There's one core difference between the people who become dramatically more productive and profitable with AI and the people whose careers and incomes actually suffer from it. In this video, I break down why outsourcing your ideas to AI destroys your economic moat, why anyone with the same tools can replicate AI-generated businesses, and the right way to use AI: amplifying the unique human insight, skill, or workflow you already have. I cover the commodity business problem, the software engineer salary split, and how to apply this framework to your own career, business, or entrepreneurship.
CHAPTERS: 0:00 The Right vs Wrong Way to Use AI 0:27 In This Video 0:51 Storyblocks: Copyright-Safe Stock Media for Creators 2:21 The Core Problem With AI Businesses (No Moat) 2:56 Why AI Value Gets Arbitraged Away 3:22 AI Removes Moats on Steroids 4:09 What People Who Win With AI Do Differently 4:38 Human Insight First, AI Second 5:03 The "Vibe Code Me a Business" Mistake 5:13 Example: The Software Engineer Salary Split 5:57 Winners vs Losers of AI (The Data) 6:31 Don't Delegate Your Brain to AI 6:50 The Best Economic Frame for Using AI 7:08 Example: How This YouTube Channel Uses AI 7:34 Start by Automating Work You Already Do 8:01 Where Vibe-Coded Projects Go Wrong 8:19 Final Thoughts: Make Yourself Unique, Then Add AI
------------------- Clips channel @jonlawclips
I do NOT sell any products of my own. Watch out for scams.
So there's this way that people approach using and making money with AI in their work and
their careers, which I think differentiates the people who do really well because of AI
and become more productive, expand their businesses, and then those who suffer or do worse, not
as a function of not using AI and ignoring these advancements and tools, but actually
as a function of using it in the fundamentally wrong way.
It's an important conversation to have, and it's a pretext to all the hundreds of videos
on this channel that we make covering the updates and advancements in the world of AI.
And so I'm going to explain what that core difference is in how you should versus shouldn't
approach these tools, and then how exactly that can benefit you in your life when you
think about, hey, what should I use?
How should I use it?
And more generally, how do I want to approach my career or business?
That's going to be the video.
It's going to be a quick one today.
Hope you all enjoy and let's go.
So a quick break.
I want to tell you about the sponsor of today's video, and that starts with the feeling that
every creator knows, which is you post a video, and a few minutes later, you get this copyright
claim email from YouTube, and all your revenue for that video is gone, and it was something
completely accidental.
And here is how to stop that from happening.
So the way to do it is a platform called Storyblocks.
It's a human-made stock media library where you can get all of your stock footage, music,
sound effects, B-roll, whatever else you need.
And every asset is made by a real professional musician, artist, or filmmaker, and the library
is millions of assets deep with new content added daily.
Now everything is pre-licensed for commercial and monetized use, and they whitelist your
entire channel, so claims just don't happen if you use stock media from Storyblocks.
Your work is protected forever on unlimited downloads, and they have a plugin so you can
directly use the media from inside of Premiere Pro and After Effects.
So over 150,000 creators and businesses already use Storyblocks, and again, every single download
supports a real working professional.
So to get access to the human-made stock media library for creators and business owners,
you can go to storyblocks.com or this link on the screen or in the description, and if
you click on that link in the description, you get 15% off any annual plan for a limited
time, and that discount only works through this link.
That's Storyblocks, and out of mind, let's get back to the video.
So I want to start with the core problem here, and this is not unique to AI.
It's something that you've seen across every commodity business, or basically any business
where a lot of people can provide the same product or service.
And the problem is exactly that.
If you can use a given artificial intelligence tool or chatbot or workflow or agent to accomplish
something on its own for you, that's great.
The barrier to creating that is simply access to the same tool that you have, which in the
case of most of these platforms is a few dollars a month.
In simple terms, anyone else can do exactly what you have prompted the agent to do if
it proves commercially viable.
And again, that's an entirely endemic economic reality.
Anytime there's something valuable, whether it's a drug, whether it's a dropshipping product
that's doing really well, if there's not IP protection like your patents or your trademarks
on it, then that value spread is going to get arbitraged out, right?
Margins are going to get compressed over time.
And usually there's time for the markets to adjust, like for new manufacturers to start
creating the off-brand version of the drug.
But AI does that on steroids.
Not only is there no moat, but any single other individual who recognizes the economic
value of what the agent or the AI or the tool is doing can replicate it a million times
over by function of the leverage that AI provides.
So not only do you have no moat, if you happen to stumble across a moat, that will get arbitraged
out like this.
And that's not a perfect equation.
It's not like there are no opportunities to go generate value or create businesses with
these AI tools.
But you'll see how this sets up in the frame that I want to present here next, which I
think clarifies this concept and is why some people do really well and some people suffer
as a result of using AI tools in this way.
And that observation is the people who do the best with AI in terms of becoming more
productive, making more money, what they do is they have some human insight or ability,
something novel or unique that they do really well.
And then AI magnifies that.
It elevates it by a factor of 10 or 100 or 1000x.
It lets them do what they already uniquely do really, really well, even better in a more
automated fashion.
And that is what makes AI so incredibly economically valuable.
But the critical differentiator there is that the idea, the insights, the novelty itself
did not come from AI.
That was the human and AI just elevates the human.
And it doesn't have to be human.
It can be a workflow.
It can be something that is IP protected.
But it starts with the human.
And that in of itself is the moat.
And then on the flip side, you see a million people who go ask Claude, hey, make me a business,
make me a website, vibe code me this thing, where the AI is the driving force in identifying
the quote unquote thing that works.
And as an example of this, you can look at the market for software engineers.
And what you're seeing is this kind of split where the top echelon of coders, of programmers
use AI to become incredible, right?
Super programmers where they can be that much more productive using these other AI tools.
But that's because they are so good already.
They have something unique about their approach to it, or they're just they're really good
for whatever set of reasons.
And then you have all these other entry level coders who try and learn coding with AI, and
then they try and go get these jobs and use AI for it.
And those people, their salaries are crashing.
And then the salaries of that top echelon are going vertical.
That is an illustrated example of this concept.
And you can see that in the data extrapolated across all these other domains where the people
or teams who have some idea or insight or workflow or approach and use AI to elevate
it to make themselves vastly more productive and be able to do that thing better.
They are winning because of AI, while the people who outsource their brains, their ideation,
everything to AI lose by function of the lack of novelty of these systems.
And the fact that even if they do find something awesome and it works out well, everyone else
with access to that same set of tools will come in and do the same thing for less money.
And so the warning there to you as far as how I think you should approach AI in your
career or your business or entrepreneurship is don't delegate your brain to AI, because
if you do that, you are as good with anyone else with an Internet connection or a subscription
to that tool.
Rather, I think the best economic frame for using this technology is to take the ideas
you have, the business you have, what you do really, really well, and then helping you
delegate, automate, and scale that fundamental thing.
Another example of that is this YouTube channel where an enormous amount of the work is done
by AI, whether on the communication side, on invoicing, on scripting, outlining, editing.
And none of those things are the core set of insights or the quote-unquote program that
helps the channel do well.
Those are just things that need to get done.
But by doing those things with AI, you get a much stronger business, better margins,
and more time to focus really on the core set of abilities or insights or processes
that help the channel do well.
And that's why a lot of the lowest hanging fruit that we talk about on this channel for
using AI is replicating the work you already do.
It's less so new work, but you already do things that are economically valuable if you're
paid for it or if it generates money.
So start by helping you do that better, and then we can talk about starting a business
with AI or using agents on this new idea or having AI sandbox its own projects.
So I hope that makes sense.
That's a difficult idea to package, but I think it is really a valuable one, and it
is where a lot of the newer, say, vibe-coded-esque projects go wrong.
With that in mind, there's lots more on this channel once you have that thing to help you
go with all these tools and agents and technology to do it better.
So I hope you find those resources helpful, and if not, that AI can aid you, can help
you find that core insight or process or idea that makes you special and you a unique force
in the labor market to then enhance with AI.
That is the video.
Hope you're having a great day wherever you are in the world, and I will see you in the
next one.
Cheers.