Everyday AI Podcast – An AI and ChatGPT Podcast - Ep 691: Generative AI: How it works and why it matters in 2026 more than ever (Start Here Series Vol 1)

Episode Date: January 14, 2026

Have you ever felt overwhelmed by AI? Like…. There’s certain aspects of Artificial intelligence that you barely understand to begin with, yet you’re expected to use it AND it’s changing every... day? I understand where you’re coming from. It’s literally my only job to use, build with and teach AI every day and that’s all I’ve done now for 3 years, and even I find it hard to keep up. But don’t worry. That’s where the ‘Start Here Series’ comes into play. If one of your focuses is better understanding AI in 2026 or if you're an expert looking to double down, this Start Here Series is for you. In our first volume, we're going back to the basics. Generative AI: How it works and why it matters in 2026 more than ever -- An Everyday AI Chat. with Jordan Wilson.Other Start Here Series EpisodesEp 691: Generative AI: How it works and why it matters in 2026 more than ever (Start Here Series Vol 1)(In the future, we'll update with other 'Start Here Series' episodes)Start Here Series Community Sign up: Follow the Start Here Series with free access to our Inner Circle CommunityMore on this Episode: Episode PageJoin the discussion on LinkedIn: Thoughts on this? Join the convo on LinkedIn and connect with other AI leaders.Upcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: info@youreverydayai.comConnect with Jordan on LinkedInTopics Covered in This Episode:Generative AI Basics and 2026 ImpactExplosive Growth of Large Language ModelsAI Adoption Rates in EnterprisesAI Agents and Operating Systems OverviewHistory and Evolution of Artificial IntelligenceTransformer Architecture and Model BreakthroughsHow Large Language Models WorkModern AI Capabilities: Multimodal ToolsQuantifying ROI for Generative AI InvestmentWorkforce Disruption and Future Job TrendsScaling AI: From Pilot to Enterprise-WideUrgency for AI Upskilling and Competitive AdvantageTimestamps:00:00 "Start Here: AI Guide Series"04:10 "Join Our Free Community"09:1Send 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. 

Transcript
Discussion (0)
Starting point is 00:00:00 This is the Everyday AI Show, the Everyday Podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life. Meet Firefly AI Assistant, now live in Adobe Firefly, the All In One Creative AI Studio. Just describe what you want to create and the assistant handles the rest, orchestrating multi-step workflows across Photoshop, Premiere Express, and more in one conversational interface. You direct the outcome. The assistant accelerates execution. Have you ever felt overwhelmed by AI?
Starting point is 00:00:49 Like there's certain aspects of artificial intelligence that you barely understand to begin with, yet you're expected to use it and it's changing every day? I understand where you're coming from. Chances are if you're listening to this, you probably have a full-time job where you're expected to leverage AI, but you haven't had much formal training if, any at all and you definitely don't have extra hours in your day to learn. Oh, and yeah, I mentioned that thing where AI is changing literally every single day. And when I say I understand the challenge, I mean it. I mean, literally, it's my only job to use, to build with and to teach AI every single
Starting point is 00:01:33 day for 10 to 12 hours. And that's all I've been doing for the past three years. And even I find it hard to keep up. But don't worry. that's where this new series comes into play. It's called the Start Here series and whether you're a beginner extremely confused or you're someone that uses AI every single day, yet you're looking to double down. This new series is for you
Starting point is 00:02:00 because one of the most common questions I get asked all the time is where do I start? Or someone saying, hey, I know a lot about large language models but I want to know more about the creative side. Where do I start? To tell the truth, I haven't had a good answer until now. That's why we're kicking off this start here series. So for those keeping up live, right, January is a time when I think most business leaders
Starting point is 00:02:28 are setting new goals or trying to double down on good habits. So I know a lot of you are really trying to put in that extra effort here at the beginning of the year to improve your understanding of AI. So that's why we're going to be releasing probably two of these episodes a week for the next five or so weeks. So not necessarily abandoning our normal daily schedule. If you're an avid listener to the program, don't worry. We're just flexing a little bit here in the beginning of the year to try to help both beginners and advanced users alike get started and also get caught up. So we're going to be going over the basics like generative AI today.
Starting point is 00:03:08 like what the heck is it? To simplifying more advanced techniques like AI agents and explaining, explaining things like the model context protocol or what the hell is a Ralph Wiggum loop, right? So whether it's concepts that we're zooming out and going back in time or things that are happening literally today and helping you put them in perspective, the start here series is going to be for you. So we're going to be going over, you know, from the correct way to launch a successful AI pilot to how to measure ROI to how to read and understand benchmarks and choose which AI system is best for you or your company.
Starting point is 00:03:46 We're going to be tackling it all here in the start here series. You ready? All right. Let's get into it. What's going on, y'all? If you knew here, my name's Jordan Wilson. And everyday AI, it's for you. And we've been doing it for a very long time.
Starting point is 00:04:01 It is an unedited, unscripted daily live stream, podcast and free daily newsletter helping everyday business leaders like you and me, not just keep up, but how we can leverage all the good stuff, make sense of the nonstop updates and get ahead to grow our company in our career. So if that sounds like what you're trying to do, maybe this is episode number one for you. Maybe it's episode 700. It doesn't matter. We have something new and fresh for all of you. Yeah, a new URL to throw out there, ready?
Starting point is 00:04:29 So if you're interested, go to start here series.com. That is start here series.com. If you want to keep up with this particular series, go do that. You're going to get an invite link to sign up for our free community. And you will be inserted directly into the start here series kind of onboarding flow. So as we add to this, there's going to be more and more shows in there, in that space, the dedicated space in our community. So if you want to keep up with all the shows in this series, connect with other leaders. I mean, literally, we have industry leaders in our free community.
Starting point is 00:05:06 right that you can learn from go connect with make sure you go to that website all right now we have that out of the way just to let you know these shows are going to be a little quicker all right this one's you know might be 30 minutes but most of these start here shows are going to be about 20 minutes i want to keep them very fast very factual which you know is going to be a little hard for me all right so without further ado let's get into it let's talk about generative AI the basics how it works in why it matters in 2026 more than ever. So let's start with the pace in the reality. Well, nothing has spread this fast ever.
Starting point is 00:05:48 Nearly 900 million people, the last confirmed was 800 million, but I know the stat. It's nearly 900 million people are using chat GPT weekly. I mean, that's more than the entire population of Europe. And chat GPT, let's talk about an. explosion. It reached 100 million users in its first two months. To get to that same number, the internet took eight years. So if you want to talk about a technology that you can't ignore, think about how commonplace the internet is in our day-to-day lives. You can't do too much
Starting point is 00:06:25 without it, right? Especially if you're a knowledge worker, you can't do too much without it. And just two years after launch, 40% of working age Americans are using generative AI. And the internet took seven years to reach that same level. So the generative AI technology, which is what large language models are kind of under the umbrella on, it is the most explosive growth of any technology ever. And companies are using it. whether you have realized this or not, right? This conversation has changed a whole lot over the past few years.
Starting point is 00:07:09 But nowadays, using AI as table stakes. Like, you have to. You don't have a choice, right? Maybe three years ago, it was a competitive advantage. You know, it was kind of novel, you know, to be using generative AI and large language models back in, you know, 21 or in 2020 when Chachutuete came out. it's not anything special today. You have to be using it today. Right now, about 80% of companies are even deploying AI agents that take actions,
Starting point is 00:07:41 not just answer questions. So not only are 92% of Fortune 500 companies, you know, as an example, using Open AI's technology. That's just one company, right? But 80% of companies are even deploying AI agents. All right. So yes, the space, moves quickly. And yes, we are going to zoom out, but I first just wanted to set the table, so to speak, and let you know where we are, just about, right? And depending on where you're,
Starting point is 00:08:09 you're tuning in from, right? Yeah, we have listeners from all over the world, so thank you for that. But here in the U.S., that's usually the lens I'm talking through. I'm from Chicago. Hey, good to meet you. Right. A lot of you are starting here with this episode. Everyone's using AI here in the U.S. every single company, right? You don't see a company anymore. I haven't met a company in a very long time. That's not using, whether officially or unofficially, right? Yeah, there's the whole shadow AI, you know, in some of those things. But every company is using AI. So it's changed, though. And I think as strange as it is, I think a lot of people still have a very 2022 view of AI, right? Let's just use chat.
Starting point is 00:08:57 because that is the most widely used AI tool in the world, right? Obviously, Microsoft co-pilot, very popular in the enterprise, Google Gemini, Anthropic Clawed, right? Those are what I refer to as the Big Four. So if you ever hear me reference to Big Four, I'm not talking about consulting. I'm talking about those four companies. But now they're not just these friendly chatbots anymore. These AI systems are operating systems in and of themselves. I've been saying this for years.
Starting point is 00:09:29 Companies need to make a decision. You need to move all your operating, your day-to-day operations into a large language model sooner rather than later, right? We'll probably explore that more in a later start here series, the exact process of choosing and setting up an AI operating system. It's not an official term. It's something I think I made it up a couple of years ago and I've been running with it ever since, the AIOS, right?
Starting point is 00:09:52 But in the same way companies, you know, in the 90s or 80s or early 2000s depends. right they gave all their employees computers at some point and they had to make a choice right are we a windows organization are we a mac organization are we a linux organization you have to make the same choice what is your company going to be but now in a few clicks your entire organization's data can be accessed instantly in these AI operating systems right chat chbt they have a teams in an enterprise plan Gemini has a business in an enterprise plan obviously Microsoft 365 co-pilot has an enterprise plan. Claude has an enterprise plan.
Starting point is 00:10:31 These are for teams now, and they bring your data in instantly. And teams can collaborate, right? Seamlessly. So with no knowledge, even right now, right? Here's some stuff, some new stuff, right? Yes, I know this is going to age, right? If you're listening to this in June or July, but, you know, Anthropic just came out with a tool for their desktop program called Claude Co-Work.
Starting point is 00:10:54 So with no knowledge at all, no tech. know-how. You can use a desktop program. Let me say this again. You can use a desktop program using their Opus 4.5 model, one of the most powerful models in the world. It can control your computer. It can access your file system. It can browse the internet in your browser that's logged into everything. Adobe just introduced an entirely new way to create, bringing the power and precision of its creative suite into one conversational experience. Meet Firefly AI assistant. Now live in the Adobe Firefly app, the all-in-one creative AI studio. Powered by Adobe's creative agent, Firefly AI assistant lets you start with your vision,
Starting point is 00:11:42 just describe what you want, and shape the outcome as it takes form with the assistant. The assistant orchestrates multi-step workflows, drawing on 60 plus pro-grade tools across Adobe Creative Cloud apps, including Photoshop, Illustrator, Premier, Lightroom Express, and more to help bring your ideas to life. You can also get started with creative skills, a growing library of pre-built workflows for common creative tasks, like batch editing photos, creating mood boards, portrait retouching, and creating social variations. Every step the assistant takes is visible so you can refine, redirect, or take over at any time. You stay in the driver's seat as the creative director. Adobe Firefly AI assistant now in public beta.
Starting point is 00:12:27 See it today at Firefly.adop.com. A large language model can do that. It's not just a friendly chatbot. That is the work us humans do. It can access my computer. It can access the terminal. It can code. It can access all my files on my local machine.
Starting point is 00:12:47 It can go out and log into my email, log into any system, and access any data that I tell it to. That's where we are now. Today's generative AI is much more than friendly chat thoughts. But let's zoom out to understand. Because I think for whatever reason, people think of AI as a very new technology, which I think is one of the reasons why there's a high distress.
Starting point is 00:13:10 The other reason why is most people don't know how to use it. And you see someone share some, you know, someone puts a screenshot of something from chat, GPT on Facebook or LinkedIn, and someone usually that has no clue what they're doing. And it's an example of a large language model getting something very simple, very raw. FYI, anytime you see that,
Starting point is 00:13:28 I've been doing this for a long time. 99 times out of 100, it is human error. That human has no clue what they're doing, right? But AI is not new. AI has been around in some way, shape, or form for decades, up to 70 years. So the term artificial intelligence was actually coined in the 50s. And we've been kind of chasing this, you know, dream ever since. So there were early systems, the expert systems in the 70s and the 80s, right, used in a lot of different sectors.
Starting point is 00:13:57 I think banking, mortgages were some of the bigger ones, obviously in health care. But even early systems in the 70s were shown to be able to diagnose infections better than most doctors. And we obviously, with the advent of large language models, we have a lot more studies that show that. So what is changed? It's not the ambition, right? It's finally there's the technology has evolved a lot. You know, there are a couple breakthroughs in the 2010s, but obviously the big one that most people are familiar with is kind of the advent and the prolification of. the transformer that has led to chat gbt.
Starting point is 00:14:37 So the biggest thing that's changed is, well, the technology and the compute needed, right? In the same way, how to, you know, access the internet, you know, in the early days, you had to have a computer bigger than a car, right, and connected up to all these cables. And now your cell phone obviously can. So the same thing is true with AI, right? These systems that used to be very slow and very big and very expensive, right? It's not like that anymore. The technology has changed.
Starting point is 00:15:05 It's gotten exponentially faster, more affordable, and more powerful. But probably the biggest breakthrough that led us to where we are today is in 2017. So that's when Google researchers published the very popular research paper, attention is all unique. And it quietly changed the trajectory. Technically not just of the artificial intelligence technology, but I would say of the, the world, right? The other thing I didn't really touch on, artificial intelligence right now, and maybe we'll tackle this in another start here series, it has become, I'd say, probably more important than oil. It's probably become more important than countries,
Starting point is 00:15:51 military, right? Whether you realize it or not, right? Maybe if you come back and listen to the show in 2027 or 2028, you'll be like, okay, this weird guy was right. It is more important, right? That's why you're seeing a lot of geopolitical tensions heightened right now around the technology itself, right? Essentially, you know, there's this thing called AI. There's this thing called AGI or artificial general intelligence. And then there's this thing called ASI artificial superintelligence, right? That's when you start to get into the terminated thing. But we'll tackle this in a later start here, Siri show. But essentially, the first, you know, country or company to develop AGI artificial general intelligence.
Starting point is 00:16:34 That is big, right? Anyways, it started with this paper, and that has kind of changed the course of the world and the business world especially. But that paper essentially introduced the T in GPT, right? Generative preformed transformers. But the T in that paper was introducing the transformer architecture, which is the engine behind almost every single AI model today. And Open AI was kind of the first to run with it, right?
Starting point is 00:17:04 You know, a lot can be said with the current race between Open AI and Google. They're definitely the front runners in the AI race. You know, Claude, Anthropics Claude is right there as well. But Open AI was the first to take this research and really productize it. So they built GBT1 in 2018, GPT2 in 2019, GPT3 in 2020, which is actually when they started releasing it to the public with a lot. a lot of earlier software programs. That's when, you know, myself and my team, we started using it daily in 2020, two years
Starting point is 00:17:38 before ChatGPT came out. But most of the world kind of figured out about this big breakthrough that no one saw coming that originated in the 2017 Google attention is all you need paper. It really came to life in November 2020. That was the chat GPT moment. That is the line in the sand that I think has changed the course of not just the business world, but also the information world. So how the heck do large language models work?
Starting point is 00:18:08 All right. So you're like, artificial intelligence has been around for a long time. Right. And then there's this important thing called the transformer. Well, and then the transformer led to large language models. So here's kind of what they are and how they work. Right. So they predict essentially these large language models have been trained on the history of the internet.
Starting point is 00:18:29 Right. There's a lot of lawsuits that are going to come from that, right? Because people are like, well, what about copyrighted information? Yeah, it's going to play out in the course eventually. But these large language models essentially scrape not just everything on the internet that we use, the open web, but they scrape everything on the closed web, offline data sets, right? Essentially, the entirety of human history and human knowledge has been scraped by these large language models. Then you have very smart humans at these. big companies that then train the models.
Starting point is 00:19:02 And they go through a process. I'm not going to get too dorky. It's called reinforcement learning with human feedback, but they train these models. Right. So they say, hey, when, you know, someone asks a question about, you know, topic A, here's what a good output would be. Here's answer A is good. Answer B is bad, right?
Starting point is 00:19:20 And so they go through this reinforcement learning process to train the models. And these models are trained to be a helpful assistant, essentially with this, their training data. All right. And this is how the earlier models worked. Today's models much more sophisticated. Right now, if you ever hear a term like scaffolding or agentic, right, today's large language models are night and day difference than the large language
Starting point is 00:19:48 models that set off the chat GPT craze, right? Those were kind of just, I call them old school transformers, right? Today's models, they're technically. Still transformers, right? But I call them reasoners, right? A lot of people call them reasoners or logic-based models. So they're much different now. There's a process that they can kind of mimic human logic.
Starting point is 00:20:10 So yes, they are still technically next token prediction machines, but there's essentially a step-by-step problem solving on top of that prediction engine that mimics human logic, right? And you can see it think step by step and go through and use these different tools it has at its disposal. It might run code. It might go, you know, before it responds to you, these models that think now, right? They used to just spit out very quickly in answer, right?
Starting point is 00:20:37 The earlier models, the GBT2, the GVT3 were really bad, right? The GPT35 that launched with, you know, Chad ChbT a little bit better. It was at least coherent and usually accurate, right? But today's models extremely impressive, right? They tackle problems like experienced human. Today's models score better on offline IQ tests than 99% of humans. They are literally in the top 1%. They are at genius level scores taking offline IQ tests that they have not been trained on.
Starting point is 00:21:13 So that's where kind of large language models are today, how they kind of work. So scrape data from data sources, humans train them to be helpful, assistance for users. A user ask a model, a query. The model might just pull that out from its training data or it might decide, hey, I need to use some tools at my disposal. I should probably go fetch something on the web. It seems like the user is asking about something very current. Maybe I should use a data analysis. Maybe I should run some code under the hood to get to this answer. So yes, this kind of this scaffolding or the tools that models use. help it hallucinate less and just provide much more robust and impressive outputs.
Starting point is 00:22:03 So the scale is hard to comprehend, right? We're talking about billions and trillions of parameters. So a parameter is essentially a learned pattern that these models have gone through in their training data. So more parameters just means that there's more patterns that the models can recognize and use. I like to think of it's a connection in its big neural network brain. So GPT3 had 175 billion parameters. GPT4 reportedly had over about almost 2 trillion parameters.
Starting point is 00:22:34 And a lot of today's newer models, we don't know how many, but we've seen reports that there are anywhere from 2 to 4 trillion parameters. So it's just an insane amount of data. And then there's also something called the context window. And even that has exploded. And that's essentially how much a large language model can remember before it starts to forget. Right. And we do in our in our free, you know, prime prompt polished core, the course that you can access in our community, by the way. So you can just go to start here, series.com, sign up for our
Starting point is 00:23:05 community. And you will also get instant access to that free prompt engineering, context engineering course that's been taken by more than 15,000 people. Anyways, a context window is extremely important. And that's another thing that has scaled alongside with models, because the earlier versions, they would forget things almost right away, right? To days, you can work with them sometimes, depending on how you have it set up, you can work with them for hours or days until they start to forget things, right? There's obviously some auto-compaction, you know, these models are starting to work kind of automatically compacting this information.
Starting point is 00:23:44 So it keeps a longer kind of memory going. So generative AI isn't just text anymore. Right. So large language models started as mainly text-based models, but now they're multimodal by default. There's a lot of different kind of techniques, but everything kind of now falls under this generative AI umbrella, right? Where traditional artificial intelligence was more deterministic, right? It was based on more decision trees, right? If else or if this then logic, right? So traditional AI, right, the expert systems in the 80s and used through the 90s, et cetera,
Starting point is 00:24:23 a lot of it was more deterministic, right? It was very rule-based. That's not large language models, right? You know, people say hallucinations or creativity is a feature, not a bug, right? That's with this next token prediction. And what that means is, right, like, if, think, if a little kid goes to touch a stove, what do you say? You say, oh, be careful.
Starting point is 00:24:49 That's hot. Oh, that's hot. Don't touch that. Be careful, right? That's what you would naturally say, right? Humans, I think, very much are like large language models. So when people say, oh, large language models, they can't reason. Well, they kind of can because it's based on the reasoning of millions of humans in theory.
Starting point is 00:25:09 Right. But the same thing can be said for different type of models. On the image side, you have very popular, you know, AI image. image generators as well, you know, three, four years ago, they were very bad. They didn't even look like you couldn't even tell what something was. You know, some of the earlier versions like, you know, Dolly 2 or some of the earlier versions of Mid Journey, today's AI models, you can't tell the difference, right? I've mentioned this before.
Starting point is 00:25:36 I used to do a lot of photography. I've taken more than a million photos. I've owned like, I don't know, eight different DSLRs, you know, professional cameras. I can't tell the difference. And if anyone tells you today, I think maybe three months ago, you could tell the difference. Today, no one can't. Right. So, yes, there's different types of AI.
Starting point is 00:25:56 It's not just text. There's, you know, text to music. That's really good. You know, Suno v5. There's text to video. Great companies out there, runway, their Gen 4,5, Google V031, SORA 2, a lot of Chinese models, right? So it's not just text.
Starting point is 00:26:16 It is. multimodal. These models are multimodal by default. So, you know, text, images, music, soundscapes, sound effects, writing code. It is all over the place. And it works, right? Yeah, maybe you read a bad headline recently that said, you know, 95% of AI pilots failed. They don't. That was marketing. The ROI is true. If you look at real studies, right, that talk to thousands or tens of thousands of business leaders. Almost every single reputable study in the world shows that the ROI return on investment of AI is exponential.
Starting point is 00:26:54 So as an example, the International Data Corporation found that companies get $3.70 back for every $1 invested in generative AI. And top performers are seeing a $10 plus dollar return per dollar invested. A snowflake in ESG Enterprise Strategy Group survey of more than almost 2,000 business leaders. show that 92% of early adopters say their AI investments are already paying for themselves. So yeah, already positive ROI. And then similarly, other studies show that up to 98% of the same companies that have previously invested in AI are looking to increase their investment.
Starting point is 00:27:38 98% are increasing their investment. So it's no longer experimentation like it will. was in 2023. Now it's all about scale. Now it's all about, oh, wait, we can crush our competitors with AI. Unfortunately, it's about reducing headcount. We'll get to that in a little bit. But the returns are there and they are undeniable. And the economics stakes as well are massive. Right. Like I said, never trust small scale studies or studies that have an agenda. But when you talk about does AI work? I mean, look at Anthropics November study.
Starting point is 00:28:16 100,000 real conversations. They found that AI reduces task completion time by 80%. There was a McKinsey Digital study a couple of years ago. Same thing said between 75 to 80% time savings on standard knowledge work tasks. A PWC study of 50,000 workers globally said 92% of daily AI users report productivity gains, right? 92% are reporting productivity gains. And I want to talk
Starting point is 00:28:47 to the other 8% and teach them a couple of things, but these stats are undeniable. These large language models do the tasks that used to, right? I remember tasks I used to do 15 years ago. A lot of researching, right, looking, having 20 tabs
Starting point is 00:29:03 open, you know, reading these PDFs, grabbing information out, personalizing it, synthesizing it, putting it in spreadsheets, maybe then eventually turning those spreadsheets into a PowerPoint, something like that. Those are projects that would take 40, 50, 60, 100 hours. I literally timed this the other day. Takes like 10 minutes now.
Starting point is 00:29:24 One model, one prompt, if you know what you're doing, can do that entire process in 10 minutes. And it's about 99.7% factual if you know what you're doing. Right. Today's models are completely unrecognizable from the chat GPT of 2022. And you might be thinking, wait, if all these AI models are that good, what's happening to jobs, right? Let me just tell you this. If you're brand new to the show, I'm a realist, right?
Starting point is 00:29:56 I'm not someone drinking this AI Kool-Aid and being like, oh, you know, none of us are going to have to work. And we're all going to live, you know, this utopian AI dream. No, I don't think so. I think it might get a little bad, right? And we're already starting to see that. Talk to recent grads. How many recent grads do you know? It's hard to get a job because companies just aren't hiring anymore,
Starting point is 00:30:17 especially the companies that have figured out AI, right? So some stats here. So only 30% of graduates in 2025 secured a job in their field. And that's down from 41% the year before. That is a huge year-over-year drop. An entry-level hiring is down 44% from its peak three years ago. So. entry level hiring going down nearly 50% is catastrophic.
Starting point is 00:30:43 And just the number of graduates not being able to secure a job in their field, that's worrisome as well. Right now, 62% of employers say that candidates should have AI knowledge, but 55% of graduates say their degree programs didn't prepare them. So, yeah, everyone wants AI experience, But unfortunately, a lot of colleges and universities, you know, from 2022 to 2024 or 2025, just banned AI. So it has created, especially in the U.S., kind of a crisis, right? Companies can't find the experience that they need.
Starting point is 00:31:21 So instead, they're just doubling, tripling down their AI investments as these models get more and more smart. Or as these models get smarter and they're like, wait, maybe we don't need all these people. Also, 51% of recent grads are second. guessing their career choice due to AI up from 33% the year prior. That is a huge jump, right? Anyone of you study statistics and you see something like that. This is from a study. I covered this in an earlier episode. It had always been around that like 25 to 30% mark. And then it just skyrocketed to more than 50%. And I do assume probably in three years, that number is going to be more than three fourths. I would assume that the overwhelming majority,
Starting point is 00:32:02 probably three and four college grads are going to be like, what did I just go to school for? Right? Unless you're in something related to AI, it's like, what did I go to school for? Yeah. All right. And companies are betting big on it. So global AI spending on AI has already is expected to hit $2 trillion this year. And that's a 37% jump from 2025.
Starting point is 00:32:30 And Gardner predicts that 40% percent. of enterprise apps will include AI agents by year end. So essentially, everything, sorry, companies and enterprises are spending more and more money on AI in the common software that most companies use, right?
Starting point is 00:32:49 I'll just throw some basic examples. Salesforce is a very, you know, popular CRM, the most popular CRM in the world. And then, you know, click up.
Starting point is 00:33:01 Let's use that as an example. Smaller, company, but they're a pretty big CRM company. You know, you can say the same thing for, you know, HubSpot, right? Those companies, basic software that tens of millions of businesses use, everything's an agent now, right? Everything is being agentified before our very eyes. The very task that humans would do inside of this software, it's all just becoming an agent now.
Starting point is 00:33:28 So as we wrap up here, what does all this mean? All right? So now you know a little bit the history of generative AI, right? AIS not new, but the transformer technology that led to large language models is relatively new. And the adoption of large language models has been unlike anything we've ever seen. And it's not even close. So why does it matter this year more than ever? Well, I've been the crazy guy yelling at you all for many years.
Starting point is 00:34:05 years to not wait any longer, to train your employees, to invest in the future of work, right? Just using AI is not going to do anything. It's not going to do anything for your department. It's not going to do anything for your career. It's not going to do anything for your company. Right. I think a lot of, you know, a lot of enterprises thought like, okay, well, yeah, we'll just buy some co-pilot seats.
Starting point is 00:34:32 We'll buy some, you know, chat, GPT enterprise seats. And, you know, that'll make the board happy. And maybe our people are a little more productive and we'll be able to quietly reduce headcount and everything will be good. It's not like that anymore. Companies that adopted AI early are now three times more likely to see operating profit impact up to 5% than those companies that are still in the experimentation phase. Right. You can't be experimenting anymore, both as individuals, as departments, as organizations. you can't treat this as you know we're going to pilot this AI thing no you have to hit the ground running
Starting point is 00:35:16 you have to hit the ground learning you have to hit the ground experimenting you have to hit the ground measuring you have to hit the ground scoping you have to hit the ground running your own internal benchmarks but you have to hit the ground running as fast as you can right you have to go slow but you have to go fast right you have to be methodical you have to measure you have to know, you have to be able to quantify, but you have to do it as fast as possible. Because the gap between AI fluent workers and AI fluent companies and everyone else is widening every single month,
Starting point is 00:35:54 every single week, every single day. So by companies sitting there and saying, yeah, we're going to do a year-long pilot. You know, we're going to make sure we get this AI thing right. We're going to do a slow rollout. It's not going to work. Right. Even Fortune 500 companies that have that mentality, they're going to get eaten up.
Starting point is 00:36:19 You're already starting to see stories of it. Companies that thought they were too big for AI, right? You saw a lot of companies, FYI, do it about face, right? Some of the consulting companies, you know, now investing billions of dollars. You know, some of the banks said, oh, no, we're large language models, never touching that. Let's laugh at that. No, now they're investing billions of dollars. You can't not play the game.
Starting point is 00:36:45 You don't have a choice. The future of work is generative AI, is large language models. So the window is closing, y'all. And that is why generative AI matters in 2026 more than ever. This is the year to make your move. This is the year to level up. guess what? It starts here with the start here series. All right. Thank you for tuning into the first volume of the start here series. Like I said, future ones are going to be
Starting point is 00:37:20 much, much faster, about 20 to 25 minutes. And make sure, if you're still listening, check the show notes of this episode. So if you're listening on January 15th, right, that's when this show is debuting. Nothing's going to be there. But in the future, we're going to go and update the show notes. So if you're listening on the podcast, as we release new episodes, we will make sure to link them there. But more importantly, just go to starthereSeries.com. There you can sign up for our community for free. You can go follow.
Starting point is 00:37:54 It's going to send you straight to the space that we have set up that's going to have just the Start Here series in there. Nothing else so you can focus. So whether you're hearing this in mid-January, mid-Fambuary, late 20-27, it does. It doesn't matter. It's going to be there. You can get caught up and instantly level up. All right. So here's the final take. AI isn't new, but generative AI's compounding impact is. In today's large language models move faster than anyone can track and they can even outperform humans in blind tests at producing economically viable work and valuable work. So don't think about AI upskilling or AI reskilling. If you do that, you're going to fail.
Starting point is 00:38:37 That is the wrong way to approach AI. You have to unlearn. You have to unlearn good habits and you have to build a solid foundation from scratch. AI first, AI native. You don't get to sprinkle AI on the top. It's not going to work. All right. Thank you for tuning in.
Starting point is 00:38:54 Like I said, please go to start here series.com. If this was helpful, tell someone about it. Please subscribe to the podcast. Share this. If you're listening on social media on LinkedIn, tag someone who needs to hear this. We all need to start somewhere. All right. Don't let the rapid pace of AI confuse you.
Starting point is 00:39:13 Don't let it slow yourself or your company down. That is my job. I work for you. You don't have to spend hours every single day. I do it. I cut it to you straight. All right. So thank you for tuning in.
Starting point is 00:39:25 Hope to see you back 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.
Starting point is 00:39:54 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.adop.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 everyday AI.com and sign up to our daily newsletter so you don't get left behind. Go break some barriers and
Starting point is 00:40:29 we'll see you next time.

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.