WEBVTT - The Great Transition 0:00:19.560 --> 0:00:23.640 Hey. What's up? So I'm going to try to encapsulate 0:00:23.920 --> 0:00:26.000 a whole bunch of stuff that's going on right now 0:00:26.600 --> 0:00:30.160 and try to wrap it into a single container. It's 0:00:30.200 --> 0:00:32.920 actually very difficult to do because there's so much change, 0:00:32.920 --> 0:00:37.120 as everyone knows, and things are just getting crazier, like 0:00:37.159 --> 0:00:41.120 every single week. Every single day almost. And I've noticed 0:00:41.120 --> 0:00:43.640 like a whole bunch of different transitions happening at the 0:00:43.640 --> 0:00:46.480 same time. So I call it the Great Transition. It's 0:00:46.480 --> 0:00:49.120 really a whole bunch of smaller transitions, but I think 0:00:49.159 --> 0:00:51.480 they kind of have a theme and they have a direction, 0:00:51.480 --> 0:00:55.160 and I think I know roughly where they're going. So 0:00:55.400 --> 0:00:57.160 what I want to try to give you is something 0:00:57.160 --> 0:01:00.240 where if you watch this whole thing and you think 0:01:00.240 --> 0:01:03.160 about all these ideas and you just let them stew, 0:01:03.680 --> 0:01:07.720 I think the news that comes out over the next weeks, months, 0:01:07.720 --> 0:01:09.999 even years is just going to make a lot more 0:01:10.000 --> 0:01:13.720 sense because you can kind of put it into this container, 0:01:13.720 --> 0:01:17.900 this mental model of thinking about things. So I'm just 0:01:17.900 --> 0:01:20.700 going to jump through these and uh, they're going to 0:01:20.700 --> 0:01:22.660 jump around quite a bit because there are different topics 0:01:22.660 --> 0:01:24.860 we got like personal we got like corporate and stuff 0:01:24.860 --> 0:01:28.220 like that. So let's just jump into it. All right. 0:01:28.220 --> 0:01:33.140 So the first one is this concept of knowledge going 0:01:33.140 --> 0:01:38.780 from private to public okay. This is really, really important. 0:01:39.100 --> 0:01:41.179 So there are a few different things that are making 0:01:41.180 --> 0:01:45.580 this happen. One is just LMS in general AI in general. 0:01:45.580 --> 0:01:49.140 Right now the concept is that it consumes all the 0:01:49.140 --> 0:01:51.820 stuff from the internet or whatever, right? All the books, 0:01:51.820 --> 0:01:57.620 all the blogs, whatever forum conversations, like all this training 0:01:57.620 --> 0:02:02.180 that's been done on these models going back to 2022 actually, 0:02:02.180 --> 0:02:06.140 before that. But anyway, all that sort of condenses into 0:02:06.140 --> 0:02:08.500 a model. Right. So you have this model that's kind 0:02:08.500 --> 0:02:12.740 of representative of like all this knowledge. Right? Everybody knows that. 0:02:12.740 --> 0:02:17.230 That's kind of understood What's not so much understood. Is 0:02:17.230 --> 0:02:22.150 that what this is actually doing to knowledge work? So 0:02:22.190 --> 0:02:26.430 in the past, right. You know, going back ten, 20, 30, 0:02:26.470 --> 0:02:31.790 50 years, if you were an expert in something, you 0:02:31.829 --> 0:02:34.709 have knowledge that no one else has, right? You have 0:02:34.710 --> 0:02:37.190 knowledge that no one else has. If you are a 0:02:37.190 --> 0:02:41.469 specialist consultant at McKinsey, or you are a heart doctor 0:02:41.630 --> 0:02:45.310 or whatever you are, you have special knowledge and you 0:02:45.310 --> 0:02:48.830 haven't captured even a 10th of it. Let's say you've 0:02:48.829 --> 0:02:51.310 written two books. You still haven't captured a 10th of 0:02:51.310 --> 0:02:55.790 your knowledge, right? You just know things that other people don't, right? 0:02:55.829 --> 0:02:58.230 If you're a security professional who's been doing this for 0:02:58.230 --> 0:03:01.910 20 years, you just understand things. If you're a CISO 0:03:01.950 --> 0:03:06.070 that's done this multiple times. You you just understand things 0:03:06.070 --> 0:03:10.790 and and get things that nobody else has. And importantly, 0:03:10.790 --> 0:03:13.650 it's not in a book somewhere. Okay. Even if you've 0:03:13.650 --> 0:03:18.570 written books, your knowledge is still not fully in the books, right? 0:03:20.049 --> 0:03:24.810 So that is a powerful thing. It is always protected 0:03:24.810 --> 0:03:29.450 smart people. It's always protected the intellectual people who have 0:03:29.450 --> 0:03:34.330 all this experience. So it's a combination of smarts plus experience. 0:03:34.370 --> 0:03:38.610 And that magical combination has made those people very special. 0:03:39.290 --> 0:03:45.010 What is happening now is completely changing that. And this 0:03:45.010 --> 0:03:49.330 is one of the major transitions from private knowledge to 0:03:49.370 --> 0:03:53.130 public knowledge. What is happening now, especially with skills, this 0:03:53.130 --> 0:03:57.490 whole concept that anthropic came up with with skills, it 0:03:57.490 --> 0:04:00.530 is scary. We're talking about a folder full of markdown 0:04:00.530 --> 0:04:07.770 files that can encapsulate a decent amount of your knowledge, right? 0:04:07.810 --> 0:04:09.930 You still have the capture problem where they don't know 0:04:09.930 --> 0:04:13.220 exactly what to say, How to capture it. But, but 0:04:13.220 --> 0:04:18.380 here's the situation. Many, many smart people are producing skills, 0:04:18.700 --> 0:04:22.740 and many, many other smart people are going to collect 0:04:23.100 --> 0:04:27.180 knowledge and specialized knowledge from all over the internet, anywhere 0:04:27.180 --> 0:04:31.460 it's been written down, and bring that into a skill. Plus, 0:04:31.860 --> 0:04:35.660 all these specialist people, they're writing books, right? They have 0:04:35.660 --> 0:04:39.540 been writing books. They've been doing presentations, they've been writing blogs, 0:04:39.700 --> 0:04:43.940 they've been doing interviews. They've been doing podcasts. Well, in 0:04:43.940 --> 0:04:47.060 the past, we'd never had a system that could basically say, well, 0:04:47.100 --> 0:04:50.940 go get all of that, right? Go get everything. So 0:04:50.980 --> 0:04:55.820 and so Doctor Huberman has ever said about health or 0:04:55.980 --> 0:04:59.460 morning routines or whatever, bring it all together and turn 0:04:59.460 --> 0:05:02.340 that into a skill. I mean, this is one prompt. 0:05:02.500 --> 0:05:06.500 This is one prompt, you know, find everything Huberman has 0:05:06.500 --> 0:05:11.080 said about morning routines from every podcast he's ever done, 0:05:11.080 --> 0:05:14.560 every blog he's ever done, whatever he's ever put out, 0:05:14.560 --> 0:05:18.480 every article, every interview and put that into a skill. 0:05:19.120 --> 0:05:23.520 That new thing combined with the models just getting better 0:05:23.520 --> 0:05:26.160 and they're absorbing it and everything. I mean, that's a 0:05:26.160 --> 0:05:29.320 crazy thing. This just feeds on itself, right? The model 0:05:29.720 --> 0:05:32.800 then can consume all those skills, right. Which of course 0:05:32.800 --> 0:05:36.440 is going to happen. So ultimately you have this transition 0:05:37.280 --> 0:05:39.800 that is really accelerated. But it's just going to continue 0:05:39.800 --> 0:05:44.000 to accelerate. And what it means is the gap between 0:05:44.320 --> 0:05:50.120 special privatized knowledge that's inside of someone's mind, some specialist doctor, 0:05:50.360 --> 0:05:54.720 some specialist psychiatrist who's been doing this work for 40 0:05:54.720 --> 0:05:59.400 years or 50 years. The delta between what they know 0:05:59.400 --> 0:06:03.560 and no one else knows is getting smaller. And that 0:06:03.600 --> 0:06:10.940 that is massively, massively impactful for like, humanity in general. Okay. 0:06:11.380 --> 0:06:14.580 Then there's another sort of layer on this which is 0:06:14.620 --> 0:06:17.300 which is crazy. So let's just assume all that is 0:06:17.300 --> 0:06:20.900 happening and all of that is being consumed by these 0:06:20.900 --> 0:06:23.700 labs who are spending billions of dollars bringing that knowledge 0:06:23.700 --> 0:06:29.220 into the models. Fine. Okay. That's happening. But what we 0:06:29.220 --> 0:06:32.700 just saw from anthropic, and this is happening all over 0:06:32.700 --> 0:06:35.660 the place, anthropic just called it out because a bunch 0:06:35.660 --> 0:06:39.020 of these Chinese labs are doing it in mass, like, 0:06:39.020 --> 0:06:42.580 very organized. I'm so surprised. Like, everyone's, like, surprised by this. 0:06:42.580 --> 0:06:44.900 And they're like, hey, what's the big deal? You know, 0:06:44.940 --> 0:06:47.540 maybe they're lying or whatever. Why would they be lying? 0:06:47.580 --> 0:06:50.540 China is known for doing this. China is, like, famous 0:06:50.540 --> 0:06:53.620 for stealing things. Like, they're famous for a lot of 0:06:53.620 --> 0:06:58.380 good things, too, right? But they are famous for stealing ideas, 0:06:58.380 --> 0:07:04.220 stealing content. And, um, they're also massively going all in 0:07:04.420 --> 0:07:08.950 on open source models. So I believe that they have 0:07:08.950 --> 0:07:13.150 a very clear strategy. It is you don't have to 0:07:13.190 --> 0:07:16.550 compete to be a pinnacle lab, right? They don't have 0:07:16.910 --> 0:07:21.310 an anthropic. They don't have a Google DeepMind. They don't 0:07:21.310 --> 0:07:25.270 have an OpenAI, but they do have deep seq. And 0:07:25.270 --> 0:07:29.590 deep seq has been, you know, called out for doing 0:07:29.590 --> 0:07:34.230 this for a very long time. They are capturing the 0:07:34.270 --> 0:07:37.790 knowledge of all the billions of dollars of work and 0:07:37.790 --> 0:07:41.070 bringing it into open source. And then what they are 0:07:41.070 --> 0:07:44.990 doing as a Chinese strategy for AI, I believe, is 0:07:45.030 --> 0:07:49.270 they're just saying distill it, not distill it. Well, they 0:07:49.270 --> 0:07:54.110 are distilling, but release it, diffuse it, absorb it into 0:07:54.110 --> 0:07:57.350 the pool. It's like you've heard the the metaphor. Peeing 0:07:57.350 --> 0:08:02.030 in the pool. That's that's what happens. Our specialized knowledge 0:08:02.270 --> 0:08:05.650 of what Specialized humans could do that no one else 0:08:05.650 --> 0:08:10.290 could do that is the P that's going into the pool. 0:08:10.530 --> 0:08:12.690 You can't pull it out, can't pull it out. It's 0:08:12.690 --> 0:08:15.330 just going to be in there. And China is basically 0:08:15.330 --> 0:08:19.810 making this happen at a mass scale because yes, the 0:08:20.210 --> 0:08:23.490 large billion dollar labs will have it first. It'll go 0:08:23.490 --> 0:08:27.650 into those models first actually. First it'll go into skills. Right. First. 0:08:27.650 --> 0:08:31.730 It's going into this whole knowledge sharing concept of skills. 0:08:31.730 --> 0:08:33.890 So it's in the markdown file. So it's on GitHub 0:08:33.890 --> 0:08:36.969 and stuff like that. So that takes a little more effort. 0:08:37.290 --> 0:08:39.450 But then it goes up into these labs. It gets 0:08:39.450 --> 0:08:43.929 consumed however long that takes a period of months or whatever. 0:08:44.250 --> 0:08:48.290 But then the open source models are pulling from it. 0:08:49.290 --> 0:08:52.490 And the other thing it's pulling is not just the data, 0:08:53.170 --> 0:08:58.650 the techniques that make those Premiere Labs better and better, 0:08:59.370 --> 0:09:02.780 or have an advantage over another lab, or have an 0:09:02.780 --> 0:09:07.700 advantage over open source. Those techniques are also being diffused 0:09:07.700 --> 0:09:12.860 somehow when the major labs have a major advantage and 0:09:12.860 --> 0:09:17.700 they jump ahead somehow. The Chinese models seem to get it. 0:09:17.740 --> 0:09:21.140 A few months later. So all of these things are 0:09:21.180 --> 0:09:25.060 actually contributing to the same thing. The specialized knowledge is 0:09:25.060 --> 0:09:31.020 being diffused into public domain. That's just a transition that's happening. Okay. 0:09:31.060 --> 0:09:34.340 So that's the first one. Knowledge is going from private 0:09:34.340 --> 0:09:38.460 to public. Okay. The second one is products are going 0:09:38.460 --> 0:09:44.059 from standalone software to APIs. So I talked about this 0:09:44.100 --> 0:09:48.260 in my stupid little book from 2016. Basically said that 0:09:48.260 --> 0:09:52.980 businesses become APIs. And we're finally now starting to see this. 0:09:53.660 --> 0:09:58.100 So if you've seen like all these people releasing tools, right. Um, 0:09:58.140 --> 0:10:00.760 they're releasing, you know, so and so model for this 0:10:00.760 --> 0:10:03.440 so and so model for that. Or not just models 0:10:03.440 --> 0:10:07.679 but like so and so functionality. Um, like uh there's 0:10:07.680 --> 0:10:10.560 a company that does remove background. Oh I'll give you 0:10:10.560 --> 0:10:15.959 a great example. Um, Excalibur. Excalibur just came out with 0:10:16.440 --> 0:10:19.760 a new piece of functionality where you could just describe 0:10:19.760 --> 0:10:23.840 what you want to make, and it will build all 0:10:23.880 --> 0:10:27.480 the different, uh, objects for you in your favorite fonts 0:10:27.480 --> 0:10:31.199 and your favorite aesthetic. Like, it'll just build you diagrams 0:10:31.840 --> 0:10:36.640 like the perfect, like, really cool looking Excalibur diagrams. And 0:10:36.640 --> 0:10:40.280 my first question when I saw this was, hold on, 0:10:40.280 --> 0:10:43.360 because I went and looked at the documentation and it 0:10:43.360 --> 0:10:47.360 basically said, yeah, you just go into the interface and 0:10:47.360 --> 0:10:52.120 you type into Excalibur, draw what you want to say. 0:10:52.640 --> 0:10:56.680 And I'm like, what? What are you talking about? Like, 0:10:57.040 --> 0:11:01.540 do you, do you honestly think in like early 2026, 0:11:01.780 --> 0:11:05.500 I'm going to open up a drawer and type in 0:11:05.500 --> 0:11:08.660 a prompt? Are you kidding me? So I posted, I 0:11:08.660 --> 0:11:12.180 was like, hey guys, this looks amazing. This looks amazing, 0:11:12.220 --> 0:11:15.740 looks fantastic. There's no way I'm going to use it. 0:11:15.860 --> 0:11:19.500 Can you make this available as an MCP? Can you 0:11:19.500 --> 0:11:23.620 make this available as an API? I'm not going to 0:11:23.620 --> 0:11:26.740 do any of this ever. Like if I have to 0:11:26.780 --> 0:11:30.540 open an app, I have already lost, right? I've already lost. 0:11:30.580 --> 0:11:35.140 Like this is not a good thing. It means my 0:11:35.180 --> 0:11:38.380 tooling is horribly broken. My AI should be doing all 0:11:38.420 --> 0:11:41.780 of this for me, so I'm not sure if they 0:11:41.780 --> 0:11:45.460 made that adjustment. But when I posted that on Twitter, 0:11:45.500 --> 0:11:48.459 like a whole bunch of people showed up and they're like, yeah, 100%, 0:11:48.460 --> 0:11:50.860 I need, you know, I need an MCP for this. 0:11:50.860 --> 0:11:54.900 Otherwise it's not useful. That is the way everything is going. 0:11:54.940 --> 0:11:57.550 If you notice most of the releases coming out for 0:11:57.550 --> 0:12:00.950 products now, they're like, here's the MCP for it. Here's 0:12:00.950 --> 0:12:03.950 how your agents can do this automatically, right? This is 0:12:03.950 --> 0:12:07.190 just becoming the new way to release software. And this 0:12:07.190 --> 0:12:10.830 is heading in the exact direction that I put in 0:12:10.870 --> 0:12:16.270 that stupid book in 2016. Businesses become APIs. Now why 0:12:16.270 --> 0:12:22.350 is this important? It's important because the consumer is not 0:12:22.350 --> 0:12:26.150 so much making the choice anymore. The consumer is not 0:12:26.150 --> 0:12:33.030 going to be like, hmm, yeah, there's 47,938 different options 0:12:33.030 --> 0:12:37.630 for removing backgrounds from images. Let me pull up GitHub 0:12:37.910 --> 0:12:45.310 and Google and let me spend 2.5 hours sampling and 0:12:45.310 --> 0:12:49.630 trying different ones. No, no, no, that there's too many apps. 0:12:49.790 --> 0:12:52.870 And because of AI, there's too many apps being made 0:12:52.910 --> 0:12:55.290 right on top of that. So So there will be 0:12:55.330 --> 0:12:57.490 hundreds more of these things coming out all the time. 0:12:58.490 --> 0:13:02.250 The only way this resolves, which is what I was 0:13:02.250 --> 0:13:08.210 talking about in that text, was there are directories. Okay. 0:13:08.250 --> 0:13:11.689 If you have a background remover tool, by the way, 0:13:11.730 --> 0:13:15.090 my favorite is remove BG, I think is the one 0:13:15.090 --> 0:13:18.170 I use. Um, and they do have an MCP or 0:13:18.170 --> 0:13:21.450 they have an API at least. And that's what my 0:13:21.770 --> 0:13:25.570 system Cai actually calls. So if you do have one 0:13:25.570 --> 0:13:31.170 of these agents, um, there will basically be orchestration layers, 0:13:31.210 --> 0:13:37.730 directories of services labeled and categorized, you know, taxonomy, folksonomy, whatever. 0:13:37.890 --> 0:13:43.970 Basically saying if you want to, um, remove backgrounds from images, 0:13:44.730 --> 0:13:50.050 here's your list of 27,000. But they will be rated right. 0:13:50.330 --> 0:13:53.780 You'll have different services with different ratings. And my system 0:13:53.780 --> 0:14:00.180 Chi will know which services it prefers, right? He prefers 0:14:00.180 --> 0:14:02.700 to go to this rating service or whatever, which is 0:14:02.700 --> 0:14:06.540 like IMDb or Rotten Tomatoes, right? But it's for software 0:14:06.940 --> 0:14:09.660 and it says, okay, find me the highest rated one 0:14:09.660 --> 0:14:13.420 with the most ratings, the least negative ratings, whatever algorithm 0:14:13.460 --> 0:14:16.820 Chi wants to use. And he's going to select okay, 0:14:16.860 --> 0:14:22.260 it's remove background boom, pulls that in, drops it into 0:14:22.260 --> 0:14:26.020 our workflow inside of our skill boom. That's it. From 0:14:26.020 --> 0:14:28.820 now on, when I want to remove or when Chi 0:14:28.820 --> 0:14:31.740 wants to remove a background for me for an image, 0:14:32.100 --> 0:14:38.620 that's what he uses. Okay, where is the website? Where's 0:14:38.620 --> 0:14:44.140 the website for remove background? Who needs a website? This 0:14:44.140 --> 0:14:48.580 is a service. A directory service like the old days 0:14:48.580 --> 0:14:52.520 like Yahoo directories or whatever. Right? This is a directory 0:14:52.520 --> 0:14:56.200 service of the best thing, right? It's already been rated. 0:14:56.920 --> 0:14:59.600 My agents are going to go check those ratings and 0:14:59.600 --> 0:15:01.120 it's going to find the API. And it's going to 0:15:01.120 --> 0:15:07.200 integrate it. This old way of making the software, packaging it. Oh, 0:15:07.280 --> 0:15:09.160 it's got to have a nice UI. It's got to 0:15:09.160 --> 0:15:11.800 have a nice website. You know, when the person comes 0:15:11.800 --> 0:15:14.240 to the website, they've got to really like it. Then 0:15:14.240 --> 0:15:16.840 they go click the buy button. Then they do all this. 0:15:17.240 --> 0:15:20.160 It's all going away. Right. And this is tightly coupled 0:15:20.160 --> 0:15:23.040 with another related one I have here in the list 0:15:23.040 --> 0:15:28.440 which is interface. Interface is going away SEO is going 0:15:28.480 --> 0:15:32.800 away okay. So interface used to be for humans. We 0:15:32.800 --> 0:15:37.200 make software. We have services whatever software service, whatever it 0:15:37.200 --> 0:15:39.840 is we have to have an interface for that. Right. 0:15:40.840 --> 0:15:43.160 It's the interface you use actually day to day to 0:15:43.200 --> 0:15:45.160 interact with it. But you also have to have an 0:15:45.160 --> 0:15:47.920 interface for the marketing and describing how to use it 0:15:47.920 --> 0:15:53.610 and the documentation interfaces in general. Front end in general 0:15:53.930 --> 0:15:58.210 is going away. It's not that the content won't be there, 0:15:58.210 --> 0:16:01.610 it's that it will be designed to be consumed by agents. 0:16:02.090 --> 0:16:04.690 Write your agents are the ones who will be the 0:16:04.690 --> 0:16:09.890 main consumers. AI will be the main consumers. And this 0:16:09.890 --> 0:16:14.330 also relates to another one, which is everyone has their 0:16:14.330 --> 0:16:17.890 own digital assistant. Right? This this was the number one 0:16:18.410 --> 0:16:21.890 sort of prediction. And call out, uh, in uh, the 0:16:21.930 --> 0:16:27.450 real Internet of Things in 2016. Everyone gets a digital assistant. 0:16:27.730 --> 0:16:33.850 Everything gets an API. Most importantly, businesses, people eventually as well. 0:16:33.850 --> 0:16:38.370 But objects, businesses, services, they all have an API. And 0:16:38.370 --> 0:16:42.170 then our AI, because it knows us so well. When 0:16:42.170 --> 0:16:44.490 we make a request, it goes and gets the thing 0:16:44.490 --> 0:16:47.250 from the API, brings it back to us. And then 0:16:47.250 --> 0:16:51.510 the third piece is interface. When we want an interface, 0:16:51.510 --> 0:16:54.350 when we want to look at I'm buying shoes, I 0:16:54.350 --> 0:16:57.550 want to see what they look like. Um, I'm buying 0:16:57.550 --> 0:16:59.270 a house. I want to see what it looks like. 0:16:59.910 --> 0:17:03.710 Our AI will be presenting the interface to us. Okay, 0:17:03.990 --> 0:17:07.910 this is already starting to happen. People are building bespoke software. 0:17:08.190 --> 0:17:12.629 Custom software is the direction that it's going, right? So 0:17:12.629 --> 0:17:16.109 software goes from being everyone has the same packages to 0:17:16.149 --> 0:17:21.869 everyone gets bespoke software, everyone has custom software. Interfaces go 0:17:21.869 --> 0:17:28.030 from being tied to the application itself. It's inherently part 0:17:28.030 --> 0:17:32.310 of the application to all of that being separated. The 0:17:32.350 --> 0:17:34.629 core part of your business, the core part of your 0:17:34.629 --> 0:17:38.069 product is the API, which will be used by the 0:17:38.070 --> 0:17:42.869 agents of the user, of the consumer, and the interface 0:17:43.109 --> 0:17:48.890 will be between their agent that user's agent and them. 0:17:49.369 --> 0:17:52.330 That's the interface. Right. And this will take a little 0:17:52.330 --> 0:17:54.730 more time. But it's already starting to happen a little 0:17:54.730 --> 0:17:59.889 bit with everyone having custom software and custom interfaces. So 0:17:59.929 --> 0:18:02.649 that that's a number of sort of things all wrapped 0:18:02.649 --> 0:18:13.050 into one software goes from standardized and consolidated and integrated 0:18:13.929 --> 0:18:21.889 to being separated between its interface and its functionality. And 0:18:21.889 --> 0:18:25.169 the user of most software becomes AI as opposed to 0:18:25.209 --> 0:18:29.169 the user itself. Right. So those are kind of the 0:18:29.169 --> 0:18:35.049 major transitions there. Uh, so SEO again, SEO used to 0:18:35.050 --> 0:18:39.050 be about being attractive to the user. SEO goes from 0:18:39.050 --> 0:18:42.210 trying to attract the user to trying to attract the 0:18:42.209 --> 0:18:45.740 user's AI I again. So when I say, hey, I 0:18:45.740 --> 0:18:48.820 need a new bed mattress, I'm not saying that to 0:18:48.859 --> 0:18:51.260 the internet. I'm not saying that to Google. I'm not 0:18:51.260 --> 0:18:55.699 saying that to the World Wide Web, a browser. No, 0:18:55.899 --> 0:18:58.180 I'm saying that to my agent. I am saying that 0:18:58.179 --> 0:19:02.659 to my Da. I need a new mattress. Well guess what? 0:19:02.699 --> 0:19:06.260 My Da knows my sleeping habits, knows my routine, knows 0:19:06.260 --> 0:19:09.340 if I like a firm mattress or a soft one. Knows. 0:19:09.659 --> 0:19:12.619 You know my girls. She likes a softer bed. I 0:19:12.619 --> 0:19:15.460 like a harder one on my side. So it's like 0:19:16.179 --> 0:19:18.979 this is where the customization comes in, right? Your agent 0:19:18.980 --> 0:19:22.460 knows you, therefore it can do smarter queries for you. 0:19:22.459 --> 0:19:25.580 But the point is, it's the one doing the queries. 0:19:25.580 --> 0:19:28.899 It's the one who, if it's going to be tricked 0:19:29.379 --> 0:19:33.780 into picking one mattress versus another, the tricking needs to 0:19:33.780 --> 0:19:37.340 happen at the AI layer, because I'm just going to 0:19:37.340 --> 0:19:40.660 do whatever my agent tells me, right? The agent's going 0:19:40.659 --> 0:19:42.520 to be like, yeah, I found the best one. It's 0:19:42.520 --> 0:19:45.439 not even a question. You know, it's this much. Do 0:19:45.439 --> 0:19:47.119 you want me to get it for you? You know, 0:19:47.159 --> 0:19:51.679 I'll have it here tomorrow. And that's the end of that. Okay, 0:19:51.719 --> 0:19:54.639 so that was a few things that were based around 0:19:54.639 --> 0:19:57.159 the consumer. Now I want to bring it a little 0:19:57.199 --> 0:20:00.480 bit over to the enterprise side. All right. So all 0:20:00.480 --> 0:20:02.959 of that is sort of on the consumer side. Let's 0:20:02.959 --> 0:20:05.840 switch over to talk a little bit about the enterprise side. 0:20:07.240 --> 0:20:10.800 So much the same sort of stuff that we're talking 0:20:10.800 --> 0:20:12.720 about on the consumer side is also going to be 0:20:12.760 --> 0:20:17.600 happening on the enterprise side. The changes that are happening 0:20:17.600 --> 0:20:21.479 on the enterprise side, they're so massive, like absolutely massive. 0:20:21.800 --> 0:20:24.119 One of the big things that's going to be happening 0:20:24.119 --> 0:20:31.320 on the enterprise side is the transition from humans creating 0:20:31.320 --> 0:20:36.639 processes and sort of following them to AI, kind of 0:20:36.679 --> 0:20:41.930 running the business based on SOPs And basically building out 0:20:41.929 --> 0:20:45.330 a lattice structure, like a graph structure of all the 0:20:45.369 --> 0:20:47.889 work that needs to be done. I did a post, 0:20:47.889 --> 0:20:53.250 I think, in 2024, maybe talking about companies or just 0:20:53.290 --> 0:20:59.330 a graph of APIs, a graph of operations. And I 0:20:59.330 --> 0:21:02.409 was talking about like somebody who just does a task, right. 0:21:02.449 --> 0:21:06.769 Let's say it's a threat intelligence task or no, let's 0:21:06.770 --> 0:21:10.049 take the insurance one. Right. You have to look at 0:21:10.050 --> 0:21:13.090 the photos. You have to look at their account. You know, 0:21:13.129 --> 0:21:15.490 they're making a claim. For example, you know, I need 0:21:15.490 --> 0:21:18.210 to be paid for this accident I just got into. 0:21:18.570 --> 0:21:21.889 And you need to filter for fraud, right? So I'm Sarah, 0:21:22.169 --> 0:21:25.490 I'm looking at these things. I'm trying to figure out if, uh, 0:21:26.129 --> 0:21:28.409 this is fraud. I'm looking at the picture. Does it 0:21:28.409 --> 0:21:31.369 look real? Do they have a real account? Are they 0:21:31.369 --> 0:21:34.929 making lots of claims just recently? Like, does their account 0:21:34.929 --> 0:21:39.909 look compromised? All these different things. And if it looks legit, okay, 0:21:39.949 --> 0:21:42.790 here's how much we're going to pay you out. You know, 0:21:42.830 --> 0:21:45.109 some of that's automated, but you still have people that 0:21:45.109 --> 0:21:48.189 are their job. Their actual physical job is to do 0:21:48.189 --> 0:21:53.070 this task right. So that's the type of thing that 0:21:53.550 --> 0:21:56.549 currently in the enterprise, if you look at any major company, 0:21:56.550 --> 0:21:59.230 there is not a map, there is not a graph 0:21:59.350 --> 0:22:03.510 that basically the CEO can look down and say, this 0:22:03.510 --> 0:22:07.629 is my entire business. This is every task happening in 0:22:07.629 --> 0:22:12.510 my company and the process of how it's done. The 0:22:12.510 --> 0:22:16.990 SOP right, also a process kind of the same word. 0:22:17.070 --> 0:22:20.749 Uh unmilitary. So that's the way I say it. There's 0:22:20.750 --> 0:22:25.429 an SOP standard operating procedure for how this thing is done. Right. 0:22:26.230 --> 0:22:28.629 And here are the people that do it. Here are 0:22:28.629 --> 0:22:34.669 the workflows. Here are the multiple steps involved. AI is 0:22:34.669 --> 0:22:38.009 going to have this for every company. This is the 0:22:38.050 --> 0:22:40.850 major transition that's going to be happening. This is just 0:22:40.850 --> 0:22:43.969 now starting. This is very slow. This is much slower 0:22:43.969 --> 0:22:46.809 than all this consumer adoption that we've seen over the 0:22:46.810 --> 0:22:49.210 last couple of years. This is going to take time. 0:22:49.889 --> 0:22:52.489 And this is what companies are still figuring out. They're like, 0:22:52.490 --> 0:22:54.810 what exactly am I going to do with AI? Well, 0:22:54.810 --> 0:22:56.889 this is what they're going to do with AI. And 0:22:56.889 --> 0:22:59.889 I'm sure a million different companies, this is a thing 0:22:59.889 --> 0:23:04.489 I do for companies. But people like McKinsey, lots of 0:23:04.490 --> 0:23:07.330 different companies like this. They're already bringing in, you know, 0:23:07.369 --> 0:23:12.250 an army of 22 year old smiling kids to interview 0:23:12.250 --> 0:23:15.850 everyone and produce this map. Here is the work that 0:23:15.850 --> 0:23:20.330 takes place. Here's where decisions happen. Here's where tools happen. 0:23:20.330 --> 0:23:25.170 Here's where all these things take place, right? So bringing 0:23:25.169 --> 0:23:28.169 you back to the consumer side, when you have a 0:23:28.169 --> 0:23:33.729 map like that, the whole conversation around software changes once 0:23:33.730 --> 0:23:39.540 again before you would have people. The people are basically 0:23:39.540 --> 0:23:43.260 the company. The people are doing the work. Yes, they 0:23:43.260 --> 0:23:46.420 have documents. Yes, they have processes. But it's the people 0:23:46.419 --> 0:23:49.980 doing the work. They're supposed to follow this policy, but 0:23:49.980 --> 0:23:53.459 it's just a doc. It's just a word doc used 0:23:53.459 --> 0:23:56.899 to be. Right. Um, now it's like a Google doc 0:23:56.899 --> 0:24:02.139 or whatever, but do they follow it? Not really. Sometimes. 0:24:02.580 --> 0:24:08.739 Often it depends on the company, but it's it's not required. Right? 0:24:08.780 --> 0:24:12.379 A company can have people who mostly do the work. 0:24:12.540 --> 0:24:16.100 They're barely referring to the policy. By the way, there 0:24:16.100 --> 0:24:18.659 might be 3 or 4 of those docs and the 0:24:18.659 --> 0:24:21.300 main person who maintain them. You know, she went on 0:24:21.300 --> 0:24:25.580 maternity leave. She never came back. Right. Whatever it is like, oh, 0:24:25.619 --> 0:24:28.700 that was Scott. Scott left the company, you know, he retired. 0:24:29.179 --> 0:24:32.899 He's not he's not coming back. So those docs get old. 0:24:32.959 --> 0:24:38.240 Nobody's following the policy. That is completely different than an 0:24:38.240 --> 0:24:43.560 AI saying, okay, I now own all these SOPs. Here 0:24:43.560 --> 0:24:47.559 is the map of all work that's being done. And 0:24:47.560 --> 0:24:50.079 the humans humans are still there. There's going to be 0:24:50.080 --> 0:24:54.200 some humans left in the company. Humans are the ones 0:24:54.199 --> 0:24:58.639 responsible for improving this AI, for telling the AI, hey, look, 0:24:58.679 --> 0:25:01.680 we need to change this SOP. Like, that's not how 0:25:01.679 --> 0:25:04.320 this should be done anymore. And you have a conversation 0:25:04.320 --> 0:25:06.280 with AI or whatever. And the AI is like, okay, 0:25:06.320 --> 0:25:08.479 are you sure about this? Boom. It makes the change. 0:25:08.600 --> 0:25:11.600 All the documentation is updated, all the SOPs are updated, 0:25:11.600 --> 0:25:15.480 the cross references are updated. That is the new model 0:25:15.480 --> 0:25:19.679 for for business, right? It's not started yet. It's barely started. 0:25:20.159 --> 0:25:23.119 Massively different for different companies, right? Some people have been 0:25:23.119 --> 0:25:25.840 doing this for a year or two already. People like 0:25:25.840 --> 0:25:32.290 Google probably, but most companies, they're barely even realizing that 0:25:32.290 --> 0:25:35.010 this is a thing right now. They're just like, oh, 0:25:35.050 --> 0:25:37.330 AI is a tool. Everyone's telling me I have to 0:25:37.330 --> 0:25:39.969 use it. Tell all your employees you must use AI. 0:25:40.010 --> 0:25:42.810 What does that actually mean? This is the thing that's 0:25:42.850 --> 0:25:48.409 actually going to happen. Sop's are established, goals are established. 0:25:48.649 --> 0:25:50.489 What are we actually trying to do as a company? 0:25:50.490 --> 0:25:52.210 We're going to talk about that one later. This is 0:25:52.250 --> 0:25:57.450 a massively important one. But all of that gets canonicalized captured, 0:25:57.490 --> 0:26:02.249 turned into SOPs, turned into goals, turned into texts, turned 0:26:02.250 --> 0:26:05.490 into actual things you could look at. But the important 0:26:05.490 --> 0:26:08.969 part for this particular point is the the map, this 0:26:08.969 --> 0:26:13.730 graph of all the different work, they're okay. Now a 0:26:13.730 --> 0:26:16.969 software vendor comes in and they're like, hey, look, we got, 0:26:17.010 --> 0:26:21.770 you know, the best. We'll just say this company needs background, uh, 0:26:21.770 --> 0:26:26.169 image removal or whatever. We have the best one out there. 0:26:26.689 --> 0:26:30.310 It's the best. Now, in the past, what would happen 0:26:30.310 --> 0:26:33.869 is they would bring their salesperson, take someone out to 0:26:33.909 --> 0:26:36.830 a steak dinner and be like, yeah, yeah, it's just 0:26:36.830 --> 0:26:39.669 it does background removal way better than anything else. Like 0:26:39.669 --> 0:26:42.270 you just have to have this. And if they convince 0:26:42.270 --> 0:26:45.909 this person and the manager and, you know, the purchasing 0:26:45.909 --> 0:26:51.109 authority or whatever procurement, whatever, they buy it, once again, 0:26:51.350 --> 0:26:55.749 it's a human doing the work. They have this image tool. Okay, 0:26:55.790 --> 0:26:58.470 maybe there's an API call if there's some automation, if 0:26:58.469 --> 0:27:04.270 it's relatively new, but ultimately it's humans buying software. Software 0:27:04.270 --> 0:27:07.230 is a package. It's sitting on a shelf and they've 0:27:07.230 --> 0:27:09.909 purchased a bunch of software. Maybe they use it, maybe 0:27:09.909 --> 0:27:15.550 they don't. In this new model, this lattice, this graph system, 0:27:16.030 --> 0:27:20.030 it includes all the tools. The work is laid out 0:27:20.030 --> 0:27:24.229 as a grid, as a graph. Here's here's the stuff. 0:27:24.429 --> 0:27:27.030 So watch this. This is a completely different conversation you 0:27:27.030 --> 0:27:30.490 have with the software vendor. Um, okay. Cool. Here is 0:27:30.490 --> 0:27:34.489 my map. Here's all the processes, all the work that 0:27:34.490 --> 0:27:39.090 I do. Every single workflow being done. What are you replacing? 0:27:39.850 --> 0:27:43.330 What are you doing better. Click on this note. Boom. 0:27:43.330 --> 0:27:47.609 You click on the note. Background image removal. Let's look 0:27:47.609 --> 0:27:50.250 at the metrics for it. Here's how fast it is. 0:27:50.250 --> 0:27:53.770 Here's how cheap it is. Here's how many times it 0:27:53.770 --> 0:27:57.490 failed here. Here's how many times it succeeded. Here's the 0:27:57.490 --> 0:28:02.529 ratings for how that's been done. Now what are yours? 0:28:03.649 --> 0:28:06.809 Now what are yours. And they have they're going to 0:28:06.810 --> 0:28:10.330 have to produce metrics that say I can do that 0:28:10.330 --> 0:28:14.250 function better. So now it's not about a software package 0:28:15.090 --> 0:28:17.529 that some human is buying. And maybe they use it. 0:28:17.530 --> 0:28:21.529 Maybe they don't. Now it's about an AI saying, here 0:28:21.530 --> 0:28:26.139 are my metrics for this function which fits into this graph. 0:28:26.980 --> 0:28:31.659 Can you prove that your metrics for doing this function 0:28:32.139 --> 0:28:36.259 are better? That's a completely different way of thinking about software. 0:28:36.540 --> 0:28:40.740 Once again, going back to for the consumer for the 0:28:40.780 --> 0:28:43.460 same service. Okay. Let's just say it's the same company. 0:28:43.459 --> 0:28:47.620 Remove background. Before they were marketing to the consumer with 0:28:47.620 --> 0:28:52.380 a pretty website and with SEO from Google, which is 0:28:52.380 --> 0:28:54.499 I'm sure, how I found this company in the first place. 0:28:54.500 --> 0:28:57.140 Remove background. Boom. It's a number one hit on Google 0:28:57.620 --> 0:29:01.300 that was targeted at me and it worked. Now that 0:29:01.300 --> 0:29:06.420 marketing goes to my agent, Chi Chi finds that for 0:29:06.420 --> 0:29:10.380 me in a directory, the same thing is going to 0:29:10.380 --> 0:29:13.979 happen inside the enterprise. The enterprise is going to be like, look, 0:29:14.020 --> 0:29:17.459 find all of our software, find out where it is 0:29:17.459 --> 0:29:21.180 on this function map. And if it's not, first of all, 0:29:21.180 --> 0:29:24.000 if it's not on the map, they're all fired. Cancel 0:29:24.000 --> 0:29:28.680 all contracts. Right. If it's not in this map or 0:29:28.680 --> 0:29:30.959 it's not in something, we're about to add a node 0:29:30.959 --> 0:29:33.479 because we have a new function, a new business line 0:29:33.480 --> 0:29:36.360 or new product or service or whatever. If it's not 0:29:36.360 --> 0:29:39.400 part of our structure, why do we have it? So 0:29:39.440 --> 0:29:45.040 it's just gone, right? But the conversation becomes improving upon 0:29:45.040 --> 0:29:49.120 this matrix. That's all that matters. So all these incoming 0:29:49.320 --> 0:29:55.400 like pitches and the steak dinners and like sales and marketing, blah, blah, blah, 0:29:55.440 --> 0:30:01.480 it becomes a whole lot less important once we're actually 0:30:01.480 --> 0:30:05.200 doing an objective measurement of what is the function that 0:30:05.200 --> 0:30:07.680 you're performing and how well do you do it. Right. 0:30:07.719 --> 0:30:11.960 So that's that's absolutely huge. Okay. So the transition here 0:30:12.160 --> 0:30:18.080 is going from corporate product marketing being a human to 0:30:18.120 --> 0:30:23.729 human targeted operation that results in a software package being 0:30:23.730 --> 0:30:26.890 purchased by a human, which is then used by a 0:30:26.890 --> 0:30:33.530 human or not. That's the old world. Two. The enterprise 0:30:33.730 --> 0:30:38.930 has a grid, a graph of all operations, and all 0:30:38.930 --> 0:30:44.090 functions inside of its company, and software is evaluated based 0:30:44.090 --> 0:30:47.330 on the function and the metrics that it provides. And 0:30:47.330 --> 0:30:51.450 those functions and metrics need to be superior or they 0:30:51.450 --> 0:30:54.850 don't get swapped out. So it's a that's the transition. 0:30:54.890 --> 0:31:01.209 It's a fundamental shift there. Okay. Next topic is work itself. Okay. 0:31:01.250 --> 0:31:06.650 So automation inside of companies. So the transition here is 0:31:07.490 --> 0:31:10.770 automation going from a thing that helps humans do their 0:31:10.770 --> 0:31:15.249 jobs better and basically improves productivity and efficiency and stuff 0:31:15.250 --> 0:31:19.730 like that, to being a way for companies to get 0:31:19.730 --> 0:31:23.590 to their ideal state of being able to do all 0:31:23.630 --> 0:31:30.950 the work themselves. This is colossal. This is economy changing. Okay. 0:31:30.990 --> 0:31:35.269 Because this really is the end of labor, right? So 0:31:35.310 --> 0:31:38.470 there's labor and there's capital. And these have always been 0:31:38.469 --> 0:31:41.989 in balance. This is how this is going to get disrupted. 0:31:42.150 --> 0:31:45.990 It gets disrupted because companies have always wished that they 0:31:45.990 --> 0:31:49.830 could do all the work themselves without employees. If you 0:31:49.870 --> 0:31:52.430 are only one founder and you don't have much work 0:31:52.430 --> 0:31:54.990 to do, you do all the work yourself. You get 0:31:54.990 --> 0:31:59.309 all the profits yourself. Now, if you hire a washing 0:31:59.310 --> 0:32:04.469 machine and your your business is washing clothes and you 0:32:04.510 --> 0:32:06.670 don't want to expand, you're not trying to scale. You're 0:32:06.670 --> 0:32:09.310 just trying to make the money that you make people 0:32:09.350 --> 0:32:12.790 bring you dirty clothes. You give them back clean clothes. 0:32:14.430 --> 0:32:16.709 That's a cool business. And you make lots of money 0:32:16.830 --> 0:32:20.050 and you are able to feed your family and you just. 0:32:20.050 --> 0:32:24.290 You have a good life, right? If you hire a 0:32:24.330 --> 0:32:27.650 washing machine before you were doing it on, on the 0:32:27.650 --> 0:32:31.569 board right in the river and you were making money, 0:32:31.570 --> 0:32:34.769 but you weren't making that much money, you weren't making 0:32:34.770 --> 0:32:37.930 as much as you could. So you decided to save 0:32:37.930 --> 0:32:40.850 up for a year and buy a washing machine. Now 0:32:40.850 --> 0:32:45.370 your washing machine is doing way more. You're able to 0:32:45.370 --> 0:32:49.930 do way more clothes and make way more money. If 0:32:49.930 --> 0:32:52.009 a whole bunch of people come to you and say, hey, 0:32:52.370 --> 0:32:57.290 I can also wash clothes in the river. Think about this. 0:32:58.050 --> 0:33:01.410 You need to hire me as a clothes washer in 0:33:01.410 --> 0:33:05.890 the river, because that's what's fair. And, um, there needs 0:33:05.890 --> 0:33:09.810 to be a balance between labor and capital if you're 0:33:09.810 --> 0:33:12.930 going to be like, are you kidding me? I can 0:33:12.930 --> 0:33:17.820 do all this work myself. I am literally doing all 0:33:17.860 --> 0:33:19.900 the work myself. They're going to be like, no, you're 0:33:19.900 --> 0:33:24.060 not doing all the work yourself. You have a washing machine. 0:33:25.580 --> 0:33:30.140 That is me. Okay. If I have a clothes washing 0:33:30.140 --> 0:33:33.420 business and I have ten washing machines behind me, that 0:33:33.420 --> 0:33:37.579 is me doing all the work myself. That is the 0:33:37.580 --> 0:33:41.580 transition that is happening. That is what AI is. And 0:33:41.900 --> 0:33:45.540 just to be clear, the total amount of compensation that 0:33:45.540 --> 0:33:54.220 knowledge workers receive is somewhere around $50 trillion per year, 0:33:54.820 --> 0:34:00.739 $50 trillion per year globally. I think it's somewhere around 0:34:00.740 --> 0:34:09.540 10 trillion for the US. That is how much money 0:34:10.860 --> 0:34:16.520 companies are spending to pay humans. And the major transition 0:34:16.520 --> 0:34:19.640 here is they don't want to be paying those humans. 0:34:19.840 --> 0:34:23.880 They actually never did want to be paying those humans. 0:34:25.839 --> 0:34:28.519 My favorite way of capturing this is the ideal number 0:34:28.520 --> 0:34:32.200 of human employees inside of any company is zero. That 0:34:32.200 --> 0:34:34.600 is the number that they're trying to get to. Now, 0:34:34.640 --> 0:34:37.320 there are exceptions to this, right? If I'm a small, 0:34:37.319 --> 0:34:39.439 spunky founder and you know, I want to work with 0:34:39.440 --> 0:34:42.680 my friends, um, you know, I want to do a 0:34:42.680 --> 0:34:45.520 project with my friends. I get five of my friends involved. 0:34:45.520 --> 0:34:48.640 We build a small startup or whatever. It's kind of 0:34:48.640 --> 0:34:52.160 like we're all owners at that point, right? So you 0:34:52.160 --> 0:34:57.999 still will have, like, elite employees, cadre co-founders, stuff like 0:34:58.000 --> 0:35:00.839 that inside of these companies. Like, that's that's not going 0:35:00.880 --> 0:35:03.839 to go away. Like hardly any companies are going to 0:35:03.839 --> 0:35:07.359 have like zero employees, especially large or medium sized companies. 0:35:07.920 --> 0:35:10.759 But we're talking about going from tens of thousands of 0:35:10.759 --> 0:35:15.529 employees to a few hundred, maybe eventually a few dozen, 0:35:15.569 --> 0:35:18.529 but let's just say a few hundred. We're talking about massive, 0:35:18.529 --> 0:35:23.410 massive reduction because of this different way of thinking about automation. 0:35:23.410 --> 0:35:25.890 It's not a thing that helps a human do a task, 0:35:26.130 --> 0:35:28.770 which is what it's always been. It is a way 0:35:28.770 --> 0:35:32.730 to get to the state of the company does the 0:35:32.770 --> 0:35:38.249 work itself, which is a natural, clean, happy state for 0:35:38.250 --> 0:35:42.810 any company. They prefer to be doing the work themselves. Again, 0:35:42.810 --> 0:35:46.290 go back to the single person with a washing machine business. 0:35:46.610 --> 0:35:49.930 The washing machine business is part of them. It is 0:35:49.930 --> 0:35:53.330 part of their business. So they don't have a reason 0:35:53.330 --> 0:35:57.130 to hire employees. So that is the major transition, their 0:35:58.089 --> 0:36:03.170 automation going from a thing that helps employees to being 0:36:03.170 --> 0:36:07.450 a way for the company to do all the work themselves. Okay, 0:36:07.489 --> 0:36:11.710 so that brings us to the next transition, which is okay, fine. 0:36:12.630 --> 0:36:15.509 That makes sense. What are we supposed to do? What 0:36:15.509 --> 0:36:19.870 are we supposed to do? We have jobs, right? How do. Okay. 0:36:19.910 --> 0:36:23.589 If everyone gets fired, who's going to buy all the stuff? Right? 0:36:23.630 --> 0:36:26.509 Who's going to buy all the stuff? So that's a 0:36:26.509 --> 0:36:29.590 UBI conversation. Not really going to go into that. Like 0:36:30.589 --> 0:36:33.070 there's going to be money. People are going to receive 0:36:33.069 --> 0:36:35.430 money to pay their bills and stuff like that. Otherwise 0:36:35.430 --> 0:36:39.390 you just don't have a society. It's all bad. So 0:36:39.589 --> 0:36:42.630 that will get solved one way or another. Hopefully, uh, 0:36:42.910 --> 0:36:48.870 more gently and faster and easier, uh, rather than the alternative. Okay. 0:36:48.910 --> 0:36:51.709 So what does this look like for actual people? So 0:36:51.750 --> 0:36:57.069 instead of people en masse working for companies, you know, 0:36:57.110 --> 0:37:01.950 medium large sized companies or whatever, that goes away, that 0:37:01.950 --> 0:37:04.950 goes away, right? Because those companies like we talked about, 0:37:04.950 --> 0:37:07.509 they're trying to get rid of everyone. Instead of that 0:37:07.509 --> 0:37:09.850 being the way that we make our money. We're going 0:37:09.890 --> 0:37:14.489 to make money by producing value ourselves, by articulating the 0:37:14.489 --> 0:37:17.450 skills that we have, the capabilities that we have, the 0:37:17.450 --> 0:37:21.210 products that we provide, the services that we provide, broadcasting 0:37:21.210 --> 0:37:23.850 that out. And that is going to go up into 0:37:23.850 --> 0:37:26.850 one of these directories like I talked about before, with 0:37:26.850 --> 0:37:30.529 products that AI can look at, right? AI can find 0:37:30.529 --> 0:37:34.010 products in one of these directories, but this will also 0:37:34.009 --> 0:37:37.850 be the substrate for all work to be done. So 0:37:38.089 --> 0:37:41.290 humans will broadcast their capabilities and say, look, you know, 0:37:41.330 --> 0:37:44.890 I'm a systems engineer. I've got eight years of experience, 0:37:44.890 --> 0:37:48.410 two years experience, 25 years experience, whatever. Here's all the 0:37:48.410 --> 0:37:51.489 different stuff I can do. Here's my portfolio, blah, blah, blah. 0:37:51.529 --> 0:37:53.770 By the way, I like to mountain bike, blah blah blah. 0:37:53.770 --> 0:37:57.930 So this is your demon. This is your broadcast system describing, 0:37:57.969 --> 0:38:01.370 you know, the people you've worked with, like your reputation score. 0:38:01.410 --> 0:38:04.450 People give you upvotes kind of similar to what LinkedIn 0:38:04.450 --> 0:38:06.969 was doing. They kind of went away from this. It's 0:38:06.969 --> 0:38:10.100 now kind of like a social network. So this is 0:38:10.100 --> 0:38:13.700 the play though. There's a substrate that connects all these 0:38:13.700 --> 0:38:18.219 different people, right. When I need a cat sitter because 0:38:18.219 --> 0:38:21.580 I'm going on vacation, I'm going to broadcast out, hey, 0:38:21.620 --> 0:38:23.379 I need someone to watch my cat. They need to 0:38:23.380 --> 0:38:27.460 be fed. You know, they're crazy. They might scratch you. Whatever. 0:38:27.860 --> 0:38:32.299 Broadcast that out. Keep in mind, uh, my AI is 0:38:32.299 --> 0:38:37.780 broadcasting that out for me. Okay, everyone around AI is 0:38:37.779 --> 0:38:41.819 watching all the substrate, whatever this thing is called, and 0:38:41.860 --> 0:38:44.739 they're like, hey, I'm a cat person. You know, I'm 0:38:44.739 --> 0:38:46.819 a cat lady, I love cats, I can take care 0:38:46.819 --> 0:38:49.660 of cats. Um, you know, I don't get scratched or whatever, 0:38:49.660 --> 0:38:51.780 or I don't get sick when I get scratched, whatever 0:38:51.779 --> 0:38:55.219 it is. And I also live, you know, two blocks away. 0:38:55.739 --> 0:39:00.740 Being in her ear, her AI tells her, hey, there's 0:39:00.739 --> 0:39:03.339 a cat sitting job over here. You know it's going 0:39:03.380 --> 0:39:09.520 to pay $84. Um. Do you accept? Boom. Yes. Same thing. 0:39:09.520 --> 0:39:12.520 Like someone. There's a crash on the on the corner. 0:39:12.560 --> 0:39:16.880 You know, someone injured themselves. Hey, does anyone have any medical, uh, 0:39:16.880 --> 0:39:22.280 you know, professional training or whatever? Does anyone have EMT skills? Boom. 0:39:22.279 --> 0:39:26.399 It's going to beacon for people all around nearby who 0:39:26.400 --> 0:39:30.640 have a reputation score above so and so. They get beacon. 0:39:30.680 --> 0:39:34.080 Someone takes the job, they go help the person. Okay, 0:39:34.120 --> 0:39:37.999 same for gardening, same for engineering services, same for hey, 0:39:38.000 --> 0:39:41.200 I need a shoulder to cry on. Hey, I need nurturing. Hey, 0:39:41.200 --> 0:39:45.480 I need tutor for my kids. Hey, I need meal prep. Um, 0:39:45.839 --> 0:39:48.319 I need to gain a lot of muscle mass in 0:39:48.319 --> 0:39:52.359 my legs. Uh, I need a personal trainer. Everyone who 0:39:52.360 --> 0:39:56.519 has services, capabilities, value to offer, they are beaconing out 0:39:56.520 --> 0:40:00.039 onto this system. It is out there on the substrate, 0:40:00.400 --> 0:40:06.129 and then everyone's AI is looking at that system. And 0:40:06.130 --> 0:40:09.209 that's how you find work. Okay. Another version of this 0:40:09.210 --> 0:40:12.649 is like Fiverr. Okay. It never it's not automated, but 0:40:12.650 --> 0:40:16.330 it's the same kind of vibe. Uh, also as LinkedIn, 0:40:16.370 --> 0:40:20.330 it's like, here are my services. Here are the jobs. Right. 0:40:20.370 --> 0:40:24.329 So you you've got consumer and producer, right? You've got like, 0:40:24.370 --> 0:40:26.850 here's the work I need done. And then you've got 0:40:26.850 --> 0:40:29.090 the other group saying, here's all the stuff I can do. 0:40:29.450 --> 0:40:31.169 And then it's a matter of, okay, we're going to 0:40:31.170 --> 0:40:33.569 join together. It's going to be five people on this project. 0:40:33.569 --> 0:40:35.850 It's going to be a six month long project. Here's 0:40:35.850 --> 0:40:40.250 the money that I'm offering. Boom, boom, boom. Everyone agrees. Boom, 0:40:40.250 --> 0:40:45.570 the work starts. That is what I'm calling human 3.0. 0:40:45.610 --> 0:40:49.089 It's what I'm calling the state that we're going to 0:40:49.089 --> 0:40:52.729 get to do. I know this is going to happen 0:40:52.730 --> 0:40:57.050 for sure. I believe the answer is yes. Um, only 0:40:57.049 --> 0:41:01.129 because I'm an optimist and I believe we are not 0:41:01.130 --> 0:41:04.870 just going to die off and, you know, devolve into 0:41:04.870 --> 0:41:09.109 chaos after the corporate system breaks down. Uh, I can 0:41:09.110 --> 0:41:11.189 tell you that the corporate system is going to break 0:41:11.190 --> 0:41:15.189 down because the corporate system is going to pull all 0:41:15.190 --> 0:41:18.830 the work internally and do it with automation and AI 0:41:18.870 --> 0:41:25.910 and robotics. That seems obviously inevitable. Again, not everyone, but 0:41:26.430 --> 0:41:29.950 most people will be laid off as a result of this. 0:41:30.230 --> 0:41:34.509 Over time, it'll happen different speeds and different industries, but 0:41:34.509 --> 0:41:39.150 that is pretty much inevitable. I think that this better solution, 0:41:39.150 --> 0:41:43.190 this new solution, is also inevitable. The reason I love this, 0:41:43.469 --> 0:41:45.870 and this is a little bit of an aside, but 0:41:45.870 --> 0:41:48.710 I love this because it's more human focused. It's humans 0:41:48.710 --> 0:41:52.589 connecting with humans. And there'll still be companies, right? It's 0:41:52.589 --> 0:41:56.950 humans connecting with companies. But it's not in this hierarchical, 0:41:56.989 --> 0:42:01.090 you know, you know what corp corporate. That's that's military. 0:42:01.410 --> 0:42:05.290 This idea of. I work for Sarah. Sarah works for Joe. 0:42:05.330 --> 0:42:09.049 Joe works for Raj. And. Oh, I'm having a meeting 0:42:09.049 --> 0:42:12.370 with Raj. Oh my God. You know, he's three skip 0:42:12.370 --> 0:42:16.410 levels above me. Like this whole military structure, this whole, like, 0:42:16.690 --> 0:42:20.530 dreading Monday. And just like, this whole thing is, like, 0:42:20.690 --> 0:42:25.290 toxic and poisonous. And it has been for decades. People 0:42:25.290 --> 0:42:28.450 have been so unhappy with this. And now that it's 0:42:28.489 --> 0:42:31.089 actually under threat, people are like, well, don't get rid 0:42:31.130 --> 0:42:34.810 of my job. Don't fire me. And which is justified, right? 0:42:34.810 --> 0:42:37.209 Because they're worried about losing their livelihood and they're worried 0:42:37.210 --> 0:42:40.250 about being able to pay the rent and a mortgage and, 0:42:40.290 --> 0:42:44.489 you know, school and groceries. So it's understandable that they're 0:42:44.489 --> 0:42:48.089 clinging to that. But remember, we shouldn't be clinging to 0:42:48.130 --> 0:42:52.410 a thing we hate and we have hated. Right. All 0:42:52.410 --> 0:42:55.489 this to say, I think the way that it's going, 0:42:55.650 --> 0:42:58.700 the way that I'm pushing for, I'm actively building to 0:42:58.739 --> 0:43:02.700 make this happen is to have this new human based 0:43:02.700 --> 0:43:07.979 substrate where producer, consumer producer, consumer things are a lot 0:43:07.980 --> 0:43:11.860 more equal. You get hired based on your skills, and 0:43:12.259 --> 0:43:14.779 that's a relationship you can get out of any time. 0:43:15.299 --> 0:43:17.620 And here's what's cool about it. You can be in 0:43:17.660 --> 0:43:22.380 multiple of these, right. You can have ongoing like retainer 0:43:22.380 --> 0:43:26.100 type things going on with like 20 different customers. And 0:43:26.100 --> 0:43:28.900 you're on this big project for a full six months 0:43:28.900 --> 0:43:31.299 and you're getting paid from that. Plus you're doing the 0:43:31.299 --> 0:43:34.739 cat sitting. Plus you're a part time EMT in the 0:43:34.779 --> 0:43:37.299 in the nights just in case someone falls off their 0:43:37.299 --> 0:43:39.299 bike or whatever, you know what I mean? So it's 0:43:39.299 --> 0:43:44.620 like it's just a more aligned thing, right? Because now 0:43:44.980 --> 0:43:50.620 you're actually broadcasting everything that you you are right. You're like, yeah, 0:43:50.660 --> 0:43:53.500 I play violin. I will come to your son's birthday 0:43:53.500 --> 0:43:57.239 party and play violin if they like classical music. So 0:43:57.239 --> 0:44:01.920 it's like you're broadcasting not just, oh, you know, here's 0:44:01.920 --> 0:44:05.920 my resume. I'm a tech engineer, level three, blah blah, blah. 0:44:05.960 --> 0:44:10.640 I worked at Intuit. That is not you. You. What 0:44:10.640 --> 0:44:12.719 this is going to allow us to do is broadcast 0:44:12.719 --> 0:44:17.720 our full selves and monetize ourselves in the best way possible. 0:44:17.719 --> 0:44:20.480 Not in a gross way. We're going to say we 0:44:20.520 --> 0:44:25.440 are going to be compensated and rewarded for being ourselves. 0:44:26.000 --> 0:44:29.160 If we are the best nurturers in the world, forget 0:44:29.200 --> 0:44:34.160 tech skills. Forget any tech, right? You're the best nurturer. 0:44:34.200 --> 0:44:36.959 You're the best listener. You're the best mother, you're the 0:44:36.960 --> 0:44:41.040 best parent, you're the best tutor. You're the best trainer. 0:44:41.080 --> 0:44:45.759 You're the best boxing coach. Okay? They're not producing products. 0:44:45.759 --> 0:44:49.680 They're not releasing startups. They're helping other people become the 0:44:49.680 --> 0:44:53.080 best versions of themselves. In many ways, they're the most 0:44:53.080 --> 0:44:56.569 important people. Well, guess what? That's in there. Demon that 0:44:56.569 --> 0:45:00.609 is broadcasted. They become world famous for that. So they 0:45:00.610 --> 0:45:03.770 got everyone trying to come in and use them, right? 0:45:05.009 --> 0:45:07.850 And they make money from it, which they should. This 0:45:07.850 --> 0:45:11.969 is how humanity should work, right? So anyway, this is 0:45:11.969 --> 0:45:14.370 the tech layer I think is going to replace the 0:45:14.370 --> 0:45:18.089 whole system. This is the transition that I think is happening. 0:45:18.770 --> 0:45:20.690 I just want to cover that because a lot of 0:45:20.690 --> 0:45:23.410 people have questions. What am I supposed to do after 0:45:23.410 --> 0:45:26.689 we lose all these jobs? Okay, next topic I want 0:45:26.730 --> 0:45:30.649 to talk about is cybersecurity. So similar to a lot 0:45:30.650 --> 0:45:33.770 of the other things we've already talked about. Cybersecurity has 0:45:33.770 --> 0:45:39.009 been human based, right. Um, it's you hire a human team, 0:45:39.410 --> 0:45:43.489 you have human staff. They are good security engineers or whatever. 0:45:43.930 --> 0:45:48.970 They're doing pen tests, they're doing security assessments, vulnerability assessments. 0:45:49.130 --> 0:45:52.770 They are manually looking at all the different vendors and 0:45:52.870 --> 0:45:55.550 trying to figure out, is this one dangerous? Um, should 0:45:55.549 --> 0:45:59.870 we allow it through procurement? And they're just being bombarded 0:45:59.870 --> 0:46:03.189 by all these requests. And, you know, if you have 0:46:03.190 --> 0:46:08.390 a really good, you know, third party service person, um, 0:46:08.390 --> 0:46:11.989 auditor person, they could look at x number of, of 0:46:12.029 --> 0:46:15.950 those vendors per day. Maybe some of them get escalated 0:46:15.950 --> 0:46:19.190 because the CEO really wants that, uh, piece of software. 0:46:19.190 --> 0:46:21.270 So you have to do a security assessment. You have 0:46:21.270 --> 0:46:23.109 to find some way to make it secure because it's 0:46:23.110 --> 0:46:25.710 coming in the company anyway. That's the life of a 0:46:25.710 --> 0:46:28.589 security person. That's the life of a security program. It's 0:46:28.589 --> 0:46:32.830 humans grappling with all this stuff in a very gross 0:46:32.870 --> 0:46:37.670 sort of in the weeds, like sewer type of thing. 0:46:37.790 --> 0:46:42.390 It's not pretty, it's not clean, but it's got the 0:46:42.390 --> 0:46:46.150 job done, right. We're still alive. The inner still mostly works. 0:46:46.509 --> 0:46:49.109 You could still go to the ATM and get cash out. 0:46:49.110 --> 0:46:52.959 So security has been largely successful. Keep in mind, we're 0:46:52.960 --> 0:46:56.000 still losing billions to fraud all the time, but it's 0:46:56.000 --> 0:47:00.519 a messy process. What security becomes now with all this 0:47:00.520 --> 0:47:05.839 AI stuff is it becomes your AI stack. As a 0:47:05.839 --> 0:47:10.040 defender against the AI stack of the attacker. And unfortunately, 0:47:10.040 --> 0:47:13.239 you're not facing one attacker, you're facing all the attackers. 0:47:13.759 --> 0:47:19.960 So the attacker is trying to understand your company extremely well. 0:47:19.960 --> 0:47:23.440 It's making a list of all your employees. It's creating 0:47:23.440 --> 0:47:26.680 a personality profiles on all your employees. It's coming up 0:47:26.680 --> 0:47:30.320 with the best spear phishing campaigns to find the ones 0:47:30.319 --> 0:47:33.680 who probably have the most access based on their job title. 0:47:33.680 --> 0:47:37.999 And it's sending out these spear phishing attacks. It's constantly pulling. 0:47:38.000 --> 0:47:39.960 Your DNS is trying to see if you're doing a 0:47:39.960 --> 0:47:43.759 merger and acquisition with a company that doesn't have good security, 0:47:43.759 --> 0:47:46.759 so that's going to be a weakness. And they're launching 0:47:47.080 --> 0:47:51.940 a malware. They're sending you a spear phishing emails. They're 0:47:51.940 --> 0:47:55.620 trying to compromise all your websites. They're trying to pivot internally. 0:47:55.620 --> 0:47:58.100 They're trying to sell the access that they have. And 0:47:58.100 --> 0:48:01.180 they're doing this at like machine speed, right? They've just 0:48:01.180 --> 0:48:04.780 got so many agents working on this constantly, constantly hitting you. 0:48:04.980 --> 0:48:08.939 You can't tell Chris and Raj and Sarah. Hey, uh, 0:48:08.980 --> 0:48:11.580 great job last year. Um, I need you to do 0:48:11.739 --> 0:48:18.739 895 times as much work because, uh, that's how many 0:48:18.739 --> 0:48:23.020 more attacks were being hit with. That doesn't work. Also, 0:48:23.060 --> 0:48:25.939 you can't be like, uh. Hey, great news. We got 0:48:25.940 --> 0:48:29.420 three more head count. That also won't make a dent. 0:48:29.779 --> 0:48:34.739 Your only chance is to have the same AI or 0:48:34.739 --> 0:48:38.379 better as the attacker. And this goes back to what 0:48:38.380 --> 0:48:42.020 happens to all companies. What happens to all companies also 0:48:42.020 --> 0:48:46.620 happens to security programs. It's no longer about here's our 0:48:46.620 --> 0:48:50.080 security team hears roughly the things we need to do. 0:48:50.640 --> 0:48:54.840 And yeah, there's some documentation, but ultimately it's like who's 0:48:54.839 --> 0:48:58.079 on call, who's doing the work, blah, blah, blah. And 0:48:58.080 --> 0:49:02.040 it's like a very human focused thing that's all out 0:49:02.040 --> 0:49:10.440 the window. SOPs, SOPs, everything is a process and workflows 0:49:10.440 --> 0:49:13.999 which you could visually look at and see, look, this 0:49:14.000 --> 0:49:18.160 is the queue for processing incoming things. Uh, here's a 0:49:18.160 --> 0:49:21.719 queue for, you know, here are the constant workflows that 0:49:21.719 --> 0:49:24.480 are happening, all the cron jobs or whatever it is 0:49:25.040 --> 0:49:28.759 for finding insider threats. Here's all the processes for managing 0:49:28.759 --> 0:49:33.600 the CI, CD. Here's every single tool, every single decision point, 0:49:33.640 --> 0:49:36.919 every single approval point that needs to happen as part 0:49:36.920 --> 0:49:40.640 of CI CD before something goes live. We're doing static analysis. 0:49:40.680 --> 0:49:44.240 We're doing dynamic. We're doing, uh, you know, we're looking 0:49:44.239 --> 0:49:47.770 at some other aspect of the application, how it impacts 0:49:47.770 --> 0:49:51.730 the business. Each one of those turns into a little node. 0:49:52.529 --> 0:49:55.289 That is where a tool drops into. This is where 0:49:55.290 --> 0:49:57.650 a human drops into. This is where the human is 0:49:57.650 --> 0:50:00.769 replaced because a very smart AI model just took over 0:50:00.770 --> 0:50:08.930 that role. Everything becomes transparent, visible with discrete actions and 0:50:08.930 --> 0:50:13.370 activities and decision points at each area. And the question 0:50:13.370 --> 0:50:18.450 is then how well are we doing this? How good 0:50:18.450 --> 0:50:22.450 are our information sources feeding our context? This concept of 0:50:22.450 --> 0:50:26.370 unified context that I put out a year or so ago, 0:50:27.650 --> 0:50:34.250 maybe 2024, actually unified entity context. Everyone like I was 0:50:34.250 --> 0:50:36.970 talking about with the corporate side, also the security side, 0:50:36.969 --> 0:50:39.810 we're all working off a unified context of the company. 0:50:40.009 --> 0:50:42.930 What are its goals? What are its challenges? What's the 0:50:42.930 --> 0:50:46.029 risk register. Look like they're all working off the same 0:50:46.029 --> 0:50:49.510 sort of thing. Right here are our attackers, here are 0:50:49.509 --> 0:50:52.509 sensitive things. Here's our crown jewels over here. All of 0:50:52.509 --> 0:50:55.430 this is unified. We have this map of all the 0:50:55.469 --> 0:50:59.230 workflows that are happening, all the different tools. And now 0:50:59.430 --> 0:51:04.549 the question is, are we getting that context updated? Okay. 0:51:04.870 --> 0:51:08.270 New AWS account, which just stood up. We just launched 0:51:08.270 --> 0:51:13.070 a new application, a new service in Asia and also 0:51:13.110 --> 0:51:16.629 Iceland and also in Seattle. And it's got all these 0:51:16.630 --> 0:51:20.589 new services on it. How quickly are we as a 0:51:20.589 --> 0:51:23.350 security team learning that they did that? Because that was 0:51:23.350 --> 0:51:26.029 some crazy marketing group over there or whatever. Let's just 0:51:26.029 --> 0:51:29.390 assume we're going to have shadow it still for quite 0:51:29.390 --> 0:51:32.190 a while. This transition I'm talking about with like everything 0:51:32.190 --> 0:51:36.229 being mapped out and SOPs. That's not going to happen overnight. 0:51:36.509 --> 0:51:38.710 This is going to take a long time. Some companies 0:51:38.710 --> 0:51:41.550 this is going to take 15 years and they'll probably 0:51:41.549 --> 0:51:44.439 be dead, but some will survive and it will take 0:51:44.440 --> 0:51:46.879 them 15 years because they're a soup sandwich. It will 0:51:46.880 --> 0:51:51.200 take them forever. Somehow they survived. Many companies, they'll do 0:51:51.200 --> 0:51:54.040 this over the course of two or 3 or 5 years. Right? 0:51:54.080 --> 0:51:56.839 Some companies have already started this. Some companies won't start 0:51:56.839 --> 0:52:01.839 this for another three years. It's massive, massive variance in 0:52:01.839 --> 0:52:05.239 how fast it's going to happen across various industries. Okay. 0:52:05.279 --> 0:52:07.680 So I don't want you to think like, oh, I 0:52:07.680 --> 0:52:11.279 think this is happening right now to everyone. And it's 0:52:11.279 --> 0:52:15.000 just like it's going great. No, this is barely starting. Okay. 0:52:15.319 --> 0:52:19.879 So the point is this structure is what attackers are 0:52:19.880 --> 0:52:22.719 going to use to attack you. They're going to have 0:52:22.719 --> 0:52:26.839 a world model of your company which has all these 0:52:26.839 --> 0:52:30.439 pieces right there. Hopefully they're not as filled in as 0:52:30.440 --> 0:52:35.000 your version, right. Um, when you launch that AWS stuff, 0:52:35.000 --> 0:52:39.200 when you launch those new services, you have access to AWS. Hopefully. 0:52:39.200 --> 0:52:41.899 Hopefully your attacker doesn't, so you should be able to 0:52:41.940 --> 0:52:45.060 pull that like really quickly. Okay. You should have access 0:52:45.060 --> 0:52:47.819 to all your endpoint visibility. You should have access to 0:52:47.819 --> 0:52:50.979 all your different tools, all your different APIs, all your 0:52:50.980 --> 0:52:56.020 different agent infrastructure constantly pulling asset management. Asset management is 0:52:56.020 --> 0:53:01.140 about to get elevated to top top tier. Finally thank goodness. 0:53:01.339 --> 0:53:06.339 But you should have this data way faster than your attacker. Unfortunately, 0:53:06.819 --> 0:53:11.060 all of this is very, very ancient inside of most companies. 0:53:11.060 --> 0:53:16.580 I have been doing consulting for over 20 years. Most 0:53:16.580 --> 0:53:20.979 companies I see they do not have asset management. They 0:53:20.980 --> 0:53:25.100 do not have unified documentation. They do not have most 0:53:25.100 --> 0:53:28.219 of this stuff. Okay, we're in a bad state. We're 0:53:28.219 --> 0:53:31.660 in a bad state because as AI starts spinning this 0:53:31.660 --> 0:53:34.100 stuff up for the attackers, they're going to build a 0:53:34.100 --> 0:53:38.180 world model of these companies faster than the company has it, 0:53:38.239 --> 0:53:40.120 because the company has to go slow. They have to 0:53:40.120 --> 0:53:43.560 have 19 meetings to prepare for the meeting. Attackers are 0:53:43.560 --> 0:53:46.879 just going to like YOLO it, you know, submit the 0:53:46.880 --> 0:53:52.439 single prompt, make no mistakes and start attacking. So all 0:53:52.440 --> 0:53:58.560 this to say, transition is humans doing security work to 0:53:59.520 --> 0:54:05.640 a unified workflow model with SOPs of the work that 0:54:05.640 --> 0:54:10.880 is being executed largely by agents, largely by AI, with 0:54:10.880 --> 0:54:16.520 humans there to tweak and improve and guide and instruct 0:54:16.520 --> 0:54:22.759 and steer and validate the AI automation. And the game 0:54:22.880 --> 0:54:26.839 here is for your orchestration system to be better than 0:54:26.839 --> 0:54:29.520 the attackers. All right. So this next one is a 0:54:29.520 --> 0:54:33.640 way of thinking about enterprise AI in like a completely 0:54:33.640 --> 0:54:36.930 different way. And I put this out about a year 0:54:36.930 --> 0:54:40.769 ago or so, and I think it's really powerful as 0:54:40.770 --> 0:54:46.049 an inversion. So the idea is that, um, currently it 0:54:46.049 --> 0:54:48.930 definitely a year ago, two years ago. But even still 0:54:48.930 --> 0:54:53.089 now everyone is thinking, okay, we have security, we need 0:54:53.089 --> 0:54:55.890 to put AI on it. Okay, we have finance, we 0:54:55.890 --> 0:54:59.210 need to put AI on it. Okay. We have um, 0:54:59.489 --> 0:55:03.009 HR we need to put AI on that, which means 0:55:03.290 --> 0:55:08.770 we need AI agents. Um, for finance we need finance AI, 0:55:08.969 --> 0:55:14.569 we need, um, security, AI, security, AI agents. Right. So 0:55:14.569 --> 0:55:18.170 the idea is you have the discipline, you have the topic, 0:55:18.810 --> 0:55:23.049 and then AI gets sprinkled on top, and it's supposedly 0:55:23.049 --> 0:55:27.009 going to do something that benefits you related to that topic. 0:55:28.210 --> 0:55:31.690 This is I don't think, the way to think about it. Okay. 0:55:31.730 --> 0:55:34.210 I think the way to think about this is actually 0:55:34.210 --> 0:55:38.549 you have a company and you have the company's work 0:55:38.910 --> 0:55:41.149 and all its workflows and the graph of all the 0:55:41.150 --> 0:55:45.549 services and the tools and the operations, SOPs, goals, everything 0:55:45.950 --> 0:55:51.270 that is actually the system. The system is the graph 0:55:51.270 --> 0:55:56.469 of operations, okay? It is the graph of algorithms that 0:55:56.469 --> 0:56:00.310 take place to make this business function okay. Maybe it 0:56:00.310 --> 0:56:03.629 has humans there, maybe it doesn't, maybe has lots of humans, 0:56:03.670 --> 0:56:07.750 maybe it's mostly AI and a few humans. Doesn't really matter. 0:56:07.790 --> 0:56:12.430 This graph of functions, this graph of algorithms is the company. 0:56:12.830 --> 0:56:18.629 Now think of AI as a system for running this 0:56:18.630 --> 0:56:24.830 graph of algorithms. That is what AI is. Then you 0:56:24.830 --> 0:56:29.269 have the question of okay, what are you doing for finance? 0:56:29.710 --> 0:56:35.120 What does procurement look like? Show me procurement. You're looking 0:56:35.120 --> 0:56:40.800 at this graph. And this one little, um, line lights up. 0:56:41.400 --> 0:56:44.959 It's actually like 19 different lines. They all light up. Oh, 0:56:45.000 --> 0:56:50.600 these are the procurement workflows. Cool. So we can drill 0:56:50.600 --> 0:56:53.480 into those. We can inspect. Okay, here's the tools. Here's 0:56:53.480 --> 0:56:56.680 the human involved. Here's the decisions. Here's the sign offs. 0:56:56.759 --> 0:57:00.480 Here's the exceptions. Here's the risk register. Whatever it is, 0:57:00.839 --> 0:57:06.160 the overall system is the graph of algorithms largely run 0:57:06.160 --> 0:57:09.640 by AI. What ends up happening is all the different 0:57:09.640 --> 0:57:13.279 things that used to be industries. They become use cases 0:57:13.279 --> 0:57:18.240 inside of AI. Okay. So the before is you have 0:57:18.240 --> 0:57:22.800 industries using AI. And now what you have is a 0:57:23.400 --> 0:57:29.480 graph of algorithms run by AI that has use cases 0:57:29.480 --> 0:57:33.860 for different things. Right. You you've got some of these 0:57:33.860 --> 0:57:36.740 things are security. Some of these things are HR. Some 0:57:36.740 --> 0:57:39.860 of these things are engineering. Some of these things are marketing. 0:57:41.860 --> 0:57:46.900 AI is the container. AI is the thing. And it 0:57:46.900 --> 0:57:50.419 just has functions that happen to be affiliated with what 0:57:50.420 --> 0:57:55.180 we used to call industries, that that is a fundamental transition. 0:57:55.180 --> 0:57:58.499 Now it's not absolute. This is a mental model, but 0:57:58.500 --> 0:58:01.499 I think this mental model is a lot more descriptive 0:58:01.500 --> 0:58:05.380 of what's actually happening. Then thinking about it in terms 0:58:05.380 --> 0:58:07.979 of like, well, let's do everything the way we used 0:58:07.980 --> 0:58:11.459 to do it before. Okay, we've got an HR database, 0:58:11.460 --> 0:58:14.300 we're going to have an HR interface. We're going to 0:58:14.300 --> 0:58:21.180 have HR tools and an HR dashboard. No that's going away. Okay. 0:58:21.220 --> 0:58:25.060 If you abstract everything to questions and everything to algorithms, 0:58:25.340 --> 0:58:29.019 the question is something like how happy are our employees? 0:58:30.200 --> 0:58:33.840 How much money are we spending on compensating employees? Should 0:58:33.840 --> 0:58:38.200 we pay more for bonuses? Those are questions. Those questions 0:58:38.200 --> 0:58:41.520 are not in industry. Those are questions that just happen 0:58:41.520 --> 0:58:44.760 to be associated with what we used to call an industry. 0:58:45.080 --> 0:58:48.520 Those are all hitting unified entity contexts. The results are 0:58:48.520 --> 0:58:54.040 coming out and you have the answer. But ultimately, it 0:58:54.040 --> 0:59:00.760 is all feeding off this underlying unified context and graph 0:59:00.760 --> 0:59:04.040 of algorithms and understanding of what the business actually is. 0:59:04.600 --> 0:59:08.000 And all of that is powered and enhanced and managed 0:59:08.000 --> 0:59:14.320 and orchestrated by AI. Okay, here's the next one. Custom everything. 0:59:14.920 --> 0:59:19.600 So in the past and this one crosses consumer and enterprise. 0:59:20.360 --> 0:59:23.680 So in the past you basically had very few people, 0:59:24.040 --> 0:59:28.850 very few organizations, very few companies producing software, right? You've 0:59:28.850 --> 0:59:33.050 got Adobe, right? There aren't many competitors to Adobe. When 0:59:33.090 --> 0:59:36.890 Adobe was on top, it was on top. When Microsoft 0:59:36.890 --> 0:59:38.810 was on top, it was on top. You have a 0:59:38.810 --> 0:59:42.770 few competitors, but you go into any enterprise. They're mostly 0:59:42.770 --> 0:59:48.370 running Microsoft Shop, they're mostly running Google Shop, whatever. I 0:59:48.370 --> 0:59:53.209 think that might start to go away. Um, it's not 0:59:53.210 --> 0:59:57.570 that I think that these major platforms won't still have 0:59:57.570 --> 1:00:00.850 a stronghold or whatever. It's just that I don't think 1:00:00.850 --> 1:00:03.850 the implementation of their software is going to look the 1:00:03.850 --> 1:00:06.890 same inside of all these different companies, and it could 1:00:06.890 --> 1:00:11.730 be for a much smaller companies that aren't legacy. Their 1:00:11.730 --> 1:00:17.450 software stack could look completely different from another startup, maybe 1:00:17.450 --> 1:00:20.770 even doing the same sort of stuff just because the founders, 1:00:20.890 --> 1:00:23.850 which they'll probably be very few, the founders will just 1:00:23.850 --> 1:00:27.190 be like, yeah, I like this style. I like terminal style. 1:00:27.190 --> 1:00:30.270 I don't like UIs, you know? I want everything to 1:00:30.310 --> 1:00:34.150 be API based. You know, I really like the color purple. 1:00:34.430 --> 1:00:37.070 I need purple and blue. I need the software to 1:00:37.110 --> 1:00:38.709 look a certain way. I need it to act a 1:00:38.710 --> 1:00:41.110 certain way. I want all the auditing and logging to 1:00:41.150 --> 1:00:43.310 go a certain way. You know, I want to be 1:00:43.310 --> 1:00:46.830 stood up only in these regions, whatever, whatever their preferences are, 1:00:47.390 --> 1:00:51.590 and the preferences for the interface for all this stuff. Custom. 1:00:52.310 --> 1:00:56.150 We're already seeing this with like custom replacements of tons 1:00:56.150 --> 1:00:58.350 of different SaaS software. I mean, this is just all 1:00:58.350 --> 1:01:02.470 over the news everywhere. It's really easy to create a 1:01:02.470 --> 1:01:05.510 version of something now. It's a big difference between being 1:01:05.510 --> 1:01:09.190 able to have that thing roll out, you know, enterprise wide, 1:01:09.190 --> 1:01:11.790 and it's stable and it's secure and all of that. Right? 1:01:11.790 --> 1:01:15.189 There's some work to be done there that'll take, you know, 1:01:15.230 --> 1:01:17.990 a couple years to sort of work its way through. 1:01:17.990 --> 1:01:22.550 But I think there's a very high chance that companies 1:01:23.070 --> 1:01:28.560 and consumers will be making their own software even if 1:01:28.560 --> 1:01:31.600 they're not making their own software. Let's be clear about that. 1:01:31.600 --> 1:01:34.560 There's 8 billion people on the planet. Not everyone's making 1:01:34.560 --> 1:01:39.240 their own software, but just just consider in 2019 or 2022, 1:01:39.520 --> 1:01:43.600 the number of people who made software products was rounded 1:01:43.600 --> 1:01:47.480 down to zero. Okay, that's the way to think about this. 1:01:47.480 --> 1:01:51.280 Rounded down to zero. Everything in the App Store, every 1:01:51.280 --> 1:01:55.720 software company rounded down to zero. If you multiply that 1:01:55.720 --> 1:02:00.600 by 1000 or 10,000 or 1 million, that is a 1:02:00.640 --> 1:02:03.999 lot more software that is. Plus, we're talking about the 1:02:04.000 --> 1:02:07.800 ability for someone to speak to their AI agent, which 1:02:07.800 --> 1:02:10.800 we've already talked about. Everyone's going to have one and say, hey, 1:02:10.840 --> 1:02:12.919 I really wish I had a workout app. You know, 1:02:12.960 --> 1:02:16.039 I've been using this one. You know, it's $19 a month. 1:02:16.040 --> 1:02:18.240 It's pretty good, but I just wish it did this. 1:02:18.280 --> 1:02:20.280 I wish it did this. I wish it did this. 1:02:20.800 --> 1:02:24.060 And boom, it's now installed on your phone. It's on 1:02:24.060 --> 1:02:28.220 your thing. The other one's uninstalled. The subscription is cancelled. 1:02:28.380 --> 1:02:31.019 That same exact thing is going to happen inside the enterprise. 1:02:31.580 --> 1:02:33.780 Now in the enterprise, it's going to take a little 1:02:33.780 --> 1:02:35.900 bit longer because that thing needs to be integrated with 1:02:35.900 --> 1:02:38.580 everything else. It's got to have the tie ins, it's 1:02:38.580 --> 1:02:41.100 got to have procurement, it's got to have legal sign off. 1:02:41.300 --> 1:02:44.500 Auditors have to sign off. There's a lot more workflow 1:02:44.500 --> 1:02:47.380 involved in being able to do that. But I can 1:02:47.380 --> 1:02:51.860 tell you this every CFO is looking at their software 1:02:51.860 --> 1:02:54.100 list and saying, how can I cancel all of this? 1:02:54.300 --> 1:02:56.220 It's just like the employee thing, how can I get 1:02:56.220 --> 1:02:59.500 to zero employees? That's what the CFO is thinking as well. 1:02:59.500 --> 1:03:03.100 How can I not pay any other company for software? 1:03:03.420 --> 1:03:07.060 How can it all be ours? Everyone wants this. The 1:03:07.060 --> 1:03:10.860 question is, you know, we couldn't do it before. We 1:03:10.860 --> 1:03:13.900 couldn't do it before because it's hard to make software. 1:03:13.900 --> 1:03:15.260 You got to maintain it. You got to do all 1:03:15.260 --> 1:03:19.300 this stuff. Well, the better AI gets, the easier that gets. Okay, 1:03:19.760 --> 1:03:28.280 So the tendency here is from common shared large few 1:03:28.320 --> 1:03:33.520 companies producing software to everyone has their own and right. 1:03:33.520 --> 1:03:36.000 And it's not going to go to the full extreme right. 1:03:36.040 --> 1:03:38.040 It's going to I'm going to say it's going to 1:03:38.040 --> 1:03:41.240 go to like a 90% extreme or an 80% extreme, 1:03:42.080 --> 1:03:48.480 highly specialized software, everyone running their own personal AI stack 1:03:48.760 --> 1:03:52.999 as a person, as a human, your AI system is 1:03:53.000 --> 1:03:58.200 going to look, feel, act, behave differently than someone else. 1:03:58.200 --> 1:04:02.080 They might even be using similar products, but your interfaces 1:04:02.080 --> 1:04:04.160 are going to be different. The way it speaks to 1:04:04.160 --> 1:04:06.560 you is going to be different. The news sources that 1:04:06.560 --> 1:04:09.200 you're filtering is going to be different. And that takes 1:04:09.200 --> 1:04:12.480 me to my next one, which Robert Putman talked about 1:04:12.480 --> 1:04:17.880 in his book Bowling Alone in, I think, 2000. When 1:04:17.880 --> 1:04:22.890 you have fragmentation like this across companies, but mostly across people. 1:04:23.130 --> 1:04:26.689 When you have fragmentation like this, that's going to be profound. 1:04:27.530 --> 1:04:30.130 So one of the things Putman talks about in his 1:04:30.290 --> 1:04:34.410 book is the reason the country was so unified before 1:04:35.490 --> 1:04:38.610 is that we were all watching the same TV shows. 1:04:38.610 --> 1:04:41.130 We're all watching the same news. We all drove the 1:04:41.130 --> 1:04:44.090 same cars, we all had the same watches. We all 1:04:44.090 --> 1:04:46.970 went to the same churches. We all lived on the 1:04:46.970 --> 1:04:49.850 same block. Maybe someone had a slightly bigger house, but 1:04:49.850 --> 1:04:53.130 we're all living in the same sort of community and 1:04:53.170 --> 1:04:57.450 everyone's consuming the same sources. Everyone's thinking similar things because 1:04:57.450 --> 1:05:00.530 we're reading the same newspapers, we're learning the same things 1:05:00.530 --> 1:05:04.090 in schools. Well, when you take what I just talked about, 1:05:04.090 --> 1:05:08.570 everyone gets custom software, everyone has custom AI, and in fact, 1:05:08.810 --> 1:05:13.050 you're not even viewing the sources. All these APIs, all 1:05:13.050 --> 1:05:16.590 these services that make up the world, you're not viewing him. 1:05:16.590 --> 1:05:20.950 There's millions of them. There's billions of them. Your AI's 1:05:20.990 --> 1:05:23.470 job is to consume all of that. Its job is 1:05:23.470 --> 1:05:27.229 to understand you and understand your needs. It consumes all 1:05:27.230 --> 1:05:30.910 those services, and then it gives you what you want. Well, 1:05:30.910 --> 1:05:33.830 what does that open up? It opens up the possibility 1:05:34.030 --> 1:05:37.950 that all of us will be having a different world experience. 1:05:38.830 --> 1:05:44.309 We believe the reality that we see. Okay. So when 1:05:44.310 --> 1:05:48.669 you watch a particular news source, if you watch particular 1:05:48.670 --> 1:05:53.750 YouTube channels, you watch particular podcasts or YouTube channels or 1:05:54.070 --> 1:05:58.430 TV shows or, you know, news channels or whatever, you 1:05:58.430 --> 1:06:01.430 think the world works that way. That is your world. 1:06:01.430 --> 1:06:05.750 That is reality to you. And if you watch this 1:06:05.750 --> 1:06:09.229 other set, which this person might live next door, they 1:06:09.270 --> 1:06:14.350 are in a completely different reality than you. They don't 1:06:14.440 --> 1:06:18.840 even know that this new, uh, dancing team from, uh, 1:06:18.840 --> 1:06:21.959 Korea is the most popular thing. And they got, uh, 1:06:21.960 --> 1:06:25.480 20 billion views on the video that just came out yesterday. 1:06:25.600 --> 1:06:27.919 And to all of your friends, this is the most 1:06:27.920 --> 1:06:30.840 important thing that's ever happened. And you just can't believe it. 1:06:30.840 --> 1:06:33.479 You've watched it over and over. You cry every time 1:06:33.480 --> 1:06:37.120 you watch it. It's the most amazing thing ever. The 1:06:37.120 --> 1:06:41.560 person next door doesn't know it exists. In fact, they're 1:06:41.560 --> 1:06:44.240 not sure if Korea is a real country based on 1:06:44.240 --> 1:06:47.560 the media they're watching. They're like, yeah, that could just 1:06:47.560 --> 1:06:53.120 be made up. This fragmentation, because of custom. Everything is 1:06:53.120 --> 1:07:00.560 going to be massive right inside of companies. The dynamic 1:07:00.560 --> 1:07:03.680 here is very strange. How do you audit software. How 1:07:03.680 --> 1:07:08.160 do you do security scans. How do you do auditing. Um, 1:07:08.160 --> 1:07:11.800 how do you do legal compliance? It's a lot easier 1:07:11.800 --> 1:07:16.900 when everyone has SAP and everyone has Microsoft three. 65. 1:07:17.020 --> 1:07:21.180 And everyone has, you know, CrowdStrike and everyone has Palo 1:07:21.180 --> 1:07:26.060 Alto firewalls and checkpoint firewalls. Right. That's a whole lot 1:07:26.100 --> 1:07:29.300 easier because people have skill sets around those things. What 1:07:29.300 --> 1:07:34.100 happens when everything is custom, right. So the transition here 1:07:34.100 --> 1:07:38.980 roughly is few things that are packaged that most everyone 1:07:38.980 --> 1:07:47.220 uses to millions of options with infinite customization. And everyone 1:07:47.220 --> 1:07:50.500 is kind of using different stuff customized just for them, 1:07:50.980 --> 1:07:56.260 and they're experiencing different realities as a result. All right, 1:07:56.260 --> 1:07:59.380 final one. I've saved this one for last. So I 1:07:59.380 --> 1:08:04.820 think the kind of ultimate use case for AI is 1:08:04.820 --> 1:08:09.019 what I'm calling ideal state management or state management or 1:08:09.060 --> 1:08:13.280 state orchestration. Not really sure on the term. Doesn't really matter. 1:08:13.920 --> 1:08:16.960 The real term will be created probably in the next 1:08:16.960 --> 1:08:24.080 year or so. The idea is. What we've been doing 1:08:24.080 --> 1:08:27.920 inside of companies, what we've been doing as people, what 1:08:27.920 --> 1:08:31.840 we've been doing as a society is just kind of yoloing. 1:08:32.200 --> 1:08:35.960 This is what we've always done. This is what humanity does. 1:08:36.200 --> 1:08:38.040 We're like, hey, you know, I need to do better 1:08:38.040 --> 1:08:40.800 next time. I need to do you know, less of 1:08:40.800 --> 1:08:43.880 this thing that's really hurting me? Companies are like, hey, 1:08:43.880 --> 1:08:46.640 we should have goals. We should have OKRs. Hey, we 1:08:46.640 --> 1:08:48.600 should have a meeting. We should plan the next year 1:08:48.600 --> 1:08:53.200 or whatever. Those documents go somewhere. Maybe they get revised, 1:08:53.200 --> 1:08:56.200 maybe they don't. But what you do see, and again, 1:08:56.200 --> 1:08:59.280 I've been doing this for so long. If you track 1:08:59.320 --> 1:09:02.680 a company's goals, um, for an average company, like a 1:09:02.680 --> 1:09:06.640 medium sized company, which there are just, you know, hundreds 1:09:06.640 --> 1:09:09.490 of thousands of these things all over the world If 1:09:09.490 --> 1:09:13.130 you look at their goals and plans and metrics over 1:09:13.130 --> 1:09:15.689 the course of a year or five years or ten years, 1:09:16.090 --> 1:09:19.730 they're just making shit up like it changes constantly. The 1:09:19.730 --> 1:09:25.010 management changes like they, uh, they come out with a 1:09:25.010 --> 1:09:27.810 set of metrics. They don't hit them, they come out 1:09:27.810 --> 1:09:30.850 right after that and they're like, uh, yeah, guess what? 1:09:30.850 --> 1:09:33.970 We got a new plan. Uh, you know, we hired 1:09:33.970 --> 1:09:36.490 this person. It's going to be amazing. Here's new metrics, 1:09:36.490 --> 1:09:38.930 here's the new plan. And it's just kind of like 1:09:39.090 --> 1:09:44.650 constant reinvention, but not because of innovation. More so just 1:09:44.650 --> 1:09:48.810 because we're winging it. And this is no fault of anybody's. 1:09:48.970 --> 1:09:51.850 Everyone's doing it very, very smart. People are doing it. 1:09:51.850 --> 1:09:55.650 It's just the reality that we live in. Okay. This 1:09:56.130 --> 1:09:59.850 is one of the fundamental changes that AI is going 1:09:59.850 --> 1:10:03.290 to bring. I think what we're about to move into 1:10:03.450 --> 1:10:07.910 is a situation that moves away from this ad hoc 1:10:08.150 --> 1:10:12.790 YOLO sort of situation to the ultimate use case for AI, 1:10:12.830 --> 1:10:18.670 which is state management. And state management starts with defining 1:10:18.670 --> 1:10:22.350 what ideal state is. This is a thing that most 1:10:22.350 --> 1:10:25.430 companies do not have. They they do not have an 1:10:25.430 --> 1:10:32.430 articulated statement, kind of like a PRD document which has 1:10:32.430 --> 1:10:37.070 multiple SOPs revolving around it that says, here is our 1:10:37.110 --> 1:10:40.310 actual mission, here are our actual goals, here are the 1:10:40.310 --> 1:10:43.390 problems we are trying to solve in the world, which 1:10:43.390 --> 1:10:46.190 is why this is our mission. Here are our goals. 1:10:46.590 --> 1:10:49.870 Here are our challenges. These are the things that are, 1:10:49.910 --> 1:10:52.470 you know, we can't hire fast enough. You know, we 1:10:52.470 --> 1:10:55.630 can't ship product fast enough. We keep getting beaten by 1:10:55.630 --> 1:10:58.390 our competitors. We need to move into Asia. We're not 1:10:58.390 --> 1:11:00.790 there yet. Like you put all your challenges, you got 1:11:00.790 --> 1:11:05.070 your risk register, you have your projects, you have your budget. 1:11:05.070 --> 1:11:10.840 You have your people and this is your unified document. 1:11:10.840 --> 1:11:15.200 This is your your grail. This is your system. This 1:11:15.200 --> 1:11:20.200 is your algorithm for what? What you're chasing. Okay? This 1:11:20.200 --> 1:11:26.040 being locked into the core DNA of the company and 1:11:26.080 --> 1:11:31.760 everything revolving around that. So I talked about all this infrastructure, this, um, 1:11:32.480 --> 1:11:37.840 graph of algorithms, that graph of algorithms needs to be 1:11:38.840 --> 1:11:45.720 feeding this system, this ideal state, this perfectly articulated and 1:11:45.720 --> 1:11:50.800 not perfectly. Nothing's gonna be perfect. This very well articulated 1:11:51.040 --> 1:11:55.560 ideal state is about to become the most important thing 1:11:56.320 --> 1:12:02.480 for companies, but also for anything, for organizations, for entities, 1:12:02.800 --> 1:12:05.540 for people. This is a big thing that I work 1:12:05.540 --> 1:12:08.700 on in my private work. If the Pi system with 1:12:08.700 --> 1:12:11.180 my Telos system, like all the stuff that we're doing 1:12:11.180 --> 1:12:14.580 in my community, we think about ideal state from the 1:12:14.580 --> 1:12:22.780 very beginning, ideal state. This concept is extraordinary. It's extraordinarily powerful. Okay. 1:12:22.820 --> 1:12:25.700 I've been using it for a long time. Not this 1:12:25.740 --> 1:12:29.060 new version that I have now, but roughly I've been 1:12:29.060 --> 1:12:33.180 using a system like this for probably ten years and 1:12:33.380 --> 1:12:36.500 there wasn't any AI. You don't need AI to sort 1:12:36.500 --> 1:12:40.380 of think about, articulate this and start moving towards it. 1:12:40.380 --> 1:12:45.300 It's very powerful. Forget any tech, just note cards, index cards, 1:12:45.340 --> 1:12:48.460 a space pen, you're off and you're going to have 1:12:48.460 --> 1:12:52.100 massive benefits from doing this. Here's where the AI comes in. 1:12:52.100 --> 1:12:55.420 And this this is like the sickest, most powerful, most 1:12:55.420 --> 1:13:00.540 exciting thing in all of AI across all AI ideas 1:13:01.060 --> 1:13:05.670 that I've ever heard about or come up with or whatever. Okay, 1:13:05.710 --> 1:13:08.670 so check this out. This is the universal game. When 1:13:08.670 --> 1:13:12.750 we meet aliens flying around the galaxy or whatever, and 1:13:12.750 --> 1:13:15.110 we tell them this thing I'm about to tell you, 1:13:15.150 --> 1:13:19.110 they're going to be like, yeah, that's what everyone does. 1:13:19.870 --> 1:13:21.390 How do you think we got here? How do you 1:13:21.390 --> 1:13:23.350 think we have all these spaceships? How do you think 1:13:23.350 --> 1:13:25.510 we have all these planets? How do you think we 1:13:25.510 --> 1:13:29.510 have Dyson spheres around all these stars? Like that's obvious. 1:13:29.550 --> 1:13:32.310 That is the algorithm, right? So this is what I 1:13:32.310 --> 1:13:35.830 call it. I call it the algorithm. The algorithm is 1:13:37.270 --> 1:13:42.750 we have ideal state. What is our current state okay. 1:13:43.070 --> 1:13:46.110 Step two what is our current state. So remember what 1:13:46.110 --> 1:13:49.390 I was talking about before about you have the graph 1:13:49.390 --> 1:13:53.230 of algorithms. You have asset management gets elevated to the top. 1:13:54.070 --> 1:13:57.950 This current state. It's the job of your AI and 1:13:57.950 --> 1:14:01.090 all the different agents and all the different systems. It's 1:14:01.090 --> 1:14:03.970 not all AI. This is deterministic code as well, right? 1:14:04.290 --> 1:14:08.050 What is the current snapshot of the ORC? What is 1:14:08.050 --> 1:14:11.689 the current state of our problems and our solutions and 1:14:11.730 --> 1:14:15.490 our products and our services? How happy are our people? 1:14:15.970 --> 1:14:20.010 How happy are our customers? What is the current churn number? 1:14:20.290 --> 1:14:23.010 What is the current products we're about to release? What 1:14:23.010 --> 1:14:32.130 are our competitors about to release? What are the market conditions? Snapshot. Snapshot. Snapshot. 1:14:32.330 --> 1:14:36.290 Ideal state. Ideal state is here. We're in Asia. We 1:14:36.290 --> 1:14:40.970 have 30% more employees, actually more likely 30% less employees. 1:14:40.970 --> 1:14:45.130 But separate topic. Um, you know, we want to be 1:14:45.130 --> 1:14:47.570 in these markets. We need to have more services. We 1:14:47.570 --> 1:14:51.410 need to have more private luncheon learns, uh, in our 1:14:51.410 --> 1:14:54.930 local community, whatever it is, all that's going to be 1:14:55.330 --> 1:14:57.970 hundreds of thousands of things or hundreds of thousands or 1:14:58.190 --> 1:15:01.670 millions of things. Whatever it is, our current state also 1:15:01.670 --> 1:15:04.070 has millions of things in it, right? Because it's going 1:15:04.070 --> 1:15:08.390 to go down to like eventually at some, some level. 1:15:09.430 --> 1:15:14.910 Here's the current open ports for all of our Kubernetes pods, right. 1:15:15.110 --> 1:15:19.910 All of our AWS infrastructure. Current state, current state over here, 1:15:19.910 --> 1:15:24.830 they're all locked down, nothing publicly available, strong authentication on them, etc.. 1:15:25.750 --> 1:15:31.430 Now here it is. Watch this. The role of AI 1:15:32.390 --> 1:15:39.430 is continuous migration continuous gap closing between current and ideal state. 1:15:41.430 --> 1:15:47.590 This works as an individual trying to lose 20 kilos 1:15:48.950 --> 1:15:52.390 which I'm trying to do. An individual trying to lose 1:15:52.390 --> 1:15:57.240 20 kilos. Trying to increase their Vo two Max trying 1:15:57.240 --> 1:16:02.600 to find a wife trying to get their art exhibited 1:16:02.600 --> 1:16:07.360 in the local gallery and eventually at MoMA in San Francisco, 1:16:07.920 --> 1:16:13.400 trying to come up with, uh, new EDM tracks so 1:16:13.440 --> 1:16:16.080 they can go to EDC and actually play live on 1:16:16.080 --> 1:16:21.880 stage trying to run a federation of planets. Okay. If 1:16:21.880 --> 1:16:24.360 we're talking about, you know, 9000 years in the future 1:16:24.360 --> 1:16:27.840 or whatever, anything you're trying to do at any scale 1:16:28.120 --> 1:16:32.320 can be managed by ideal state and current state and 1:16:32.320 --> 1:16:40.080 the migration. This is extremely, extremely powerful. I think we're 1:16:40.080 --> 1:16:46.880 about to apply this to almost everything. I think prds engineering. 1:16:47.920 --> 1:16:51.000 So I have this thing inside of the Pi platform. 1:16:51.200 --> 1:16:57.060 It's called the algorithm. I literally start the algorithm by 1:16:57.100 --> 1:17:00.780 decomposing the prompt that comes in and turning it into 1:17:00.820 --> 1:17:05.620 reverse engineered ideal state components. I break out the pieces, 1:17:05.620 --> 1:17:08.140 I look at the context from the user, and I 1:17:08.140 --> 1:17:11.300 do deep analysis, and we do research as well. This 1:17:11.300 --> 1:17:13.540 is if you have a lot of time, do research 1:17:13.540 --> 1:17:15.700 and you figure out, okay, what do they actually mean 1:17:15.700 --> 1:17:18.580 by this? Okay, I might have sent in a single 1:17:18.580 --> 1:17:21.780 one sentence prompt, but I do all this research to 1:17:21.820 --> 1:17:25.260 break it into its pieces. What is he explicitly say 1:17:25.540 --> 1:17:29.740 he wants? What is he explicitly say he doesn't want? Okay. 1:17:30.020 --> 1:17:32.620 What is he maybe mean by that? What are some 1:17:32.620 --> 1:17:36.460 common gotchas for someone trying to build a system like this? 1:17:36.460 --> 1:17:40.380 All that gets decomposed, reverse engineered and I start creating 1:17:40.380 --> 1:17:45.820 ideal state criteria. These actually go into cloud code tasks, right? 1:17:46.020 --> 1:17:48.940 The task system from cloud code, which is extraordinary. I 1:17:48.940 --> 1:17:51.260 put them all in there. Then they go into the 1:17:51.300 --> 1:17:54.270 PRD and the PRD is what we work off of, 1:17:54.470 --> 1:17:58.310 but it's all working off of ideal state so engineering 1:17:58.310 --> 1:18:01.430 can be run this way. Companies can be run this way, 1:18:01.790 --> 1:18:09.110 you managing your life, you managing your entire family's happiness. Okay. 1:18:09.390 --> 1:18:11.830 My husband, you know he needs to be more healthy. 1:18:11.990 --> 1:18:15.430 My kids, they need to have better education. They need 1:18:15.430 --> 1:18:18.270 more tutoring in this. Hey, I'm looking at the dashboard. 1:18:18.310 --> 1:18:20.910 Looks like they haven't had enough vegetables. Okay, I'm going 1:18:20.950 --> 1:18:23.750 to tell my AI we're going to order more vegetables. Hey, 1:18:23.790 --> 1:18:26.950 we haven't gone on a vacation together in a while. Hey, um, 1:18:26.950 --> 1:18:29.470 I noticed, uh, we were looking at our phones a 1:18:29.470 --> 1:18:32.390 little bit too much at the dinner table last few days. 1:18:32.470 --> 1:18:35.710 My AI notified me about that, so. Yeah, let's make 1:18:35.750 --> 1:18:40.270 sure we're all looking in each other's faces and talking about, uh, 1:18:40.270 --> 1:18:43.230 physical art. Let's make sure we do a number of 1:18:43.230 --> 1:18:47.510 vacations during the year where there's no tech involved whatsoever. 1:18:47.550 --> 1:18:52.330 We're focusing on human things and all of this. Again, 1:18:52.890 --> 1:18:56.130 the AI is managing this stuff for you because you 1:18:56.130 --> 1:18:59.650 put it in your ideal state. Okay, so if you're 1:18:59.650 --> 1:19:03.290 running an ice cream truck business, you're running a federation 1:19:03.290 --> 1:19:06.570 of planets, or you're just trying to like, find a 1:19:06.570 --> 1:19:09.730 girlfriend or a boyfriend. All of this can be managed 1:19:09.730 --> 1:19:11.930 the same way. Same way as if you're trying to 1:19:11.970 --> 1:19:16.610 launch a new SaaS replacement app, or a new workout app, 1:19:17.570 --> 1:19:20.730 or whatever you're trying to do with AI. Everything can 1:19:20.730 --> 1:19:23.170 be managed by thinking about it in this way. Now 1:19:23.170 --> 1:19:26.130 there's a lot of steps in between, but those steps 1:19:26.130 --> 1:19:28.890 can be scaffolded. Those steps can be engineered, those steps 1:19:28.890 --> 1:19:32.090 can be filled in. And the smarter the AI gets, 1:19:32.370 --> 1:19:34.490 the more it's going to be able to just know 1:19:34.970 --> 1:19:37.330 how to help you transition and build plans to help 1:19:37.330 --> 1:19:41.650 you transition. So I think this is potentially the biggest 1:19:41.650 --> 1:19:44.810 idea in AI. I don't think many people are talking 1:19:44.810 --> 1:19:47.810 about it yet, but I think this concept of ideal 1:19:47.810 --> 1:19:50.670 state is is is about to be huge. And in fact, 1:19:50.670 --> 1:19:54.870 I think Agentic platforms are about to start building it 1:19:54.870 --> 1:19:57.750 in to like everything they do. Wouldn't be surprised to 1:19:57.750 --> 1:20:04.710 see this cloud code Codex Gemini start to move towards 1:20:04.910 --> 1:20:10.630 AGI generality by doing this reverse engineering of requests into 1:20:10.630 --> 1:20:14.790 an ideal state that you then pursue. Because here's the trick. 1:20:15.390 --> 1:20:20.990 And I got this from Andrej Karpathy you can't hill climb. 1:20:21.510 --> 1:20:29.070 You can't progress towards something if you don't have failures, 1:20:29.070 --> 1:20:31.750 if you don't have a thing to hill climb against. 1:20:32.070 --> 1:20:35.430 And this is why I reverse engineer everything into ideal 1:20:35.430 --> 1:20:40.189 state criteria, because they are also my verification criteria. So 1:20:40.390 --> 1:20:44.830 what Karpathy said was previous software was you can make 1:20:44.830 --> 1:20:50.160 anything the next generation of software will be you can 1:20:50.160 --> 1:20:54.240 verify anything and I think it's very powerful. So my 1:20:54.240 --> 1:20:59.000 ideal state criteria in the algorithm within, uh, personal AI infrastructure, 1:20:59.000 --> 1:21:02.960 the open source project, it turns the ideal state into 1:21:02.960 --> 1:21:07.560 the verification criteria. And they're all discrete and they're all verifiable, 1:21:07.560 --> 1:21:10.400 yes or no. And that's what gets us to this 1:21:10.400 --> 1:21:14.680 verifiability thing that Andre was talking about. And that's what 1:21:14.720 --> 1:21:19.280 ultimately allows us to go from current state to ideal state. 1:21:19.480 --> 1:21:22.720 So really excited about this. I know this was tons 1:21:22.720 --> 1:21:26.400 of content and I just want you to think about it. 1:21:26.600 --> 1:21:30.120 It's a set of transitions. It's not just one transition. 1:21:30.120 --> 1:21:32.000 So I consider all of this to be part of 1:21:32.000 --> 1:21:35.720 the great transition. Hopefully it's a mental model. I know 1:21:35.720 --> 1:21:39.160 it includes lots of subset things, but I think all 1:21:39.160 --> 1:21:43.000 of it combined does produce a single mental model. So 1:21:43.000 --> 1:21:46.900 hopefully you can now see when all this news comes out, right? 1:21:46.940 --> 1:21:52.460 New models, new products, new services. You know, um, Co-work 1:21:52.500 --> 1:21:54.900 can now do this. Oh, it's it's it's going after 1:21:54.900 --> 1:21:57.900 the lawyers. It's going after whatever. What my goal is 1:21:57.900 --> 1:21:59.860 here is for you to be able to say, well, 1:21:59.860 --> 1:22:04.020 hold on, you know, based on this great transition model, 1:22:04.220 --> 1:22:07.340 that thing that's happening is not something, something new. It's 1:22:07.380 --> 1:22:10.140 not going to produce anxiety. Right? I'm trying to reduce 1:22:10.140 --> 1:22:14.420 your anxiety of thinking about all this change, because I 1:22:14.420 --> 1:22:17.620 believe this great transition sort of model, with all the 1:22:17.620 --> 1:22:20.820 little submodels and transitions that I was talking about, it's 1:22:20.860 --> 1:22:24.100 kind of like a container. It's a container. It's a 1:22:24.100 --> 1:22:27.500 mental model container that can reduce your anxiety if you 1:22:27.500 --> 1:22:31.939 understand this, in my opinion, if you understand this, then 1:22:31.940 --> 1:22:35.020 you just won't be surprised by things, right? And I 1:22:35.020 --> 1:22:37.820 can be surprised. Like I could have missed something, right? 1:22:37.860 --> 1:22:40.780 Obviously I could be wrong about any one of these 1:22:40.780 --> 1:22:43.670 or more, but in general, I don't think I'm going 1:22:43.710 --> 1:22:46.230 to be surprised by this. I put the stuff into 1:22:46.230 --> 1:22:49.710 the book in 2016. It is coming true. I think 1:22:49.710 --> 1:22:52.270 it's a natural progression for the stuff to be happening. 1:22:52.510 --> 1:22:54.670 Like who knows how it's going to happen, when it's 1:22:54.670 --> 1:22:56.270 going to happen, which company is going to do it. 1:22:56.270 --> 1:22:59.150 You can't predict that stuff. It's impossible to predict, but 1:22:59.150 --> 1:23:03.750 the direction I think is possible to to see where 1:23:03.750 --> 1:23:09.110 it's potentially going. And that gives you a container, a 1:23:09.110 --> 1:23:12.590 mental model to be like, hmm, okay, this all sort 1:23:12.590 --> 1:23:16.310 of makes sense inside of this framework. So you're not 1:23:16.310 --> 1:23:20.150 spooked out by like all these new models coming out, 1:23:21.070 --> 1:23:23.910 new products coming out. It's like, oh, this person's going 1:23:23.950 --> 1:23:28.110 to lose their job, that person. These industries are being disrupted. No. 1:23:28.150 --> 1:23:30.510 If you have this mental model, I think you're more 1:23:30.510 --> 1:23:33.310 likely to just be like, ah, yeah, that seems to 1:23:33.310 --> 1:23:36.310 be the way it's going. And, uh, you can buckle 1:23:36.310 --> 1:23:39.190 down and just move forward. So hopefully this has been 1:23:39.190 --> 1:23:41.910 helpful and, uh, we'll see you in the next one.