WEBVTT - Economy of Tomorrow 0:00:13.880 --> 0:00:15.160 This is Wall Street Week. 0:00:15.360 --> 0:00:19.239 I'm David Weston bringing you stories of capitalism this week 0:00:19.280 --> 0:00:22.799 from Detroit, the home of Henry Ford, where we travel 0:00:22.880 --> 0:00:26.479 to see firsthand what President Trump's trade policies are doing 0:00:26.560 --> 0:00:29.639 four and two the auto industry, and to talk with 0:00:29.720 --> 0:00:33.320 Ford's CEO Jim Farley about what he calls the essential 0:00:33.360 --> 0:00:38.400 economy that needs our attention. Plus, from Australia, we bring 0:00:38.440 --> 0:00:40.279 you the story of a nation trying to make a 0:00:40.320 --> 0:00:45.440 big transition from natural resources to innovation, and we begin 0:00:45.479 --> 0:00:48.960 a three part series on AI applied to the real world. 0:00:49.400 --> 0:00:52.360 We have covered the excitement about artificial intelligence and the 0:00:52.479 --> 0:00:55.920 massive demands for capital and for power, but where is 0:00:55.960 --> 0:00:59.000 it being used right now in ways that may justify 0:00:59.040 --> 0:01:02.600 the excitement. We turn first to healthcare, where AI is 0:01:02.680 --> 0:01:06.520 already helping our doctors make diagnoses and develop treatments that 0:01:06.640 --> 0:01:11.720 otherwise might be beyond their reach. But we start with 0:01:11.760 --> 0:01:14.880 the jobs market, where soft data are holding the Federal 0:01:14.920 --> 0:01:18.160 Reserve back from cutting rates more and cutting them faster. 0:01:18.720 --> 0:01:22.119 Steve Rattner is chair and CEO will It Advisors, which 0:01:22.160 --> 0:01:25.880 manages the personal and philanthropic money of Michael Bloomberg, our 0:01:25.959 --> 0:01:29.600 founder and majority shareholder. Steve has been watching the US 0:01:29.600 --> 0:01:35.440 economy closely as an investor and gave us his outlook. Steve, 0:01:35.520 --> 0:01:38.759 the labor market is really a top and center. We've 0:01:38.760 --> 0:01:40.720 got a prior problem before we get to the state 0:01:40.760 --> 0:01:43.000 of the labry, which is one are the numbers because 0:01:43.040 --> 0:01:46.440 of the government shutdown. Why are we shutting down the government. 0:01:46.480 --> 0:01:48.400 Whether it's the right strategy or not, I don't know, 0:01:48.440 --> 0:01:50.960 but there's a legitimate purpose in what the Democrats are 0:01:51.000 --> 0:01:54.080 trying to do, which is healthcare. What most people don't 0:01:54.160 --> 0:01:57.840 understand is that in Trump one point zero, Trump tried 0:01:57.840 --> 0:02:01.040 to kill Obamacare overtly through the front door, so to speak, 0:02:01.040 --> 0:02:04.120 and then John McCain famously voted it down. This time around, 0:02:04.120 --> 0:02:06.560 you've not heard them talk about Obamacare or the ACA 0:02:06.640 --> 0:02:08.760 or any of this stuff, But the fact is they've 0:02:08.760 --> 0:02:10.760 been trying to kill healthcare. There's a lot of stuff 0:02:10.760 --> 0:02:14.160 in the One Big, Beautiful Bill, but there's also this 0:02:14.240 --> 0:02:16.160 provision that would expire at the end of the year 0:02:16.160 --> 0:02:19.720 that provides what are called enhanced premium tax credits that 0:02:19.800 --> 0:02:22.359 people making less than one hundred and fifty thousand dollars 0:02:22.360 --> 0:02:24.960 a year, and particularly those making less than sixty five 0:02:25.040 --> 0:02:27.200 thousand dollars a year that are going to expire at 0:02:27.200 --> 0:02:29.359 the end of this year. This would cost millions of 0:02:29.400 --> 0:02:32.600 Americans their healthcare and it would raise premiums by eighteen 0:02:32.680 --> 0:02:35.040 percent for as many as twenty million Americans who buy 0:02:35.080 --> 0:02:36.520 their insurance on the exchanges. 0:02:36.600 --> 0:02:39.040 As soon as you say it was enhanced premium tax credit, 0:02:39.320 --> 0:02:42.240 you sort of lose me because nobody is sort of saying, 0:02:42.480 --> 0:02:44.120 should we do away with Obamacare or not? 0:02:44.960 --> 0:02:46.400 Well, that's exactly their strategy. 0:02:46.440 --> 0:02:49.040 And the Democrats keep saying this is about healthcare, but 0:02:49.120 --> 0:02:52.000 I don't think the average American really understands about healthcare. 0:02:52.160 --> 0:02:54.480 There are twenty some odd million, twenty twenty two million 0:02:54.520 --> 0:02:57.680 Americans who buy their insurance on the exchanges. The insurance 0:02:57.680 --> 0:03:00.680 companies have already filed premium requests for next year. They 0:03:00.680 --> 0:03:02.960 have to do it by October first, and they're asking 0:03:03.000 --> 0:03:05.680 for an average of an eighteen percent increase in premiums 0:03:06.000 --> 0:03:09.040 for people who buy that insurance because they expect so 0:03:09.080 --> 0:03:11.160 many people to drop out because of the loss of 0:03:11.200 --> 0:03:13.799 these credits that they raised. So people are going to 0:03:13.840 --> 0:03:16.280 find this out now. Now you remember that the Medicaid 0:03:16.840 --> 0:03:20.919 cuts don't take effect after the midterms. This takes effect now, 0:03:21.360 --> 0:03:25.080 and so people may not appreciate it today and support 0:03:25.080 --> 0:03:27.720 the Democrats for that reason, but by the end of 0:03:27.760 --> 0:03:29.799 this year, they're going to find out what this all means. 0:03:30.200 --> 0:03:32.720 So let's turn to the question of the labor market overall. 0:03:33.040 --> 0:03:36.040 You follow this closely, where is it? Is it as 0:03:36.040 --> 0:03:37.640 soft as some people think Right now? 0:03:38.480 --> 0:03:40.960 It's a what people call a no hire, no fire 0:03:41.120 --> 0:03:43.600 labor market. It's kind of frozen. We saw in the 0:03:43.600 --> 0:03:46.560 ADP numbers this week, which are one indicator. They only 0:03:46.560 --> 0:03:49.920 show you the private side of the market, but they're 0:03:50.120 --> 0:03:53.760 sophisticated numbers and no reason to doubt them that hiring 0:03:54.520 --> 0:03:55.640 has really really now. 0:03:55.880 --> 0:03:57.040 I think for two reasons. 0:03:57.400 --> 0:04:00.360 One is uncertainty about the economy and tariffs and all 0:04:00.400 --> 0:04:03.000 the things we've been talking about for so long, and 0:04:03.040 --> 0:04:06.120 the other, potentially is AI. We know that AI is 0:04:06.200 --> 0:04:09.240 going to have a major effect. You saw Doug McMillan 0:04:09.280 --> 0:04:12.280 of Walmart this week, for example. He has said privately 0:04:12.320 --> 0:04:14.280 to people that he thinks of his two point one 0:04:14.360 --> 0:04:16.440 or two point two million people, he might have a 0:04:16.480 --> 0:04:19.679 million people working five years down the road or something 0:04:19.800 --> 0:04:22.360 like that. It's going to have a major effect on 0:04:22.400 --> 0:04:24.880 our country. Ultimately, I think for the better, but with 0:04:24.960 --> 0:04:26.760 a lot of disruption along the way. And I think 0:04:26.760 --> 0:04:28.800 we're beginning to see those signs. 0:04:29.120 --> 0:04:32.800 If the labor markets are slowing at whatever rate, what 0:04:32.839 --> 0:04:36.599 does that tell the BED Because given the reasons they're slowing, 0:04:37.120 --> 0:04:39.240 do short term interest rates have any effect on that? 0:04:40.680 --> 0:04:43.400 Well, in theory they do. It takes a while. 0:04:44.000 --> 0:04:47.000 It's not the most direct transmission mechanism, but obviously if 0:04:47.040 --> 0:04:50.000 you lower the cost of capital, business goes out and 0:04:50.040 --> 0:04:52.400 borrows more, spends more. It's good for the stock market. 0:04:52.440 --> 0:04:55.080 As we have seen. That creates a wealth effect. People 0:04:55.080 --> 0:04:58.119 who have stocks spend more, and that's the whole essence 0:04:58.120 --> 0:05:00.720 of monetary policy. I thought you're going to ask me 0:05:00.720 --> 0:05:02.760 if you don't mind my saying, is that, as Powell 0:05:02.800 --> 0:05:05.240 said in his last press conference, the problem he has 0:05:05.240 --> 0:05:06.760 at the moment is he has to worry about both 0:05:06.760 --> 0:05:08.719 sides of his mandate. Usually he has to worry about 0:05:08.720 --> 0:05:10.920 an employment or inflation. Right now he has to worry 0:05:10.960 --> 0:05:14.120 about both. We're not really in stagflation yet, but we 0:05:14.200 --> 0:05:16.839 have bits of that on both sides of the mandate. 0:05:16.920 --> 0:05:19.000 I think the one thing that maybe hiding in all 0:05:19.040 --> 0:05:23.120 this is again AI AI has the potential and Trump, 0:05:23.200 --> 0:05:26.280 of course, did nothing to enhance AI, particularly other than 0:05:26.400 --> 0:05:29.360 doing a lot of press conferences with Sammulten and whatnot. 0:05:29.560 --> 0:05:31.920 But AI has the potential to be a game changer. 0:05:32.000 --> 0:05:34.839 If we can raise our productivity rate by half a 0:05:34.839 --> 0:05:37.120 percentage point or a percentage point, it would have a 0:05:37.160 --> 0:05:40.240 dramatic effect on growth. It would allow for more growth 0:05:40.279 --> 0:05:42.840 without more inflation. I think that if the Fed were 0:05:42.880 --> 0:05:45.799 to follow what Trump and Myron want and cut interest 0:05:45.839 --> 0:05:48.360 rates by two hundred basis points, you'd see a fair 0:05:48.360 --> 0:05:50.880 amount of inflation. And right now we're not even a 0:05:50.960 --> 0:05:52.360 two percent, as we both know. 0:05:52.800 --> 0:05:55.599 Prison Trump came to office promising to help an industry 0:05:55.640 --> 0:05:58.839 you know, well, you helped restructure it under President Obama, 0:05:58.920 --> 0:06:02.080 the auto industry. What has been the net effect of 0:06:02.120 --> 0:06:03.280 the various policies. 0:06:03.400 --> 0:06:05.480 I think if you talk to auto executives, and some 0:06:06.160 --> 0:06:07.880 of them have said this more or less publicly, some 0:06:07.920 --> 0:06:10.440 have said it more privately, I don't think really much 0:06:10.480 --> 0:06:13.000 of anything good has come out of this, and the 0:06:13.000 --> 0:06:15.080 stock market, if you look at the share prices, would 0:06:15.120 --> 0:06:17.440 agree with that much of anything good has come out 0:06:17.440 --> 0:06:17.640 of this. 0:06:17.680 --> 0:06:18.719 For the auto industry. 0:06:19.760 --> 0:06:22.719 I think Mary Barrow of GM has been reasonably candid 0:06:22.800 --> 0:06:26.360 about the challenges opposes for them. As Jim farley Ford 0:06:26.400 --> 0:06:29.320 has pointed out, GM imports more of its cars from 0:06:29.440 --> 0:06:33.159 Mexico and Canada than FOUR does, so that is a 0:06:33.200 --> 0:06:36.320 problem for them. The taxes on the import taxes on 0:06:36.600 --> 0:06:39.320 auto parts is a huge problem for them. But also 0:06:39.440 --> 0:06:43.200 the stop start policies on electrification and cafe standards and 0:06:43.240 --> 0:06:45.479 so on, where you go from one administration to the 0:06:45.520 --> 0:06:47.760 other and you're trying to make five year capital plans 0:06:47.800 --> 0:06:50.240 and product plans and then suddenly there's a u turn 0:06:50.320 --> 0:06:52.320 in policies that's not good for them. 0:06:52.600 --> 0:06:55.400 You pointed outing is really striking. On the one hand, 0:06:55.520 --> 0:06:59.360 the expiration this week, the ev tax credits in another hand, 0:06:59.400 --> 0:07:02.440 the cafe say so sort of giving them the one 0:07:02.480 --> 0:07:04.800 hand and taking away on the other hand. So net 0:07:04.920 --> 0:07:07.320 net is that going to help the auto industry. 0:07:07.680 --> 0:07:10.280 Well, but what those two things do is it drives 0:07:10.320 --> 0:07:14.080 no pun intended the auto industry from producing small electric 0:07:14.200 --> 0:07:17.240 electric or very fuel efficient cars for producing larger cars 0:07:17.240 --> 0:07:18.920 that are less fuel efficient. So then they have to 0:07:18.960 --> 0:07:22.920 retool and reorganize all their production plans. And sure, maybe 0:07:22.920 --> 0:07:25.960 if those policies stay in place indefinitely, it would be 0:07:26.000 --> 0:07:28.440 good for them. Bigger cars tend to have higher profit margins, 0:07:28.480 --> 0:07:30.880 they're easier for us to compete against the foreign cars 0:07:30.920 --> 0:07:33.200 that are where they can make smaller cars more efficiently, 0:07:33.200 --> 0:07:35.920 and so on and so forth. But we will have 0:07:35.960 --> 0:07:39.679 another president in three years and this may all change again, 0:07:39.800 --> 0:07:43.680 and so it's it's not really great for American prosperity 0:07:43.680 --> 0:07:46.880 and capitalism to have these kind of stop start policies. 0:07:47.000 --> 0:07:49.160 I think the government does have an important role in 0:07:49.400 --> 0:07:53.360 policy where they're what they call externalities, where they're effects 0:07:53.120 --> 0:07:55.840 of what a private actor does that aren't captured in 0:07:55.880 --> 0:07:59.600 the price mechanism in the market. And emissions and climate 0:07:59.640 --> 0:08:02.440 are the best example of that that. If you just 0:08:02.560 --> 0:08:04.760 let auto companies make whatever they want, you didn't have 0:08:04.800 --> 0:08:07.559 cafe standards, you didn't have ev tax credits, and so forth, 0:08:08.080 --> 0:08:11.240 we have bigger polluting cars. But if I were a god, 0:08:11.320 --> 0:08:13.040 I would have done this very differently. I would have 0:08:13.040 --> 0:08:15.960 done it using the tax system, big tax on gasoline, 0:08:16.000 --> 0:08:19.720 things like that to incentivize people and companies to move 0:08:19.760 --> 0:08:22.920 in the right direction, not these sort of very Jerry 0:08:23.000 --> 0:08:27.480 rig complicated, on again, off again regulatory policies. Why do 0:08:27.560 --> 0:08:30.480 we do it this way? Because consumers don't see it. 0:08:30.520 --> 0:08:32.800 They don't see the costs of cafe standards. It's not 0:08:32.840 --> 0:08:34.080 part of the American culture. 0:08:34.280 --> 0:08:37.520 To come full circle, what do these policies and policy 0:08:37.600 --> 0:08:41.160 changes mean for employment in the auto industry, including the 0:08:41.160 --> 0:08:41.760 parts business. 0:08:41.880 --> 0:08:42.840 Well, let's just step back. 0:08:42.880 --> 0:08:46.040 I think not just the policies, but the auto industry, 0:08:46.080 --> 0:08:48.000 and I did spend some time in the auto industry. 0:08:48.440 --> 0:08:52.160 The auto industry has some really significant challenges. When you 0:08:52.160 --> 0:08:54.000 look at what the Chinese are doing, and yes, we 0:08:54.040 --> 0:08:56.120 have huge tariffs on their cars, so they don't come 0:08:56.160 --> 0:08:58.280 here at the moment, But when you look at what 0:08:58.280 --> 0:09:00.560 they're able to do and the prices at which they're 0:09:00.559 --> 0:09:03.559 able to produce and sell cars efficiently, and how good 0:09:03.600 --> 0:09:05.480 the cars have become. They didn't have to make cars 0:09:05.480 --> 0:09:07.440 for a long time. We kind of taught them how 0:09:07.480 --> 0:09:09.680 to make cars. At the wage rates we pay. With 0:09:09.720 --> 0:09:13.240 the other cost structure that we have in this country, 0:09:12.600 --> 0:09:14.760 it is going to be it would be very tough 0:09:14.760 --> 0:09:17.080 for us to compete on a completely level playing field. 0:09:17.120 --> 0:09:20.959 So the question then becomes how much protectionism, if you will, 0:09:21.280 --> 0:09:23.280 do you want to afford our auto industry, because we 0:09:23.320 --> 0:09:25.120 think it's important to have an auto industry. 0:09:25.280 --> 0:09:27.520 If you talk to auto executives, as I know you do, 0:09:27.800 --> 0:09:29.920 they say, it's not a completely level playing field. Can 0:09:30.000 --> 0:09:33.959 we out innovate China to be able to overcome whatever 0:09:33.960 --> 0:09:34.920 substances being given. 0:09:35.080 --> 0:09:36.960 I think even if we gave the subsidies, I think 0:09:37.000 --> 0:09:40.560 you'd find that the Chinese can produce better, cheaper cars 0:09:40.600 --> 0:09:44.440 than we can. I think their innovation is exceptional. I 0:09:44.440 --> 0:09:47.280 think their costs of production is exceptional. 0:09:48.120 --> 0:09:50.560 One of the advantages China has is a very large 0:09:50.600 --> 0:09:54.760 domestic market. Are we seeing sort of an epical change actually, 0:09:54.800 --> 0:09:57.160 from a world in which the United States was really 0:09:57.200 --> 0:09:59.760 a leader in auto production to one where we're not 0:09:59.800 --> 0:10:02.120 going to be We're going to be the equivalent of 0:10:02.160 --> 0:10:02.800 a Europe. 0:10:02.920 --> 0:10:04.320 Well, I think we'll be somewhere in between. 0:10:04.480 --> 0:10:08.760 I think Europe's car industry has had many, many struggles, 0:10:08.840 --> 0:10:11.720 and the extent they've been successful, it's heavily been the 0:10:11.720 --> 0:10:17.280 German luxury cars exporting to China. Ironically, but yeah, look, 0:10:17.400 --> 0:10:19.679 China does have, as you say, one point three billion people, 0:10:19.720 --> 0:10:22.840 and they're increasingly prosperous and able to buy cars. You know, 0:10:22.880 --> 0:10:25.160 over fifty percent of the cars sold in China now 0:10:25.200 --> 0:10:27.840 are evs. I mean they are in a whole other 0:10:28.000 --> 0:10:31.520 world compared to us in the transition away from internal 0:10:31.520 --> 0:10:33.679 combustion engines into electrification. 0:10:35.600 --> 0:10:38.200 Coming up, we continue the discussion of how the auto 0:10:38.240 --> 0:10:40.520 industry is varing and what needs to be done to 0:10:40.600 --> 0:10:43.800 ensure the strength of industries like it that make things 0:10:44.240 --> 0:10:56.400 with Jim Farley, President and CEO of the Ford Motor Company. 0:11:00.320 --> 0:11:03.840 Is a story about the essential economy. That's what Ford 0:11:03.960 --> 0:11:06.600 CEO Jim Farley calls the part of the US market 0:11:06.640 --> 0:11:10.480 where things get built, moved, or fixed. This week he 0:11:10.480 --> 0:11:13.200 held a series of meetings at the restored Michigan Central 0:11:13.240 --> 0:11:16.079 Rail station in Detroit, and we traveled there to hear 0:11:16.160 --> 0:11:20.280 directly from him what needs to be done. 0:11:20.440 --> 0:11:23.800 Ninety five million people huge part of our GDP that 0:11:23.920 --> 0:11:25.040 basically build things. 0:11:25.280 --> 0:11:26.679 Think about factory. 0:11:26.240 --> 0:11:32.000 Workers, construction workers, the people who move things, rail workers, 0:11:32.160 --> 0:11:37.120 truck drivers, and the people that fixed things. Think about plumbers, electricians, 0:11:37.679 --> 0:11:41.760 people who are mechanics on your vehicle. That's the economy 0:11:41.920 --> 0:11:46.000 is huge, and we have about a million people shortage today. 0:11:46.520 --> 0:11:49.200 What's going on there? Why do why we short that 0:11:49.240 --> 0:11:50.360 many essential workers. 0:11:50.920 --> 0:11:54.400 It's a combination of things, David, But I think the 0:11:54.400 --> 0:11:58.040 biggest thing is the societal prestige of these jobs has 0:11:58.160 --> 0:12:00.960 changed from our parents and our grandpay parents. You know, 0:12:01.120 --> 0:12:03.200 people all want to go to a four year degree 0:12:03.240 --> 0:12:05.400 and then they want to go into the white collar workforce. 0:12:05.640 --> 0:12:08.920 That's what my grandfather told me. He was a factory worker. Hey, Jim, I. 0:12:08.840 --> 0:12:11.080 Don't want you to have to work this hard, you know, 0:12:11.160 --> 0:12:14.559 go to college. And the irony of the irony is 0:12:14.679 --> 0:12:17.280 we have all these data centers, all this new technology 0:12:17.480 --> 0:12:21.959 or all out still requires electricians, construction workers, you know, 0:12:22.120 --> 0:12:25.000 and we have this huge shortage. The second thing is 0:12:25.120 --> 0:12:29.320 our country has really pulled back on investing in education programs, 0:12:29.360 --> 0:12:31.840 the local college support. 0:12:31.760 --> 0:12:33.120 For these kinds of jobs. 0:12:33.200 --> 0:12:36.120 There's no high schools around vocational programs anymore. 0:12:36.160 --> 0:12:38.480 That's the exception, not the rule anymore. 0:12:38.800 --> 0:12:43.360 I think the last thing is permitting all the regulatory 0:12:43.440 --> 0:12:46.959 requirements on these jobs is really tough, especially for small business, 0:12:47.360 --> 0:12:50.120 and it just makes these jobs hard and complicated. 0:12:50.360 --> 0:12:53.560 How does AI fit with the essential economy? 0:12:53.840 --> 0:12:56.360 Well, I hope that it will be a help, but 0:12:56.480 --> 0:12:59.240 it's hard to say that today we're going to have 0:12:59.280 --> 0:13:02.400 a lot of wins for the essential economy of the I. 0:13:02.520 --> 0:13:05.000 For example, we have to build all these data centers 0:13:05.040 --> 0:13:09.839 all the transmission lines thus can require plumbers, you know, electricians, 0:13:10.320 --> 0:13:13.840 a lot of technical people to do all that construction workers. 0:13:14.200 --> 0:13:17.360 But on the other hand, over the last twenty years, 0:13:17.800 --> 0:13:21.679 the essential economy productivity has actually gone down. Wise, white 0:13:21.679 --> 0:13:24.920 collar productivity has gone up twenty to thirty percent. That's 0:13:24.960 --> 0:13:28.640 like for the average essential worker, that's like thirty thousand 0:13:28.679 --> 0:13:32.000 dollars a year. So we don't have a good track 0:13:32.040 --> 0:13:35.800 wreck here here of applying new technology like AI to 0:13:35.880 --> 0:13:37.760 make these jobs more productive. 0:13:38.280 --> 0:13:40.520 It, you know, automation, things like that. 0:13:40.840 --> 0:13:44.360 Those innovations really took jobs out of the job market 0:13:44.440 --> 0:13:46.640 and out of the essential economy. 0:13:47.280 --> 0:13:48.199 I think we'd have to. 0:13:48.480 --> 0:13:52.679 Twist the technology through the lens of these critical jobs 0:13:52.840 --> 0:13:54.319 for it to be the opposite. 0:13:54.559 --> 0:13:57.480 The government plays a central role in turning around the 0:13:57.600 --> 0:14:02.120 essential economy, with President Trump emphasize manufacturing and the need 0:14:02.200 --> 0:14:05.320 for trade schools. What Farley has yet to see the 0:14:05.360 --> 0:14:08.640 real results, including with those auto tariffs. 0:14:09.440 --> 0:14:10.760 It's too early to tell. 0:14:11.000 --> 0:14:13.760 I haven't seen a lot of new plant announcements of 0:14:13.800 --> 0:14:17.000 my competitors who import. You know, our market is fifty 0:14:17.000 --> 0:14:20.200 percent import So what I was looking for is how 0:14:20.240 --> 0:14:22.400 many of those imported vehicles are now being built in 0:14:22.400 --> 0:14:25.400 the US. We haven't seen too many announcements. What hasn't 0:14:25.480 --> 0:14:27.760 changed is Ford's commitment to the US. We build eighty 0:14:27.800 --> 0:14:32.640 percent of our vehicles here with the largest employer UAW workers, 0:14:32.960 --> 0:14:35.680 and where the largest export are by far from the US. 0:14:36.520 --> 0:14:38.680 I would say it is too early to. 0:14:38.600 --> 0:14:42.760 Tell, but I'm seeing the tone at the top in 0:14:42.880 --> 0:14:48.920 DC be very thoughtful about the parts tariffs, which more 0:14:48.960 --> 0:14:52.400 than twenty percent of our tariff of our profits has 0:14:52.480 --> 0:14:52.960 lost on. 0:14:52.920 --> 0:14:53.960 These parts tariffs. 0:14:54.080 --> 0:14:56.560 So yes, we make in the US, but we import 0:14:56.600 --> 0:14:59.120 parts from all around the world because some of them, 0:14:59.160 --> 0:15:01.720 like wiring looms, we can't even buy in the US. 0:15:02.480 --> 0:15:05.960 The tax the tariffs on those parts, maybe twenty percent 0:15:06.040 --> 0:15:08.680 of your F one fifty is twenty percent of our 0:15:08.720 --> 0:15:12.360 profit gone. And I'm seeing a tone at the top 0:15:12.720 --> 0:15:16.120 in DC where they are listening to us very carefully 0:15:16.400 --> 0:15:21.480 because they understand long term that twenty two billion dollars 0:15:21.480 --> 0:15:24.680 of headwind for US will not be good for the US, 0:15:24.880 --> 0:15:27.600 especially for a company like Ford. I don't know what 0:15:27.600 --> 0:15:29.840 they're going to do, but boy if we had a 0:15:29.840 --> 0:15:32.680 lot of conversations with Commerce and the President about this, 0:15:33.760 --> 0:15:37.040 and I remain very optimistic that they'll make the right adjustments. 0:15:37.240 --> 0:15:39.880 If they make the right adjustments on tariffs, with the 0:15:39.920 --> 0:15:41.840 EPA rule, some of the. 0:15:41.760 --> 0:15:44.840 Tax changes like PTC, I think. 0:15:44.840 --> 0:15:47.840 We will see a much stronger US industry in the 0:15:47.880 --> 0:15:49.880 coming years, and I'm sure hopeful of that. 0:15:50.760 --> 0:15:53.640 When we spoke to Farley a year ago, before President 0:15:53.680 --> 0:15:57.640 Trump's election, the auto industry was working and investing hard 0:15:57.760 --> 0:16:01.800 to meet government targets for electric vehicles. Since then, EB 0:16:01.960 --> 0:16:05.720 policy has been turned on its head, making automakers' lives 0:16:05.880 --> 0:16:10.520 dramatically more complicated. Roger Penske, founder of the Penske Corporation 0:16:10.640 --> 0:16:14.000 and owner of IndyCar, says it's the result of ignoring 0:16:14.080 --> 0:16:15.520 what the customer wants. 0:16:15.880 --> 0:16:18.960 No one asked the customer what they wanted number one 0:16:18.960 --> 0:16:22.560 and number two, we didn't have the infrastructure, and the 0:16:22.640 --> 0:16:26.880 expectation on range wasn't there. So everything came together the 0:16:26.920 --> 0:16:31.560 way they sold electric vehicles with government support. The seventy 0:16:31.600 --> 0:16:34.800 five hundred dollars is going away. When you think about that, 0:16:34.800 --> 0:16:37.600 that's fifty billion that the government is going to be 0:16:37.640 --> 0:16:40.880 able to put, hopefully towards something that's better off for 0:16:40.960 --> 0:16:43.480 our economy and better off for the country. But I 0:16:43.480 --> 0:16:46.520 would say they're going through a transition, all of them, 0:16:46.680 --> 0:16:50.480 said Barry bearra Has Farley has you know, they're moving 0:16:50.560 --> 0:16:53.000 to lower cost EV vehicles. 0:16:53.440 --> 0:16:56.640 You at Ford, like the other automakers, have really made 0:16:56.680 --> 0:17:00.800 a lot of capital investment commitments for an EV. What 0:17:01.000 --> 0:17:02.240 happens to those investments? 0:17:02.280 --> 0:17:02.560 Now? 0:17:02.920 --> 0:17:05.760 What's an important question for our country. First of all, 0:17:05.840 --> 0:17:10.080 Ford never talked about an all electric Ford we always 0:17:10.080 --> 0:17:13.479 set a customer choice. We have hybrid the f one 0:17:13.560 --> 0:17:16.320 fifty best selling vehicle in the United States. Almost a 0:17:16.400 --> 0:17:20.119 third is now hybrid. So we never bet the farm 0:17:20.160 --> 0:17:23.160 on electrification, and we were a first mover. We've been 0:17:23.240 --> 0:17:25.320 number two to TESTAF I think for three years now. 0:17:26.000 --> 0:17:30.040 But that is the biggest next up question. How does 0:17:30.080 --> 0:17:37.200 Ford adjustice assets from moving to making large scale battery operations. 0:17:37.240 --> 0:17:38.639 We have three battery. 0:17:38.280 --> 0:17:41.400 Plants in Kentucky and Tennessee, another one here in Michigan 0:17:41.480 --> 0:17:47.480 and Marshall, so four plus two assembly plants dedicated to electrics. 0:17:47.840 --> 0:17:49.680 You know, what do we do with those assets. 0:17:50.080 --> 0:17:51.719 I'm not going to go into the details, but all 0:17:51.760 --> 0:17:55.000 I say is they're some of the best factories we've 0:17:55.040 --> 0:17:59.399 ever built. We've designed them flexibly and we'll make the 0:17:59.480 --> 0:18:00.800 right decision for the company. 0:18:01.000 --> 0:18:02.680 We're not going to allow. 0:18:02.400 --> 0:18:06.040 These to be mothballed, and we have more decisions to 0:18:06.040 --> 0:18:08.280 make on those battery plants and assembly plants in the 0:18:08.320 --> 0:18:11.640 coming months and years with this change, because a year 0:18:11.680 --> 0:18:14.240 ago we didn't see the customer like we do today, 0:18:14.760 --> 0:18:18.119 and boy are we seeing customers by hybrids and partial 0:18:18.119 --> 0:18:22.280 electric solutions. So America is moving more to low co 0:18:22.520 --> 0:18:27.960 two footprint powertrains, but they are not accepting full electrics 0:18:28.000 --> 0:18:30.320 anywhere near what we thought when you. 0:18:30.280 --> 0:18:32.680 Talk about some of the policies coming out of Washington. 0:18:32.760 --> 0:18:34.399 On the one hand, as you mentioned, there's the seventy 0:18:34.400 --> 0:18:36.320 five hundred dollars credit, yeah, the way this way, Yes. 0:18:36.480 --> 0:18:38.560 On the other hand, you've got the cafe Yes. So 0:18:38.720 --> 0:18:41.199 there's some gives and takes on this. How does that 0:18:41.200 --> 0:18:42.879 all come up for the Ford Motor Company. 0:18:43.600 --> 0:18:46.439 Well, it's accelerating this awkward moment. 0:18:46.640 --> 0:18:49.600 Basically, the seventy five hundred dollars, which could be up 0:18:49.680 --> 0:18:53.280 to you know, twenty thirty percent of the purchase price 0:18:53.480 --> 0:18:56.240 is gone and makes evs a lot more expensive. 0:18:56.440 --> 0:18:57.760 But think about Ford. 0:18:57.520 --> 0:19:00.440 As a global company. We're not just the most American company. 0:19:00.560 --> 0:19:03.880 We compete around the globe. And in China. 0:19:03.640 --> 0:19:06.080 Fifty percent of the vehicles are electric. In Europe is 0:19:06.160 --> 0:19:06.880 thirty percent. 0:19:07.359 --> 0:19:10.000 So we have to set up our industrial system to 0:19:10.000 --> 0:19:13.120 compete not just in the four or five percent here 0:19:13.160 --> 0:19:16.919 in America with maybe a higher mix of hybrids or erevs, 0:19:17.440 --> 0:19:20.679 but in China or the rest of the world. We 0:19:20.760 --> 0:19:24.440 still have to make this ev future profitable. To do that, 0:19:24.600 --> 0:19:26.720 we made a big bet four years ago. We did 0:19:26.720 --> 0:19:29.040 in secret. We came up with a small group of 0:19:29.080 --> 0:19:32.520 people on the West Coast and we redesigned the way 0:19:32.560 --> 0:19:34.600 we make and design a vehicle. We call it the 0:19:34.680 --> 0:19:37.119 Universe Electric Vehicles, kind of a model t kind of 0:19:37.119 --> 0:19:39.520 moment for the company. That vehicle will be coming out 0:19:39.520 --> 0:19:41.520 in about a year and a half. That is our 0:19:41.640 --> 0:19:44.800 way of competing with BYD's costs they've been added for 0:19:44.840 --> 0:19:48.199 twenty years. These markets are huge outside the US. We 0:19:48.280 --> 0:19:52.399 still have to be successful globally. We can't just draw 0:19:52.440 --> 0:19:54.639 a big wall around the US and say that's what 0:19:54.760 --> 0:19:55.879 Ford Motor Company is. 0:19:56.440 --> 0:19:58.840 Another subject we discussed a year ago was China, Yes, 0:19:58.880 --> 0:20:02.199 and what's going on? Bring us forward one year? For 0:20:02.240 --> 0:20:03.159 example with BYD. 0:20:03.640 --> 0:20:06.520 Yeah, I mean a year ago, Tessa was the number 0:20:06.520 --> 0:20:10.240 one seller globally electric vehicles and VW was a top 0:20:10.320 --> 0:20:13.320 rand in China. The world's biggest market is almost twenty 0:20:13.359 --> 0:20:16.480 seven million. The US is sixteen. Maybe on a good 0:20:16.520 --> 0:20:17.960 day you imagine. 0:20:17.520 --> 0:20:18.280 How big that is. 0:20:18.400 --> 0:20:20.880 It's not twice as big, but it's a big market. 0:20:21.680 --> 0:20:25.160 Now BOID is not only out selling Volkswagen, they're now 0:20:25.200 --> 0:20:28.240 the number one electric player in the world. A year later, 0:20:28.800 --> 0:20:32.240 very powerful company, vertically integrated like Henry Ford did in 0:20:32.280 --> 0:20:32.880 the thirties. 0:20:33.440 --> 0:20:35.240 We're very humble, but it's the same token. 0:20:35.400 --> 0:20:38.840 Ford has announced our Universe Electric platform to be built 0:20:38.840 --> 0:20:42.320 in Louisville, Kentucky, and we think it's basically a wash 0:20:42.480 --> 0:20:46.600 with BYD made in Mexico because we've thrown innovation at it. 0:20:47.800 --> 0:20:50.080 So a lot has changed, and we've. 0:20:49.920 --> 0:20:56.720 Seen Europe it's been really the battleground for globally for 0:20:56.800 --> 0:21:00.320 the Chinese. Now it looks like this month, I bet 0:21:00.359 --> 0:21:02.280 you the Chinese will be close to ten percent of 0:21:02.280 --> 0:21:05.840 the European EV market. Many of the brands weren't even 0:21:05.840 --> 0:21:10.640 on sale a year ago, mg G Le others. Now 0:21:10.640 --> 0:21:14.879 they're very successful like BID in Europe. It's really a moment, 0:21:15.640 --> 0:21:19.119 a transitional moment for our industry where everyone used to 0:21:19.160 --> 0:21:22.520 talk about South Korea or Japan. In my eyes as 0:21:22.560 --> 0:21:26.160 the CEO, China is the place where the most fit 0:21:26.240 --> 0:21:29.600 industrial systems are getting created, not just for electric vehicles, 0:21:29.800 --> 0:21:33.520 but for internal combustion vehicles. And without projects like UEV, 0:21:34.440 --> 0:21:37.679 companies will will be under thread of existence. 0:21:38.280 --> 0:21:42.159 You were on the front lines when Japanese manufacturers are 0:21:42.160 --> 0:21:44.119 going to stole market share they I'd say, yes. But 0:21:44.200 --> 0:21:48.240 bringing forward to today, there is a different economic structure in China. 0:21:49.040 --> 0:21:50.920 There is subsidies, yes there is. 0:21:51.200 --> 0:21:56.320 Can the American auto industry outcompete those subsidies, out innovate 0:21:56.359 --> 0:21:57.160 those subsidies. 0:21:57.720 --> 0:22:01.639 That's a very difficult answer to to give you right now. 0:22:01.720 --> 0:22:04.640 I think it's too really to answer your question because 0:22:04.680 --> 0:22:07.600 we're only in the second inning of these pure electric vehicles, 0:22:07.920 --> 0:22:11.479 and the innovation cycles so fast we could be talking 0:22:11.480 --> 0:22:13.200 in a year or two of a whole new battery 0:22:13.240 --> 0:22:17.000 technology that could either change that equation. But I will 0:22:17.040 --> 0:22:21.280 say at this point they have a big lead. When 0:22:21.320 --> 0:22:24.480 you look at a BYD, we think on average four 0:22:24.520 --> 0:22:27.960 to five thousand dollars a vehicle of direct support from 0:22:27.960 --> 0:22:31.840 the Chinese government that's exported to Europe and New Mexico 0:22:31.920 --> 0:22:32.679 and places like that. 0:22:33.760 --> 0:22:35.200 Can we make up for that. 0:22:35.680 --> 0:22:39.320 Plus their scale, their industrial scale of being ten times 0:22:39.320 --> 0:22:41.919 bigger than the US, I'd say it's pretty difficult at 0:22:41.920 --> 0:22:44.520 this point. I will tell you the level of risk 0:22:44.560 --> 0:22:47.960 that we've had to take on UEV on the execution side, 0:22:48.119 --> 0:22:50.960 large unit castings, building a vehicle in a way we've 0:22:51.000 --> 0:22:51.879 never built before. 0:22:52.440 --> 0:22:54.400 It's not a guaranteed project. 0:22:54.400 --> 0:22:56.440 This is all going to come together just like we thought, 0:22:56.800 --> 0:22:59.359 and so we think we're even with them right now. 0:22:59.480 --> 0:23:03.320 But this bead of innovation we're seeing is very humbling 0:23:03.359 --> 0:23:03.639 for me. 0:23:04.119 --> 0:23:06.760 Even if we have a stable platform on cost today, 0:23:07.200 --> 0:23:09.840 will that platform be competitive in five years when the 0:23:09.880 --> 0:23:12.880 battery tech does another full cycle of innovation. 0:23:13.359 --> 0:23:14.040 Hard to say. 0:23:14.600 --> 0:23:18.760 I'm thinking about twenty thirty two right now. That's to 0:23:18.800 --> 0:23:21.280 answer your question. I'm there. I have to make those 0:23:21.280 --> 0:23:24.080 capital choices now for twenty thirty two. To answer your 0:23:24.119 --> 0:23:27.680 question right now, I think there's a chance. But without 0:23:28.119 --> 0:23:32.160 huge support where it's more of a level of playing field, 0:23:32.720 --> 0:23:36.560 where it isn't in Europe, I think it's gonna be 0:23:36.640 --> 0:23:39.760 really tough, maybe the toughest battle of my career. 0:23:42.080 --> 0:23:42.600 Up next. 0:23:42.760 --> 0:23:46.240 The Australian economy has been powered for three decades by 0:23:46.280 --> 0:23:49.879 its rich natural resources. We travel down Under to see 0:23:49.920 --> 0:23:53.639 firsthand its efforts to diversify into new and more cutting 0:23:53.720 --> 0:24:05.520 edge areas of growth. This is a story about the 0:24:05.640 --> 0:24:09.400 need to be good as well as lucky. Australia has 0:24:09.440 --> 0:24:12.280 been lucky in the natural resources that have been driving 0:24:12.320 --> 0:24:16.240 its uninterrupted growth for three decades, but now it needs 0:24:16.280 --> 0:24:19.080 to be good in innovation and investing to keep that 0:24:19.200 --> 0:24:24.200 growth going. As our colleague Heidie stroud Watt reports from Sydney. 0:24:26.640 --> 0:24:29.720 Australia has long been known as the lucky country, a 0:24:29.800 --> 0:24:34.000 land of sun, surf and abundant resources. For those looking 0:24:34.040 --> 0:24:37.560 to drive its future, fortune has been harder to find. 0:24:38.160 --> 0:24:40.680 We now find ourselves at a place where there is 0:24:40.800 --> 0:24:45.480 basically no interested growth capital in Australia. Our last round, 0:24:45.800 --> 0:24:49.119 which was a world record setting Series B, eighty percent 0:24:49.160 --> 0:24:53.359 of the funds inbound were foreign direct investment. Only three 0:24:53.520 --> 0:24:57.240 out of twenty investors who joined us were from Australia, 0:24:57.720 --> 0:25:01.440 so we are obligated to look outside. It's the lack 0:25:01.480 --> 0:25:02.359 of familiarity. 0:25:02.960 --> 0:25:06.160 Michael Biersuk is a founder and CEO of q Control, 0:25:06.320 --> 0:25:08.480 a quantum tech startup based in Sydney. 0:25:09.040 --> 0:25:12.000 It's not about loyalty to Australia or disloyalty. It's about 0:25:12.000 --> 0:25:15.199 economic opportunity. The US and the UK right now are 0:25:15.240 --> 0:25:18.240 making massive investments from the public sector and of course 0:25:18.280 --> 0:25:22.440 the private sector in advancing this technology for sovereign capability. 0:25:22.600 --> 0:25:26.440 Australia has not yet done that, and we're looking forward to. 0:25:26.400 --> 0:25:27.800 That kind of investment in the future. 0:25:27.920 --> 0:25:31.920 This is a real map of data coming from commercial airplanes. 0:25:32.080 --> 0:25:34.879 At q Control, we focus on this new field of 0:25:34.920 --> 0:25:38.840 quantum technology and our specialty is building new kinds of 0:25:38.880 --> 0:25:42.879 AI that make this emerging technology area actually useful for 0:25:43.119 --> 0:25:46.640 end applications. One of the core areas that we've invested 0:25:46.640 --> 0:25:50.120 in is helping navigate when there is no GPS. Now, 0:25:50.200 --> 0:25:54.640 on a daily basis, GPS completely governs our lives. Unfortunately, 0:25:55.160 --> 0:25:59.560 the reliability of GPS has diminished tremendously just in the 0:25:59.600 --> 0:26:03.160 last year. Since March of twenty twenty four, we've seen 0:26:03.200 --> 0:26:07.560 almost one thousand flights a day commercial aviation flights disrupted 0:26:07.600 --> 0:26:11.680 by deliberate GPS jamming. This is emerging as a major 0:26:11.720 --> 0:26:14.359 threat and it's not just in commercial aviation. Defense sees 0:26:14.440 --> 0:26:17.959 exactly the same challenges. We set out to try and 0:26:18.000 --> 0:26:20.639 fix this through our work in quantum sensing, and we 0:26:20.800 --> 0:26:25.440 built a new technology that lets us navigate with our GPS. 0:26:25.880 --> 0:26:29.160 It's a business of tomorrow, the kind many believes should 0:26:29.160 --> 0:26:33.040 play a far greater role in shaping Australia's economy of tomorrow. 0:26:33.480 --> 0:26:35.600 Well, we've won the risk of falling behind. I mean, 0:26:35.640 --> 0:26:38.800 there's no question about that. You've got you know, you've 0:26:38.880 --> 0:26:40.639 got to stay at the head, at the front of 0:26:40.680 --> 0:26:45.119 the pack. And to do that you have to you know, 0:26:45.160 --> 0:26:47.640 you've got to keep innovating. You've got to keep asking 0:26:47.800 --> 0:26:51.280 every day. Our our policy is working. Complacency is a 0:26:51.359 --> 0:26:55.080 killer in politics and government, as in business. 0:26:55.880 --> 0:26:59.320 But before examining the Australian economy of tomorrow, it's worth 0:26:59.320 --> 0:27:03.320 explaining the economy of today. It was nineteen sixty four 0:27:03.320 --> 0:27:06.560 when the author Donald Horn famously took aim at Australia, 0:27:06.960 --> 0:27:10.200 calling it a lucky country run mainly by second rate 0:27:10.240 --> 0:27:13.440 people who share its luck. It was a job at 0:27:13.480 --> 0:27:17.359 its complacency, a country whose wealth, he argued, came not 0:27:17.400 --> 0:27:23.879 from innovation or ingenuity, but from its abundant natural resources iron, ore, coal, gold. 0:27:24.280 --> 0:27:25.159 The list goes on. 0:27:25.680 --> 0:27:28.920 There's no doubt that the economy has a pretty narrow base. 0:27:29.480 --> 0:27:32.960 Jennifer Westercott is a senior advisor at KPMG and a 0:27:33.040 --> 0:27:36.840 former CEO of the Australian Business Council. She says that 0:27:36.880 --> 0:27:40.480 although the country's economy might not be highly diversified, it's 0:27:40.600 --> 0:27:42.720 proven to be very lucrative so far. 0:27:43.200 --> 0:27:46.520 I think the economy still has incredible kind of foundations 0:27:46.560 --> 0:27:48.920 in mining and resources, and there's still a long long 0:27:48.960 --> 0:27:50.240 way to go in resources. 0:27:50.880 --> 0:27:54.280 Australia ranked second in the world for median wealth per capita, 0:27:54.560 --> 0:27:58.560 but its narrow base is showing fragility. Commodity earnings are 0:27:58.600 --> 0:28:01.080 expected to fall to two hundred than seventy one billion 0:28:01.160 --> 0:28:04.000 US dollars this year about three hundred and eighty five 0:28:04.000 --> 0:28:07.240 billion Australian dollars and continue to drop over the next 0:28:07.280 --> 0:28:12.280 two years on folding prices and an uncertain global economy. Well, 0:28:12.320 --> 0:28:15.600 the Reserve Bank of Australia recently slashed it's forecasts for 0:28:15.680 --> 0:28:17.440 economic growth and productivity. 0:28:17.800 --> 0:28:20.240 So I think you know that the first thing we 0:28:20.280 --> 0:28:22.879 need to do is make sure that we protect and 0:28:22.960 --> 0:28:27.120 strengthen that incredible base that's propped up living standards for many, 0:28:27.160 --> 0:28:33.000 many years and has made the country extremely prosperous and 0:28:33.040 --> 0:28:35.840 so there's lots of ways of diversifying the economy and 0:28:35.960 --> 0:28:39.080 driving greater innovation in the economy. The first is to 0:28:39.160 --> 0:28:42.880 drive higher levels of investment, and investment as a share 0:28:42.920 --> 0:28:46.160 of GDP is around the same level was in the 0:28:46.240 --> 0:28:48.960 nineteen ninety so we need to get investment happening. That's 0:28:49.000 --> 0:28:52.000 about lower taxes or on more competitive tax system. It's 0:28:52.040 --> 0:28:55.840 also about reducing regulation. We've also got to drive more innovation. 0:28:56.000 --> 0:29:00.000 That's about skilling our population, making sure that we draw 0:29:00.360 --> 0:29:03.040 the new skills the future in racing things like AI 0:29:03.800 --> 0:29:06.920 and going with sectors of the economy that are in 0:29:06.960 --> 0:29:10.160 our comparative advantage and things that we can scale on. 0:29:11.440 --> 0:29:15.120 And the economy's fragility places even more importance on setting 0:29:15.160 --> 0:29:18.800 up its future. Australia, for all its wealth, spends just 0:29:18.880 --> 0:29:21.960 one point seven percent of GDP on research and development, 0:29:22.440 --> 0:29:25.760 well below the OECD average of two point seven percent. 0:29:26.440 --> 0:29:29.560 Malcolm Turnbull was the Prime Minister of Australia between twenty 0:29:29.640 --> 0:29:34.040 fifteen and twenty eighteen, and before that ran Goldman Sachs Australia. 0:29:34.720 --> 0:29:37.400 At the level of the economy, the big priority has 0:29:37.440 --> 0:29:41.880 always got to be productivity and that is driven by innovation. 0:29:42.080 --> 0:29:45.760 So you've got to You've got, at one level get 0:29:45.840 --> 0:29:49.080 rid of as much regulation and red tape as you can. 0:29:49.200 --> 0:29:52.400 At the same time you've really got to supercharge innovation. 0:29:52.960 --> 0:29:55.320 This was a really important part of my time as 0:29:55.400 --> 0:30:00.080 PMS by Big first Big Economic Agenda, the National Innovation 0:30:00.200 --> 0:30:05.840 and Science Agenda in twenty fifteen that gave tech, R 0:30:05.880 --> 0:30:10.680 and D, investment, venture capital a huge lift and which 0:30:10.800 --> 0:30:12.280 they're still benefiting from. 0:30:12.440 --> 0:30:14.120 But you've got to do it again. 0:30:14.240 --> 0:30:16.720 You know, you can't just do it once and put 0:30:16.720 --> 0:30:18.200 it aside and say that's it. 0:30:18.320 --> 0:30:20.800 How do you characterize the environment when it comes to 0:30:20.800 --> 0:30:24.000 tech an innovation. Do you think it's not getting as 0:30:24.080 --> 0:30:26.880 much attention or as credit as it should be or 0:30:26.920 --> 0:30:29.400 do you think that progress has stalled? 0:30:30.000 --> 0:30:34.680 Well, look, Australia does not spend enough on research and development. False, 0:30:34.720 --> 0:30:38.120 Australian business doesn't and we're not spending enough in the 0:30:38.480 --> 0:30:43.960 pure research primary research realm of universities and research institutions 0:30:44.000 --> 0:30:46.360 are so that needs more encouragement. 0:30:47.240 --> 0:30:50.800 As a result, Australia's foreign direct investment is still heavily 0:30:50.840 --> 0:30:55.360 skewed towards mining, forcing companies like que Control to look 0:30:55.400 --> 0:30:56.760 overseas for investment. 0:30:57.360 --> 0:31:01.480 We have not seen the same level of major tech successes, 0:31:01.920 --> 0:31:07.400 minting billionaires building generational technology businesses in Australia as we've 0:31:07.440 --> 0:31:09.800 seen in the United States, and as a result, I 0:31:09.800 --> 0:31:13.920 think that lack of familiarity has made people just less 0:31:13.960 --> 0:31:17.479 willing to take some bets. And our objective, frankly, is 0:31:17.560 --> 0:31:19.840 to show by example, whether you're in government or a 0:31:19.880 --> 0:31:23.920 local investor base, that the upsides are enormous and real 0:31:24.160 --> 0:31:27.400 and we're just trying with everything we can to deliver 0:31:27.440 --> 0:31:28.320 on that opportunity. 0:31:28.920 --> 0:31:32.400 Could there be that kind of transformative sort of movement 0:31:32.520 --> 0:31:36.000 in Australia And if so, what are the policy measures, 0:31:36.040 --> 0:31:38.880 what are the things in terms of supporting that possibility 0:31:38.920 --> 0:31:39.560 that you see. 0:31:39.800 --> 0:31:41.959 I think there's no question that the opportunity is there. 0:31:42.160 --> 0:31:44.920 I came to Australia from the United States because the 0:31:45.080 --> 0:31:47.120 research community was so strong when I was an academic 0:31:47.160 --> 0:31:47.320 at the. 0:31:47.320 --> 0:31:48.200 University of Sydney. 0:31:48.720 --> 0:31:54.520 The bigger challenge has been building an industry base around 0:31:54.600 --> 0:31:58.720 the transition from basic science over it to industrial applications 0:31:59.760 --> 0:32:02.600 in Australia has been lagging. That we were the first 0:32:02.680 --> 0:32:06.280 venture back company in the field in Australia. The challenges 0:32:06.280 --> 0:32:09.560 we haven't seen that many more in the last seven years. 0:32:10.120 --> 0:32:14.000 Westerncott, who also serves as Chancellor of Western Sydney University, 0:32:14.320 --> 0:32:17.640 believes Australia should be capitalizing on funding cuts to US 0:32:17.840 --> 0:32:21.000 universities to attract talent and drive innovation. 0:32:21.600 --> 0:32:23.360 I think the first thing that we need to do is, 0:32:23.400 --> 0:32:26.600 of course, continue to invest in our universities, continue to 0:32:26.680 --> 0:32:30.080 invest in research and development. But we also need to 0:32:30.160 --> 0:32:33.480 send very consistent and clear policy signals that we're open 0:32:33.800 --> 0:32:36.640 for international students. Now we have a cap on international 0:32:36.680 --> 0:32:40.360 students at the moment, which is very controversial in Australia. 0:32:40.400 --> 0:32:43.160 We need to send that message that we want international 0:32:43.200 --> 0:32:46.320 students one of our biggest exports. We also need to 0:32:46.320 --> 0:32:51.200 make sure that we are encouraging skilled migration from young people. 0:32:52.000 --> 0:32:54.520 You know, KPMG did a study several years ago which 0:32:54.520 --> 0:32:56.800 showed that we'd add thirty billion dollars to the economy 0:32:56.800 --> 0:33:00.400 by targeting those highly skilled young people. When I run 0:33:00.440 --> 0:33:03.480 the Business Council of Australia, the key message that big 0:33:03.480 --> 0:33:06.200 employers will give to me is that they want more skill, 0:33:06.480 --> 0:33:10.360 very specialized skills. So we should be really targeting those 0:33:10.400 --> 0:33:12.840 young people from the United States, common and even work 0:33:12.880 --> 0:33:16.720 in Australia greatest country on Earth and really targeting those 0:33:16.800 --> 0:33:20.200 super skills. So it's an opportunity, but we can't just 0:33:20.360 --> 0:33:22.520 kind of sit back and expect it to happen. We're 0:33:22.560 --> 0:33:25.480 going to have to have deliberate and purposeful policies and 0:33:25.560 --> 0:33:28.600 actions to encourage those people to come to Australia. 0:33:28.680 --> 0:33:31.520 We have a huge opportunity in terms of talent. And 0:33:32.000 --> 0:33:36.000 while no one, no Australian government wants to go out 0:33:36.040 --> 0:33:41.120 there and say to talented people in other countries, you're 0:33:41.160 --> 0:33:43.440 living in a terrible country, come and live in our house. 0:33:43.520 --> 0:33:44.880 You've got to be tactful about this. 0:33:45.400 --> 0:33:48.840 But let's face it, there is a war for talent 0:33:49.160 --> 0:33:53.479 human talent, and we have some very attractive things going on, 0:33:53.520 --> 0:33:55.120 which is why, by the way, we need to be 0:33:55.160 --> 0:34:00.760 putting more money into research because those scientists and technologists 0:34:00.800 --> 0:34:02.760 will want to come here and work with it. But 0:34:02.880 --> 0:34:05.920 you think about the livability of our cities for example, 0:34:06.440 --> 0:34:08.880 you know we have some of the most livable cities 0:34:08.880 --> 0:34:09.400 in the world. 0:34:09.960 --> 0:34:14.160 Ultimately, lifestyle can only take you so far. If Australia 0:34:14.200 --> 0:34:16.920 wants to remain competitive, it needs to be more than 0:34:17.000 --> 0:34:19.640 just a great place to surf. It needs to be 0:34:19.680 --> 0:34:22.920 a great place to invest. It's luck may not be 0:34:23.000 --> 0:34:26.360 running out entirely, but to get the economy humming and 0:34:26.440 --> 0:34:30.759 needs investment and innovation, it needs to be good as 0:34:30.800 --> 0:34:32.040 well as lucky. 0:34:32.480 --> 0:34:34.879 I think Australia is lucky, but we've made a lot 0:34:34.880 --> 0:34:39.239 of our own luck too, so I'm very optimistic about Australia's. 0:34:38.680 --> 0:34:44.080 Future coming up. AI may already be playing a big 0:34:44.200 --> 0:34:46.960 role in your next visit to the doctor without your 0:34:47.040 --> 0:34:50.000 even knowing about it. We tell the story of artificial 0:34:50.040 --> 0:35:05.480 intelligence in healthcare next. This is not yet another story 0:35:05.520 --> 0:35:08.640 about the promise of artificial intelligence. It's the first in 0:35:08.680 --> 0:35:11.439 a series of stories that go beyond the hope and 0:35:11.680 --> 0:35:14.399 the hype to see where AI is making a real 0:35:14.440 --> 0:35:18.759 difference today. Starting with something important to us. All our 0:35:18.840 --> 0:35:19.560 medical care. 0:35:21.120 --> 0:35:23.000 Yes, yeah, good morning. 0:35:23.239 --> 0:35:27.840 On any given day Tennessee, based on coologists Samyukta Mulanghi 0:35:28.320 --> 0:35:30.919 could see as many as twenty five patients. 0:35:31.360 --> 0:35:35.560 Medical oncologists like me are pressed for time and we're 0:35:35.560 --> 0:35:38.360 overwhelmed with sort of clinical duties, trying to do that 0:35:38.480 --> 0:35:42.600 work of charting in ahead of time, seeing the patient, 0:35:42.880 --> 0:35:47.520 documenting after the fact, and also now trying to squeeze 0:35:47.560 --> 0:35:49.759 in record retrieval in the middle of everything is just 0:35:49.920 --> 0:35:53.840 very impossible, and so you have the concept of pajama 0:35:53.920 --> 0:35:56.680 time where oncologists and other physicians are just sort of 0:35:56.719 --> 0:35:59.640 finishing up their daily work at home after you know, 0:35:59.680 --> 0:36:01.520 the kids are put to bed and after dinner, and 0:36:01.560 --> 0:36:05.400 it just contributes to a lot of provider burnout. 0:36:05.600 --> 0:36:09.840 Doctor Mulongi is not alone. All across the country, doctors 0:36:09.880 --> 0:36:13.920 in all specialties are often stretched thin. The American Medical 0:36:13.960 --> 0:36:17.600 Association found that almost half of US physicians experienced at 0:36:17.719 --> 0:36:21.239 least one symptom of burnout. It's a little wonder that 0:36:21.280 --> 0:36:24.239 our doctors are feeling the burden given the explosion of 0:36:24.320 --> 0:36:28.480 medical research. So Daniel Nadler decided to do something about it. 0:36:29.280 --> 0:36:32.040 The rate of doubling of medical knowledge in nineteen fifty 0:36:32.120 --> 0:36:35.719 was roughly every fifty years. In twenty twenty five, they're 0:36:35.760 --> 0:36:40.239 different estimates and they're different numbers. In a study in 0:36:40.440 --> 0:36:43.080 the British Medical Journal and another study in Nature, they 0:36:43.120 --> 0:36:45.440 found that the rate of doubling of medical knowledge was 0:36:45.520 --> 0:36:46.719 seventy three days. 0:36:47.160 --> 0:36:51.839 Nadler's PhD thesis from Harvard was on analyzing derivatives, which 0:36:51.880 --> 0:36:55.680 he turned into a startup using machine learning for financial analysis. 0:36:56.160 --> 0:36:59.080 After selling that company for half a billion dollars, he 0:36:59.160 --> 0:37:02.040 turned his attention to helping doctors make sense of the 0:37:02.080 --> 0:37:05.319 tsunami of medical research coming their way. 0:37:05.360 --> 0:37:07.960 We looked at this and we did another analysis, and 0:37:07.960 --> 0:37:10.600 we said, let's ignore the doubling for a second and 0:37:10.800 --> 0:37:15.000 just ask the question if you had to read just 0:37:15.120 --> 0:37:18.839 the top third of peer reviewed medical literature just within 0:37:18.880 --> 0:37:21.640 your specialty, which is not ideal. Right, that means no 0:37:21.719 --> 0:37:24.319 cardiologist is reading anything in neurology and vice versa, which 0:37:24.360 --> 0:37:26.200 is not ideal. But even if you just said that, 0:37:27.200 --> 0:37:31.040 how long would it take every day for a specialist 0:37:31.200 --> 0:37:33.760 to just read the top third of peer reviewed medical 0:37:33.760 --> 0:37:37.239 literature just within their specialty? And the answer turned out 0:37:37.239 --> 0:37:41.000 to be something about something like nine hours. So practically 0:37:41.000 --> 0:37:43.560 that's obviously impossible. They would never see patients, or never 0:37:43.600 --> 0:37:45.759 see their family, or they would never sleep. 0:37:46.040 --> 0:37:49.000 And that led Nadler to found Open Evidence in twenty 0:37:49.040 --> 0:37:49.560 twenty two. 0:37:50.040 --> 0:37:53.239 Open Evidence is designed to do for physicians what the 0:37:53.280 --> 0:37:56.560 advent of computer systems, let's call it that on Wall 0:37:56.600 --> 0:37:59.080 Street achieved for Wall Street knowledge workers. 0:38:00.239 --> 0:38:04.320 Evidence is an AI model trained on medical literature, carefully 0:38:04.400 --> 0:38:07.600 curated to ensure high quality results for. 0:38:07.600 --> 0:38:09.680 The first time in the last let's call it three 0:38:10.000 --> 0:38:13.520 four five years maximum, we've reached a point in the 0:38:13.560 --> 0:38:18.279 sophistication of artificial intelligence of computers broadly that they can 0:38:18.280 --> 0:38:20.839 store not just the right letters and the right words 0:38:20.880 --> 0:38:22.759 and the right order, but they can understand the semantic 0:38:22.880 --> 0:38:26.800 meaning of the findings of these studies. So Open Evidence 0:38:27.120 --> 0:38:30.400 is an artificial intelligence. It's a computer system that's able 0:38:30.480 --> 0:38:34.560 to understand the semantic meaning of the findings of these 0:38:34.600 --> 0:38:37.320 studies so that it can act as a brain extender 0:38:37.600 --> 0:38:40.359 to physicians who have even in the best and most 0:38:40.400 --> 0:38:43.680 generous reading of what they have to do as a 0:38:43.680 --> 0:38:45.480 physician in terms of keeping up with the pace of 0:38:45.520 --> 0:38:48.000 medical knowledge, such that they don't have to spend nine 0:38:48.040 --> 0:38:50.480 hours a day just reading the top third of pure 0:38:50.560 --> 0:38:52.400 viewed medical journals. 0:38:53.080 --> 0:38:56.359 Doctors are piling into the platform, which says it has 0:38:56.400 --> 0:38:59.360 signed up around fifty percent of all doctors in America 0:38:59.719 --> 0:39:04.400 and adding sixty five thousand every month. Investors are piling 0:39:04.440 --> 0:39:07.719 in two Its latest funding round valued the company at 0:39:07.840 --> 0:39:12.080 three point five billion dollars. What is it that Open 0:39:12.160 --> 0:39:14.880 Evidence should be relied upon to do and what do 0:39:14.920 --> 0:39:17.759 we still need the physician to do. For example, can 0:39:17.840 --> 0:39:19.960 open evidence diagnose no? 0:39:20.440 --> 0:39:24.480 So the physician is still relied upon to do everything 0:39:24.480 --> 0:39:28.160 that a physician was always relied upon to do. I 0:39:28.200 --> 0:39:33.359 see open evidence as a continuum or a continuation of 0:39:33.400 --> 0:39:39.160 a very traditional technology called search. Right, So historically physicians 0:39:40.120 --> 0:39:42.920 needed to search for findings and medical journals. That's not 0:39:42.960 --> 0:39:46.200 a new behavior. They've been doing that for years and 0:39:46.280 --> 0:39:48.960 years and years. One way to think about this is 0:39:49.640 --> 0:39:52.600 we spend a lot of time as a society celebrating 0:39:52.640 --> 0:39:56.320 the golden age of biotechnology, and we should. Right, every 0:39:56.800 --> 0:39:59.960 metric and proxy you look at in the data shows 0:40:00.080 --> 0:40:03.760 that we are accelerating the rate of drug discovery, including 0:40:03.800 --> 0:40:07.320 using artificial intelligence. We're accelerating the rate of drug development, 0:40:07.560 --> 0:40:09.959 and so we celebrate that we're in this golden age 0:40:10.000 --> 0:40:13.080 and it's amazing, this golden age of biotechnology. But what's 0:40:13.120 --> 0:40:16.680 not talked about a lot or enough is that this 0:40:17.000 --> 0:40:20.319 golden age of biotechnology is really the dark ages for 0:40:20.320 --> 0:40:24.239 physicians in terms of burnout. We expect that almost all 0:40:24.239 --> 0:40:27.240 physicians in the United States will be on the platform 0:40:27.360 --> 0:40:28.640 within the next year. 0:40:29.480 --> 0:40:32.880 Doctor David Reich is President and chief Clinical Officer for 0:40:33.040 --> 0:40:36.840 Mount Sinai Health System in New York. He uses Open Evidence, 0:40:37.080 --> 0:40:39.760 but as part of a larger range of AI models 0:40:39.800 --> 0:40:41.799 they are integrating into their hospitals. 0:40:42.160 --> 0:40:44.759 I have the app on my phone and it's available 0:40:44.920 --> 0:40:48.800 through our medical school library, and people do use it. However, 0:40:49.000 --> 0:40:52.520 we do also work with chat GPT, and they've created 0:40:52.560 --> 0:40:56.080 an environment where we can have our medical students ask 0:40:56.239 --> 0:41:00.000 questions that contain protected health information, and that protected health 0:41:00.040 --> 0:41:04.480 health information stays within the CyberSecure. 0:41:04.040 --> 0:41:07.720 Environment that we work so hard to maintain. 0:41:08.120 --> 0:41:12.520 And so I think cybersecurity remains a key consideration in 0:41:12.600 --> 0:41:16.160 any tools that are a great assistance to us, and 0:41:16.239 --> 0:41:19.040 I'm sure that Open Evidence will work very hard to 0:41:19.640 --> 0:41:21.000 address that along with others. 0:41:21.000 --> 0:41:22.840 But I'm very enthusiastic about it. 0:41:22.920 --> 0:41:23.879 I think it's a great tool. 0:41:24.560 --> 0:41:27.400 One of the reasons Open Evidence has become so popular 0:41:27.440 --> 0:41:30.840 with doctors so quickly is that it licenses the best 0:41:30.920 --> 0:41:35.320 medical literature from trusted sources, and it's free to doctors, 0:41:35.440 --> 0:41:37.839 relying on advertising for its revenue. 0:41:38.239 --> 0:41:45.360 We write from the start licensed content, licensed journals, licensed information, 0:41:45.920 --> 0:41:50.160 medical information from the relevant copyright holders. So we have 0:41:50.440 --> 0:41:55.360 a agreement with the Massachusetts Medical Society, which owns the 0:41:55.400 --> 0:41:58.280 new maudral Medicine. It's a nonprofit. We have a licensing 0:41:58.320 --> 0:42:01.960 agreement with the American Medicalists Asociation. Again it's a nonprofit, 0:42:01.960 --> 0:42:04.719 but it owns the journal of the American Medical Association 0:42:05.120 --> 0:42:09.319 as well as all the specialty journals JAMMA Oncology, JAMMA Neurology, 0:42:09.600 --> 0:42:11.000 and so on and so on and so on, not 0:42:11.400 --> 0:42:15.520 just those. So we took a very different approach to copyright, 0:42:15.600 --> 0:42:19.800 to licensing, to all of this, and we're extremely proud 0:42:19.840 --> 0:42:22.840 of the fact that we're probably the only PUREI company 0:42:23.440 --> 0:42:26.560 in America that is not currently being sued for copyright violations. 0:42:26.640 --> 0:42:29.520 Our business model is the exact same as Google, which 0:42:29.560 --> 0:42:32.600 is I think it's public. Google is one of our 0:42:32.680 --> 0:42:36.200 largest investors and has been an enormous patron to the 0:42:36.239 --> 0:42:38.839 company in many ways. So you can build very successful 0:42:39.640 --> 0:42:43.279 software's of service companies, and there are many examples of 0:42:43.719 --> 0:42:47.600 ten twenty thirty forty fifty one hundred billion dollars market 0:42:47.600 --> 0:42:50.600 cap software's to service companies. But once you start getting 0:42:50.640 --> 0:42:54.000 into the rare air of multi trillion market cap companies, 0:42:54.320 --> 0:42:56.759 it's notable that they are that almost all of them, 0:42:57.200 --> 0:43:00.600 again excepting Nvidia and Apple, are either primarily the advertising 0:43:00.640 --> 0:43:03.600 business models or have advertising as a significant component of 0:43:03.600 --> 0:43:05.880 what they do. And I think the explanation there is 0:43:06.560 --> 0:43:09.440 it is the business model that most aligns the incentives 0:43:09.480 --> 0:43:12.680 of the platform and the users to make sure you're 0:43:12.680 --> 0:43:16.760 delivering to your users the highest quality product possible, because 0:43:16.760 --> 0:43:20.680 your incentive is not reducing cost. Your incentive is attracting 0:43:20.680 --> 0:43:22.640 more users and increasing your engagement. 0:43:23.080 --> 0:43:26.680 AI tools like open Evidence are already providing much needed 0:43:26.719 --> 0:43:29.839 help to physicians who must focus on their patients even 0:43:29.880 --> 0:43:32.160 as they need to keep up with the deluge of 0:43:32.200 --> 0:43:35.680 new research. But for AI to realize it's full potential 0:43:35.680 --> 0:43:39.160 in healthcare, doctor Reich says it needs to become fully 0:43:39.239 --> 0:43:41.040 integrated into the workflow. 0:43:41.200 --> 0:43:46.600 But Mount Sinai is doing the genetic information analysis on 0:43:46.960 --> 0:43:51.120 up to a million patients in partnership with Regeneron, and 0:43:51.360 --> 0:43:54.680 we're several hundred thousand patients into this, and we have 0:43:54.760 --> 0:44:00.200 a vast trove of information on patient medical images. We 0:44:00.280 --> 0:44:04.200 have incredible information in our electronic health record. Now, when 0:44:04.239 --> 0:44:07.440 we start to marry all of those data sources together 0:44:08.080 --> 0:44:10.759 and follow the promise of AI in the not too 0:44:10.840 --> 0:44:13.400 distant future, I should be able to say to you 0:44:13.480 --> 0:44:16.560 when you come in not only did I screen you 0:44:16.600 --> 0:44:17.960 and I found particular risks. 0:44:18.000 --> 0:44:19.160 Not only do I have. 0:44:19.480 --> 0:44:22.719 Care pathways which suggest how I should go forward, but 0:44:22.840 --> 0:44:26.960 it's specific to you, to your family history, to your 0:44:27.000 --> 0:44:30.759 genetic markers, and hopefully the giving you the best and 0:44:30.800 --> 0:44:35.360 safest possible experience. So think of the future as being 0:44:35.480 --> 0:44:40.799 much more personalized. And the advance of technology is so 0:44:41.080 --> 0:44:44.800 inspiring right now that I think that what I've witnessed 0:44:44.800 --> 0:44:48.000 over several decades of medicine could vastly change in the 0:44:48.040 --> 0:44:52.120 next several years, as long as we learn the lessons 0:44:52.200 --> 0:44:56.440 of past mistakes of being maybe too exuberant about technology 0:44:56.960 --> 0:45:01.400 and making sure that people who are truly in touch 0:45:01.520 --> 0:45:06.560 with that social contract between patients in this nation and 0:45:06.719 --> 0:45:10.560 the payers and the government and the providers, that we 0:45:10.640 --> 0:45:12.200 actually find really good solutions. 0:45:12.440 --> 0:45:15.760 Where doctor Reich emphasizes the integration of all the data 0:45:15.840 --> 0:45:19.600 into a single workflow, Daniel Nadler envisions a world connecting 0:45:19.640 --> 0:45:22.759 physicians with others around the world who are working on 0:45:22.800 --> 0:45:25.040 the same clinical challenges. 0:45:24.960 --> 0:45:27.319 As open evidence develops. If we go back to my 0:45:27.400 --> 0:45:30.080 metaphor of the sort of nineteen forties World War two 0:45:30.120 --> 0:45:35.400 telephone operator who's routing and connecting a human to another 0:45:35.480 --> 0:45:38.920 human on a battlefield. In this case, it might actually 0:45:40.239 --> 0:45:42.279 end up in a world where the AI is the 0:45:42.360 --> 0:45:46.400 least interesting part of the technology, and what's really happening 0:45:46.719 --> 0:45:49.960 is the AI is serving as connective tissue between a 0:45:50.040 --> 0:45:54.080 human and a human, between a human physician presenting some 0:45:55.000 --> 0:45:59.840 atypical combination of symptoms and another human somewhere in the 0:45:59.880 --> 0:46:03.279 country that is an expert on that and where the 0:46:03.400 --> 0:46:06.600 job of the AI is as far as possible from 0:46:06.640 --> 0:46:09.239 answering the question and as much more about getting out 0:46:09.239 --> 0:46:11.160 of the way as quickly as possible and connecting that 0:46:11.200 --> 0:46:14.600 one human to another human. And that's a very wonderful 0:46:14.600 --> 0:46:17.840 and sort of optimistic vision for what the future of 0:46:17.880 --> 0:46:21.000 AI can be. You know, most scenarios for the future 0:46:21.040 --> 0:46:24.080 of AI, or many are very dystopian. I can't common 0:46:24.120 --> 0:46:26.080 on what happens outside of medicine, but in medicine, I 0:46:26.080 --> 0:46:29.400 think you have a very beautiful possibility where the technology 0:46:29.560 --> 0:46:32.200 ends up serving as connective tissue between a human and 0:46:32.200 --> 0:46:32.600 a human. 0:46:33.680 --> 0:46:36.440 But whether it's connecting the doctor with the data or 0:46:36.480 --> 0:46:39.640 the human with the human. Right now, AI products like 0:46:39.680 --> 0:46:43.600 open Evidence are providing much needed relief for practicing physicians 0:46:43.920 --> 0:46:45.120 like Sam Mulanghi. 0:46:45.560 --> 0:46:48.000 I would say that for me, open evidence solves like 0:46:48.280 --> 0:46:54.520 two rather unrelated but maybe orthogonal problems. One is that 0:46:55.080 --> 0:46:58.200 actually open evidence taps into the entire medical corpus of 0:46:58.239 --> 0:47:02.000 academic literature, which actually, for the most part, tends to 0:47:02.000 --> 0:47:04.399 be paywalled. The second thing that it does, I think 0:47:04.520 --> 0:47:07.160 is just sort of marrying the best of current AI 0:47:07.200 --> 0:47:11.719 capabilities around natural language processing and reasoning to try and 0:47:11.760 --> 0:47:15.600 interpret my requests and retrieve records easily in a very 0:47:15.680 --> 0:47:19.400 time efficient manner. So having sort of smart AI tooling 0:47:19.480 --> 0:47:24.279 that is able to provide fast queries has just been 0:47:24.320 --> 0:47:26.719 really been a game changer for me, and that is. 0:47:26.719 --> 0:47:30.200 One application of artificial intelligence that is making a real 0:47:30.239 --> 0:47:35.880 difference in the here and now. Next week will continue 0:47:35.920 --> 0:47:38.759 our exploration of where AI is already being put to 0:47:38.800 --> 0:47:43.000 good use, this time when it comes to education that 0:47:43.040 --> 0:47:44.960 does it for us Here at Wall Street Week, I'm 0:47:45.040 --> 0:48:00.239 David Weston. See you next week for more stories of capitalism.