WEBVTT

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Imagine a world where truly groundbreaking technology

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like AI promises to transform, well, everything,

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every industry, every process. Now, pick your

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almost all of those big efforts just not delivering.

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It's kind of this quiet crisis happening. Yeah,

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totally. It feels a lot like, you know, bolting

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a jet engine onto an old horse cart, doesn't

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it? Exactly. The idea sounds cool, maybe, but

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the reality, that ride is going to get messy,

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spectacularly messy fast. So today we're going

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to peel back the layers, try and understand why

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that like 95 % failure rate is so common. And

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crucially, how you can be among the successful

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5%. Right. Welcome to the Deep Dive. Our mission

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today is pretty straightforward. Give you a clear,

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actionable way to think about AI implementation.

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Exactly. We're diving deep into this critical

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issue, the staggering failure rate of automation

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projects in the AI space. We'll unpack the core

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reasons, drawing on some recent analyses, including

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work by Max Anne. But hey, it's not all like

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doom and gloom here. Actually, it's quite the

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opposite when you look at it, right? We're then

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going to reveal this proven three -phase framework.

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It's called the Morningside Method. This is apparently

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what the successful few are using. Okay. And

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the key. It's all about focusing on the process

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first. not the technology, turning that internal

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chaos into actual growth. So you're basically

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getting a strategic roadmap to make AI work for

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you. Okay, let's really dig into this. You see

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the headlines about AI everywhere, right? But

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the reality for... Most businesses, it's pretty

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stark. Research, and this includes sources like

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MIT, consistently shows that a shocking 95 %

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of enterprise AI initiatives. 95? Yeah, those

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big expensive projects, they just... failed to

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deliver any real measurable return on investment.

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It really is that jet engine on a horse cart

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problem. It is. Companies are trying to attach

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this incredibly powerful, like cutting edge AI

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onto their old, often kind of broken internal

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systems. Right. The foundation isn't there. Exactly.

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And, you know, a huge piece of that is what this

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analysis calls organized chaos. Most businesses,

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they're living in it. Organized chaos. I like

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that. Yeah, me too. They're data. It's like.

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scattered everywhere, disconnected spreadsheets,

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old legacy apps, their processes, often just

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a tangle of how we've always done it, usually

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undocumented, held together by like duct tape

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in someone's memory. Tribal knowledge. Totally.

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So plugging powerful AI into that, it isn't going

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to speed things up in a good way. It just amplifies

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the mess. Magnifies the existing process. Exponentially.

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You get garbage in, garbage out, but like faster

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than ever before. It's more like a spectacular

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explosion than... acceleration honestly mm -hmm

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and beyond just that internal mess another major

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issue is the copycat strategy ah yes you see

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companies chasing the hype right just mimicking

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what maybe a competitor is doing or some trendy

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startup without really thinking if it fits them

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exactly No deep strategic look at their own unique

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needs. They're not asking what specific problem

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are we trying to solve here or how does this

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actually align with our business goals. So they

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end up with these expensive totally irrelevant

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solutions. Precisely. It's a recipe for failure.

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But you know the deepest root and this is what's

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really fascinating because it gets overlooked

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so often is the human problem. OK. Tell me more.

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Well. Companies pour millions into the tech.

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Right. And then they completely forget about

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their employees. The, you know, emotional, often

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fearful people who actually have to use this

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stuff. Right. Change is hard. It is. You've got

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people resisting change. Maybe they lack proper

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training or they're just plain uncomfortable

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with new ways of working. Ignoring these human

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barriers, fear of job loss, the like a mental

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load of prompt engineering, the discomfort of

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shifting roles, it almost guarantees things won't

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stick. It's easy to focus on the shiny tech.

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So easy. But the human element, it's incredibly

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powerful. I mean, honestly, I still wrestle with

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prompt drift myself sometimes. Prompt drift.

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Explain that quickly. Yeah, it's basically when

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the AI's output kind of subtly changes over time,

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even with small shifts in how you ask it things.

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Seeing how even tiny changes like that can just

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throw a whole team off their rhythm. It's tricky.

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So when we boil it all down, why do most AI projects

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fail? What's the fundamental issue? It really

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seems to consistently be focusing on the flashy

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technology before truly understanding and, you

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know, streamlining the messy internal processes

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and the people involved. Okay. So this huge 95

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% failure rate, it sounds daunting, but the perspective

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here is that it's not just a problem. No, not

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at all. For those who approach AI smartly, it's

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framed as an enormous opportunity. Exactly. It's

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like everyone else is digging for gold over there

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in the wrong spot and you've just found the map

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to the actual mother load. Interesting analogy.

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So for business owners. For business owners,

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this is how you get what they call an unfair

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competitive advantage. Unfair advantage. Okay.

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Yeah. While your competitors are like wasting

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time and money on these chaotic failed projects,

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you can quietly build a really durable AI powered

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advantage. Durable meaning sustainable. Right.

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This isn't just like a small improvement. This

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could genuinely help you. dominate your industry

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for years, you're building on a solid foundation.

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What about for entrepreneurs, agency owners?

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Oh, for them, it's framed as nothing short of

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a gold rush opportunity. Seriously. A gold rush.

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Think about it. Millions of businesses desperately

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want the power of AI. They see the potential

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buzzwords, but they have absolutely no clue how

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to get a real measurable return. They need help

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navigating it. Totally. The market is wide open

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for people who can step in and become that expert

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guide, the ones who can actually deliver results.

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So what kind of expertise wins big in this AI

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gold rush? It's really being that expert guide

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who brings AI power effectively and profitably

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to businesses that genuinely need it. Okay, this

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is where it gets really practical. The framework

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highlighted, the Morningside Method. It starts

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with three distinct phases. Phase one is education

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and alignment. And this is the one almost everyone

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skips. Right. Why is it so important? Think of

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it like the mission briefing before big operation.

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You got to get all the leaders, all the generals

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on the same page first. Show them the map, the

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objective. Exactly. The main goal here is to

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establish a really clear strategic vision for

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how AI is actually going to fit into this specific

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company. So alignment is key. Totally key. It

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means getting the entire leadership team completely

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on board. They need to understand the strategy,

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the terminology, what are we even talking about

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here, and the real opportunities, usually through

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focused AI leadership workshops. Makes sense.

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Because without that shared understanding, any

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talk about transformation is just, well, it's

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just noise. You can't build something coherent

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if everyone's speaking a different language about

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it. And there's this interesting tactic, Pinchin,

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the inception tactic. Yeah, what the? Explain

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that. It's about doing the education before specific

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recommendations. Precisely. This vital education

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process, getting them up to speed, happens before

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you even start pitching specific AI tools or

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projects. Because it ensures the leadership is

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already bought into your logic and terminology

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first. They understand the why behind your approach

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before you present the what. Ah, so it smooths

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the path for approvals later. Massively smoother.

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It's actually a really powerful psychological

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trick for managing change. Get them nodding along

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with the principles first. And then there's this

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visual tool. the AI -first org chart. That sounds

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potentially scary. It sounds scary, but it's

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not about who gets fired or replaced. That's

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not the point here. It's about showing how AI

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can augment the team, how it can create new efficiencies,

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maybe even new roles, new capabilities they didn't

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have before. So visualizing the future state.

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Exactly. It helps leadership really visualize

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that final destination of the transformation,

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helps them see the potential of their people

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working with AI not being replaced by it. So

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let's recap phase one. Before any building starts,

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why is educating that leadership team so profoundly

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crucial? Fundamentally, it establishes that shared

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strategic vision and it solidifies their buy

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-in for everything that comes next. Got it. Okay.

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So leadership is aligned, clear vision in place.

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Phase two then shifts gears to a deep business

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investigation. Right. And the goal here is ambitious.

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Understand the company better than they understand

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themselves. Yeah. Become the absolute expert

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on how their business actually functions day

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to day, including all those messy, inefficient

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bits they've just, you know, learned to live

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with over the years. So how do you do that? Step

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one. Step one is comprehensive interviews. Think

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of it like taking the patient history when diagnosing

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an illness. Talking to people. Talking to everyone.

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Yes, department heads, sure. But crucially, also

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the frontline staff. The people doing the actual

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work. On the ground insights. Exactly. You really

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dig into their daily challenges, their frustrations,

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what takes up all their time. You're trying to

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uncover those deep insights that, you know, spreadsheets

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and reports will just never show you. Okay. Interviews

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first. Then step two. Step two is developing

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the process map. This is like giving the business

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an MRI scan. A visual map of workflows. Yeah.

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Using tools, maybe like Figma or similar, to

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visually map out all the core workflows end -to

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-end, how does information really flow? Where

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are the handoffs? I bet for many clients that's

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eye -opening itself. Oh, absolutely. For many,

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this visual map is the very first objective look

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they've ever had at how their business actually

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operates. It can be a huge aha moment. Suddenly,

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bottlenecks just jump off the page. Okay, interviews,

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process math, step three. Step three is use case

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identification. And this, they say, is where

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the amateurs get separated from the experts.

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How so? You take that detailed process map you

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just built and you compare it against a carefully

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curated database of proven real world AI systems.

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Ah, so not just brainstorming AI ideas, but matching

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problems to existing solutions. Exactly. Pinpointing

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the exact bottlenecks like manual data entry,

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endless report writing, super repetitive. customer

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queries, and matching them to AI tools already

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working out there in the real world. Proven solutions.

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Yes. Focus on solutions already in production,

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not like experimental moonshots. We're talking

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about leveraging specialized AI services for

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specific repetitive tasks, like, say, using a

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transcription API to turn meeting notes into

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text for automated summaries. Not trying to build

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a brand new AI model from scratch to write a

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novel. Got it. Practical application. And the

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final step. Step four. Finally, step four is

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opportunity grading and validation. Okay. What

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does that involve? You take all those potential

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opportunities you identified and plot them on

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a simple matrix. Usually it's value versus difficulty.

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Value versus difficulty. Makes sense. Yeah. It

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helps you prioritize. You want a mix of quick

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wins, high value, low difficulty for that immediate

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ROI, and maybe some big swings, high value, higher

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difficulty for longer term advantage. And validation.

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Crucially, this involves dual validation. You

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need buy -in from both the employees who are

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actually doing the work, do they agree this is

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a real problem, and from leadership for the strategic

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fit. So bottom -up and top -down validation.

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Exactly, the end result of all this. A comprehensive

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AI strategy roadmap, often like 50, 100 pages

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detailing the plan. Okay, so focusing on phase

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two again. How do you make sure those AI opportunities

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you identify aren't just theoretical, but are

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actually practical and will be accepted by the

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team? It comes down to validating the problems

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directly with the employees experiencing them

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and then securing that leadership buy -in for

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the strategic alignment. Dual validation. Right.

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Okay. Makes sense. We'll take a quick break here.

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Sounds good. Sponsor read. All right. We're back.

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We've got leadership aligned from phase one and

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a clear validated roadmap from phase two. Now,

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phase three is where we actually turn that plan

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into growth. development and implementation yeah

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this is where the rubber meets the road as they

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say where the planning turns into tangible results

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and there's a key rule here to start with oh

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yeah absolutely paramount the quick win rule

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which is always always start with the quick win

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not the big flashy project never never ever begin

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with some massive six -month multi -million dollar

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moonshot project that is just a guaranteed way

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to lose trust lose momentum really fast so start

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small Get runs on the board. Exactly. You build

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credibility. You build enthusiasm by tackling

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projects that blend high impact with low difficulty.

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Get that immediate, tangible ROI first. That

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makes sense. Build momentum. And whoa, just imagine

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taking one of those maybe kind of boring, quick

00:13:00.299 --> 00:13:04.220
win solutions, proving its value in one department

00:13:04.220 --> 00:13:07.000
and then scaling it across a whole global enterprise.

00:13:07.320 --> 00:13:10.539
Yeah. The cumulative effect could be. Absolutely

00:13:10.539 --> 00:13:12.700
staggering. It's actually fascinating how much

00:13:12.700 --> 00:13:15.980
power is in those, quote, boring systems. Isn't

00:13:15.980 --> 00:13:19.019
it? For most businesses, the biggest, most profitable

00:13:19.019 --> 00:13:22.220
quick wins, they often solve those just soul

00:13:22.220 --> 00:13:25.200
-crushing manual tasks. Like what? Things like,

00:13:25.240 --> 00:13:27.580
you know, endless manual data entry, copying

00:13:27.580 --> 00:13:29.840
from one system to another, writing the same

00:13:29.840 --> 00:13:32.320
report format over and over, or answering the

00:13:32.320 --> 00:13:34.919
same five customer service questions 80 times

00:13:34.919 --> 00:13:37.500
a day. Stuff nobody wants to do. Exactly. These

00:13:37.500 --> 00:13:40.779
aren't flashy, maybe. But their impact on productivity

00:13:40.779 --> 00:13:44.399
and morale, it's profound. So give me some examples

00:13:44.399 --> 00:13:47.960
of these boring but high -impact tools. Yeah,

00:13:47.960 --> 00:13:50.500
sure. Simple things, really, like smart voice

00:13:50.500 --> 00:13:52.779
agents to route calls correctly the first time,

00:13:52.840 --> 00:13:55.059
intelligent transcription services for meetings

00:13:55.059 --> 00:13:57.379
or notes, or maybe internal document query tools

00:13:57.379 --> 00:13:59.620
so employees can find info without asking someone.

00:13:59.779 --> 00:14:01.799
Things that save time and reduce frustration.

00:14:02.509 --> 00:14:05.809
Precisely. These aren't like super complex algorithms

00:14:05.809 --> 00:14:09.429
needing a team of THDs. They can save hundreds

00:14:09.429 --> 00:14:12.710
of hours a month and easily deliver a six -figure

00:14:12.710 --> 00:14:15.330
ROI. And often from a relatively small investor.

00:14:15.549 --> 00:14:18.980
Often. Think maybe $20 ,000 to $50 ,000 sometimes

00:14:18.980 --> 00:14:22.580
to get started on a specific problem. That kind

00:14:22.580 --> 00:14:25.179
of return. That's a total game changer for most

00:14:25.179 --> 00:14:28.019
businesses. It's about smart, targeted application,

00:14:28.419 --> 00:14:31.299
not just raw AI power. And this whole approach,

00:14:31.440 --> 00:14:33.539
starting with deep understanding and quick wins,

00:14:33.759 --> 00:14:36.960
it also fosters something else. Yeah. Long term

00:14:36.960 --> 00:14:39.379
partnerships. How so? Because you've done that

00:14:39.379 --> 00:14:42.259
deep investigation in phase two, you understand

00:14:42.259 --> 00:14:44.259
their business deeply. You're not just a vendor

00:14:44.259 --> 00:14:46.620
selling a tool. You become a strategic ally.

00:14:46.840 --> 00:14:49.259
A trusted advisor. Exactly. It naturally leads

00:14:49.259 --> 00:14:51.460
to ongoing work, continuous improvement cycles.

00:14:51.600 --> 00:14:53.559
You know where the next opportunity is. And there's

00:14:53.559 --> 00:14:55.539
another angle to the AI upgrade opportunity.

00:14:55.860 --> 00:14:59.080
Right. This is built in every time a new, more

00:14:59.080 --> 00:15:01.440
powerful AI model comes out, which, let's be

00:15:01.440 --> 00:15:03.159
honest, is happening constantly now. All the

00:15:03.159 --> 00:15:05.159
time. It creates a new business opportunity.

00:15:05.419 --> 00:15:07.299
for you if you're the partner. You can go back

00:15:07.299 --> 00:15:09.179
to your existing happy clients and say, hey,

00:15:09.240 --> 00:15:11.539
we can upgrade that system we built for you,

00:15:11.620 --> 00:15:14.120
make it even better, maybe even cheaper to run

00:15:14.120 --> 00:15:16.440
now. Increasing the lifetime value of that client.

00:15:16.740 --> 00:15:19.299
Hugely. It becomes this ongoing positive cycle.

00:15:19.500 --> 00:15:22.200
Okay, so wrapping up phase three. When it comes

00:15:22.200 --> 00:15:24.379
to that initial implementation of AI solutions,

00:15:24.759 --> 00:15:28.080
what's the single most crucial rule to follow?

00:15:28.299 --> 00:15:31.379
Always, always start with those quick wins that

00:15:31.379 --> 00:15:34.899
deliver immediate, tangible ROI, not the massive

00:15:34.899 --> 00:15:37.899
long -term moonshots. Build trust first. Got

00:15:37.899 --> 00:15:40.360
it. So bringing this all together, what does

00:15:40.360 --> 00:15:44.019
this three -phase method mean for you, the listener?

00:15:44.409 --> 00:15:46.289
whether you're maybe building an AI business

00:15:46.289 --> 00:15:49.009
or you're a leader looking to implement AI in

00:15:49.009 --> 00:15:51.090
your company. Well, this playbook offers a pretty

00:15:51.090 --> 00:15:53.309
clear path, regardless of which side you're on.

00:15:53.450 --> 00:15:56.049
Okay, let's take the first group, AI agency owners

00:15:56.049 --> 00:15:58.750
and entrepreneurs. For them, it's really presented

00:15:58.750 --> 00:16:01.309
as a journey, like leveling up over time. How

00:16:01.309 --> 00:16:03.250
does that look? Maybe you start as a no -code

00:16:03.250 --> 00:16:06.409
agency, using those visual drag -and -drop tools

00:16:06.409 --> 00:16:09.509
to automate simpler stuff, learn the ropes, understand

00:16:09.509 --> 00:16:12.169
business processes. Get some experience. Right.

00:16:12.519 --> 00:16:15.200
Then maybe you evolve into a full stack agency,

00:16:15.480 --> 00:16:18.019
bring in developers, build more custom, complex

00:16:18.019 --> 00:16:20.720
solutions for clients. OK. And eventually, after

00:16:20.720 --> 00:16:23.000
years of doing this, really being in the trenches,

00:16:23.159 --> 00:16:25.220
you can become a true transformation partner,

00:16:25.460 --> 00:16:27.639
selling that whole strategic process we've been

00:16:27.639 --> 00:16:30.820
talking about from education through implementation.

00:16:31.220 --> 00:16:33.879
So a growth path for the service providers. Yeah.

00:16:33.940 --> 00:16:36.659
Now, what about for business owners, people inside

00:16:36.659 --> 00:16:39.440
companies wanting to use AI? For them, there

00:16:39.440 --> 00:16:41.600
are really two clear options presented. Option

00:16:41.600 --> 00:16:47.299
one. The DIY AI sounds tough. It is challenging,

00:16:47.399 --> 00:16:49.820
no doubt. But the idea is you take this playbook,

00:16:49.940 --> 00:16:52.080
these phases, start internal conversations, maybe

00:16:52.080 --> 00:16:54.779
run a small audit on just one department. Find

00:16:54.779 --> 00:16:57.419
a pilot project. Build some internal momentum.

00:16:57.679 --> 00:16:59.879
Possible but requires commitment. Definitely

00:16:59.879 --> 00:17:02.080
achievable with persistence and real commitment

00:17:02.080 --> 00:17:05.299
from leadership. And option two. Option two is

00:17:05.299 --> 00:17:08.140
the work with experts path. Hire an agency or

00:17:08.140 --> 00:17:11.059
consultancy. But with a caveat, I assume. A big

00:17:11.059 --> 00:17:15.119
one. You have to choose carefully. Look for partners

00:17:15.119 --> 00:17:18.240
who are genuinely focused on long -term strategic

00:17:18.240 --> 00:17:20.779
relationships, not just trying to make a quick

00:17:20.779 --> 00:17:23.680
sale on some software. And crucially. Crucially,

00:17:23.799 --> 00:17:26.640
make sure they follow a process -first methodology.

00:17:26.960 --> 00:17:29.619
They shouldn't just walk in and immediately start

00:17:29.619 --> 00:17:31.960
recommending flashy tech. They need to do that

00:17:31.960 --> 00:17:35.359
deep dive first. Yes. That distinction, prioritizing

00:17:35.359 --> 00:17:37.819
understanding your existing processes first,

00:17:38.059 --> 00:17:41.160
is absolutely vital for success. Ask them about

00:17:41.160 --> 00:17:43.579
their process. Okay, so for a business owner

00:17:43.579 --> 00:17:46.579
choosing that AI partner, what's the single key

00:17:46.579 --> 00:17:48.819
consideration they need to keep front of mind?

00:17:49.019 --> 00:17:51.420
Just ensure they prioritize that process -first

00:17:51.420 --> 00:17:53.680
methodology over simply trying to sell you the

00:17:53.680 --> 00:17:56.039
latest flashy technology process -first. Okay,

00:17:56.119 --> 00:17:58.680
so let's try to distill the big idea from this

00:17:58.680 --> 00:18:01.319
deep dive. What's the core message? I think it's

00:18:01.319 --> 00:18:03.799
incredibly clear. We're in the middle of a process

00:18:03.799 --> 00:18:05.900
-first revolution when it comes to AI actually

00:18:05.900 --> 00:18:09.390
working. Process -first. Meaning the most powerful

00:18:09.390 --> 00:18:12.829
AI in the world won't help you if your underlying

00:18:12.829 --> 00:18:15.730
business processes, your house, is basically

00:18:15.730 --> 00:18:19.470
on fire. Exactly. The opportunity with AI is

00:18:19.470 --> 00:18:22.450
truly immense, no question. But most people,

00:18:22.569 --> 00:18:24.869
most companies, they're approaching it completely

00:18:24.869 --> 00:18:28.500
backward. How so? They skip those vital first

00:18:28.500 --> 00:18:30.900
steps, the education, the deep identification

00:18:30.900 --> 00:18:33.319
of problems and processes. They jump straight

00:18:33.319 --> 00:18:36.140
to development, thinking the tech itself is the

00:18:36.140 --> 00:18:38.059
answer. It's like trying to paint a house before

00:18:38.059 --> 00:18:40.220
you've even laid the foundation. Perfect analogy.

00:18:40.480 --> 00:18:42.819
It simply doesn't work long term. You might get

00:18:42.819 --> 00:18:45.279
a demo that looks cool, but not sustainable results.

00:18:45.559 --> 00:18:47.920
So real sustainable success, the kind that actually

00:18:47.920 --> 00:18:50.559
drives measurable ROI and gives you a competitive

00:18:50.559 --> 00:18:53.339
edge, comes from following that complete three

00:18:53.339 --> 00:18:56.359
-phase process. Right. First, education for alignment.

00:18:56.539 --> 00:18:58.900
Get everyone on board. Second, identification

00:18:58.900 --> 00:19:01.440
to deeply understand the business reality. And

00:19:01.440 --> 00:19:04.400
only then. Only then. Third, development, implementing

00:19:04.400 --> 00:19:06.759
the right solutions for measurable growth. Starting

00:19:06.759 --> 00:19:09.359
with those quick wins. It really seems the winners

00:19:09.359 --> 00:19:12.250
of this whole AI revolution. won't necessarily

00:19:12.250 --> 00:19:14.690
be the ones with the fanciest algorithms or the

00:19:14.690 --> 00:19:16.970
biggest R &D budgets. Probably not. They'll be

00:19:16.970 --> 00:19:20.170
the ones who fundamentally understand that true,

00:19:20.289 --> 00:19:23.369
lasting transformation always, always starts

00:19:23.369 --> 00:19:26.450
with people and processes. Technology is the

00:19:26.450 --> 00:19:29.289
enabler, not the starting point. So a final thought

00:19:29.289 --> 00:19:31.849
for everyone listening. Maybe reflect on your

00:19:31.849 --> 00:19:34.529
own organization. Is your business experiencing

00:19:34.529 --> 00:19:38.440
its own version of that organized chaos? Yeah.

00:19:38.500 --> 00:19:40.940
Does it maybe need that strategic process first

00:19:40.940 --> 00:19:43.819
approach before you try and bolt on that expensive

00:19:43.819 --> 00:19:47.299
AI jet engine? What stands out to you about starting

00:19:47.299 --> 00:19:49.339
with the process, not just the technology? Something

00:19:49.339 --> 00:19:51.339
to think about. Definitely. Thank you for joining

00:19:51.339 --> 00:19:53.660
us for this deep dive into making AI automation

00:19:53.660 --> 00:19:56.180
actually deliver results. Yeah. Thanks for listening.

00:19:56.299 --> 00:19:58.259
Until next time, keep digging deeper.
