WEBVTT - Meta's Zuckerberg on Largest Open-Source AI Model Ever

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg BusinessWeek

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<v Speaker 1>inside from the reporters and editors who bring you America's

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<v Speaker 1>most trusted business magazine, plus global business, finance and tech news.

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<v Speaker 1>The Bloomberg Business Week Podcast with Carol Messer and Tim

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<v Speaker 1>Stenebeck from Bloomberg Radio.

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<v Speaker 2>Well Mark Zuckerberg inspired his latest salvo in the AI wars.

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<v Speaker 2>Just today, Meta Platforms unveiled the largest open source AI

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<v Speaker 2>model ever. It's called Lama three point one. The company

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<v Speaker 2>is also updating its meta AI service, built as a

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<v Speaker 2>rival too chat GPT, and in.

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<v Speaker 3>An exclusive interview with Bloomberg's Emily Chang, the Meta CEO

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<v Speaker 3>and founder opened up about his strategy and why he

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<v Speaker 3>believes it's superior to competitors such as Open ai and Google.

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<v Speaker 3>Bloomberg Original's host and executive producer Emily Chang joining us

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<v Speaker 3>now from our San Francisco bureau.

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<v Speaker 4>Emily spoke to Mark Zuckerberg for the circuit.

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<v Speaker 3>It is a Bloomberg Original series and it's hosted by her,

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<v Speaker 3>where she goes behind the scenes with founders, executives, and innovators.

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<v Speaker 3>Sometimes gets to wear pink high heels, but I'm not

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<v Speaker 3>going to talk about.

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<v Speaker 4>That right now. Good to have you back with us.

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<v Speaker 3>Mark Zuckerberg, Man, when we think about big megacap tech companies,

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<v Speaker 3>that is certainly one of them in a big way.

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<v Speaker 4>AI sounds like it was top of mind for you guys.

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<v Speaker 5>Well, AI is their big news today, and Mark has

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<v Speaker 5>been really excited about this new model, the biggest open

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<v Speaker 5>source model ever. He says, it takes it to another level,

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<v Speaker 5>like you can think about it like a teacher, and

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<v Speaker 5>it will teach all the other models, smaller models below it.

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<v Speaker 5>And so you know, getting to this milestone was a

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<v Speaker 5>really big deal for them. They've obviously invested billions of

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<v Speaker 5>dollars to get here and to try to catch up

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<v Speaker 5>to open Ai and Google. So the interesting thing is

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<v Speaker 5>they're really coming from behind. But what he thinks is

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<v Speaker 5>with by the next update, they're going to completely have

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<v Speaker 5>closed the gap. So you know, it was a really

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<v Speaker 5>rare opportunity to sit down with him and talk about

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<v Speaker 5>out his vision. And you know, I've met him, I've

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<v Speaker 5>interviewed him over the years. I'd also say, you know,

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<v Speaker 5>he seems a lot more comfortable in his own skin

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<v Speaker 5>and just like answering questions more more directly and and

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<v Speaker 5>that was really refreshing. I thought, I thought we got

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<v Speaker 5>to see a more more real, more human.

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<v Speaker 6>Side of him.

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<v Speaker 2>Okay, Emily, I want to talk about Lama. I want

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<v Speaker 2>to talk about Ai, but really what I want to

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<v Speaker 2>talk about. Yeah, so think it's so fun. I mean

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<v Speaker 2>it's like it's it's I think it's easier than regular surfing.

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<v Speaker 2>I don't know if how you felt about it. You

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<v Speaker 2>they talked in the you talked in the program. Got

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<v Speaker 2>how you were from Hawaii? You got you got up

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<v Speaker 2>there and you wakesurf. We're looking at pictures right now.

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<v Speaker 6>You're looking at me wiping out. No, come go wiping

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<v Speaker 6>out again, wiping out again. Yeah, I think we're going

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<v Speaker 6>to show you the climax here.

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<v Speaker 5>So look it was I'm from Hawaii, so I have

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<v Speaker 5>surfed before, but I'm not a surfer. Wakesurfing is a

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<v Speaker 5>totally different thing.

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<v Speaker 6>It was hard.

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<v Speaker 5>But actually Mark and Priscilla joined us as well. Was

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<v Speaker 5>a good teacher and he was super patient with me.

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<v Speaker 6>Which you know, what did.

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<v Speaker 2>You what did you throw to What did you throw

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<v Speaker 2>to him?

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<v Speaker 6>Was it a beer through a lacroix? It was a

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<v Speaker 6>la croix. We were we were non alcoholic on this journey.

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<v Speaker 6>But there, look, I did it.

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<v Speaker 2>Yeah, that's what I'm talking about. That's what I'm talking about.

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<v Speaker 5>And you know it was it was brief, but hey,

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<v Speaker 5>it happened. And and I think the fact that he

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<v Speaker 5>was willing to have us at his home and to

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<v Speaker 5>show us this side of himself, you know, shows a

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<v Speaker 5>lot about his evolution as a leader and sort of

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<v Speaker 5>where he's at and just sort of being you know,

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<v Speaker 5>confident and comfortable in his own skin. But we also

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<v Speaker 5>talked about how all these different side quests, you know,

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<v Speaker 5>as you know, it's not just wake surfing, but he's

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<v Speaker 5>doing Mma and jiu jitsu, and he learned Mandarin, and

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<v Speaker 5>he's growing you know, his own wagu beef cows and

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<v Speaker 5>phoebe the macnuts in Kawhi, but you know, all of

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<v Speaker 5>these other pursuits. He just has a ton of energy,

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<v Speaker 5>at least that's what Priscilla says, and do all of

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<v Speaker 5>these other things enables him to focus. But the thing

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<v Speaker 5>he loves most doing still, he says, is building and

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<v Speaker 5>that means the next generation of AI.

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<v Speaker 3>Well, before we get to that, because we do have

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<v Speaker 3>a clip from the show in your conversation Emily, Why

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<v Speaker 3>do you think he was so open to showing everything?

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<v Speaker 3>As you said, You've had many conversations over the years,

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<v Speaker 3>this was a different side you felt like, or that

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<v Speaker 3>he was much more comfortable in his skin. Why do

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<v Speaker 3>you think he's ready to kind of reveal that. Is

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<v Speaker 3>that just being older and kind of living life a

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<v Speaker 3>little bit more.

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<v Speaker 5>Yeah, I think it's just a matter of time. You know,

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<v Speaker 5>he talked about how when he started the company twenty

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<v Speaker 5>years ago, I mean it was twenty years ago that

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<v Speaker 5>he was sort of thrust into the spotlight. He just said,

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<v Speaker 5>I didn't know anything about running a company, and I

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<v Speaker 5>would totally mess up in interviews, and then when I

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<v Speaker 5>messed up, I would get all this negative feedback, and

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<v Speaker 5>then I would claim up and I just wouldn't want

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<v Speaker 5>to talk to anyone.

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<v Speaker 6>And over time he's just.

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<v Speaker 5>Gotten a lot more comfortable and confident saying what he thinks.

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<v Speaker 5>And he said, if people don't like it, that's fine.

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<v Speaker 6>And if people like it, great, Like you judge for yourself.

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<v Speaker 5>This is who I am. And you know, one of

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<v Speaker 5>the other interesting things is, you know we've talked about

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<v Speaker 5>Jeff Bezos has has left Amazon, Larry and SERGEI have

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<v Speaker 5>left Google's Google there you know, are these other big

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<v Speaker 5>tech founders who have taken a step back. I didn't

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<v Speaker 5>get the sense that that was happening at all. Like

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<v Speaker 5>Mark Zuckerberg is not going anywhere. You know, he just

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<v Speaker 5>turned forty. He seems to have more energy than ever,

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<v Speaker 5>and he's really excited about the next ten to fifteen

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<v Speaker 5>years building out this AI vision, along with the metaverse

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<v Speaker 5>and augmented and virtual reality.

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<v Speaker 6>All of that is still a.

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<v Speaker 5>Thing, but he says in the next ten to fifteen

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<v Speaker 5>years then the next platform will emerge, and building is

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<v Speaker 5>what makes him the most happy.

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<v Speaker 2>Well, speaking of that AI vision, here's Mark Zuckerberg from

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<v Speaker 2>your interview on the Circuit on controlling his AI destiny.

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<v Speaker 2>Check it out.

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<v Speaker 5>Some people see you as an unlikely champion of open

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<v Speaker 5>source today you're laughing.

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<v Speaker 6>Well, I don't know why.

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<v Speaker 7>I mean, I actually think, well, I.

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<v Speaker 6>Get it, but yeah, you understand the word unlikely.

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<v Speaker 7>Yeah, we've actually Meta have been pretty big proponents of

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<v Speaker 7>open source for a while and it's been a really

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<v Speaker 7>good formula for us. So dating back to how we

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<v Speaker 7>design servers, how we design our data centers, we have

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<v Speaker 7>this whole open compute project that kind of standardized a

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<v Speaker 7>lot of the infrastructure for the industry that's going to

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<v Speaker 7>happen with AI too.

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<v Speaker 5>You're really putting a stake in the ground by open

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<v Speaker 5>sourcing your AI in this attempt to build the AI

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<v Speaker 5>rails for the future. How much of this is a

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<v Speaker 5>strategic way to control or own the next technology wave.

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<v Speaker 7>A lot of how we've grown up over the last

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<v Speaker 7>ten or fifteen years was building our apps through phone

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<v Speaker 7>platforms that our competitors controlled. So it's somewhat soul crushing

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<v Speaker 7>to like go build something that you think is going

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<v Speaker 7>to be good and then just get told by Apple

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<v Speaker 7>that you can't ship it because they want to put

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<v Speaker 7>us in a box because they view.

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<v Speaker 6>Us as competitive.

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<v Speaker 7>You know, we're a big enough company now that one

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<v Speaker 7>of the things that I've resolved is that for the

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<v Speaker 7>next generation of technology, I want us to build and

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<v Speaker 7>have more control over the next set of platforms that

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<v Speaker 7>we're going to build. So I think AI is a

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<v Speaker 7>critical one, and I think augmented and virtual reality is

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<v Speaker 7>another critical one. It's kind of the way that we

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<v Speaker 7>can control our own destiny on this and make sure

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<v Speaker 7>that we have access to leading AI is by building

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<v Speaker 7>it and having it become an industry standard, but it

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<v Speaker 7>actually gets stronger by being able to share it and

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<v Speaker 7>have the ecosystem around it.

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<v Speaker 5>You're continuing to improve meta AI across all of your products,

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<v Speaker 5>but also as a standalone chatbot. Why should we use

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<v Speaker 5>meta over chat GPT?

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<v Speaker 7>Well, there's a bunch of things where it's better, you know.

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<v Speaker 7>One of the things that we're rolling out soon is

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<v Speaker 7>the ability to just like imagine stuff. You're typing something

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<v Speaker 7>in real time. I do this with my daughters all

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<v Speaker 7>the time, and as you're kind of typing and entering

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<v Speaker 7>the query, it's just generating the images as you enter.

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<v Speaker 6>The key strokes.

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<v Speaker 7>It's just really cool. My goal for the medai launch,

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<v Speaker 7>which I mean it's only really a few months old

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<v Speaker 7>at this point, was to by the end of the

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<v Speaker 7>year have met aai'd be the most used AI assistant

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<v Speaker 7>in the world. And I think we're basically on track

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<v Speaker 7>for that. I mean, there's hundreds of millions of people

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<v Speaker 7>who are at the end of this year, yeah, and

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<v Speaker 7>I think we're going to be there before the end

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<v Speaker 7>of the year.

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<v Speaker 2>That's Mark Zuckerberg with Emily Chang on the Circuit Bloomberg

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<v Speaker 2>original series that goes behind the scenes with founders, executives,

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<v Speaker 2>and innovators. Emily, I have to tell you the Mark

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<v Speaker 2>Zuckerberg that we just heard in that clip, he sounds

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<v Speaker 2>different than the Mark Zuckerberg we've heard on stage at

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<v Speaker 2>the Developers conference that we've heard in other interviews. He

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<v Speaker 2>sounded so much more relaxed.

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<v Speaker 6>I completely agree.

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<v Speaker 5>I mean, that question that you saw me ask about

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<v Speaker 5>being the unlikely Champion was basically the first or maybe

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<v Speaker 5>the second question in the interview.

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<v Speaker 6>And just the fact that he kind of laughed.

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<v Speaker 5>And pushed back a little but then acknowledged that he understood.

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<v Speaker 5>I just thought it was such a great moment. You know,

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<v Speaker 5>he was a lot more direct in this interview than

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<v Speaker 5>I've seen him before. I mean, and look, this is

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<v Speaker 5>still his strategy is highly scrutinized. He's still one of

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<v Speaker 5>the most scrutinized people, and Meta is one of the

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<v Speaker 5>most scrutiny scrutinized companies in the world, and they deserve

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<v Speaker 5>that scrutiny because they are hugely, hugely influential. It just

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<v Speaker 5>seems like he's really grown into this role. And uh,

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<v Speaker 5>you know, I'm glad that he is. He's now showing

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<v Speaker 5>a bit of that side of himself to us so

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<v Speaker 5>that we can better understand how he thinks and how

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<v Speaker 5>he leads, and then we can judge for ourselves well.

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<v Speaker 3>Speaking of influence and showing himself on a day where

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<v Speaker 3>we've been focused on Kamala Harris her first campaign rally,

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<v Speaker 3>we were just covering it moments ago.

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<v Speaker 4>You did talk politics with Mark Zuckerberg.

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<v Speaker 6>We did, and.

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<v Speaker 5>He said more than I expected that he would say.

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<v Speaker 5>He you know, you know, first obviously talked about Facebook's

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<v Speaker 5>role in elections and and one of the things that

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<v Speaker 5>they're doing at Facebook is trying to recommend less political

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<v Speaker 5>content in feeds. He said, the number one thing I

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<v Speaker 5>hear from people is that they don't want to see

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<v Speaker 5>political content, and we're gonna we're listening to that. So

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<v Speaker 5>I think Facebook will be playing less of a role

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<v Speaker 5>in the election going forward. But of course he went

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<v Speaker 5>on to talk about Donald Trump and the appeal that

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<v Speaker 5>Trump has, and he did not endorse either candidate, by

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<v Speaker 5>the way, but he did say that he found former

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<v Speaker 5>President Trump's response to the assassination, that that famous picture

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<v Speaker 5>of him pumping his.

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<v Speaker 6>Fist that we all now know so well. He thought

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<v Speaker 6>that was pretty inspiring.

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<v Speaker 5>In fact, he used the word badass to describe Trump's

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<v Speaker 5>reaction to the assassination attempt, and he was like, I

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<v Speaker 5>can see why people like the guy. It's a crazy

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<v Speaker 5>time in America. And the role that I want to

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<v Speaker 5>play is help letting people express themselves but in a

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<v Speaker 5>safe and healthy way, and we're going to try to

0:10:58.360 --> 0:10:59.960
<v Speaker 5>evolve the platform to make that happen.

0:11:00.200 --> 0:11:04.120
<v Speaker 3>Well, incredible stuff. Another incredible episode and interview, Emily, Thanks

0:11:04.160 --> 0:11:06.599
<v Speaker 3>so much, so glad we could catch up with you. You

0:11:06.320 --> 0:11:08.480
<v Speaker 3>can watch The Circuit with Emily Chang tonight at six

0:11:08.600 --> 0:11:11.280
<v Speaker 3>thirty pm Wall Street Time on Bloomberg Television. Also streaming

0:11:11.320 --> 0:11:14.319
<v Speaker 3>at eight thirty pm Wall Street Time Bloomberg Originals. Emily,

0:11:14.360 --> 0:11:17.679
<v Speaker 3>of course, is the host and executive producer of the

0:11:17.720 --> 0:11:20.160
<v Speaker 3>Circuit from Bloomberg Originals.

0:11:20.840 --> 0:11:24.360
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

0:11:24.400 --> 0:11:27.640
<v Speaker 1>Live weekday afternoons from two to five pm Eastern Listen

0:11:27.679 --> 0:11:29.839
<v Speaker 1>on Apple car Play and and Broud Auto with a

0:11:29.840 --> 0:11:34.000
<v Speaker 1>Bloomberg Business act or want us Live on YouTube.

0:11:34.640 --> 0:11:36.320
<v Speaker 2>Cheryl, how many times do you keep heard that AI

0:11:36.440 --> 0:11:36.960
<v Speaker 2>is going to make.

0:11:36.880 --> 0:11:37.560
<v Speaker 1>Their lives easier?

0:11:37.800 --> 0:11:38.960
<v Speaker 4>What in the last sixty seconds.

0:11:39.080 --> 0:11:41.560
<v Speaker 2>Yeah, right, it's going to do the busy work for

0:11:41.640 --> 0:11:43.720
<v Speaker 2>us so we can get to the stuff that really matters.

0:11:44.320 --> 0:11:46.560
<v Speaker 2>Even though I was actually typing this in Google Docs

0:11:46.600 --> 0:11:48.320
<v Speaker 2>and like the automation was trying to fill it in,

0:11:48.760 --> 0:11:50.360
<v Speaker 2>that's kind of what I'm actually trying to say. So

0:11:50.400 --> 0:11:51.439
<v Speaker 2>it's a little impressive.

0:11:51.520 --> 0:11:53.880
<v Speaker 4>I like it when it finishes your sentences or my sentences.

0:11:53.960 --> 0:11:55.880
<v Speaker 2>Okay, So there's this new study out from the freelancing

0:11:55.920 --> 0:11:59.160
<v Speaker 2>platform upwork that actually found that full time employees say

0:11:59.200 --> 0:12:02.360
<v Speaker 2>that AI has added to their workload and then it's

0:12:02.400 --> 0:12:03.880
<v Speaker 2>even contributing to burnout.

0:12:03.920 --> 0:12:05.079
<v Speaker 4>Wait, added to your work?

0:12:05.120 --> 0:12:06.840
<v Speaker 2>Yeah, it's not making things easier, all right.

0:12:06.760 --> 0:12:07.360
<v Speaker 4>So what's going on?

0:12:07.440 --> 0:12:10.600
<v Speaker 3>Kelly Monahan is managing director at the Epwork Research Institute.

0:12:10.640 --> 0:12:12.920
<v Speaker 3>They focus on the future of work, which includes a

0:12:12.920 --> 0:12:15.360
<v Speaker 3>lot of conversations I'm assuming about AI, She joins us

0:12:15.360 --> 0:12:16.000
<v Speaker 3>from Chicago.

0:12:16.080 --> 0:12:17.680
<v Speaker 4>Kelly, what the heck is going on?

0:12:17.760 --> 0:12:19.840
<v Speaker 3>I thought this is supposed to make our life easier

0:12:20.000 --> 0:12:22.000
<v Speaker 3>for us up to do the things that really matter.

0:12:23.920 --> 0:12:26.080
<v Speaker 8>Absolutely. I think what we're seeing right now is the

0:12:26.080 --> 0:12:29.200
<v Speaker 8>classic productivity paradox where we've seen many times before with

0:12:29.280 --> 0:12:32.120
<v Speaker 8>other technologies. You saw on our study ninety six percent

0:12:32.120 --> 0:12:34.760
<v Speaker 8>of global leaders are saying generative AI should be making

0:12:34.800 --> 0:12:37.880
<v Speaker 8>the workforce more productive, but the reality is seventy seven

0:12:37.920 --> 0:12:40.880
<v Speaker 8>percent said is actually adding to their workload. And then

0:12:40.920 --> 0:12:43.559
<v Speaker 8>I think, maybe even more alarming, forty four percent said

0:12:43.559 --> 0:12:45.600
<v Speaker 8>they don't even know how to get these productivity gains,

0:12:45.760 --> 0:12:48.280
<v Speaker 8>and that's resulting in one in three employees looking to

0:12:48.320 --> 0:12:50.880
<v Speaker 8>exit the organization because they're feeling so overwhelmed by their

0:12:50.960 --> 0:12:51.520
<v Speaker 8>job today.

0:12:51.880 --> 0:12:54.199
<v Speaker 2>Wow, so what's going on here?

0:12:54.240 --> 0:12:54.320
<v Speaker 1>Like?

0:12:54.400 --> 0:12:56.840
<v Speaker 2>Why where is the failure happening?

0:12:57.960 --> 0:13:01.400
<v Speaker 8>Yeah? Great question. So a couple of things going on. One,

0:13:01.520 --> 0:13:03.960
<v Speaker 8>this is still a very new technology and we are

0:13:03.960 --> 0:13:06.720
<v Speaker 8>still in net learning phase. I think the mindset shift

0:13:06.720 --> 0:13:09.000
<v Speaker 8>that needs to take place is leaders are looking for

0:13:09.000 --> 0:13:11.400
<v Speaker 8>this to drive efficiency and that's how they're measuring it,

0:13:11.440 --> 0:13:13.280
<v Speaker 8>and that's where they're putting the pressure in their workforce,

0:13:13.679 --> 0:13:16.520
<v Speaker 8>when in reality is there's so much unknowns and this

0:13:16.600 --> 0:13:18.680
<v Speaker 8>is a frontier and so what really needs to be

0:13:18.679 --> 0:13:21.240
<v Speaker 8>taking place is employees thinking of this through an R

0:13:21.280 --> 0:13:23.120
<v Speaker 8>and D lens. What do I need to be learning?

0:13:23.160 --> 0:13:25.280
<v Speaker 8>How do I drive innovation? How do I rethink what

0:13:25.320 --> 0:13:28.079
<v Speaker 8>I'm doing? But instead, what they're feeling is that leaders

0:13:28.080 --> 0:13:29.960
<v Speaker 8>are asking them to do more of the same but

0:13:30.120 --> 0:13:32.360
<v Speaker 8>faster and cheaper, and that right now is just a

0:13:32.360 --> 0:13:34.319
<v Speaker 8>big disconnect because that's not where we are from a

0:13:34.360 --> 0:13:35.360
<v Speaker 8>technology perspective.

0:13:36.000 --> 0:13:39.160
<v Speaker 3>I want to understand, though, exactly what you guys looked

0:13:39.200 --> 0:13:43.800
<v Speaker 3>into in terms of and how what were employees doing

0:13:43.840 --> 0:13:46.040
<v Speaker 3>with AI as they try to figure out how it

0:13:46.080 --> 0:13:48.600
<v Speaker 3>can either help or is just adding to their workload?

0:13:48.640 --> 0:13:51.040
<v Speaker 3>Like what did you exactly look into the research study

0:13:51.080 --> 0:13:53.840
<v Speaker 3>or was it just a case of questioning, you know, employees,

0:13:53.840 --> 0:13:56.760
<v Speaker 3>because I'm curious about who these workers are and what

0:13:57.000 --> 0:13:58.680
<v Speaker 3>they how they were using AI.

0:14:00.600 --> 0:14:02.720
<v Speaker 8>Yeah, so our study is based on knowledge workers and

0:14:02.760 --> 0:14:04.800
<v Speaker 8>this was a global study, so we have representation in

0:14:04.840 --> 0:14:09.240
<v Speaker 8>the US, Australia, Canada, in Europe. And so what we

0:14:09.280 --> 0:14:11.440
<v Speaker 8>really focused on were those workers who are already using

0:14:11.440 --> 0:14:14.440
<v Speaker 8>computer technologies to do their job and so they had

0:14:14.440 --> 0:14:17.000
<v Speaker 8>to have some level of exposure to even understanding AI.

0:14:17.640 --> 0:14:19.560
<v Speaker 8>And what we found was, but they're actually spending a

0:14:19.560 --> 0:14:21.920
<v Speaker 8>lot of their time on right now is auditing the

0:14:21.960 --> 0:14:24.760
<v Speaker 8>AI content that's coming out. They're then having to train

0:14:24.960 --> 0:14:26.800
<v Speaker 8>the AI content because a lot of these are large

0:14:26.880 --> 0:14:29.280
<v Speaker 8>language models that need to be fine tuned and trained.

0:14:29.640 --> 0:14:31.880
<v Speaker 8>And the real disconnect that we're seeing is the majority

0:14:31.880 --> 0:14:35.520
<v Speaker 8>of these individuals are self teaching themselves. There is no

0:14:35.560 --> 0:14:38.880
<v Speaker 8>formal structure with an organization that's helping them upskill and

0:14:38.960 --> 0:14:40.680
<v Speaker 8>actually learn how to do these things, which is why

0:14:40.720 --> 0:14:42.160
<v Speaker 8>I think there's so much friction today.

0:14:42.240 --> 0:14:44.680
<v Speaker 2>Is there any sort of parallel that we can draw

0:14:44.680 --> 0:14:48.520
<v Speaker 2>in recent history where we've seen a technology that in

0:14:48.600 --> 0:14:54.360
<v Speaker 2>your view, actually will be this just has been this

0:14:54.480 --> 0:14:58.400
<v Speaker 2>disruptive and companies have had to upscale their workforce.

0:15:00.760 --> 0:15:02.520
<v Speaker 8>Yeah, so we've seen this, I think in a few

0:15:02.520 --> 0:15:04.240
<v Speaker 8>different times. And now AI has been around since the

0:15:04.320 --> 0:15:06.680
<v Speaker 8>nineteen fifties and I know it's gone through periods of

0:15:06.720 --> 0:15:08.960
<v Speaker 8>winters where it's been overhyped. And now we're in a

0:15:08.960 --> 0:15:11.360
<v Speaker 8>period summer period where there's a lot of investment and

0:15:11.400 --> 0:15:12.920
<v Speaker 8>there's a lot of hype and what this can cause.

0:15:13.360 --> 0:15:15.080
<v Speaker 8>And I think this is a good thing, but the

0:15:15.120 --> 0:15:17.880
<v Speaker 8>reality is all technologies before it have gone through this.

0:15:18.000 --> 0:15:20.880
<v Speaker 8>A lot of people compared this to internet computing, so

0:15:20.920 --> 0:15:23.360
<v Speaker 8>when businesses were mostly done on site and then everyone

0:15:23.400 --> 0:15:26.040
<v Speaker 8>had to quickly become a digital some version of e

0:15:26.240 --> 0:15:29.920
<v Speaker 8>commerce business in order to reach customers. I think over

0:15:29.960 --> 0:15:31.640
<v Speaker 8>time we're going to see that being a pretty good

0:15:31.680 --> 0:15:34.640
<v Speaker 8>comparison and fundamental shift. We're pretty soon you're going to

0:15:34.680 --> 0:15:37.320
<v Speaker 8>hear the conversation around all businesses have to be AI

0:15:37.600 --> 0:15:40.520
<v Speaker 8>powered to some degree. We've seen that with cloud computing.

0:15:40.880 --> 0:15:42.480
<v Speaker 8>I think the problem is right now, this is just

0:15:42.520 --> 0:15:45.160
<v Speaker 8>happening so fast, and we're not giving people enough time

0:15:45.240 --> 0:15:48.040
<v Speaker 8>and enough runway to really make this pivot and change,

0:15:48.040 --> 0:15:49.520
<v Speaker 8>and we're expecting too much too soon.

0:15:49.640 --> 0:15:50.960
<v Speaker 4>Why do you think it's important that we have this

0:15:51.040 --> 0:15:52.080
<v Speaker 4>conversation right now?

0:15:54.160 --> 0:15:57.120
<v Speaker 8>I think right now there's so much pressure of business leaders.

0:15:57.160 --> 0:16:00.800
<v Speaker 8>I mean, they're managing such great macrock. I'm a concerns

0:16:00.880 --> 0:16:04.640
<v Speaker 8>whether it's rising inflation, whether it's global turbulence, and I

0:16:04.640 --> 0:16:07.120
<v Speaker 8>think right now the workforce is looking for something to

0:16:07.520 --> 0:16:10.320
<v Speaker 8>grasp onto to help make their work lives easier. They've

0:16:10.320 --> 0:16:11.960
<v Speaker 8>been through a lot as we think about coming out

0:16:11.960 --> 0:16:14.320
<v Speaker 8>of the pandemic. And what my concern is and why

0:16:14.320 --> 0:16:16.680
<v Speaker 8>I think this conversation is so important is this is

0:16:16.720 --> 0:16:19.840
<v Speaker 8>a human plus machine conversation. There's so much headlines about

0:16:19.840 --> 0:16:21.800
<v Speaker 8>dis generative AI and how it's going to save the day,

0:16:22.160 --> 0:16:24.560
<v Speaker 8>but in reality, humans are going to help save the day,

0:16:24.600 --> 0:16:26.920
<v Speaker 8>and we really need a new model of leadership and

0:16:27.000 --> 0:16:29.040
<v Speaker 8>talent and work mix in order to get this right.

0:16:29.080 --> 0:16:31.440
<v Speaker 8>And I think we're at a critical cross point that

0:16:31.480 --> 0:16:34.280
<v Speaker 8>if we have too much technology investment without enough human

0:16:34.320 --> 0:16:36.760
<v Speaker 8>development investment, we may be leaving people behind.

0:16:37.000 --> 0:16:39.040
<v Speaker 2>So I want to get to some takeaways here before

0:16:39.040 --> 0:16:41.680
<v Speaker 2>we let you go. Takeaways for knowledge workers who are

0:16:41.680 --> 0:16:45.160
<v Speaker 2>out there dealing with this brave new world, people like

0:16:45.240 --> 0:16:47.840
<v Speaker 2>us who are trying to understand and incorporate AI into

0:16:47.840 --> 0:16:49.480
<v Speaker 2>our lives. What should we be doing.

0:16:50.680 --> 0:16:52.720
<v Speaker 8>Yeah, there's two things that I think are critical that

0:16:52.760 --> 0:16:55.480
<v Speaker 8>our research found that where people were using AI and

0:16:55.520 --> 0:16:57.480
<v Speaker 8>it wasn't burning them out and they felt more productive.

0:16:57.920 --> 0:17:00.240
<v Speaker 8>The very first thing is seeking outside help. I mean,

0:17:00.320 --> 0:17:02.240
<v Speaker 8>this is, to your point, a brave new world. And

0:17:02.280 --> 0:17:04.359
<v Speaker 8>there's other people who are much further ahead of this.

0:17:04.880 --> 0:17:07.440
<v Speaker 8>We've seen this in the answer community. They are much

0:17:07.440 --> 0:17:10.560
<v Speaker 8>more likely to be adopting AI incorporate it into their workflows.

0:17:10.600 --> 0:17:12.680
<v Speaker 8>I mean, their livelihood depends on staying on top of

0:17:12.720 --> 0:17:15.119
<v Speaker 8>the skills, and so this is a great community to

0:17:15.160 --> 0:17:17.760
<v Speaker 8>go after to really seek the outside help to both

0:17:17.880 --> 0:17:21.080
<v Speaker 8>educate and understand how you can be incorporating AI. And

0:17:21.080 --> 0:17:22.439
<v Speaker 8>then the second thing, and this is a little bit

0:17:22.480 --> 0:17:24.800
<v Speaker 8>more called to like a business leader perspective, is how

0:17:24.840 --> 0:17:27.640
<v Speaker 8>we actually begin to measure productivity. I worry if we're

0:17:27.800 --> 0:17:31.240
<v Speaker 8>purely looking at efficiency, hours worked, output, we're missing the

0:17:31.240 --> 0:17:34.000
<v Speaker 8>big conversation that we should be having instead. When we

0:17:34.040 --> 0:17:36.920
<v Speaker 8>saw on our research people want to be measured against creativity, innovation,

0:17:37.000 --> 0:17:40.440
<v Speaker 8>how they're adapting to change their contributions to the company strategy.

0:17:40.800 --> 0:17:43.080
<v Speaker 8>And that's the conversation I want to see Jenai play in.

0:17:44.280 --> 0:17:46.840
<v Speaker 4>Yeah, it's interesting, you know, and I do wonder.

0:17:47.960 --> 0:17:49.760
<v Speaker 3>I thought what was interesting also that one in three

0:17:49.760 --> 0:17:52.280
<v Speaker 3>full time employees saying they will likely quit their job

0:17:52.359 --> 0:17:54.080
<v Speaker 3>in the next six months because of the strain that

0:17:54.080 --> 0:17:58.200
<v Speaker 3>they are feeling from rising productivity demand. And I don't

0:17:58.240 --> 0:18:01.400
<v Speaker 3>know what that says maybe more strongly, more significantly about

0:18:01.480 --> 0:18:04.000
<v Speaker 3>kind of the job market, the economic outlook right now.

0:18:04.960 --> 0:18:06.720
<v Speaker 3>If we don't get this right, then what Because I

0:18:06.760 --> 0:18:08.560
<v Speaker 3>just do wonder if it's just I mean, this is

0:18:08.640 --> 0:18:11.919
<v Speaker 3>the you know, typical strain. I feel like when we

0:18:11.960 --> 0:18:14.280
<v Speaker 3>all were starting to embrace the internet, right and figure

0:18:14.320 --> 0:18:16.800
<v Speaker 3>that out, that there's always this disconnect as we find

0:18:16.800 --> 0:18:20.920
<v Speaker 3>our way through some you know, advancements in technology. As

0:18:20.920 --> 0:18:22.479
<v Speaker 3>you say, AI is not a new thing. But this

0:18:22.520 --> 0:18:23.760
<v Speaker 3>is certainly a different level.

0:18:24.160 --> 0:18:26.960
<v Speaker 4>Is this just kind of a normal transition period.

0:18:28.400 --> 0:18:30.520
<v Speaker 8>Yeah, I think, you know, history tends to repeat itself,

0:18:30.520 --> 0:18:33.800
<v Speaker 8>and we've seen this before. I think what's probably unprecedented

0:18:34.040 --> 0:18:36.080
<v Speaker 8>is just the speed and pace of change, and I

0:18:36.080 --> 0:18:37.919
<v Speaker 8>think leaders don't want to be left behind. If we

0:18:37.960 --> 0:18:40.560
<v Speaker 8>go back to cloud computing, there were early adopters, and

0:18:40.560 --> 0:18:42.040
<v Speaker 8>I think people who are able to get ahead and

0:18:42.080 --> 0:18:45.080
<v Speaker 8>find efficiencies and win in their industry. And I think

0:18:45.080 --> 0:18:47.600
<v Speaker 8>there's that sense of urgency today because this is such

0:18:47.600 --> 0:18:50.600
<v Speaker 8>a fast moving technology, and again it is still a

0:18:50.640 --> 0:18:53.000
<v Speaker 8>fairly strong labor market. People want to work for some

0:18:53.080 --> 0:18:54.960
<v Speaker 8>of the best companies who are leading edge, and so

0:18:55.000 --> 0:18:57.240
<v Speaker 8>I do think there's this urgency to win this game

0:18:57.560 --> 0:18:59.600
<v Speaker 8>and win this AI race. But I do think we

0:18:59.680 --> 0:19:02.239
<v Speaker 8>have to have patients, and I think people are feeling it.

0:19:02.400 --> 0:19:05.359
<v Speaker 8>And that's why the call here is slow down, bringing

0:19:05.440 --> 0:19:08.040
<v Speaker 8>outside help and really think about what's the business problem

0:19:08.080 --> 0:19:10.199
<v Speaker 8>and how are you driving creativity and innovation and not

0:19:10.240 --> 0:19:10.919
<v Speaker 8>just efficiency.

0:19:10.960 --> 0:19:15.520
<v Speaker 2>Here, Hey, Kelly, upwork it's a publicly traded company. How

0:19:15.560 --> 0:19:17.919
<v Speaker 2>does this change the way that you guys are doing

0:19:18.000 --> 0:19:18.880
<v Speaker 2>business at upwork?

0:19:20.640 --> 0:19:20.960
<v Speaker 1>Yeah?

0:19:21.000 --> 0:19:23.600
<v Speaker 8>So, I mean AI, you know, we are focused on

0:19:23.640 --> 0:19:27.000
<v Speaker 8>AI making our platform and product experience even better for

0:19:27.040 --> 0:19:29.760
<v Speaker 8>our freelancers and our clients who are coming into search

0:19:30.080 --> 0:19:32.879
<v Speaker 8>really just having a much more intelligent experience from a

0:19:32.960 --> 0:19:35.920
<v Speaker 8>freelancer perspective. We continue to see this being our fastest

0:19:35.960 --> 0:19:39.240
<v Speaker 8>growing category on our platform. Freelancers who are using AI

0:19:39.280 --> 0:19:42.000
<v Speaker 8>are getting higher value work, They're earning more than their peers,

0:19:42.359 --> 0:19:43.760
<v Speaker 8>and so I think this has been a real game

0:19:43.840 --> 0:19:46.399
<v Speaker 8>changer for the freelancer community.

0:19:46.480 --> 0:19:47.479
<v Speaker 4>All Right, we're going to leave it there.

0:19:47.520 --> 0:19:49.800
<v Speaker 3>Hey, listen, thank you so much. Certainly something to think about.

0:19:49.840 --> 0:19:52.160
<v Speaker 3>And you know, we just heard from Emily Emily Chang

0:19:52.200 --> 0:19:54.880
<v Speaker 3>talking with Mark Zuckerberg about what they are doing, certainly

0:19:54.920 --> 0:19:55.399
<v Speaker 3>with AI.

0:19:55.520 --> 0:19:57.480
<v Speaker 4>So this is kind of our world that.

0:19:57.440 --> 0:20:00.639
<v Speaker 3>Continues to be Kelly Monahan, she's managing to Rectord Atwork

0:20:00.680 --> 0:20:03.800
<v Speaker 3>Research Institute, joining us from Chicago on this Tuesday.

0:20:05.560 --> 0:20:09.440
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Listen live

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0:20:24.320 --> 0:20:28.640
<v Speaker 1>Immaco a journal.

0:20:29.680 --> 0:20:30.680
<v Speaker 6>How about you let me drive?

0:20:30.920 --> 0:20:36.440
<v Speaker 1>Oh no, no, no, no, honey, please, I'll do the travels.

0:20:37.480 --> 0:20:38.240
<v Speaker 6>I want to drive.

0:20:40.480 --> 0:20:41.400
<v Speaker 9>It's good question.

0:20:45.160 --> 0:20:46.720
<v Speaker 1>This please the drive to the.

0:20:46.680 --> 0:20:48.000
<v Speaker 2>Clothes dot Com.

0:20:48.520 --> 0:20:51.600
<v Speaker 1>Well bunch old down on Bloomberg Radio.

0:20:52.400 --> 0:20:53.760
<v Speaker 2>What do you say, Carol, TikTok.

0:20:54.800 --> 0:20:57.200
<v Speaker 4>Ready, I'm just looking ahead.

0:20:57.200 --> 0:20:59.120
<v Speaker 3>I'm thinking a lot about some of the earnings after

0:20:59.119 --> 0:20:59.680
<v Speaker 3>the closing bell.

0:20:59.720 --> 0:21:02.360
<v Speaker 2>This is starting Tesla alphabet. What's the plan?

0:21:02.600 --> 0:21:04.760
<v Speaker 4>Yeah, I mean yes, yes, yes, and yes.

0:21:05.280 --> 0:21:07.239
<v Speaker 3>But it's just what we're talking about. A third of

0:21:07.600 --> 0:21:11.159
<v Speaker 3>the S and P market cap this week expected to report.

0:21:11.160 --> 0:21:13.480
<v Speaker 3>And I just think you know, Gina Martin Adamsho, we

0:21:13.480 --> 0:21:15.399
<v Speaker 3>talked to you yesterday. I said, so far early in

0:21:15.440 --> 0:21:19.520
<v Speaker 3>the game, the numbers have been coming in really strong.

0:21:19.840 --> 0:21:21.640
<v Speaker 2>Don't forget about Texas instruments too.

0:21:21.760 --> 0:21:24.240
<v Speaker 3>Texas Instruments, yep, going to be on it. The chip

0:21:24.280 --> 0:21:27.000
<v Speaker 3>sector always so important, different aspects to it. But having

0:21:27.040 --> 0:21:28.720
<v Speaker 3>said that, we're early in the game. So what these

0:21:28.760 --> 0:21:31.920
<v Speaker 3>big megacap tech names have to say really really important.

0:21:32.080 --> 0:21:34.000
<v Speaker 2>Let's see what Jimmy Lee has to say about that.

0:21:34.000 --> 0:21:36.880
<v Speaker 2>He's founder and chief executive officer at the Wealth Consulting Group.

0:21:36.920 --> 0:21:39.480
<v Speaker 2>They got more than five billion dollars in assets under management.

0:21:39.640 --> 0:21:43.359
<v Speaker 2>Usually usually he's in Las Vegas, but he's here greasing

0:21:43.440 --> 0:21:45.399
<v Speaker 2>us with his presence in New York City in the

0:21:45.440 --> 0:21:49.240
<v Speaker 2>Bloomberg Interactive Brokers studio. Sorry about the rain today, It's okay.

0:21:49.480 --> 0:21:52.000
<v Speaker 2>Sometimes happens, Okay, sometimes that happens. I know it doesn't

0:21:52.040 --> 0:21:54.840
<v Speaker 2>hapen Las Vegas, but sometimes it happens here in New York.

0:21:55.800 --> 0:21:58.520
<v Speaker 2>Let's start with big tech. How are you watching what

0:21:58.560 --> 0:22:00.440
<v Speaker 2>we hear from a third of the market cap of

0:22:00.440 --> 0:22:02.640
<v Speaker 2>the S and P five hundred this week too? Sort

0:22:02.680 --> 0:22:04.520
<v Speaker 2>of define this part of the summer.

0:22:05.040 --> 0:22:08.440
<v Speaker 9>Well, you know, as we've talked about before this year,

0:22:08.800 --> 0:22:12.000
<v Speaker 9>we've been bullish on tech going into rate cuts, and

0:22:12.560 --> 0:22:14.320
<v Speaker 9>I could not have predicted that we're going to have

0:22:14.359 --> 0:22:16.119
<v Speaker 9>the run in the Max seven and some of the

0:22:16.119 --> 0:22:19.200
<v Speaker 9>big tech stocks that we've seen, you know, so far

0:22:19.280 --> 0:22:21.760
<v Speaker 9>this year. So it's been a huge run. But we've

0:22:21.800 --> 0:22:24.320
<v Speaker 9>started to see now, as in the last ten days,

0:22:24.400 --> 0:22:26.600
<v Speaker 9>a little bit of a rotation right out of the

0:22:26.640 --> 0:22:29.280
<v Speaker 9>big tech trade and into other areas of the market

0:22:29.320 --> 0:22:32.560
<v Speaker 9>that really haven't participated as much, such as small cap stocks,

0:22:33.480 --> 0:22:36.479
<v Speaker 9>even oversea stocks, some of the more cyclical sectors that

0:22:36.520 --> 0:22:39.479
<v Speaker 9>are going to benefit maybe from a lower interest rate environment,

0:22:39.520 --> 0:22:41.240
<v Speaker 9>which is how we're positioned.

0:22:40.760 --> 0:22:42.679
<v Speaker 4>And so you've been moving into these other areas.

0:22:42.720 --> 0:22:45.040
<v Speaker 9>Yes, in April when we did our rebounds, we added

0:22:45.359 --> 0:22:47.879
<v Speaker 9>duration to our fixed income portfolios, Carol, so that we

0:22:47.920 --> 0:22:50.880
<v Speaker 9>can benefit from a lowering ten year yield. We think

0:22:50.920 --> 0:22:53.800
<v Speaker 9>that investors would be positioned for more of a three

0:22:53.800 --> 0:22:56.119
<v Speaker 9>and a half percent type treasury at some point, not

0:22:56.320 --> 0:22:58.160
<v Speaker 9>five and a half as people were fearing back then,

0:22:59.040 --> 0:23:03.359
<v Speaker 9>and cyclical sector. So we're long on financials industrials still

0:23:03.400 --> 0:23:06.040
<v Speaker 9>like tech, but I think that investors are going to

0:23:06.320 --> 0:23:08.600
<v Speaker 9>feel as with fresh cash that's a little expensive to

0:23:08.640 --> 0:23:09.760
<v Speaker 9>go into some of these names now.

0:23:09.960 --> 0:23:12.560
<v Speaker 3>So okay, so what if like Alphabet comes out and

0:23:12.600 --> 0:23:13.760
<v Speaker 3>they blow away the numbers?

0:23:13.800 --> 0:23:15.080
<v Speaker 4>Do you rethink it again?

0:23:15.200 --> 0:23:17.280
<v Speaker 3>Which I feel like we've had this scenario over and

0:23:17.359 --> 0:23:19.960
<v Speaker 3>over again where everybody says enough with kind of the

0:23:19.960 --> 0:23:23.480
<v Speaker 3>big tech names, look elsewhere, only for them to kind

0:23:23.480 --> 0:23:24.400
<v Speaker 3>of outperform.

0:23:24.880 --> 0:23:27.560
<v Speaker 9>Well, I would say that big tech is actually backed

0:23:27.560 --> 0:23:29.240
<v Speaker 9>it up with big earnings, right, So most of the

0:23:29.280 --> 0:23:31.840
<v Speaker 9>earnings came in the first quarter from those big companies,

0:23:32.080 --> 0:23:34.040
<v Speaker 9>but that's supposed to be different in the second half

0:23:34.080 --> 0:23:35.760
<v Speaker 9>of this year. So it's supposed to broaden out the

0:23:35.840 --> 0:23:39.280
<v Speaker 9>earnings expectations of the marketplace, and I think that's what's

0:23:39.280 --> 0:23:42.080
<v Speaker 9>going to happen. So do you go back into tech

0:23:42.160 --> 0:23:44.960
<v Speaker 9>on the dips maybe on some of these cellos and.

0:23:44.960 --> 0:23:47.560
<v Speaker 3>The Nasdaq one hundred down four percent last week? Would

0:23:47.600 --> 0:23:49.320
<v Speaker 3>you have been buying on that pullback?

0:23:49.359 --> 0:23:52.680
<v Speaker 9>Well, people were buying. I think naturally those companies get

0:23:52.680 --> 0:23:54.520
<v Speaker 9>a bid just because of all the money going into

0:23:54.520 --> 0:23:57.280
<v Speaker 9>systematic investment programs and all the index products. So they're

0:23:57.280 --> 0:23:59.520
<v Speaker 9>going to get their fair share of buying regardless. But

0:23:59.600 --> 0:24:01.919
<v Speaker 9>that being said, I think investors actually need to be cautious.

0:24:01.960 --> 0:24:04.520
<v Speaker 9>I mean, think about twenty twenty two, those group of

0:24:04.560 --> 0:24:07.639
<v Speaker 9>companies went down a lot as a percentage, and I

0:24:07.640 --> 0:24:09.479
<v Speaker 9>think that's one of the reasons why they've come up

0:24:09.480 --> 0:24:12.080
<v Speaker 9>so much since the loads of October twenty twenty two.

0:24:12.080 --> 0:24:15.200
<v Speaker 9>But one of the statistics that we follow is how

0:24:15.280 --> 0:24:18.040
<v Speaker 9>much money is going into the different acid classes, equities,

0:24:18.040 --> 0:24:21.000
<v Speaker 9>fixed income, in cash, and since October of twenty two

0:24:21.040 --> 0:24:23.520
<v Speaker 9>and the low more money has come out of stocks,

0:24:23.680 --> 0:24:26.640
<v Speaker 9>out of equities, in mutual funds and ETFs than gone in,

0:24:27.000 --> 0:24:29.399
<v Speaker 9>which is fascinating. Right, So all the statistics that we

0:24:29.480 --> 0:24:32.880
<v Speaker 9>always talk about as advisors, the average investor always getting

0:24:32.920 --> 0:24:35.160
<v Speaker 9>a small fraction of the return of the actual investments

0:24:35.160 --> 0:24:37.600
<v Speaker 9>that they own. It's because of market timing or fear

0:24:37.640 --> 0:24:40.600
<v Speaker 9>or panic, and this happened again so twenty twenty three

0:24:40.880 --> 0:24:42.920
<v Speaker 9>and so far this year has been a huge bowl

0:24:42.960 --> 0:24:45.320
<v Speaker 9>market that many investors have not participated in.

0:24:45.920 --> 0:24:48.359
<v Speaker 2>What would you say to those investors haven't participated, time

0:24:48.400 --> 0:24:49.679
<v Speaker 2>to get off the sidelines?

0:24:50.160 --> 0:24:52.720
<v Speaker 9>Well, I mean again, I think they miss I think

0:24:52.760 --> 0:24:56.280
<v Speaker 9>diversification is important, so I wouldn't say go chase right. So,

0:24:56.920 --> 0:24:59.320
<v Speaker 9>I know a lot of a lot of us as

0:24:59.320 --> 0:25:01.200
<v Speaker 9>advisors get a lot of phone calls about why don't

0:25:01.240 --> 0:25:03.880
<v Speaker 9>we have more Navidio or certain companies are in the news.

0:25:03.920 --> 0:25:05.600
<v Speaker 2>I've gone up so much, But I.

0:25:05.520 --> 0:25:07.880
<v Speaker 9>Think investors really need to be cautious at this point.

0:25:07.960 --> 0:25:10.920
<v Speaker 9>So if you've been invested, or even if you're out

0:25:11.000 --> 0:25:12.639
<v Speaker 9>of the market and you're trying to get back in,

0:25:12.720 --> 0:25:14.320
<v Speaker 9>I don't think it's a smart idea to try to

0:25:14.400 --> 0:25:16.359
<v Speaker 9>chase these returns of the ones that have gone up

0:25:16.359 --> 0:25:18.919
<v Speaker 9>the most, still being diversified and maybe a little bit

0:25:19.000 --> 0:25:21.080
<v Speaker 9>more boring if you're going to participate in equities, is

0:25:21.080 --> 0:25:22.960
<v Speaker 9>the way to go. I think an easier trade to

0:25:22.960 --> 0:25:25.479
<v Speaker 9>actually is fixed income. So, as I said, with what

0:25:25.520 --> 0:25:27.320
<v Speaker 9>we think is going to happen with interest rates, you

0:25:27.320 --> 0:25:29.840
<v Speaker 9>can get a nice yield on a fixed income portfolio

0:25:29.880 --> 0:25:31.600
<v Speaker 9>and maybe some of the money back that you've lost

0:25:31.600 --> 0:25:34.000
<v Speaker 9>in the last several years on the nin acid values

0:25:34.000 --> 0:25:34.600
<v Speaker 9>of the bonds.

0:25:34.960 --> 0:25:36.960
<v Speaker 4>Is that a smart play or a cautious play.

0:25:37.160 --> 0:25:39.119
<v Speaker 9>I think it's actually a pretty smart play because of

0:25:39.160 --> 0:25:41.800
<v Speaker 9>the way the market's rallied so much this year already

0:25:42.119 --> 0:25:44.560
<v Speaker 9>that we could go a little sideways, could get volatility

0:25:44.560 --> 0:25:47.720
<v Speaker 9>with the election and with geopolitics, and who knows what's

0:25:47.720 --> 0:25:50.480
<v Speaker 9>going to happen, And so if I think that there's

0:25:50.560 --> 0:25:53.240
<v Speaker 9>probably as much upside in fixed income probably as there

0:25:53.320 --> 0:25:55.280
<v Speaker 9>might be inequities right now for the main of the year.

0:25:55.720 --> 0:25:57.920
<v Speaker 2>Okay, before we let you go, we got to talk

0:25:57.960 --> 0:26:00.359
<v Speaker 2>politics here, because there's been a huge shake up in

0:26:00.400 --> 0:26:02.960
<v Speaker 2>the race for president in the last forty eight hours,

0:26:03.320 --> 0:26:05.680
<v Speaker 2>with Kamala Harris now likely to be at the top

0:26:05.680 --> 0:26:09.720
<v Speaker 2>of the ticket. Does that change your outlook at all

0:26:09.960 --> 0:26:12.880
<v Speaker 2>when it comes to how you're deploying money or how

0:26:12.880 --> 0:26:13.480
<v Speaker 2>you're invested.

0:26:13.920 --> 0:26:16.640
<v Speaker 9>You know, our view is to not try to make

0:26:16.800 --> 0:26:19.080
<v Speaker 9>two big of bets on who you think is going

0:26:19.119 --> 0:26:20.960
<v Speaker 9>to be in the White House next time, and so

0:26:21.000 --> 0:26:22.879
<v Speaker 9>I think the investors should be cautious on that. It

0:26:22.880 --> 0:26:25.639
<v Speaker 9>doesn't always play out anyways. And so of course, you know,

0:26:25.800 --> 0:26:29.120
<v Speaker 9>with a Trump presidency, we know what he's been talking about.

0:26:29.560 --> 0:26:32.520
<v Speaker 9>He's been there before, so I think, you know, less regulation,

0:26:32.640 --> 0:26:34.959
<v Speaker 9>lower taxes, you can kind of count on that. I

0:26:35.040 --> 0:26:38.120
<v Speaker 9>think one thing to taxes for some, Yeah, for some.

0:26:38.359 --> 0:26:40.600
<v Speaker 9>I think one area to be cautious though for everybody

0:26:40.680 --> 0:26:44.760
<v Speaker 9>is is both sides of the parties are against China,

0:26:44.880 --> 0:26:46.200
<v Speaker 9>and so I think you have to be very careful

0:26:46.240 --> 0:26:49.320
<v Speaker 9>about your overseas investments in China, especially with Trump as

0:26:49.320 --> 0:26:51.600
<v Speaker 9>he talks about the you know, higher tariffs that he

0:26:51.640 --> 0:26:54.639
<v Speaker 9>may want to try to employ, and we remember what

0:26:54.640 --> 0:26:57.480
<v Speaker 9>that was like when those first happened. In hindsight, maybe

0:26:57.480 --> 0:26:59.679
<v Speaker 9>it was a good thing as we sit here today,

0:27:00.080 --> 0:27:01.880
<v Speaker 9>but I think that could cost some volatility too.

0:27:02.280 --> 0:27:05.080
<v Speaker 4>So if someone's got new money, you're saying go fixed income.

0:27:05.440 --> 0:27:09.760
<v Speaker 9>Well, I think diversification, and I know, yeah, so at

0:27:09.760 --> 0:27:11.480
<v Speaker 9>the top of the list, I just think it's maybe

0:27:11.480 --> 0:27:15.280
<v Speaker 9>a probably less volatile trade. But you know, diversification I

0:27:15.280 --> 0:27:17.640
<v Speaker 9>think is very important. Another one is just three months ago.

0:27:17.760 --> 0:27:20.919
<v Speaker 3>But if diversification is there all the time, right all

0:27:20.960 --> 0:27:23.600
<v Speaker 3>you guys, right, I get it. Are you saying though,

0:27:23.960 --> 0:27:27.080
<v Speaker 3>if you're going to overweight somewhere, you would say overweight

0:27:27.119 --> 0:27:28.040
<v Speaker 3>fixed income now.

0:27:28.320 --> 0:27:28.840
<v Speaker 6>A little bit?

0:27:28.960 --> 0:27:31.840
<v Speaker 9>And I think especially for the nervous nelly investors that

0:27:31.920 --> 0:27:34.720
<v Speaker 9>maybe got out of their long term investments in twenty

0:27:34.760 --> 0:27:37.760
<v Speaker 9>twenty two when the market was going down and moved

0:27:37.760 --> 0:27:40.120
<v Speaker 9>into cash for the what I call the sucker bed

0:27:40.119 --> 0:27:42.199
<v Speaker 9>of four or five percent, and missed out on the

0:27:42.200 --> 0:27:45.320
<v Speaker 9>long term retterms of equities since the low you know,

0:27:45.560 --> 0:27:47.879
<v Speaker 9>love twenty twenty two. I think if you're cautious to

0:27:47.920 --> 0:27:49.879
<v Speaker 9>get back in, you don't want to get whip sealed again,

0:27:50.200 --> 0:27:52.040
<v Speaker 9>fixed income might be a better way to play it.

0:27:52.080 --> 0:27:53.480
<v Speaker 9>As you're trying to get back in the market.

0:27:55.200 --> 0:27:57.920
<v Speaker 2>We just got ten seconds left fixed income for how long?

0:27:58.600 --> 0:27:58.800
<v Speaker 1>You know?

0:27:59.160 --> 0:28:01.040
<v Speaker 9>I think at least in until we see the treasure

0:28:01.160 --> 0:28:02.760
<v Speaker 9>tenure maybe closer to about ten to three and a

0:28:02.760 --> 0:28:03.240
<v Speaker 9>half percent.

0:28:04.800 --> 0:28:06.359
<v Speaker 3>Yeah, so a little bit of a ways to go,

0:28:06.480 --> 0:28:08.720
<v Speaker 3>but a couple of rate cuts would certainly help us move.

0:28:08.720 --> 0:28:10.040
<v Speaker 3>I'm just taking a look at the tenure right now,

0:28:10.160 --> 0:28:12.480
<v Speaker 3>four twenty four, so a little bit of the ways.

0:28:12.520 --> 0:28:13.800
<v Speaker 9>One last dat if I can just give it a

0:28:13.800 --> 0:28:16.680
<v Speaker 9>real quick Three months ago, Russell two thousand and forty

0:28:16.720 --> 0:28:18.760
<v Speaker 9>percent of the Russell two thousand companies were above their

0:28:18.800 --> 0:28:21.320
<v Speaker 9>two day moving average. Now it's over seventy percent.

0:28:21.280 --> 0:28:24.119
<v Speaker 4>So we're seeing quite a move up there. Great to

0:28:24.119 --> 0:28:24.879
<v Speaker 4>have you here in studio.

0:28:24.920 --> 0:28:27.119
<v Speaker 3>You will Jimmy Lee, founder and chief executive officer at

0:28:27.119 --> 0:28:30.080
<v Speaker 3>the Wealth Consulting Group, joining us here in our studio.

0:28:31.000 --> 0:28:34.040
<v Speaker 1>This is the Bloomberg Business Week Podcast. I'll a a

0:28:34.040 --> 0:28:37.840
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0:28:38.320 --> 0:28:41.600
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0:28:41.800 --> 0:28:45.200
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0:28:45.280 --> 0:28:48.000
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0:28:48.120 --> 0:28:52.000
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