EP 241: Want to ban AI? Be prepared to shut down.

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If your company is banning generative AI, then be prepared to shut down. Sorry, I think sometimes on days that aren't hot, take Tuesday. I take it a little lightly on certain companies, but recently, I don't know, for whatever reason, I've been hearing so many stories, reading so many articles about companies that are still to this day banning generative AI. We're going to go over the reasons why so many companies still are banning generative AI and then go point by point and tell you why each one of those reasons is a completely bad idea to you. Sound good? All right, if that sounds like it's up your alley, stick around. But thank you for joining us. My name is Jordan Wilson and this is Everyday AI. We're daily live stream, podcast and free daily newsletter helping everyday people like you and like me not just learn generative AI, but how we can all leverage it to grow our companies and to grow our careers. So I'm excited for this one. If you're listening on the podcast, thank you. As always, check your show notes and go to your everydayai.com to sign up for the free daily newsletter. We're going to try to keep today's episode kind of short, but the. The newsletter is going to contain so much important information, y'. All. If. If you are working at a company that is still banning generative AI top to bottom, you need to listen up today before it was too late. You can't say, you know, hey, no one warned us. I'm warning you right now. All right, I've talked to hundreds with an s. Hundreds of experts around the globe when it comes to generative AI. And if you are not using it, if your company is still banning it, you are going to fail. All right, so if you don't want to fail, go check out our website, your everyday AI.com. it's like a free generative AI university. No matter what you want to learn around generative AI, whether it's sales, enablement, marketing, entrepreneurship, health, it's all on there. We've talked to, like I said, hundreds of experts. Go check out our website. Learn. Get your learn on. All right, so before we get into today's topic, let's first talk about what's going on in AI news. All right, so the U.K. and the U.S. have signed a landmark deal on AI safety evaluation. All right, so the UK and the US have signed a significant agreement to collaborate on developing robust methods for evaluating the safety of AI tools and their underlying systems. So this brand new bilateral agreement marks a crucial step in addressing the global challenge of ensuring the safe development of AI technology. This agreement builds upon commitments made at the AI Safety Summit in November 2023, where the UK and US establish AI safety institutes to assess open and closed source AI systems. So despite the intense competition among major AI chatbots, large like Chat gbt, Gemini, Claude, etc, US based firms are still cooperating on the concept of regulation. So we'll see how that actually plays out, especially here in the us. All right, next piece of AI news. We have kind of a double, double announcement here from Chat GPT. So OpenAI has made Chat GPT public? Yeah, that's right. You can go on an incognito browser, you don't have to be logged in and you can use the free version of Chat Chat GPT. So if you want to save your chats or if you want to use the more premium GPT4 version, you obviously still have to have a free or a paid account. So if you do want to go back to your chats and revisit them later, you can still do that with a free account. If you want to access OpenAI's most powerful model GPT4, you still need at least if you want to access it be via Chat gbt, you still need a paid account for that. But anyone right now can go without having an account and use Chat gbt. So if you are still on the fence for whatever reason, like the topic of today's show, it's a good time to check it out. You don't even have to sign up for an account. All right, last but not least, our piece of AI news for today is Apple has released, yes, another large language model. Weird, right? All right, so Apple has introduced the the AI model Realm. All right, so Apple has unveiled a groundbreaking AI model named Realm that apparently surpasses GPT4 in contextual data parsing. All right, and again this was released not the typical Apple playbook, but it was released via a research paper. All right, so Realm reportedly will enhance series capabilities by converting context into text or more efficient parsing. This is more related to parsing, so smaller Realm models have outperformed GPT4 according to their benchmarks in the paper, with fewer parameters, making them ideal for edge AI or on device use. So Apple kind of their new method is converting images into attacks and eliminates the need for complex image recognition, including model efficiency. All right, so probably we're going to see this released or at least referenced in Apple's upcoming AI strategy at WWDC, see their developer conference in June, this June 2024 and will probably involve some sort of on device model announcement. So this is actually the second large language model related paper from Apple in the first in the last few weeks after they announced their MM1 model in March via research paper. Alright, so real quick, the difference. Realm stands for reference resolution as a language model and it's more focused on performance performing tasks prompted using contextual language on a smart device. All right, so Realm is a little bit more kind of edge AI smart device and more talking about kind of parsing and grabbing information where mm where mm1 is more of a multimodal AI model that will likely integrate with various modes of communication such as text, voice, images and processing information. All right, that's a mouthful. That's a lot. All right, so let's, let's get to the good stuff. And as always, there's way more news and more info on that at your everyday AI dot com. All right, for all of you joining, thank you. How hot should I go, y'? All? I didn't sleep too much. Sometimes when I don't sleep, I get a little cranky. When I get cranky, the hot takes on Hot Take Tuesday can be especially hot. So hey, to our audience joining us, thank you as always. Our livestream, if you join us on the podcast every day, super appreciate it. But you know, join us here in the live stream every single day, 7:30am Central Standard Time. Whether you're joining us on LinkedIn or, or YouTube, it doesn't matter. But how hot should we, should we take it? Throw a, throw a flame emoji. Should we go 1, 2 or 3 for our live audience. But thanks for joining us. Tara and Megan and Juan from Chicago from rainy Chicago and Chris joining us from sunny Florida and Brian and Jay. We got a nice, nice audience in the house. Some great AI leaders, Denise and Brian. Thank you all. All right, my Caroline says we should just go hot. Michael. I can't even count all the emojis. Joining us from YouTube. Tara says burn it down. Hey, Michael. Michael. 4G forma. Gus says slow burn. All right. But hey, it looks like everyone wants the super hot takes as always. Why does no one want the, you know, one flame emoji except Michael? All right, let's get into it. We're going to keep this one somewhat short and sweet today, y', all, but let's start at the top. If you ban Generative AI, your company will eventually fail, period. I don't care what industry you're in. I don't care if you have sensitive data, private health information, personally identifiable information. It doesn't, it doesn't matter if you are of the mindset. Okay? So if you're a business leader out there and if you are making decisions on AI implementation on AI strategy and you are still pushing it off and you still have a top to bottom company band, you're gonna fail, period. Pause for dramatic effect. You will fail. Your company will fail, period. All right, so we're going to talk about examples, all right? But you definitely don't want to be the blockbuster of your industry. You don't want to be the BlackBerry of your industry. You don't want to be the, the sears of your industry. Right? Those three companies are just examples that didn't innovate. They didn't adapt to, to today's or, you know, yesterday's or decades old technology. They played it too slow. All right, so let's look at the reasons y'. All. And hey, if you are, if you are joining us live, I'd love to hear your hot takes too. Right? That's why we do this. It's interactive, you know, so I'd love to hear your, your hot takes on. Hey, is your company banning generative AI? Do you think that a company can still thrive five years into the future if they're not using generative AI and all their competitors are? What questions do you have? All right, but first I want to look at this very recent Cisco data privacy benchmark study. All right, we're going to link to this in the newsletter. This is from 2024, but some pretty interesting results from this, this study. All right, so it shows that 61% of companies surveyed still had tool restrictions. All right, 61% of companies are still banning some sort of generative AI. That's a lot, right? And 27% gener generative AI in general is not permitted. 27 per 7. 27 of companies. It's so baffling I can't even speak the words right. That is wild, y'. All. That more than a quarter of companies in this survey have a somewhat ban still of generative AI. I'm going to probably make this comparison more than once, but I'm going to do so for dramatic event effect. All right, so let's say you're a CEO right now and you've banned generative AI at your medium sized company or your big, your large company. All right, do you Allow your employees to use the Internet. I would assume you do, right? To research things, to email their colleagues, to find the most up to date information and industry white papers, to read and to learn. Do you ban the Internet? If the answer is no. Spoiler alert. The answer is no. Then you have absolutely no reason to ban generative AI. It is the exact same thing. It is used differently. And I don't make that comparison lightly. I make that comparison from thousands of hours over the past year, conversations with experts leading and teaching thousands of people how to use generative AI. That comes from experience. That's just not some random thought that I've stumbled upon here live on the show. Banning generative AI is akin to banning the Internet. I'm going to say that one more time. If you or your company or your department is banning AI, it is the same exact thing as banning the Internet. That wouldn't be a smart business decision, would it? If your company or if your department couldn't use the Internet tomorrow or anything Internet enabled, what would happen? Pick up the phone, go find your nearest word processor. Get a phone book out, sharpen your pencils. It wouldn't last long. Your doom would be around the corner. Same thing can stay. Same exact thing can be said. Regenerative AI. Prove me wrong. I need that sign that says, you know, hey, if you don't use generative AI within three years, your company's going to go extinct. Convince me otherwise. That's the reality. All right, so let's look at some reasons. Hey, Melissa just says exactly with clap emoji. All right. Are you still running in circles trying to figure out how to actually grow your business with AI? Maybe your company has been tinkering with large language models for a year or more, but can't really get traction to find ROI on Genai. Hey, this is Jordan Wilson, host of this very podcast. Companies like Adobe, Microsoft and Nvidia have partnered with us because they trust our expertise in educating the masses around generative AI to get ahead. And some of the most innovative companies in the country hire us to help with their AI strategy and to train hundreds of their employees on how to use Gen AI. So whether you're looking for ChatGPT training for thousands or just need help building your front end AI strategy, you can partner with us too. Just like some of the biggest companies in the world do. Go to your everydayai.com partner to get in contact with our team or you can just click on the partner section of our website or will help you stop running in those AI circles. And help get your team ahead and build a straight path to ROI on gen. So here's why so many companies are banning generative AI. All right? And there's a lot, there are. So I've heard a lot of personal stories. You know, I've friend that works in Fintech who just texted me said, hey, my company can't use generative AI. What should I be doing to keep up? Right? Just recently read an article on LinkedIn, you know, where a CEO talked about how their law firm was banning generative AI and was wearing it like a badge of honor. Guess what? Business leaders banning generative AI doesn't make you cautious, makes you a dinosaur. We know what happened to dinosaurs, all right? And I think another reason why so many companies, especially medium sized small companies, are still, still have generative AI banned is they were following the leaders early on. Right? Let's just use JP Morgan Chase as an example. Okay. JP Morgan Chase early, right after, you know, ChatGPT came out and we kind of make the argument and pretty much the industry standard that, you know, when Chat GPT came out, it's kind of the, you know, start or restart of this generative AI boom. And at that point when it was brand new, when it was fresh, so many big companies banned chat GPT, right? And then it turned into this game of follow the leaders, but never go back and update your platform policies. Because what you saw is, oh, JP Morgan Chase banned chat GPT. So then you had hundreds of companies in similar industries who looked at JP Morgan and said, oh, we should ban chat gbt. And then they never go back. Well, guess what, y', all, JP Morgan Chase as widely reported that whole time that they banned Chat gbt, they were spending a lot of money fine tuning their own large language models that now employees have access to. But guess what? The hundreds or thousands of companies that were following the leaders in their respective niche weren't going back and updating their generative AI policy on a monthly or quarterly basis. They saw someone ban it, so they said, we're banning it. And then they never look back. Recipe for disaster. All right, let's read. Yeah, I love this. I love this. Brian. Brian said, I remember when I had to fight to get the Internet. Why do you need that? Right? Yeah, we should have to fight to use generative AI. All right, so here's some of the reasons why companies are banning generative AI and I'm going to tell you why. They're all pretty much terrible. So lack of understanding. Companies fear what they don't Know data privacy concerns. They worry about their sensitive information getting leaked. Fear of job losses. I've literally heard from this. Companies say we don't want to ban generative AI because we might have to lay people off. Ethical dilemmas. Companies are unsure how to navigate AI's potential for bias and misuse. Some of these points are very valid, right? Lack of control companies fear. Lack of decision making power to algorithms they don't understand. To the mythical black box of generative AI Cost concerns. Companies think, oh, I need to spend millions of dollars building my own models. No you don't. It's a bad idea for most companies. 99% of companies, you do not need to spend millions of dollars to build your own large language model. Maybe the JP Morgan chases of the world do. All right, Uncertainty over legal implement implications. Companies worry about copyright and IP issues. Valid concern, right? Fear of errors and malfunctions. Companies are concerned about the reliability of AI outputs. All right, so here's reasons why all those reasons aren't valid. They don't matter. Lack of understanding. Hey companies, how about you learn generative AI? How about you don't just fear and ban what you don't understand? How about that? Data security risks. Okay, how about you take the time to learn data security and create guidelines and guardrails on data security just like you've done over the past two decades when it comes to your data and online storage, right? If you're a large company, you have data security privacy in place. Certain generative AI systems have that same level of data security. Y'. All. Can I go on a side tangent? For some reason I don't understand, when I talk to people, they're like, yeah, our company still ban generative AI because of data security. And I say, okay, well what do you use for cloud storage? And they rattle it off. What do you use for email? Rattle it off. And I say, do you have any idea, you know, if this, if this document that is, you know, so, so secure that you can't put it into a large language model with training turned off in Enterprise Edition. But if you're giving that exact same company, let's just say Microsoft copilot. All right, so let's Talk about Microsoft 365 Copilot, the enterprise version, high grade security, some of the most secure software AI software in the entire world. It doesn't make sense if a company says, oh, okay, well you know, we're not going to trust Microsoft 365 copilot generative AI with our data. But you're giving Microsoft your data for cloud storage. You're uploading all that quote unquote sensitive data onto a shared PowerPoint. You're, you're using the email. It is all the same encryption. Do you understand how nonsensical is nonsensical even word. Do you understand how nonsensical that is? That's people's actually reason, actual reasons, companies actual reasoning. Right? Or you can say the same thing with aws. Oh, well, AWS has, has a large language model. Oh, we only feel secure with our data in aws. Okay, why aren't you using their large language model? Oh, you know, we only trust Google with, with, with our data. Okay, but you aren't using Google's large language model. It's already there. Your data is already there. So if you've already gone through your due diligence, if you've already put up your guardrails, your safety, your precaution, trained your employees, and you've been doing this for decades and your data is already in one of the big tech players, your, your Amazon aws, your Google Cloud, your Microsoft Azure, wherever it is, and you're not using that large language model. Recipe for straight up disaster. All right? Potential for misinformation. Hey, if you learn how to use a large language model properly, you're not going to run into misinformation again. This is where I make that comparison to the Internet. Do we trust our employees to use the Internet when they're writing an email? Do we trust them to use the Internet when they're creating a research paper? Do we trust them to use the Internet when they're putting together a pitch for a third party? Absolutely right. Because, you know, oh, I probably shouldn't copy and paste and plagiarize. I probably shouldn't, you know, go to page 19 and use a source that I've never heard of. The same common sense human judgment that we afford to employees using the Internet. We need to deploy that same level of basic human trust and understanding, train everyone and set up your guidelines, etc. But you need to have that exact same level of trust with generative AI. It's like what I keep saying, replace the word Internet with generative AI. All right? Intellectual property issues is another reason why companies don't want to use generative AI. Well, guess what? Big companies like Adobe, Microsoft provide guarantees saying, hey, if you use outputs from our large language models, you are protected. Right? Read the fine print. You know, if you're an enterprise company, enterprise grade large language models, enterprise grade generative AI partnerships and software have that protection in there, but you probably don't know. You're scared of what you don't know. Regulatory compliance, uncertainty over legal implications. Guess what? Hire lawyers. You hire lawyers for everything else. Why wouldn't you now hire lawyers to help you understand those partnerships and understand and potentially litigate if anything comes up? Right. Probably one of the most famous studies when it comes to generative AI and productivity is a study from McKinsey Digital that said up to 70% of, you know, knowledge workers, manual tasks can be automated with generative AI. Are you really going to leave that 70 on the table because you don't understand it? Are you going to leave that 70%? 70% is a huge number, y'. All. That's not something small. That's not something small. And I honestly think that number's off. It's way off. We haven't even talked about agents, Right? That study is, you know, a couple years old. It was updated this past July, if I'm being honest. Once we have agents in the workflow, 85%, probably, probably more. I'm trying to, you know, I'm, I'm, I'm trying to be a little cautious here. Easily 85%. Do you really want to miss out on an 85% productivity boost, which is unheard of, because you don't understand it, because you don't want to hire a lawyer, because you don't want to understand data security. Right. With all that, save time, put your team members on these things to address these things to continually train your new employees. Yeah. Hey, what Woozy said, he said sometimes it's just easier to put your head in the sand. Yeah, put your head in the sand. There's a pack of birds in the desert. I don't know why birds would be in the desert. Where does that saying come from? Put your head in the sand. What animals are in the sand that put their heads in the sand? Anyways, if you're in a pack of animals and you put your head in the sand with this generative AI analogy, as soon as you take your head out, everyone's gone. Everyone's advanced. You're left behind to die. You're extinct. All right? So is anyone feeling this? I'm wondering if you're listening to this. Does this sound like your organization? Is your organization still fighting off generative AI? Maybe you need an example. An example or two, Right? So I'm not going to spend too much time, but the history books have already been written. If we're not learning from our Past. We are asking to not have a future Blockbuster in video streaming versus Netflix. Hey, I probably miss Blockbuster just as much as you. I remember being, you know, eight years old and going there once a week and picking out a movie or video game. Great. Their company didn't make any changes. The writing was on the wall. They said, we're too big. Right? So Blockbuster at its peak had 9, 000 stores, nearly $6 billion in revenue. Within about five years, their revenue was about cut in half. All right, and let's look at Netflix in that same time period. Right? There's the famous story that Blockbuster reportedly had the opportunity to acquire Netflix for $50 million very early on. All right, let's look at Netflix in a similar, similar ish time period and look at their growth. Netflix originally was DVDs. I got DVDs in the mail from Netflix very early on in like, I don't know, 2002 or something like that. Netflix adapted to tech innovation, going from DVDs to streaming. Blockbuster had their VHS's and their DVDs, and that was it. They said, we're too big. We don't need this. The younger, more nimble company adapted quicker and squashed them. Okay, BlackBerry. BlackBerry and a lot of other smartphones versus Apple. All right, BlackBerry had a huge percentage of the market share in the early 2000s and two, even still in 2011, they had $20 billion in revenue. By 2016, they were obsolete, had less than 1% of the market share. Their previous market share was more than 40%. To go from 40% to 1% in about a half decade. That is crippling. Obviously, we know Apple did a little different, right? Early days, Apple doing 20, 20, $4 billion in revenue. Now they're one of the largest companies in the world. In 2020, they're doing 274 billion. One company adapted to technology pushed the envelope. The others didn't, right? The Nokias, the blackberries of the world. Now they're all but obsolete. Last example, I'd hate to pick on Sears, right? You could swap in the name Sears for just about any big retail store. Right before Sears was the world's or, sorry, was the United States largest retailer the turn of the millennium in 2000, $41 billion in revenue. All right, about 17 years later, cut in half, they filed for bankruptcy, Right? Amazon in a similar time frame, went from $5 billion in revenue. So they were the little guy now, obviously hundreds of billions in revenue now for Amazon, right? So what happened? Blockbuster didn't adapt to the Internet, bankrupt got squashed. BlackBerry didn't adapt to new technology. Got squashed. Sears didn't adapt to consumers wanting to shop online. Got squashed. If your company doesn't use generative AI, you will get squashed. Whether it's next week, next month, next year, you are on the clock. Using generative AI isn't a choice. It's not a choice. Say, oh, yeah, we need to be more productive. Yeah, let's. Let's grow, let's scale, let's use this technology. No, it is a necessity. I can guarantee even if you're a giant in your industry, if you're one of the big players, if you're one of the biggest fish in your respective pond, you're gonna run out of oxygen. You're gonna get gobbled up. There's gonna be a younger, hungrier, more agile fish that's gonna gobble up all your food, and pretty soon, you're gonna be starving. You wouldn't ban your employees from the Internet, would you? So why would you ban generative AI at your company? Don't do it. Don't do it. All right, as we wrap up today's show, let me just say this again. I can't say it loudly enough. And sorry if my. My audio's trailing off a little bit here. If you ban generative AI, your company will fail, whether it's now or later. There's no getting around it. It's not. Using generative AI isn't. Isn't being innovative. It's not anymore. Two or three years ago, it was. Using generative AI is a necessity. Now, you wouldn't ban your employees from using the Internet. So don't ban your employees from using generative. Generative AI. Use it the right way. Learn it, practice it. End of story. I hope this was helpful, y'. All. If so, please consider. If you're listening on the podcast, please leave us a rating. Please share this with your friends. If you're listening on LinkedIn. Sometimes it takes 5, 10, 15 hours to plan one show. It takes you 5, 10, 15 seconds to share this. Tag a friend, repost it on your social network. People need to know if your company is not using generative AI. Reach out to us. We work with companies and teach them how to use generative AI. You have a resource here in everyday AI. So go to your everydayai.com. sign up for that free daily newsletter. Please use generative AI. Don't become extinct. Please join us tomorrow and every day for more everyday AI. Thanks, y'. All.

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