WEBVTT - Facing Artificial Intelligence Technology

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Stenebek on Bloomberg Radio.

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<v Speaker 2>It does feel like everything that was connected with AI

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<v Speaker 2>was often running. It became the buzzword on corporate earnings calls.

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<v Speaker 2>Yet Nvidia, it's your top performing name in the S

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<v Speaker 2>and P five hundred, two hundred and twenty percent. They

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<v Speaker 2>make the chips that are needed in the massive amounts

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<v Speaker 2>of calculations. Just today we had syrup Tech. It's a

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<v Speaker 2>startup that makes AI tools to help fashion retailers plan

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<v Speaker 2>and manage their inventory. They raised about seventeen and a

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<v Speaker 2>half million in a funding round. So it's just all

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<v Speaker 2>in on AI. There's a lot going on.

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<v Speaker 1>And it's everywhere. I was talking to a banker this

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<v Speaker 1>morning and she was saying that when we think about AI,

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<v Speaker 1>you can't just think about it as generator AVAI or

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<v Speaker 1>the chip makers, the foundations. This is something that every

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<v Speaker 1>company has to have an answer to, and investors are

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<v Speaker 1>asking that question because the way she put it, either

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<v Speaker 1>going to be a winner, you're going to be roadkilled. Right.

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<v Speaker 2>That's a really interesting and people are building out their

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<v Speaker 2>infrastructure to support it. So our next guest definitely all

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<v Speaker 2>in on AI. Delighted to have with us Mandy Long,

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<v Speaker 2>CEO and board member a Big Bear AI joining us

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<v Speaker 2>on Zoom in Chicago. Mandy, it is I feel like

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<v Speaker 2>the topic there's two topics this year. It's weight loss,

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<v Speaker 2>drugs and AI, no doubt about it. Tell us about

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<v Speaker 2>what this year has been like for you.

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<v Speaker 3>Guys, absolutely, and thank you for having me. Yeah, it

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<v Speaker 3>has been a huge year for AI, and in no

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<v Speaker 3>small part because of the rollout of chat GPT, which

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<v Speaker 3>did celebrate its birthday yesterday. I think is what it's

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<v Speaker 3>meant for us right in Big ba AI. You know,

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<v Speaker 3>we've been well we've only been a publicly traded company

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<v Speaker 3>for a couple of years. We've been at this for

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<v Speaker 3>a while, and we apply artificial intelligence to national security

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<v Speaker 3>missions right and enterprises. I think something that has been

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<v Speaker 3>a big catalyst for us, and I heard the comments

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<v Speaker 3>earlier around the fact that it really isn't just about

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<v Speaker 3>generative AI, right, artificial intelligence in general, right in the

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<v Speaker 3>application of it, particularly the operational application of it right,

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<v Speaker 3>the use in production, in helping people is what has

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<v Speaker 3>been a big game changer for our business, and as

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<v Speaker 3>we look towards the future, it's what makes us incredibly

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<v Speaker 3>excited about where we're headed.

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<v Speaker 2>You are a small market cap two hundred and eighty

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<v Speaker 2>two million. You've had quite a run this year, like

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<v Speaker 2>a lot of names in the space, up one hundred

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<v Speaker 2>and sixty seven percent. About fifteen percent of the float

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<v Speaker 2>is shorted, so investors are watching it very carefully considering

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<v Speaker 2>the run up. Dig a little deeper and tell us

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<v Speaker 2>exactly what you guys are doing and who your customers are,

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<v Speaker 2>because from what I understand, it's a lot of the

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<v Speaker 2>US government, if not all.

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<v Speaker 3>Yeah, so our entire business is not all federal government.

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<v Speaker 3>We work about twenty federal agencies, about one hundred and

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<v Speaker 3>sixty commercial customers in the private sector, and how our

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<v Speaker 3>business breaks down is really into three verticals. We do

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<v Speaker 3>work in supply chain and logistics, we do work in cybersecurity,

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<v Speaker 3>and we do work in autonomous systems. And when you

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<v Speaker 3>think about those three markets, there's actually a high degree

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<v Speaker 3>of complementary nature because we're securing supply chains the same

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<v Speaker 3>way that we're in introducing autonomous technology, and AI plays

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<v Speaker 3>a role in all three of those. The big difference

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<v Speaker 3>maker for us is that we combine very deep subject

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<v Speaker 3>matter expertise or the vast majority of our employees who

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<v Speaker 3>are supporting our customers come directly from those customer environments,

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<v Speaker 3>regardless of whether it's in the public or private sector.

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<v Speaker 3>And we pair that with a really open architecture approach

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<v Speaker 3>associated with solving customer problems. And when it comes to

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<v Speaker 3>the competitive landscape, where there's still a lot of players

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<v Speaker 3>who live in proprietary, closed system pay me support forever,

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<v Speaker 3>we take a pretty different tactic because for us it's outcomes.

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<v Speaker 1>Well, man, you mentioned competition. How do you view the

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<v Speaker 1>evolution of Big Bear AI within what still is a

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<v Speaker 1>very much nascent part of the market.

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<v Speaker 3>AI is absolutely still in the early days because the

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<v Speaker 3>difference maker and those who will survive versus those who

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<v Speaker 3>I think the words you use for b roadkill, which

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<v Speaker 3>I think is fair, is going to be you know,

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<v Speaker 3>whether or not you can do it in production at

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<v Speaker 3>scale and you can work in an environment that is

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<v Speaker 3>imperfect for us, right, I think because of our roots

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<v Speaker 3>in national security and in working in highly complex and

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<v Speaker 3>imperfect environments, we have a bit of a leg up there, right,

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<v Speaker 3>that causes us to stand out relative to the competition.

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<v Speaker 3>A lot of how we also apply the technology, right,

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<v Speaker 3>I mentioned open architecture before. That's a really big tenant

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<v Speaker 3>of how we operate as a business, and I think

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<v Speaker 3>it plays a big role as you start to think

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<v Speaker 3>about the implications of applying AI in production, right as

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<v Speaker 3>you start to get into those questions of how do

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<v Speaker 3>you know how do you monitor in an ongoing basis?

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<v Speaker 3>As these technologies mature.

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<v Speaker 2>Andy, you know what's interesting is the conversation and narrative

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<v Speaker 2>has evolved over the year and everybody getting so excited

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<v Speaker 2>about AI. You know, I laughed, but it truly was.

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<v Speaker 2>On the earnings call, we would just search for AI

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<v Speaker 2>because every CEO is dropping it in to their press

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<v Speaker 2>releases or somehow bringing it up for a while. Having

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<v Speaker 2>said that, help me understand practically whether it's supply chains

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<v Speaker 2>or cybersecurity or autonomous systems. Give me a for instance

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<v Speaker 2>of what you guys do using advanced AI generative AI

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<v Speaker 2>to help a company.

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<v Speaker 3>Absolutely, so, a couple of really specific things that we do.

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<v Speaker 3>One is we have a very mature portfolio and computer vision. Right,

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<v Speaker 3>so it's an area that I think for the technology

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<v Speaker 3>industry has been somewhat out of reach for a long

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<v Speaker 3>time because you needed the compute. We have a solution

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<v Speaker 3>called arcis. Right. We're partnered with L three Harris in

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<v Speaker 3>supporting their autonomous surface vessel fleet, so we do the

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<v Speaker 3>computer vision at the edge on those vessels to help

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<v Speaker 3>with vessel identification, weapons, etc. Right. Associated with deployments and

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<v Speaker 3>missions where you're working in really disconnected and difficult to

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<v Speaker 3>process environments, we provide CV there. Over on the supply

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<v Speaker 3>chain side, a really good example of some of our

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<v Speaker 3>capabilities are associated with what we do from predictive analytics.

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<v Speaker 3>We have a solution that we call Dominate that's very

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<v Speaker 3>focused on geopolitical and macroeconomic forecasting.

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<v Speaker 1>Right.

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<v Speaker 3>That's applied in an environment today, Right, incredibly relevant as

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<v Speaker 3>you look at the global landscape and your suppliers who

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<v Speaker 3>are working through very difficult capital deployment decisions associated with

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<v Speaker 3>still having to deliver end product to a customer and

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<v Speaker 3>an environment where you can no longer rely on the

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<v Speaker 3>same turnaround times associated with the assembly process.

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<v Speaker 2>What's interesting is I hear you talk and I'm thinking,

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<v Speaker 2>were you laughing at everybody in January when they're like,

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<v Speaker 2>oh my god, AI. I mean, we know AI has

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<v Speaker 2>been around for decades, but in terms of this more

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<v Speaker 2>advanced level, it sounds like, I mean, how long have

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<v Speaker 2>you guys been working on that? Although it does sound

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<v Speaker 2>like the processing power, right, has been a newer thing

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<v Speaker 2>to kind of take it to another level. So I'm

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<v Speaker 2>just curious connect the dots for me on that if

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<v Speaker 2>you would.

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<v Speaker 3>Yeah, And the answer is no, by the way, in

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<v Speaker 3>terms of whether I was laughing and everyone, right, I

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<v Speaker 3>think this year has been as a technology it's it's

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<v Speaker 3>a liberating year because I've talked about previously, you know,

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<v Speaker 3>this idea that I think AI is the new literacy, right.

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<v Speaker 3>You know, previously literacy for a long time was held

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<v Speaker 3>at a high priest and priestess level. It was inaccessible

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<v Speaker 3>to the masses. And what changed, right is the idea

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<v Speaker 3>of literacy empowers and liberates people. I think what's happened

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<v Speaker 3>this year is the exact same thing is happening with AI.

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<v Speaker 2>Right.

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<v Speaker 3>We've democratized the ability to interact with these advanced models

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<v Speaker 3>in a way that it didn't exist right a little

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<v Speaker 3>over twelve months ago. And you know, whether you're talking

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<v Speaker 3>about empowering creativity, right. An example of you know how

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<v Speaker 3>even I use gender tove AI and tools like that

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<v Speaker 3>is I, you know, I play with my kids, and

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<v Speaker 3>I asked them, you know, who's the main character and

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<v Speaker 3>what's our bedtime story going to be? And we you know,

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<v Speaker 3>you work with technology to change the way that people

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<v Speaker 3>can think about being creative. And I think that for

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<v Speaker 3>me is you know, it's why I love what I do, right,

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<v Speaker 3>And I think that what we're going to see on

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<v Speaker 3>a go forward basis is that because the level of

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<v Speaker 3>understanding of what is just what is possible associated with

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<v Speaker 3>kind of technology is now becoming more mainstream, we're going

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<v Speaker 3>to see the applications of it become widely adopted because

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<v Speaker 3>it shouldn't be limited to those who can speak the

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<v Speaker 3>technical language, right, it's humanity that's going to decide where

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<v Speaker 3>this goes.

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<v Speaker 1>And Mandy, we only have about thirty seconds before a break,

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<v Speaker 1>but quickly when you look at Big Berry eye, is

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<v Speaker 1>the growth prospect within the private or public sector? Like,

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<v Speaker 1>what is more attractive and where do you see that

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<v Speaker 1>growth for the company?

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<v Speaker 3>The answer is both right, And I would say that

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<v Speaker 3>because what has changed, particularly over the past two years,

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<v Speaker 3>as we've seen massive disruption in the global supply chain

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<v Speaker 3>and we've seen a geopolitical climate, right, that looks like

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<v Speaker 3>we could be in a new face of a conflict

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<v Speaker 3>in the coming years. Means that both sides of my

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<v Speaker 3>business are very busy because one needs the other right

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<v Speaker 3>in order to look into the future and be successful.

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<v Speaker 2>Talking with Mandy Long, CEO and board member at Big

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<v Speaker 2>Bear AI, still with us on Zoom in Chicago. Mandy,

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<v Speaker 2>you were talking about just before we went and did

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<v Speaker 2>some news about the importance of both the public and

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<v Speaker 2>private worlds in terms of your business going forward. Talk

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<v Speaker 2>to us a little bit more about that, and I

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<v Speaker 2>know you also made a recent acquisition. Tell us about

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<v Speaker 2>that and how that kind of feeds into your business

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<v Speaker 2>and fits into the business growth.

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<v Speaker 3>Absolutely, and I think the best way to break down

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<v Speaker 3>the importance of the relationship between the public and private

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<v Speaker 3>sector side of what we do is that there's an

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<v Speaker 3>incredible amount of collaboration that happens between both sides today,

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<v Speaker 3>and I think Big Bear in particular sits at an

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<v Speaker 3>intersection point between the two of those. Right in the

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<v Speaker 3>private sector side, right, we support with a lot of

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<v Speaker 3>the technology we have in not only in the autonomous

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<v Speaker 3>system side of our business, but also supply chains a

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<v Speaker 3>lot of capabilities that then get delivered right into the

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<v Speaker 3>federal government through those providers in addition to the work

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<v Speaker 3>that we do in for example, you know healthcare, right,

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<v Speaker 3>I spent fifteen years in healthcare, I was early days

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<v Speaker 3>in machine learning and vision AI.

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<v Speaker 1>There we do.

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<v Speaker 3>A lot of work with hospitals and health systems supporting

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<v Speaker 3>patient flow optimization. Right, So if you have a patient

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<v Speaker 3>that presents an eed, how do you make sure that

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<v Speaker 3>you get them to the right place at the right time.

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<v Speaker 3>Those patterns right in the ability to apply advanced technology

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<v Speaker 3>to that means that both sides of our business right

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<v Speaker 3>are growing right and relevant because we're solving problems that

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<v Speaker 3>cross the chasm of both sides. And when we look

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<v Speaker 3>forward to where we're headed, the anticipated acquisition that we

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<v Speaker 3>announced recently with Pangam bolsters our vision AI portfolio because

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<v Speaker 3>you heard me talk you know a lot about arcists

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<v Speaker 3>right in the work that we do in horizontal imagery

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<v Speaker 3>right in satellite. Pangaum has a remarkable portfolio that does

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<v Speaker 3>advance biometrics right facial you know, IRIS based work, and

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<v Speaker 3>it provides a really comprehensive solution that we can bring

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<v Speaker 3>to our customers.

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<v Speaker 1>And Mannie kind of balancing though the utilization of technology

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<v Speaker 1>AI streamlining things helping, you know, working in healthcare and

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<v Speaker 1>better treat people. But on the flip side, buying a

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<v Speaker 1>facial recognition company, how does that play into some of

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<v Speaker 1>the security issues and getting customers and consumers kind of

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<v Speaker 1>on board with that. Just given as you mentioned, biometrics

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<v Speaker 1>is something that's very hotly.

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<v Speaker 3>Debated, it very much is right, and I think it

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<v Speaker 3>was an important strategic decision right and it was not

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<v Speaker 3>made lightly Right At Big Bear, we play a very

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<v Speaker 3>big role and we use our voice very openly as

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<v Speaker 3>it relates to talking about the safety and security of

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<v Speaker 3>AI technology. We're very active right in the responsible innovation category,

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<v Speaker 3>the input associated with how to do regulation at scale,

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<v Speaker 3>And so when we think about these of biometrics, I

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<v Speaker 3>think one of the things that's really important to keep

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<v Speaker 3>in mind, right is that in many ways as a society,

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<v Speaker 3>we've we've crossed over a lot of the chasm associated

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<v Speaker 3>with putting information out there because of the widespread use

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<v Speaker 3>right and multi year at scale use of social media.

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<v Speaker 3>Now from a kind of where we sit on that

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<v Speaker 3>spectrum and the role that we play right, most of

0:12:25.559 --> 0:12:30.199
<v Speaker 3>the capabilities that when we think about our vision portfolio

0:12:30.240 --> 0:12:33.720
<v Speaker 3>today where we're very focused on is not in making

0:12:33.760 --> 0:12:37.000
<v Speaker 3>autonomous decisions, right, It's in helping to distill and provide

0:12:37.400 --> 0:12:39.040
<v Speaker 3>decision support for the ultimate cost.

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<v Speaker 2>Believe, so you'd be working side by side with a

0:12:42.160 --> 0:12:44.599
<v Speaker 2>human might come up, oh in terms of one of

0:12:44.640 --> 0:12:47.360
<v Speaker 2>your systems saying hey, here's what we've come up with,

0:12:47.440 --> 0:12:48.880
<v Speaker 2>but you need to look at it and kind of

0:12:48.880 --> 0:12:51.680
<v Speaker 2>make some kind of decisions maybe off of it. Correct,

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<v Speaker 2>because I think we're very human in the loop, because

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<v Speaker 2>I think we get we get worried. You know, our

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<v Speaker 2>David Weston we talked with, who had talked with Henry Kissinger,

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<v Speaker 2>very concerned about AI in war time or in war specifically.

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<v Speaker 2>And I think about the role that you know, you

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<v Speaker 2>guys are going to be. You know that you already

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<v Speaker 2>do work with the government. I mean, what are some

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<v Speaker 2>of the oversights that we need to have though in

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<v Speaker 2>place to make sure that there isn't some kind of

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<v Speaker 2>runaway technology. And I'm not trying to be silly and

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<v Speaker 2>sci fi, but these things could happen.

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<v Speaker 3>It's not an unfair question. Yeah, And I think it's

0:13:26.760 --> 0:13:29.000
<v Speaker 3>you saw in the executive order that came out. You know,

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<v Speaker 3>the top item is safety and Security of AI technology,

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<v Speaker 3>and that is not for no reason. One of the

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<v Speaker 3>things that I think we have to keep in mind

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<v Speaker 3>as a society as well, is that we have already

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<v Speaker 3>passed through the gates of a human being able to

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<v Speaker 3>individually manage and provide oversight of this kind of technology

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<v Speaker 3>at scale. We're already an augmented species, right. You know

0:13:56.920 --> 0:13:58.960
<v Speaker 3>you have I'm sure a phone right on you at

0:13:58.960 --> 0:14:05.040
<v Speaker 3>all times, or a computer at home. Leveraging technology to

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<v Speaker 3>help keep those guardrails in place is going to be

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<v Speaker 3>what's important here, because the traditional processes in paperwork is

0:14:12.160 --> 0:14:13.000
<v Speaker 3>not going to get us there.

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<v Speaker 1>Mandy. One of the things that played out with Opening

0:14:16.440 --> 0:14:18.640
<v Speaker 1>Eye going too fast, too soon. I think back to

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<v Speaker 1>you know, Facebook, with Cambridge Atalytica, there is this the

0:14:22.120 --> 0:14:25.360
<v Speaker 1>government was not kind of in the know and regulating

0:14:25.400 --> 0:14:27.960
<v Speaker 1>these things, and technology companies were able to run rampant.

0:14:28.080 --> 0:14:30.480
<v Speaker 1>How do you balance that because obviously that seemed to

0:14:30.520 --> 0:14:32.320
<v Speaker 1>be playing out at Opening Eye with Sam Altman.

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<v Speaker 3>So the rate and pace of innovation today has no

0:14:36.080 --> 0:14:40.240
<v Speaker 3>historical precedent. So I think even looking at those examples, right,

0:14:40.280 --> 0:14:43.320
<v Speaker 3>it's different. Now, look at what has happened with Chat

0:14:43.400 --> 0:14:46.320
<v Speaker 3>GPT in terms of adoption over the last year right,

0:14:46.600 --> 0:14:50.880
<v Speaker 3>there's nothing like it. So as you think about regulation

0:14:51.000 --> 0:14:53.160
<v Speaker 3>and oversight, you know, I go back to the same

0:14:54.080 --> 0:14:55.920
<v Speaker 3>core issue, which is that I don't think we're going

0:14:55.960 --> 0:14:59.240
<v Speaker 3>to get there without tech regulating tech, and that tech

0:14:59.280 --> 0:15:01.960
<v Speaker 3>needs to be architecture right, and it needs to include

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<v Speaker 3>the open source and it needs to evolve the way

0:15:04.040 --> 0:15:07.040
<v Speaker 3>that these models are going to evolve, or we can

0:15:07.040 --> 0:15:07.640
<v Speaker 3>get in trouble.

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<v Speaker 2>But aren't you worried a little bit about open source

0:15:09.640 --> 0:15:10.760
<v Speaker 2>getting into the wrong hands?

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<v Speaker 3>There is a philosophical discussion to have around the role

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<v Speaker 3>of open source versus closed source and the relationship between

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<v Speaker 3>the two of them. There is power in the open

0:15:22.640 --> 0:15:27.200
<v Speaker 3>source and the community level of effort associated with the

0:15:27.240 --> 0:15:30.440
<v Speaker 3>oversight of that provides a scale that does not happen

0:15:30.600 --> 0:15:32.640
<v Speaker 3>when you have a closed source system with a tight

0:15:32.760 --> 0:15:35.920
<v Speaker 3>R and D budget. I'm a promoter of the open source.

0:15:35.960 --> 0:15:37.960
<v Speaker 3>I think that we're finally getting to the place where

0:15:38.600 --> 0:15:41.600
<v Speaker 3>it's going to become a really relevant part of how

0:15:41.600 --> 0:15:44.400
<v Speaker 3>we operate as a society because of this pace of innovation.

0:15:44.960 --> 0:15:47.359
<v Speaker 3>But it doesn't come without the need to have guardrails.

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<v Speaker 2>Well, listen, this was a really cool conversation and I

0:15:49.960 --> 0:15:52.720
<v Speaker 2>hope you'll come back because guessing in twenty twenty four

0:15:52.760 --> 0:15:56.640
<v Speaker 2>will still be talking about generative AI AI and all

0:15:56.680 --> 0:15:59.240
<v Speaker 2>that it can do, because, as you said, we're really

0:15:59.320 --> 0:16:01.920
<v Speaker 2>kind of early on in this whole process. Thank you

0:16:01.960 --> 0:16:04.160
<v Speaker 2>so much. Have a great week in great holiday season.

0:16:04.200 --> 0:16:07.120
<v Speaker 2>Mandy Long, CEO and board member at Big Bear AI

0:16:07.240 --> 0:16:09.520
<v Speaker 2>joining us on Zoom in Chicago. We covered a lot,

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<v Speaker 2>but I have like a million more questions.

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<v Speaker 1>I know, I wish we had two more blocks to

0:16:12.640 --> 0:16:14.080
<v Speaker 1>kind of really dig into other things.

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<v Speaker 2>We'll come back. We'll have her back, all right, folks,

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<v Speaker 2>you are listening and watching Bloomberg Business Week right here

0:16:18.640 --> 0:16:19.520
<v Speaker 2>on Bloomberg Radio.