Speaker 1: Bloomberg Audio Studios, podcasts, radio news in.
Speaker 2: Viniar and Cisco announcing plans this week to extend their partnership,
Speaker 2: creating their most advanced AI architecture package that will provide
Speaker 2: secure enterprise AI networking. I'm very place to say the
Speaker 2: Cisco Chief Product Officer and Executive vice president g Two
Speaker 2: Pateau joined us now for more, Gezo, It's good to
Speaker 2: see you, sir.
Speaker 3: It's great to see you.
Speaker 2: Thank you for having me, Thank you for being here.
Speaker 2: I wanted to do this for a while with you,
Speaker 2: we all have. Let's just take a giant step back
Speaker 2: before we get into this partnership. You know what I
Speaker 2: worry about. I worry that AI will do to services
Speaker 2: what manufacturing was done to by globalization. What is the
Speaker 2: risk of that happening over the next several decades.
Speaker 4: Look at any replatforming that happens. You'll always have some
Speaker 4: level of displacement of jobs, and we need to make
Speaker 4: sure that we make it as painless for society to
Speaker 4: make that transition happen. But I worry less about AI
Speaker 4: taking my job. I worry more about someone who uses
Speaker 4: AI really well taking my job.
Speaker 3: So if you take a step back.
Speaker 4: It's actually really exciting to see what the possibilities are
Speaker 4: with AI because what people, even despite all the hype,
Speaker 4: what people grossly underestimate is the original insights that AI
Speaker 4: is going to be able to go derive that don't
Speaker 4: exist in the human corpus of knowledge, that allow us
Speaker 4: to solve problems that we have not been able to
Speaker 4: solve until now. And so, you know, whether it be
Speaker 4: in healthcare or financial services, or transportation or whatever industry
Speaker 4: you pick, you will actually have a reimagination of the
Speaker 4: ways in which we can solve problems that have not
Speaker 4: existed up until now. And that's exciting, frankly, because you
Speaker 4: have this, you know, population of eight billion people that
Speaker 4: will feel like it's got the throughput capacity of eighty billion.
Speaker 2: Are we seeing that happen right now? Is that a
Speaker 2: dream for the future or something that's being realized in
Speaker 2: this very moment.
Speaker 3: You're going to start seeing it happen.
Speaker 4: In twenty twenty five, for example, there will be you know,
Speaker 4: a meaningful amount of code that will actually start getting
Speaker 4: autonomously written, and so you'll actually start to see so
Speaker 4: many more The capacity of engineers will actually ten x
Speaker 4: during the course of twenty twenty five.
Speaker 2: It's exciting to see this, as you know, is the
Speaker 2: societal issue that i'd be slightly concerned about. So there
Speaker 2: are a bunch of graduates who are graduating over the
Speaker 2: next couple of years or so, and they went to
Speaker 2: learn to code because they would tell this is what
Speaker 2: you need to go and learn to do. And they're
Speaker 2: coming out into a workforce where maybe they feel like
Speaker 2: they're no longer needed. What's the advice you'd give to
Speaker 2: them as they graduate.
Speaker 4: Here's the thing that I feel like people you might
Speaker 4: overestimate the capabilities on that front, because AI is still
Speaker 4: not going to have the human instinct and the judgment
Speaker 4: that you're going to need to have. You're still going
Speaker 4: to need to do oversight. There's a human in the loop.
Speaker 4: But now that developer is going to have a companion
Speaker 4: that can actually do the stuff that they didn't really
Speaker 4: care to do or they weren't as good as at doing.
Speaker 4: So this is a net positive in my mind, and
Speaker 4: you're going to see a lot of progress in society
Speaker 4: because of it, rather than a regression that happens.
Speaker 1: Not to build on negativity, because I actually am a
Speaker 1: very big believer on the positivity and I'm excited for it.
Speaker 1: But there is this question of who's going to lose
Speaker 1: their jobs in the meantime, and John alluded to this,
Speaker 1: this idea that it's more of a white collar issue
Speaker 1: than a blue collar issue. And I'm thinking of things
Speaker 1: that we've heard about, like at banks where there have
Speaker 1: been fat fingers that cause transfers or whatever else, and
Speaker 1: that some of those efforts are being shifted to AI.
Speaker 1: How significant do you think that transition is going to be.
Speaker 4: You will always have some degree of jobs that will
Speaker 4: get displaced, and then there'll be new jobs that actually
Speaker 4: get created. And the thing that we have to keep
Speaker 4: in mind is it's there's a lot of jobs that
Speaker 4: right now people don't have enough labor to get done
Speaker 4: that we are either we just don't have the resources
Speaker 4: to do that actually don't.
Speaker 3: Happen right now.
Speaker 4: And so what AI will allow us to do is
Speaker 4: not just go do things that humans don't do as well,
Speaker 4: not just do things that replace humans, but actually do
Speaker 4: things that humans don't have the time to get done.
Speaker 1: Which industries do you think are being the most aggressive
Speaker 1: about adapting to different AI tools and bringing them into
Speaker 1: their entry.
Speaker 3: I think it's loss subord you're seeing it right now.
Speaker 4: In fact, i'd say, you know, two years ago, when
Speaker 4: chat GPT came out, almost every company in every industry,
Speaker 4: I'm noticing what's ourr AI strategy going to look like.
Speaker 3: And we've now had a couple of years to go
Speaker 3: bake that.
Speaker 4: And in twenty twenty five you're going to see this
Speaker 4: really exciting move from just chat pots to agents where
Speaker 4: you'll actually have workflows get automated in every industry, in
Speaker 4: every sector, in every segment of the market, and every geography.
Speaker 3: So I feel like, you know.
Speaker 4: There's only going to be two kinds of companies in
Speaker 4: the world, those that are going to be really dextrous
Speaker 4: for the use of AI and others that are going
Speaker 4: to really struggle for elevance.
Speaker 2: Before we talk about facilitating that for corporate America, G two,
Speaker 2: can we talk about how things are changing inside Cisco?
Speaker 2: What's different about how Cisco's operating with these advancements that
Speaker 2: you're talking about.
Speaker 4: We are lucky in the sense that we've actually got
Speaker 4: a front row seat on what's happening, and you know,
Speaker 4: everything from the way in which we're building out infrastructure
Speaker 4: to the way in which we are getting our security
Speaker 4: and safety parameters in the right way, and then making
Speaker 4: sure that the workflows get automated. So you know, how
Speaker 4: are we using AI and engineering? How are we using
Speaker 4: AI our contact center so that when customers call because
Speaker 4: they've got a problem, we're using AI to make sure
Speaker 4: that we can help them solve the problems faster. What
Speaker 4: are we doing in legal? What are we doing in marketing?
Speaker 4: What are we doing in sales? Each one of these
Speaker 4: areas is getting rethought and reimagined. It's actually exciting to see.
Speaker 2: The whole world's got to do this. Yes, every company's
Speaker 2: got to do the same thing.
Speaker 3: Every company every introduces.
Speaker 2: This partnership with in Vidio, talks to us about that
Speaker 2: and what's going to change over the next several years
Speaker 2: with that partnership in mind.
Speaker 3: So we're excited.
Speaker 4: Jensen, the CEO of n Vidia, put it best. He said,
Speaker 4: Cisco and Nvideo are putting together the blueprint for securing AI,
Speaker 4: and John, I go talk to a lot of customers
Speaker 4: all the time, and when you go, when you go,
Speaker 4: ask customers how enthusiastic they are about AI. Virtually every
Speaker 4: CEO we had a study we recently did ninety seven
Speaker 4: percent of the CEO said they were excited about AI,
Speaker 4: but only one point seven percent felt prepared, right, and
Speaker 4: so there's this kind of dissonance between the preparedness and
Speaker 4: the level of enthusiasm that's there. And then you ask
Speaker 4: in the next level question, why do you not feel prepared?
Speaker 3: There's two reasons that come up.
Speaker 4: The first one is they don't feel like they've got
Speaker 4: the right infrastructure in place to make sure that they'll
Speaker 4: be able to harness the full potential of AI. And
Speaker 4: the second one is safety and security actually holds them
Speaker 4: back because they feel like it also is going to
Speaker 4: have a negative effect on adoption because if you don't
Speaker 4: trust the system, you're not going to use it right,
Speaker 4: And so that's in it. Those are two areas where Cisco,
Speaker 4: you know, helps customers out and what we've done with
Speaker 4: and videos, we just announced a partnership for this thing
Speaker 4: called the Cisco the Secure AI Factory.
Speaker 3: Now, what is an AI factory.
Speaker 4: An AI factory essentially is a data center that's meticulously.
Speaker 3: Built for AI workloads.
Speaker 4: And what it allows you to do is make sure
Speaker 4: that you can you can you can create these data
Speaker 4: centers in the enterprise that can allow organizations to fully
Speaker 4: harness the potential of AI, and so we are jointly
Speaker 4: partnering over there wibr networking, our security, their technologies looks.
Speaker 4: Cisco is one of the greatest networking companies in the world,
Speaker 4: and Video is a pioneer on the chips and actually
Speaker 4: create it to some degree. The movement in AI and
Speaker 4: the combination of the two companies together, and I think
Speaker 4: you're going to see more and more of this where
Speaker 4: companies are going to partner with each other in this
Speaker 4: ecosystem to really go serve needs of customers and work backwards,
Speaker 4: even if there might be a slight competitive elopment.
Speaker 1: This is fascinating to me because what it signifies is
Speaker 1: there's a growing number of companies that don't want to
Speaker 1: rely on the hyperscalers, that don't want to rely on
Speaker 1: the cloud systems to provide the artificial intelligence for their businesses.
Speaker 1: And it raises a question about the model that everyone
Speaker 1: has bought into in the market, which is that they
Speaker 1: will be the big beneficiaries. How much is that changing
Speaker 1: with companies not wanting to necessarily develop their artificial intelligence
Speaker 1: in the cloud for security reasons and want to have
Speaker 1: it in secure locations that keeps their data encapsulated.
Speaker 3: I think you're going to have both.
Speaker 4: I think there's going to be probably the fastest growth
Speaker 4: that hyperscalers experience that they've ever experienced with AI, and
Speaker 4: there will be the fastest growth that enterprises have because
Speaker 4: there will be some data centers that they'll want to
Speaker 4: repatriate back within the enterprise so that they can make
Speaker 4: sure that especially in areas like Inferunce, you'll actually see
Speaker 4: a lot more of that.
Speaker 3: There's two big areas.
Speaker 4: There's training infrastructure that's needed to train the models, and
Speaker 4: then there's inferencing, which is what happens when you use
Speaker 4: the models. And on the inferencing side, you're seeing a
Speaker 4: fair amount of repatriation of data centers back in enterprise.
Speaker 4: And I think you're going to see a little bit
Speaker 4: of both. And we want to make sure that whether
Speaker 4: you're a hyperscaler, you're a service provider, you're an enterprise,
Speaker 4: Cisco wants to serve each one of them in a
Speaker 4: way that they can actually have infrastructure be plug and
Speaker 4: play and it's massively simplified.
Speaker 3: It's still too complicated.
Speaker 1: What's the role of government in this? There's tremendous competition
Speaker 1: around the world. Obviously, I'm thinking of Washington and Beijing.
Speaker 3: Do you like what you're hearing out of the administration.
Speaker 4: I'm actually very optimistic about the kind of things that
Speaker 4: you're seeing across the board with the enthusiasm on AI.
Speaker 4: If we weren't talking about AI, I would be concerned.
Speaker 4: But right now the governments are talking about it. They're
Speaker 4: talking about how automation happens within the government, how automation
Speaker 4: is happening in the private sector, how are they're going
Speaker 4: to make sure that they can accelerate the innovation on
Speaker 4: those areas.
Speaker 3: So I think it's not positive.
Speaker 2: Are we going to be replaced? So we care about?
Speaker 4: No, John, You'll still be here in five years from now.
Speaker 4: I'm still going to come and talk to you after
Speaker 4: the show, and it's not going to be an AI humanoid.
Speaker 3: It's going to be John.
Speaker 2: That's all I wanted to know. That's all I care about.
Speaker 1: How do you know I haven't already been replaced?
Speaker 2: That would be incredibly.
Speaker 3: Sorry.
Speaker 2: Kerry had a guest recently. It was remote and I
Speaker 2: worried it might be AI. Just didn't have a clue.
Speaker 2: You never know, you never know, you never know.
Speaker 3: G you're an Optimus. Someday this is going to be
Speaker 3: a fun world.
Speaker 2: Slightly converting me. I'm looking forward to being on this
Speaker 2: journey with you, GT one of the best. Appreciate it,
Speaker 2: thanks for being about Thank you, G two. But it's
Speaker 2: now there. The Cisco Chief Product Officer and executive vice president,