Episode Transcript
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Welcome to Kin Wise Conversations, where we explore what it means to integrate AI into our work and lives with care, clarity, and creativity.
Each episode we talk with everyday leaders navigating these powerful tools, balancing innovation with intention and technology with humanity.
I'm your host, Lydia Kumar.
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Today I'm honored to be joined by Jim Cobb, founder of the brand strategy firm, The Bloodhound Group, and a veteran of the advertising industry.
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With decades of experience, Jim has seen firsthand how technology has reshaped marketing from the.com
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era to the rise of ai.
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We'll explore his fascinating work in the science of emotion, including his role in the iconic MasterCard, priceless campaign, and dive into how he's now using AI driven analytics to build stronger brands, enhance customer experience, and scale his business thoughtfully.
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Let's dive into our conversation.
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I'm so excited to have you on the show today, Jim.
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I've known you for a long time, but we had such an interesting conversation a few weeks ago, and I thought I have to have him on the show and hear more about your insights.
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Jim has been working in marketing and owns his own business, and has been in this industry for a long time.
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So I'm really excited for you to introduce yourself, to tell your story how you ended up in this line of work.
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I'm curious about what first led you to.
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Brand strategy into the launch of the Bloodhound group.
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and anything else that might be helpful for listeners to know about who you are and how you approach work? Well, thanks for having me on the show.
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Number one, I started in the advertising industry.
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In the eighties and during that time, we basically, did advertising, marketing, communications for, both small firms, but also some large global organizations.
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And what we began to understand was, this was not about advertising and creativity, but it was really more about how do you build a brand and brand being, what is the intangible values that a company, Can basically label and in into their identity.
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And so we began to understand the financial implications of that and conduct a lot of test markets, which was a little unusual for advertising agencies at the time, so that we could understand how to build brand awareness and value, that allow our clients to actually, create a premium position and.
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Support their premium prices through an enhanced image.
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So we did that for 35 years and, in 2017, I decided to close the agency that I had, grown up in and, really was very attached to, but the economics of the agency business had got to a place where it was very difficult to offer the, full service.
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A full slate of services and achieve profitability.
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So the most unique part of the organization was the brand consulting work.
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And so we decided to create a new company called the Bloodhound Group that just focused on brand research and brand development work, which included new product ideation and helping clients improve their, market offerings.
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When you think about brand and that draw to like, just, I'm gonna take us way back to the very beginning of your story.
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What drew you to marketing and into branding at the beginning? Like why that out of all the things you could have done professionally? Well, when I was in graduate school, I guess it goes back maybe to my father.
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'cause my father was a really good salesperson and when I went to graduate school, I always felt like advertising represented the purest form of salesmanship.
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Because if you could in 30 seconds convey a compelling message and a creative way, then it would allow you basically to have the pinnacle position of salesmanship.
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All right.
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And so I felt like that was kind of, maybe that was a little DNA, you know, coming in where It seemed to be the right thing to do for my career standpoint, but it was also, allowed you to be creative and it was kind of glamorous.
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you could be, related to some big idea that everybody knew about.
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And so it was not something that a lot of my graduate school mates were interested in.
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But, I pursued it and I ended up landing, in, an advertising agency in Raleigh.
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I think you have done so much work over your professional career, it's really impressive the companies that you've worked for and the way that you have been able to launch, your own endeavors that have been very successful.
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And so it's interesting to hear about how that's been a part of your identity and your father and how you wanted to share this.
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Story.
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I think it's really compelling, the way you said advertising is the pinnacle of salesmanship.
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It's like being able to craft that within 30 seconds.
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you talk a little bit on your website about emotion, like great brands being able to trigger emotion that moves people.
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How does that connect with this idea of advertising being this pinnacle of salesmanship, or how does that relate? Well, you know, most, commercials, when you see them, you engage with them, you like them.
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and even if you're not gonna buy the product, a big part of the messaging has to do with likability and, entertainment.
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Mm-hmm.
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And, or relevance.
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So, for many, many years we had great creative guys that did work.
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That was, just phenomenal.
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and when we did research on it in terms of, you know, ad testing and.
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Or we did work that would put it into marketplace and see how it moved.
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Product.
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Some of the, the more creative work always delivered the best results.
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And around 19 98, 19 99, 1 of our researchers who was a PhD started, was reading and communicating with the guys at Harvard who basically.
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Began to bring forth the idea that 90% of the decisions we make are driven by, unconscious motives where we basically move or move to purchase.
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We make the purchase based on a feeling.
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And then we rationalize while we made the purchase, which was very different from the model of most advertising agencies but what we learned was you make the people buy and then they do the logical part of the equation.
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And so then it began to make sense why some guys who are very creative, they understood that intuitively.
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It wasn't like they were trying to match it from a science standpoint, and now we began to understand how that actually worked.
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So he developed the, business partner researcher, whose name was Bruce Hall.
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Bruce developed a working model on how to measure emotions.
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for our advertising.
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We would hook people up to electrodes and show 'em the commercials.
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And we could see exactly what they liked about the commercials based on how they responded emotionally.
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And that became kind of a litmus dust for, sorting good advertising from bad advertising because if they had a real positive response that advertising made more sense to try to move it forward, and to introduce it into the marketplace.
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And probably the most famous campaign that we worked on.
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Was, the campaign for MasterCard, which was the priceless campaign, which did not perform well in traditional ad testing.
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And so we were, partnering with, McCann Erickson out of, New York who had created the campaign.
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they asked us to conduct the emotional engagement research.
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And what we found was the story completion component of the priceless campaign of a dad taking his son to the baseball game for the first time.
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of how you interact with dogs.
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Those, those television commercial scored especially high.
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And so, McCann took that to MasterCard and they said, you know, we really ought to continue down this path because MasterCard, wanted to make sure that they were spending their money.
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when the ad test came back, traditional ad test, which was more of a left brain kind of, you know, what do you think, kind of testing methodology.
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When that came back and it did show very good results, we ended up, you know, be kind of coming the tiebreaker with the research we conducted.
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And so they decided to go forward with the campaign, which I guess they've probably done several thousand commercials by now.
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I watched one of those commercials in my, I'm in an MBA program right now, and in my marketing class we watched one of the priceless commercials as an example of really strong advertising.
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So That's so cool that you, you played a part in that.
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Yeah.
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So the interesting part about advertising and brand development is that typically brands.
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Creates some additional meaning to your life.
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So you're, you are, there may be something in your life that's missing who you are today, plus the brand equals some ideal, image or some ideal, experience that you're constantly pursuing.
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good advertising gives you a little bit of that information.
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It allows you to complete the story.
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the reason the priceless campaign is so powerful, I believe, is because you fill in the blanks in that campaign.
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It gives you cues of, the storylines.
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It allows you to go back to positive memories and think about how the brand related.
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Something in your life.
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And so that is, and so then you fill in the details of when you took your son or when you took your daughter to the ball game.
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And that is, makes it much more compelling because it is highly relevant at that point.
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And relevance is a key driver of brand purchase, you know, so, so our test basically allowed us to, to demonstrate that.
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The research methodology basically worked at an unconscious level, and, it got past, the traditional bias of someone answering a question based on what they think you would Right.
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Hear, you know.
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You know what I was when you were talking, I'm gonna move us to AI because I think you talked about emotion and creativity, which things, these pieces of ourselves, we kind of think about as more qualitative and it's difficult to quantify.
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And then, you were able to take that and really get into the science of it.
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Like what is the science of creativity, what is the science of emotion and how do you use data to help you create something that resonates with people more effectively? and that led to a lot of very successful work.
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did I get that right? I'm gonna pause.
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ultimately, a good research, a good science, you're able to have some sense of, how to recreate it, Uhhuh.
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by understanding the things you need to achieve in the execution of the work that gives you the results you're looking for, right? Right.
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And sometimes those are intuitive and you're lucky, and sometimes they're not.
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And you basically have to learn how to build those into your approach.
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So I guess my question to build on this is now, you know, there's.
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Machine learning has been around for a long time, but generative AI is something that is new and allows us to glean results from large amounts of data in different ways.
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I'm wondering about AI driven analytics and What opportunities do you see there? When did that appear on your radar? And you can talk about machine learning, which has been around longer or generative ai, which is more new.
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When AI became really kind of a thing probably, but, it's been almost two years ago.
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Mm-hmm.
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When it really became a topic, one of the things that I kind of felt like it was gonna be like is a little bit like computers when Mac came out, it basically empowered people to be more creative.
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IBM could never see the potential in it.
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Steve Jobs and his team could, that they could basically create something that would allow anyone to be able to expand their creativity.
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So I was a young advertising guy when all of that occurred, and so when we start talking about ai, I kind of did a flashback.
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And so, you know, this is gonna be kinda like.
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When, apple came out with, personal computers, it's gonna empower people in new ways.
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Things that they won't even haven't even thought about, they will be able to do with ai.
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So we hired a consultant back in 2023 to basically give us a tutorial and to train our team on how to use ai.
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And my first thought was AI would be most useful as a way To automate routine task.
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Mm-hmm.
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Things that you could do, it would take you time to do, you could train, AI to basically do them for you in less time.
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And so anything that was left reigned that was, would take a process, you could shorten that time very quickly with ai.
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That was the kind of the, the idea.
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So we, we trained our team.
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I had, been, you know, we had been developing social media posts for some time where we would, you know, I would work with a writer and that writer would basically work with me on the content that I wanted to deliver on social media.
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And, you know, I worked really hard to train her to have a really good understanding of the voice that I wanted to create in the marketplace.
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And so my challenge to her was, can you train an ai, to basically have the same voice? Over time so that you would just plug in a topic and it would write the articles for us and then we could edit them, make them the way we wanted to, but we'd, eliminate it.
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Eliminate a lot of time that was being, mm-hmm.
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developed.
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So, she did and she got very, very efficient.
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So, you know, my idea was that it would make life more efficient and productive because you would take things which were not necessarily adding value.
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And reduce the amount of time it would take to, to do that work.
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In essence.
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It can add value though, if you train it right? So with ai, just like any kinda research, If you have a really good data base and there's massive data out there now, right? So if you organize the data that you feed into an ai, machine, it can do things and analyze results that would take you days and days to do, and then may actually, you know, reveal, knowledge that you didn't ever.
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Would never have gotten because it looks at it from different perspectives.
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But you have to have a really good data set under any circumstances in order to get the right kind of AI results.
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If you want to do it, have it create something for you and generate something for you.
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It's gotta have a basis of facts from which to generate that outcome.
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So it made an easy leap from, you know, having a research background to going into an understanding of ai.
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Mm-hmm.
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How does, do you have an example of working with clients or an idea that you would like to pursue where you have data that maybe.
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That you've been able to draw these insights from, or you have data that you want to draw insights from, but it's not clean and it's not usable in the current state and how you've navigated that.
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So we're working with two clients right now on, AI driven results.
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And, one of them is, using, newer science, results of, a battery of tests that people take that would allow.
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them to profile their basic, behaviors and match them to the behaviors required for a job.
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So, if a lot of people are really smart at certain things, and they do that very well, they get promoted to a new job.
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And then they're not successful because that new job requires a different type of behavior.
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It may require more leadership, it may require more, oversight.
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And so that becomes a real issue as you begin to look at HR and moving people to our organization.
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But if you are able to gather data on how people behave.
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And you match that to the behavior needed for the new job, then you're able to promote people into areas where you give them a better chance for success, number one.
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And number two, that gives you an opportunity to train them in the areas where they need more, support.
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So if I'm not a natural leader, then I want to send you to a leadership school in order for you to have the behavior set that's required to.
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Perform this job.
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So that is a way that we are looking at AI because it basically gives a recommendation to both the individual who is being profiled, but also to the HR person that's trying to match up the right people for the right function.
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the other, work that we are doing is analyzing, let's say for example, US athlete and we analyze the athlete's, performance on the field.
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In real time, you can run that data, that video stream through an ai bot.
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You can understand basically the areas where that individual needs to improve, and you can do it very quickly, which would currently take a professional looking at it.
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But if a professional builds the model, then you can run any video through it, and that video would automatically give that.
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Say a baseball player, tips on how to improve its swing, and that would be fed into the system and that system would allow, recommendations that come out on the back end based on a professional observation.
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So those are two, examples where we're working with AI to basically create a branded product that adds value to a business or adds value to an individual who is trying to be a better athlete.
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Those are such cool examples, and it's like you have to have the ideal of what you're matching the data against.
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You need the ideal baseball stance, right, so that the AI can evaluate it, or you need the ideal profile of an employee and the characteristics that a business is looking for.
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Correct.
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And so in both cases it requires data.
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It requires a standard set of data that you're basically using.
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So if you have poor data, you'll get poor results.
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Now, the beautiful thing about AI is that it can translate, you know, images very quickly.
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Into something that gives you results or recommendations.
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One of our other clients, does monitoring of brand standards within, restaurant chains.
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One of those is what are their times of operation? And all of those are posted on a window.
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We have one client that used to manually record, dates and times, of operation for retail locations into a questionnaire format, But now they can just take a photograph of it and it automatically populates the form.
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it gives them a way to make that.
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research work and that assessment work that they do for brands, much more efficient.
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Hmm.
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Yeah.
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and we, that's such a new way of being able to process data is like be AI can process visual data in a way that we didn't have in the past.
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How has your mindset about AI.
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Evolved from where it initially started as you've learned more about how the technology works.
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Well, I would say that, it is a tool like a lot of other things.
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And, the more you use the tool, the better you are with the tool.
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And so, I would say that, we've embraced it as a company.
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In a way that we want to really become experts at it so that we can make recommendations to our clients and add value through our consultation, work with them, try to see opportunities for that tool to be used to make, brand experiences better and to the degree that we are, looking at.
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how to use it more effectively just to create content for our own company.
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That allows us to shorten the time it takes to develop white papers or points of view.
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we think it's the tip of the iceberg.
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I don't think people really understood the power of personal computers until, people began To really work on the software that would increase the power of them.
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So I think there are gonna probably be people who are gonna continue to improve The artificial intelligent bots or the, models that allow people to do more things better and faster and more intuitively.
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So, there probably is gonna be a user friendliness about it that will make people less afraid of it.
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and more engaged with it.
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you already see it with Google, you know, you go on and do a traditional online search and it automatically takes you to, an AI driven, result, which provides some insight to the question that you've asked.
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So I think it'll become part of the mainstream of how people.
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Interact online and how they, compose, their thoughts.
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I know that the universities are trying to figure out how do they integrate it into education and, how do they identify where people have actually, done their papers and homework based on an AI generated result versus.
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Actually understanding the topic and writing it themselves.
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Those are all things which we'll kind of work through.
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But I do think that it's not going away.
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It is only gonna change the way we do business and the way we interact with each other.
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When you think about that, branding is built on trust and it's built on emotion.
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How do you think AI is enriching or complicating those relationships? Well, you know, emotion is what is really hard to replicate with a machine.
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I'm not saying it would not be able to show empathy because there are some models out there now that you can plug in, like for coaching, certain, personality, traits and when providing feedback, for example, to an athlete.
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and some athletes need certain.
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Types of experiences and others respond better to other types of experiences in coaching? I think it probably will evolve, but I don't think the emotional part of it is something that's gonna happen immediately.
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I do think that when we think about, brands and empathy and responsiveness and general experience.
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I think it can enhance the experience that people might have by being more responsive and reactive to their needs.
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and how that gets translated as emotion that might translate positively into a positive emotion that, the brand actually cares for me, because it's responsive to my needs.
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That has to do more with the speed in which the individual is receiving, feedback.
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And in some cases it's really hard to tell the difference between a human interaction and one that's driven by machine today.
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To answer your question more specifically, I think it will evolve over time.
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I don't think it will replace the emotional direction that, is needed in order to create the content.
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Do you have a sense of what content you think humans need to be solely responsible for? Like what, where do humans need to be? Just humans.
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And where does AI come in? do you see any things that are sacred for the human behind the work? Or can everything be augmented at this point? what do you predict? where do you predict this goes? Well, there's, there are certain, interactions between individuals.
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The relationships that, are spontaneous and those are, intuitive.
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And so when you're providing counseling, for example, you know, you're looking not for verbal, Cues, you're looking for facial cues.
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I think those things can be taught as well with the ai, but I do think that, in certain cases, that might push the limit of what you would, of responsibility that you might wanna put on a machine in terms of how it affects the individual.
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So anytime there's a high risk.
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of someone being harmed by virtue of an emotional connection that comes outta the machine.
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I think that gets a little bit into the gray area that we have to really be careful to manage properly.
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I mean I think, and I use this kind of loosely, but I think you go to a therapist to listen to you and to respond to you and.
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Based on, the responses that you provide.
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I think that's a high standard that that person has been trained to understand and to respond to the cues, not just verbal, but other cues that the individual gives you.
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I'm not sure that I would put that into the area of artificial intelligence until a heck of a lot more work has been done on it.
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Absolutely.
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And in that same vein, in your work, have there been ethical or confidentiality challenges that you have had to navigate as you integrate ai? Not at this point.
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We haven't really, dealt with that, but, what we are trying to do is understand, the information, if someone puts personal information into a system, you wanna make sure that personal information is, protected.
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I mean, that's just basic data security, but, the way in which the machine.
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Sometimes takes data from different people that it learns from.
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So you just have to be really careful about how you co-mingle information that's being collected in the data sets.
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yeah, that's important.
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it should not be public.
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Absolutely.
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how do you separate data? How do you make sure your data is not, intermingled is important for data clarity of insights as well.
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Yeah, because there are certain, experiences that we have across different people, you know, our different experiences with different brands or, individuals that provides a collective understanding and knowledge that we use to make future judgements, right? that, that's called experience.
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And so that experience ends up.
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making your life easier or harder based on how you envision, the task at hand.
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Right.
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but that has to do with a lot of different data sets from a lot of different individuals, some of which is confidential, some of it's not.
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And you ha, you know.
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in our brains, we end up, knowing okay, we can, this part of my experience, I can't divulge.
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Mm-hmm.
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I can draw on it, but I can't divulge it.
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Right.
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And I think those are kind of the areas where, you know, a breach in data could create, exposure just like any other breach data we got hackers out there to get into your social security number and everything else.
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So I'm sure those will be, key guidelines that probably will end up being legislated, is my guess in terms of the rules of how that type of data is being used.
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Okay.
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Absolutely.
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I'm gonna ask you to kind of look into the future and think about where you see this technology going.
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It's cool that you were able to see, you know, how personal computers impacted industry.
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And now you're able to see how, AI is, and you saw the.com
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era, now you have ai.
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So these huge technological events have been.
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You've navigated while you've been in the branding industry, and so I'm curious about how you see behavioral science and AI reshaping brand strategy in the next few years.
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Drawing from your experience of seeing huge technological advances reshaping the industry over the past four decades.
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Well, I think that from a behavioral science standpoint, I think a lot of people have been a little bit fearful of how that information is used, but also think it's been very expensive to collect it.
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I think AI will allow us to collect data, around emotions a lot, more efficient, which will make it a lot easier for us to use it in a broader sense, Creating experiences that are more, enjoyable, more efficient.
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A lot of the work that we are looking at today, like in supermarkets and.
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museums where we are actually tracking, how people move through a museum or through a grocery store.
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We know that at certain points, if they dwell in front of a certain area for long enough that that experience, that makes it better.
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if it's highly crowded, then they may not.
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Enjoy the experience that you're looking for them to enjoy.
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So I think in the future, what we'll end up doing is using a lot of this data analysis.
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we'll basically plug in the actual results.
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that we are seeing, but it will allow us to design experiences better.
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So if I'm designing a museum, I might learn from a database of how people interact with, you know, exhibits and, and another museum to, to better design the flow of traffic.
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For the one that I'm getting ready to build.
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So I think it will improve the customer experience in that way, because it'll allow you to use that kind of intuitive data that, you never really understand until people interact with it to make for a better starting point.
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Probably not perfect the experience, but make it a better starting point.
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so.
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I think it probably would help, ultimately in scheduling, algorithms that are very complicated, that would allow us to move from one place to the next more efficiently.
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All of those things could significantly improved future infrastructure.
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and retail and how we behave.
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You already see it on, some of that on online shopping because basically when you're online, it recommends to you, new categories or items that you normally wouldn't be looking for based on your search behavior.
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When you were talking about using data to design a museum, I was thinking you could, use that data to design the type of museum you want to design I think there's things that you communicate through a design about your brand identity or your values, and so you can improve the consumer experience, but also you communicate something through the experience you create.
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And there's many different ways to do that.
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So it's exciting to imagine the possibility of alignment between.
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What a company wants to communicate about who they are and the experience that the person engaging with that company or organization gets to have.
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Yeah.
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Yeah.
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I think that ultimately, a lot of the work that we currently do.
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I'll call it left brained, through ob.
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A lot of times you will observe something, then you record the observation or you do time motion studies.
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All of those kinds of things will become supercharged with ai.
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that allow you to get to the more ideal, points faster, right? we get there today, but it just takes us more trial and effort to get there.
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I think we'll get there faster through AI enabled, learning.
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That's really cool.
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My last question is, what idea or question about AI do you keep thinking about? How do you actually make, you know, how do you scale your business better, with ai? So can, can I use AI in my business to handle, more clients? And I think that becomes a big, economic advantage.
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if, if, if you consider that.
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someone could train, artificial intelligence to basically replace you, then you're thinking the wrong way and way we are trying to think about it is how do we provide more, how can we handle more clients, with a given staff, scale our business up, and at the same time maintain the quality of our, product.
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So for, for me, it's really looking toward how to apply it to scale the business that we, that we have and the kinds of insights and services that we offer.
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That makes sense.
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And it's exciting because there are opportunities to create, To use this data to create enhanced experience, enhanced guidance.
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this kind of takes me full circle back to the beginning of our conversation with our priceless commercial, where you were able to use, data-driven insights to create something that was more resonant with, with people.
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And so you have a tool now that allows you to create a lot more data-driven insights that can allow you to, you know, con connect with the.
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Brands to connect with the people that they're trying to reach, while also, making some of those challenging and kind of dry or admin repetitive tasks easier and automated so you have time to analyze what the data is telling you.
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What a cool conversation with Jim Cobb, thinking about the intersection of brand strategy, human emotion, and artificial intelligence.
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I wanna thank him so much for sharing his journey and deep expertise with us.
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I was particularly struck by how he connects the dots between using neuroscience to understand consumer emotion in the nineties and using AI today to analyze and create better.
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More resonant brand experiences from the evolution of branding to the future of the classroom.
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Join me next time on Kin Weiss Conversations when I'll be speaking with Ben Gordon Sniffen, a guide at the Innovative Alpha School.
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We'll explore their unique two hour learning model, which uses AI powered academics in the morning to create more time for human led passion driven projects in the afternoon.
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It's a fascinating look at how more AI might actually lead to more humanity in our schools.
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To dive deeper in today's topics with Jim, I've put everything for you in one place.
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Just head over to the resource page for this episode at kin wise.org/podcast.
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There you'll find the full transcript links to Jim's Work With Blood, how branding and a list of resources inspired by our conversation for the leaders and teams listening.
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If Jim's insights have you thinking about how to build a real AI strategy for your own work, I invite you to learn more about the Kin Wise Pilot program.
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We partner with organizations to create practical, human-centered professional development and policies that empower your team to use these tools with confidence and care.
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You can learn more at wise.org/pilot.
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if you found value in the conversation, the best way to support the show is to subscribe.
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Leave a quick review or share the episode with a friend.
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It makes a huge difference.
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Until next time, stay curious, stay grounded, and stay kin wise.