Embracing AI

Happy, happy, happy Friday. How you doing? Come on in. We've got a long Memorial Day weekend coming today. I'm not going to take a ton of your time today, but I want to talk some AI today.

I actually did the show already. It came out to 22 minutes, so I'm not going to do that. I've got to keep it under 10 minutes, okay? That's what we're going to do.

So hang on for the ride. Here we go. It is the Daily Boost as he mumbles and stumbles into the show. My name is Scott Smith. Good to have you. Thanks for stopping by.

First time, welcome. Come on in. We're going to be a little bit serious today, a little bit different today. Not the storytelling, metaphor, funny thing that I often will do.

Listen, I'm a multifaceted character. Some days you're going to get comedian. Some days you're going to get the philosopher. That's just how it's going to be, okay?

So hang on for the ride today as we go down a little bit of the AI road. And I think it's going to be fun to do it. And the reason we're going to do this is this.

I was a very early adopter in AI about two and a half years ago, actually a little bit longer when I kind of started seeing it, but I actually used it about two and a half years ago for the first time. Maybe like you do today. It was on a browser tab helping with a project. That was about it.

I got into it largely because I knew I couldn't stop it. I just accepted it. This is going to be huge. I said, I need to learn to use it. I need to master this.

I need to get it into my business. I need to help my clients and I need to buy stock. probably energy stock and chip stock. And I did that many years ago.

So the thing is, I saw it coming and that would be my job and what I do. So I'm going to go through a couple of things today that I see now as we've settled in a little bit, it's becoming clear how this is going to impact us in many ways. And even though none of us have the answer yet where it's going to go, I just want to kind of put a little marker out there and get you to pay attention. I'll try not to make it too techy.

I'll stay on the surface level here. We just get to use it. I have my wife using it now. She's like, I went to chat GPT the other day. It helped me write a letter.

I said, good for you. And she says, it also helped me do a recipe. Good for you. I'm like, good little girl. Good start. So here's one of the things that's happening.

The new reality is information, they say, is power. It is. But information is now a commodity. Do you know four years ago, a million tokens on AI cost you 20 bucks?

A token is how they charge you. There's a technical term for it, okay? I'm not going to go into that. Engineers, please don't worry about this. Basically, a token is like you buy a token, you get something back.

A token is the search back and forth. 20 bucks for a million of them four years ago. Now it's far less than a cent. 7,143 times cheaper. Information is becoming a commodity.

Everybody's a smarty pants now. Everybody has the answer. Everybody can get the answer. There's nothing that you can't get answered using some kind of AI.

Is that good or is bad? Well, I think it's kind of convenient. I kind of like it. It makes life a little bit easier. I find I can go deeper and do some cool stuff with it, but it's not the end all.

But it is coming. It is coming. It's commoditizing information. Everybody's going to have it like never before. I love that, by the way. The thing I want to tell you, too, is stop competing with AI.

A lot of you are saying, oh, it can't do what I can do. Yes, it can. If not today, tomorrow. There's nothing it won't be able to do. I think it'll be able to do plumbing someday.

A robot will come to your door and do plumbing or they'll build a robot at the factory. When they give you the pipes for the plumbing, they'll automatically take care of it via an app. When the problem happens, it's coming. I'm just assuming everything can be done by AI because that's what it does.

It's smart. So stop competing against it. Start using it for what it does best. You know, we're, research and drafts. A lot of people start out by helping it write emails.

What I do is I often will get an email from a client who's maybe in a state of mind and I know they're okay and I don't want to go in there and patronize them. I just want to make sure they feel okay. So I will literally take whatever they wrote me, put it into AI and say, they're okay. Just make them feel okay.

And it will draft a letter for me. That's very nice in my own words because I built it to do that. And my client relaxes. It researches, gives you first drafts, coding, design, things like that, content creation.

It does things, just don't compete against it. Just embrace it and go with it. AI first all the time. I use Claude Code. I use Claude Chat. I use Claude Cowork.

It's on my machine all day long. I don't start any project without going into Claude. If I have a new, anything I'm doing new, anything I need a new software for, whatever I need to do, depending on the projects I'm doing, if it doesn't have an AI integration, I don't do it.

Hard stop right there. Next, if information is so cheap, where's the value? Well, judgment is the new work. It's the new value. Because everybody has options now, but most people can't figure out what to do with the options.

Everybody can draft something, but very few people can know what to do with that draft. Everybody can summarize, but few people know what that means. You can print it out all day long, but you don't know what it means.

So judgment is the new key. If you're in the coaching business like I am, the speaking business or maybe the consulting business, I'm a little bit all that.

Coaching is dying fast. Most coaches who are just giving information or asking questions, they're dying quickly. I don't ask a lot of questions. I do not give you a lot of information unless you need it.

If you work with me as a coach, I'm simply going to figure it out for you. I'm going to give you judgment. I'm going to make a decision. I'm going to do the things that you can't figure out how to do because that you can't get that from ChatGPT.

I do group coaching calls. When we're on these calls, they're on ChatTPZ. They're asking questions. They're doing all kinds of things. I know they're doing it.

I can tell they're doing that. I'm not worried about competing because I'm on a different level. I'm a human. Stay human, okay? Your expertise is what really matters and it has to be documented in a file system.

They call them MD files. I'll let you look at what a .MD stands for Markdown. All AI systems use them. All large language models use them. It's taking what you know, your preferences, your expertise, everything documented.

Don't freak out about it. Don't freak out about it. All you have to do is go to whatever you're using, chat or Claude or whatever and say, hey, I need to set up some MD files about me and maybe who my audience is and how I like to work and what my expertise is. Can you guide me through the process?

And it will. And say, great, we've done the process. What do I do with it? And it will. And the next time you go use it, you'll be smarter. It'll do a lot of work for you.

Top of the thing here. I'm going to keep it short today. I promise. Stop selling hours. Nobody cares if it took you six hours to produce something. It doesn't matter anymore.

That's why consultants that charge $300 an hour are going out of business because very few consultants are Well, give me something that I used to pay a lot of money for. They give it to me. I was like, dude, I could have gone to Manus.

I could have gone to Perplexity. I could have gone someplace else. I'd done the same damn thing that I know you just did. And it would have been free.

Part of my subscription. Out of business. It's going away. So stop selling hours. Sell outcomes. That's what I do. I have some people. I had a gentleman just the other day.

He said, Scott, how much do you charge for coaching? I told him $2,000 a month. Minimum three months. That's what it's going to take. So if I do it just for a month, can we get the same result in a month?

I said, yeah. He said, then I can charge you, then I can pay you $2,000. I said, no. You're going to pay me $6,000 even though we take a month to do it.

Same outcome. And you know what? He said, you're right. Because what did I do? I saved him two months of time. That's the new thing. Don't worry about it.

It's all about the outcome now. That's a bad, I'm sorry I gave you that out, that example, but it just happened two days ago. Where you have taste, where you have judgment, where you have discernment, where your expertise lives, the stuff you know, where your wisdom is, use it for that.

I said, don't substitute that. Use what you have and say, hey, this is what I know. Draft me something. Give me a letter. Give me a book, something. Draft it.

Challenge me on what I think I know. See if I do. If you have automated work, repetitive work, get it automated for you. Do it there. Don't use it to do your work for you.

Not going to work. One thing I want to encourage you to do as well, There's two big ones here I want to get in before the end. I'll let you go for the weekend.

First off, stay close to reality. Talk to more people. Get out there and talk to folks. That's my group coaching programs. My operation prevention will launch here very quickly.

It's already starting to grow without me even doing anything because it's humans talking to humans. And yet we're embracing AI. We're embracing all the tech around it, but we're living as humans. Embrace the raw human nature of who we are.

I know it's rough and ugly sometimes, but it is the key to everything and your happiness and AI can't compete against it. And I don't want you to be beat up by AI because it can compete against other things. And if you do that, you're going to lose.

And finally, this is a big one for me because we're always talking about productivity, always talking about having more free time, controlling our output, controlling our capacity, controlling the empty space in our calendar, or always trying to do that stuff. But AI by itself is very additive. A lot of people don't think about that. It's additive in the sense that if you do a prompt, AI is going to give you an answer and it's going to be longer than you think.

And then it's going to say, would you like to explore this and that? And before you know it, you've got a book that you've just written, 80,000 words in half an hour. Yeah, that's cool.

But you know what it does too, is it gives you more opportunity because you can do more, you do do more. So instead of you narrowing down to one or two projects that are really important to you, you now have the ability to start 20 at a time.

A lot of people are doing that. So you've got to kill your darlings. You've got to kill. You've got to shrink. You've got to merge. You've got to remember.

Additive is not the game you want to play. You actually want to minimize what you're doing and use this new reality of AI to help you get there faster and help you do it better. All right. That's all I'm going to give you today on that.

Thanks for indulging me. I was forefront of my mind. I just had a conversation earlier. I wanted to kind of bring this apart. I'll let you know that when you're working with me and any of my groups, we have this in the background.

It's not what we do, but it's a big part of what we do. I think it's very powerful. Thank you. Hey, listen, have a great Memorial Day weekend. I'm going to just disconnect for a couple of days.

I will be here on Monday, but I will be prerecorded.