Everyday AI Podcast – An AI and ChatGPT Podcast - EP 241: Want to ban AI? Be prepared to shut down.

Episode Date: April 2, 2024

Is your company banning AI? If so, they should prepare to shut down. When ChatGPT started the GenAI wave about 18 months ago, so many companies, enterprises, and universities made brash decisions. Instead of understanding it and using it to grow, they banned it. Here's why that's wrong.Newsletter: Sign up for our free daily newsletterMore on this Episode: Episode PageLearn more in today's newsletterJoin the discussion: Ask Jordan questions on AIRelated Episodes:Ep 197: 5 Simple Steps to Start Using GenAI at Your Business TodayEp 200: 200 Facts, Stats, and Hot Takes About GenAI – Celebrating 200 EpisodesUpcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: [e-mail] with Jordan on LinkedInTimestamps:02:30 Daily AI news07:40 Banning AI? Company will fail.11:18 Banning generative AI is like banning the Internet.14:53 Companies followed JPMorgan in banning generative AI.18:12 Need to embrace generative AI, prioritize security.21:28 Trust employees with internet, extend trust to AI.24:23 85% boost in productivity, embrace data security.30:51 Industry giants will be overtaken by younger competitors.Topics Covered in This Episode:1. Consequences of Banning Generative AI2. Importance of Adapting to New Technologies3. Generative AI and Data Security4. AI Legal Implications and Regulatory Compliance5. Productivity Benefits and Risks of AIKeywords:Everyday AI, consequences of banning generative AI, failure of companies, industry concerns, sensitive data concerns, innovation, Blockbuster, Blackberry, Sears, technological changes, AI implementation, AI strategy, fear of generative AI, embrace generative AI, data security measures, cloud storage, email, misinformation, intellectual property issues, legal implications, regulatory compliance, productivity benefits, adaptation, VHS and DVD companies, online shopping, bankruptcy, Cisco Data Privacy Benchmark Study, restriction on generative AI, ChatGPT.Send Everyday AI and Jordan a text message. (We can't reply back unless you leave contact info) Start Here ▶️Not sure where to start when it comes to AI? Start with our Start Here Series. You can listen to the first drop -- Episode 691 -- or get free access to our Inner Cricle community and all episodes: StartHereSeries.com Also, here's a link to the entire series on a Spotify playlist. 

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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.

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 a 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 everyday AI.com to sign up for the free daily newsletter.

We're going to try to keep today's episode kind of short, but the newsletter is going to contain so much important information, y'all. If you are working at a company that is still banning generative AI top to bottom, we need to listen up to. it. Before it's 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, we're 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 UK and the U.S. have signed a landmark deal on AICQ evaluation. All right, so the UK and the U.S. 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 U.S. established AI safety institutes to assess open and close source. AI systems. So despite the intense competition among major AI chatbots like ChatGBTGBT, Gemini, Claude, etc., U.S.-based firms are still cooperating on the concept of regulation. So we'll see how that actually plays out, especially here in the U.S. All right. Next piece of AI news. We have kind of a double double announcement here from ChatGPT. So OpenAI has made ChatGPT 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 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 Open AI's most powerful model, GPT4, you still need, at least if you want to access it via chat GPT, 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 AI model realm. All right. So Apple has unveiled a groundbreaking AI model named Realm that apparently surpasses GBT4 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 parsings. 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, 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 WWBC, 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 last few weeks after they announced their MM1 model in March via research paper. All right. So real quick, the difference. Realm stands for reference resolution as a language model, and it's more focused on performing

task 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 MM1 is more of a multimodal AI model that will likely integrate with various modes of communications such as text, voice, images, and processing information. All right. That's a mouthful.

That's a lot. All right. So let's get to the good stuff. And as always, there's way more news. and more info on that at your everyday AI.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 live stream. 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, 7.30 a.m. Central same of the time, whether you're joining us on LinkedIn or YouTube. It doesn't matter. But how hot should we take it?

Throw a, throw a flame emoji. Should we go one, two, or three for our live audience? But thanks for joining us, Tara and Megan and Juan from Chicago, from Randy 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.

Caroline says we should just go hot. That's Michael. I can't even count all the emojis joining us from YouTube. Tara says burn it down. Hey, Michael, Michael Forgey, former 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 one flame emoji?

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 matter. If you are of the mindset, okay, so if you're a business leader out there, if you are making decisions on AI implementation, on AI strategy, you are still pushing it off, and you still have a top to bottom

company band. You're going to 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 sears of your industry, right? Those three companies are just examples that didn't innovate. They didn't adapt to today's or, you know, yesterdays 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 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 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 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. It's a lot, right? In 27% generative AI in general is not permitted. 27% of companies. It's so baffling, I can't even speak the words.

All 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 a dramatic 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 in 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 exact thing can be said for generative 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 emojis.

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So here's why so many companies are banning generative AI. There's a lot. There are. So I've heard a lot of personal stories. You know, I have a friend that works in FinTech who just texted me and 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. It 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 J.P. Morgan Chase as an example. Okay. J.P. Morgan Chase early right after, you know, chat GPT 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 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

policies. Because what you saw is, oh, J.P. Morgan Chase banned chat GPT. So then you had hundreds of companies in similar industries who looked at J.P. Morgan and said, oh, we should ban chat GPT. And then they never go back. Well, guess what, y'all? J.P. Morgan Chase, as widely reported, that whole time that they banned chat GPT,

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 a 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.

That's a bad idea for most companies. 99% of companies you do not need to spend millions of dollars to build your own large in this model. Maybe the JPMorgan chases of the world do. All right. Uncertainty over legal implications. Companies worry about copyright and IP issues. Valid concern, right?

Fear of errors in 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 much 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 in 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? 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 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 co-pilot, all right. So let's talk about Microsoft 365 co-pilot, the enterprise version, high-grade security, some of the most secure software, AI software in the industry. 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 using the email. It is all the same encryption. 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 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 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 Amazon AWS, your Google Cloud, your Microsoft Azure, wherever it is. And you're not using that large language model, a 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 pace 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.

You need to train everyone and set up your guidelines, et cetera. 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 Genitive AI.

Well, guess what? 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 a couple years old. It was updated this past July. If I'm being honest, once we have agents in the workflow, 85%. Probably more. I'm trying to, you know, 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 saved 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, does anyone feel in this? I'm wondering, if you're listening to this, does this sound like your organization?

Is your organization still fighting off generally? 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 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 VHSs 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 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 $24 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 Nokia's, 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. 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. And 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, we're going to run out of oxygen. You're going to get gobbled up. There's going to be a younger, hungrier, more agile fish that's going to gobble up all your food. And pretty soon, you're going to 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 audio is 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 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 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 to on the podcast, please leave us a rating. Please share this with your friends. If you're listening on LinkedIn, sometimes it takes five, 10, 15 hours to play in one show. It takes you five, 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 Genitive AI. Don't become extinct.

Please join us tomorrow and every day. For more Everyday AI. Thanks y'all. Meet Firefly AI Assistant. Now live in Adobe Firefly, the Allman One Creative AI Studio. Just describe what you want to create in your own words and the assistant handles the rest, orchestrating multi-step workflows across Adobe Creative Cloud apps, including Photoshop, Premiere Express, and more in one conversational interface.

You direct the outcome while the assistant accelerates execution. Stand control with the ability to step in and refine at any time. See it today at firefly.adobie.com. And that's a wrap for today's edition of Everyday AI. Thanks for joining us. If you enjoyed this episode, please subscribe and leave us a rating. It helps keep us going. For a little more AI magic, visit Your EverydayAI.com.

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