Will AI Supercharge Our Output or Sink Our Standards?

10 Jul 2025 · 1 h 17 min · 34 chapters

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In short

Whether falling AI model prices will create real productivity gains or trigger “lower standards” via mass automation. The episode argues that success depends on choosing the right business KPI, using AI to augment human judgment, and governing agentic systems for quality, security, and liability.

Guests (and hosts)

Andreas Welsh (AI strategist; ex-SAP Global AI Center of Excellence leader; founder of Intelligence Briefing; author of AI Leadership Handbook; teaches agentic AI on LinkedIn Learning; hosts “What’s the Buzz? AI in Business”). Hosts: Corey Noles and writer Grant Harvey.

Key claims

  • Start with measurable KPIs (revenue, cost, customer satisfaction), not vague “10x productivity” promises.
  • Cheaper AI increases usage (Jevons paradox), so total cost savings require value measurement, not just lower per-use prices.
  • Generating more content isn’t the goal; authenticity, thought leadership, and human judgment matter.
  • Agentic autonomy multiplies risk; require governance, security (OWASP/zero trust), and human-in-the-loop.
  • Avoid “LLM wrappers”; build business “moat” and secret sauce; consider outcome-based pricing.

Notable examples

  • Order-to-cash process vs simple email writing.
  • HR resume screening and bias-aware job descriptions.
  • “Faceless content machine” workflows on YouTube/TikTok.
  • IKEA AR chair experience and Apple iPad ad controversy as trust/experience signals.
  • Outcome-based pricing analogies (Intercom/Desk-style successful-resolution models).

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

Chapters

Tap a time to open that second in VO

Exploring AI's Impact on Business Standards

0:45 to 3:18

Discussion on AI's potential to enhance productivity versus lowering standards.

“Andreas is an internationally recognized AI strategist.”

Evaluating AI's Business Value

3:18 to 6:12

Andreas discusses evaluating AI's effectiveness based on key performance indicators.

“You know, do we all want to have co-pilot or other tools write our emails?”

The Economics of AI Pricing

6:12 to 7:50

The hosts analyze the relationship between AI pricing and overall costs in business.

“We've observed that with gasoline, for example, if the price of gas drops, it's not like people stop driving or drive less.”

The Role of AI in Content Creation

7:50 to 13:50

Discussion on AI's role in content production and the importance of human oversight.

“The first one is you sort of can become in reliance on the AI if your systems are built around it.”

Conclusion and Future of AI

13:50 to 14:00

Wrap-up of the conversation on AI's future impact on productivity and standards.

“So I think, right, for me, that's the line.”

Optimizing Workflow with AI

14:00 to 16:49

Learn how to streamline workflows using AI and automation tools.

“I got to ask you the workflow if you give away the secret sauce.”

AI as a Meeting Coach

16:50 to 17:40

Discover how AI can enhance preparation and performance in meetings.

“And little things like that, it's not even about saving time.”

Insights from AI Leaders

17:41 to 19:18

Understand the key themes and surprises from interviews with AI leaders.

“What recurring surprise, good or bad, consistently shows up in those conversations?”

The Role of People and Data in AI

19:19 to 21:30

Explore the significance of human factors and data for successful AI integration.

“And by the way, I think it's never been a greater challenge and a greater opportunity at the same time than right now because of all these things that generative AI, agentic AI allow us to do.”

The Evolution of AI and Data

21:31 to 23:34

Learn how the evolution of AI is tied to advancements in data usage.

“Do you think that creates a value in that need for more context and the context that a model is specifically missing?”
Show all 34 chapters

AI Impact on Advertising and Trust

23:35 to 25:46

Examine how AI influences advertising strategies and brand trust.

“I feel like those are data points that, while they exist, I feel like there's something different that type of data could bring to the table that's maybe not there today.”

Augmented Reality and Consumer Experience

25:47 to 28:04

Discover how augmented reality enhances consumer interaction with products.

“So we're seeing a lot of these conversations, not just in finance and HR and procurement, but even industries that I would say 10 years ago, 20 years ago, were a lot more on the cutting edge.”

The Value of In-Person Experience

28:04 to 29:51

Discusses how physical experiences, like sitting in a chair, cannot be replaced by AI.

“All I remember was the beautiful guitar that got smushed.”

The Dual Nature of AI Autonomy

29:52 to 30:58

Explores the implications of giving AI systems autonomy and the balance between risk and benefit.

“What it can do is get me to go to the store and sit in the chair.”

Quality and Governance in AI

30:59 to 34:26

Highlights the importance of quality and governance in AI systems to mitigate risks.

“So, you know, cheaper or prices is only one dimension.”

Liability and Agency in AI Systems

34:27 to 37:18

Discusses the complexities of liability as agency shifts to AI systems and the importance of governance.

“Even a legal perspective, if you're in, say, healthcare or education, maybe, you know, where certain data is protected.”

Human Skills for an AI-Driven Future

37:19 to 41:41

Identifies critical human skills needed to work alongside AI, emphasizing communication and leadership.

“So what human skills in a world where you can scale jump in value?”

The Importance of Critical Thinking

41:42 to 42:00

Examines the rising need for critical thinking skills in an AI-driven world and the risks of over-reliance on AI.

The Challenges of AI in Critical Thinking

42:00 to 43:49

Discover the impact of AI on students' learning and critical thinking skills.

“I think it's already tough, or it was already tough before generative AI, you could argue.”

Governance and AI Guardrails

43:50 to 45:52

Learn about the essential guardrails organizations need for AI governance.

“And I think it just leads us well into governance too, because, you know, just like in other ways, governance costs money.”

The Risks of AI Decision-Making

45:53 to 47:48

Explore the risks involved when AI makes decisions and the need for caution.

“And then number three, technical mitigations as you're using these tools.”

The Shift to Outcome-Based Pricing Models

47:49 to 51:14

Understand how AI influences the evolution of business pricing models.

“So let's just lightning round through a couple of these last questions.”

Measuring Productivity Gains Effectively

51:15 to 54:37

Find out how to measure productivity gains beyond vanity metrics.

“You pay for 200 API calls or whatever it is.”

Recommended AI Tools for Businesses

54:38 to 56:00

Explore various AI tools and their applications for different business functions.

“Yes, we want fewer clicks and increased efficiency.”

AI's Impact on Sales and Workflow

56:00 to 57:58

Explore how AI tools can streamline sales processes and enhance workflows.

“If you're in sales, there are lots of products augmenting go-to-market.”

The Future of AI: Education and Accessibility

57:58 to 59:51

Discuss the long-term vision for AI, its accessibility, and necessary education.

“So, I would say to me, it's similar probably to how we think about electricity these days.”

Concerns About AI in Hiring Practices

59:51 to 1:02:47

Address the implications of AI in hiring, including biases and transparency issues.

“If you learn this when you're 30, you've probably been shocked a couple of times.”

AI's Role in Job Applications and Agent Systems

1:02:47 to 1:05:28

Examine the potential future where AI systems manage job applications on behalf of candidates.

“And then using AI to tweak your resume to fit the job description so your chances increase to stand out by another AI that filters you out.”

Insights from AI Leaders and Business Strategies

1:05:28 to 1:08:07

Learn about the experiences of AI leaders and how they navigate AI integration in business.

“And then also, quite frankly, if I got to do it again, how would I do it differently?”

The Quality of AI-Generated Content

1:08:07 to 1:09:59

Discuss the current state of AI-generated content and concerns about quality.

“call question at the end that's usually a lot of fun so five years out do you expect we'll celebrate a productivity boom or regret a flood of low quality output that we have dumped onto the world.”

The Impact of AI on Quality and Production

1:10:03 to 1:11:53

Discussion on how AI may affect quality in production across fields.

Insights from Gartner on AI Projects

1:11:53 to 1:13:43

Analysis of Gartner's report on the future of AI agent tests and productivity.

“We're going to look at, uh, you know, uh, early attempts at social media with AI that are going to be really cringy and bad.”

Navigating AI's Hype and Human Experience

1:13:43 to 1:15:05

Exploration of the optimism and realities of implementing AI technologies.

“Six, seven years ago, Gartner said about 80 to 85 % of AI projects don't deliver the value they initially intend to create.”

Sports Analogy: Success Rates and AI

1:15:05 to 1:15:33

Discussion on the success rates in business and sports as a metaphor for AI effectiveness.

“Are you on the 40 % or are you on the 60 % side?”
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Transcript

Automatic transcript. May contain errors.

0:00Will AI turbocharge our output or will it erode our standards in a rush to automate? Let's talk about it.

0:15All right, welcome humans to episode four of the Neuron Podcast. I'm Corey Noles, joined as always by our writer, Grant Harvey. Say hi, Grant.

0:24Corey Noles:Hi, Grant. All right. Today's episode will be centered on whether AI will become a massive productivity boost or a race to lower our standards across industries. So we went out and found the right person to talk to on this subject, and that is Andreas Welsh. How are you today, Andreas? Doing well. Thank you so much for having me. Awesome. We're glad to have you here. Andreas is an internationally recognized AI strategist. He spent more than about two decades turning tech hype into real business results. At SAP, he led the Global AI Center of Excellence and helped weave AI into the software that powers thousands of enterprises right now.

1:07Now, he's the founder of Intelligence Briefing, and Andreas advises Fortune 500 leaders and teaches LinkedIn learning courses on agentic AI and hosts the popular show, What's the Buzz? AI in Business. If you haven't watched that, go watch it. It's good. He's also the author of the best-selling AI Leadership Handbook that we'll talk about a little later as well. Yeah, and that's what it looks like. Yeah, good-looking book. Yeah, I like the cover, actually. Well, few people have what I would call a clearer view of the true cost and true payoff of AI. So we're thrilled to have you here to help us kind of unpack whether lower model prices will spark a productivity renaissance or a race to the bargain bin.

1:54Corey Noles:So I guess I'll kick it off. So, Andreas, I think that the largest thing that I think people think about when they think about applying AI in business is the idea that it makes you faster or more productive. So when you hear claims that dirt cheap AI will make everyone 10 times faster, what simple tests do you use to see if that's actually realistic or not? I think there are two. One is, who's the person saying it and how long have they worked on AI? That's the first one. We've seen a lot of crypto influencers become AI influencers almost overnight. But I think more and more realistically in business, I would say, you know, faster is great.

2:35But the question is faster at what? And what does it mean if you're faster? What does it mean in business terms? What does it translate to if you're able to do something faster, better, cheaper? There's always some business KPI, key performance indicator that you need to look at and say, well, if we're thinking about introducing AI, by the way, which isn't always the best starting point, thinking about where should we use this, but if we're introducing AI, what is the business KPI that we're looking to improve? So first of all, my recommendation would be start there. What KPI do we want to improve?

3:10And then see, is AI even the right technology to improve it? Can it help? There's been so much talk and so much excitement about generative AI and everything that it can do, right? Makes you 10 times more productive. You know, do we all want to have co-pilot or other tools write our emails? Maybe. If it's the one-liner, the quick things, or you're getting a summary. But maybe there are some cases where we don't want to do that. And, you know, that's just productivity. I think there are also so many more examples in bigger real business processes where you get an order. you process the order all the way to receiving money for that order that you've fulfilled, order to cash.

3:53So, you know, faster is great. First of all, it's not the only dimension, but also then faster at what and what does it realize? I think that's the bigger question. I think that's a good call out. And I like that you stepped on, touched on, you know, even that it's different between, say, a company that's producing a physical product that they're trying to sell and has this very clear programmatic pipeline versus some work that doesn't happen that way as well. And seeing that difference, I think, is important. Yeah. And again, I think so much of the discussion and what we see from vendors revolves around productivity increases.

4:34And yes, I think we can all agree that we can all be more productive. But the bigger opportunities, I think, for business are really in these business processes. How do you run your company? How do you manufacture a product? How do you find prospects? How do you market the products and services that you have? There are so many more opportunities where it's beyond writing an email faster or writing a job description faster. That's a great point. Well, you know, lots of firms see that per-use price drop, while the overall bill on things tends to still go up. Where have you seen low pricing around AI truly cut total costs?

5:23And where does it feel like smoke and mirrors? Yeah. You know, I'm getting flashbacks of the cloud computing hype in the early days. 10 years ago, more than 10 years ago, when vendors encouraged IT organizations and leaders to move to the cloud, use this, try this out. And then they were stuck with a pretty big or unexpected bill at the end of the month, at the end of the period. At the beginning of the year, when DeepMind came out as a challenger to open AI, we all in the industry learned something about an economic principle. Maybe some of us have learned about it in college and forgotten about it, but the principle is called Jevons paradox.

6:06And the idea is that as the cost for a good drops, the usage increases because it gets cheaper to use it. So people are trying it out more. They're spending more on it. We've observed that with gasoline, for example, if the price of gas drops, it's not like people stop driving or drive less. No, the opposite, right? They go on more road trips because, hey, now it's cheaper to do it. So you actually increase the cost. So I would say there are two. The same applies to AI. Just because it's getting cheaper means that more likely than not, the usage will increase. But the cost, I think we need to look at that not just as a total sum, but even on a line item level.

6:53What are we actually enabling through the use of AI? And what is the value that this creates? If you're in a creative agency or if you're in marketing, yes, indeed using AI to write copy and corporate copy in that sense is a great productivity booster. So you see some returns there. Again, if you're in HR and you're looking at some examples and some early wins, it could be things where we process resumes, where we review them, where we rank them to help recruiters get through candidates faster. Or tailor job descriptions, make sure they're free of bias or as free of bias as they can be and as inclusive as possible.

7:37So it really depends on the business function and the business area. But I think as long as we can make it tangible, you should also then measure what is that return that we expect and that we're actually seeing.

7:49Corey Noles:Yeah, that's interesting because there's kind of two things that that brings up. The first one is you sort of can become in reliance on the AI if your systems are built around it. So eventually when they do raise prices, like has happened with cloud providers, you're kind of you can be stuck with it. So you need to make sure that you're using it in an efficient way and a way that actually will, you know, create long term value. And also maybe it'd be good to have it in a place where you can actually easily swap in models in and out so that you're a lot more creative with how you're using it. You're not stuck to one provider while we're in this period where everything is cheap.

8:25Corey Noles:I just read yesterday Gemini is giving away 2.5 Pro again for free to try and get people to use it and test it out for a little while. their command line interface tool that they just released is also like free right now compared to clods which costs money clod code so that's kind of quite interesting so in relation to this the other thing i was thinking was you said uh you know okay let's use the marketing example so in a marketing example i can create cop marketing copy a lot faster does that mean that i'm now like 10xing the amount of copy that I produce like am I now like trying to mass produce the amount of copy or do I spend that time editing it that makes me worry about like let's say like people being replaced by the AI eventually right I mean you've said that your aha moment with AI came when you saw it amplify not replace human strengths so I mean what's your take on that in general and like what's a story in that realm that sort of gives you goosebumps that makes you feel like that's the direction things are going, not the replacement?

9:33Corey Noles:Or what's your stance on that? So a couple of things. Maybe first, an additional point to your earlier remarks about the cost, right? Yes, even if vendors raise the cost, so does in inflation, right? And inflation raises the labor cost as well. So as long as you're on the positive side of that equation and getting a return on investment, even an increase in vendor pricing. And I think a lot of times we actually see the opposite. Vendors dropping the price should have a positive impact on your ROI as well. Right? Yes. So then from the marketing point of view, look, if you look at your social media feed, what do you see?

10:12A lot of AI-generated posts, AI-generated comments, AI-generated engagements. if you go to YouTube you find dozens of videos about faceless content machines used APIs first of all an LLM to create a script and a story for a short video, 30 seconds then use another API to create the images use another one to animate them add some AI generated music, push it out to TikTok, get millions of views and get your revenue that way as a creator. Publish a thousand and get one Yeah. Yeah. Right. So so this is already happening. And is is the answer more faster? I don't think it is. Right. Yes. That that is a business model like, you know, like like bookmails and other examples that we've seen in the past.

11:06But just cranking out more content, I don't think adds the value that people are looking for specifically when it's either authentic content, when it's thought leadership, or even for things like marketing copy. I mean, what does it mean if we can crank out 10 times more if the quality is bad or if people see through it and say, well, you know, somebody just copied that or pasted it right out of chat GPT. so yeah we need that human element but we we should absolutely use ai to help us more

11:40Corey Noles:you know become more productive in advance and hopefully better yes yeah yeah it's sort of like we're optimizing but optimizing for what i think is the key thing you know like you've got to actually really figure out i read this or actually i think it was nate b jones i don't know if you know him he's a futurist on youtube uh he said we're moving from the intelligent economy to the judgment economy where judgment when intelligence is free judgment is what matters right yeah that's interesting you know you ask about goosebumps um so for me um many goosebumps many goosebumps moments that i that i've had over the years but the one earlier this year um for me was automating my own content workflow, going from podcast to newsletter to social media pieces to shorter snippets and so on.

12:30And from probably spending about three to four hours every week doing many of the tasks manually, I'm down to a minute and 19 seconds for the core workflow, right? And then it's another 30 minutes to review the information, right? So, but not three or four hours spending time to repurpose or refactor content. And yes, there's a lot of AI there. And personally, I believe, especially as a thought leader in this space, if you've already said this in an interview, in a podcast, the information is out there. So I personally find it's absolutely fair game to use AI to repurpose the content and summarize it and put it in different formats because it is still your own thoughts.

13:14But are you adding really something new if you are summarizing it? Not really, right? You added something unique and insightful in this conversation. So to me, that is where we might also want to draw the line between what do we use AI for? If it's for, again, generic corporate copy, there's hardly any real thought leadership in there, I would claim. But if it's you as an expert who has an opinion, much like our conversation here today, right? it doesn't feel right to use AI here to say something that sounds good, but that I am not an expert in or that I don't believe in. So I think, right, for me, that's the line.

13:53Where do you use it to automate and where do you use it to augment? Or where do I not use it at all? Well, you know, I don't ask you the workflow. I got to ask you the workflow if you give away the secret sauce. It's just so first of all, right, like in any automation, what are the steps that are really, really key to the workflow? If you do it manually, you know, there are many steps that you might go through. Are they all necessary? So cut out what is really not necessary. Then see what platforms offer APIs so you can automate it. Maybe you're working with a platform that does not offer API support to automate some of the things programmatically.

14:31Look at alternatives and then see how can you automate individual bits and pieces, right? Maybe the times or the steps that take more time are the ones where you create content, where you write something, where you summarize something. That's one that I started with using an LLM. Here's the transcript of this episode. Can you put this into a blog post? Three sections, use the same tone that we've used in this conversation, and then generate some HTML that I can put into my newsletter. And then you can go through and make it better. Yeah, exactly. True. It's really helpful for me with even this podcast, with getting research and thoughts together and making sure, you know, usually I have a basic framework, but it'll be like, put these into notes.

15:18Put this into notes, look for gaps, identify weaknesses in a discussion. What am I not asking that I should be? And more often than not, it will come up with things that I have overlooked, have not thought through, or might be a great idea or a terrible idea. You know, you want your AI to challenge your assumptions a little bit, I think. Yeah. And, you know, what you just said about the podcast applies to any business situation and interaction as well. Maybe you're preparing for a meeting or you're coming out of a meeting and you're thinking, well, I don't know if I really did so well here. or I think I did absolutely great, but how can I be even better, right?

15:56AI can become your coach there as well. If you feed it the meeting minutes, they analyze the transcript for Andreas or for Corey. What else can I improve upon? How can I make a stronger point and so on? So I think those are some of the benefits where we have this kind of intelligence at our fingertips for fractions of a cent per interaction, if you will. Yeah, yeah. And that's really awesome too, too, because, you know, it's that's kind of where I started as well with seeing what what I could automate, where I could find efficiencies, because I'm busy. I'm in a lot of meetings. I've got a lot going on.

16:34And I often I started thinking about things like I never as prepared for a meeting as I want to be like, you know, go through this and tell me what I need to know walking in the door. Give me a 30 second summary so that when I walk in, I have context. I know what's going on. I'm as up-to-date as I can be. And little things like that, it's not even about saving time. What I would say is that they make better use of my time. It means instead of going into a meeting where I haven't had that time to sit and kind of reflect and make sure I'm ready, to be able to just get that in a nickel tour is, oh, it's a lot.

17:14And, you know, previously, these kinds of briefings have been pretty exclusive to C-suite executives. Here's your briefing for the day or for the week. Here are the people you will meet with. Here are the main discussion points. Talk about this. Don't talk about that. All of a sudden, you have that personal assistant, that executive assistant at your fingertip, too. And you can get the same insights and nuggets to help you prepare better. Exactly. Big opportunity. Well, you know, on that subject, kind of to lead from there, you've interviewed a lot of AI leaders for your book, your podcast. What recurring surprise, good or bad, consistently shows up in those conversations?

17:58so you know i i started it as as a little bit of uh of therapy um to be honest uh i had been in an ai leadership role leading a large center of excellence doing this for the first time in my career and also what it felt like for the first time at the company and the company the size of sap um is is quite significant and pretty big so you know for for me the the intent first of all to start the podcast was to learn from others how are they doing it right there was three four years ago when there was not a lot of information about AI, not a lot of information about how are people actually doing this out there, unlike today.

18:34So through these interviews by now, coming close to 100 interviews over the years, there are two things for me that stand out. First of all, it's always about people. It's very, very rarely about technology. Technology does play a role. That's why we're talking about AI. But at the end of the day is how do people work with that technology? How is technology introduced to them, to the business? How does work change? How open are they to change? Or how resistant? Why are they resisting it? Well, there are usually some fears that whatever you've done up until this point and how you've worked is going to change radically.

19:12And it changes also a good amount of your own identity. I've always done it this way. I'm comfortable. I'm confident. I'm competent in this role. And now I need to relearn this. And by the way, I think it's never been a greater challenge and a greater opportunity at the same time than right now because of all these things that generative AI, agentic AI allow us to do. So increasing levels of autonomy, increasing levels of automation in routine work. Now also more complex tasks, right? No longer just if this happens, then do that. But definitely where it's more uncertain, where there's more variance in the information.

19:51So a great time to look at this in this space. but also an important factor, again, to make sure your team members, your people, are aware of what are you doing, why are you doing it, how will it help them, how will it positively affect them, what is the change that we expect. So people is number one. Number two, it always comes back to data. Anything with AI, you always want and need to have data. Early on when ChatGPT came out, vast parts of the industry were super excited, right? all of a sudden everything is in this model, in ChatGPT as a tool, or in Cloud, in Gemini, and what have you. But people realize very, very quickly that the results are pretty generic.

20:33Even with good prompt engineering, if the model hasn't seen your industry or company-specific data, it will not be able to generate it the way that your employees can and the way that it needs to be generated or put into context. So we realized very quickly we need to feed data to these models, augment the prompts, things like retrieval augmented generation, as one mean, or give agents tools, give agents access to specific data sources so we can make that specific. And data is never as clean, as good, as complete, as fresh, as accurate as you want or need it to be. Because most of the time, it's data observed in the real world through real life interactions of people with your company.

21:14Think of customers or people within the company, within departments and what have you. So focus on people, make sure you bring them along on this transformation journey. And number two, focus on data so you get real good quality specific results for your business. Do you think that creates a value in that need for more context and the context that a model is specifically missing? Do you think that's pretty vital? Absolutely, right? Otherwise, you'll get the generic job description, if you will, for a podcast host or for a show writer. Unless it's specific to the company or to the show or, again, whatever situation you have, it's going to be that same bland generic output that is not wrong, but it's also not great.

22:09Yeah. And that's where connectors come in, I would suppose, with regard to with OpenAI or Google or Gemini or Claude, any of those. I think it having the ability to query your company might be really valuable. Exactly. So you see large enterprise software companies make a play and make a push in these directions. For example, Salesforce recently acquired Informatica. That's a big data, a huge data play, not just a big data play. You're seeing others like SAP making similar moves, saying, here we have applications, we have data, and we bring that to AI. So funny enough, right? It goes full circle from AI.

22:55it goes back to data. How can we bring in data to the environment? How can you use the data you already have to augment what we want these models to do?

23:04Corey Noles:I read an article yesterday that was basically, there is no new ideas in AI, there's just new data sets. Did you read that one? I haven't read that one yet, but sounds like it's not too far off. Yeah, they go through the whole timeline. It's pretty great where they talk about how, It started with language and the internet, and then it goes to now they're at video and making world models and trying to use video to train AI. It's pretty interesting. I always thought that, or something I keep going back to, is that I think there's going to be some real leverage for Google and for Tesla in terms of traveling around with cars that are mapping the world around them in a lot of ways.

23:50I feel like those are data points that, while they exist, I feel like there's something different that type of data could bring to the table that's maybe not there today. Yeah, I mean, models, multimodal models can recognize lots of things in images, right? So the biggest hurdle has always been acquiring data, having enough data, having enough, again, good data or labeled data. Now, if you can use models to label your data and review and correct it, and again, with minimal human supervision, make sure you get a good data set. To your point, I'm sure companies like Tesla and Google are sitting on a huge gold mine.

24:35I also wouldn't be surprised if they're thinking about how to tap into it. Yeah, same. And I guess I should have said XAI. I would agree to Tesla.

24:44Corey Noles:Eventually they'll merge, right? But, you know, then you've got Meta who, while they're not at the top of the game right now, they are sitting on a mountain of individual user data on feelings and what people do. And I think leveraging that's going to be interesting. And you're seeing companies already that are, you know, adjusting their privacy policies and things like that to make sure they have ways to tap into these things, I believe. Yeah. Meta, for example, right, a couple of days ago announced that they are using AI or are going to use AI for ad creation. Yeah. Creative campaigns, right, and targeting what should the ads look like.

25:29And I know to folks in this creative space, ad space, paid social media space, that's worrisome, right? All of a sudden, big players like Meta wouldn't be surprised if Google is doing something similar. You know, they're coming in, they're using technology. they will likely be at least as efficient as we are, as people. So how is our field going to change? So we're seeing a lot of these conversations, not just in finance and HR and procurement, but even industries that I would say 10 years ago, 20 years ago, were a lot more on the cutting edge. They were the new things. Those were the new tasks.

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26:05How do you place ads on Facebook and Twitter and so on, and how do you optimize campaigns? Well, now we have enough data, to your point. So it's highly likely that an AI model can make at least as good predictions and assumptions as people can do. So where does that leave us? Where do our human traits fit in? And I would say a lot of times there, it's then about the human connection. It's the relationship with the brand, the relationship with the person on the other side. Understanding what does our customer, our consumer actually want and need. and maybe going through these different options that AI might give you.

26:45That experiential knowledge that, like, I know what it feels like to buy a new gadget and be excited about it. Yes. That's a thing that's really going to be hard to capture at the data level, I would think.

26:54Corey Noles:Or I know the feeling that makes me, you know, prefer Mac, you know, for example, over PC. I know how Mac makes me feel, and I know how Mac makes other people feel, so that's what I'm trying to capture that. And how it feels to watch an LLM do something that I do really well, better than me on occasion. But at what point if we're relying on AI, for example, in Meta, like Meta's AI is now making the ads for us, at what point does that degrade brand trust, to your point about brand? How do you find that line? I think it will erode trust when it goes sideways. The second there is a fully automated process that goes wrong one time.

27:40Even if it's one out of a hundred, one out of a million, it's the one time that counts. So how do you mitigate for that one time that it might not go right? So I think a lot of times we need to have humans in the loop. What was it, last year, two years ago, Apple released a short commercial, I think it was about the iPad, that created a big controversy.

28:05Corey Noles:Oh, the Squish? Yeah. Yeah. All I remember was the beautiful guitar that got smushed. So, right. And I'm sure there were people that were reviewing this. But again, there too, we need to pay attention to how is this being received by different people, different parts of the population, different parts of our consumers, different regions and so on. Nothing there changes. But something you mentioned about what does it feel. So I teach management information systems to undergrads at a local university. And in one of the modules, we talk about augmented reality. And by the way, one company that I think does that pretty, pretty well is IKEA.

28:49So everybody has probably been to an IKEA store or has an idea of what IKEA as a furniture store is. And I show my students this example in the IKEA app. look, here's a chair and you can switch it from gray to red to yellow and you can turn and you make it bigger and smaller. Now, would you buy this chair just based on the AR experience? And most of the students say, no, I wouldn't. I say, well, why wouldn't you? It's tech. It's cool. You can see it in your space. You can check out right there. You can have it delivered to your door. Like, yeah, I want to sit in the chair. I want to see how comfortable it is.

29:22Is it hard? Is it soft? What does it feel like? So to me, these experiences, what does it feel like AI cannot replace, right? Those are the decisions we want to make because at the end of the day, AI is not going to sit in the chair. I'm going to sit there. So it needs to feel right for me. Yes, technology can help if you're out to like red or yellow or gray or some other color. But, you know, that's also, by the way, where I think the online, offline retail still has a leg up if you can do both really, really well. I think so too. What it can do is get me to go to the store and sit in the chair.

29:57Corey Noles:But there is a value to seeing it, but it's one of many touch points. It's not the sole touch point, I think, is the kicker there. Yeah. And by the way, I think that's why car dealerships still offer test drives. Yeah. Yeah. So, again, physical, in-person experience, I think that's at least for now where we see a lot of the value. Again, AI can help us make informed decisions, give us more context. But at some point, it's the human-to-human or human-to-physical object interaction that still wins. So you teach about agentic AI and systems that act for us. Does adding autonomy boost the upside of AI or does it multiply the risk?

30:49Both. Both. I thought that might be coming. Checks out. Yes. Our answer is yes. So, you know, cheaper or prices is only one dimension. And yes, in business and towards our stakeholders, we oftentimes look at how can we reduce cost? And we also look at how can we at least maintain the same level of quality or even improve that? How can we maintain or improve customer satisfaction? How can we sell more? How can we do that faster? So price is only one. And a lot of times I like to think about this as the ion triangle of project management. Time, cost, quality. It's very, very hard to optimize all three.

31:38I would say it's impossible. So yes, price is certainly one part. But how do you ensure that the output that is generated is relevant, is of high quality, is something that's usable, is something that you would confidently give to your end user or to your end customer. I think there we need to spend a lot of time and diligence, and I'm actually seeing large enterprises go in that direction and think about the governance. How do we make sure that agents, for example, only have access to the systems and data that they need to have access to? So we don't expose data that is not intended for this person maybe in a call center or this customer to see.

32:19So quality, security, super, super important. It multiplies the risks if we're not doing that right. Otherwise, then it's just bad decisions faster. Which is not good. I wonder if some type of data segregation or on-demand access that isn't constant could play a role in that in the future because it's a really interesting line you have to balance there between what we want it to have and what it has in order to be able to access this information because usually that access extends further. So I've recently had some really, really insightful conversations with security experts, cybersecurity experts, and I recommend anybody to check out the OWASP top 10 for large language models.

33:14I think they're working something for agentic AI as well. OWASP is an independent organization. And, you know, seeing what some of those recommendations are that security professionals make and give you, it's very, very insightful because you also learn what are the things that could go wrong. So how can we mitigate for those from the get-go as we develop systems, as we architect new applications? how do you make sure that, for example, principles like zero trust are embedded from the very beginning? We don't trust any piece of the architecture more than we need to or at all. So same with limiting access to data on a need-to-know basis.

33:54What do you really need as an agent to do that task? And some of those core principles that the domain has developed over the last 20, 30 years of the internet cloud and so on, And now with AI and agentic AI, to me, that's a very important starting point. Because at the end of the day, it's not just about price and getting a good result to the customer. It's also making sure from IT, from a governance, from a security point of view, that we're actually safe and sound and secure in the way that we run this. Even a legal perspective, if you're in, say, healthcare or education, maybe, you know, where certain data is protected.

34:35Absolutely. So to me, it's super encouraging to see that there's so much activity in that space and people are figuring out what other things that we need to know and what guidance can we give to others.

34:48Corey Noles:right i guess like on that same subject so the one thing that satya nadella talks a lot about is he'll say um you know the other thing we need to figure out is the the i forget the exact term he uses but essentially governance of it so like right now if you or i were to create an autonomous system that goes out in the world the ai has no liability i have the liability you have the liability so figuring out like basically like who who is liable for what an agent does is a big part of this. And I think something Microsoft, as a huge company, thinks about a lot. Yeah, I think that's super important as we delegate more agency to software.

35:26Today, if you delegate agency, you might delegate it to your attorney or to your tax advisor to prepare this for you and file it on your behalf. So it's pretty clear, on one hand, what those guardrails are, it's for this specific consultation or it's for this specific tax return or tax question, and also the power of attorney, if you will, that you grant to that other person, that agency that you give that other person is very well defined too. Yes, they may file your tax return, but they cannot access your HIPAA-protected health care information or they cannot buy a car on your behalf. So in many respects, those principles, I think, need to apply here as well.

36:13But then, to me, any system has an owner. So who is that owner of this system, of these agents, of these swarms of agents at some point, if you will? And to me, that's where the liability comes in. Yes, you're delegating agency to software now, but in my view, you're still responsible for those results because you are setting this piece of software free in the world and are unleashing it. I'd say it's probably the same principle that applies if you own a trucking company and you own a truck and you hire a driver and send them out into the world in that and a problem happens. That's your problem for not taking good care of your truck, for not doing essential maintenance for not you know keeping it licensed and inspected and insured and making sure which which probably just came up with four new industries that'll find a way to circle in here i'm sure uh your ai insurance yeah that's funny um i guess like so like this this the when

37:19Corey Noles:prices drop on ai it increases the scale with which we can deploy it so that's where sort of like obviously liability scales with with when you're sending out a ton of agents on your behalf but shifting it a little bit more back to, I guess, like the human here. So what human skills in a world where you can scale jump in value? Like where should companies invest in upskilling as opposed to, you know, offloading? Like if we're saying that's the right way to go about things. So just the other day, I had a conversation with an AI leader at a nonprofit and I asked them the same question. And the answer was super insightful because he said, look, yes, we can use AI to help us figure out who are the optimal donors, who is likely going to make a gift and to whom and what amount.

38:11But at the end of the day, it must not feel transactional, right? The second it feels transactional, you're not as valued as a person. You don't feel as valued as a person. And you're very likely not going to make another donation to the same foundation or through the same organization again. And to me, that was very insightful because in business as well, we have the same situation. There's been this old or longstanding saying, sales is people doing business with people. And I think that, again, holds true. Yes, there are ways where we can augment or maybe partially automate tasks like business development, initial outreach, cold outreach, sending personalized messages, and so on.

38:57but for especially large transactions complex transactions complex sales cycles we want and we need to have a person there to build that trust with the customer here's what we can do for you we're also here to listen what are the pain points you have where are things not going so well if you need somebody to escalate that to I'm not giving you a 1-800 number I'm giving you my cell number and I will help you fix this or get this fixed for you so the personal relationship to me is something that we must not automate and then we must not automate away. I agree. So the other part to me is that everyone will eventually become a leader, whether you lead people and you have responsibility there or you lead systems or systems of agents, if you will.

39:46And having gone through several iterations of leadership training in my corporate career with increasing responsibility, it starts with how do you lead a team? How do you manage a team? How do you manage teams and teams of teams? Yeah. And what was constant in all these trainings was how do you also communicate and how do you delegate? So as a leader, it's super important to delegate. You need to convey what is the goal that I want you to achieve? What information is available? What else do you need to acquire? Who should you work with? What does good look like? And what's the time frame in which I would like you to complete this?

40:25Yeah. Now, as individual contributors, some of those things might be intuitive. Some of those things might not be as structured. So we might not think of all these five things. And if we don't, then probably the results are not as good as they could be or not what we expect. We see this in very simple terms now coming back to AI. When you submit a prompt, write a, again, job description for a podcast host. Yeah, sure. Right. It can do that perfectly well. reads like a job description, doesn't say anything about our show here, doesn't say anything about your previous experience, you know, things like that.

41:06So that's where, again, being able to delegate. Now also, as we increase the level of autonomy in these systems, gets super, super important. And communication, being able to articulate it. So interpersonal relationships, communication, and being able to delegate. To me, those are the three key skills we need to teach more so that humans can work with the software in the optimal way. I think the only thing I would add into that list is that I really think the ability to critically think is going to be a little extra important compared to where we have been. And largely because I think that's an element where there will be some struggles and the ability to not just use AI, but to understand how it fits into the puzzle and be able to really problem-solve your way through some of what's around the corner.

42:04That's great stuff, though. I think it's already tough, or it was already tough before generative AI, you could argue. It sure was. It's only exacerbating that, I would say, They were highlighting the need for it even more. And it's tough, right? If you delegate too much to AI of research, synthesis of information, critical thinking, and you just accept the results as gospel, it gets really, really hard to build and maintain that critical thinking muscle in a sense. so you know there have been studies around this topic of over-reliance on AI recently there were some coming out what was it called your brain on chat GPT or something yeah we covered that right so that's a good one to see and what was it a couple a couple days ago I think I read something about this this past cohort or year of students graduating you know how much have students actually learned and retained over the last two years since the emergence of generative AI?

43:16Or are they just getting a degree and they're actually not as knowledgeable as you would want them to be or need them to be in a business? And, you know, certainly what applies to early in career individuals applies all the way up the chain too, as that risk increases. So long story short to your point, right? Critical thinking is really, really important as well. And it's a matter of how do you actually train this now and how can you train for critical thinking and evaluate? Is something good, bad, or just okay? Yeah, that's a good question. And I think it just leads us well into governance too, because, you know, just like in other ways, governance costs money.

44:00What would you say is the minimum viable set of guardrails that any organization needs right now so savings aren't wiped out by scandals from AI use across the way? So I usually like to think about it in three dimensions. One is, what's a basic level, a foundational level of awareness of AI, generative AI, agentic AI, what have you? How does this work? The most important things to me are the technology is great, very powerful and mighty, but it's not infallible. We've seen this time and time again. Also, there's bias in the data that these models are trained with that trickles down to the results, to the outputs that you generate.

44:48So we need to check for those biases as well. And it's not just gender or ethnic biases. It can also be about professions and many other assumptions, right? It's probably as biased as we as a society and even as individual people are with the worldviews and the data that encodes our worldviews. So foundational understanding. Second one to me is the security and access that we already talked about. What do these systems really need to have access to and what are they allowed to do with the information? Is it just processing? Are they wrangling the data and writing it back? Are they making decisions?

45:31And then the third one is then on a technical level, right? We've seen this with prompt engineering in guardrails, for example. You're only allowed to do this. Don't do that. Or if you receive a question to which you don't have the answer, be honest. Say that that's not part of your scope or you cannot answer this or point to a different resource. So foundational, people enable training type things. Two, security. And then number three, technical mitigations as you're using these tools. That's a good call out. Really good call out.

46:07Corey Noles:Yeah, that becomes a bigger deal with like a Gentic AI where you're letting the AI make the decisions for you as part of the process and incorporating the tool use. So when can you use tools? When can you not use tools? What tools can you use when? that's all part of that equation. And you know, I'm still somewhat on the fence there if natural language is really the best way to give instructions. So I would say for a good reason, right? We've had programming languages for decades. If this happens, then do that. And it's very clear and very explicit. If your program runs into an error, you can trace it.

46:48You can say, okay, you know, this variable has this value, hence it doesn't move forward or it throws an exception. Now, if we move to agents and agents give other agents instructions based on natural language. I mean, we've all played whisper down the lane. Yeah. You start with one thing, you end up with something totally different. I think that is a real and not to be underestimated risk. Yeah. As more and more agents converse with each other, check each other's output, give feedback and so on. And coming back to security, right? Even a malintent of one agent instructing another one to do something that they're not supposed to, right?

47:29Or go off the rails or, well, you know, it's perfectly fine. This is an exception. This is just one time, right? So, you know, just thinking about the social engineering of people applied to technology, I think it's something that we just need to have on the radar as well. and just think about as we build these architectures and systems. That's a good call.

47:55Corey Noles:So let's just lightning round through a couple of these last questions. So let's say like falling model costs, right? We've established that DeepSeek is free open source AI. Obviously, it's not free to host it yourself, but you can technically download it and run it at a certain cost, depending on where you host it. a lot of the cloud providers are lowering costs. It's this sort of shift to the bottom. How do we, in terms of price, how do we who are using it stay competitive or become more competitive without also bringing all of our costs down because of the cost of intelligence going down? So intelligence is just one factor of your equation, I would say.

48:40Whatever service or product you provide, there's a whole lot more to it, I would hope, than a wrapper around an LLM. If that's your business model, you might be in trouble with the next upgrade you want to spend or make. We've seen this with PDF wrappers and chat with your PDF type things. And all of a sudden, it's a standard functionality and one of the tools we use on a regular basis. So please don't build an LLM wrapper. You need to have some moat of your own and some secret sauce and expertise. And I think it's that secret sauce and expertise that makes your business unique. And that's what customers come to you and pay you for.

49:16Whether you use an LLM or an LLM by OpenAI or Anthropic or Google or what have you, it doesn't really matter so much. So what is the value that you create? And to me, that opens up a whole new opportunity around what business model might you want to create in addition to what you have or to replace what you have to evolve. And there we're seeing the first companies move into something called outcome-based models. So companies like Intercom that do customer service or I think Sendesk was another one in that space, they are moving to outcome-based models. So instead of saying you pay per user in your customer contact center or you pay per ticket, you pay per successful resolution.

50:02Super awesome, right? All of a sudden you have a direct metric that your customer is looking at anyways. what is our success rate and maybe even what is our customer satisfaction rate. And you only pay per successful resolution. Now, from a vendor point of view, that creates a challenge too, because what is considered a successful resolution and how do you get that agreement with your economic buyer that this was really successful? Because the challenge you might run into is that your buyer, that your customer says, well, this one wasn't quite right, so we're not going to pay for this one. And by the way, there were 10 others like that or 100 others like that in the past month or in the last quarter.

50:41So no, no, no, no, no. We need to take them out. All of a sudden, yes, you have delivered value and you're incentivized to improve your product and your model so you can deliver outcome-based pricing. But again, the human element that comes into play. So outcome-based pricing to me is a big opportunity now that we can delegate more to AI, that there's more automation, that there's more autonomy and overall more intelligence in the process.

51:08Corey Noles:I see outcome-based pricing is kind of like the switch from the deterministic code to probabilistic language. It's sort of the same. It's like deterministic. You pay for 200 API calls or whatever it is. And now it's more in this nebulous range, which is better but harder to track. Yeah. And from a vendor point of view, right, if this idea holds true that there might be fewer people interacting with the system because you can automate more or not everybody needs to have a license or a user for a specific tool, then how do you monetize it? How do you, at a minimum, make the same revenue or even better increase it?

51:50And again, that's where I think something like outcome-based can be a fair model and something that can propel software vendors into the next era. And it basically shifts a lot of the risk back to the vendor instead of the consumer. Absolutely, right? Ideally, that helps reduce the amount of shelfware products that somebody has bought, but they're not using it or they're not using them yet or not using as much as they've paid for. So you only pay for what you use. And to your point, from a vendor perspective, you need to make sure that your products work really, really well and ideally outperform the competition so that your customers stay with you or, first of all, come to you.

52:31Yeah, because now you're shouldering the burden and cost of a dud. Exactly. We've been there before in the industry and it used to be called business process outsourcing. So in a similar model, I envision that we're going to see this as well.

52:52so in your nine-step ai readiness framework you stress clear kpis what two or three productivity metrics in your opinion cut through vanity stats to show some real gains so we're back at productivity um we made it back to productivity it all comes back to product oh So I would say don't just look at productivity. Let me answer it this way. I would say look at what are your macro level KPIs. Where do we want to be three years from now? How do we measure that? Is it more revenue? Is it lower cost? Is it increased customer satisfaction? And then derived from that, what is the KPI tree? What are the supporting KPIs underneath that would help us create more revenue, reduce costs, get higher customer satisfaction?

53:42But the important thing is to tie it to a KPI that you can measure before and after so you can show the effect. Not just happier employees, not just saving a minute on an email or two minutes or something. That's nice. But what I hear from a lot of CEOs is I cannot really measure the productivity gain or it doesn't translate into something else. It's not hard dollars. It's not, again, increased sales, reduced cost. So look for those use cases, those scenarios where you can tie it to at least one of those two. Those seem to be the more promising ones to measure the impact. And again, build momentum and sustain momentum as you go along.

54:23As opposed to the more qualitative, squishy numbers that are... Yeah. Yeah. Look, we've had these aspirations of fewer clicks, happier employees for at least the last 10 years in the machine learning AI, Gen AI domain. And they're good. Yes, we want happier employees. Yes, we want fewer clicks and increased efficiency. But unless you can really measure it, it gets really, really hard to argue why this is the right solution, the right product, the right feature, the right use case to pursue and to move forward with. So hard dollars is what usually wins. Makes sense to me.

55:02Corey Noles:I have one last question before we get to the end here. And if anything else Corey wants to ask, But I guess, do you have any like specific tools that you recommend, if any come to mind? If not, that's totally fine. But when I hear about a lot of this stuff, I always try to think about, OK, so what is the actual like we talked about a little bit about your workflow? What is the actual process or tools that companies can use to do some of this? So it's a very broad question. It depends on where you are in your business, what your function is, what business function you're in to begin with. But I think generally you can look at simple things like note taking, whether it's built into your productivity suite that you use on a regular basis or some alternatives that can help, again, summarize what are the key things that we talked about.

55:54Can you send me the action items or send them out to all the participants so we have something to work on until the next time we come back? If you're in sales, there are lots of products augmenting go-to-market. So it could be the contact enrichment, lead enrichment with the help of AI, doing prospecting and outreach with AI agents. There are a dozen startups in that space as well. Some of the earlier ones were around marketing and copy, blog posts, websites, white papers, reports, these kind of things. it really depends where you are. If you are a little tech savvy or have an affinity for technology, workflow tools like Zapier, like N8N, make.com, to me, they're really, really great because it's visual, it's low code, no code.

56:46You can drag and drop items. You can connect them. You can connect your LLM. You can build a workflow and still have some AI there, but you don't have to be a trained statistician or a mathematician. You don't have to be a software engineer, but you can already experiment with it and feel it. And you can see what is possible when you bring AI to that workflow. And again, maybe it helps you cut down your workflow from four hours to 31 minutes and 19 seconds as well. I would hope so, right? But the cool thing that this enables you to do then as well is think about what am I doing? What am I doing repetitively?

57:25Do I really need all these steps? and what can I cut out and of that what remains, what is really core, what can I automate and how can I automate that? And whether that is your workflow going from a podcast to newsletter to social posts or something in your finance department, HR department, procurement department, wherever you are, the same basic principle applies as well. Yeah, tackle the thing you like the least. What's the one thing that just drains your soul a little bit every time you have to waste three hours doing it or it feels wasteful you know exactly so i i have a fun question i want to ask real quick um suppose it's 2040 some you know some teenager or someone wanders across this episode what do you hope they'll say that we got right and what do you think they're most likely you to laugh about the way we talk about AI today?

58:25So, I would say to me, it's similar probably to how we think about electricity these days. It's there, it works, but it's enabled innovation vastly and far beyond what people envisioned 100 years ago. What could be possible, whether it's powering factories or just having light in your house? look we have computers that were enabled by electricity that are powered by electricity we have so much more in innovation and i think at a minimum we'll see that too so we're underestimating today what will be possible and what we'll see over the next 15-20 years similar to electricity i also think everyone should have access to ai i agree and hopefully that is the case over the next 15, 20 years, that it will premier society even more and will be accessible by pretty much everyone.

59:23But then I would say also, similar to electricity, from a very early age, we learn what not to do with electricity, right? What not to put into your power socket. No forks. So I would hope that over the next 15, 20 years, we're doing a good job at educating our youth as well on what do you do with electricity and what do you not do with electricity. Very, very early, right? If you learn this when you're 30, you've probably been shocked a couple of times. So teach it early and make sure it sticks. um what what did we get wrong um or what are we getting wrong now uh that uh looking back in in 2040 people will laugh at such a hard question um to me that that is underestimating right maybe people in in 2040 will will laugh about the fact that we use this just to write emails what do you mean people are writing emails right what's it all yeah that's such a great call out so so hopefully on a more social and beneficial side, we will use the technology to solve some of the biggest challenges that we see in the world today.

1:00:41On a more personal side, maybe we will change the way that entertainment works, hyper-personalized experiences, Netflix in your AR, VR glasses, split-second changes of scripts and scenes and whatever. those things are already there I don't think it'll take 15 years to develop, probably 15 years for it to become a huge mass market and time to get good yeah, exactly and beyond 3 second and 5 second snippets but the fact that we're already there I think is so exciting so those are some of the things that I would see again, we're underestimating what it can really do and what it will do. But again, we need to teach the basics of the do's and don'ts so we can prepare for that future that, you know, helps us all prosper.

1:01:35I always wonder how long it will be before someone asks the question, did you really let humans read your x-rays? Like, that's a subject that keeps coming up and I keep seeing in studies. Like, you know, I think that'll be an interesting topic going forward in medicine, in finance, in, I guess, in just about everything, probably. And what do you mean you had meetings that could have been an email or that could have been an avatar conversation? You got together for an hour, six people, and talked about that? Really? What a waste of your time. Exactly. Five minutes and our avatars hashed it out.

1:02:21Now, you know, is that the future we want to create and we want to live in? That's a different story. But, you know, looking at how things are working in recruiting at the moment, right? Resume ranking to help recruiters sift through hundreds of resumes is great. On the other side, if you're an applicant, if you're filtered out by an AI system without any feedback, without an opportunity to get transparency or appeal or even stand out, it's really, really hard. It is. Right? And then using AI to tweak your resume to fit the job description so your chances increase to stand out by another AI that filters you out.

1:03:04Corey Noles:It forces everything back into a closed network system where essentially you can only trust people who you personally know and vouch for. And it makes it actually more of a closed society. Right. So quite the opposite from creating a more equitable and fairer process and fairer opportunities. On one hand, it's relationship based. Or again, you need to invite candidates to come to the office to see if they even exist or if they're an avatar and to test their skills. And what do you test for? Right. So take the AI away, draw on a on a whiteboard. How would you do that? Right. Walk me through this situation.

1:03:41How have you done that type things, behavioral interviews? Yeah. Again, coming back to the human element, I think the human element is going to be a much, much bigger factor and a much more important factor than it already is today.

1:03:55Corey Noles:hopefully in an even better way go ahead what what if it got to the point where an agent who observes you all the time is the one applying to jobs for you and vouching for you and everyone has like the same kind of system so they can all trust this system's review of you and you know the agent says hey here's my here's my candidate it's sort of like your actual agent like in hollywood right like vouching for you and saying this is this guy's skills this is this person's skill they're really good at this so you should consider them for this job i've seen them i've been watching them over the past 10 years so i know how good they are yeah it might also be a sequel to 1984 call it 2025 yeah 2025 oh my gosh what a neat call there's there's a good book in there somewhere there's there's definitely a good movie yes yes well andreas would you mind uh tell Tell us a little bit about your show.

1:04:54I want to talk about your show. I want to talk about your book because I've really enjoyed what we've hit on in both. Awesome. Sure. So, look, about three years ago, I started a live stream and podcast called What's the Buzz? AI in Business. So far, I've interviewed more than 100 AI leaders on how they have brought AI into their organization and turned Technology Hive into business outcomes. And to me, those are some of the most exciting and most insightful conversations because they're raw, they're unfiltered. There were people doing this work on a daily basis. And that was one of the big reasons for me to start the show, to hear from others in the industry, how are they doing it?

1:05:31How are they succeeding? Where have they failed? What would they do differently? And then also, quite frankly, if I got to do it again, how would I do it differently? So What's the Buzz is a biweekly show that you'll find on LinkedIn, on YouTube, as a live stream, on any podcast platform. If you prefer audio. And I've summarized the first 60 plus interviews in the AI leadership handbook. I encourage you to check that out as well so you can learn how you can turn technology hype. We'll make sure we have a link below as well. Yes, that would be awesome. Yeah, you find me on LinkedIn. I post daily about how you can bring AI into your business.

1:06:11I've got several courses on LinkedIn learning that I already like about agentic AI, about mitigating your risks as you go through AI projects. And I'm just super excited about the opportunity getting to help many, many businesses and business leaders figure out what do we do with AI? What should our strategy be? What are the most important and promising things we should prioritize? And most of all, how can we bring our people along on this journey and also make sure that they're enabled and upskilled to thrive in that economy? I love that. And this is an area where I have, you know, Grant and I both work with AI here at our parent company, Technology Advice.

1:06:47and a number of the projects we get involved in, it's very common to come across a situation where it's like there is no information on the problem we're trying to solve. Like we're going to have to sit down and do this the old way. Like, you know, we've got to put our heads together and think critically and, you know, really kind of problem solve. And I'm enjoying that your podcast, your book, Others like you as well have kind of slowly started to surface here, whereas people are gaining experience and working through these hard problems that that they're sharing what they're learning because it's needed.

1:07:29You know, we're very fortunate to have a number of people who are very well versed and not afraid to get their hands dirty in this kind of stuff. But that's not the case at every business. You know, some places don't have that. Yeah. So, you know, if you're looking for a second opinion for some guidance, advice or even to inspire your team, please feel free to reach out to me on LinkedIn or go to intelligence-briefing.com. We'll have the link in the show notes as well. So you can connect with me and would be happy to have a conversation and help you where I can. awesome well as is kind of our little nerdy tradition here we have a kind of a round robin call question at the end that's usually a lot of fun so five years out do you expect we'll celebrate a productivity boom or regret a flood of low quality output that we have dumped onto the world.

1:08:26What should we be looking out for? So we might not even need to wait five years. Yeah. That's my answer, right? Again, look at your feed, look at the newsletters that you get, look at some of the AI-generated comments and summaries about financial statements and earnings reports and things, and you'll spot AI in many, many different places already. Most of the time, I would say it's good if it's from reputable sources. a lot of times it's pretty bland and generic. So we're seeing this AI slop. And again, by the way, quick plug, I'm working on two courses with LinkedIn Learning to help leaders give guidance to their team.

1:09:05How should we use AI? Yes, I want you to use it, but please use it responsibly and check the sources and check the information. And likewise, if you're an individual contributor, how should you use AI responsibly in business? So we don't create more AI slop. You know, already today, the internet looks nothing like it looked three years ago before ChatGPT. We're starting to see the first content generators there. And some of us were wondering, well, isn't that a downward spiral if AI creates content and learns on that content and creates more content and learns on that content? So we're seeing that creep into many, many areas of media already.

1:09:46So my recommendation would be look for authentic voices. Look for people who have the experience, who've done it before, who are sharing the experience and who you can reach out to. Real people with real experience because they can also read between the lines a lot better than AI can currently do that. Yeah. And nothing beats that. I agree. But I'm curious. What about you? You want to go grand? You want to go first or you want me to?

1:10:10Corey Noles:No. No, no. I'll go last. Okay. uh what i would say is that uh there's i think just like with everything else we do you know i always lean toward content because i've worked in publishing for so many years but in any field i mean let's go back to the 1970s when mass production really really kind of ramped up it was like like okay we figured out how to mass produce just about everything and and the quality of stuff went down and I'm going to mention guitars because that's a subject I know well and when you look at 70s era Gibsons there are lots of changes that were made specifically to cut costs a little bit here and make changes a little here and yes some of those are awful but not all of them you know so I think we're going to be looking at something a lot like that where yeah there's going to be some bad stuff out there but there's always been some garbage out there it's not an idea that's new uh what i hope we'll also see is a shift away from ai as a thing that needs to be caught or detected in favor of the idea that something is either good or it's bad and and and none of the rest really matters that the rest is just noise either either either this thing is good or it is not good, regardless of how many M dashes and semicolons it might happen to have in its toolbox.

1:11:42I, uh, I really feel like there's going to be a difference there, but yeah, I think we'll definitely look back and be like, Oh, I remember those days on some things like, uh, you know, we're going to look back at a lot of three-fingered early Dolly photos. We're going to look at, uh, you know, uh, early attempts at social media with AI that are going to be really cringy and bad. But truth is, they're probably all going to be cringy and bad. So we may not be able to notice the difference as time goes. But I think that's all of my take. What about you, Grant?

1:12:15Corey Noles:Oh, gosh. Well, so one data point I want to share. So Gartner released a report recently, you might have seen it, that was like 40 % of all agent tests that are happening right now will probably be canceled by 2027. And I think the thinking goes that because like right now it's very early prototype, very experimental stuff to a lot of the points that you brought up, Andreas, like there's reasons where like, you know, when there's one agent talking to another agent, a lot gets lost in translation and the failure rate spikes pretty quickly. So I think it's probably going to be more like a 10-year horizon for productivity to boom in the agent era.

1:12:57Corey Noles:I think we've already kind of seen a lot of the gains of the generative AI initial wave. But I think whether it's a boom or a flood of low quality output depends on the economic picture, like how many people have access to it, how many people are producing low quality at scale. and if companies are so productive that they're now doing layoffs and how that impacts the economy, whatever else is going on in the economy, that could impact how much you're producing too. Yeah, it might be that in 10 years we don't look back on weak blog posts and lousy social media. It might be that we're looking back on something entirely different.

1:13:42Who knows? And about the Gartner factoid, right? Six, seven years ago, Gartner said about 80 to 85 % of AI projects don't deliver the value they initially intend to create. So 40 % of failing is great. That means 60 % are successful, a lot better than 15 or 20 % of AI projects. That's a really good counterfactual. Yeah, it is. But we also see a lot of times this traditional hype cycle, right? So now we have vendors who have been adding AI, agentic AI into their products. It's new for them. Yes, they are marketing it. Yes, there is an opportunity. But it's up to the customer to introduce that and implement that in their business and figure out how does work change if all of a sudden I have this agent, this AI thing that I can delegate to that can do certain things on my behalf.

1:14:32A lot of times we see a lot of optimism around this technology, what it will be able to do. It doesn't matter if it's agentic or generative or machine learning or what have you. So it takes human experimentation and experience to see what actually works and what makes sense in our business. So the promises, the expectations we have, yes, they're huge. They're hugely inflated. But I think that's also good, right? Because we are venturing into this and we are looking to explore and to experiment and to figure out what actually makes sense. And that's a deeply human process that will take time and where we will also sort out what works and what doesn't.

1:15:11Are you on the 40 % or are you on the 60 % side? So to me, business as usual. Yeah. And, you know, I always joke about this, but in baseball, you know, if you get a hit three and a half times out of 10, you know, you go to the Hall of Fame. You make millions of dollars a year for failing 65 % of the time. And I think that's an interesting call out. Well, everyone, if you want to dive deeper, please check out Andreas' show, What's the Buzz? Pick up his book, The AI Leadership Handbook. Links are in today's notes and everywhere you get your podcasts. Please take a moment to like, subscribe, comment.

1:15:49We'd love to get engaged in the discussion with you and talk a little more about all of this and anything else that might be going on. So Andreas, Grant, thanks so much. It's been a lot of fun today and thanks for helping us separate Bargain Bin from Bust in the world of AI. Awesome. Thank you for having me. Yeah. So to all of our listeners, stay curious. We'll see you next week on The Neuron. Farewell for now, humans.

1:16:30We'll be right back.

From the publisher

Will AI turbocharge our output—or erode our standards in the rush to automate? In this episode, strategist Andreas Welsch (ex-SAP, author of The AI Leadership Handbook) joins Corey Noles and Grant Harvey to weigh the promise of higher productivity against the peril of slipping quality. Expect plain-language insights on agentic AI, governance that scales, and the human skills and metrics that reveal whether AI is lifting the bar—or lowering it.


Guest: Andreas Welsch LinkedIn: https://www.linkedin.com/in/andreasmwelsch

AI Leadership Handbook: https://www.aileadershiphandbook.com/order

What's the BUZZ? Podcast: https://www.intelligence-briefing.com/podcast

The AI MEMO Newsletter: https://www.intelligence-briefing.com/newsletter

Work with Andreas (AI strategy, workshops, training): https://www.intelligence-briefing.com

OWASP Top 10 LLMs: https://owasp.org/www-project-top-10-for-large-language-model-applications/

There are no new ideas in AI, only new datasets: https://blog.jxmo.io/p/there-are-no-new-ideas-in-ai-only

N8N to start automating your own tasks (not a promo; this is just the best tool for the job): https://n8n.io/ or https://n8n.io/workflows for template workflows to try.

The Neuron Newsletter: https://www.theneuron.ai

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