Latest / Business Brain – The Entrepreneurs’ Podcast / FridAI - AI Usage and Watermarking
Transcript
- 0:00Dave Hamilton: Business Brain, episode 783 for Casual Friday, August 28th, National Bowtie Day.
- 0:09Dave Hamilton: I'm going to say that again. National Bowtie Day. That's easy.
- 0:14Dave Hamilton: Once you say it once and figure it out. 2026.
- 0:18Dave Hamilton: What was the last time you, have you ever worn a real bowtie?
- 0:21Shannon Jean: I think I might have worn one at my wedding, you know, a few years ago.
- 0:26Dave Hamilton: Yeah.
- 0:26Shannon Jean: That might be it.
- 0:27Dave Hamilton: That might be it. I wore a... How about you? I think I've only ever worn like
- 0:34Dave Hamilton: the clip-on pre-tied bow ties. Oh, yeah. Me too.
- 0:37Shannon Jean: There's no way I'm –.
- 0:39Dave Hamilton: In jazz band. Was the one that you wore at your wedding, was that one of the clip-ons or a real – Oh,
- 0:45Shannon Jean: Yeah. I think it was a clip-on. Yeah, okay. I don't think it had to be tight.
- 0:49Shannon Jean: I wouldn't know how to do that if my life depended on it.
- 0:51Dave Hamilton: I mean, you could learn. AI would happily teach you. In fact,
- 0:53Dave Hamilton: actually, something on YouTube would probably teach you even better. Yes.
- 0:56Dave Hamilton: Greetings, folks, and welcome to Business Brain, the show by,
- 0:59Dave Hamilton: for, and about entrepreneurs where we take several ideas, we crunch them,
- 1:04Dave Hamilton: we dissect them, we use them to better tune our business brains and level up our charmed lives.
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- 1:22Dave Hamilton: We'll talk more about those in a little bit. For now, here on Friday AI in Durham,
- 1:26Dave Hamilton: New Hampshire, I'm Dave Hamilton.
- 1:29Shannon Jean: And I'm out here in Northern California. I'm Shannon Jean. Happy Friday. I yeah.
- 1:34Dave Hamilton: Happy Friday. I I have a tip for all of us.
- 1:39Dave Hamilton: Tell your staff to use as much AI as they need.
- 1:44Dave Hamilton: And by that, I mean, well, yeah, because, you know, let's say you sign everybody
- 1:49Dave Hamilton: up for the 20 bucks a month plan or whatever.
- 1:51Dave Hamilton: Right. You know, OK, your staff will naturally because, you know,
- 1:56Dave Hamilton: you've probably taught them in some ways to be budgeted. conscious and not,
- 2:00Dave Hamilton: you know, frivolously spend money or whatever. And...
- 2:05Dave Hamilton: Your staff may take that lesson and think, okay, when I hit usage limits,
- 2:12Dave Hamilton: I'm just hitting my limit, and therefore I'm done.
- 2:15Dave Hamilton: Whereas if you or I were in the middle of a project, Shannon,
- 2:19Dave Hamilton: we would just pony up and buy more credits.
- 2:21Shannon Jean: Forget it. Right. Yes, yes, we would.
- 2:23Dave Hamilton: And your staff may not think that way. And so I highly recommend you go to your
- 2:30Dave Hamilton: staff today and tell them, use as much AI you need.
- 2:35Dave Hamilton: And what i would do is uh unless they've never even come close yet to hitting
- 2:40Dave Hamilton: usage limit and if they haven't
- 2:42Dave Hamilton: that's probably worth a conversation too like why aren't you hitting like what
- 2:47Dave Hamilton: what are you doing with it are you doing enough with it
- 2:50Dave Hamilton: and maybe they are maybe they're like leveraging in every way they could and
- 2:54Dave Hamilton: they just aren't hitting those limits and maybe it's because
- 2:56Dave Hamilton: instead of using like opus and fable they're using sonnet all the time you know
- 3:00Dave Hamilton: i don't And maybe there's things to learn in that conversation for you or for them or for both.
- 3:05Dave Hamilton: But what I would do is tell them, okay, look, you're on the $20 a month plan.
- 3:10Dave Hamilton: Go buy $50 worth of credits so that you always can spill over.
- 3:15Shannon Jean: Okay.
- 3:15Dave Hamilton: And either when you run out or at the end of the month, let's look and see how many you have left.
- 3:23Dave Hamilton: And then that usage rate will inform you as to whether or not you should level
- 3:31Dave Hamilton: up any given employee's plan from the $100 a month plan, $20 to $100 or whatever, like whatever it is.
- 3:38Dave Hamilton: And what I have learned, and my son actually helped me kind of do this math
- 3:44Dave Hamilton: because he's been tracking token usage.
- 3:48Dave Hamilton: Token usage a la carte token usage is much more expensive than what you get
- 3:56Dave Hamilton: with your plan. Like, many times more expensive.
- 4:01Dave Hamilton: Which makes sense. You know,
- 4:03Shannon Jean: It's like adding data to your cell phone plan.
- 4:06Dave Hamilton: Exactly. It's exactly the same kind of thing. It's probably the similar ratios
- 4:10Dave Hamilton: too. It's just ridiculously expensive, but it makes sense, right?
- 4:13Dave Hamilton: Because they want you to, to level up and stay there, not just by,
- 4:18Dave Hamilton: you know, here and there when you need it.
- 4:20Dave Hamilton: And that's fine. Like it's their model. I don't, it, I, my approach is that
- 4:24Dave Hamilton: it doesn't matter if you can get
- 4:27Dave Hamilton: away with buying $50 worth of credits and then only need to re up those.
- 4:33Dave Hamilton: Every, you know, four months, that's still cheaper for me, even though those
- 4:39Dave Hamilton: overage credits are, you know, costing more per credit, per token,
- 4:43Dave Hamilton: like it's still cheaper for me to pay 20 bucks a month and then 50 bucks a quarter,
- 4:48Dave Hamilton: you know, and now, you know, that's what your AI usage costs on a quarterly
- 4:53Dave Hamilton: basis or, you know, an annual basis or whatever.
- 4:56Dave Hamilton: But figure that out and let your staff help you figure that out.
- 5:00Dave Hamilton: Don't have them limit their usage just because they're hitting the limits of
- 5:05Dave Hamilton: whatever plan they or you decided to start with.
- 5:10Shannon Jean: Okay, that makes sense. I have a question, though.
- 5:12Dave Hamilton: Yeah.
- 5:13Shannon Jean: Are you standardizing on what AI your team is using?
- 5:18Shannon Jean: Or are you letting them use whatever they want?
- 5:21Dave Hamilton: I i have standardized everyone like everyone has basically standardized on claude
- 5:28Dave Hamilton: except for one person who is having great luck with chat gpt and far be it from me to
- 5:35Dave Hamilton: tell someone to use a different tool when one tool is working
- 5:39Dave Hamilton: fantastically for them yeah sure so that totally makes sense so like like i
- 5:43Dave Hamilton: would now i would encourage someone to start with claude probably I mean,
- 5:49Dave Hamilton: like, we'll see. Like, you know, this changes all the time.
- 5:51Shannon Jean: Your marketing department may be like, hey, we need this.
- 5:53Dave Hamilton: Exactly.
- 5:54Shannon Jean: All this stuff in ChatGPT is so much better than Claude because of XYZ.
- 5:57Shannon Jean: Yeah. Yeah. Yeah, I like that. Yeah, we've tried to...
- 6:03Shannon Jean: Uh, you know, point, figure out a, a, a narrower list of, you know,
- 6:10Shannon Jean: apps that we all want to use and get to, you know, multiple seats and those kinds of things.
- 6:15Shannon Jean: But I'm, I'm the same way. If somebody says, Hey, I really need to use Opus clip or Opus dot pro.
- 6:20Shannon Jean: Okay, great. Great. If you can justify it, that's great.
- 6:23Dave Hamilton: Let's do it. That's all you need to do is justify it for me.
- 6:25Dave Hamilton: Yeah. Yeah. Yeah. For sure. Yep. Yep.
- 6:28Shannon Jean: I like it.
- 6:29Dave Hamilton: Yeah. I know if I put everybody on team plans, I could probably do better with some of this.
- 6:35Dave Hamilton: Maybe I'm not, I've looked at the team plan pricing before, not recently,
- 6:40Dave Hamilton: but I looked maybe six months ago and I was like, this doesn't make any sense.
- 6:42Dave Hamilton: It's cheaper to just buy a la carte plans.
- 6:44Shannon Jean: I think you have to be like, you know, when you have maybe 50 people,
- 6:48Shannon Jean: maybe that's very, very different. If you have a team of team of 10 or eight, that's then it's yeah.
- 6:54Dave Hamilton: Yeah. Just use, use what you want. Fine. Tell me what tools you need.
- 6:58Dave Hamilton: And if assuming we can afford them and justify them, then we will provide them for you happily.
- 7:05Dave Hamilton: But the last thing you want to find out as a manager or business owner is that
- 7:10Dave Hamilton: someone has been restricting their own use of this tool because of an assumption
- 7:16Dave Hamilton: they have made about what you would be willing to spend on it.
- 7:20Shannon Jean: Very important.
- 7:21Dave Hamilton: And that's true of any tool. Obviously, this isn't just an AI thing. Yeah.
- 7:29Dave Hamilton: Nice. Yeah. yeah good stuff um we have well we promised you we would have a
- 7:35Dave Hamilton: conversation about watermarking so we're going to do that uh and yep and i can't
- 7:40Dave Hamilton: wait makes shannon so happy uh and then
- 7:44Dave Hamilton: uh and we maybe have one other thing to do too so we will we will do both of
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- 11:03Dave Hamilton: All right. So I I've done some more look into this watermarking thing, Shannon.
- 11:10Dave Hamilton: And of course, it was, as we discussed two weeks ago now,
- 11:15Dave Hamilton: it was catalyzed by an EU mandate
- 11:21Dave Hamilton: Law policy, something that says that any models released and used in the EU
- 11:28Dave Hamilton: after August 2nd, 2026 must watermark their content.
- 11:35Dave Hamilton: Uh and claude were the first to announce now we're recording this
- 11:40Dave Hamilton: This is a risky conversation to have because we're recording this about nine
- 11:44Dave Hamilton: days before it's going to come out uh yeah could change and so this was almost certainly changed but
- 11:49Dave Hamilton: as of you know actually more 11 days before it's going to come out as of august 17th uh
- 11:54Dave Hamilton: no one else has said anything about it but no one none of the other big companies
- 11:58Dave Hamilton: have said anything about it and none of the other big companies have released
- 12:01Dave Hamilton: new models so that may be why they haven't said anything about it um claude's response was
- 12:08Dave Hamilton: we are going to adhere to this in the eu
- 12:12Dave Hamilton: by adapting all of our models that are available everywhere
- 12:17Dave Hamilton: to do this right to to do this watermarking and i have some cool information about the watermarking
- 12:23Dave Hamilton: no one else said anything other companies could choose to do the exact same
- 12:27Dave Hamilton: thing as claude i mean that's certain there is anthropic that's certainly the
- 12:30Dave Hamilton: easiest path right is just having
- 12:32Dave Hamilton: a model that everybody uses everywhere which is how it's always been
- 12:36Dave Hamilton: uh or they could have e they could develop and cook up eu specific models that
- 12:43Dave Hamilton: you know are delivered to you if you're using
- 12:47Dave Hamilton: it in the eu we don't know right yeah
- 12:50Dave Hamilton: that's it um
- 12:55Dave Hamilton: So that's what we know about that, right? That's it. But every company will have to do this.
- 13:01Shannon Jean: If they want to be in the EU with those models.
- 13:03Dave Hamilton: If they want to be in the EU, correct.
- 13:04Shannon Jean: And it will be text. Yeah, it will be in every piece of text that is created.
- 13:11Shannon Jean: Every image, of course, easier, but every text, everything.
- 13:14Shannon Jean: And that information will stay there, whether you pull it out,
- 13:19Shannon Jean: all this kind of stuff. And I know you're going to get into some... My...
- 13:24Shannon Jean: The 10,000 level is here we have companies that have scraped all of our data,
- 13:30Shannon Jean: have pulled all the information out from all over the world.
- 13:34Shannon Jean: That's how they built the LLMs. Of course.
- 13:36Dave Hamilton: You and I have contributed more to this than the average person.
- 13:40Shannon Jean: Absolutely. 12 years of talking and transcripts and podcasts online have been scraped and sucked out.
- 13:46Dave Hamilton: Plus everything I published at MacObserver and MacGeekGab and GigGab.
- 13:50Dave Hamilton: Everything. I think I'm near the top of the list of contributors.
- 13:54Shannon Jean: You must be. You're probably number six. And so,
- 13:59Shannon Jean: the arrogance, the hubris, the hypocrisy.
- 14:03Dave Hamilton: No, see, you've got to stop. This is where it's not the companies.
- 14:06Dave Hamilton: Let me finish. It's the EU.
- 14:08Shannon Jean: I was going to say this EU rule, but I believe, especially Anthropic,
- 14:14Shannon Jean: they're very into regulatory capture.
- 14:17Shannon Jean: They want to be, you know, regulate me into this.
- 14:24Dave Hamilton: They love it. I think all of the AI companies love it because the more you can
- 14:29Dave Hamilton: do to keep people from— The authors out. Correct. Yep. Others out. It's gatekeeping.
- 14:34Shannon Jean: But for them to now tell us everything we scrape from you, if you take.
- 14:39Dave Hamilton: It out in some other— But they're not telling us this. This is why I'm going
- 14:41Dave Hamilton: to interrupt you. It's the EU forcing them to.
- 14:45Shannon Jean: But I would bet dollars to donuts that Anthropic in the EU has helped get that
- 14:52Shannon Jean: passed because it helps them.
- 14:54Shannon Jean: Because the more levels of regulation and.
- 14:58Dave Hamilton: Control they can get.
- 15:00Dave Hamilton: You use conspiracy theory. Well, yeah, yeah, yeah. You used a term last week about Anthropic.
- 15:06Dave Hamilton: That's a it's and I'm not going to blame you for this. It is a term that is so terribly misused.
- 15:11Dave Hamilton: You said they were virtue signal signalers.
- 15:14Dave Hamilton: And it like I think that term doesn't mean what you think it means. Right. It is.
- 15:20Shannon Jean: And I've seen that movie. OK.
- 15:21Dave Hamilton: Yeah. I think what Anthropic does is, Anthropic wants to be seen as the company
- 15:32Dave Hamilton: that is doing it better right like and and every but as we talked about that
- 15:39Dave Hamilton: was true of open ai too right open ai yeah literally these
- 15:43Shannon Jean: Companies and and we kind of have a duop.
- 15:44Dave Hamilton: Duopoly we have a try we have a try try yeah okay don't mustn't forget about google you know
- 15:50Shannon Jean: I get it yeah that's.
- 15:52Dave Hamilton: Right and open ai exists because google was couldn't be trusted with this technology
- 15:59Dave Hamilton: and then And, of course, Anthropic exists because OpenAI couldn't be trusted with this technology.
- 16:06Dave Hamilton: And now Google's employees like number 13 and 50 or something have left to start
- 16:16Dave Hamilton: a new AI company because no one else can be trusted with it.
- 16:19Dave Hamilton: And guess who's investing in the company that they are starting?
- 16:24Dave Hamilton: Alphabet, of course, is investing in it. Of course. Yeah. their employees' value is known to them.
- 16:30Shannon Jean: They have all the money.
- 16:30Dave Hamilton: Well, but they also know that these are smart employees. We should invest in them. Yes.
- 16:34Shannon Jean: Yeah. I don't want my biggest, I will just say this, and I don't want to get
- 16:38Shannon Jean: too far in the weeds in this because I know you have some good use.
- 16:41Shannon Jean: Yeah. My biggest concern, and the reason I talk about this, is I don't want
- 16:44Shannon Jean: some sort of high-level tech government intervention that is in charge of information.
- 16:54Shannon Jean: That's my biggest concern here. I don't want.
- 16:57Dave Hamilton: But I think you're too quick to blame anthropic oh yeah yeah because I because
- 17:01Dave Hamilton: if Google maybe who has all the money was against this
- 17:06Dave Hamilton: They would also they would not have let anthropic run to the EU and and do this.
- 17:13Dave Hamilton: Google would have gone and stopped it. They did not.
- 17:16Shannon Jean: Yeah, maybe.
- 17:16Dave Hamilton: Open AI would have gone and stopped. Open AI and Google would have teamed up
- 17:20Dave Hamilton: and stopped this if they could.
- 17:23Dave Hamilton: And they did if they could. Yeah. And so I don't think that this is like the
- 17:27Dave Hamilton: anthropic like Occam's razor says that this is not anthropic teaming up.
- 17:32Shannon Jean: They certainly want regulatory capture in the United States.
- 17:36Shannon Jean: Yeah, they all do. And I think they're trying to protect their turf.
- 17:39Shannon Jean: Of course. And if I was running those businesses, I'd probably do the same thing. You know, but I get it.
- 17:45Dave Hamilton: So I think we have to expect to see. There is no solution. But I have some answers.
- 17:51Dave Hamilton: Perfect. I think we have to expect to see this from other models was really
- 17:54Dave Hamilton: kind of the point of that six-minute diatribe. Yes.
- 17:58Dave Hamilton: The way that they're doing it is
- 18:02Dave Hamilton: they're not putting like special hidden characters in or anything like that
- 18:07Dave Hamilton: as i understand it the way they're doing it
- 18:10Dave Hamilton: is when a phrase is given a set of input um when a phrase is being generated
- 18:20Dave Hamilton: uh you might say uh it but you know maybe it's describing this episode and it
- 18:26Dave Hamilton: could say, you know, Shannon,
- 18:28Dave Hamilton: uh, got, uh, when, when talking about this, Shannon got, and now it has to pick
- 18:33Dave Hamilton: the next word, right? Um, and,
- 18:36Dave Hamilton: It could say animated. It could say enthusiastic.
- 18:41Dave Hamilton: It could say loud, right? Whatever. Like there's many things that would be correct as that thing.
- 18:49Dave Hamilton: And it's the word choice in certain places, in certain types of phrases that
- 18:56Dave Hamilton: will be the text-based watermark.
- 19:00Dave Hamilton: That's how this is being done. But the other thing is it's not deterministic.
- 19:05Dave Hamilton: Deterministic is a term that we nerds nerdy programmers use um
- 19:10Dave Hamilton: What it means is if you give something one set of input
- 19:15Dave Hamilton: and it's a quote-unquote randomizer will the output be the same
- 19:20Dave Hamilton: that's deterministic and that's not random i know but like when you're creating
- 19:23Dave Hamilton: a hash of things a hash is deterministic you put in the same input you get this
- 19:27Dave Hamilton: thing out and you can know okay the same input was put in and that's how passwords
- 19:31Dave Hamilton: are stored can't go backwards from a hash right So
- 19:34Dave Hamilton: If I get the hash of your password, I don't know what to do with it.
- 19:37Dave Hamilton: I can't do anything with it.
- 19:38Dave Hamilton: But if somebody else types the same thing at me and it matches that hash through
- 19:42Dave Hamilton: the same formula, now I know they also typed your password, which is why you
- 19:46Dave Hamilton: can hack a password with brute force because it's deterministic.
- 19:52Dave Hamilton: This is not deterministic. So it might come up with a different thing.
- 19:57Dave Hamilton: But in the grand scheme of things it's going to come up with the same types of things and that's how
- 20:03Dave Hamilton: it is go that's how it is watermarking things got it so if you change enough
- 20:09Dave Hamilton: of the words if you took something from say claude today
- 20:14Dave Hamilton: yes and ran it and said okay you know you gave claude a transcript of your meeting
- 20:18Dave Hamilton: you know to take what we're talking about last week and said summarize this
- 20:21Dave Hamilton: for me it would do its watermarking things with that you know then if you took
- 20:26Dave Hamilton: that transcript and said,
- 20:27Dave Hamilton: rewrite this, you know, and put it into,
- 20:30Dave Hamilton: you know, Apple's LLM or JGBT or whatever, some LLM that hasn't yet.
- 20:38Dave Hamilton: Begun watermarking and it would rewrite it for you and not have the watermarks
- 20:44Dave Hamilton: But it may or may not be the same like you might like what claude wrote better
- 20:48Dave Hamilton: like it might be better at this than than whatever you're choosing to use so
- 20:52Dave Hamilton: that's that's like that's how it's working i did find on
- 20:58Dave Hamilton: uh on github there is a watermarks remover script and i'll put a link in the show notes Yep.
- 21:05Dave Hamilton: Strip multi-vendor AI provenance marks, Unicode text hygiene,
- 21:09Dave Hamilton: statistical rewrite hooks, and metadata from HTML documents,
- 21:15Dave Hamilton: PNG, all of those things.
- 21:16Dave Hamilton: It's called watermarks remover, and it's a little agent skill and Python service
- 21:21Dave Hamilton: to strip all of these things out.
- 21:24Dave Hamilton: But it says it might make the quality worse. Of course it will.
- 21:32Dave Hamilton: It's doing it by changing it. That's the only way.
- 21:35Shannon Jean: I'm going to withhold judgment until we see what the other companies do.
- 21:40Dave Hamilton: That's what we need to find out is who's going to implement this best.
- 21:44Shannon Jean: Maybe there's a more graceful way to do it or something like that.
- 21:50Shannon Jean: And I'm sure they're learning from the way that Anthropic ruled it out.
- 21:56Shannon Jean: Everybody's like, wait, what?
- 21:58Dave Hamilton: Yeah, Anthropic took it on the chin for this, for sure. Yeah, they did.
- 22:02Shannon Jean: And so, but I mean, I do give them props for not worrying about being the first
- 22:07Shannon Jean: and knowing that, hey, we may look bad or whatever it is. Yeah,
- 22:10Shannon Jean: it's an interesting topic. I'm sure we will revisit.
- 22:12Dave Hamilton: What you said two weeks ago is that this kind of thing is on brand for Anthropic to embrace.
- 22:21Dave Hamilton: Correct. Right? And so because it's on brand for them, I think they probably earned more money.
- 22:27Dave Hamilton: Then they then it cost them probably in in coming out and saying this is because
- 22:34Dave Hamilton: they've been attracting customers for a long time by saying we're we're the
- 22:38Dave Hamilton: ones that are doing it right or.
- 22:40Shannon Jean: Yeah, we're the safe words.
- 22:41Dave Hamilton: Yeah. Through the through the proper interpretation is we're the ones that are
- 22:45Dave Hamilton: trying to be transparent about what we're doing by actually not being transparent
- 22:50Dave Hamilton: at all about what we're doing. Right. Yes.
- 22:52Shannon Jean: Building Skynet. Yes.
- 22:53Dave Hamilton: Yeah, exactly. But but like it is on brand for them.
- 22:57Dave Hamilton: This is the talk that they talk even though the walk is slightly different um
- 23:02Dave Hamilton: yes you know but that's that's how they work so i like i think it makes sense
- 23:06Dave Hamilton: for them to take credit for this when no one else wants to right
- 23:12Shannon Jean: You know makes sense yeah so i'm interesting how it all shakes out same i think
- 23:16Shannon Jean: there's going to be a lot of those kind of tools that are quote watermark remover
- 23:20Shannon Jean: not that i'm not even a cut and paste ai person i mean same you know this,
- 23:25Shannon Jean: i that's just not my my vibe but uh i do have it summarize a lot of stuff like
- 23:30Shannon Jean: you know conversations slack group work or during a week period all that kind
- 23:34Shannon Jean: of stuff and you know i just uh it's just the way it all went down it rubs me
- 23:38Shannon Jean: a little wrong way but you know i've been known to let that happen,
- 23:40Shannon Jean: but it's great great discussion to have we'll see how it all works out what's
- 23:44Shannon Jean: the big takeaway this week.
- 23:45Dave Hamilton: I think the big tape takeaway is i mean i i said it with regards to ai you know
- 23:50Dave Hamilton: teach your staff to use as much AI as they need.
- 23:53Dave Hamilton: But perhaps the big takeaway is teach your staff to use the tools that they
- 23:59Dave Hamilton: need and discuss the cost with you.
- 24:03Dave Hamilton: And maybe a better way to summarize that is teach your staff not to assume that
- 24:09Dave Hamilton: any given tool is too expensive.
- 24:12Shannon Jean: Yeah, I love it. That's great. I love it. So if you want to,
- 24:15Shannon Jean: we're going to dig deeper into this in our business blueprints if you want to
- 24:19Shannon Jean: download that it'll be up after this episode at businessbrain.show.
- 24:23Dave Hamilton: Slash blueprint thanks for hanging out folks
- 24:27Dave Hamilton: Business plane. Oh, man. What? You know what? Just go to the link.
- 24:30Dave Hamilton: He said it's way easier than me trying to say it again.
- 24:33Dave Hamilton: Have a great weekend, folks. Keep living that charmed life. We'll see you next week.
- 24:37Shannon Jean: See ya.