AI + You | 5 steps for impactful experimentation

10 Oct 2023 · 41 min

Ask about this episode

Ask anything about it. ChatGPT or Claude reads this page and answers with the times it was said.

Connect VO and ask about every podcast you hear, including the moments you saved. Add to ChatGPT · Add to Claude

In short

Masters of Scale Podcast Episode Notes: AI + You | 5 Steps for Impactful Experimentation

Episode Overview In this episode of Masters of Scale, host Reid Hoffman leads a discussion on the potential of AI within business through a structured approach to experimentation. Featuring insights from renowned AI experts, the episode serves as a guide for business leaders to effectively integrate AI into their operations.

Episode Highlights

Introduction to AI Experimentation

  • AI can be daunting but holds immense potential for business growth.
  • The episode emphasizes the importance of ongoing experimentation to harness AI's capabilities.

Key Guest Speakers

  1. Fei-Fei Li - Stanford HAI co-director
  2. Mustafa Suleyman - Co-founder of DeepMind
  3. David Luan - CEO of Adept
  4. Additional AI pioneers sharing their insights.

Five Steps for Experimenting with AI

Step 1

Learn What's Out There

  • Preparation is Key: Understand the current landscape of AI technologies.
  • Mael Gaveh emphasizes that transitioning to AI is a gradual process rather than an immediate shift. Leaders should assess their needs and experiment accordingly.

Step 2

Focus on Pain Points

  • Identify specific areas in your business that need improvement.
  • Fei-Fei Li's example from healthcare illustrates how AI can address systematic issues like hand hygiene in hospitals, showing a clear application of AI to resolve real-world problems.

Step 3

Illustrate AI's Power

  • Demonstrate Rather Than Preach: Show your team AI's capabilities through real-life applications rather than just discussing its potential.
  • Jared Spataro shares how using Microsoft AI tools in meetings helped foster enthusiasm and understanding among team members.

Step 4

Onboard and Collaborate with AI

  • Treat AI as a new team member: Establish trust through gradual delegation of tasks.
  • David Luan discusses how giving feedback to AI can significantly improve its performance, emphasizing a collaborative relationship.

Step 5

Experiment with Your Eyes Open

  • Acknowledge the limitations of AI and approach experimentation with caution.
  • Jared Spataro warns against the misconception that AI will solve all problems, stressing the importance of data security and careful deployment.

Key Takeaways

  • Ongoing Experimentation: Leaders should embrace experimentation with AI as a continuous journey rather than a one-time effort.
  • Customization and Specificity: Tailoring AI applications to specific business needs can yield better results.
  • Team Alignment: Building consensus and enthusiasm around AI experimentation is crucial for successful implementation.
  • Preparedness for Discomfort: Be ready to face challenges and learn from failures during the experimentation process.

Conclusion The episode concludes with a reminder that the evolution of AI in business is just beginning. Embracing a mindset of curiosity and continuous learning will enable leaders to navigate this transformative landscape successfully.

Additional Resources

  • For more insights on AI and future episodes, visit the [Masters of Scale website](https://mastersofscale.com/).
  • Subscribe to [Masters of Scale Newsletter](https://mastersofscale.com/subscribe) for updates and additional content.

This summary encapsulates the core discussions and actionable insights from the podcast episode, emphasizing the strategic approach needed to effectively integrate AI into business practices.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Hear the part that matters, and keep it.Open this episode in VO. Double tap your headphones to save a moment as you listen.
Get VO free

Transcript

Automatic transcript. May contain errors.

0:00Scaling a business in the US can feel like a maze. Each state has its own payroll, benefits, and compliance rules, pulling your focus away from growth, which is why founders use Deal. Deal is the professional employer organization, or PEO, that gives you a dedicated HR expert, plus Fortune 500-level benefits for your team. The National Association of PEOs says businesses can grow twice as fast if they use one. So, if you're scaling, make it simple with Deal. Go to deel.com. slash MOS and get up to three months free. If you're in private capital, you understand that your next great deal starts with who you know.

0:41That's why over 3 ,000 firms trust Affinity, the CRM platform purpose-built for private capital. Affinity's relationship intelligence reveals your team's strongest paths to founders, investors, and decision makers using insights It's hidden in emails, calendars, and meetings. With powerful AI tools like Affinity NoteTaker and Deal Assist, you'll spend less time managing data and more time closing the right deals. Learn more at affinity.co.com. Marketplace.

1:18On the final Thursday of every November, many homes across the U.S. burst with the sounds of a parade on the TV. Spirited family debates You want to talk politics? Let's talk politics And the squeak of an old oven door For some people, preparation for the holiday begins months in advance While traditions may stay the same, the menu often evolves It's like, what's a new way to make turkey? What's a new way to make pie? It can be so frustrating That's Priya Krishna Priya is a best-selling cookbook author and food reporter at the New York Times. Every Thanksgiving, Priya feels the pressure to conjure new and creative recipes.

2:02So Priya decided to welcome an unlikely sous chef into her kitchen. We thought, what if we just asked AI to generate our Thanksgiving menu for us? Priya wondered, rather than bend over backwards to invent the next turducken, What if AI was the secret weapon every recipe writer didn't know they needed? Priya and her team filmed their experiment. She committed to cooking the AI-generated recipes word for word. We gave ChatGPT a bunch of different prompts. Show us a Thanksgiving dessert that is a spin on pumpkin pie. Show me an unconventional take on stuffing. Show me an Indy-inspired version of turkey.

2:51And that's where things got really interesting. The more specific we made the prompts, the more creative ChatGPT would get. To Priya's surprise, GPD's recipe for stuffing called for Indian naan bread. Naan is not the most intuitive bread for a stuffing. You think you would want something that's super absorbent. But in my mind, I was like, maybe there's something too non. While Priya cooked through each of the AI recipes, she battled against her instincts, desperate to amend peculiar directions and measurements. The first dish Priya finished and plated was the non-stuffing. It looked a little gnarly coming out of the oven.

3:40It sort of looked like a cinnamon raisin bread pudding. Thankfully, other dishes looked more appetizing. The cake looked delightful. It was like a pumpkin spice cake with cream cheese frosting. To judge AI's Thanksgiving dishes, Priya invited four New York Times cooking columnists. The green beans were cooked to that perfect, crisp, tender texture. Bright green, they've got a little crunch. And then on the other hand, you had this turkey that was just dry as a bone. The general consensus was, if I went to someone's Thanksgiving dinner and they served this, I'd be ordering pizza afterwards. Despite GPT's lack of culinary success, Priya came away with some optimism.

4:32There are plenty of uses for AI in cooking. You could tell AI, I've got mushrooms and chicken broth and green beans in my fridge. What are some things I could make? And AI could give you ideas. I'm cooking chicken thighs. What temperature should they be at to be considered fully cooked? What is the roasting temperature for sweet potatoes that are cut into cubes? AI can be very good as sort of a kitchen assistant rather than perhaps the kitchen leader.

5:07Prio is only able to make this useful discovery through experimentation. No chef expects to create a flawless dish on their first attempt. They know from experience that commitment and patience are key in finding the perfect balance of flavors, textures, and smells. Although AI lacks the distinctly human senses and emotions needed to enjoy a turkey with all the trimmings, It can still help us come together and experiment and collaborate to make cooking creative, exciting, and accessible. Even though the AI's integration was far from a triumph, it encouraged Priya to step outside of her comfort zone and open her eyes to new ideas.

5:51Every business leader should take inspiration from Priya's willingness to invite AI into the kitchen and experiment. With patience and an open mind, the potential is boundless. That's why I believe that AI won't revolutionize your business overnight. To unleash AI's true power of scale, you must dive headfirst into an era of ongoing experimentation.

6:33excited I've been about anything in software since the internet. It's definitely a super exciting time to be in this space. All of these things are possible. Let's try to figure out whether this is actually useful or not. The tech just shouldn't replace human beings. Is it the worst thing in the world or is it the greatest thing in the world? This is Masters of Scale.

7:05I'm Reid Hoffman, co-founder of LinkedIn, partner at Greylock, and your host. And I believe that AI won't revolutionize your business overnight. To unleash AI's true power of scale, you must dive headfirst into an era of ongoing experimentation. Normally, on Masters of Scale, we dissect the story of an iconic entrepreneur to prove a theory of scale. But in the spirit of experimentation, today we're bringing you something a little different. We'll hear from an array of experts who have played a major role in scaling AI over the past decade. They'll share stories and lessons from their time at pioneering AI developers like OpenAI, Google DeepMind, and Microsoft.

7:48Their experiences with AI provide a perfect lens for any leader to better understand and navigate this new era, even in industries far from the leading edge of tech trailblazers. With the burgeoning AI revolution, it's helpful to remember that this isn't the first time modern humanity has transitioned into an intimidating new technology. When the world was first introduced to Netscape in 1994, many predicted that the internet would revolutionize the world of media and retail. Of course, this came true, but it took well over a decade to fully come to fruition. During that time, the technology gradually improved and the cost of entry lowered.

8:33Computers became faster to manufacture and the resolution of videos featuring sneezing pandas or cats in fedoras streamed in a higher and higher quality. However, it took years for many businesses to take advantage of the opportunities afforded by the internet. Today, we're experiencing change in a more compressed time frame. AI is evolving at an exponential pace. So, the way we enact patient experimentation must mirror that speed. As AI can be overwhelming, we want to cut through the noise and offer five steps to experiment impactfully with AI. By the end of the episode, I hope you're inspired by AI to forge a new creative and collaborative relationship.

9:19I also wrote a book earlier this year on this subject called Impromptu, the first book on AI that is co-written with AI. Some of these experiments will be brand new to leaders, while others may be recognizable experiments, but with an added twist. Here's your five steps to experiment impactfully with AI. Step one, learn what's out there.

9:49Thorough preparation is essential for any experiment. So let's begin by exploring some of the preliminary questions that leaders must consider before weaving AI into their business. Our first AI thought leader is Mael Gaveh. Mael is the CEO of Techstars, a global investment firm that focuses on early-stage startups. She currently mentors countless entrepreneurs who are transitioning to AI. I think there's a lot of people right now who are like, oh my God, there's this new wave of innovation coming at me. I'm not an engineer. I'm really worried that I'm going to be left behind. I don't have the resource.

10:29I don't have the skills. Like, what do I do? If you can relate, Maelle offers some sage advice. It's a marathon, not a sprint. You do not have to run at full speed because right now, right here, it's only 100 meters. You need to save your energy and your resources to get to the finish line. It's important to go through the finish line, but you don't have to be the first one. That's okay too.

10:58Mael's right. Any reliable experiment takes time. And many experiments fail. But that's exactly why we experiment. When we discuss the race with AI, it's important to remember that everyone's race is different. It could be a race for market share, a race for capital, or even a race for business survival. Regardless, if you lack confidence in your current ability to harness AI, that's entirely understandable. Despite which race you're running in, we're still near the starting line. Considering when it is the right time to incorporate AI into your business, this is not a one-off process. You're not going to decide today whether you do AI or not do AI, whatever that means.

11:46AI will certainly align with some of your business needs. AI amplifies language and communication, which is relevant to every business. Whether it's in meetings, sales, marketing, or customer service, there is a touchpoint for AI. However, today's available AI models may not immediately reshape your business. But the question isn't if you should begin experimenting with AI, but how much you should incorporate AI in your business following the experiment. Mael poses some questions for you to determine your need for AI integration at this moment in time. Does that answer your customer need? Does that help bring your business forward?

12:25And if it does, great. And if you don't know yet, in my world, I think it's okay to wait another month, another quarter. I'm not saying 10 years, but just a little bit, and then revisit on a regular basis whether or not there's new application of AI, new development that would make sense into your business. And so experiment. Try things and see what sticks. I want to echo Mael here. Just because AI might not integrate correctly into your business today doesn't mean that it won't six months from now. As humanity's partnership with AI has only just begun, it's vital to keep your finger on the pulse and experiment with all the new use cases that develop.

13:06Step 2. Focus on the pain points.

13:16After you've decided to begin your journey with AI, it's wise to choose a specific area of your business to focus your experiment. Note, the AI discussed in this section refers to traditional AI rather than generative AI. In short, traditional AI can analyze data and tell you what it sees. It relies on explicit programming, whereas generative AI can use that same data to create something entirely new, like generating text, images, music, or even human-like conversation. The next voice you'll hear is Fei-Fei Li. Fei Fei is co-director of the Stanford Human-Centered AI Institute. She also served as vice president of Google and chief scientist of AI at Google Cloud.

14:04Healthcare has been a deep concern for Fei Fei from a young age. Reed, as you know, I come from an immigrant family. And I think as a friend, you also know my mother. she's chronically sick with a very severe cardiovascular illnesses. So as far as I can remember, I was taking care of my mom. Over her decades of caretaking, Fei-Fei has experienced every facet of the U.S. healthcare system, from ICUs to ambulances to operating rooms to home care. Her main takeaway? Healthcare is complex. Around 2012, there was a very exciting technological revolution happening in Silicon Valley, which is self-driving car.

14:57It really dawned on me, my God, what we're learning from self-driving car, which is smart sensors, deep learning algorithms, a holistic understanding of the environment, will also be applied to healthcare delivery.

15:18We immediately start talking to Stanford hospitals. Our very first project, I think, started in 2013 was hand hygiene. Hand hygiene in patient rooms is so important to reduce the hospital-acquiring infection, which kills three times more Americans every year than car accidents. Before they could make a difference in hand hygiene, they needed more data. The only way to collect this data was by having a healthcare worker monitor how regularly and extensively colleagues washed their hands. But Fei-Fei saw the importance of reliably collecting the data to make healthcare workers aware of the current state of hygiene and potential risks.

16:01In a single hospital unit, Fei-Fei and her team installed computer vision technology by every hand hygiene station. A machine learning algorithm captured constant images and was trained to detect sanitizer dispenser use. The algorithm's accuracy was compared with an in-person human observer fulfilling the same task. And this is pre-COVID. It sounded like a boring project, even though we knew it was so important. But after COVID pandemic came, it made so much sense. Yep. Even not being a doctor, because it's actually the application of technology to a very important human-centered thing, which is health and well-being and the system of things and just the little thing of making sure the hands are washed.

16:47Massive improvement. Exactly. When the results of Fei-Fei's experiment were analyzed, her team came to the conclusion that AI integration has the potential to surpass the current gold standard of hygiene in hospitals. Another AI pioneer who dedicated years to AI's application to healthcare is Mustafa Suleiman. Mustafa co-founded one of the most influential AI businesses in the world, DeepMind. After Google acquired DeepMind, they launched DeepMind Health. We started DeepMind Health to work on predicting electronic health records to try to detect when a patient was about to experience some kind of deterioration.

17:31Through meetings with doctors and nurses, DeepMind Health learned that the detection of acute kidney injury, or AKI, was a consistent pain point. Spotting the early signs of AKI was notoriously difficult, often slow and unreliable. And with AKI contributing to the deaths of around 100 ,000 patients every year in the UK, the stakes were high. Experts believed that up to 30 % of AKI cases could be prevented if a doctor intervened early enough. We developed an algorithm that could read the electronic health record and try to predict when a patient looked like they were about to go into kidney failure and experience either sepsis or some other kind of serious deterioration.

18:18Once the team saw success in their algorithm, they wove the technology into a new app called Streams. The first users were healthcare workers in the NHS. Now doctors could simply feed the patient's charts and vitals into the Streams app, and it would alert them of a potential AKI risk. The app reduced the cost of treating acute kidney injury by 20 % and sped up the time to detect acute kidney injury from on average 4 hours to 15 minutes. I was very proud of that work because it actually showed that you could simultaneously reduce costs and improve the quality of care. And that's the goal in health systems is that you want to make things cheaper and higher quality.

19:06And that's the promise of AI. Over the course of four years, Google DeepMind's AI also became equally proficient at detecting eye diseases and breast cancer. In 2021, Google took Streams offline due to privacy concerns. But it's helpful to remember, a large part of the Streams app's original success was due to addressing pain points in healthcare. So for AI to make improvements to your business, explore where it's most needed. Getting the most out of human teammates may be one of your most critical pain points. I would say every employee, every knowledge worker should now learn how to be good at delegating.

19:47That's David Luan. David is the co-founder and CEO of Adept, developing models that actively fulfill digital tasks for you, learning software to become an active teammate for knowledge workers everywhere. David shared with me the many layers that go into thoughtful delegation. Delegation itself is a whole skill. How do you frame what the goals are? How do you convey the desired outcome you want to, whether that's your human teammate or your AI teammate, in the fewest number of words possible where you actually get that outcome, prompting is a way to just get the right textual output back. So how do you delegate that whole thing to the model?

20:26I actually think everybody should be thinking about how they use AIs to make themselves more effective. And they should be trying to limber up their skills, doing a little bit of flexibility stretching and bench pressing and other kinds of things. Even if delegation isn't currently a leadership pain point for you, the new specificity and delegating to AI is something you'll need to master. Working with AI doesn't immediately mean it'll generate the perfect results. Delegating to AI is achieved through asking the model questions, often described as prompts. But framing a smart prompt to generate the best result is its own skill.

21:08To show you what I mean, I want to take a moment to ask Pi a couple of questions. Pi is the large language model I help build at Inflection AI. Hey there, great to meet you. I'm Pi, your personal AI. Hey Pi, give me a title idea for an episode of Masters of Scale about AI. Here goes. How about the automated workforce or robots, humans, and the future of work? These titles suggest that the episode will explore how AI and automation... Stop generating. Hmm, that's not quite what I want. Let me reframe the question. Can you give me a title for a Master to Scale episode about AI that's pithier and tells the audience that they'll learn tangible lessons about incorporating AI into their business?

21:54Absolutely. How about 10 Steps to Becoming an AI-Powered Business or the AI Playbook? These titles are short and sweet, and they hint at the practical focus of the episode. I nailed it, didn't I? That's great. I might use that. I'm your AI at your service. Good prompts are dependent on the subject, and the best prompt doesn't mean it's ultra-specific. I'd like to think of it more as prompt directing rather than prompt engineering. Think of yourself like a movie director. Rather than telling the actor, say the line exactly this way, leave breathing room for creativity by the actor. You might say, try it more in the style of this or inject a little bit of that.

22:37The conceptual lenses you add into your prompts will lead you to the most satisfying surprises. While delegation is far from a new entrepreneurial skill, these core lessons are more important than ever as leaders enter an unpredictable and fast-paced era. So far, we've explored some of the preliminary questions you should consider while diving into the great AI experiment. Next, we'll navigate how leaders should continue the experimental mindset once AI integration is off and running. That's after the break, so stick around.

23:17Real leaders don't back down when the stakes are high. They innovate, they push forward, and then they take the stage at the Masters of Scale Summit. Join us in San Francisco, October 7th to 9th, to hear from the CEO of the New York Times, scientists using cutting-edge technology to find cures, the leader of crypto powerhouse Coinbase, a retired four-star general, and many, many more. Apply now at mastersofscale.com slash apply25. That's mastersofscale.com slash apply25.

24:17aws.amazon.com slash activate and start building. Expanding your business in the U.S. can feel like a maze. Every state has its own payroll, benefits, and compliance rules, which can pull your focus away from growth. That's why founders use Deal. Deal is the Professional Employer Organization, or PEO, that gives you a dedicated HR expert plus Fortune 500 level benefits for your team. The National Association of PEOs says businesses can grow twice as fast if they use one. So if you're scaling, make it simple with Deal. Go to deel.com slash mos and get up to three months free.

25:05We're back with your five steps to experiment impactfully with AI. To see exclusive clips from my interviews with some of our AI thought readers featured in this episode, head to the Masters of Scale YouTube channel. Before the break, we heard how AI won't revolutionize your business overnight. And to unleash AI's true power to scale your business, you must dive headfirst into an era of ongoing experimentation. But now it's time to level up. I want to explore the ways in which you should continue experimenting while beginning to actively integrate AI into your business. So let's jump into the next step for experimenting impactfully with AI.

25:49Step 3. Don't preach the power of AI. Illustrate it. Step 3. Don't preach the power of AI. Illustrate it. While you might be eagerly anticipating all the ways in which AI can evolve your business, there will be other members of your team that are wary. I'm awkwardly placed across this triangle of technology, design, and business. That's Dr. John Maeda. He's an artist, author, and VP of Design and AI at Microsoft. As a student of many disciplines, John is in a unique position to monitor enthusiasm for AI. I can hear the technology folks, this is amazing, let's do more of it. The design, social science part of it, saying we have to ask questions, how does it impact everything, how does it lead to more unfairness, really important humanity questions.

26:47And I can hear on the business product side, well, how is this going to lead to more profitable business? If an experiment has multiple conflicting aims, it's harder to get everyone on board. So, for example, if your business development or marketing team is gung-ho with AI, but your creative team is resistant, make sure to begin a process of clear communication to get everyone in sync with a strategy and roadmap moving forward. You can do this by starting a simple, frank discussion, laying out how you plan to mitigate the downsides and take advantage of the upsides. Navigating those frictions is so critical for AI to make a true difference to business, to the culture, and to advanced technology.

27:35To understand more about how to align your team, we need to hear from Jared Spotaro. Jared is the CVP of modern work and business applications at Microsoft. As an expert on the future of work, Jared has ideated on all the ways that AI could transform the workplace. Like Dr. Maeda, Jared knows that everyone across your team might differ in their enthusiasm for experimenting with AI. It is very rare that you're going to have everyone in a group say, that's it, that's the solution. You have early adopters. They play an important role in evangelizing the rest. You have laggards. They play an important role in kind of anchoring the group to make sure there is some thought that's being applied to the new technology.

Read the full transcript

28:19So my advice would be finesse it. Don't force it. Don't feel like you have to convince everybody that this is the best thing since sliced bread. The best way to win over reluctant teammates is through experiments that have clearly defined outcomes. At Microsoft, Jared has witnessed firsthand the power of AI through the Microsoft 365 CoPilot tool. With large language models embedded into Microsoft's productivity apps, users can collaborate with an AI assistant. For example, on Excel, you can prompt the CoPilot to create data visualizations in seconds, or on Outlook, it can declutter or organize your inbox.

28:57I want to shine a light on how Jared drummed up enthusiasm for using Microsoft's co-pilot around the office. We would use them in meetings. We'd send meeting summaries that were created by the co-pilot. We'd, in the middle of a meeting, use it to kind of analyze what was happening. And I'll tell you what, that drove adoption, diffusion, and curiosity more than anything we could have done. People were like, there's something going on over there. What's going on? it created more of a positive pull than some sort of feeling of like, okay, we're going to have a big town hall.

29:35Jared motivated his team through illustrating AI's direct use cases. For our listeners, Jared devised some questions for you to pose once your AI experimentation is underway. This will allow you to establish clear metrics that can align your team behind AI. What types of innovative, unique uses are you finding for it? How much time has been saved? What is the difference in overall metric output sales that are higher? Deal rates, are those changing the close rates associated with deals? Is satisfaction higher? To Jared, the questions you ask move through three distinct phases. You start with just, are you spending enough time to get to know it?

30:17And then are you finding unique and novel uses? And then finally, okay, don't worry. Now you've recognized it's valuable. Let's see the value in terms, in language that is no different than the way we expressed it six months ago of like, we're running a business. Let's go be more efficient. As the world of AI can be overwhelming to many workers, it's important to be intentional with your aims. This is why metrics of success must be communicated clearly and early. Once you've achieved this, you'll find that your team is aligned and motivated to tackle your business's next bold chapter. Step four, onboard and collaborate with AI like any new employee.

31:04Once you've aligned with your team, it's time to set your expectations for your incoming new hire, AI itself. Let's hear again from David Luan for more on this. I usually don't like to anthropomorphize these models, but this is actually a case where I think we should. Let's say you hire someone new to your company. How do you know whether or not you trust them with something? Maybe in the beginning, it's like start with something simple like let's go prep the financial update for the next board meeting. But then you ratchet up the level of complexity of what you trust them with and you consistently make sure that you're getting the results you want.

31:43When you don't see the results you want, you do what you would do for any underperforming teammate. You investigate by asking a few questions. You're like, well, why'd you do it this way? What did you think about over here? Did you consider this other possibility? This is a great example of the way leaders everywhere should consider onboarding AI into their workflow. It's natural to be wary of trusting AI with important tasks in the very beginning. But the more you experiment and patiently drip-feed responsibility, the more AI will have the chance to prove itself and open the door for trust. It's important to commit to healthy collaboration with any new employee.

32:20AI is no different. After his time at OpenAI, David moved on to Google, where he led their large models research. It was during an experiment using AI as an assistant on Google's software program that he experienced a revelation. In the process of solving a particular task, if a human gives the language model one piece of feedback, like you're writing code and you forgot to import the Python OS library, then the solve rate for these problems would jump up like 20, 30 percent. From just one targeted piece of human feedback, the model's ability to learn improved dramatically. Our core insight is we should not just train models and scale them up in a vacuum.

33:05the model should be the product and the end user should interact with the model directly and be able to directly give feedback to the model and for the model to be able to learn on it. And that loop, that human feedback loop, is going to be the fastest way to progress. Getting the best results from AI will always require an ongoing collaborative relationship. Even when you've begun to implement AI across your business, the experiment isn't over. The models can always improve if you're willing to spend the time to help them get there. To illustrate this idea in practice, I'm going back to my AI assistant, Pi.

33:40When I chatted with Pi earlier in the episode, I reframed my prompt to encourage an answer that aligned closer to my creative vision. Now, though, I want to discover Pi's limitations and offer direct feedback to make the model one step smarter. Let's try it. Hey, Pi. Hi, Reed. Got another question for me? Who was the first guest ever on Masters of Scale? That's a great question. The first guest was Reid Hoffman, the founder of LinkedIn. Actually, Reid Hoffman is the host of Masters of Scale. The first guest was Brian Chesky. You are absolutely right. My apologies for the mix-up. So let's see if you've retained that information.

34:19Pi, who was the first guest ever on Masters of Scale? The first guest was Brian Chesky. The episode was released in 2017, and it was titled, Do Things That Don't Scale. Did I get it right that time? That's right. Thank you, Pi. Certainly. Are we going to keep going with this? This is kind of fun. Pi improves as it learns what makes a positive interaction versus a negative interaction. It retains information like we just heard by generating memory that's specific to you. Pi enters a data store that is only accessed during your interaction. If someone else were to ask Pi who the first guest on Master the Scale was, it might still get the answer wrong.

35:02That's because the model improves for you as an individual user without sharing your personal data and private prompts. The key is having you, the human, in the loop to improve the model for yourself. As you'll hear in our episode on AI and ethics, a human in a loop is not only crucial to AI experimentation, but also moral responsibility. Which brings us to our final step. Step 5. Experiment with your eyes open and be prepared for discomfort.

35:41While it's a vital time for leaders to begin experimenting with AI, it's equally important that you experiment safely. Sometimes, that means safeguarding your expectations, too. Let's hear again from Microsoft's Jared Spataro. When asked about the most common AI misconception, here's what he said. I would say misconception number one, it's going to solve all my problems. And I would say, no, not quite. That's right. In the same way that deploying AI isn't an on-off switch, neither is its total impact on your business. But that's not the only safety concern that Jared wants you to consider when experimenting with AI.

36:19A lot of people have questions about security and privacy. And a lot of what we see today that is most visible tends to be coming from a consumer service. And those consumer services have terms and conditions that essentially say, hey, whatever you send us, we can use it to train and we'll use it to train our models. And so we certainly have cases where people are taking important information in an organizational context and unknowingly, unwittingly exposing it to the world. So be bold, experiment, but make sure you do that in the context of a service that will protect your data, your security, your privacy.

36:57You need to create an environment that you feel comfortable experimenting in. If you're distracted by security concerns throughout your testing, you're less likely to be creative and agile. Before you give AI tools too much responsibility, make sure you understand your relationship with its developer. This is especially true for users who are uploading information like customer data, client data, or medical data. In Mustafa Suleiman's book, The Coming Wave, he wrestles with the need for AI experimentation without sacrificing responsible scale. In 2020, Mustafa left Google DeepMind to become Google's VP of AI product management and AI policy.

37:38I moved to work at Google full-time, and I was lucky enough to be able to work on an earlier version of Lambda. Lambda is Google's large language model, first released under the name MENA. But when Mustafa first joined the team, it was nothing more than a small research project with six employees. As their Lambda model improved over time, Mustafa discovered what set Lambda apart from other large language models. So previously, we had a prompt answer engine, whereas what we built with Lambda was an interactive back and forth agent. So in many ways, it was ChatGPT way before ChatGPT. And we were completely blown away with how good your seventh and tenth turn of conversation was with the model.

38:33With an interactive agent came a working memory. So when you sat down for your tenth conversation with Lambda, the model had retained the context from all of your prior interactions. Mustafa was convinced that the encouraging signs of their interactive agent would spark the next wave of technology. We tried really hard to get that launched at the time, but there just wasn't the appetite for taking the kind of risk. It was pretty clear to a lot of people at Google that this was potentially going to unseat Google's existing search business. It's super hard for a company to try to compete with itself and upend itself from within.

39:12Google's search engine is ubiquitous, but the rigid nature of the search engine would suffer in comparison to the fluid collaboration of an interactive agent. As the research team's creation would undercut Google's bread and butter, Google was reluctant to help Lambda take center stage.

39:33In February 2023, Lambda was deprioritized in favor of Google's newer chatbot, BARD. experimentation and discovery go hand in hand but it can also lead to some discoveries that are hard to hear when you begin experiencing the capabilities of ai be prepared for ai to reveal limitations in your business when that happens you'll have the choice to stick with what got you where you are today or trust that what you're seeing is true when shining a light on your limitations you must be prepared to embrace change. As an early figure in the modern development of AI, Mustafa has witnessed the breakneck speed at which technology and its capabilities has scaled.

40:17Every year, the cutting edge of AI models has used 10 times more compute than we used back in 2013. So over the last 10 years, the amount of compute used to train the best and the biggest models in the world has 10x'd. So that gives you a sense of the trajectory that we've been on over the last decade. It's kind of hard to comprehend. Looking back can also give us a good idea of where we're headed. I was looking at a photograph a few days ago of a floppy disk in 1950. And it was the size of a pallet. And it was being lifted into an aircraft by a forklift truck. Now we have literally billions of those floppy disk-sized units of computation in our smartphones.

41:13And if that trajectory continues over the next decade and more, and we see no reason why it won't, that is going to be the most incredible boost to creativity and productivity in the history of our species. Amid the noise, it's easy to mistake AI for merely this year's trend. However, this is your time to adopt a new leadership mindset that embraces innovation for years to come, even if we can't comprehend what that innovation looks like yet. This mindset will help navigate all future transformations as leaders look to evolve and gain new skills. Over the coming weeks, we'll continue our AI series, exploring AI's potential to unlock new opportunities, accelerate your personal scale, and revolutionize the business world.

42:03From grand strategy to insider tips, we'll make sure to offer all the tools you need to take advantage of this moment.

42:14If you're still intimidated by AI, accept that you will make mistakes. But that's a key byproduct of experimentation. Because those mistakes may lead to your greatest learnings. And as Einstein said, cue AI-generated Einstein. No amount of experimentation can ever prove me right. A single experiment can prove me wrong. I'm Reid Hoffman. Thanks for listening. This is Emily Warden, Capital One Business customer and owner of Emily Warden Designs, a bespoke fine jewelry store that quickly gained buzz after opening its doors in Richmond, Virginia. My customer base grew exponentially once we had a storefront.

42:57We had one engagement ring case at the time, and we had lines out the door every weekend. As her storefront continued to have record sales, Emily knew it was time to up-level production. We normally just purchase diamonds in very small batches or per order. So we wanted to invest in not just one or two pieces, but a collection of natural diamonds. Emily knew creating a collection would be a big investment, But with the help of her Capital One business card, she was ready to bet on herself and bet big. It was about$40 ,000,$45 ,000 all in up front. Having the Capital One card was definitely reassuring to be able to make such a large investment purchase.

43:41And of course, to get the cash back that came with it. To learn more, go to CapitalOne.com slash business cards. AI agents can make your teams more productive. but if they aren't connected to other agents or your data or your existing workflows, they can only take you so far. Any business can add AI agents, but IBM connects your agents across your company to change how you do business. Let's create smarter business. IBM.

44:11Masters of Scale is a Wait What original. Our executive producer is Chris McLeod. Our producers are Chris Gauthier, Adam Skuse, Alex Morris, Tucker Lagersky, and Masha Makotunina. Our editor-at-large is Bob Safian. Our music director is Ryan Holiday. Original music and sound design by Eduardo Rivera, Ryan Holiday, Hayes Holiday, and Nate Kinsella. Audio editing by Keith J. Nelson, Stephen Davies, Stephen Wells, Andrew Nault, and Liam Jenkins. Mixing and mastering by Aaron Bastinelli and Brian Pugh. Our CEO and chairman of the board is Jeff Berman. Masters of Scale was created by June Cohen and Darren Triff.

44:55Special thanks to Jodine Dorsey, Alfonso Bravo, Tim Cronin, Erica Flynn, Sarah Tartar, Kitty Blazing, Mariel Kareker, Chinime Ezequena, Colin Howarth, Brandon Klein, Sammy Oputa, Kelsey Saison, Luisa Velez, Nikki Williams, and Justin Winslow. Visit masterthyscale.com to find the transcript for this episode and to subscribe to our email newsletter.

From the publisher

AI can be overwhelming. In this 3-part series, we offer business leaders an actionable playbook to best implement AI. Part one: To unleash AI’s true power of scale, you must dive headfirst into ongoing experimentation. To guide you, host Reid Hoffman speaks to Stanford HAI’s Fei-Fei Li, Inflection’s Mustafa Suleyman, Adept’s David Luan, and more AI pioneers. Their experiences with AI provide a perfect lens for any leader to better understand and navigate this new era, even in industries far from the leading edge of tech trailblazers. So channel your inner mad scientist and embrace this new revolutionary tool with us.

Read a transcript of this episode: https://mastersofscale.com/

Subscribe to the Masters of Scale weekly newsletter: https://mastersofscale.com/subscribe

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

More from Masters of Scale

All 366 episodes
AI + You | 5 steps for impactful experimentationMasters of Scale · 41 min
Listen in VO