WEBVTT 00:00:00.000 --> 00:00:03.288 is the ai bubble popping you might have been watching your stocks today 00:00:03.299 --> 00:00:07.068 and wondering that yesterday the stock market saw one of its worst days 00:00:07.079 --> 00:00:09.788 since april in part because investors are questioning 00:00:09.799 --> 00:00:14.728 whether the ai rally is really all that sustainable according to the wall street 00:00:14.739 --> 00:00:17.208 journal the ai boom is looking more and more fragile, 00:00:17.219 --> 00:00:22.528 with analysts warning that AI spending is now outpacing AI revenue. 00:00:22.539 --> 00:00:26.608 Joining us now, Shark Tank host and CEO of the Herjavec Group, 00:00:26.619 --> 00:00:27.588 Robert Herjavec. 00:00:27.599 --> 00:00:28.548 What a treat. 00:00:28.559 --> 00:00:32.428 Thank you for having Thanks for being in here with us and joining my show. 00:00:32.439 --> 00:00:36.208 So morbid, the AI bubble bursting. Well, it was a bad day yesterday. 00:00:36.219 --> 00:00:38.228 What do you think? It was a bad day. 00:00:38.239 --> 00:00:43.888 I think the one part I disagree with is that the AI spending is out outpacing AI revenue. 00:00:43.899 --> 00:00:44.868 Why do you disagree with it? 00:00:44.879 --> 00:00:48.328 Because of that, it's been outpacing it for years 00:00:48.339 --> 00:00:50.608 and I think it's going to be many years to do it. 00:00:50.619 --> 00:00:52.568 I think companies are taking two approaches. 00:00:52.579 --> 00:00:57.908 Some are building their own data centers, aka Oracle with a huge $50 billion investment, 00:00:57.919 --> 00:01:00.528 and others are partnering like Microsoft. 00:01:00.539 --> 00:01:05.008 What sort of deliverables do they need to meet to 00:01:05.019 --> 00:01:07.568 prove all the AI doubters wrong? 00:01:07.579 --> 00:01:10.528 I mean, right now there's a lot of talk about AI, there's a lot of promise 00:01:10.539 --> 00:01:12.868 about replacing workforce and all this efficiency. 00:01:12.879 --> 00:01:15.188 We haven't seen that come to life. 00:01:15.199 --> 00:01:20.628 And I ask that because one of the big AI guys, Anthropik Dario Amodai, 00:01:20.639 --> 00:01:23.528 said that in three months, 20 % of the workforce is going to be 00:01:23.539 --> 00:01:24.008 laid off. And 00:01:24.019 --> 00:01:27.028 And that was like six months, maybe a year ago now. But 00:01:27.039 --> 00:01:30.748 But Katie, it's happening. Look at the recent Amazon layoffs. 00:01:30.759 --> 00:01:33.168 And I think you're going to see much more of that. It's 00:01:33.179 --> 00:01:36.708 going to be hard to correlate direct revenue to AI 00:01:36.719 --> 00:01:39.888 because it's going to be efficiency at the first step. 00:01:39.899 --> 00:01:44.368 Today, with Agentec AI, your predictability in functions 00:01:44.379 --> 00:01:45.728 that you couldn't do before. 00:01:45.739 --> 00:01:47.628 But let's step back from that. 00:01:47.639 --> 00:01:50.788 Where are we going to see the biggest impact look what happened yesterday 00:01:50.799 --> 00:01:57.488 with the anthropic cyber attack so a chinese group was able to manipulate i'm going 00:01:57.499 --> 00:02:02.748 to use the word anthropic using agentic ai to do a cyber attack so instead 00:02:02.759 --> 00:02:06.268 of a bunch of hackers trying to get into a system they had ai do it 00:02:06.279 --> 00:02:09.628 it was basically a couple of guys and the thing 00:02:09.639 --> 00:02:15.048 with ai is it doesn't think it does no good it doesn't know bad they were telling it to 00:02:15.059 --> 00:02:19.588 were doing a good attack to test the perimeter defense it has no morality 00:02:19.599 --> 00:02:22.728 it has no morality and we don't want it to have any morality 00:02:22.739 --> 00:02:27.748 so you know i started a cyber company 20 years ago as you said was called the herge 00:02:27.759 --> 00:02:32.448 of that group it's now called cyderis cyber defense and response one 00:02:32.459 --> 00:02:36.728 of the biggest cyber companies in the world and i used to say we work 00:02:36.739 --> 00:02:41.048 in the age of the internet internet time and then covid happened i was 00:02:41.059 --> 00:02:47.748 like it's covid time now with agentic ai things are moving so quickly 00:02:47.759 --> 00:02:52.408 that i don't think we're prepared for it yet if we're not prepared 00:02:52.419 --> 00:02:55.708 for it yet what's going to happen i mean we see the stock market that's you know 00:02:55.719 --> 00:02:59.528 teetering a little bit there's concerns about it what if it the stock market 00:02:59.539 --> 00:03:02.868 burst that's one question and then secondly if ai does deliver 00:03:02.879 --> 00:03:09.309 on all of these promises how are we as a society better off especially 00:03:09.320 --> 00:03:14.349 if there's layoffs and people can't get into the workforce well it it it's 00:03:14.360 --> 00:03:19.849 a two-edged sword i'm a huge believer in ai partly because i see it 00:03:19.860 --> 00:03:22.529 as the next industrial revolution i'm a huge skeptic 00:03:22.540 --> 00:03:31.769 of it so tell me why i shouldn't be so nervous if you and i were sitting here in the 1900s we would be talking about blue-collar factory workers under horrible 00:03:31.780 --> 00:03:35.669 conditions, making no money, being replaced by automation. 00:03:35.680 --> 00:03:37.029 Right? 00:03:37.040 --> 00:03:40.249 Today, we're talking about AI that's going to free a lot 00:03:40.260 --> 00:03:43.369 of people in order to do high value tasks. 00:03:43.380 --> 00:03:48.589 Now, if you're a white collar worker today and you're doing middle level management, 00:03:48.600 --> 00:03:49.849 I got news for you. 00:03:49.860 --> 00:03:53.789 You're in trouble. So what will you do in the future? 00:03:53.800 --> 00:03:55.969 You have to upskill. 00:03:55.980 --> 00:03:58.889 And I think that's a responsibility of a lot of enterprises 00:03:58.900 --> 00:04:03.289 and government to give that education to people but look at look at the world we're living 00:04:03.300 --> 00:04:06.409 in right now we have um you could argue that all the politics 00:04:06.420 --> 00:04:09.749 that we're experiencing the anger that's out there is 00:04:09.760 --> 00:04:12.609 in part due to globalization, NAFTA. 00:04:12.620 --> 00:04:18.989 This outsourcing of unskilled labor overseas, the factory workers, 00:04:19.000 --> 00:04:24.389 left a whole generation or a whole demographic of people jobless 00:04:24.400 --> 00:04:27.589 and angry and feeling like they're not contributing to society 00:04:27.600 --> 00:04:29.029 or not valued any longer. 00:04:29.040 --> 00:04:32.769 If we do that again, aren't we just setting ourselves up 00:04:32.780 --> 00:04:36.669 for another revolution in our politics where there is a 00:04:36.680 --> 00:04:40.269 whole new class of very angry people feeling like they're left behind. 00:04:40.280 --> 00:04:47.169 Every major shift creates victims and every major shift creates opportunities. 00:04:47.180 --> 00:04:52.849 And I think what I would say to people is you have to take a responsibility to be 00:04:52.860 --> 00:04:53.989 on the right side of that. 00:04:54.000 --> 00:04:56.329 It's not that there isn't opportunity. 00:04:56.340 --> 00:05:01.069 I think that the anger is people feel there is an opportunity for them, 00:05:01.080 --> 00:05:04.569 that the American dream isn't alive for them. 00:05:04.580 --> 00:05:09.369 And I think part of that is the gap between great wealth and most people, 00:05:09.380 --> 00:05:10.829 it's just widening. 00:05:10.840 --> 00:05:17.289 But I will tell you, AI has the ability, you can start a business today using AI, 00:05:17.300 --> 00:05:22.089 and you have access to computing power to things you couldn't do in the past. 00:05:22.100 --> 00:05:27.649 So if you know how to use it, this is an amazing opportunity. 00:05:27.660 --> 00:05:31.209 You know, it's like Mark Cuban and said, if I was a Gen Z today, 00:05:31.220 --> 00:05:35.969 I would be doing one thing with my life, living, breathing, and sleeping AI. 00:05:35.980 --> 00:05:38.779 What would you have your kids study in school? 00:05:40.240 --> 00:05:42.379 I would, that's a great question. 00:05:43.740 --> 00:05:46.949 My son has a hard time writing, so I go to school 00:05:46.960 --> 00:05:48.869 and the teachers tell me how important it is. 00:05:48.880 --> 00:05:50.709 And I have to tell you, I'm sitting there going, 00:05:50.720 --> 00:05:52.789 he's never going to write. 00:05:52.800 --> 00:05:59.429 Why are we having this meeting i would have him learn two things one is anything to do 00:05:59.440 --> 00:06:04.769 with computers coding math that kind of stuff but more importantly creativity 00:06:04.780 --> 00:06:10.329 the ability to think outside the box i think will always have 00:06:10.340 --> 00:06:14.309 a premium so being a creative person that doesn't that can create things that 00:06:14.320 --> 00:06:18.589 that the computer cannot yes i guess but you can envision i mean 00:06:18.600 --> 00:06:19.749 computers are going to get creative 00:06:19.760 --> 00:06:20.069 too. 00:06:20.080 --> 00:06:23.089 But I think if you have the ability to see things 00:06:23.100 --> 00:06:26.969 others don't and stay slightly ahead of the market, I mean, 00:06:26.980 --> 00:06:28.989 I think the market's going to we're going to have some problems 00:06:29.000 --> 00:06:32.329 with some of the stocks for a short while, but there'll be massive opportunities. 00:06:32.340 --> 00:06:36.889 I asked Chachi PT to write a paragraph in the style of my two books 00:06:36.900 --> 00:06:42.789 and the paragraph that it came up with scared me because it made me laugh. 00:06:42.800 --> 00:06:45.609 It was actually pretty funny. Was it better than you? 00:06:45.620 --> 00:06:47.609 I don't know if it was better than me but I mean 00:06:47.620 --> 00:06:52.909 if you're not a discerning consumer I don't know I mean I think we got to be 00:06:52.920 --> 00:06:57.609 discerning consumers and that scared me because if you're if you're replacing we're 00:06:57.620 --> 00:07:01.449 out of time creative thought with just ai slop it's going to leave 00:07:01.460 --> 00:07:04.269 all of us kind i think in a worse place but i got to go um 00:07:04.280 --> 00:07:07.849 but you think every day we see people on shark tank trying to live their american dream 00:07:07.860 --> 00:07:10.949 yeah you can start a business out of your basement you can use ai 00:07:10.960 --> 00:07:12.669 and do functions you couldn't do 00:07:12.680 --> 00:07:14.489 in the past. I want to write a book. 00:07:14.500 --> 00:07:18.169 Thank you so much for joining us. Thank you. 00:07:18.180 --> 00:07:19.439 Really good to have you. What a treat.