AI vs Internet Transformation

0:00Did you know that most businesses only use 20 % of their data? That's like reading a book with most of the pages torn out or paying for coffee that's one fifth full. Point is, you miss a lot unless you use HubSpot. Their customer platform gives you access to the data you need to grow your business. The insights trapped in emails, call logs, and transcripts. All that unstructured data that makes all the difference because when you know more, you grow more. And when you get a full cup of coffee, you can do more too, but I digress. Visit HubSpot.com today.

0:35using only 20 % of your business data is like dating someone who only texts emojis. First of all, that's annoying. And second, you're missing a lot of context. But that's how most businesses operate today, using only 20 % of their data. Unless you have HubSpot, where all the emails, call logs, and chat messages turn into insights to grow your business. Because all that data makes all the difference. I would know because I use HubSpot at my company. Learn more at HubSpot.com.

1:07Being a know-it-all used to be considered a bad thing, but in business, it's everything. Because right now, most businesses only use 20 % of their data unless you have HubSpot, where data that's buried in emails, call logs, and meeting notes become insights that help you grow your business. Because when you know more, you grow more. See, being a know-it-all isn't so bad. Visit HubSpot.com today to learn more.

1:34Nobody likes a spoiler, unless it's your customers telling you exactly what they need. But too bad most businesses miss out on these signals. The hits dropped in emails, the messages hidden in call logs and chats, all of it trapped in the digital ether. But with HubSpot, you get all this data in one place. Their customer platform brings together the insights you need to grow your business. And spoiler alert, the more you know, the more you grow. Visit hubspot.com to find out how today.

2:07Cutting your sales cycle in half sounds pretty impossible, but that's exactly what Sandler Training did with HubSpot. They used Breeze, HubSpot's AI tools, to tailor every customer interaction without losing their personal touch. And the results were pretty incredible. Click-through rates jumped 25%, qualified leads quadrupled, and people spent three times longer on their landing pages. Go to HubSpot.com to see how Breeze can help your business grow. Neil, when the internet first came out, okay, do you remember how long it took for corporations to adopt the internet, like to get an email address and learn how to use the web?

2:44Yeah, it was a long time. It took many, many, many years. How many years? Just guess. Five plus years. No, maybe 10 plus years. Exactly. Five to 10 years. Five to 10 years. So perplexity said this, right? So I had to do a deep research. and I was like okay well well if that's the case like isn't that probably going to be the case for AI and it was like yeah and I'm like but hypothetically there's no time for people to adopt this time right because it's it's the things are changing so quickly this time you don't have like a five to ten year window that's like this time you can actually you know we're talking about job loss and things like that so I I ran that idea by perplexity I was like is that true or false and it's like this is largely true because you know the the the world's changing so quickly you You see layoffs, 17-year record, right?

3:26You see tech companies aren't hiring that much anymore. You see, like, it's not the same world that we're used to two, three years ago. That's the point I'm trying to get at. And I saw a post earlier. I don't know if I shared this with you, but Yaniv shared this with me, actually. How, like, people think they can still work like the COVID years, like three, five years. They think they could just coast. But the reality is it just isn't that anymore. And I'd rather kind of strike some motivation into people because this is not internet transformation where you're okay after. I think this is a situation where it's like, no, no, no, no, no, no.

4:01Not knowing how to use this is akin to not knowing how to use the internet, but you don't get the time buffer that you got before. So I want everyone to think about it from a little bit of a different perspective. And you can take Eric's perspective or my perspective. I'm not saying I'm right or anything like that. The reason the internet took a long time to adapt, technology wasn't in our fingertips. It wasn't in our hand. Back then, a lot of organizations Not just shitty connections. People were dialing up. Like Eric and I, our first internet connection was you plug it into a phone line. And if someone called, it disconnected your internet.

4:34Like, stop using the phone, right? And it was really slow. On top of that, not everyone had computers. There weren't these cell phone devices like you see right now. There weren't even really cell phones back then. Now we're in a place where people already have the technology. And AI, or let me rephrase, not the technology. People already have the hardware. AI, the software layer, is plugging into the hardware that you're already using on a daily basis and you don't need new hardware. So you're seeing adoption much quicker. Just like when Facebook first came out, it took them a long time to get to a billion users.

5:08When threads came out, they were able to get to users much faster, same with chat, GPT, or same with Slack, because people already have the hardware in their hands and they can adapt this technology much faster. So it's just like if you look back in the day from all the technology changes and the eras, I don't know who broke this down, but it was some billionaire from the printing press to the manufacturing space and agriculture. They're breaking down all the major changes in life. Those windows were very long. And if you look at the internet and what happened, it wasn't as long. And if you look at what AI is doing, it's going to make it even shorter.

5:45It's because we already have a lot of the foundation, so it makes it easier and quicker for people to adapt. So if you think you have a long time to adapt, which is what Eric's getting at, you're very wrong. And the reason being is people are already adapting because it's not hard for them to. Dude, I just ran this through perplexity again on top of the chart. And so here's what it says. Guys, by the way, when we say this, guys, we're not trying to be doomers. In fact, this podcast is meant to be inspirational. But sometimes when you try to inspire and it just doesn't work, sometimes a nice beatdown works too.

6:13So that's where I'm coming from, at least. Neil's not really giving a beatdown. No, I think that's more Eric than me. I'm more positive. Definitely coming more from my side. So where parabolic loss is most likely. So job loss can still look parabolic, highly automatable, routine, cognitive work, AI first companies. And so at the edge of your org chart, some roles can go from safe to mostly automated over 12 to 14 months, which feels parabolic if you're in that band, even if macro employment is high. So I do agree. Like I do think there's going to be net new jobs. I think everyone's going to be okay, But I think there's going to be a period of time for a couple of years where there's going to be job displacement.

6:51And that's where, you know, people are going to be might like, you know, rise up and be unhappy or whatever. Please don't do that. And then the other piece it says here, why there is some time to adapt. OK, three structural frictions show slow a true systemic cliff. Enterprise inertia and integration costs. So this is actually saying that you have time to adapt. Right. So enterprises, Neil refers to enterprises quite a bit. even if 78 % of organizations use AI somewhere, most are still in pilots and pockets. And Niels has talked about that quite a bit. Not full stack, redesign, process change, compliance, and systems.

7:25All this stuff, system integration takes years. I agree with that. Second piece is skill and change management gaps. Especially when it's an enterprise, that stuff is really slow. We're talking large ship slow, okay? Most employees report only modern AI support and capability building, right? And then, yeah, I think those are the two main things. So food for thought, you guys take it for what it is. And to give you guys perspective, if I had to put Eric and I, you know, and talk about our differences so you guys can get an understanding of our viewpoints and how we think about things, I would say Eric is a very, very early adopter.

8:00If something comes out that day, he's probably going to test it that day or the next day or close enough within the week. Would you agree, Eric, you tend to adapt really early? Yeah. So we gave an analogy for this. Remember, Neil, the D-Day analogy where I'm probably not on the first boat, but I'm probably like the third boat, whereas you're coming in on like a plane and parachuting it. Like once the invasion's done. Yeah. And I wouldn't say Eric's on a third boat. I think he's close to the second boat, maybe at the back of the first boat, right? I don't want to die, man. Don't put me on the first boat.

8:30I'm not saying you want to die, but there is no death in this, right? There is early adopters. And I would probably say you're most likely on the first boat. You're just not the first person off the vote. You're probably waiting for everyone to get shot first and run through the mines. And then you'll go through after all the mines have been already run over. Right? But I would say Eric's pretty much on the first vote. Eric's spot on. I'm big on technology, but the way my brain works is I'm very numbers oriented. and unless someone can show me ROI, revenue, profitability, or a path there, it's a harder time for me to be an early adopter.

9:11Because I believe, and I can be wrong on this, I believe I can buy my way in even if I'm flying in off of a plane and parachuting down. And I think money solves a lot of problems. I know that's a bad way to think, but I just believe that, hey, I don't have to be the first. I can hire some of the people who are going to be the first. and once I know something's going to work, I'll parachute down and I'll just pour a shitload of money at it and I won't care about my return in the short run. Yeah. So what I'll say that's good about Neil since I've known him for, I guess, close to 15, 16 years now.

9:43Oh my God, we're coming on 16 years. So I've known him for 16 years. It feels like just yesterday that we met. But so Neil is, he'll wait and wait and wait and wait. And once he sees it, he will press and not only press, he'll press hard. Now he won't go to the blackjack table and press. But once he sees a bet that's worth making, it's all in. It's like all the chips and no need to get a return immediately. He's always been like that, right? So the reason I'm calling this out and Neil kind of brought this up is you have to understand yourself. You have to understand your demeanor. You have to understand your own risk tolerance.

10:15And anything Neil says or I say, it's not exactly gospel. It's just what we think based on our life experiences. So you take it for what it's will and then you do your own research because none of this is financial advice. No, and you also have to keep in mind, we're also different places in our career. It doesn't mean I'm doing better than Eric or worse than Eric. I've been an entrepreneur longer than he has, right? It's just fact. 24 years. Yeah, 24 years. So, and I think you're on what, 10, 11, 12? I think all I know is your gap. You've had 14 years in business longer than I have. That's what I know.

10:48Got it. So if I'm at 24, he's at 10. Yeah. When I was starting out as an entrepreneur, I would be very early on, kind of like that first boat analogy that we're talking about. And I got shot a few times, not really shot, but I went through some landmines. I shot a business. Yes, I got shot a business version of it. And when you're in a startup mode and grinding it out, and I wouldn't say Eric is fully in startup mode, but you have to do that and you have to be scrappy. And when you have a more established company, it doesn't mean mine's bigger or smaller than him. I'm just giving context. If you have a more established company and you have a lot of people and revenue, and Eric does have revenue as well, but you also have to think about wealth preservation at the same time.

11:36And when you have a bigger organization, at least in headcount, you know no matter what size you are, there's political bullcrap that you have to deal with and people deal with in your organization, no matter who it is. I don't care if you're a founder or not, just like the Sergey Brin example, where he told Sundar when he was working on Gemini, he's like, you deal with these people. They're getting in my way. And he's at a much bigger scale, but it just goes to show no matter who you are, what size company, especially at the larger scale, there are politics to deal with. And sometimes a shortcut at larger scale is you just go and spend the money.

12:13And your cost of business to get the result is you have to pay more to get the end result versus error can be scrappier and get the results without having to spend the capital. All right, so moving on, I wanna show you something going back to OpenClaw. So did you see the Vibe Coded Epstein Files podcast? So we wanna talk about distribution with OpenClaw, okay? So going back to the topic of this one. So let me show this to you, Neil. So check this out. So when you look at, can you see this? Yeah. So, okay, levy.eth texted this or tweeted this. So Vibe Coded, the Epstein Files podcast was clawed in a weekend and just crossed 100 ,000 downloads in the first week.

12:52To put that in perspective, the top 1 % of all podcasts globally get around 5 ,000 downloads in their first seven days. This did 100K, that's 20 times the top 1 % threshold. The average podcast gets 141 downloads in the first 30 days. Most spend 18 months trying to crack 1 ,000 per episode. A lot never get there and there are 4.5 million podcasts out there now. No fancy studio, no production team, just clawed a Mac mini. This is open claw basically. and a weekend of focused work curating the right approach to this series. Still processing this one, honestly. That's kind of crazy to me because you can find any trending topic and this thing can just crank out a new podcast whenever it wants and it can rip, right?

13:28It's kind of similar to the GitHub repo of this guy, Corey Haynes, who I talked about in one of my videos. He's got this GitHub repo with 7 ,500 stars on it. And I just think there's going to be new ways of marketing that are coming out because when you have an open claw, it's able to do these things you know on its whim look i know some people think this is cool i look at this as whatever it's a trending topic epstein that everyone's talking about i personally feel bad for a lot of the people or what happened to a lot of the girls and stuff like that and i don't care to read just me personally about these dudes who went to the island and did inappropriate stuff or listen to it because it's just like it's just sad to hear what happened and or imagine what's happening.

14:14And I look at using technology for things like this to go off of trending topics. Eric's seen this playbook before. Remember all those sites like the BuzzFeeds of the world that were just hijacking Google Trends and getting tons of traffic? My big thing on this, I've seen this playbook before. It's really hard to monetize. Yeah, people can say this is really cool, but it's going to be really hard to make money from it. Yeah, so the way I see this, I think it just depends on the business model that you have. If it's a media business model, then by all means you go for it. So I don't think this really applies to Neil's business or my business necessarily.

14:47Or the majority of businesses. Well, it depends on your business, right? I think if you're, again, if you're like, if you are a media company, this applies to you. I think, I do think, like for example, my open claw, I have a bot that's called Flash that will tell me trending topics and then it tries to tie it in with whatever I'm talking about. It's nice, but I don't try to newsjack that much because to Neil's point, newsjacking has never, you might get the views, but you don't necessarily get the conversions from it. But I will say that the trend that I'm really surfing right now is open claw and clawed code.

15:19But I tied in with marketing and business. That actually, if you find the intersection, it might work for you, but you're not always going to have that with trending topics. Yeah. Yeah. So we still got 10 minutes left. All right. Do you see this? Do you have it open? I have it open now.

15:42let's see you have something here that humans are no longer the moat and we talked about this uh i want to talk about how brands it's not really in here but i still really do believe brands are the moat and uh i was using this example earlier today so someone asked me you know like hey in latin america you know what's the example of a retail company um that is using ai and how are they not worried about like some new brand just knocking them off and crushing it and before i went into that i i asked the person a question because they had a louis vuitton purse all right so they're holding up the handbag and i don't know how old louis vuitton is but i'm pretty sure it's 100 plus years old i could be wrong but i think it's 100 years old do you know Eric?

16:29I'm looking it up right now. 172 years. Yeah. So it's an amazing brand. They have a really strong brand loyalty. If you go to China where they sell a lot of knockoffs, and I don't mean this in a bad way, it's just reality. I'm not saying Chinese people are the only ones knocking off. There's people in India and I'm Indian that knock other off products and there's people all over the world that knock them off in the US, et cetera. But majority of the people don't want to knock off. They actually want the real thing. Why? Because they love the brand so much and it's a goal and it's prestigious and they really want it.

17:05And I think one thing that's hard to replace in today's world is emote. Eric hasn't adapted yet. One day he will once I figure out his shoe size in this brand. You know, like a lot of business people all around the world now, I always see them wearing Xenia second skin shoes. I have four of them. You've been doing that. I've been doing it for two years now. Yeah. I have four pairs of the same exact color. But you usually wear the common projects. No, I don't wear common projects as often. I wear common projects maybe a tenth of the time. Yeah. Anyway, continue. Go ahead. But they're one of the most comfortable business dress, sneakers, or whatever you want to end up calling them, ever made.

17:49They're more comfortable than Nikes. For almost anyone who asks, because most guys have Nikes in them, When I go to Miami next week, I'll buy a pair. All right. But it has to be second skin. If it's not second skin, it's not the same thing. Like the comfort's not the same because Xenia has different kinds of sneakers. But the point I'm getting at is like, it's that brand, it's that cachet. When you look at Michael Jordan shoes, if Eric and I spent all our money, I'm pretty sure we can build a shoe that's just as comfortable as a Michael Jordan shoe. And we can copy the design and it can look identical, but people won't buy it because ours won't have that Jumpman logo.

18:22and that Jumpman logo goes a long way. And I know this because before COVID, I used to go to the Michael Jordan Golf Tournament and I met Jordan and a lot of his team and business managers in Jordan School, but it was really fun to talk to his business team. And he actually has a small team that communicates to Nike on his behalf. And they were telling me about their Derek Jeter deal. Derek Jeter, for anyone who doesn't know, is an old baseball player, really good at baseball. And there's - It's not even that old. he's not that old, but he's retired. That's probably a better way to put it. Like, he's no longer a place.

18:59But did you know they sold more Derek Jeter shoes when they started doing things like with a lot of their brand endorsement deals because they would go under Jordan. When they started removing the name and just having the Jumpman logo, the Jumpman logo helped produce more sales if they removed the other stuff from the same design shoe. And the point I'm getting at, what they were explaining to me is, That brand affinity is so strong and people want it clean and just that, not other names with it. It could be Steph Curry rocking his version of Jordan shoes and people love that as well. But they don't want the name Steph Curry.

19:34They just wanted the Jordan logo. That sells a ton of shoes. And that's the power of brand. And I think that is really hard to replace. But at the same time, I think that's really hard to create as well. Yeah. I really think there's two modes, right? So a brand tells a story at the end of the day. I forgot who I heard that from. But when you think about the Jumpman, it is when you watch Jordan, for example, and how he made you feel, right? Or when you think about Coca-Cola, you don't think about Coca-Cola. You think about the time you enjoyed that Coke, maybe with your mom when you're a kid or something like that, or maybe when you're at McDonald's, right?

20:06When you're a kid. And so I think one, talent is emote. And still, yes, even with AI. And the second thing is brand is emote. And this actually carries over into this tweet I'm looking at here. Sandra Jacek tweeted this. So the highest paying job in tech will soon be marketing. What do you think about that? Because this one got 1.7 million views on it, 8 ,500 likes. What's your take on this? I don't think it'll be the highest paying job in an organization. I think a lot of marketers liked it. Yeah. The CMO, one of the highest churning roles in a C-suite. I think it is actually the highest churning role in a C-suite.

20:48And I think a CFO, COO, CEO will always get paid more in an organization than a CMO. But that's just my personal take. And I could be wrong. I'm in marketing. I've seen so many of these large organizations. And a lot of my buddies - Dude, you're a CMO at your company. Yeah. And a lot of my buddies are CEOs of publicly traded companies. And a lot of these numbers are public. But going back to brand, here's an interesting one for you. And I think we'll agree on this. Okay. A lot of people used to talk about cursor. right? I know a lot of people still use Cursor and it's integrated with Cloud Code, but do you hear as many people talking about Cursor now?

21:29And do you think their brand is really that strong of a brand, like a Jordan brand? Never. Yes. I think Cursor built their brand because they're like, oh, this makes coding easier. People didn't have strong brand affinity to Cursor, in my opinion. They just looked at it as a tool that make their lives easier. I think ChatGPT has a strong brand, right? I think you would agree with that. It has an extremely strong brand. Yeah. Right? So you know what's interesting? Go ahead, finish your thought. Go ahead. And would you agree that Claude has a very strong brand, at least in the B2B world, specifically to organizations, not just SaaS companies, but for organizations?

22:08Yeah. You know what actually, okay, so this is actually interesting that you bring it up this way. So I think about Claude, you and I pay for Claude. We pay for ChatGPT, right? We pay for all the other ones, okay? Now, ChatGPT, strong brand, Claude, strong brand, they're all great. It kind of doesn't matter. So like a couple, the last couple of weeks, I was talking about Claude code and then, you know, talking about, you know, Opus 4.6. But now I see all the engineers talking about using Codex, which is owned by OpenAI. They have Codex 5.3, which is a very strong model as well, which you can use for OpenClaw.

22:40So anytime something new comes out, it's not even earlier, you're saying it's like month it's like the news cycles are monthly for ai it's like every day like i'm i'm very promiscuous with my models i don't care about the brand so when the utility is higher and there's something new i will gladly switch over to something and that's when the switching costs just quite aren't it's just not quite there right now which is uh sometimes you know the brand itself is not strong enough and i don't think it's eric i think it's actually the majority of the market that thinks that way i know i think that way i think majority of corporations think that way?

23:12And he nailed it. It's because switching costs aren't high yet. I think that'll change over time. You want to hear an interesting side note? I was at that conference and that company does more than a billion a quarter, so over four a year. They were paying for ChatGBT. They wanted a change on ChatGBT. And ChatGBT was just like, yeah, we don't do custom stuff for companies unless they're spending$10 million minimum with us a year. And Google was pitching them like, you guys are already on the Google suite. You guys should just switch to Gemini. They're like, what's it cost? Like, nothing. It's included.