I don't need to be doing this.
55:23I'm doing this because I want to help as many people as possible get into AI class. That's our mission. How do I get to a million people? How do I help two million people? It wasn't going to be through what we were doing. It wasn't scaling fast enough. We had to create something with much less friction, much more accessibility and very high value. And that's an AI learning experience. That's the first thing. Second thing is I could not look myself in the mirror in two years and say, someone did it to me. Like I had the insight. It wasn't like I was clueless. if I was, but genuinely if I was blindsided, if I hadn't seen the future, you know, if I was in my own tunnel or whatever, you know, and not seeing the future, then okay, I got blindsided, that's on me.
56:01But I had the insight, someone was going to do this. So I could not look myself, my investors and my employees in the eye, you know, in a couple of years or a year and say, listen, you know, we didn't act and someone else did it to us. If someone else had built Prof. AI and we didn't, I mean, to your point, we were early in AI training, like 18, now two years ago. So give up all that advantage and have some, you know, two dudes and a dog and an AI in the garage to beat us with their own AI, AI tutor. Man, I, I, shame on me. I got just, I, that wasn't going to happen. Third thing is I have an amazing board.
56:37I have amazing investors and we're aligned. We're aligned that this creates risk and significant opportunity. And so, you know, it makes a lot of sense. Let's do it. The question of testosterone for my brain. One thing that I'm particularly interested right now in Greg is the tendency of older folks. We actually talked with Evan Ratliff. He's a podcaster, amazing guy. He's got this great new podcast. And he referenced the fact that it's a consistent theme throughout the history of humanity and technological process to resist change. I think AI is particularly well-suited to experienced individuals because they have more context.
57:19It's like in an MBA class, right? The experienced person gets a lot more out of the class than the person straight out of undergrad, right? The same is true in collaboration with AI. More experienced individuals actually have far more context to glean better outputs from it. And yet the tendency is to opt out, check out, say, or resist, right? In your comments about AI being testosterone for your brain, specifically in regards to call it cognitive decline, that's been on my mind. Have you learned anything or seen or observed or felt differently about that as a kind of a concept or paradigm in the last 18 months?
57:52Here's where I've ended up on how we think about using AI. I think there'll be two types of AI users. This is what's of most concern to me right now, which is that we'll all be cognitively offloading because we always have. We've always looked for these edges. You know, we used to be able to recite the Bible or the Koran from memory. Humans used to be able to recite Homer's Iliad from memory, 15 ,000 lines of text from memory. And then books came along, and so we cognitively offloaded the books, right, and used that cognitive capability for something else. GPS is the obvious example today, right?
58:30We used to know how to navigate. That part of our brain has actually been atrophying kind of that spatial sort of mapping capability because we rely on GPS. We've cognitively offloaded that part of our brain to GPS on our smartphone. So this is the mother of all cognitive offloading tool. This is like, we've never had this before. So we are going to use it and we should. We should all cognitively offload as much as possible, borrow those 30 points of IQ at any age and hopefully get the gain. But I think what's going to happen is there'll be two types of people who cognitively offload, freeloaders and managers.
59:08And I think most of us, sadly, are going to be AI freeloaders. We are going to be lazy. We're going to cut and paste from AI. We're going to take AI's work and call it our own. We're not going to add what's unique and different and special about us and our experience and our judgment to the AI's work. We're just going to use it to cut the corner, get home, put the kids to bed, walk the dog and watch Netflix. So the poster won't be remember to use AI, it'll be remember to use your brain? Absolutely. I think we're going to have to develop new habits that turn off the AI or work with AI and then improve that work and acknowledge and show the difference to yourself and to your boss.
59:54I mean, I'm not sure how we're going to do this, but we are going to have to not lose our minds. I want to be really clear about this. Big tech wants us to lose our minds. They want us to be 100 % reliant on these technologies and stop thinking. It will make them the most influential and powerful and valuable companies and individuals in the world. So if you had one human skill that you think that we ought to train ourselves in, keep training, like we stopped having to run after animals in the forest. And so now we go to a gym. What's the kind of like the innate human skill outside, like the broad of thinking that you would go to the mental gym for?
1:00:45What's right or wrong? I'll take that. We must never lose that judgment. We must not offload that question, especially when the AIs are run by companies that don't care. And how do you think we, I don't know, but you run a company that teaches people. How do you go through the process of understanding how to codify your own right and wrongness so that you can train it? Like, how do you do that? You need to write it down. I think we need to begin to describe ourselves to ourselves better. We need to stop, reflect on ourselves. So when we drift, we know that we drifted. What are our values? What are our operating principles?
1:01:46How do we make decisions? Like codify those, meaning write them down. understand them. Make sure you align your AI to those. This idea that 200 million young men are going to be using XAI, that's not comforting to me because XAI's positioning in the market is it's got no guardrails. Yeah. Right? I mean, they turned it off, but they used to have a feature called unhinged. Like this idea that, you know, that someone thinks it's a good idea to release an AI with a feature called unhinged. I like that as a, I like that as a frame is don't be unhinged. It's our, don't lose your mind. I mean, there's something there that's actually really, really profound.
1:02:32Yeah. We cannot lose our mind. And it requires that we actually connect to our own humanity as a protection against our, our worst impulses. Absolutely. Yeah. This is awesome. Greg, you're awesome. Thank you so much for coming back on. I hope we can invite you back on maybe before 18 months so that we can hear what's going on. We got to hear a post-mortem on the Prof. AI launch and hear how it went. Absolutely. I know. We are looking at the data as we speak. It's fascinating. So, Jeremy, it's so good to have him back on, huh? I mean, so much has changed, and yet so much remains the same. I thought that was a really, really fascinating insight.
1:03:14Do you want to go first? Kind of what we took away from this conversation? I mean, I always challenge myself to take notes. Sometimes folks, just so you know, Henrik tells me, I can hear your pen in the background. But it's because I know that this like passive vessel can only hold so much and I'm trying to capture it. It's the sound of wisdom. It's the sound of wisdom being transcribed into stone tablets. Anyway, I took a ton of notes. there's almost so much my thing that stood out to me. There's so many times that I always know if it's a good interview because I pull out the highlight function, not just the pen function on my remarkable tablet.
1:03:50And I'm highlighting a ton of stuff here. I mean, it's so much that it's pages and pages. That's actually one piece of feedback I would have to remarkable. It's really hard to scroll through your notes. But I think one thing I would say, if I had to highlight one thing as I'm scrolling frantically in the interest of time, the encouragement to leaders to shift from policy to manifesto. And what he said, three things specifically, it's not cheating. It's working smarter. We want you to do it. I think that is a message that is so sorely lacking. There's always a but, but be safe, but don't. And it's the but that is biting people's Achilles heel and keeping them from exploring and using.
1:04:36And I know a lot of leaders who say, yeah, we tell people to use it. Just do it in a safe way. And it's the ambiguous fear of an amorphous risk that's actually holding people back. So that's probably the biggest thing that resonated with you. What about you? You know what? I have thought a lot about a thing that he obviously framed much better. And so he put a kind of very distinct kind of like word on it, which is output outcome pricing. um what is it that you're gonna as an entrepreneur be making in the future and i don't think that you can kind of like deliver content you can't just deliver text and you can't just deliver hours you have to deliver here's this thing you ask for the strategy or here's this outcome you ask for 20 better conversion on your funnel whatever and so thinking in that way from day one also even as a human what is my output and how do i become better of doing that's interesting and that kind of goes to the second one which is you know what i've meet a lot of people and you show them replet or lovable and you show them what agents can do and stuff like that and they have a very difficult time kind of converting the awareness that those things are there to something that they can then change in their work life and so i've kind of always put it into people are just not used to thinking products you know people are used to thinking managing their bars or you know projects but not products yeah and so i think what he was talking about was really how you learn how to think of use cases how you really just take the time to write down your workflow and then you atomize them and then you figure out should these be redesigned or any of these components are they able to be be done with ai i thought was an interesting way of doing but the whole thing about like how do we become better of of productizing instead of solving problems uh i thought was fascinating um i do think this kind of he's so straightforward and honest right you know and i think this idea that you won't get out competed by somebody you know a person with ai we will all have to learn ai and there will be people who lose their job and they might find a new job but like There is just, I don't think there's really any excuse anymore in most industry to not learn it if you want to have a career in the long term.
1:07:05And so I think he talked - Not even an edge, you're saying. Not even an edge, just a career. I just, that's what I think he was pointing out. And, you know, in many ways, I hope he's wrong, but I think he's probably right. That wild stat of the day, they just surveyed 5 ,000 knowledge workers. Employee proficiency has not improved in the last one year. That's staggering, given that I would say the last year has seen the most attention towards proficiency of human history. But it also sounds like it might be the good news for everyone, because that's the thing that's going to slow everything down.
1:07:42That and what Mark Zuckerberg said in that YouTube video you sent me, which basically that it also just take a long time to build hardware, like to build like data centers. And so the two things I was slowing everything down is not the models. It's basically humans ability to change and then actually building stuff in physical space. Yeah, that's great. All right, folks, if you enjoyed this episode, if you enjoyed this conversation, please use the safe word. The safe word is right or wrong. Right or wrong. Right or wrong? Question mark or no question mark? No question mark. Ah, I see what you did there.
1:08:24Until next time, thanks for listening.
From the publisher
In this episode, Greg Shove, CEO of Section and founder of Machine and Partners, joins us for a "where are they now" follow-up—and doesn’t hold back. Greg walks through the rise of Pro AI, his new AI-powered coach, and why traditional upskilling is already obsolete.
We explore the overlooked friction points in AI adoption, from cultural taboos (“it feels like cheating”) to failed enterprise rollouts. Greg challenges the prevailing mental models and warns that the real upheaval is still ahead: business model disruption, not product disruption.
From royalty-based agents to outcome-based pricing, Greg lays out why service-heavy industries—from law firms to SaaS—are heading for a margin-crushing future. Plus: the moral responsibility of CEOs, the fallacy of lifelong learners, and why working with AI means holding onto your own judgment.
A sharp, honest look at what it really means to work smarter—not just faster—in the age of AI.
Key takeaways:
- AI use is no longer optional—it's the new baseline.
Proficiency with AI tools isn’t a competitive edge anymore—it’s a basic requirement. Greg argues that “being in the AI class” is now table stakes, and organizations must rapidly close the gap between aspiration and actual adoption. - Business model disruption will hit harder than tech disruption.
Greg makes a compelling case that AI’s biggest impact won’t come from the tools themselves, but from entirely new ways of charging for value—like outcome-based pricing and AI-native service models that undercut human capital costs. - Leaders must shift from AI policies to AI manifestos.
Adoption is stalling because organizations lead with fear. Instead, Greg urges leaders to clearly message that using AI is smart, encouraged, and expected—and to model that behavior themselves. - Most people won't be lifelong learners—so give them outputs, not courses.
With Pro AI, Greg confronts a hard truth: most users don’t want to learn; they want results. AI-powered coaching that delivers outcomes—not just education—is the future of upskilling.
Linkedin: Greg Shove | LinkedIn
Website: Greg Shove | AI Strategist & Keynote Speaker for Enterprise Leaders
Section: Section | AI workforce transformation for real ROI
Machine & Partners: AI Consulting Services | Machine and Partners
00:00 Embracing AI: Changing Work Culture
00:29 Introduction: Meet Greg Shove
01:10 AI in Daily Work: Tools and Changes
03:59 Business Model Disruption: The Next Big Shift
12:45 Training and Adoption Challenges
19:14 The Future of Work: AI's Impact on Jobs
32:02 Leadership and AI: Strategies for Success
35:20 Embracing AI in the Workplace
36:51 Workflow Redesign with AI
39:39 The Role of AI Agents
40:12 Challenges in AI Adoption
45:14 Pro AI: The AI-Powered Coach
51:03 Disrupting Business Models with AI
57:52 Cognitive Offloading and AI
01:03:02 Final Thoughts and Reflections
📜 Read the transcript for this episode: Transcript of The AI Implementation Audit: What Section’s CEO Learned in 18 Months
For more prompts, tips, and AI tools. Check out our website: https://www.beyondtheprompt.ai/ or follow Jeremy or Henrik on Linkedin:
Henrik: https://www.linkedin.com/in/werdelin
Jeremy: https://www.linkedin.com/in/jeremyutley
Show edited by Emma Cecilie Jensen.



