90% of you are not ready to compete with AI

basically ai investment okay goes and increases and ai capability keeps on improving and we're seeing that already today companies then need fewer workers they start laying off white collar workers those layoffs keep on happening more and more and those displaced workers now are spending less and they have no job and even the ones that do have jobs they're bracing for impact here so the economy is weakening because like i mentioned right white collar workers while they're about 15% of jobs they make up 60% of the discretionary spend this is where it gets interesting because there's less discretionary spend going on the companies right start to feel it even harder because there's less people spending money with them in an effort to go and increase their profit margins they cut more people and invest further in ai then ai investment increases right as ai capability increases and more workers are laid off which keeps this economic feedback loop going right and there's no natural break here

human intelligence is abundant ai is everywhere and white collar workers now for the first time really ever are seeing their earnings power structurally impaired you can now start to see the economy starting to break right because white collar workers make up around 15% of the economy but they make up around 60% of the discretionary spend well what do you think is gonna happen here right you start laying off all of these knowledge workers right because ai is replacing all these jobs suddenly now all of those folks that have just been laid off can no longer afford to spend on discretionary goods it starts to then shift from good news to bad news this is what founders are telling me on calls right now

it gets into the intelligence premium unwind you know forever human intelligence right has been scarce but now in this new ai age it's everywhere and so then the question is what is defensible in your business first things first right your distribution right when you have a personal brand when you have a content machine when you have a social media machine around you you're able to go and own your distribution and that data is more important than ever right because as you know people are able to go and replicate your website replicate your product replicate your service they can't replicate you right they can't replicate your distribution it's that distribution right that trust that brand that is insanely defensible which is really the reason why you need to be going and building your brand now

let's first talk about the consequences of abundant intelligence what it gets into is that initially you know in 2026 when ai was taking over you have claude co chatgpt ripping it there were all of these layoffs going on across companies and those initial layoffs right the economy actually responded to incredibly positively companies margins started to expand right they were beating their earnings right stocks are rallying and they're setting record setting profits less humans more margins of these companies and they're being rewarded with the highest stock prices they've ever had we're seeing this play out right now salesforce just laid off people block and jack dorsey just laid off 8,500 workers right oracle just laid off like 20,000 people facebook's about to go lay off another 15,000 people and zuckerberg says he's gonna build his own mini ceo ai inside of meta companies right now are being rewarded for laying off their white collar knowledge workers in every way

it says we had overestimated the value of human relationships turns out a lot of what people called relationships was simply friction with a friendly face i talk to you know coaches consultants agencies all the time right and oftentimes when i go and look at their organic content funnels as an example they've got all this unnecessary friction they make you hop on the call with someone to then hop on a call with someone else and they'll lay out a 12 step process basically to go from initial interest right all the way through to a closed deal when you look at it some long process like that oftentimes could just be one or two clicks maximum three stages we live in a time already where an agent can go and understand your entire product menu of your business and based on inbound demand you have for your product or service an agent could be going and curating the best product or service for that individual based on a few qualification questions you don't need a human to do that

leverage is shifting now for me as an example across different projects i've been building this is a project i've been using to go and automate all different parts of our business everything from the end to end functionality from going from content to a call with my team going and automating things like short form clips or automating things as simple as really just different project management because i'm actually able to go and load this up and have a calendar have a kanban board right and essentially go and make sure my entire business is organized but i don't need asana to do this right i can just go and build this myself and this is the crazy day and age we live in that it just took me two seconds to go and whip up my own calendar or kanban board to organize this whole project i didn't need to rely on asana so there goes a $900 a month software bill same with the notion have cut that out being able to snip one at a time the different software bills and rolls around the edges of my company that we just no longer need

anytime that this level of disruption's going on i'm gonna go and take a page out of charlie munger's book right charlie munger is the legend that was warren buffett's business partner for over fifty years he has this concept called inversion and instead of asking how could your business succeed you wanna ask how could my business fail in this example what this article's outlining is one way your business could fail which is that you're not prepared for this right you're not adopting ai you're not thinking about how will your business compete in 2028 when information and intelligence are abundant how does your coaching business succeed how does your consulting business set up for success how does your software business exist anymore when a competitor can go and duplicate your entire infrastructure in ten minutes these are the kind of questions that i think entrepreneurs need to be asked themselves yesterday because whether or not everything here comes true that's not what matters right i think on some given time scale this is what things are gonna start looking like the question is like how quick are we going to be to adopt this stuff and as entrepreneurs how anti fragile are we gonna build our businesses

i was recently watching an interview with jensen huang and about hour twenty into this interview chamath polyhapatia the gentleman who grew facebook from a million to a billion users asked jensen huang how do startups compete in this new paradigm in your mind what do you think for these companies that are building at that application layer what's their moat like how do they differentiate themselves deep specialization i believe that these models they're they're gonna have general general models that are connected into the software company's agentic system many of those models are cloud models and proprietary models but many of those models are specialized sub agents that they've trained on their own right so the call to arms for you for entrepreneurs is look know your vertical that's right know it as deep and as better than everybody else that's right and then wait for these tools because they're catching up to you and now you can imbue it with your knowledge that's right and the sooner you connect your agent with sooner you connect your customers that flywheel is gonna cause your agent to get hyped

what actually needs to happen from my perspective is that all companies need to become intelligence companies and what does that mean well you need to make sure that you go and you have an agent inside of your company that your customers are able to interface with and over the next few months that agent is able to learn ship code improve your business without any human intervention or maybe just a human in the loop to double check what it's pushing is correct i was recently talking to a founder and you know he's got a dashboard that helps different parishes across america and in that dashboard customers are able to go and leave feedback and an agent actually goes and takes that feedback based on you know different bugs that may be happening in the dashboard and is able to then just go and take that and automatically go and fix things this is an example of an intelligence layer and my belief is that every company will just become an intelligence company

this paragraph really changed how i think about my own business okay it says over the past fifty years the us economy built a giant rent extraction layer on top of human limitations things take time patience runs out brand familiarity substitutes for diligence and most people are willing to accept a bad price to avoid more clicks trillions of dollars of enterprise value dependent on those constraints persisting but now agents remove the friction