Developing Grit and Professional Perseverance

Support for the show comes from Northwest Registered Agent. Your business identity is everything that makes your business legitimate and professional. With Northwest Registered Agent, you don't just form a business, you start a complete foundation built for privacy, credibility, and growth. That includes registered agent service, a business address, operating agreement, domain, website, professional email, phone number, and built in privacy. In other words, your home address, personal email, and phone number stay private Don't pay hundreds or thousands of dollars for what you can get from Northwest for free. visit Northwest reggisteredagent. com slash. prorop G free and start using free resources to build something amazing. Get more with Northwest Registered agent at northwestregisteredagent. com slash profg free Here's a question. What if women's healthcare was actually built around women Mount Sinai is proud to answer the call, announcing our new Carolyn Rowan Center for Women's Health and Wellness, the future of womomen's healthcare in New York City, O destination where leading specialists, evidence based medicine, and a whole person approach come together under one roof to support your health and wellness at every stage of life No more fragmented care, no more dead ends, just seamless transformative women's health carere designed around who you are and where you're going We get you And we've got you The Carlyn Rowan Center for Women's Health and Wellness at Mount Sinai We find a way Support for this show comes from Better Help Have you ever had so many tabs open that your computer starts slowing down Life can feel like that too Better Help's twenty twenty six State of stigma repeport found that seventy four percent of Americans believe society still discourages asking for help Thraappy can help you sort through what's taking up space and quietly affecting you. With better help, connect with a licensed therapist online and switch anytime Maybe it's time to close a few tabs Betterhelp d. com slash voxpods to get started Welcome to Office Hours with Propty. This is the part of the show where we answer questions about business, bigech entrepreneurship and whatever else is on your mind. Anyway If you'd like to subm a question for next time, you can send a voice recording to offffice hours of proropjmeda. com. Again, that's offffice hours of propjmeda. com or Post your question on the Scott Galloway sububredreddit, and we just might feature it in our next episode. Plus Now you can call or text us a question at twoz one four seven two three six five six. That's two hundred one fourour, seven, two, three, six, five, six. Let's bust right into it Our first question comes from a listener who emailed us. Hi, Scott. this is Pabolo and I currently live in Boston, Massachusetts. First, thank you for your work you do and for consistently bringing sharp opinions to important topics. I really enjoy the podcast family ac ProfG media I work in AI adoption and consulting and I'm seeing what feels like AI fatigue across organizations. For many employees, AI starting to feel like an annual checklist something they're expected to learn and keep up on top of their actual job At the same time, managers are struggling to measure ROI and justify ongoing AI spending, and adoption often seems concentrating among small groups What's your take? Are expectations for AI outpacing organizations ability to absorb it? And if so, what does that mean for productivity, AI investment and for the broader market and economy over the next few years Thank you again Thanks it's the question. I think it's a question a lot of people are asking, invvestors, CFOs Users. So AI spending is up. That's pretty obvious. Worldwide spending on AI is forecast a total two point six trillion in twenty twenty six, a forty seven percent increase year over year. And total AI spending in twenty twenty five was one point seven six trillion. So as you can see, from about one point eight to two point six For most functions, human labor actually remains more cost effective now how long that lasts will'll be seen as token pricing comes down NVidDia VP of Applied Deep Learning claims that for his team, AI costs more than the employees themselves. The twenty twenty four MIT study found that seventy seven percent of vision based tasks, it is cheaper to employ humans than AI And last month, Microsoft began canceling most of its direct clog code licenses just six months after opening access to it. I wonder how much of that is I'm trying to, I don't know, ship post andthropic in, you know in favor of their own or open AIs LLM. So I think there might be some politics there. Anyways, what we're seeing in the market A survey of six thousand senior business executives found that ninety percent of firms report AI having no impact on productivity over the last three years sixty nine percent of firms actively use AI with higher usage rates at younger, more productive firms. And two thirds of execs regularly use AI, but their average usage is just one and a half hours a week According to Apollo Chief economist Forsten Slock, a friend of the pod, there are no signs of AI boosting profit margins for companies outside of the tax sector yet According to Morgan Stanley reesearch, AI adopters are seeing their cash flow margin expansion now pacing the global average by two ggs. AI tools increased coder productivity on individual files by two hundred and ninety percent, but only uplifted a company codes's product by thirty percent. We have seen an increase in productivity in the U S. economy, which I do think is a function of AI I'm a bear around AI stocks right now. I'm bullish on AI technology. I think the technology will survive And it will I don't to say they live up to the expectations, but be an incredible unlock for productivity I don't think we're going to have the labor apocalypse that's being predicted. And I think a lot of those predictions are just investor relations saying, my technology is so disruptive It's going to create chaos in labor markets, please fund my next my next round at a ridiculous valuation. So I think you're going to see kind of a desert or an era of disappointment around ROI. that will result in a pretty serious drawdown. Not a collapse that we saw in two thousand because these companies are five and ten ing their revenues But at this point it feels almost impossible for their growth and earnings to meet the expectations built into the current valuations. So I think we're about to enter into the ROI phase. So for example, an area where there has been negative ROI is in the design space The number of designers at IBM and tech companies as a percentage of total employees has actually gone up becausecause this sort of human centered Interesting D differentiated design is more important than ever. and AI hasn't proven to be great at visuals and design. rememember that Coca Cola doing the AI commercial and Sora. designing things and you know, SR was shut down At the same time, I think you're going to see a lot of them I don't know, born shit, like supply chain. I was speaking to the CEO Flexboard and So much of their efforts are people just tracking shipments and calling people and saying, what is the status of this and negotiating agreements? solving problems. and it feels like AI speaking to each other or, you know, LLM speaking to each other can probably solve a lot of that. I find that it's the boring stuff that moves the needle So What am I saying here? I don't I think we are entering or leaving the experimental phase and the signaling phase and are moving to the more tangible ROI phase. And I think that is going to involve a substantial drawdown in the valuation of AI stocks, which I believe are at unsustainable valuations right now. Now having said that When people like me all agree that things are overvalued, they usually go up dramatically from there. And then when people throw in the towent and say, Oh, it's a new world and it's different this time. when that's when it crashes. although it is feeling very ninety nine to me. So In some yeah, expectations have outpaced organizations' ability to absorb it. No doubt. You know, I think it's outpaced every single expectation. So Um, you know, does that mean What does that mean for a corporation I think the CFO is about to implement more guardrails rather than the CEO just talking about it more and more to improve their stock price or wallpaper over management's poor decision making. I do think we're entering into quote unquote, the ROI era from the experimentation era which will put pressure on every component or layer of AI. relative to the current valuations, but also expand substantially what I call the adoption layer I think it's to be a very good time to be in the business of helping companies make decisions around where to spend on AI and where' not to spend on AI. Thanks for the question. Question number two comes from Reddit, definition L five one nine six, who says Hi Scott I'm twenty five year old male from London and set up my own sports marketing business at the beginning of this year I have one client who currently I work for in house and I speak to global brands about sponsorship of sports events I want to know what's your opinion on Can Lyons? Is it actually any good for networking and building relationships for younger people who don't have much credibility yet? This year they have a specific Lions sport program. The problem is it costs twenty five hundred euros And I don't have that type of money to invest back into the business yet for relationship building Is it still worth going to Can and trying to meet people whilst out there Well, look, my brother, if you don't have the money you don't have the money. So Um you know, my sense is The market has made that decision for you How many different stages than you and that is Um I'm now in the spending part of my life. I don't go to Can Lions to network I usually get a couple speaking gigs unfortunately I don't have speaking gigs this year. Oh my God, my career is over U I've been cast aside like an old dress. Um So but I go because I love it and that is I do some networking, but I go I ho up at my favorite hotel in the world, the Hotel Du Cap And I start drinking Rose around one PM And then I takek a zodiac into the pallet and I roll up and I was pull up to the Bron side of Facebook or met a beach and walk through like a conquering hero So I If you're twenty five. and don't have the money or it's a stretch. I wouldn't do it. I just think you want to be focused on your business heads down I think there's probably less expensive ways to network and networking functions in London. It is a lot of ad executives. There is a lot of Um content and networking. But the thing about Cam Les is it's pretty damn expensive. Everyone's ends up at the Carlton Hotel drinking eighteen or twenty four euro glasses of wine. A word salad to say, keep your head down And it's not even the economic cost, it's the time cost. I would keep your head down trying to produce great product, great content and find other less expensive local ways to build relationships and wait until you're more comfortable because that twenty thousand five hundred euros is just the start of your expenses in Cann Lions. I mean, it's expensive to get an Airbnb, everything you can't, you know, it's just they jack up the prices. The South of France is expensive So I would keep your head down right now such that you can build your company and be in a more comfortable position to go to something like Cam Lance at some point in the future.. And also investigate if they have scholarships for young. they have something called Young Lions. and maybe that's what you're already talking about where they will subsidize subsidize your trip. Anyways U I hope to see you there, but not this year in maybe five or ten years Thanks for the question We'll be right back after a quick break Support for the show comes from Built. There's no way around it. housing is expensive, rent, mortgage, it doesn't matter which one you're paying. Nobody likes letting go a big chunk of change every month. Built was created to help ease that sting. Buildt started out rewarding members on their rent. That's what they were known for. But now, as of twenty twenty six, it's not just for renters. Build members can now earn points on mortgage payments wherever they live Every housing payment earns you points you can use toward flights with top travel partners, including United and Hyat, Lift rides, ammazon. com purchases, and much more But here's the most underrated part. Build members also get access to what they call a neighborhood concierge. It can make restaurant reservations, book fitness classes and find new local spots all while being rewarded at more than forty five thousand merchant partners It's basasically like having a personal assistant baked into where you live. It's simple. beinging a renter and now owning a home is better with built. Download the built app and join membership for where you live at joinbuilt d. com slash prop G. That's JO I n b ILT d. com slash prop G Use our link so they know we sent you Support for the show comes from Net Suite. When competition is moving faster and businesses in every sector are starting to adopt AI, how do you even begin to keep up Net sweet next You probably know Netuite, the AR powered businessiness management suite that securely connects all of your data. It's a unified suite that brings your financials inventory, commerce, HR, and CRM into a single source of truth, trusted by over forty three thousand customers Net Seite, next is the next huge leap in how business gets done, because AI is built into everything you do. It automatically services custom insights throughout your day. AI agents work alongside you to solve problems and handle routine work. and anytime you have a question about anything Just ask like you're talking to a colleague. Whether your company earns millions or even hundreds of millions, it's time for NetSuite Ne, where your business meets AI. For the first time ever, you can try NetSueite Next for free If your revenues are at least in the seven figures, go to netsSuite. ai slash prop G. built for every industry, ready for every boardroom, netSuite. Ai slash prop G Reppport for the show comes from Lisa, the right mattress feels like a reset every time you lay on it, especially after a long commute or travel day, or spending all day on your feet. There's nothing like sinking into a soft and supportive bed If you're looking for a reset button in the form of a new mattress thenen check out Lisa. Lisa has a lineup of beautifully crafted mattresses tailored to how you sleep. Each mattress is designed with specific sleep positions and a feelie preference in mind Lisa mattresses are meticulously designed and assembled in the USA. for exceptional quality, and they back it all up with free shipping, easy returns, and one hundred and twenty night sleep trial Lisa has been awarded best Hybrid and bestest memory foam matches by New York Times Wirecutter From the first night, you'll feel the difference. It's serious comfort with full body support Just take the Lisa Sleep quiz and you'll find the perfect match in two minutes or less Go to Lisa. com for thirty percent off a select mattress plus get an extra fifty dollars off of promo code PropG, exclusive for our listeners. That's LEEsA. com promo code PropG for thirty percent off select mattress plus An extra fifty dollars off. and when you use our code, you're supporting our show. That's Lisa. com promo code PopG Welcome back. Question number three is from original one ninety one dash ninety nine. Hi Scott, former college athlete here. You've talked about your experience rowing at UCLA. first off How did you get into that sport s somewhat niche? And how did it shape you personally and professionally? So I played sports growing up. I I peaked at the age of nine. I was like all San Fernando Valley pitcher And then I hit a gross burt that lasted about another I don't know eight years where I became exceptionally tall, but my weight stayed the same. So I looked like Ichabod Crane alsoso had really bad skin, which made for just a cocktail of just sexy. But my athletic skills wane because I just wasn't I was just so tall and skinny. And then they sort of caught up a little bit towards the end of high school I made the baseball team at my high school and got cut And I got to UCLA and I thought, I would really like to be a D one athlete. And I started putting on some muscle and thought, okay I don't have the skills that these real athletes have at UCLA. But I'd heard about crew. I was tall And I thought I'm reasonably good shape. So I tried out for crew. I made the team I was easily, I'm not exaggerating. So crew at that point was a varsity sport. It no longer is now it's a club sport. But it was kind of you know, in terms of prestige anyway, it was on the low end of the totem pole. We weren't raising millions of dollars from people who wanted to get front row seeds. You know, they would rather go see Reggie Miller or see Troy Ekman at the basketball or football games but And there were thirty one people on our crew team and we crew is very much about metrics. They're constantly measuring your erg, your rad time, your pull ups, your how fast you run the perimeter, five and a quarter miles at UCLA And thank God, this guy's name, I think it was David Nauon No, that's the guy from the doctor Pepper commercials who is in American wereerewolf in London. Loves was call David Naddon. But thank God for David because David always came in thirty first And I always came in thirtieth. I was I was the second least I would say worst least talented person on the crew team Uh I I didn't like it. I thought it was an enormous pain and monotonous I was in a fraternity getting fucked up every night or not every night, but three or four nights. They used to call me up Chuck Norris because within about ten minutes of starting to row at five thirty in the morning in Boonna Creek in Marina Dl R, I would chow. And if you're as I was if you're I think I was Baowman, that means everybody gets to see your vomit as we roow past it. And crew attracts an unusual breed of very like like half my boat was premed. They were like a very myious, disciplined group of young men and And I was none of those things So I did not enjoy crew. Now having said that It was hugely beneficial to me because crew gave me A couple of things. One It got me my job at Morgan Stanley. I interviewed everywhere. I didn't get many offers. and I walked into my interview at Morgan Stanley and the head of the fixed income department of the department came in and said You can go home, ORS men and OS women get an automatic hire because you're willing to kill yourself So I got I basically got a job offer because I was on crew And then but the thing it really gave me was that The majority, ninety nine percent of people Eespecially in a modern age where we try to screen out the pain in our lives ninety nine percent of people will never know their true limits They think, oh, I can't endure this heartbreak. I can't endure this physical pain of work. I can't endure the anxiety and the stress of my kid not doing well. What you realized when you rogue crew is that You have absolutely no real sense of your limits And that is during crew, at some point you can't feel your legs when you're in a race because the blood isn't getting there fast enough. r you're intaking Breathing in feels like fire going down your esophagus And you have to deploy mental tricks to not pass out because you're that exhausted That happens at about eight hundred meters And every time you figure out a way to go to two thousand meters So what crew has taught me in has paid off immensely despite the fact that I was just an inferior Oarsman is that whenever I think I can't take this frustration and anxiety of being an entrepreneur. I can't take you know, the emotional stress of my divorce or I think, wow, I just can't handle What's going on with my family or my kids or You know, my mom being, whatever it is, whatever it faces you, that really you think is testing you When you think I can't take anymore. That means you're about forty percent of your way to your actual limit. And having that confidence that you're going to be fine, that you can get through this as long as you just keep growing is an unbelievable advantage. I used to win my first job at Morgan Stanley I was living at home with my mom. I didn't have a girlfriend, I didn't have dogs. And quite frankly, I wasn't as well educated as the other eighty five analysts at Morgan Stanley Not because I went to an inferior school, but I went to a school where you could get lost and hide and learn almost fucking nothing, which is what happened to me I used toLA because I was immature and more focused on, you know, watching Plan of the Apes after getting ridiculously fucking high two or three times a week and drinking a lot. And I was able to learn almost nothing other than You know, the words from every Led Zepplin album Which is awesome Which is awesome