﻿WEBVTT


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This morning I watched an


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old Twilight Zone episode.


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As one does. As one does.


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It was actually the story about how,


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CEO W.E. Whipple


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decided to introduce computers
into his factories and how excited he is


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about how many people and costs
his machines can eliminate.


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Until those computers end up
eliminating his job too.


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And so it's actually a little chilling.


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But also interesting for our purposes
today because


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it aired in May of 1964.


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61 years ago.


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And it actually turned out
to be completely wrong.


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The digital revolution of the past
75 years has changed


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and eliminated a bunch of jobs,
but it's also created


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a lot more new ones.


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But AI is going to change how we work.


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It will invent jobs that don't yet exist.


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And the transition
has the potential to be bumpy.


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I think many of you may have seen
the New York Times piece yesterday about


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how Amazon thinks that it can


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use AI and robots to eliminate


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half a million jobs by 2030.


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That's a really big number.


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So, over the next 50 minutes,
we're going to talk through


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how AI is changing work and what skills


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we're going to all need


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to live in that world
and which ones will be obsolete.


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So my goal is for us to have
a conversation for the next 35 minutes


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and then leave about 15 minutes
for questions, because this is a


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wonderfully big and


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interactive audience.


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I can just tell.


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So to start, I just want to let
all of our panelists introduce themselves.


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And then after that, I'm going to ask
each of them


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to tell us a little bit
about what they're seeing.


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Go ahead, Anthony.


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Hi. Good afternoon.


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It's like a warm room
that everyone's standing.


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And so feel free to move around.


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Anthony Abbatiello, a partner at PwC,
and I'm our future of work leader.


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So everything we do around the
the work, the workforce, the work.


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If you think about everything
that's happening in the age of AI.


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Really,


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and what's happening with humans
and what the future of the workforce


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will look like.


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I've spent 30 years of my career
all in consulting


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around talent, leadership
and the HR function.


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So it's a personal passion of mine.


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I've lived through
so many of these industrial revolutions.


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I am both a student, a researcher
and a practitioner in the space.


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I think the battery's off.


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Okay.


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Diya Jolly, I am the Chief
Product and Technology officer at Xero.


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For those of you
who don't know, Xero provides


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small businesses with finance
and accounting and cash-flow software,


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so that they can actually


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do what it takes to run their business.


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We have been heavily investing in AI
and I'll talk a little bit about that


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to actually help our customers
really be able to make their work


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more enjoyable and focus on where
they need to do to grow their businesses.


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Prior to Xero,
I was the Chief Product Officer at Okta,


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and before that I was at YouTube,


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running YouTube monetization.


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Hi, everybody.


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My name is Elena Sunshine.


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I'm thrilled to be joining this panel


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and being among such esteemed colleagues
here.


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I am a Senior
Director of Product Management at Oracle


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and I focus specifically on our OCI,
that's our cloud service


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for building our generative AI platform


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that includes our agents offerings
and also our AI safety offerings.


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I work a lot with large enterprises


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who are approaching their businesses
and looking at how to use


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AI to solve their problems
and our customers really care about cost,


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security,
privacy, compliance, reliability.


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So that's kind of the key focuses
that I have in my day-to-day life.


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And I also work a lot with the entire
stack of Oracle applications across


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HR applications,


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finance, supply-chain management,
ERP, the gamut


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to integrate AI into those technology
stacks as well.


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I'm thrilled to be here. Thank you.


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Hey, everyone.


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Glad to be here. Yes, it is warm.


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My name is Aparna.


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My last name is Chennapragada,
which I think in solidarity


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I'm going to say in my language,


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it means happiness because you're sunshine
and Jolly, I'm making it up.


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I was like, oh, my God,
I have to make something up now.


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I'm very happy Italian. Yeah.


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That's what, my interest means first.


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I am the Chief Product Officer
for AI at work at Microsoft.


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So what I look at in our team's work on is


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how does AI change and amplify


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how we work, how we create,
how we collaborate and how we live.


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So this is very topical.


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I have some thoughts that I'd love
to kind of share and get some questions


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and so on.


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I've been working in AI space
for the last two decades.


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I'd say I worked on Google
Search, built a couple of new


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products,
Google Assistant, as well as, Google Lens,


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which was more of an AI
product search, what you see.


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And all through, I think one passion
and one steel thread for me is


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how do we actually build
on new, deep technological insights,


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but build them in a very intuitive
way, in a positive some way?


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Aparna,


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two decades in AI — that makes you


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one of a very small group.


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Can you talk a little bit
about what you're seeing?


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I mean, there seems to be a conversation
going on, right


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as we're speaking about


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is AI actually helping productivity


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or is it hurting productivity? And


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what are sort of some of the best
practices that are starting to develop?


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I'll start, I'll try to condense it
into a few thoughts.


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Obviously, this is a topic
that lives rent free in my brain.


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So if folks have questions about it,
we should talk later.


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I'd say, look, I've been in the forefront
of internet shift.


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I was at Akamai, building
the first content delivery system


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and then the mobile and, like, web shift,
obviously.


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And now. And folks often say, well,
is this different?


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This time is different.
That phrase keeps coming up.


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And at first I was like, not really.


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Like every technology
shift has the first phase


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where there's an exuberance,
there's an overbuilding.


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Optical networking.


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Those of you
who remember 2000s — significant


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amount of money
and like build out in infrastructure.


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The use cases came much later and so on.


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Right. But I will tell you, number one, this time
is different in a very particular way.


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The technology diffusion usually.


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And Anthony,


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you've seen it too which is it
used to take decades from the first time.


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I don't know, this giant brick of a mobile
phone was in mid 90s to like,


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I don't know my uncle in like


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small town in India getting a phone
that's like a good 20 years.


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Now, it's months.


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In fact, as we speak, I'm sure there's
a model being dropped somewhere, right?


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So it is one of those motion-sickness
inducing


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real compression of technology shift
that's happening.


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The corollary in what it's relevant
to what we are talking about here


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is that the adoption, the user adoption of


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this is significantly higher
in a small setting.


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Now that doesn't mean it's
evenly distributed.


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That's why you see the paradoxical,
oh, these pilots don't work.


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And yet everybody has shadow
usage in the enterprise.


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Why don't you go ahead, Anthony?


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I agree.


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I think what we're experiencing
right now is this movement,


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to the point of, talent


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now, on one hand, is divine.


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The talent and the younger talent that are


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AI natives that have grown
up around technology.


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They see this as it's just
table stakes.


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We have to have AI, we have to have
technology as part of this.


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Those that are in older generations.


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I'll put myself in that as a Gen Xer.


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Our generations
and the baby boomers have seen this as


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oh, it's robots
coming to kill us and take our jobs.


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It's the Twilight Zone example.


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And so, you know what?


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What's happening,
though, is because of the pace


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that we're seeing,
there is no ability to sit back


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and watch and see it destroy itself
because it's actually not.


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And it's proving itself every day.


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When I was, we


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produced a piece of research
back in January,


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if anyone was in the earlier session
with Dan Priest,


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we talked about that,
what was happening in January.


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We're looking at the future of work. Here
we are in November.


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I almost have to rip up
the entire piece of research,


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because so much,
we've learned so much more.


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And the thing that has remained constant
is that the human skill


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is still paramount to the technology
and what is changing in the environment.


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I mean,
my job is to only think about humans


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and what skills will be in the future.


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And nothing has proven
that jobs are being taken away.


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I loved, yesterday somebody said,
AI is not going to take your job,


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but talent, talent with
AI skills will take your job.


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That's the key piece that continues
to resonate with me and I try to impart


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that on so many organizations,
big and small, because


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the pace, it will continue to outpace
anything we've ever seen before.


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The models will continue to learn faster
and will create new things.


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And we have to remember that in all parts
of time, particularly like the


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New York Times article,
I can debate ad nauseum,


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but I think at all moments in time
when we've seen another revolution,


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it is only created new opportunity


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that has pushed society forward.


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And this one is one
that actually will perpetuate


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all levels of society,
not just the working,


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adult
or the worker in general.


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It's affecting now


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down to children, through education,
through to the experienced worker.


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Sorry. Go ahead.


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And what I was going to ask is that, like,
you spend a lot of time


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thinking about the small-business world
and I sometimes think that


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their, the way they think about


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AI has got to be a little bit different
than the way giant enterprises do.


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Maybe more efficient. Absolutely.


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And so I was going to bring in a different
perspective and disagree a little bit.


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For what we see,


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we sit in in the Bay area
or in tech corporations


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or in large corporations,
but most of the world doesn't sit there.


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A lot of the world is like
small businesses.


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So, one of the constant challenges
my marketing department has is


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how do you explain what agents are
and what it can do for you?


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Because they're like,
what are you talking about?


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So going back to your


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original question, here's
what we see. AI is new.


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It's like it's two years old


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or gen AI's, LLMs are two years
like old in mass.


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Right?


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And no, they cannot do everything
that people are saying that they can do.


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That's very true.


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However, to get adoption,


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you really, truly, for
the user has to give value.


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And there are two types of value.


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Value that fits into your workflow.
I'll give you an example.


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We remove 22 hours
of a small business's month of work


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with one of our features
that we call automated bank rec, right.


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It just basically does a large part
of your bookkeeping for you.


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And it was right in their workflow
and they adopted it.


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There are different types of things
you can do with AI


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and we're struggling with this
internally at Xero, which requires


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a complete rethink of your workflow
for AI to be effective.


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Right.


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We're exploring AI right now in


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how much can we give an actual
AI agent?


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How much of software can
we have an actual AI agent. Right.


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And we have an old tech stack, right.


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That actually requires the way
software engineers, their entire SDLC,


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their entire software
development lifecycle.


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And that is actually harder.


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So I think places you're having success
with AI


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today is where there's concrete value.


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It's in the workflow, right?


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And it actually makes your workflow
faster, better, and gives you time back


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and places
where either the use cases are stretched


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and not proven, or cases
where you have to change the workflow.


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But people are not changing the workflow,
but they're trying to slam it into


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an existing workflow is where I think
you see the pilots struggle a lot.


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Right.


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Go ahead, Elena.


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Well, I come from an enterprise context,
but I'm seeing a lot of the same things,


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but with a slightly different perspective.


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So I think two years ago,
the most common


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question that I got two years ago
are, what are the use cases for AI?


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And I can't tell you how many PowerPoints


00:13:35.856 --> 00:13:39.527
that we worked on
that had lists of use cases for AI.


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And that was kind of the deliverable
that all of our customers


00:13:42.571 --> 00:13:43.656
wanted to show to their board.


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Like, here are the AI use cases
that I'm going to implement.


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And we're going mostly in cost
-cutting kind of fashion.


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And I have seen a lot of transformation
of that over the past years,


00:13:55.292 --> 00:13:58.295
I think even within our own company,


00:13:58.504 --> 00:14:00.881
the place where I've seen


00:14:00.881 --> 00:14:04.927
AI really impact work
and actually really drive outcomes


00:14:04.927 --> 00:14:09.431
is by putting the tools into our employees
hands directly


00:14:09.765 --> 00:14:11.642
rather than,
I mean, I'm a product manager,


00:14:11.642 --> 00:14:14.645
so I want to build software
and deliver it to someone.


00:14:14.645 --> 00:14:19.775
But, I've really more shifted
my focus towards building platforms


00:14:20.067 --> 00:14:23.070
where customer or where our employees


00:14:23.529 --> 00:14:26.824
and users can actually build themselves.


00:14:26.949 --> 00:14:28.951
I think collectively we're all
still figuring out


00:14:28.951 --> 00:14:30.786
what these technologies can do.


00:14:30.786 --> 00:14:33.914
And I think when you put the tools,
powerful tools into employees'


00:14:33.914 --> 00:14:36.917
hands, they build creative
and surprising solutions,


00:14:37.501 --> 00:14:41.422
to their real problems,
their actual business problems,


00:14:41.422 --> 00:14:45.467
rather than what you might think would be
an AI problem on a PowerPoint slide.


00:14:45.676 --> 00:14:46.385
Go ahead, Aparna.


00:14:46.385 --> 00:14:50.431
I think it's interesting, actually,
this phase is very consistent across


00:14:50.431 --> 00:14:53.225
different enterprises,
even on consumer. Right.


00:14:53.225 --> 00:14:56.854
And I would argue it's not that different
from like, say, the previous shifts.


00:14:57.354 --> 00:14:59.106
It used to be any new technology.


00:14:59.106 --> 00:15:02.985
You'd have to just add X phase,
and then you have the


00:15:02.985 --> 00:15:06.280
X native like just add
AI here's the phase that we are seeing.


00:15:06.363 --> 00:15:10.326
Chat app here and chat app here and meeting
users where they are in their workflow.


00:15:10.659 --> 00:15:12.786
You get incremental productivity
improvements there.


00:15:12.786 --> 00:15:13.495



00:15:13.495 --> 00:15:17.249
But I would also urge us to think about
if especially the builders in this group,


00:15:17.917 --> 00:15:22.379
it's incremental productivity gains
with the just add AI phase.


00:15:23.088 --> 00:15:25.507
But now, the models are getting
significantly better.


00:15:25.507 --> 00:15:28.510
Now they can reason,
they can run for a longer time.


00:15:28.552 --> 00:15:32.014
So really rethinking entire workflows
while it's harder,


00:15:32.431 --> 00:15:35.976
I actually think that that has
a instead of X percent improvement.


00:15:35.976 --> 00:15:37.770
We are seeing X times.


00:15:37.770 --> 00:15:42.483
And I wanted to give like a real example
from this morning when I was in a meeting


00:15:42.483 --> 00:15:47.363
with a CIO of a company where they're
adopting some of the agents that we built.


00:15:47.363 --> 00:15:49.698
One of the agents
is called Researcher. Right.


00:15:49.698 --> 00:15:51.325
And the idea was to say, look,


00:15:51.325 --> 00:15:55.037
if you're a salesperson preparing
for a prospective customer meeting,


00:15:55.329 --> 00:15:58.582
today, you go through all of the world's
information, like, look up,


00:15:59.124 --> 00:16:02.461
search engines,
look up emails, look up meeting


00:16:02.461 --> 00:16:06.632
transcripts, and then you go and say,
how do I close it? What this agent does


00:16:06.632 --> 00:16:11.261
is it's not trying to save you time
and summarize your email or what have you.


00:16:11.470 --> 00:16:13.430
It scours the entire web.


00:16:13.430 --> 00:16:16.266
It scours all of your meeting transcripts,
all of the emails,


00:16:16.266 --> 00:16:19.353
and not only your memory,
but the institutional memory about this


00:16:19.353 --> 00:16:24.066
account and says, here's the best way
to close the deal and coach you on that.


00:16:25.192 --> 00:16:25.651
That's an


00:16:25.651 --> 00:16:28.821
example of, again, like, it's
not like an X percent.


00:16:28.862 --> 00:16:31.865
It's giving you
superpowers versus saving time.


00:16:31.949 --> 00:16:35.744
And if you're building something in AI,
I would say yes, of course, do


00:16:35.744 --> 00:16:40.791
the incremental stuff because then it's
you get quick ROI, but don't sleep on the


00:16:40.833 --> 00:16:44.920
kind of the rethinks. Like CRM,
CRM on steroids, almost.


00:16:45.170 --> 00:16:48.966
One of the questions I was,
I've been sort of pondering is that,


00:16:49.508 --> 00:16:55.264
like the technology
revolution of the 1980s and 1990s


00:16:55.264 --> 00:16:59.268
was largely an enterprise-led revolution


00:16:59.268 --> 00:17:03.772
that consumers then adopted subsequently.


00:17:04.148 --> 00:17:07.151
The technology revolution that started


00:17:07.651 --> 00:17:09.987
really in the 2000s with the


00:17:09.987 --> 00:17:13.323
iPod and the iPhone and


00:17:13.699 --> 00:17:17.161
the explosion of Google search
was really a consumer-led


00:17:18.704 --> 00:17:21.040
revolution that


00:17:21.040 --> 00:17:23.834
then oddly, enterprises followed.


00:17:25.586 --> 00:17:28.047
Which is this?


00:17:28.047 --> 00:17:31.050



00:17:31.717 --> 00:17:34.053



00:17:34.053 --> 00:17:37.931
Well, I mean, I think right now
this is the


00:17:38.432 --> 00:17:42.061
agent-led revolution
that is taking this


00:17:42.436 --> 00:17:45.439
and that's not to say that it's robotic,
but when I look at


00:17:45.606 --> 00:17:49.318
what is actually happening,
it is coming from both angles.


00:17:49.318 --> 00:17:52.029
You're seeing it from the N side.


00:17:52.029 --> 00:17:54.573
We're seeing it.
People are using ChatGPT.


00:17:54.573 --> 00:17:55.741
My father is


00:17:55.741 --> 00:17:59.495
retired and he's downloaded
ChatGPT and is using it, something like that.


00:17:59.495 --> 00:18:00.996
That's a win.


00:18:00.996 --> 00:18:03.916
And then, we see
kids are using it now.


00:18:03.916 --> 00:18:07.211
It's only the way in school
that it's accepted now,


00:18:08.045 --> 00:18:10.798
ways of studying
and learning and producing content.


00:18:10.798 --> 00:18:12.966
So they have to use their brain
in different ways


00:18:12.966 --> 00:18:15.385
more creatively versus rote memorization.


00:18:15.385 --> 00:18:17.846
So it could be from both angles.


00:18:17.846 --> 00:18:21.391
And then we're seeing enterprises,
companies that are creating this.


00:18:21.391 --> 00:18:23.018
And it's coming at all angles.


00:18:23.018 --> 00:18:26.480
But the common thread throughout
all of that is the agentic revolution.


00:18:26.480 --> 00:18:29.650
And to me,
I think that's the part that what's


00:18:29.650 --> 00:18:32.611
so interesting about this,
because of the way it's learning,


00:18:33.070 --> 00:18:36.073
what we're not seeing is task and process
automation,


00:18:36.073 --> 00:18:39.451
which is large part of what we saw
in the 80s, 90s and early 2000s.


00:18:39.701 --> 00:18:42.538
It was like, just take this process
and make it now happen


00:18:42.538 --> 00:18:45.749
through a client-server app
or a cloud-based app, SaaS.


00:18:45.999 --> 00:18:48.669
And we just changed the underlying
technology.


00:18:48.669 --> 00:18:52.339
Now, with the models
the way they are, it's learning faster


00:18:52.339 --> 00:18:53.674
and creating new ways of thinking.


00:18:53.674 --> 00:18:56.802
And actually performing the process.


00:18:57.094 --> 00:19:00.472
So now we're getting to
a whole different way


00:19:00.472 --> 00:19:03.934
of thinking about, not just automation,
but autonomy.


00:19:04.268 --> 00:19:09.189
So that's why I come back to — it's
a both and it's agent-led. Spicy takes.


00:19:10.440 --> 00:19:12.067
Go ahead, Elena, go ahead.


00:19:12.067 --> 00:19:13.527
Oh, sure.


00:19:13.527 --> 00:19:14.736
Well, I'll just take a stand.


00:19:14.736 --> 00:19:16.280
I think it's consumer led.


00:19:16.280 --> 00:19:20.492
I mean, when I,
when you see the adoption of ChatGPT


00:19:20.701 --> 00:19:22.202
and just like people in my life,


00:19:22.202 --> 00:19:25.205
like the example
you said that are using this every day.


00:19:26.290 --> 00:19:29.126
To me, as a manager of a team,


00:19:29.126 --> 00:19:33.755
I see my employees are using these tools.


00:19:33.755 --> 00:19:36.258
And it's like you mentioned before,
there's a lot of shadow


00:19:36.258 --> 00:19:39.011
usage within companies.


00:19:39.011 --> 00:19:42.848
And employees are demanding to have access


00:19:42.848 --> 00:19:46.351
to more powerful tools
so that they can do their job better.


00:19:46.977 --> 00:19:49.771
And I think that comes
from their personal experience,


00:19:49.771 --> 00:19:53.233
experiencing
usually ChatGPT at home in their personal lives.


00:19:53.233 --> 00:19:56.236
So that's my hard stand.


00:19:56.737 --> 00:19:59.740
Not so spicy anymore now,


00:19:59.907 --> 00:20:02.367
but I will say
I want to unpack that a little bit,


00:20:02.367 --> 00:20:04.620
because I do think
what's happening right now is,


00:20:05.579 --> 00:20:07.915
I mean, I saw this firsthand in search,


00:20:07.915 --> 00:20:12.336
in the mid 2000s and early 2000s
where the learning curve was.


00:20:12.336 --> 00:20:15.797
So, anybody who could type
anything could get an answer.


00:20:16.173 --> 00:20:18.926
Now the learning curve is like,
even for anybody


00:20:18.926 --> 00:20:22.095
who can speak to a human
can now use a product.


00:20:22.346 --> 00:20:24.640
So to me, it's obvious
then that like that,


00:20:24.640 --> 00:20:27.601
this whole thing
is going to be like individual led.


00:20:27.601 --> 00:20:31.146
So that's one.
The interesting complementary force


00:20:31.146 --> 00:20:35.359
that's happening that I see in my day
job in enterprise is that there is a lot


00:20:35.359 --> 00:20:38.362
of, like the cloud shift, for example,
a whole bunch of


00:20:39.780 --> 00:20:42.366
initial
I wouldn't say skepticism, but hesitation.


00:20:42.366 --> 00:20:46.954
ROI, all of those questions, there's a
lot more of a different posture top down,


00:20:48.038 --> 00:20:50.249
that every CIO, every


00:20:50.249 --> 00:20:52.834
executive is like,
how can we use AI?


00:20:52.834 --> 00:20:55.420
How can my employees use AI and so on.


00:20:55.420 --> 00:20:57.589
So it's actually a very interesting end.


00:20:57.589 --> 00:20:59.466
And I don't think
we've seen this kind of a thing.


00:20:59.466 --> 00:21:02.010
There's a bottom-up, zero learning curve.


00:21:02.010 --> 00:21:05.764
The whole world is like seeing what
how easy it is and how effective.


00:21:06.098 --> 00:21:08.141
And there's a top down thing.


00:21:08.141 --> 00:21:10.811
But they are not happening
at the same time,


00:21:10.811 --> 00:21:14.815
at least from what I see,
because the first wave of these models,


00:21:14.815 --> 00:21:18.652
I always say, the model is the product
in some of these cases.


00:21:18.986 --> 00:21:22.364
The first wave of the model,
if you think about it, is amazing


00:21:22.656 --> 00:21:25.867
at answering questions
because it's an X-token prediction.


00:21:25.867 --> 00:21:27.786
That was the first wave.


00:21:27.786 --> 00:21:29.538
That's why you have chat bots.


00:21:29.538 --> 00:21:33.750
The second wave starting
this year has been the reasoning models.


00:21:34.501 --> 00:21:38.588
For any of the agent stuff that Anthony
is talking about in process automation.


00:21:39.006 --> 00:21:42.009
You're not going to be okay with a
oh, sometimes it works,


00:21:42.217 --> 00:21:43.260
right, in the enterprise.


00:21:43.260 --> 00:21:45.637
So you do need the reasoning model unlock.


00:21:45.637 --> 00:21:50.350
And the third wave is going to be this
multimodal, autonomous, long-running thing.


00:21:50.767 --> 00:21:54.187
And once the models get better at that,
then we will see a lot more in


00:21:54.187 --> 00:21:55.814
the enterprise.


00:21:55.814 --> 00:21:58.984
Diya, does all this like jive with you
or is this like


00:21:59.192 --> 00:22:02.612
or is the world that you live in like
seeing this entirely differently?


00:22:02.779 --> 00:22:04.656
No, I think this does jive with me.


00:22:04.656 --> 00:22:08.452
I will start, it is definitely consumer-led
and that is that is I think we're


00:22:08.452 --> 00:22:09.077
very aligned.


00:22:09.077 --> 00:22:11.663
And I'll give you an example of why
I think this is consumer-led,


00:22:12.622 --> 00:22:13.999
a hilarious example.


00:22:13.999 --> 00:22:15.625
And this happened three days ago.


00:22:15.625 --> 00:22:19.212
My son is a teenager and I hear him
talking to a friend on the phone


00:22:19.713 --> 00:22:23.300
and they're talking about how that friend
should approach a girl,


00:22:24.217 --> 00:22:29.765
and his friend is talking to ChatGPT,
telling ChatGPT stuff about the girl and


00:22:29.765 --> 00:22:33.685
asking advice on what the girl would like
and how he should talk to the girl.


00:22:34.061 --> 00:22:36.396
So it is definitely,
definitely consumer-led.


00:22:36.396 --> 00:22:37.272
And I just,


00:22:37.272 --> 00:22:38.398
I have no clue


00:22:38.398 --> 00:22:40.192
because the second my son found out,
because he was on


00:22:40.192 --> 00:22:41.985
speaker and
I could hear, and the second he found out


00:22:41.985 --> 00:22:44.321
I was listening, like,
obviously he went away.


00:22:44.321 --> 00:22:47.324
And I found that fascinating.


00:22:47.824 --> 00:22:49.076
I think there is a difference.


00:22:49.076 --> 00:22:50.410
So I think here's the difference.


00:22:50.410 --> 00:22:53.914
I think one is
what Aparna said about technology,


00:22:53.955 --> 00:22:56.917
the ability of technology
to get into the hands of people


00:22:56.917 --> 00:23:00.420
as just like ChatGPT has gotten,
it's never been seen before.


00:23:00.420 --> 00:23:01.671
So that's one thing.


00:23:01.671 --> 00:23:04.299
I think the second thing is
we are in a generation


00:23:04.299 --> 00:23:06.968
where this generation
has lived through multiple


00:23:08.303 --> 00:23:09.554
technology changes.


00:23:09.554 --> 00:23:11.431
If you thought about it
like the technology changes


00:23:11.431 --> 00:23:12.724
are just getting more and more rapid,


00:23:12.724 --> 00:23:15.685
and we're probably
one of the first few generations


00:23:15.685 --> 00:23:18.438
that have lived
through an entire cycle in our work life


00:23:18.438 --> 00:23:20.315
and our careers
through technology changes.


00:23:20.315 --> 00:23:22.859
So we are pattern matching and going,
this is big enough.


00:23:22.859 --> 00:23:25.862
Mobile was big
enough, internet was big enough,


00:23:25.946 --> 00:23:28.198
this is big enough
that something's happening.


00:23:28.198 --> 00:23:32.160
Which is why I think this time enterprises
are reacting even more


00:23:33.161 --> 00:23:35.080
than they've ever in the past to go —


00:23:35.080 --> 00:23:37.416
how do we utilize this new change? Right.


00:23:37.416 --> 00:23:38.458
It sounds like you want to say something.


00:23:38.458 --> 00:23:40.293
I'll just add one more thing.


00:23:40.293 --> 00:23:43.755
Based off of what you said,
I think like, the technology itself


00:23:43.755 --> 00:23:46.758
is super accessible,


00:23:47.300 --> 00:23:48.343
on its face.


00:23:48.343 --> 00:23:51.513
But I think to actually get real power


00:23:51.513 --> 00:23:54.641
from it, in a work context.


00:23:55.600 --> 00:23:57.936
Again, like
I said before, I think people are just


00:23:57.936 --> 00:24:01.440
figuring this out now, and some people
are better at it than others.


00:24:01.690 --> 00:24:03.900
And there's a huge,


00:24:03.900 --> 00:24:06.611
there's maybe
not so much of an access gap, but there is


00:24:06.611 --> 00:24:09.614
a skill gap between where


00:24:09.948 --> 00:24:13.243
certain folks are
and where other people are right now.


00:24:13.535 --> 00:24:16.538
And like you said before,


00:24:16.746 --> 00:24:20.083
the person that's going to or your job
will be replaced by the person with AI.


00:24:20.125 --> 00:24:24.463
So how do we make sure that we ourselves
are the people


00:24:24.463 --> 00:24:27.883
that are good at using this technology
and can be more productive?


00:24:27.924 --> 00:24:30.469
How do we train our children to do that?


00:24:30.469 --> 00:24:34.222
And on the same topic,
I think, I'm also concerned


00:24:34.222 --> 00:24:39.394
about the concept
that we will automate entry-level jobs


00:24:39.394 --> 00:24:43.565
with this technology, and we create a gap
in our talent pipeline,


00:24:43.565 --> 00:24:46.693
that becomes
the future leaders of tomorrow.


00:24:47.486 --> 00:24:51.406
So those, I think are all problems
that are remaining to be solved.


00:24:51.740 --> 00:24:51.990
Right.


00:24:53.408 --> 00:24:53.992
I think


00:24:53.992 --> 00:24:56.995
last question before we let you guys
jump in.


00:24:58.330 --> 00:25:00.081
Let's talk about


00:25:00.081 --> 00:25:02.584
how this changes management, right?


00:25:02.584 --> 00:25:04.920
I mean,


00:25:04.920 --> 00:25:07.923
in a world where


00:25:08.465 --> 00:25:09.841
people now have,


00:25:09.841 --> 00:25:12.844
where your employees now
not only have like,


00:25:13.094 --> 00:25:17.224
tools like ChatGPT,
but also like vibe-coding tools that,


00:25:17.224 --> 00:25:20.769
like, would allow them to kind of actually
put their own apps together.


00:25:22.229 --> 00:25:25.482
How does this change the whole top-down
management structure


00:25:25.482 --> 00:25:28.735
that we've all kind of grown up in
and then gotten used to?


00:25:29.945 --> 00:25:32.948
So, let me give you three points of view


00:25:33.490 --> 00:25:36.326
from a research and practical view.


00:25:36.326 --> 00:25:38.370
Number one,


00:25:38.370 --> 00:25:40.413
it is changing the way leaders lead.


00:25:40.413 --> 00:25:43.416
And when I say leaders,
I really mean executive leaders.


00:25:43.416 --> 00:25:46.419
The top of the House,
how they lead.


00:25:46.795 --> 00:25:50.131
The way we used to introduce change
into an enterprise, big or small,


00:25:50.382 --> 00:25:52.968
we would decide
we're going to buy some technology


00:25:52.968 --> 00:25:55.720
or make some transformation,
make some operating model change.


00:25:55.720 --> 00:25:56.638
We'd figure it out.


00:25:56.638 --> 00:25:58.848
Then we'd start to roll it out
and get people


00:25:58.848 --> 00:26:01.101
excited or involved in it at the bottom.


00:26:01.101 --> 00:26:02.227
That's over, right?


00:26:02.227 --> 00:26:04.187
It is changed. We're meeting in the middle.


00:26:04.187 --> 00:26:05.772
And so leaders have to think about.


00:26:05.772 --> 00:26:08.775
First part is
how do I activate the citizens


00:26:09.067 --> 00:26:12.696
within the organization
and how do I drive that


00:26:12.696 --> 00:26:15.448
and enable
that democratization of technology


00:26:15.448 --> 00:26:18.118
so that it can start
that, innovation can start at the bottom.


00:26:18.118 --> 00:26:18.910
The second is,


00:26:20.161 --> 00:26:23.164
we talk about
we always talk about humans at the helm.


00:26:23.164 --> 00:26:26.710
There isn't a process or a workflow
that doesn't have humans,


00:26:26.710 --> 00:26:28.587
not just that are in the loop
that are actually leading.


00:26:28.587 --> 00:26:32.632
It's humans that are leading
digital and human teammates.


00:26:33.341 --> 00:26:36.428
And how that all comes together
and how you change the way


00:26:36.428 --> 00:26:41.224
you think about leadership
and driving different types


00:26:41.224 --> 00:26:44.853
of capability, both at a strategic level
and an execution level.


00:26:44.853 --> 00:26:50.191
And the third is, it's all about
the skill and behaviors and culture.


00:26:50.775 --> 00:26:54.154
So, leaders,
especially leaders of a certain age,


00:26:54.154 --> 00:26:58.325
if you are afraid that the technology
is coming to destroy your job versus


00:26:58.575 --> 00:27:01.578
the technology is coming to enable
or help us


00:27:01.995 --> 00:27:05.165
be more innovative, get to market faster
or be more profitable —


00:27:05.915 --> 00:27:09.836
you're going to constantly
put up a guardrail or


00:27:09.961 --> 00:27:11.546
a blocker around that.


00:27:11.546 --> 00:27:12.714
You need to, back to the first point.


00:27:12.714 --> 00:27:15.800
You need to enable the organization
to be able to do that, one.


00:27:15.800 --> 00:27:18.428
And then for yourself,
have the skills to do it.


00:27:18.428 --> 00:27:22.682
I coach a lot of CEOs who are
in this stage, driving this.


00:27:22.891 --> 00:27:26.311
And they'll admit
vulnerability and fear around the change.


00:27:26.561 --> 00:27:30.732
Ultimately drives them pushing back and
getting them to try it.


00:27:30.732 --> 00:27:31.650
Share with their teams,


00:27:31.650 --> 00:27:35.528
creating a positive AI culture
and environment will ultimately make them


00:27:35.528 --> 00:27:38.948
not just be a better leader, but
make the organization be more profitable.


00:27:39.407 --> 00:27:39.783
Go ahead, Diya.


00:27:39.783 --> 00:27:43.662
Yeah, I think, I agree
from a leadership perspective, I think for


00:27:44.412 --> 00:27:47.666
many people working in an organization
that are not at the


00:27:47.791 --> 00:27:52.003
leadership level, but are like in mid
management, etc., I think creativity,


00:27:52.629 --> 00:27:55.423
is becoming more important
than was the process followed.


00:27:55.423 --> 00:27:56.424
Right.


00:27:56.424 --> 00:28:00.220
I think problem solving on issues
that were deferred to people


00:28:00.345 --> 00:28:04.057
higher up above them
is flowing down more and more.


00:28:04.391 --> 00:28:05.809
Right? So for example,


00:28:07.811 --> 00:28:09.187
things that would be passed


00:28:09.187 --> 00:28:12.691
off to an organization like, hey,
how do we design something now in PM?


00:28:12.941 --> 00:28:17.529
Like the PMs are being asked to design
with a replit or something, right?


00:28:17.529 --> 00:28:20.281
Like can
you can prototype it and design it?


00:28:20.281 --> 00:28:22.909
And then I think that,


00:28:22.909 --> 00:28:26.496
then I think that job functions
are emerging, right?


00:28:26.496 --> 00:28:27.997
Like job functions are beginning to merge


00:28:27.997 --> 00:28:30.083
because now
different functions can do more.


00:28:30.083 --> 00:28:33.753
So, I think what managers at the middle
level are being stressed


00:28:33.837 --> 00:28:37.173
to do is even if they came up
through a particular function,


00:28:37.215 --> 00:28:40.927
they're being asked
to actually go across functions


00:28:40.927 --> 00:28:43.012
where they may or may not necessarily
have the skills.


00:28:43.012 --> 00:28:45.098
And that, I think is the scary part.


00:28:45.098 --> 00:28:47.142
The exciting part of it is you


00:28:47.142 --> 00:28:49.769
now have the technology
that can probably help you do it.


00:28:49.769 --> 00:28:51.688
If you can ask the technology
how you should talk to a girl,


00:28:51.688 --> 00:28:54.190
you can probably ask it
how you should do another function.


00:28:54.190 --> 00:28:54.482
Right.


00:28:54.482 --> 00:28:55.150
Well, and I


00:28:55.150 --> 00:28:58.361
and one, as you were talking about that,
one of the things that was going


00:28:58.361 --> 00:29:02.991
through my head was, there's
an entire, I mean, in major tech companies


00:29:02.991 --> 00:29:07.412
all around the world,
there are product managers.


00:29:07.412 --> 00:29:10.957
And then there are also like people
who are like programing,


00:29:10.957 --> 00:29:13.960
like in the trenches.


00:29:13.960 --> 00:29:19.591
And what if those two jobs merge and how
many layoffs exist as a result of that?


00:29:19.632 --> 00:29:21.217
Yeah.
And I'll give you another example. Right.


00:29:21.217 --> 00:29:24.220
Like for us in our customer success
organization,


00:29:24.929 --> 00:29:27.307
normally the job of customer
success is customer support.


00:29:27.307 --> 00:29:29.684
You pick up the phone
and you try to answer a call, or


00:29:29.684 --> 00:29:31.895
you get an inbound call
and you try to answer a call.


00:29:31.895 --> 00:29:35.648
Now that answering the call, the problem
has become easier because of AI.


00:29:36.399 --> 00:29:37.400
Their job is flipped.


00:29:37.400 --> 00:29:40.153
So can you get them to use more
of the rest of the product, right?


00:29:40.153 --> 00:29:40.445
Right.


00:29:40.445 --> 00:29:44.949
So your job kind of merges — it's
almost semi-sales, semi-customer success.


00:29:45.950 --> 00:29:46.618
Sure.


00:29:46.618 --> 00:29:49.871
So I totally agree with everything
you said.


00:29:51.039 --> 00:29:52.248
I'm a product manager.


00:29:52.248 --> 00:29:55.835
So, I am, I think as product managers


00:29:55.835 --> 00:29:58.838
we may feel very comfortable
wearing many hats.


00:29:58.838 --> 00:30:01.591
And so for me and for my team
and my employees,


00:30:01.591 --> 00:30:06.554
this is really exciting
because, now, like we said before,


00:30:06.596 --> 00:30:10.517
roles are blending
and the same person can


00:30:10.892 --> 00:30:15.563
come up with an idea, prototype it, create
really high-fidelity, beautiful markups,


00:30:16.022 --> 00:30:18.817
create the beautiful marketing materials,
create


00:30:18.817 --> 00:30:21.820
a short video that explains their idea.


00:30:22.111 --> 00:30:27.033
And it just allows kind of the cream
to rise to the top.


00:30:27.242 --> 00:30:30.453
Again, this is the concern
about the skill gap, but it allows people


00:30:30.453 --> 00:30:34.165
who have great ideas
to communicate them more effectively.


00:30:34.833 --> 00:30:35.750
And I think that's great.


00:30:35.750 --> 00:30:39.754
I think another piece, bringing it back to
the original question about


00:30:40.755 --> 00:30:42.340
management.


00:30:42.340 --> 00:30:45.552
I remember
when OpenAI announced their research agent


00:30:45.552 --> 00:30:49.806
and it was $120,000 a year for


00:30:49.806 --> 00:30:53.226
this deep-research agent,
like that was PhD level.


00:30:53.643 --> 00:30:55.687
And they were first kind
of announcing this pricing.


00:30:55.687 --> 00:30:58.690
And as a manager, I thought to myself,
oh, that's an employee.


00:30:58.690 --> 00:31:02.735
So but I could,
that employee could be running 24/7.


00:31:03.027 --> 00:31:06.239
How would I think of ideas
to keep that employee


00:31:06.948 --> 00:31:09.284
productive all the time?


00:31:09.284 --> 00:31:12.412
And I think we could see teams


00:31:12.412 --> 00:31:15.999
that are augmented by an AI agent


00:31:16.624 --> 00:31:19.168
and think of them as an employee.


00:31:19.168 --> 00:31:21.087
Well, I mean, in their company.


00:31:21.087 --> 00:31:23.882
What's the company
that's getting a lot of traction,


00:31:23.882 --> 00:31:27.844
open evidence that is now using,


00:31:29.137 --> 00:31:32.223
is now making
I think it's ad-supported now.


00:31:32.223 --> 00:31:37.437
So instead of, like, costing $120,000 to
have access to, to be able to query like,


00:31:38.521 --> 00:31:40.440
and like,


00:31:40.440 --> 00:31:43.526
as a doctor to have like somebody
to ask


00:31:43.776 --> 00:31:46.654
reliable questions to.


00:31:46.654 --> 00:31:48.698
It's, the idea is it


00:31:48.698 --> 00:31:52.243
might actually be relatively free. Anyway,


00:31:52.243 --> 00:31:54.746
go on.


00:31:54.746 --> 00:31:57.123
I think this is going to be
when you think about management


00:31:57.123 --> 00:32:01.002
and organization, I think this is going
to be the biggest shift


00:32:01.002 --> 00:32:05.757
since, I would say assembly-line
industrial revolution to, maybe the


00:32:06.007 --> 00:32:09.010
when the PCs came on board,
this is the 3.0 of it,


00:32:09.302 --> 00:32:12.388
and I think it will hit us all
at multiple levels.


00:32:12.388 --> 00:32:16.351
So at the individual level,
as we all operate, I think it's true.


00:32:16.351 --> 00:32:19.604
Previously, I think intelligence and skills
were the gatekeeper.


00:32:19.896 --> 00:32:23.900
Right now, every one of us has
the super-intelligent thing whether


00:32:23.900 --> 00:32:25.193
you call it AGI, SI.


00:32:25.193 --> 00:32:27.820
That's actually beside the point.
But you have a really, really smart


00:32:29.322 --> 00:32:31.616
companion copilot in your pocket.


00:32:31.616 --> 00:32:33.534
And so that's no longer
the gatekeeping thing.


00:32:33.534 --> 00:32:34.869
It is going to be ambition.


00:32:34.869 --> 00:32:39.999
It's going to be who takes
the flying car to the grocery store versus


00:32:40.208 --> 00:32:41.209
actually to Mars. Right.


00:32:41.209 --> 00:32:45.588
In terms of like, how are you
being high ambition and using AI?


00:32:46.005 --> 00:32:48.216
It is going to be about taste
and judgment,


00:32:48.216 --> 00:32:51.928
because you have a team of agents
and it is going to be about


00:32:51.928 --> 00:32:55.682
every employee is now
a manager, is a boss of these agents,


00:32:56.015 --> 00:33:00.144
which means you'll have to figure out
how to steer, how to coach, how to direct.


00:33:00.520 --> 00:33:04.774
These are all skills that typically people
get much more further in their career.


00:33:05.149 --> 00:33:08.861
And so that I think is going to be on
an individual-level challenge.


00:33:09.445 --> 00:33:13.116
The next level of challenge
and opportunities at the team level,


00:33:13.366 --> 00:33:17.662
by the way, we are seeing that already
where we added meeting agents


00:33:17.662 --> 00:33:20.748
and these project-management agents
into our teams


00:33:20.748 --> 00:33:23.876
product,
and it's fascinating to see the dynamic.


00:33:24.085 --> 00:33:25.086
It is what you said,


00:33:25.086 --> 00:33:29.298
Anthony, about multiple
humans and multiple agents at work.


00:33:29.298 --> 00:33:31.968
And I have a team
that's kind of like it's very meta.


00:33:31.968 --> 00:33:33.469
It's actually building a feature


00:33:33.469 --> 00:33:37.306
for that project-management agent,
using that project-management agent.


00:33:38.099 --> 00:33:41.310
And one nugget
I would say of insight there is that


00:33:42.395 --> 00:33:44.731
today we think about our wiring


00:33:44.731 --> 00:33:47.984
default is not asynchronous
and 24/7, to your point.


00:33:48.359 --> 00:33:51.070
So things like, hey, these things,


00:33:51.070 --> 00:33:54.073
we are all VSLMs, humans.


00:33:55.450 --> 00:33:57.785
And we have incomplete knowledge.


00:33:57.785 --> 00:34:00.038
We have incentive issues.


00:34:00.038 --> 00:34:04.667
So turns out that the LLMs are 24/7
but also they have like amazing,


00:34:04.667 --> 00:34:07.295
they are not token constrained
like we are.


00:34:07.295 --> 00:34:10.673
And so whichever team
and we have multiple teams using it.


00:34:11.132 --> 00:34:15.261
Whichever team is able to put those agents
to work in a much more effective way,


00:34:15.595 --> 00:34:19.474
they're shipping in the order of weeks
versus months and years.


00:34:19.474 --> 00:34:21.809
That set the team level.


00:34:21.809 --> 00:34:23.770
The organizational one is the one


00:34:23.770 --> 00:34:27.440
that makes me most ponder a lot.


00:34:27.440 --> 00:34:30.568
In fact, most recently
I wrote about this, saying


00:34:30.818 --> 00:34:34.113
most of what we do
in an organization is translation


00:34:36.741 --> 00:34:38.076
and routing.


00:34:38.076 --> 00:34:40.828
If you look at an organization,
there's a whole bunch of folks


00:34:40.828 --> 00:34:42.371
who are doing things, right.


00:34:42.371 --> 00:34:44.290
And of course, swim
lanes are merging there.


00:34:44.290 --> 00:34:47.293
But there are all builders,
whether they're engineers or designers.


00:34:47.502 --> 00:34:49.128
And then there's
a whole bunch of information


00:34:49.128 --> 00:34:51.172
routing and translation that happens.


00:34:51.172 --> 00:34:54.175
And then you have an executive
that's kind of making decisions.


00:34:54.634 --> 00:34:58.262
If LLMs are really good
universal translators,


00:34:58.721 --> 00:35:02.141
I think one of the questions
with manager in their title,


00:35:02.141 --> 00:35:05.103
in all of us
needs to think about is,


00:35:05.770 --> 00:35:09.273
am I doing translation
or am I doing transformation?


00:35:09.273 --> 00:35:12.860
And adding kind of the value
and how am I be being effective


00:35:12.860 --> 00:35:16.781
in helping decision making and judgment
versus schlepping information


00:35:16.781 --> 00:35:20.326
one way to one place to another
because the LLMs will do it better.


00:35:21.244 --> 00:35:26.124
Anybody who wants to ask a question
should come up, should start coming up.


00:35:26.958 --> 00:35:31.671
You brought up something that worried you,
about the talent gap at the entry level.


00:35:31.712 --> 00:35:35.258
And yesterday
we heard May talk about this,


00:35:35.258 --> 00:35:38.761
flattening of organizations
and working laterally.


00:35:39.220 --> 00:35:40.596
What are you hearing?


00:35:40.596 --> 00:35:42.515
Clients. Your own companies.


00:35:42.515 --> 00:35:44.559
Are they talking about this?


00:35:44.559 --> 00:35:46.352
What are they doing about this?


00:35:46.352 --> 00:35:49.647
Like, I know it's not
solved, but what's the dialog?


00:35:52.900 --> 00:35:54.277
I'm really glad you asked that question.


00:35:54.277 --> 00:35:55.570
Yes, it was actually the one.


00:35:55.570 --> 00:35:58.447
The next question I was going to ask
is what is the entry level?


00:35:58.447 --> 00:35:59.782
What does entry-level job


00:35:59.782 --> 00:36:02.785
looks like?
Sorry. Go ahead, go ahead.


00:36:02.952 --> 00:36:06.622
I mean, this is actually
what we are living through both in terms,


00:36:06.622 --> 00:36:08.166
two dimensions to this problem.


00:36:08.166 --> 00:36:09.709
One is


00:36:09.709 --> 00:36:13.504
how do you actually train folks coming in?
Like you don't want


00:36:13.629 --> 00:36:15.590
the first rung of the ladder
if you will, right?


00:36:15.590 --> 00:36:18.426
If you have folks
coming into the organization,


00:36:18.426 --> 00:36:21.304
how do you equip them with skills
to use AI?


00:36:21.304 --> 00:36:21.804
Right.


00:36:21.804 --> 00:36:23.764
To be able to get those skills?


00:36:23.764 --> 00:36:26.350
I was talking to a law firm,


00:36:26.350 --> 00:36:30.062
like a partner, and he said,
oh yeah, like I actually use


00:36:30.062 --> 00:36:33.691
a lot of AI tools to supplement
the analyst and associates.


00:36:34.358 --> 00:36:35.860
And I said, oh,
how do you have the judgment


00:36:35.860 --> 00:36:37.445
to kind of like, steer these tools?


00:36:37.445 --> 00:36:39.697
Because he's like, oh,
I was an analyst, an associate.


00:36:39.697 --> 00:36:41.699
I'm like, do you see what's happening?


00:36:41.699 --> 00:36:43.534
You need to kind of figure
that out, right?


00:36:43.534 --> 00:36:44.243
So I think


00:36:44.243 --> 00:36:48.039
one of the things you're talking about is
what is the externship, apprenticeship


00:36:48.247 --> 00:36:53.294
training model for these,
like beginning rounds of thinking with AI,


00:36:53.336 --> 00:36:58.758
thinking with the machine and working with
AI and not just using AI as a tool.


00:37:00.343 --> 00:37:00.551
Yeah.


00:37:00.551 --> 00:37:01.719
So, two things.


00:37:01.719 --> 00:37:05.014
One, the entry-level job is


00:37:05.431 --> 00:37:08.142
in many industries is changing, especially
when it's, a knowledge worker.


00:37:08.142 --> 00:37:09.018
I'll take PwC,


00:37:09.018 --> 00:37:12.271
I mean, 25% of our business is
audit.


00:37:12.271 --> 00:37:12.730
Right.


00:37:12.730 --> 00:37:15.691
And so it's,
it needs humans that read


00:37:16.776 --> 00:37:19.904
financial statements
and then ultimately, creates


00:37:19.904 --> 00:37:21.447
an opinion that's going to change, right?


00:37:21.447 --> 00:37:24.242
We're going to see that
be more automated and autonomous.


00:37:24.242 --> 00:37:25.910
And so what we need is our associates


00:37:25.910 --> 00:37:28.996
that come in from undergrad
that actually have AI skills,


00:37:28.996 --> 00:37:33.251
that know how to work with those agents,
that then can be, I mean, we in


00:37:33.251 --> 00:37:37.838
in a regulated industry
still need a human to render an opinion.


00:37:38.172 --> 00:37:40.841
So the job is changing.


00:37:40.841 --> 00:37:43.552
Now, the numbers is a different question.
Right?


00:37:43.552 --> 00:37:46.097
So the job is changing.
The interesting piece is


00:37:46.097 --> 00:37:47.223
we also have less humans.


00:37:47.223 --> 00:37:48.015
So we are


00:37:48.015 --> 00:37:51.018
not going to be producing as many,
particularly in the United States,


00:37:51.102 --> 00:37:54.480
that the number of people
that are starting into these careers.


00:37:54.689 --> 00:37:59.568
And so there is this
how do we push people like other countries


00:37:59.568 --> 00:38:03.364
who are more mature and older than us
into other types of careers


00:38:03.364 --> 00:38:04.740
and understanding of that, which then.


00:38:04.740 --> 00:38:08.286
So that's why I was saying it's
a social experiment, because it affects


00:38:08.619 --> 00:38:13.040
how we, the expectations we set of children
like it's okay to be a welder, right?


00:38:13.040 --> 00:38:15.459
Welders in the United States make
a lot of money


00:38:15.459 --> 00:38:18.462
and no one tells their kids,
oh, I want you to grow up and be a welder.


00:38:18.462 --> 00:38:20.047
But they say, like, oh,
I want you to be an engineer.


00:38:20.047 --> 00:38:21.841
Everyone needs to be an engineer.
I don't have kids.


00:38:21.841 --> 00:38:24.093
So I hear people, my friends say that.


00:38:24.093 --> 00:38:26.012
But if you want to be an engineer,
you should be in it.


00:38:26.012 --> 00:38:26.178
Yeah.


00:38:26.178 --> 00:38:27.096
No, no, I'm not saying,


00:38:27.096 --> 00:38:29.223
but there are plenty of people
who can't be an engineer.


00:38:29.223 --> 00:38:32.351
And then we have,
we have all this dialog between


00:38:32.560 --> 00:38:34.061
unemployed and job loss.


00:38:34.061 --> 00:38:36.397
And actually there's not job losses,
so much gain.


00:38:36.397 --> 00:38:39.066
It's just not in the way
people think of it today.


00:38:39.066 --> 00:38:43.446
So, a quick follow-on question is,
or just to throw out there,


00:38:43.446 --> 00:38:47.366
it kind of seems like we just need
to really look at hiring practices


00:38:47.366 --> 00:38:50.369
and think about that
pretty deeply.


00:38:50.661 --> 00:38:52.371
We should follow up.


00:38:52.371 --> 00:38:53.706
All right.


00:38:53.706 --> 00:38:55.041
Next question.


00:38:55.041 --> 00:38:58.085
Yeah,
I have a question regarding the C-suite


00:38:58.711 --> 00:39:01.756
and what kind of skills should CEOs


00:39:01.756 --> 00:39:04.925
have in order to navigate the next decade.


00:39:05.509 --> 00:39:08.512
I was on the board of
a public company.


00:39:08.721 --> 00:39:13.809
And obviously, I talked to a lot
of the companies and CXOs.


00:39:15.227 --> 00:39:18.105
I mean,
it's hard to give a short answer,


00:39:18.105 --> 00:39:22.151
but I would give like two observations
that I've been kind of thinking about.


00:39:22.568 --> 00:39:23.402
I think one


00:39:23.402 --> 00:39:26.947
is this idea of like defining the business
and the industry that you're in.


00:39:28.115 --> 00:39:31.118
For example, ages ago,
I think there was this question about


00:39:32.036 --> 00:39:34.663
a bus and transportation
companies, railroads


00:39:34.663 --> 00:39:35.998
and how that whole thing happened


00:39:35.998 --> 00:39:39.043
because they didn't think about themselves
as in the transportation business.


00:39:39.043 --> 00:39:42.004
Right? Versus like, exactly.


00:39:42.254 --> 00:39:46.258
And I think the question is today, for
example, whenever there is a technology


00:39:46.258 --> 00:39:50.471
and platform shift, what I say is there is
going to be a collapse of categories.


00:39:50.763 --> 00:39:54.308
When the internet came about, before that,
you didn't remotely


00:39:54.308 --> 00:40:00.398
think about a phone book
and a local newspaper in the same bucket.


00:40:00.606 --> 00:40:03.484
But once the search engine came, they


00:40:03.484 --> 00:40:06.487
both turns out to be
the blue links on the web.


00:40:06.821 --> 00:40:10.533
So just like that,
they will be a category collapse of things


00:40:10.533 --> 00:40:11.909
that are very different. Already,


00:40:11.909 --> 00:40:14.912
I see in my business
productivity, creation,


00:40:15.162 --> 00:40:17.706
search, information, it's
all blurring together.


00:40:17.706 --> 00:40:19.834
So that's the number-one thing.


00:40:19.834 --> 00:40:23.087
Are you in a category that's
going to collapse with the platform shift?


00:40:23.170 --> 00:40:26.048
If so, really think hard
about how you want to play.


00:40:26.048 --> 00:40:29.218
The second one is more psychology
I would say is which is the posture.


00:40:29.468 --> 00:40:34.098
I think it is very tempting for incumbents
to kind of like not lean in and avoid


00:40:34.098 --> 00:40:36.976
and think it's going away.
Diya is right this time.


00:40:36.976 --> 00:40:40.938
Some of, many of the incumbents today
were the upstarts in the internet shift.


00:40:41.105 --> 00:40:44.108
So, we are familiar
that this is going to be big.


00:40:44.442 --> 00:40:49.405
That's knowing that intellectually but
really leaning in and having AI facility.


00:40:49.405 --> 00:40:54.994
So I even say, go and actually be and I see
and like build things because you don't


00:40:54.994 --> 00:40:58.789
get intuition and learn about what
the models can do unless you do that.


00:41:01.292 --> 00:41:03.669
I'll just
add one thing if you want to jump in


00:41:03.669 --> 00:41:07.381
also, I was just having a conversation
with someone who is an executive


00:41:07.381 --> 00:41:10.384
at a cable company,
and we were talking about


00:41:10.801 --> 00:41:15.139
the advent of streaming
and how it destroyed the industry.


00:41:15.139 --> 00:41:20.269
And yeah, I was reminded again,
going back to the point that I made


00:41:20.269 --> 00:41:24.857
before that, it's not about what are the
AI problems that my business can solve.


00:41:24.857 --> 00:41:29.945
It's about like focusing on the core value
that your business is driving.


00:41:30.404 --> 00:41:36.243
Can this product be faster, cheaper,
better, more delightful for my customers?


00:41:36.243 --> 00:41:37.703
Can I provide more value?


00:41:37.703 --> 00:41:41.081
And so I think there's a, again,
when you're in this kind of incumbent


00:41:41.081 --> 00:41:44.168
spot,
there's, can be a failure of imagination


00:41:44.168 --> 00:41:48.005
about what could disrupt
the business that you're working in.


00:41:48.255 --> 00:41:51.091
And so I think, my advice here


00:41:51.091 --> 00:41:54.428
is just to focus on
delighting your customers.


00:41:55.054 --> 00:41:57.848
Because someone's going to take your
bag if you don't.


00:41:57.848 --> 00:41:58.474
I think,


00:41:59.808 --> 00:42:00.809
it's really


00:42:00.809 --> 00:42:04.605
about, a CEO really needs
to understand a couple of things


00:42:04.980 --> 00:42:09.276
and then have the courage to go through
the change to make those things happen.


00:42:09.735 --> 00:42:13.906
So the first is what is truly, deeply


00:42:14.365 --> 00:42:17.535
your company's value proposition
and skill sets?


00:42:17.993 --> 00:42:21.455
And what I mean by
that is a lot of companies


00:42:21.455 --> 00:42:24.458
confuse their product or their customers
with their skill set.


00:42:24.458 --> 00:42:27.336
If I look at Xero, I'm going to take
an example to make this concrete.


00:42:27.336 --> 00:42:30.548
We provide a piece of software
that does


00:42:30.548 --> 00:42:33.551
your accounting
taxes, your payments and your payroll.


00:42:33.717 --> 00:42:37.930
But our real-value proposition
that distinguishes us,


00:42:37.930 --> 00:42:41.600
is in the way we connect a small business
with the advisors they need.


00:42:42.101 --> 00:42:42.810
Right.


00:42:42.810 --> 00:42:46.522
And our entire product is architectural
and that is


00:42:46.522 --> 00:42:47.439
what makes us successful.


00:42:47.439 --> 00:42:48.315
Our entire go-to-market


00:42:48.315 --> 00:42:51.402
motion is architected around that,
and we are unique in that worldwide.


00:42:52.152 --> 00:42:55.573
So if we look at it from that lens and go,


00:42:55.614 --> 00:42:58.576
that is the value prop we're providing,
that's not going anywhere.


00:42:58.576 --> 00:43:01.245
Connecting a small business to an advisor
that can help


00:43:01.245 --> 00:43:04.206
and an advisor to a small business
where they can help, etc.


00:43:04.290 --> 00:43:05.541
That's not going anywhere.


00:43:05.541 --> 00:43:07.626
How do we use this technological shift?


00:43:07.626 --> 00:43:09.795
We give up the entire baggage we have.


00:43:09.795 --> 00:43:11.880
This is what our product looks like.
This is how we do business.


00:43:11.880 --> 00:43:13.048
This is our business model.


00:43:13.048 --> 00:43:14.466
And you need a CEO that can go, okay.


00:43:14.466 --> 00:43:18.596
Given this technological shift,
how can I make this value


00:43:18.596 --> 00:43:21.724
proposition more deep, uniquely?


00:43:22.224 --> 00:43:23.851
I think that's what's going to stand out.


00:43:23.851 --> 00:43:24.768
And then obviously, there's a


00:43:26.186 --> 00:43:28.022
ton of courage.


00:43:28.022 --> 00:43:29.982
Do not use a bad word.
There's a ton of courage


00:43:29.982 --> 00:43:33.319
you have to have to
then change your entire business


00:43:33.611 --> 00:43:36.614
in that direction.


00:43:36.697 --> 00:43:39.700
All right,
let's go to one more question.


00:43:39.783 --> 00:43:42.870
So in thinking
so the leaders are managers.


00:43:42.870 --> 00:43:45.664
So it's kind of building off
the CEO question.


00:43:45.664 --> 00:43:49.960
When you're in an industry or a business
that has to get stuff done,


00:43:50.044 --> 00:43:53.797
like we have to continue the business
that we have and sustaining the business


00:43:53.797 --> 00:43:59.511
that we have,
but we also want our teams to be creative.


00:43:59.511 --> 00:44:01.805
Like, we've heard this
throughout the last couple of days,


00:44:01.805 --> 00:44:04.266
AI is going to liberate you
from these mundane tasks,


00:44:04.266 --> 00:44:06.185
and you're going to have
all this creativity and time.


00:44:06.185 --> 00:44:07.019
Okay, cool.


00:44:07.019 --> 00:44:09.897
Except when am I going to do that?


00:44:09.897 --> 00:44:14.652
And I have these goals that I have to hit
or my team has to hit or whatever


00:44:15.486 --> 00:44:19.365
for the quarterly whatever it's
OKR or goal or whatever the metric is.


00:44:19.782 --> 00:44:25.204
So, I'm curious to know what you've seen
or done as leaders for your teams.


00:44:25.204 --> 00:44:28.415
Like what metric
are you asking people to hit


00:44:28.666 --> 00:44:32.711
to let you determine
if there is the kind of creativity


00:44:32.711 --> 00:44:36.465
that you want or creative thinking,
which is sort of this


00:44:36.757 --> 00:44:40.302
hard-to-measure reality
that I think it has to be there


00:44:40.302 --> 00:44:42.554
for people to do this
kind of AI exploration


00:44:42.554 --> 00:44:45.099
we're asking them to do. How do we do that?


00:44:45.099 --> 00:44:47.893
Like,
how do we structure the goals of our team


00:44:47.893 --> 00:44:50.437
in a way that lets people do that?


00:44:50.437 --> 00:44:52.523
I don't know. I'm just curious
how you've done it.


00:44:52.523 --> 00:44:54.525
How you've seen other people do it?


00:44:54.525 --> 00:44:57.444
It's, so how do you keep people from using
AI to cheat?


00:44:57.444 --> 00:44:58.112
Yeah.


00:44:58.112 --> 00:44:59.488
I didn't get a better bunch.


00:44:59.488 --> 00:45:02.783
Well, so that's a good point
because I think


00:45:02.950 --> 00:45:04.868
what you have to do is
you have to liberate them


00:45:04.868 --> 00:45:07.329
and make them feel like
this is actually enabling


00:45:07.329 --> 00:45:09.289
their success,
like their productivity.


00:45:09.289 --> 00:45:11.500
You have to think about ways
in which you're going to incent them.


00:45:11.500 --> 00:45:14.044
But the part that I think you're
really getting at is about creativity.


00:45:14.044 --> 00:45:15.796
And not everyone is created equal.


00:45:15.796 --> 00:45:18.882
So, the key piece
that's still a gap for many organizations,


00:45:19.216 --> 00:45:22.094
the ones that are getting it
right, are giving that skill


00:45:22.094 --> 00:45:26.348
and development to the staff,
to their people that say, I want to teach,


00:45:26.348 --> 00:45:29.768
you need to get the skill on
how to use AI, but also the human skills


00:45:29.768 --> 00:45:32.855
are more important for the humans
that are still in these jobs.


00:45:32.855 --> 00:45:35.232
And so how do I,
what does that mean to be creative?


00:45:35.232 --> 00:45:38.235
What do I do with the time
that is that I came back


00:45:38.318 --> 00:45:41.405
because AI is enabling me
to have greater efficiency.


00:45:41.655 --> 00:45:43.782
How do I use that time?
How do I structure it?


00:45:43.782 --> 00:45:48.036
And then you as the leader, have to make
that positive culture, that environment


00:45:48.287 --> 00:45:49.830
that allows that team to feel like,


00:45:49.830 --> 00:45:52.374
hey, it's okay
if I spend two hours thinking about


00:45:52.374 --> 00:45:55.836
new ways or new innovations
and bringing those to staff meetings


00:45:56.128 --> 00:45:59.798
and ways in which that they're going
to get rewarded for that versus,


00:46:00.215 --> 00:46:02.301
oh, you didn't hit your number,
but this is a great idea.


00:46:02.301 --> 00:46:05.763
You have to create that culture,
and you have to stand by it and live by it


00:46:05.888 --> 00:46:09.975
after you give them the capability.
It's not like creativity.


00:46:09.975 --> 00:46:10.350
Okay.


00:46:10.350 --> 00:46:14.438
Or I mean, like practically like,
what does that look like to do?


00:46:14.438 --> 00:46:16.273
All of it
should be in service of the results.


00:46:16.273 --> 00:46:17.775
The key results of your organization.


00:46:17.775 --> 00:46:20.652
Like you, one should not.


00:46:20.652 --> 00:46:21.278
No offense.


00:46:21.278 --> 00:46:24.823
You shouldn't need an OKR for
what we're talking about.


00:46:25.032 --> 00:46:28.035
It's ultimately
in service of the business result.


00:46:28.118 --> 00:46:31.121
And if you're doing something that's not
in service of, you shouldn't be doing it.


00:46:31.121 --> 00:46:34.666
But if automation for autonomy,
if agentic


00:46:34.708 --> 00:46:38.045
AI is going to deliver that greater
effectiveness of the business,


00:46:38.504 --> 00:46:41.924
then using that creativity for you
is going to be something else


00:46:41.924 --> 00:46:43.258
that's different than for me.


00:46:43.258 --> 00:46:44.468
Each of you has like time,


00:46:44.468 --> 00:46:47.262
we have time for like two-sentence answers
here.


00:46:47.262 --> 00:46:47.596
Go for it.


00:46:47.596 --> 00:46:53.060
Yeah, I think I agree, the thing
I would say is innovation or creativity


00:46:53.060 --> 00:46:58.273
often happens at the bottom
where you are not, where people have time


00:46:58.273 --> 00:47:00.609
and not at the mid-management or
senior-management level.


00:47:00.609 --> 00:47:01.777
So one of the things we found


00:47:01.777 --> 00:47:05.531
a lot of success in is like we will
hear of things people are doing,


00:47:05.531 --> 00:47:10.118
new employees coming in, new engineers
coming in, engineers at the lower level.


00:47:10.285 --> 00:47:12.371
You just have to make sure
everybody hears of it,


00:47:12.371 --> 00:47:15.999
because once people hear of it,
then they will start adopting it.


00:47:15.999 --> 00:47:19.962
So you go to these pockets of creativity
and that's what has worked for us.


00:47:20.587 --> 00:47:20.796
Yeah.


00:47:20.796 --> 00:47:25.384
Same here, I think the mimicry. I'd say
we've run like in my teams.


00:47:25.384 --> 00:47:27.636
We've done boot camps where we say


00:47:27.636 --> 00:47:30.639
take one week or two weeks
and just like you get all the tokens


00:47:30.639 --> 00:47:33.642
you want and all the tools that you want,
go build stuff.


00:47:33.642 --> 00:47:34.935
And initially, there's no pressure


00:47:34.935 --> 00:47:37.479
about kind of like
making it add to the bottom line,


00:47:37.479 --> 00:47:40.983
because what I found at least
is that that kind of clamps your thinking.


00:47:40.983 --> 00:47:42.609
You just kind of like, go for it.


00:47:42.609 --> 00:47:44.027
But not everybody is going to sign up.


00:47:44.027 --> 00:47:45.445
It's a concentric-circle model.


00:47:45.445 --> 00:47:47.406
You want the folks who are already AI build


00:47:47.406 --> 00:47:49.700
and then kind of like
get to the folks and mimicry.


00:47:49.700 --> 00:47:53.871
And then, the diffusion happens
as it does with any change.


00:47:54.454 --> 00:47:55.122
All right.


00:47:55.122 --> 00:47:57.666
That's all the time
we have. Give our panel a hand.
