How AI will KILL Indian businesses? : Business case study

Tonight we're taking a closer look at a new technology that's making waves in the world of AI, ChatGPT. ChatGPT. GPT which has taken the world by storm. What happens when something vastly smarter than the smartest person comes along in silicon form? Because on the one hand there's all of this potential. You got to think about how what you do can complement rather than compete with these AI systems. On the other hand there's a huge number of unknowns that could turn out very badly for society. It is going to eliminate a lot of current jobs that's true. We can make much better ones. Hi everybody. In the past one year we have seen some drastic advancements in the artificial intelligence space. ChatGPT is now moving so fast that it's challenging the leadership of Google itself. Mid-journey AI is already threatening the digital artists and with each passing day while our schools and colleges are proudly teaching a century-old syllabus, we are seeing the rise of new AI tools that are challenging the most stable and the most formidable businesses in the world. AI is not science fiction anymore. It's already very much present in our world. There is currently a lot of human interaction with AI. I don't know if I'm certain that there is a protective bubble around creativity that will protect us. I wish I thought that was true. Some companies are developing technologies that allow any actor to speak in any language revolutionizing the dubbing market. You know right now it's kind of a scary moment because the stuff that it can kind of do are things that are kind of jobs that if a creative person is doing that and replaced they have nowhere else to go right. And while most people think this is the first time this is happening, I got to tell you that this has happened over and over and over again every time a revolutionary technology has come up. Computers, robots and artificial intelligence systems are replacing people. They often were kind of middle-class jobs involving blue-collar production, you know, clerical tasks. You know we used to have banks and banks of people who answered phones, who did typing and filing, who reproduced documents, who kept tables of books. Many of those things are now done by machines. All kinds of routine jobs have become automated in the past few years thanks to breakthroughs in technologies like robotics and radio frequency identification, computing and high-speed networking. And this is because AI is not an ordinary technology, it's categorized as a general purpose technology. And the brutal fact is that if you understand the importance of a general purpose technology, you'll be able to build and scale a formidable business in this hyper competitive space. But at the same time, if you ignore it, it's going to kick you out of this market, regardless of how big your business is, regardless of how talented you are as an individual. So understanding and using general purpose technology is literally going to make you or break you in the 21st century, which is why in this episode today, let's try to understand what the hell is a general purpose technology? Why is it such a big deal in the context of AI? What case studies of the past can we learn from in order to predict the future? And most importantly, as a leader and student of business, how can you become a beneficiary of this AI boom in India? Before we get into this video, I want to tell you something very interesting that we have come up for all of our things cool learners who want to become the top 1% growth school has a paid three hour power packed workshop on mastering web of is the founder of growth school and is a very good friend of mine. And you know what, I have convinced web of to do this workshop for free for all things cool learners. Yes, you heard that right? It is completely free. This workshop will help you to learn how you can use AI and chat GPT to get better at your job and become irreplaceable. In a market where companies are cutting costs, being super efficient is going to be critical in the next five years. Whether you are a student, a working professional, a creator, or even a founder, this workshop is going to be super helpful for you. You will learn how to leverage AI and chat GPT to do the job of 10 people in the same amount of time, increasing your earning potential and making you stand out in the job market. Growth School helps people become the top 1% in their field in just three to six months by giving real and practical skills. They have always been the first brand to teach the latest technologies like no code and web three and now AI and chat GPT is what their next workshop is all about. This workshop will be free only for the first 1000 things cool learners. So if you want to upskill yourself with AI, check out the link in the description quickly and join the workshop today. By definition, general purpose technology refers to a type of technological innovation that has a broad and profound impact on the society. And more importantly, they are characterized by their ability to improve productivity, efficiency and innovation. Now the three most important words over here are efficiency, productivity and innovation. And every time a general purpose technology has come up, it has destroyed an industry and simultaneously it has created some game changing opportunities. A classic example of the same is the rise of steam engine. Now steam engine was invented in the early 18th century. And eventually, by the end of the century, it revolutionized multiple industries and transportation not just in Britain, but all around the world. So before the steam engine, textile production was mostly a cottage industry where the workers were using spinning wheels and handlooms in their homes. But after the invention of the steam engine, steam powered spinning and weaving machines started to be used in the industries. And these machines were so so efficient that while a skilled spinner could produce roughly 100 meters of yarn per hour, a steam powered machine could produce up to 10,000 meters of yarn in the same amount of time. So while it needed 100 workers to produce 10,000 yarns per hour, it took only two workers to manage the machine that spun 10,000 yarns per hour. So two workers with machine and low skill could practically produce the output of 100 workers without machines and very high skill. But while most people thought steam engine killed jobs, it actually led to a massive boom in both cotton trade and transportation in Britain. For example, before steam engine trains, you needed to have cotton miles right next to the port at say 10 kilometer range or a 50 kilometer range. And then transportation would be done by horses or mules, which eventually increase the cost of transportation with each increasing kilometer. But after the steam engine and the progress of the railways, now you could have a cotton mill 200 kilometers away from the port. And even then, you could ship your cotton to the port at very less cost and very high speed. In fact, if you remember from our Jamshedji Tata episode, Jamshedji Tata saw the progress of railways in Europe because of which even though Bombay was flooded with textile mills, he decided to set up his textile mill in Nagpur and took advantage of the railways to ship them. This is the reason why in 150 years, British cotton imports increased from around 13 million pounds to more than 1 billion pounds per year. This is how the English built one of the richest countries in the world and eventually went on to conquer the world. So you see what happened? Did steam engine kill jobs or did it create jobs? As it turns out, it did both. So the overall impact of the steam engine was a shift in the nature of jobs where the workers had to transition from traditional manual labor jobs to jobs with new skills and expertise. And the ones who could not adopt these changes, their companies went And this is something that has happened over and over again. For example, Blockbuster couldn't adopt the internet while Netflix became a billion-dollar company by doing the exact same thing. While Indian kings couldn't adopt the naval fleet, the British and French conquered the world just because they knew how to use a general-purpose technology called the three-masted ship. And while Barnes and Nobles went bankrupt because they ignored the internet, Amazon became a trillion-dollar company doing the exact same thing and that is selling books. This is the power of a general-purpose technology. And like I said, AI is a very, very big deal because it is a general-purpose technology. And you know what? There is something absolutely fascinating that I found about the frequency of the general-purpose technology and their direct impact on the world economy. So let's study some data to understand the impact of a general-purpose technology. And eventually you'll be able to understand what sort of impact AI will have on the world economy itself. This is a chart that plots the timeline of the origin of a general-purpose technology. And here you will see that in the 15th century, we had one general-purpose technology. In the 16th century also, we had only one general-purpose technology. But in the 18th century, there were two GPTs. In the 19th century, there were four GPTs. And in the 20th century, there were seven GPTs. So we went from one GPT in 100 years to one GPT in 14.2 years. And now it's just been 20 years into the 21st century. And we've already seen two GPTs, which are nanotechnology and AI. And there's a possibility that even blockchain will get added to this list, which means while the world was changing once in 100 years, now the world is changing every 10 years. And just to give you the impact of this on the world economy, let's have a look at the second chart. This is a graph that shows the GDP of the world. And here you will see that in 1080, we were barely touching $210 billion in world GDP. So a 2x growth took us 500 years, right? But if you look at the past 100 years, we went from 3.4 trillion in 1990 to 108.1 trillion dollars in 2015. Which means in the last century, we have achieved a 30x growth as compared to a 2x growth in 500 years in the last millennial. Now most people will be like, bro, you know what, it's not because of a GPT or some technology. It's because our population has exploded. Because we went from being 300 million in 1080 to 1.6 billion in 1900 to 8 billion today, right? So it's not the tech, it's just that there are more people to work and contribute to the economy. Well, this is the reason why here's the third graph, which shows the GDP per capita. And this directly points out the individual productivity of humans in the 21st century. And here you will see that the GDP per capita has shot up from $1,526 to $12,235 in the past 100 years itself. And if you overlap these graphs, you will clearly see how much of an impact GPT has on human civilization and the world economy itself. So now just like Steam Engine, AI is going to kill a lot of jobs and is going to create a lot of jobs. And just like Handlu viewers, today, regardless of what you are, a software engineer, a thumbnail designer, an accountant, or even an artist, you will go jobless if you do not adapt to AI. But at the same time, if you do what Jamshedji Tata like people did, that is embrace GPT for your business, then you will go on to build an incredible company. So the question is, what is the framework to look at AI? And how do you exactly become a beneficiary of AI? Well, people always remember, every time a GPT comes up, there are always three categories of businesses based on how they react to the rise of AI. And these are enablers, ignorers and users. enablers of a technology are individuals or organizations or factors that contribute to the development, adoption and spread of a particular technology. Now, this may include researchers, inventors, universities, research institutions, investors, or even venture capitalists. The second category of entities are the users of GPT. And here's where there are individuals like you and me, who use the general purpose technology in order to enhance our life. And lastly, you have the ignorers who are reluctant to use the general purpose technology for their advancement. If this is very, very clear to you, let's have a look at the second diagram that categorizes the adopters based on the timing of their adoption. And here's where you have five types of adopters of a technology. The first type are innovators. And these are the people who take up maximum risk and tired products before they turn mainstream. Here's where we saw the rise of Mark Zuckerberg and the Steve Jobs of the computer era. Then the next set of people are the early adopters who have more practical and business oriented approach towards using technology. And here's where you have the earliest users of social media like Barack Obama, who launched a game changing election campaign on Twitter to have an edge over his competitors. Now, after this, you have the early majority, which is the bulk of people who jump into the adoption after the tech becomes mainstream. This is again, mostly people like you and me. Then you have the late majority who are the conservative majority of the audience that use the product because it is becoming mainstream. A simple example of the same are our parents who buy smartphones not because they love it, but because their Nokia is no longer available. And lastly, you have the late laggards like our grandparents, and they start using tech when it is almost about to go outdated. So now the question is, what do we do with all these categories and complex charts of adopters and enablers and users? Well, that is because the fun fact is that the biggest opportunities lie in being an enabler or a user of technology, either as an innovator or as an early adopter. To give you an example of the same in the context of AI in the early 2000s, when no one was even thinking about artificial intelligence, a legendary company called UPS did something absolutely crazy. What they did was, they started installing sensors, GPS devices and telematic systems into their trucks. And they started collecting data from all of these trucks. Now, as you all know, the logistics business is a very, very thin margin business. So in the early 2000s, when you pour in millions of dollars into something called artificial intelligence, it almost looked like a gimmick. But you know what, guys, in the next 10 years, something stunning happened. UPS made a grand announcement that UPS trucks will not take a left turn anymore. Delivery drivers for the United Parcel Service, better known as UPS, won't make left turns. We'll never have a person turn left to deliver on that side. We'll have someone going on the right hand side, someone coming back down the right hand side to avoid those left hand turns. Since UPS implemented a right turn policy in 2004, they have significantly increased profits while reducing emissions and accidents. UPS saves an estimated 10 million gallons of fuel every year just by eliminating left turns. Well, as it turns out, after a decade of data analysis and machine learning, UPS found out that taking left turns was highly inefficient. So just like in India, you can take a free left turn even during red signals, in the US, you can take a free right turn during signals. So because of the data that it collected, UPS realized that waiting at signals to take the shortest route was causing more delays than taking a longer route with right turns. So when UPS trucks deliver their products, they used to take nine right turns and just take one left turn on average. And the way they chose these turns was because of a special navigation system called On-Road Integrated Optimization and Navigation System. But you know what, in spite of this grand announcement, people still thought UPS was kidding. So in the next one year, UPS announced that they had reduced their distance by 747,000 kilometers, saved 190,000 liters of fuel and reduced more than 20,000 metric tons of carbon emissions. This is what shocked the entire logistics industry of America. Now, do you see what happened over here? In spite of AI being very far away from their domain, in spite of they not being a pioneer in AI themselves, UPS became an early adopter of AI for which they hired enablers like scientists and engineers to become a user of a general purpose technology and that too way before anybody else could. Whereas the people and companies who laughed at UPS were now left so far behind that with each passing year, the UPS algorithm is getting smarter and smarter. Whereas other companies are one decade behind because it will take them another 10 years to do something as revolutionary as UPS did. Now, in your context, right now, AI is at the brink of becoming mainstream, whereby the innovators have already made tools like chat, GPT and now is the time of the early adopters who can use AI for their business to get a competitive edge in the market. So the question is, how do you become a beneficiary of AI? Well, it is pretty simple, either be an enabler or be a user. Now, from the user standpoint, the first step would be to find a tool that can give you a multiplier effect to your efficiency. For example, when it comes to our channel, that's ThinkSchool, we are using AI to test regional content, which will serve as a multiplier effect for ThinkSchool's content in all regional languages. Secondly, we are training the team into doing something called prompt engineering to equip the team to become super efficient with their work. In fact, my friend Ansh Mehra did something absolutely crazy with mid-journey AI, whereby he turned our millet thumbnail from this to this. Similarly, if you're a graphic designer, copywriter or a video editor, you can use a tool like Simplified to have a multiplier effect to your skill set. In fact, this tool has an AI writer that can write your blog, social media posts and even your Instagram reels. So when you compete in the market and look for clients, you alone can compete with a graphic designer, a video editor and a copywriter by yourself. This is how AI tools like Simplified can give you an insane competitive edge in the market. And if you act early, you can become a beneficiary of this wave. So this way, instead of competing with AI, you can use AI as a superpower to scale up your business. I list on all the AI tools for all the professions that I could find. So if you can go through that list, you will be able to find which software you need to be aware of in order to have this multiplier effect. For example, if you're a website designer, the key for you would be to learn how to This way, instead of competing with AI, you can use AI as a superpower to scale up your business. Secondly, if you want to be an enabler like a software engineer, there is a very, very big market opportunity opening for all of you with each passing day. And just like the engineers during that time who built great machines for textile companies, now you can build some extraordinary AI tools for every single profession out there. So if you want to be a builder of AI, study the process of chartered accountants and see how you can build AI tools in order to give a multiplier effect to their skill set. Similarly, study hospital processes and see how you can build an AI tool for efficient hospital functioning. And you know what, just like software services became a billion dollar industry, these micro AI tools can help you build a formidable company in this AI wave. And lastly, always remember, every time GPTs come up, they don't replace people, they replace people who don't know how to use a GPT. That's all from my side for today, guys, please have a look at all the study materials in the description. If you learn something valuable, please make sure to hit the like button in order to make YouTube happy. And for more such insightful business and political case studies, please subscribe to our channel. Thank you so much for watching. I will see you in the next one. Bye bye. And to learn more about how you can beat your competition with AI and chat GPT, do check out the growth school workshop that we have for the first 1000 think school learners from the link in the description.