Latest / Financial Survival Network / AI Hype Ends—Execution Takes Over - Jeremy Barnett #6349

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AI Hype Ends—Execution Takes Over - Jeremy Barnett #6349 · Financial Survival Network

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  Speaker 1: We believe there's more creativity than ever before. So I
• 0:04
  Speaker 1: always look at the basics. You look at a company,
• 0:07
  Speaker 1: you look at their fundamentals, you look at their growth,
• 0:10
  Speaker 1: you look at the customers they have, and then you
• 0:12
  Speaker 1: look at the need of the product that they have
• 0:14
  Speaker 1: at market within the framework of the customer relationships that
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  Speaker 1: they have, and if those things are in pact, then
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  Speaker 1: you have a very stable business. Not because that business
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  Speaker 1: has artificial intelligence, but because that business is solving a
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  Speaker 1: commercial problem.
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  Speaker 2: You're listening to Carrie Letz's Financial Survival Network, where you
• 0:31
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• 0:35
  Speaker 2: thrive in today's trying times. You need the Financial Survival
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  Speaker 2: Network now more than ever. Go to Financial Survivalnetwork dot
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• 0:51
  Speaker 3: Ever, and welcome. You are listening to and watching the
• 0:57
  Speaker 3: Financial Survival Network host Carrie Luttz, Well, you're probably hearing
• 1:03
  Speaker 3: in the news see CNBC. All of the financial news
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  Speaker 3: shows are all a buzz about AI, and it's getting
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  Speaker 3: to the point where there's probably too many AI is
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  Speaker 3: out there, too many companies chasing the AI rainbow. But
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  Speaker 3: the real money is in the cleanup. Gartner says that
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  Speaker 3: a genetic AI is already oversaturated meta plans to fully
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  Speaker 3: automate AD creation this coming year, Google is collapsing creative
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  Speaker 3: data and execution into one design layer. And the question
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  Speaker 3: now isn't who builds AI, it's who controls the layer
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  Speaker 3: that decides everything. And today we've got Jeremy Barnett, CEO,
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  Speaker 3: co founder of rad Intel here to break down the
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  Speaker 3: coming consolidation wave and the new AI power stack that's
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  Speaker 3: about to reorder the entire higher marketing industry, PR communications
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  Speaker 3: in general. Jeremy, great to have you on the show.
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  Speaker 3: So tell us here, when does the AI crash happen?
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  Speaker 3: Is it happening now? And does Nvidia have anything to
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  Speaker 3: worry about?
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  Speaker 1: Well, I think there's a lot of there's a lot
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  Speaker 1: of chatter. I mean, Nvidia has the numbers to back
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  Speaker 1: up the valuation I think is for form. And if
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  Speaker 1: you think about artificial intelligence at its hull, we're seeing massive,
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  Speaker 1: massive adoption, which means our feeds are flooded with all
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  Speaker 1: of this stuff. Some of it's great, some of it's
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  Speaker 1: not so great. But if you think about it, humans
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  Speaker 1: are ultimately driving all of this adoption. So we think
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  Speaker 1: about this era that we're in is it's the era
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  Speaker 1: of human creativity, and the right human practitioners using AI
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  Speaker 1: technology can actually become significantly better at the thing that
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  Speaker 1: they're trying to accomplish. Now there's commercial reasons, like doing
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  Speaker 1: a better job creating content, there's also personal reasons like
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  Speaker 1: how do I deal with my fifteen year old son
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  Speaker 1: who's having issues with his performance coach for whatever sport
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  Speaker 1: he plays. So it's really interesting how us humans are
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  Speaker 1: deciding to use artificial intelligence. But everything always boils back
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  Speaker 1: to the basics, and it's been the same basics for
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  Speaker 1: considerable periods of time with respect to why companies are
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  Speaker 1: or are not successful. Traction sustainable growth revenue that isn't
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  Speaker 1: just sustainable, but having customers that want and need your
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  Speaker 1: product because they depend on your product. That's ultimately what
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  Speaker 1: rules the.
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  Speaker 3: Day, right, So I think what got everyone confused is
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  Speaker 3: it's the AI has been around a long time, but
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  Speaker 3: now it's out there for the general public. Yeah, you
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  Speaker 3: hear about all these data centers being opened up and
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  Speaker 3: all the electricity required, and that tends to distract from
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  Speaker 3: the actual issue, which is the use case and how
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  Speaker 3: many ais, do you know need? It really is reminiscent
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  Speaker 3: of the AI of the dot com boom in the
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  Speaker 3: late nineties, and we all know where that wound up.
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  Speaker 3: We going to see a similar thing here. Well.
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  Speaker 1: The use cases are very similar, but there's also fundamental differences.
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  Speaker 1: If you think about when cloud computing became the flavor
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  Speaker 1: of the week, llms are very similar. From an infrastructure perspective.
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  Speaker 1: You have all of this infrastructure that being built on
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  Speaker 1: top of these llms, but everything always boils down to
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  Speaker 1: the very fundamental basics of what is the commercial issue
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  Speaker 1: that you're trying to solve. If you're a company that's
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  Speaker 1: using artificial intelligence, whether you're adopting it internally to make
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  Speaker 1: your customers' lives better, or whether you're adopting it internally
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  Speaker 1: because you want to attract more customers. But at the
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  Speaker 1: end of the day, what is the thing that you're
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  Speaker 1: doing with the artificial intelligence? There has to be a
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  Speaker 1: commercial use case. Having the word AI in your business
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  Speaker 1: means app absolutely nothing unless there's some sort of value
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  Speaker 1: that the artificial intelligence is creating. In the context of
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  Speaker 1: my company, rad we leave the pen in the hand
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  Speaker 1: of the practitioner. In other words, people that use our
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  Speaker 1: product use our product to make them better at the
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  Speaker 1: job that they do. We believe there's more creativity than
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  Speaker 1: ever before. So I always look at the basics. You
• 5:22
  Speaker 1: look at a company, you look at their fundamentals, you
• 5:25
  Speaker 1: look at their growth, you look at the customers they have,
• 5:28
  Speaker 1: and then you look at the need of the product
• 5:30
  Speaker 1: that they have at market within the framework of the
• 5:32
  Speaker 1: customer relationships that they have. And if those things are intact,
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  Speaker 1: then you have a very stable business. Not because that
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  Speaker 1: business has artificial intelligence, but because that business is solving
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  Speaker 1: a commercial problem.
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  Speaker 3: Right, Okay, so AI for it. If I could just
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  Speaker 3: paraphrase you, AI for AI's sake isn't really where it's at.
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  Speaker 3: It's it's solutions based effectively.
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  Speaker 1: Have that right, I would one hundred percent agree with you, Carrie,
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  Speaker 1: and I would even take it one step further. The
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  Speaker 1: real edge and artificial intelligence is how humans not just
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  Speaker 1: decide to adopt it, but how we decide to apply it.
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  Speaker 1: You put a really powerful set of AI tools in
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  Speaker 1: the hand of an unbelievably talented creative practitioner. Maybe he's
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  Speaker 1: a designer or maybe she's a director, but you put
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  Speaker 1: these tools their hands and they become even better at
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  Speaker 1: the thing that they do by a ten x multiple.
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  Speaker 1: Whereas if you put these same exact tools in the
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  Speaker 1: hands of somebody who's performing at a more we'll call
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  Speaker 1: it mediocre level, they're not all of a sudden going
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  Speaker 1: to become this really high performing human being. Right, AI
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  Speaker 1: doesn't make you bet. It's the creativity of the humans
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  Speaker 1: that are using the artificial intelligence that makes them better
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  Speaker 1: at the thing that they're doing. So I always say,
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  Speaker 1: garbage in, garbage out, excellence in even more excellence out.
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  Speaker 3: I love that concept and I couldn't agree with you more. So,
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  Speaker 3: where do you think the biggest trend is heading for
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  Speaker 3: the next year, the next few years.
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  Speaker 1: Well, we always think about these things. We're looking at
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  Speaker 1: this era of creativity as it's an opportunity to get
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  Speaker 1: even more authentic. So the idea of understanding authenticity at
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  Speaker 1: its core and the things that will mobilize your target
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  Speaker 1: customers to take action, or even the things that will
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  Speaker 1: motivate your teenager to do something because you know it's
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  Speaker 1: good for them. So, the idea of creating this environment
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  Speaker 1: where people are using technology in order to make not
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  Speaker 1: just their professional but personal lives better that's where we
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  Speaker 1: see everything going. So it's not just about a story
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  Speaker 1: anymore or a vision anymore. It's about practical traction and performance.
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  Speaker 1: Investors are shifting focus from looking at companies that have
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  Speaker 1: potential to now they're demanding companies have real traction at
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  Speaker 1: rad we look at basic fundamentals. You know, we have
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  Speaker 1: an infrastructure here built that we look at companies and
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  Speaker 1: we buy companies, and we buy companies. We don't look
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  Speaker 1: at do they have AI. We don't look at well,
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  Speaker 1: they could be this. We're looking at the core fundamentals
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  Speaker 1: of this business. Are they even a positive? Do they
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  Speaker 1: have great leadership? Will our artificial intelligence and technology solution
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  Speaker 1: take their business to the next level? In other words,
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  Speaker 1: will make material impacts to the p and L and
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  Speaker 1: balance sheet? And if we can answer all of these
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  Speaker 1: questions confidently, then we know this is a target we
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  Speaker 1: should look at.
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  Speaker 3: Well.
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  Speaker 1: The same thing holds true when you look at investing
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  Speaker 1: and looking at different areas where you're going to potentially
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  Speaker 1: lay some modest bets into, you have to just look
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  Speaker 1: at the core fundamentals. Leadership. You know, I have an
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  Speaker 1: investor who always tells me, I always bet on the
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  Speaker 1: jockey critical. Good leadership starts and ends with good leadership
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  Speaker 1: above and beyond that, does the business have basic fundamentals?
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  Speaker 1: In other words, not just this big vision and AI
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  Speaker 1: in their term, in their in their marketing materials, but
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  Speaker 1: are they actually solving a problem that their customers are
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  Speaker 1: willing to pay for? And this is true across all industries, healthcare, UH, medical,
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  Speaker 1: medical treatments, brick and mortar businesses. It always boiled, It
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  Speaker 1: always boils down to the basic brick and mortar rules
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  Speaker 1: associated with leadership, a product that people want to buy
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  Speaker 1: and positive ebita a company that's really moving towards something
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  Speaker 1: that investors can back for the long term.
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  Speaker 3: All right, well, it makes a lot of sense. And
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  Speaker 3: obviously AI, for AI's sake, is not going to get
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  Speaker 3: you where you want to be. So question is how
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  Speaker 3: do you invest in this? How do you identify the
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  Speaker 3: emerging companies who are really going to go somewhere?
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  Speaker 1: Well, you know, there's lots of different ways to look
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  Speaker 1: at it. I think, you know, we are in the
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  Speaker 1: information age. So one of the things AI has enabled
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  Speaker 1: us to do is we are able to be our
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  Speaker 1: own practitioners of what we do and what we don't do.
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  Speaker 1: So you know, if you're looking at alternative assets, there's
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  Speaker 1: certainly really simple ways to research leadership and look at
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  Speaker 1: their track record. That's the first thing I always do
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  Speaker 1: when we're looking at anything is I want to understand
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  Speaker 1: who the people are and what they've done and what
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  Speaker 1: successes they've had. Above and beyond that, you look at
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  Speaker 1: the basic fundamentals. And you know, in our case, rad
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  Speaker 1: is a reggae plus regulated company, so everything we do
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  Speaker 1: has to be filed with the SEC. So there's a
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  Speaker 1: deep amount of due diligence in our offering before we
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  Speaker 1: actually go to our investor community. So it's something that
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  Speaker 1: we're really proud of, and it also helps us separate
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  Speaker 1: from all of the noise that's out there. So there's
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  Speaker 1: two different types of investment classes. You have your public securities,
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  Speaker 1: then you have your alternative sets. Right public securities, it's
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  Speaker 1: public information and we've all seen these really great public
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  Speaker 1: companies fold at one point. So just because of companies
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  Speaker 1: doesn't necessarily mean they've answered all of the things that
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  Speaker 1: need to be answered. They still need to produce results.
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  Speaker 1: In private markets, you have to look at companies that
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  Speaker 1: actually have not just the fundamentals on or appearance of fundamentals.
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  Speaker 1: To be able to look at reports, you've got to
• 11:01
  Speaker 1: be able to look at audited financials. You've got to
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  Speaker 1: be able to look at a track record in history
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  Speaker 1: before you decide to put your hard ended dollars into anything.
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  Speaker 1: So I would strongly urge any investor that's looking at anything.
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  Speaker 1: I mean, look, you're never going to be perfect with
• 11:14
  Speaker 1: every decision you make, otherwise we'd all be multi multi millionaires.
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  Speaker 1: You can make some educated bets in different areas based
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  Speaker 1: off of track record, based off of history, and based
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  Speaker 1: off of reputable organizations given their stamp of approval. You know,
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  Speaker 1: an SEC regulated Reggae plus is a really good stamp
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  Speaker 1: of approval if you're looking at private investment, if you're
• 11:33
  Speaker 1: looking at private investment classes, because you know you have
• 11:36
  Speaker 1: to have due diligence and audited financials in order to
• 11:38
  Speaker 1: list in that kind of way.
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  Speaker 3: For sure, No, I totally get what you're saying. So
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  Speaker 3: obviously you've done a lot of deals over the year.
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  Speaker 3: Can you share with us the best deal you ever made?
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  Speaker 1: Well, the best deal I ever made? Well, this is
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  Speaker 1: going to be well. I'm going to force my co
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  Speaker 1: founder to watch this, so you know you know, so
• 11:59
  Speaker 1: what do we your well, what do you do in
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  Speaker 1: your startup figuring out product market fit at the beginning
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  Speaker 1: of COVID. In our case, we figured out a way
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  Speaker 1: to merge h We acquired another artificial intelligence company and
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  Speaker 1: they were having they were struggling with the product market fit.
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  Speaker 1: It just so happens that what we were really good
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  Speaker 1: at and what they were really good at was two
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  Speaker 1: negatives equal in a positive. There So the best move
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  Speaker 1: that wever made was acquiring a company by the name
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  Speaker 1: of Atomic Reach, which now the former CEO of that
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  Speaker 1: company is my co founder and president, and we've adopted
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  Speaker 1: that product to be the current product that we have
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  Speaker 1: in market, which is powering not just our internal growth
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  Speaker 1: and adoption, but our entire strategic biostrategy, which is acquiring
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  Speaker 1: new businesses. So in Rad's context, that was the best
• 12:43
  Speaker 1: decision at the time, everybody that knew me was doing
• 12:47
  Speaker 1: sanity checks with me, because you know, two early stage
• 12:51
  Speaker 1: companies don't necessarily equal a positive. This isn't a typical
• 12:54
  Speaker 1: math equation. Right now, looking back on it, by far
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  Speaker 1: and away the best decision that we made, and there's
• 13:01
  Speaker 1: lots of different reasons why, but you know, a lot
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  Speaker 1: of times as a singular founder in a business, the
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  Speaker 1: ability to have another co founder in the business that
• 13:10
  Speaker 1: can share in the burden of all the issues and
• 13:13
  Speaker 1: challenges that you go through when you're growing your company.
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  Speaker 1: I can't put a dollar value on that, aside from
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  Speaker 1: that having the having the technology and the investment into
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  Speaker 1: technology that came with that company as a part of
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  Speaker 1: our overall offering. Stack today has really been a massive
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  Speaker 1: differentiation for us and has really been not only a
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  Speaker 1: differentiation but the reason why we've gotten such such good
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  Speaker 1: adoption with the with the brands that matter.
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  Speaker 3: All right, I love it, and it's a very disciplined
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  Speaker 3: and focused approach towards AI, which I think is completely
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  Speaker 3: lacking in the market. Jeremy, where's the best place to
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  Speaker 3: find you? Connect with you on the web?
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  Speaker 1: Well, you can connect with me on LinkedIn, Jeremy Barnett,
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  Speaker 1: CEO of rat Intel, Real easy. We also have a
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  Speaker 1: portal for our investor community. We have abound eleven thousand
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  Speaker 1: and investors today, ranging from Fidelity Ventures and Adobe to
• 14:04
  Speaker 1: folks that work over at Google and Meta and Amazon.
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  Speaker 1: So you can go over to our investment page and
• 14:10
  Speaker 1: find us and if you want to reach out to me.
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  Speaker 1: I make a point of being available to our entire
• 14:14
  Speaker 1: community of supporters. Our community is really one of the
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  Speaker 1: main reasons why we've been able to do a lot
• 14:19
  Speaker 1: of the things that we do at Market today, and
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  Speaker 1: we're really proud of that.
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  Speaker 3: All right, excellent. Hey, you've got any questions for Jeremy
• 14:26
  Speaker 3: or myself, shoot me an email kl at Carrie LUTs
• 14:29
  Speaker 3: dot com. You can find our substack at Carrie LUTs
• 14:33
  Speaker 3: dot com. Jeremy appreciate you coming on. We'll talk to
• 14:36
  Speaker 3: you and.
• 14:36
  Speaker 1: Soon, Harry, take care of yourself. It was a player.
• 14:38
  Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 14:42
  Speaker 2: solution to today's trying times. For the latest, go to
• 14:46
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,