The Prof G Pod with Scott Galloway - What Is America’s Brand? How AI Is Changing Work, and How Scott Records from Anywhere

Episode Date: April 2, 2025

Scott shares his thoughts on how America is perceived around the world and whether the U.S. is still seen as a reliable global partner. He also weighs in on the future of the market research industry�...��and whether AI will make analysts obsolete. Then, in our Reddit Hotline segment, Scott opens up about the people who influence him, what he’s curious to learn more about, and the gear he uses to podcast on the go. Want to be featured in a future episode? Send a voice recording to officehours@profgmedia.com, or drop your question in the r/ScottGalloway subreddit. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Starting point is 00:01:38 The dark side of those gleaming headlights. That's this week on Explain It To Me. Listen every Sunday morning, wherever you get your podcasts. Welcome to Office Hours with ProfG. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind. Today, we have two great listener questions lined up.
Starting point is 00:02:00 And then after the break, we're continuing our new segment, the Reddit Hotline, where we pull questions straight from Reddit. If you'd like to submit a question for next time, you can send a voice recording to officehours at propgmedia.com.
Starting point is 00:02:11 Again, that's officehours at propgmedia.com. Or if you prefer to ask on Reddit, post your question on the Scott Galloway subreddit. Jesus Christ, that's something I never thought I would say, Scott Galloway subreddit. And we just might feature it in our next episode. What a thrill. Let's bust right into it.
Starting point is 00:02:28 First question, I have not heard or seen these questions. Hi, Scott. Patrick here in South Africa. I am a pro-capitalist, pro-democracy, pro-Western kind of guy. And I wondered if you had any thoughts on Brand USA, given what has happened between Trump and Vladimir Zelensky in the Oval Office. As someone who has looked to the West with admiration, I am concerned about whether or not the USA is indeed a fair weather friend and what damage is being done to brand USA. Your thoughts would be greatly appreciated.
Starting point is 00:03:09 Thanks Scott for all the great work you do. Thanks for the question. And I'm an enormous fan of South Africa. I've been to Cape Town a few times. Obviously Safari is sort of a singular experience. I actually enjoy spending more time in the cities than I do Safari. It's like two or three days of, look at that lion, look at that zebra. It's great. A couple days, that's fine.
Starting point is 00:03:29 And then I start doing the afternoon drive and everyone gets angry at me because I'm not going on both drives for this magical experience. But anyways, I absolutely adore Cape Town. If I was a younger man, there's a lot of shit I would do if I were a younger man. But one thing I might consider doing is if I could figure out a way to make sort of a Western salary and live in Cape Town. I just thought in terms of quality of life, it was seemed just like a fantastic place to live. So just a little bit of data.
Starting point is 00:03:54 According to NBC, the part of Trump's presidency that Americans disapprove of most is his handling of the war in Ukraine. Also more than half of Americans believe that Trump is too closely aligned with Russia, including more than a quarter of Republicans. Since the beginning of Trump's term, foreign opinions of the US have plummeted. Get this, just 27% of Canadians now see the US as an enemy country. A majority of Americans still see Canada as an ally. Anyways, across the EU, the most common answer to who is the US to the EU is a necessary
Starting point is 00:04:25 partner over an ally, a rival, and an adversary in every European country. They're seen as sort of basically become more from an ally to a necessary evil. Look, first off, let's back up. What is a brand? A brand is a promise, uh, more than it is the actual performance. And that is before you buy a car, before you attend a university, I'm about to do a college tour with my son.
Starting point is 00:04:48 And he listed the universities he is interested in seeing. And it came down to things like, it looks like fun, or I like the logo, or the website is cool. Basically, he has no idea and he's facing, he's basically gonna make a decision, which might be kind of a quarter of a million dollar decision when you look at how much it's going to cost his parents to send them to four years to one of these universities.
Starting point is 00:05:10 So he's going to make a quarter of a million dollar decision with 90 plus points of gross margin, meaning that the majority of that money will go to the bottom line for whatever institution he ends up at based on brand. I mean, Hilge will do maybe a one or a two hour tour of the university, but it's basically essentially the promise, the branding, the messaging, the reputation of the university that will dictate these enormous purchases. Now bring that back to a country.
Starting point is 00:05:35 There are millions of decisions made every day around trade partners, who you're going to do business with, where your kids want to go. If they're incredibly talented and they can go anywhere, where do they want to go to apply their exceptional human capital? What treaties do we enter? Will we let a military base be constructed on our own territory? Do we like their media? Will we not cooperate with bad actors that want to hurt them?
Starting point is 00:05:57 Will we not launder money for terrorist-oriented? There are millions of decisions every day, either pro or against certain countries. And here's the brand impression of the United States. We're enormous. We're enormously wealthy and successful. We make a lot of mistakes, but our heart is in the right place. We are always seen, loosely speaking,
Starting point is 00:06:19 as the good guys for the majority of powerful nations and economic powers around the world. And we have reaped enormous benefit. People wanna buy our cars. People wanna consume our superhero movies. People wanna send their best and brightest to our universities. People wanna cooperate with us.
Starting point is 00:06:33 The brand, America, is one of the most beneficial, invisible, powerful aircraft carrier squadrons ever manifested by an organization anywhere. The US brand is staggeringly powerful and has produced all sorts of margin and ancillary benefits for 200 years for the United States. And that brand has fallen further, faster than any brand in history over the last two months. We are now seeing, what is the US brand right now?
Starting point is 00:07:03 Surrender to Putin with a mix of measles. What is our brand right now? You can't trust us. We're not consistent. Tariffs on, tariffs off. I think the US brand has fallen further faster than any brand of this size and this depth in history. Thanks for the question. Question number two. Hey Scott, I hope you're doing well. I've been following you in the podcast for a few years now. Thanks for all that you do, especially with regard to helping out young men. Anyway, my question today is about the value of market research in the era of AI. Given that you sold your company to Gartner, which is one of the largest tech research firms in the world, I'm curious about your perspective on this industry.
Starting point is 00:07:43 I'm a 34-year-old principal analyst at a large market research firm. And I'm concerned that the influence of these firms is actually declining as companies are increasingly using genitive AI to get insights into potential markets. What's your take on the value of market research? Will it have a place in the future? And if you see it declining, where would you advise someone
Starting point is 00:08:02 with market research experience to explore as a next career step? Thank you. Uh, that's an interesting question, but rather than talking about market research, I'd like to turn this back to me. Let's talk about me. So my first firm, when I was 26, I started a company called profit market research. And basically we helped big brands figure out their internet strategy and manage their brand as assets.
Starting point is 00:08:23 Like a hedge fund manager would manage stocks and portfolio. And I really enjoyed it. It was fantastic learning, incredibly taxing, personally, a lot of travel, a lot of golf and dinners with clients, things like that. And I sold the firm for my stake, at least I sold, I think, for a valuation of 33 million, which felt like a lot of money at the time. but the Dobb-Bomb implosion and the divorce took care of most of that. And then I started a company called L2, which was a strategy firm that you referenced
Starting point is 00:08:52 that I sold to Gartner. I got that one right, went to a recurring revenue model, basically we'd collect a shit ton of data and then meet with a brand on a regular basis and give them our insights around what we think they should do with their digital footprint. And we'd charge a Nike half a million a year and a smaller brand like a Rolex, a hundred grand a year,
Starting point is 00:09:08 down to 20 million in revenue sold for $160 million and it was acquired by Gardner. Let me be clear, nice group of people. They've grown the shareholder value dramatically. They're clearly doing something right. Everything they did made no fucking sense to me. When we were acquired, it was like that Seinfeld episode where George Costanza decides to do the opposite of every instinct and it ends up in life, his life starts going much better. Every decision they made post-acquisition is exactly the decision I would not have made.
Starting point is 00:09:36 I was such a fish out of water. I was literally a tuna on the deck of a fishing boat, flapping around trying to figure out how the fuck did I end up here? How do I get off of this boat and back into the water? I was such a cultural misfit. And again, I don't think it's them. I don't think it's me. I just think it is.
Starting point is 00:09:57 This is a firm that basically figured out a way to kind of industrialize and institutionalize what I would call good, not great research and then sell it to the unit, you know, the North Oklahoma state bank, whereas we were doing kind of more bespoke, I would argue, insightful research for brands like PNG and Nike. But look, their companies were several billion dollars
Starting point is 00:10:16 and L2 was sold to 160 million. So clearly they're doing something right and I'm doing something wrong. Now your question around AI, I do think companies like Gartner and research companies are going to be able to do a lot more with a lot less. And this is what I think the honest all hands would be. And that is I've got great news. Our revenues and our EBITDA are going to go up.
Starting point is 00:10:37 I've got even better news. I'm going to need a third of you to do this in the next five years or a third, fewer of you, or maybe two thirds fewer of you. But you don't say that at the all hands. I think AI is effectively to corporations what Ozempic is to the obese. And that is it shuts off the signal that you need to eat more.
Starting point is 00:10:54 And AI in boardrooms, and I know this firsthand, is shutting off the signal that if we're growing our revenues we have to hire more. That's just the automatic signal. Oh, we're growing, we need to hire more. Well, actually, ever since the Meta earnings call three quarters ago that said, hey, we grew revenues 20% and we did it with 22% fewer people,
Starting point is 00:11:12 which took earnings up 70%. Let me get this, I can have the great taste of increased revenues without the calories and increased costs. Well, hold on here. I like the cut at Atchieb. Oh my God, that's out as right as rain. That's disco. And I'm talking like 70s disco, real disco. And so a lot of companies are trying to figure out,
Starting point is 00:11:32 especially information-driven companies, how they use AI to create 80, 90% of the value of an analyst for 10% of the cost. Now, what does that mean? If you're an analyst in a market research firm, quite frankly, you want to be a samurai and AI is your weapon boss. Otherwise, someone's going to come along with more skilled and more dangerous and put you out of business. I've said this a lot, AI is not going to take your job. Somebody who understands AI is going to take your job. So I actually think that Gartner will likely, what do I think a shareholder value there? What will happen? I don't know. That's an interesting one.
Starting point is 00:12:06 Will AI help or hurt them? I would argue for a firm like that, it may help them in the short run. They're going to be able to cut costs. I do not think you want to be an analyst in a market research firm right now. Or let me put it this way, a mediocre one. And by virtue of just probability, the bulk of them are mediocre. An exceptional analyst who really understands AI and knows how to become incredibly productive and put out interesting data.
Starting point is 00:12:30 Like, what do you do? You figure this shit out. I remember when I moved to New York, they hired an assistant for me. I was running an e-commerce incubator called Bram Farm backed by Goldman Sachs, Maron, JP Morgan. Different story. Different story. And they hired an assistant for me.
Starting point is 00:12:44 An assistant came in and said, I just need to tell you that I'm not, I don't use, I don't like computers and I don't use them. I'm like, okay, you can't work here. And to say that you don't understand AI or not interested in it probably means you're not going to be able to work in a market research firm. So this is what you want. You want a second screen at work.
Starting point is 00:12:59 You want your screen, your typical computer screen, and then you want a second screen that has nothing but AI on it, that has mid-journey, that has anthropic, that has chat GPT, and a bunch of the other cats and dogs. And every time you do a task, you want to turn to your second screen and think, how can my second screen help my first screen? What additional insight, data, research, ideas, really get good at prompting, and before you know it,
Starting point is 00:13:22 your head's gonna spin around all the different shit you can do. Turn this into a chart. What is a different way to frame this? What types of visuals might better display this information? What additional data, parables, historical, anthropological evidence can you do to support the following argument that I'm making in the above two paragraphs, right? I just, just so incredibly powerful. But your job and you sound, you know, you are young, you're 34,
Starting point is 00:13:45 you need to be a weapon. Oh, let's lay off the guy who really understands AI. Says no firm ever right now, you wanna be that guy. In sum, let me finish where I started, AI's not gonna take your job, somebody who understands AI is gonna take your job. We have one quick break and when we're back, we're diving into the depths of Reddit.
Starting point is 00:14:05 The bowels of Reddit! We're about to do a colonoscopy on Reddit and I promise to do what I always ask my colonoscopy doctor to do before I go under and I think it's fucking hilarious to say, will you run your fingers through your hair when you're invading me? And they always think that's really funny and then I'm out. By the way, that drug, what's it called, Propanopal, that they give you for the colonoscopy, that shit is money. Wow. Wow. You are sleeping like a corpse there.
Starting point is 00:14:28 We'll be back for our questions from Reddit. for texting and stuff. And if you're not getting rewards like extra data and dollars off with your mobile plan, you're not with Fizz. Switch today. Conditions apply. Details at fizz.ca. Last week, we at Today Explained brought you an episode titled The Joe Rogan of the Left. The Joe Rogan of the Left was in quotations.
Starting point is 00:14:58 It was mostly about a guy named Hasan Piker, who some say is the Joe Rogan of the Left. But enough about Joe. We made an episode about Husson because the Democrats are really courting this dude. So Husson Piker is really the only major prominent leftist on Twitch, at least the only one who talks about politics all day.
Starting point is 00:15:18 What's going on everybody? I hope everyone's having a fantastic evening, afternoon, pre-noon, no matter where you are. They want his cosign, they want his endorsement because he's young and he reaches millions of young people streaming on YouTube, TikTok, and especially Twitch. But last week he was streaming us. Yeah, I was listening on stream and you guys were like,
Starting point is 00:15:36 hey, you should come on the show if you're listening. And I was like, oops, caught. You're a listener. Yeah, oh yeah, I am, yeah. Thank you for listening. Head over to the Today Explained feed to hear Hassan Piker explain himself. So we want to introduce you to another show from our network and your next favorite money podcast. For ours, of course. Net Worth and Chill host Vivian Two as a former Wall Street trader turned finance expert and entrepreneur.
Starting point is 00:16:05 She shares common financial struggles and gives actionable tips and advice on how to make the most of your money. Past guests include Nicole Yoder, a leading fertility doctor who breaks down the complex world of reproductive medicine and the financial cost of those treatments, and divorce attorney Jackie Combs who talks about love and divorce and why everyone should have a prenup. Episodes of Net Worth and Chill are released every Wednesday. Listen, wherever you get your podcasts or watch full episodes on YouTube. By the way, I absolutely love them too. I think she does a great job. Our first question comes from DebtItAll777 and they ask, hi Scott, what are the two things you've changed your mind
Starting point is 00:16:50 about in the last few years and who are the people who most influence you? So I would say the kind of two profound changes in my life or I feel as if I found a little bit more of my purpose. I think I used to say my purpose was to create economic security for others. So I'm looking at things or look through things through a professional lens and thought, okay,
Starting point is 00:17:12 I've always been very focused on economic security and I thought, okay, now I want to provide economic security for other people. That's changed. I think my, what I find my purpose now is, is I'm trying to raise two good men. And by the way, sometimes I'm not very good at it. I'm still struggling with it. I find parenting, I find almost anything I've ever focused on,
Starting point is 00:17:33 I can usually get pretty good at. I don't know if I'm any good at this parenting thing. I know I'm not bad at it, but I don't know if I'm good at it, but I've decided my purpose is to raise loving patriotic men. And I don't know if I would have said that a few years ago, that that is my purpose, if you will. The second thing is, and again, everything for me is kind of, it's very crass, but I'm very economically driven.
Starting point is 00:17:56 I've decided every year that anything above my current wealth, I'm going to give away or spend. So I'm spending a lot more money and I'm giving away a lot more. And I know that may sound like virtue signaling and it is, but I'm going to give away or spend. So I'm spending a lot more money and I'm giving away a lot more. And I know that may sound like virtue signaling and it is, but I'm trying to really focus on doing a lot with loved ones, um, getting more involved in trying to plant, you know, the trees, the shade of which I want to sit under. And I'm very focused. I feel like for the first time in a while, I have purpose.
Starting point is 00:18:22 My purpose is, you know, being a relatively good father and that gives me some comfort because I think I was sort of wandering around, okay, what is the point here once you get to a certain status of economic security and the people who most influence me. You know, I get a lot of influence from the young people I work with. I find them really inspiring, really intelligent. I like the way they look at the world and I spend a lot of time with them. So I think they inform a lot of my view and kind of keep me, keep my perspective a little fresher than it would be otherwise. So I get a lot of inspiration, you know, from the kids in the firm.
Starting point is 00:18:57 I think of them as my muses and there's a lot of great, um, there's a lot of great influences out there. A lot of great podcasters, my cohost at Pivot Cara, I get a lot of great influences out there, a lot of great podcasters, my co-host. At Pivot Cara, I get a lot of cues from her on parenting. I think she's a wonderful parent. I really like Sam Harris. I get a lot of insight from him. A lot of things I hold onto.
Starting point is 00:19:17 If you have economic security and people who love you, you have an obligation to speak out. He said that and it really sort of struck me. There's a lot of wonderful role models out there, but anyways, the two things I think have changed the most I'm focusing on, or really focused on the reward I get from being a father and trying to catch up in terms of adding value to,
Starting point is 00:19:40 I saw a chart that just struck me and it's such a nice thing that I try to remember and that is, there's a chart tracking how much time people are spending helping other people they will never meet and it's at an all time high. And I thought to myself, I'm not high enough on that chart. I need to get a little bit more focused on helping other people
Starting point is 00:20:00 even if there's no reciprocal benefit. Anyways, kind of a hallmark answer, but anyways, I think it's mostly true. Is that true? Anyways, next question. From 1.6960 reads, Scott, what is a topic you'd like to learn more about? I've said that in my next life,
Starting point is 00:20:20 I'm coming back as a Navy SEAL, a Broadway dancer, or an evolutionary anthropologist. I've always regretted not serving my country. Um, but that's how it'd be fun. My dad wanted me to go to Annapolis and took me for a tour there. And then I found out that back then it was all men, that you weren't allowed to leave the campus the first year. And then I made the mistake of going to Hillgard Avenue, which is where all the stories are at UCLA and was like a fucking Cinemax movie. And I said, no, I'm going to UCLA. Um. But I've always regretted not in some way serving. I'd love to be a Broadway dancer.
Starting point is 00:20:48 I just admire people who can dance. I cannot, and I'm just so enthralled and enamored. My first girlfriend, my first obsession when I moved to New York was a Broadway dancer, Michelle Potter. She was in the play Chicago, and she came out, she's the first person on stage stage and the way the dancers move, I was just so starstruck and crazy in love with her.
Starting point is 00:21:09 She did not reciprocate my affection. She was not nearly as in love with me as I was with her. I think she's back in Kansas teaching dance class. Anyways, Michelle, I hope you're doing well. Nice person too. Anyways, but more than anything, I'd like to come back as evolutionary anthropologist. I'm just fascinated by our lizard brain or amygdala,
Starting point is 00:21:28 whatever it is, our instincts that create the behaviors or motivate us or shape what we do and who we are every day. I find it fascinating. If you want to believe in nature over nurture, just have two kids. I mean, we just haven't treated our two sons that differently and they are absolutely a different species. So I'm fascinated by what happened thousands of years ago
Starting point is 00:21:52 to us and how it impacts the way we respond to things. I'd also be very interested in learning more about adolescent psychology. I'm trying to coach young men and understand more about it. I feel as if to be really thoughtful about it, you want to understand kind of what they're going through. And I don't feel as if I know about it to be as helpful as I could be with some of the young men
Starting point is 00:22:14 I talk to who are clearly struggling. So I'd like to learn more about evolutionary anthropology and adolescent psychology. Thanks for the question. And lastly, D Ryan, 7575 asks, what's your podcast recording setup while traveling? Huh, it's an interesting question. So I have one of our best hires
Starting point is 00:22:40 is a gentleman named Drew Burrows who's our technical director. And Drew will, when I go on a long trip sometimes, join me and just follow me around and make sure that we're totally set up. And he sets up all the studios. I have exact replicas of my studio in my London, New York, and Florida homes.
Starting point is 00:22:57 If that sounds privileged, it is. But what he also does for me is he puts together a travel kit, and it basically looks like kind of a Dopp kit for, you know, an aging self-conscious, you know, prima donna, all of those things. So if imagine a large toiletry kit and in it, it has a mic, a bunch of cords and a really good headset, and you plug it into your computer, bring up Riverside and boom,
Starting point is 00:23:24 you're ready to go. And then I test shots, test lighting, work with true because I'm usually in some hotel somewhere and it's really fit my lifestyle. Now here's the problem. If you look at the churn and podcasting, if you were to look at the hundred podcasts and the 50 new entrants and the 50 that dropped out and who will likely be the winners and losers over the next 24 months. I think it comes down to one word, video. Stephen Bartlett, who's sort of a role model of mine,
Starting point is 00:23:50 despite the fact he's 30 years younger than me, the first time, literally the first day I was in London, two and a half years ago, I went on his podcast and I walked into a studio and he spends all his money, puts it all back into production value. It's basically a TV show posing as a podcast. He has these cameras, which system, Austin at South By and he had recreated a studio
Starting point is 00:24:13 and there must've been 16 cameras and three cameramen and people editing real time and producing photos as a gift from me when I left. He's got the strongest video game. And if you look at what's happened over the last couple of years, essentially Spotify and Apple have seeded ground in the podcasting world to YouTube.
Starting point is 00:24:29 People are listening to more podcasts on YouTube in terms of time, listenership in terms of time, than Spotify or Apple. And it's based on how good your YouTube game is and your ability to optimize. And Steven was showing me how they optimize for guests and test titles and thumbnails. I mean, they're just, and we're not that. And unfortunately,
Starting point is 00:24:49 my desire to kind of optimize for my lifestyle, which includes having a mobile kit is probably not where the industry is headed. I think you're going to see, I've predicted that Steven's going to overtake Rogan as the biggest podcaster in the world because of his video game. So my Dopp kit is just a setup. It's just a Shure, I believe, mic, some cords, a stand. Maybe we'll publish on Reddit our exact setup and Riverside.
Starting point is 00:25:16 And then the key is I have a very talented individual who helps me figure out the lighting. And then just like writing a book, the kind of the magic in podcasting similar to a book is in the edit. And that is our producer, Jennifer Sanchez, will spend a lot of time trying to make me sound smarter by adding in sound effects or more importantly,
Starting point is 00:25:34 not what's in the podcast, but what she decides to take out. I think the majority of magic happens in the edit, but my mobile kit is essentially a fancy toiletry kit with a few autumns, but I wonder if those days are coming to an end and the new kind of kings and queens of podcasting are going to have serious production values. Appreciate the question. That's all for this episode. If you'd like to submit a question, please email a voice recording to officehours at prof2media.com. Again, that's officehours at prof2media.com. Again, that's officehoursatpropgmedia.com. Or, if you prefer to ask Reddit, just post your question on the Scott Galloway subreddit, and we just
Starting point is 00:26:09 might feature it in our next Reddit hotline segment. This episode was produced by Jennifer Sanchez. Our intern is Dan Shalon. Drew Burrows is our technical director. Thank you for listening to the ProppG pod from the Vox Media Podcast Network. We will catch you on Saturday for No Mercy No Mouse as read by George Hahn. And please follow our ProppG Markets pod wherever you get your pods for new episodes every Monday and Thursday.

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