August 6, 2023 • 47 mins
In this episode I explore the power of adversity, challenge and how embracing adversarial dynamics enables human beings and Artificial Intelligence (AI) to become relentlessly and exponentially smarter and stronger.
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David Ding (00:00):
Okay.
So this one's about the natureof adversity.
Now, adversity is a hugelybeneficial aspect of nature that
gets overlooked.
And I think in context of youknow decentralized technologies
and you know the nature offreedom, the true nature of
(00:25):
freedom, it's important toaccommodate the benefits of an
adversarial experience.
And I think, if you look at,you know I was having a
conversation with a friend theother day and he was talking
about socialism, and then youknow we were talking about
(00:51):
people who are socialists butwho work in the commercial
sector, and then we're lookingat capitalists who have strong
elements of socialism, and thereality is that the extremes of
(01:13):
both are profoundly detrimental.
However, as with everything,there is a temperate state which
is harmonious.
And so, if you look at so as anexample, with artificial
(01:34):
intelligence, the benefits of anadversarial model are that you
can have a singularity and itcan split its own intelligence,
and it can polarize its ownintelligence, it can attack
itself or play itself at a game,and then it can defend itself
(01:56):
against its own form of attackand it can perpetually, in a
compounding way, get better andbetter and better at defending
itself against a relentlessattack.
And so it's the extremes ofboth.
In that scenario One isrelentlessly and perpetually
(02:18):
seeking to exploit its ownvulnerabilities, and then the
other aspect is seeking toperpetually defend itself
against that attack and when itis exploited, its own
intelligence is increasing, itsexperience is growing and it's
(02:40):
learning how to become strongerand stronger and stronger.
And really, this is the hiddensuperpower of AI, and part of
the reason that it can has thecapability to exponentially grow
and learn and evolve, isbecause it's fearless.
(03:01):
It's absolutely fearless.
It's seeking to exploit its ownvulnerabilities, and this is
why human beings are sointimidated by AI is because we
are terrified of ourvulnerabilities being exploited.
However, there's an aspect ofour own nature that wants our
(03:23):
vulnerabilities to be exploitedrelentlessly so that we can, in
a compounding way, becomestronger and stronger and
stronger.
This is the nature of adversity.
It is the.
When we are in an adversarialenvironment, the only possible
(03:45):
outcome is strength, and this iswhy, at some level, you
actually want yourvulnerabilities to be
relentlessly exploited, becauseat some point, you begin to defy
gravity, at some point youbecome so strong, because of how
(04:12):
persistent you are atexploiting your own
vulnerabilities andstrengthening them, that the
gravity of the environmentaround you has no impact,
whether that be in terms ofwealth generation, whether it be
in terms of your own learningand your investment in your own
(04:32):
learning.
That's an adversarial approach.
The absence of knowing is aweakness, and what you're doing
is you're by learning.
You are rendering what youcurrently believe obsolete in
each moment, and that requirestotal surrender, because you are
(05:00):
what you believe.
And if you're prepared tosurrender what you believe in
each moment to give rise to anemerging truth, then you are
growing relentlessly.
And so how do we exploit theopportunity presented to us by
an adversarial dynamic, and thatis challenge.
(05:29):
Challenge is the fulcrum ofgrowth.
It's the fulcrum of growth.
And so, if you're someone whois seeking to avoid challenges,
you are not growing.
You're either stagnating oryou're going backwards, because
(05:54):
in this reality, you're eitherappreciating or depreciating,
you're expanding or you'recontracting.
There is no stagnant state.
And so if you're avoidingchallenge, you are becoming
(06:14):
weaker and weaker in acompounding way your body, your
mind, your emotions.
The more you are avoidingchallenge, the weaker you are
becoming.
In the same way, the more youare pursuing challenge, the
stronger you are becoming, andit's just a simple fact, a law
of nature, and this is why, when, if you look at AI and if you
(06:46):
view it as a tool to createconvenience, then what you're
doing is you're removingchallenge from your daily life.
Now, you may want to bechallenged in your daily life in
specific ways.
You know, as an artist, as anexample, there are multiple
(07:09):
challenges you go through andmainly, with art, it's the
challenges which ideas not topursue.
You know, the challenge is tobe totally present in the moment
and to allow inspiration toguide the brush or to guide the
(07:31):
stroke, or, if it's music, toallow the sound in your mind to
determine the course of thepiece of music, without question
, without logic.
Now, this is a challenge, andso AI can remove that challenge
(07:58):
because it's adversarial, it'splaying a zero sum game with
itself and it's conquering itsown weakness relentlessly,
fearlessly, and to create adeterministic outcome.
It is profoundly decisivebecause there is a void of fear.
(08:21):
It is not afraid of exploitingits vulnerabilities, because it
is harnessing the benefit ofchallenge to become stronger and
stronger and stronger,perpetually and exponentially
and as close to zero time aspossible.
So challenge, really.
(08:43):
If you're afraid of challenge orif you're trying to avoid
challenge, then your life isgoing backwards, you're not
growing, and so the solution isto obviously focus on challenge,
to introduce challenge and toput it at the forefront of your
life.
And so you might say toyourself, okay, well, okay, I
(09:10):
get this.
But so you know how do I set achallenge?
And that's really simple as youlook at the problems and in
business that you would callthis a problem statement.
You know, if you're about toembark on a project, you begin
(09:32):
with a problem statement.
Or you know, in the startupecosystem, it's quite a common
template for a pitch deck as anexample.
To begin with, the problemstatement, problem solution, and
(09:52):
.
But what I would say is that youknow you need to spend the
majority of your time definingthe problem, and I mean the vast
majority, 80%, if not more.
And I think this is a challengein the job that I currently do,
it's very focused onproductization and delivery of
(10:16):
products.
However, you know, in from myperspective, the delivery of the
product is such a minute partof providing the solution
because I'm prepared to bear aspatient and to listen for as
long as it takes until Iunderstand the actual problem.
(10:40):
You know I won't attempt tosolve it.
I'm not just going to deliver aproduct until I understand the
true nature of the problem, orthe, the or all of the problems
that exist.
Once you know the problem, youcan then set the challenge,
because the problem is where thead, where the potential to
(11:04):
leverage the adversarial dynamicexists, and ad ad where the
adversarial dynamic exists,that's where the growth
potential is.
So all you ever have to do isto identify the problems,
(11:25):
understand the problem, spend aslong as it takes to understand
the problem and then solve it ina fraction of a second.
And it's the same with AI.
You can test this with AI.
You know, if you're using chatGPT and you just type something
in like it's Google, you know,like template for an employment
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agreement, you'll get somethingthat's just not fit for purpose
at all.
You'll get something thathasn't solved a problem.
You'll get something thathasn't elevated you from where
you are right now because youhaven't defined the problem.
So you haven't set a challengefor chat GPT to accomplish.
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And this is if you can adoptthis in your life as an
individual, you will propelyourself or you'll be catapulted
forward in so many aspects ofyour life.
What is the problem?
And you may experiment, you maybe wrong.
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So, as an example, sometimesthere are problems and we
actually don't know what thecause is.
And if you don't know the causeof a problem, then you have to
create a hypothesis, and thenthat's the challenge.
So this is the symptom of theproblem is X?
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What is the cause?
My challenge is to solve theproblem, but I don't know the
cause.
So the fact that I don't knowthe cause really is the
challenge.
And so what's my best guess?
It's a hypothesis based on whatis known to me now, and so the
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challenge is to render myhypothesis valid or invalid, and
that's the mission Very, verysimple.
And so you're seeking to renderyour best guess, your
hypothesis.
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You're looking for evidencethat it's valid and or invalid,
and success is the emergingtruth.
My hypothesis was invalid, sonow I'm going to create a new
hypothesis based on what Ilearned from this failure.
(14:05):
And this is what, how it works.
It's our life works.
When you're charting yourterritory, when you're in growth
mode and you're venturing intothe unknown, you have to make a
guess and be prepared to bewrong, but you celebrate what
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becomes known throughout thecourse of the experiment,
because that's what enables youto create a hypothesis that you
couldn't create before and atsome moment, if you're committed
and devoted to re-hypothesizing, at some point it'll become
valid and eventually you willhave defined the cause of the
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problem.
Maybe you may run fiveexperiments and eventually
you've identified the cause ofthe problem, and so then your
problem statement becomes asolution, and this really is.
(15:15):
And so I want to demonstratethis pattern, because a lot of
so.
I work with Callahan Innovation,I work with early stage
startups, and a lot of peopleare confused about the
transition from R&D, researchand development on to
commercialization.
You know, delivering an MVP, soI want to bring this the
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benefit of the adversarialapproach.
I want to bring it into contextof a product which is a
solution to a problem.
So, if you're still, if you'reexperimenting, what you have to?
Stay devoted to understandingthe problem first.
Now, if you are not speakingdirectly to customers or to
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stakeholders, you're guessing,you're guessing, and so you can
stand up an MVP based on yourassumptions and your hypothesis.
But the ideal scenario is tospeak to customers sooner before
you actually stand up the MVP.
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You know, have a fluid versionof the MVP, have a visual
representation of it, but youcan test your hypothesis with a
concept you know.
You can say if this productwere to exist, would you use it?
Oh, you wouldn't.
Okay, what would have to betrue for you to see value in
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this in order to solve yourproblem?
And they may say well, I don'tactually understand the cause of
this problem, I don't know whythis problem happens.
And this is what R&D is, is youstay the course with that
person.
You don't think about productsor commercialization, you just
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stay with them and solve theproblem.
And once the problem is solved,you can't solve the problem.
You then walk backwards throughwhat you went through to solve
it and you create a product anda business model and an
operating model in place thatcan administer it exactly as it
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happened.
So everything is a hypothesisuntil it's everything is.
You're continuously renderingyour hypothesis invalid until
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you come up with a hypothesisthat is valid and that's
validation.
Once you have validation, youthen have it, have the challenge
.
Sorry, you've validated, you'veovercome the challenge.
Now you can create the solution.
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Problem solution, solution isthis product, with this service,
with this business model, withthis operating model, and you
come up with a valid concept tocreate a solution to the problem
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.
And then you do the same thing.
You've got the concept.
You then go and find evidenceor proof of that concept and
there'll be a whole bunch ofassumptions and a whole bunch of
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other hypothesis you have tomake because you know the
customer or the tester you wereworking with had to make a whole
bunch of assumptions becauseand those assumptions will be
wrong.
And so then you get them to usethe proof of concept.
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You know, business model,operating model, product,
whatever it may be.
You stay with them until theproblem is solved using the
product rather than justconceptually.
Then you've got proof ofconcept.
We made a product, we provideda service, provided an operating
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model, we solved the problemand at the end of it they valued
the solving of that problem at$500 or whatever it might be.
In order to not lose theprivilege of continuing to
receive that product or thatsolution or whatever it may be,
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they're prepared to pay X, proofof concept.
And so you know, the processgoes on.
So this is the nature of anadversarial approach.
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This is the benefit ofadversarial approach is the
perpetual seeking of failure, ofrendering something invalid
until the evidence arises totell you that it actually is
valid.
Then you create the solution.
So in the startup ecosystem, ifyou align yourself with these
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events, this is how you de-riska venture and lots of people.
Now I need to temper this withthe fact that just because there
are lots of funds open andavailable venture capital funds
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and just because they have aportfolio or they have capital
to deploy of $100 million, let'ssay, and you may tick all the
boxes, you may de-risk theopportunity, that doesn't mean
you're guaranteed to raisecapital.
In fact, such a tiny percent ofventures will be able to raise
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capital.
So much of them, many of them,raise their capital through
private capital channels.
So I do want to temper this.
It's not like a black and whitething where, if you check all
these boxes, you're definitelygoing to raise capital and, by
the same token, sometimes youcan raise capital without doing
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any of this stuff.
So you know, but there are bestpractices that will stand you
in good stead.
But really, the topic that I'mwanting to hone in on is the
adversarial approach, thebenefit of an adversarial
approach.
So, with your body as anexample, you've got the
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sympathetic nervous system andthe parasympathetic nervous
system.
One of those systems is seekingto avert risk because it's
trying to avoid death, and theother one is trying to move
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towards life.
So one is trying to expand, theother is trying to contract.
And I've done some prettyfull-on experimentation in this
side of my life and what I'vecome to realise is that If you
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allow, if you become toosympathetic to yourself, if
you're too sympathetic to thechallenge meaning self-pitying
you know you become pitiable,you become a victim.
Then your life contracts, yourbody contracts and the part of
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your nature that is trying to besympathetic to yourself you
begin to curl over and contractin your body.
You know that part of yournature takes over.
Now, if you become focused onovercoming challenge so if
you're setting challenge foryourself and you're
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accomplishing the mission as aresult then then you the
opposite happens.
You stand more upright, youbecome more stronger and you're
embracing challenge.
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And you know I talk about beingmission-led to founders all the
time is well, what's themission?
I know your vision is, I cansee the business model, but
what's the mission?
And you need to know what theproblem is in order to unearth
the challenge, in order toformulate the mission.
And so, in life, your challengemay be if you're all hunched
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over and curled over becauseyou've, you've, you're
relentlessly avoiding thechallenge, then your challenge
is it's huge.
It's huge.
And the result of my experimentwas pretty, was pretty full on,
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because I allowed the extremesof all the aspects of my nature
to totally dominate and controlthe other aspects so I could
come to understand them.
And so when you so, when Iallowed the sympathetic aspect
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of my nature to dominate andcontrol the parasympathetic, the
experience was catatonia,almost like becoming catatonic,
so non-responsive to stimulus.
And by the same token, when theparasympathetic one dominates
and controls the sympatheticaspect of your nature, same
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thing again paralysis throughphysical catatonia.
It's the same for emotional,same for mental.
So the extremes of all of theseaspects of your nature end in
the same place Total paralysis,total stagnation and everything
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shuts down.
So what's the solution?
Of course it's temperance, andI speak about temperance quite a
bit.
So how can I harness the benefitof challenge and the
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adversarial dynamic so that Ican evolve and expand and grow
in a compounding way, and thatis through?
In business you would call thisconsistent, rapid improvement,
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but in your life it's the samething.
So the challenge is to getbetter in some way.
That you're focused on is thatevery day, in some small way,
you're getting better and betterin a compounding way, and
that's by setting dailychallenges that you can
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emissions, that you canaccomplish on a day-to-day basis
and then to have space inbetween.
So when you set the challenge,it's a moment in time.
You accomplish the mission andonce you've accomplished the
mission, you rest, you'resympathetic in the trough and
you're parasympathetic in thepeak.
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You are overcoming adversity inthe peaks and you are
sympathetic and passive in thetroughs and you focus on
devoting yourself to thosemoments in time, creating them
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for yourselves, for yourself, tosuch a degree that there is a,
there is a surplus compoundingeffect.
That means that you can measureyour growth on a day-to-day
basis.
You can see the improvementshappening on a day-to-day basis,
whether it be with your money,whether it be with your strength
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, your speed, your agility, yourvision, your ideas, your
emotions.
That compounding impact everysingle day is how you use
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temperance to embrace both.
And yeah, this is.
I call this a baseline.
This is how you establish abaseline quality of life where
you're able to do things, andyou're able to do things in a
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baseline quality of life, whereyou are leveraging the benefits
of challenge, but you're not ina constant state of adversity,
because that's pure hell.
And in the same way.
If you're in a constant stateof sympathy for yourself, where
you're self-liclimiting, blamingeveryone around you, avoiding
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challenge, that's pure hell aswell.
And if you don't challengeyourself, you'll be just living
in pure hell, whether it'sbecause you're trying to force
yourself through constantadversity or whether you're too
sympathetic to the point whereit's become self-pitying and
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pitiable.
Both of those are states ofliving hell.
Temperance is compounding growth.
That comes out of consistent,repetitive challenge, where you
can measure the growth on aday-to-day basis, and so I just
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want to bring this back into sowhen I finished the
experimentation, I was in a realstate with my health, and I
knew I had to stop and thenbegin the process of
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implementing what I learned, andover the course of 12 months.
So I could barely walk.
I was in a almost fullycatatonic.
My body was all hunched over,I'd put on an incredible amount
of weight and I had allowed mysympathetic nature to completely
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dominate and control the restof my nature, and so it was now
time to set the challenges usingwhat I'd learned.
And I couldn't even walk in thebeginning.
I couldn't walk 20 steps, sothe first time I went for the
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walk, I walked.
So the challenge was 12 months.
And I'm going to walk, I'mgoing to average 5,500 steps a
day over the period of 12 months.
So that's the challenge, that'sthe mission, sorry.
And so the challenge is tocreate incremental progress
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every day.
So I created a baseline of whatI'm capable of doing now.
I walked about 18 steps,something like that.
It was a pretty soberingexperience.
And then went again the nextday, went 20 steps, I think, it
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went 50 the next, and then thebenefit of Fibonacci kicked in,
and the next time I walked Iwalked probably a kilometre.
And so I broke through thatceiling, just through a small,
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maybe four days in a row ofconsistent progress, just
shattered the glass ceiling, andso it went exponentially from
there and it got to the pointeven within, maybe within three
months, I could walk as far as Iwanted to walk, I could walk
four hours a day, eight hours aday, and just through consistent
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commitment to progress.
And, yeah, so over the periodof that 12 months I walked over
I think it was 1.3 million steps, something like that.
And but when you're in thatstate of being almost catatonic
and you can barely move it, ifyou think about walking a
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million steps, if you thinkabout averaging five and a half
thousand steps a day.
You'll never begin.
You'll think that that'simpossible.
And this is the key is you.
You establish what true northis.
You establish what true northis.
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My mission is to, over 12 months, to average five and a half
thousand steps a day and mychallenge is, on a daily basis,
to make incremental improvementsevery single day, and that's
all it is.
The mission never changes.
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True north is true north.
Your North Star changes on aday-to-day basis because
whatever improvements you madeupon the day before, you're just
seeking to raise the bar, andyou know I never, for me
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personally, I didn't determinewhat that bar was.
It's like I didn't go into thenext day saying, okay, I walked
4,000 steps yesterday, so I haveto walk 4,500 today.
I went in with the intention toimprove on the day before and
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then just pushed it to my limitand stopped before the, before
that limit, and it was always animprovement on the previous
effort.
If without fail and I talkabout the I should not don't
need to go into that yet.
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So adversity, you know it can,you can make it.
It could be pure hell whereyou're just forcing yourself to
change relentlessly andimpressively.
Or you can set, create amission and then set a challenge
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.
Set the challenge, thechallenge, my challenge today is
to be incrementally better thanyesterday.
That's it.
And once you, once you've afteryou've set that challenge and
you've accomplished that missionfor that day, then you rest.
You can be as sympathetic asyou want to, because the
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improvements just happening, thegrowth and the strength is just
happening now.
But some sympathy is what'sgonna kill you.
If you, if you're toosympathetic, if you are too
challenge a verse, then you, youfall into a state of what I
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call overcoddling, youovercoddle yourself and you
stagnate entirely and you don'tgrow strong.
And just to tie a bow aroundthis now, what it would say is
that New Zealand currently is ina state of overcoddling and is
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far, far too sympathetic, far,far, far too sympathetic.
And I think our legislation hasbecome extreme to the point
where New Zealand is no longerprepared to challenge itself.
And I think we.
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It's time for this nation to setitself a mission.
What is our mission as a nation?
What it, what?
What are we trying toaccomplish together?
Do we have any clue?
We're just trying to survive,we're just trying to be reactive
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.
We just, we truly were waitingfor the rest of the world to
innovate so that we can besecond movers.
But what is our mission?
How do we want to challengeourselves on a day-to-day basis?
You know we're in a, we're in acoming up to an election and
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lots of people saying that's.
You know, we're in a recession,so we don't have the luxury of
being able to invest ininnovation.
And, of course, a recession isadversity.
It means adversity, and soadversity is the ideal
opportunity to innovate, and andtrue innovation actually comes
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out of adversity, because it'sthe challenge.
It's the challenge that thatadversity presents to us to be
able to come up with ahypothesis, challenge ourselves
to validate or invalidate thathypothesis.
And success is measured becausewe set the challenge to either
(38:29):
to either validate or invalidatethat hypothesis, understanding
that at some point validation ofa hypothesis will be valid and
the mission will be accomplished.
And the failure was part of thejourney to get there.
But we have to set thechallenge.
We have to set the challengeand you know, I see innovators
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in the innovation ecosystem inNew Zealand who the adversity is
.
It's phenomenal the challengethey set themselves, absolutely
phenomenal the relentlessness oftheir pursuit, of standing up
their innovation, of trying toget someone to understand of
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we're getting rejectedrelentlessly.
You know, less than 3% of allpitch decks that cross a VC's
desk will get back therelentlessness it's.
It is incredible and thechallenge is monumental and the
(39:52):
opportunities that are missedbecause people aren't prepared
to stand beside them and de-riskthat venture with them and give
them, create the space for themto fail.
So until something validpresents itself, that buffers
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just isn't there, we're notprepared to stand beside our
innovators and and go on thatmission with them and lift them
back up when they fall over andwhen they fail and it's catch 22
.
Right, there needs to be asurplus that people are prepared
(40:39):
to lose due to failure.
If you, if you experiment,you've got a hypothesis, it's
based on assumptions, the costof that experiment.
You have to be prepared andwilling to lose everything that
you put into it.
So that has to come from asurplus and so it is that.
(41:07):
Does that surplus have to comefrom philanthropy?
Does that have to come fromgrants?
Well, what we find throughCallie and innovation is, you
know, we diffuse grants becausewe know that there's a massive
void, that the private sectorwill not fail to de-risk
(41:31):
opportunities and but Callie andinnovation receives lots of
criticism.
I work for Callie and innovation.
New Zealand's government agencytasks to diffuse, you know, a
significant amount of theinnovation budget for the
(41:51):
government.
And what would happen withoutthat?
The private sector is not goingto de-risk an early stage
venture.
They're not going to invest thetime and energy and effort,
human resources, into enabling afounder to challenge a
(42:13):
hypothesis that's probably goingto fail.
So what's the solution?
We're experiencing adversity asa nation and there's a
narrative arising that we needto tighten the purse strings In
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a moment where the challengepresented is so great that the
potential for innovation couldbe profound.
What's the challenge?
What's the challenge?
Surely it's to generate anongoing surplus.
Now, let's say hypothetically,we decided as a nation yes,
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we're going to generate asurplus, a compounding surplus.
That's true north for us as anation.
So what's what is the challengethat presents itself on a day
to day basis?
Well, what's?
Creating a deficit?
So we may not know the rootcause of the problem, but we
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have to begin experimenting tounearth the root cause of that
problem and then we need tobegin investing in creating
sustainable solutions tooperating in a surplus.
And that needs to be visible.
It needs to be a collective,shared mission that we can all
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embark on together so that wecan grow strong as a nation.
Strength comes from thatchallenge, but we are
overcoddling ourselves as anation.
We do not challenge ourselvesas a nation, we don't stand up
to that adversity, we're tryingto avoid it, and so we're
(44:12):
contracting as a nation.
You see, in order to growstrong, we have to challenge
ourselves, and innovation inadversity is where that strength
will come from.
Challenging a hypothesis,refuting our own conjecture,
(44:39):
being prepared and willing tofail to be wrong so that we can
get stronger this is wherestrength happens.
This is where it occurs.
So how can we?
How can we?
So adversity and the benefit ofthe adversarial approach we see
(45:05):
it in AI, adversarial modelsare profoundly potent.
They get stronger and strongerand stronger, perpetually and
relentlessly.
So how can we embrace this?
By challenging ourselvescollectively as a nation.
Where is the surplus within theNew Zealand innovation ecosystem
(45:31):
?
Well, within the economy even,there are the human beings that
have surplus funds that they'reprepared to lose in the spirit
of embarking upon a mission,because there is an abundance of
founders and innovators who areso undercapitalized that it's
(45:55):
just untrue Barely putting foodon the table, simply challenging
themselves every day, gettingstronger and stronger, failing
fast, being rejected day by day,learning as much as they can.
So how can we stand beside themand fail with them, and embrace
(46:20):
those failures and recognizethat that is the process of
becoming strong?
That's how we become strongeras a nation.
How can we Okay?
So if you are extremely wealthyand you're interested in
assisting innovators, don'thesitate to get in touch, and
(46:48):
there's a plethora of projectsand people who are challenging
their own hypothesis everysingle day in the hope of
building a strong nation.
So how can we Okay?
That's it for now, for thenature of adversity.
Talk to you later.
Okay.
So this one's about the natureof adversity.
Now, adversity is a hugelybeneficial aspect of nature that
gets overlooked.
And I think in context of youknow decentralized technologies
and you know the nature offreedom, the true nature of
(00:25):
freedom, it's important toaccommodate the benefits of an
adversarial experience.
And I think, if you look at,you know I was having a
conversation with a friend theother day and he was talking
about socialism, and then youknow we were talking about
(00:51):
people who are socialists butwho work in the commercial
sector, and then we're lookingat capitalists who have strong
elements of socialism, and thereality is that the extremes of
(01:13):
both are profoundly detrimental.
However, as with everything,there is a temperate state which
is harmonious.
And so, if you look at so as anexample, with artificial
(01:34):
intelligence, the benefits of anadversarial model are that you
can have a singularity and itcan split its own intelligence,
and it can polarize its ownintelligence, it can attack
itself or play itself at a game,and then it can defend itself
(01:56):
against its own form of attackand it can perpetually, in a
compounding way, get better andbetter and better at defending
itself against a relentlessattack.
And so it's the extremes ofboth.
In that scenario One isrelentlessly and perpetually
(02:18):
seeking to exploit its ownvulnerabilities, and then the
other aspect is seeking toperpetually defend itself
against that attack and when itis exploited, its own
intelligence is increasing, itsexperience is growing and it's
(02:40):
learning how to become strongerand stronger and stronger.
And really, this is the hiddensuperpower of AI, and part of
the reason that it can has thecapability to exponentially grow
and learn and evolve, isbecause it's fearless.
(03:01):
It's absolutely fearless.
It's seeking to exploit its ownvulnerabilities, and this is
why human beings are sointimidated by AI is because we
are terrified of ourvulnerabilities being exploited.
However, there's an aspect ofour own nature that wants our
(03:23):
vulnerabilities to be exploitedrelentlessly so that we can, in
a compounding way, becomestronger and stronger and
stronger.
This is the nature of adversity.
It is the.
When we are in an adversarialenvironment, the only possible
(03:45):
outcome is strength, and this iswhy, at some level, you
actually want yourvulnerabilities to be
relentlessly exploited, becauseat some point, you begin to defy
gravity, at some point youbecome so strong, because of how
(04:12):
persistent you are atexploiting your own
vulnerabilities andstrengthening them, that the
gravity of the environmentaround you has no impact,
whether that be in terms ofwealth generation, whether it be
in terms of your own learningand your investment in your own
(04:32):
learning.
That's an adversarial approach.
The absence of knowing is aweakness, and what you're doing
is you're by learning.
You are rendering what youcurrently believe obsolete in
each moment, and that requirestotal surrender, because you are
(05:00):
what you believe.
And if you're prepared tosurrender what you believe in
each moment to give rise to anemerging truth, then you are
growing relentlessly.
And so how do we exploit theopportunity presented to us by
an adversarial dynamic, and thatis challenge.
(05:29):
Challenge is the fulcrum ofgrowth.
It's the fulcrum of growth.
And so, if you're someone whois seeking to avoid challenges,
you are not growing.
You're either stagnating oryou're going backwards, because
(05:54):
in this reality, you're eitherappreciating or depreciating,
you're expanding or you'recontracting.
There is no stagnant state.
And so if you're avoidingchallenge, you are becoming
(06:14):
weaker and weaker in acompounding way your body, your
mind, your emotions.
The more you are avoidingchallenge, the weaker you are
becoming.
In the same way, the more youare pursuing challenge, the
stronger you are becoming, andit's just a simple fact, a law
of nature, and this is why, when, if you look at AI and if you
(06:46):
view it as a tool to createconvenience, then what you're
doing is you're removingchallenge from your daily life.
Now, you may want to bechallenged in your daily life in
specific ways.
You know, as an artist, as anexample, there are multiple
(07:09):
challenges you go through andmainly, with art, it's the
challenges which ideas not topursue.
You know, the challenge is tobe totally present in the moment
and to allow inspiration toguide the brush or to guide the
(07:31):
stroke, or, if it's music, toallow the sound in your mind to
determine the course of thepiece of music, without question
, without logic.
Now, this is a challenge, andso AI can remove that challenge
(07:58):
because it's adversarial, it'splaying a zero sum game with
itself and it's conquering itsown weakness relentlessly,
fearlessly, and to create adeterministic outcome.
It is profoundly decisivebecause there is a void of fear.
(08:21):
It is not afraid of exploitingits vulnerabilities, because it
is harnessing the benefit ofchallenge to become stronger and
stronger and stronger,perpetually and exponentially
and as close to zero time aspossible.
So challenge, really.
(08:43):
If you're afraid of challenge orif you're trying to avoid
challenge, then your life isgoing backwards, you're not
growing, and so the solution isto obviously focus on challenge,
to introduce challenge and toput it at the forefront of your
life.
And so you might say toyourself, okay, well, okay, I
(09:10):
get this.
But so you know how do I set achallenge?
And that's really simple as youlook at the problems and in
business that you would callthis a problem statement.
You know, if you're about toembark on a project, you begin
(09:32):
with a problem statement.
Or you know, in the startupecosystem, it's quite a common
template for a pitch deck as anexample.
To begin with, the problemstatement, problem solution, and
(09:52):
.
But what I would say is that youknow you need to spend the
majority of your time definingthe problem, and I mean the vast
majority, 80%, if not more.
And I think this is a challengein the job that I currently do,
it's very focused onproductization and delivery of
(10:16):
products.
However, you know, in from myperspective, the delivery of the
product is such a minute partof providing the solution
because I'm prepared to bear aspatient and to listen for as
long as it takes until Iunderstand the actual problem.
(10:40):
You know I won't attempt tosolve it.
I'm not just going to deliver aproduct until I understand the
true nature of the problem, orthe, the or all of the problems
that exist.
Once you know the problem, youcan then set the challenge,
because the problem is where thead, where the potential to
(11:04):
leverage the adversarial dynamicexists, and ad ad where the
adversarial dynamic exists,that's where the growth
potential is.
So all you ever have to do isto identify the problems,
(11:25):
understand the problem, spend aslong as it takes to understand
the problem and then solve it ina fraction of a second.
And it's the same with AI.
You can test this with AI.
You know, if you're using chatGPT and you just type something
in like it's Google, you know,like template for an employment
(11:51):
agreement, you'll get somethingthat's just not fit for purpose
at all.
You'll get something thathasn't solved a problem.
You'll get something thathasn't elevated you from where
you are right now because youhaven't defined the problem.
So you haven't set a challengefor chat GPT to accomplish.
(12:15):
And this is if you can adoptthis in your life as an
individual, you will propelyourself or you'll be catapulted
forward in so many aspects ofyour life.
What is the problem?
And you may experiment, you maybe wrong.
(12:39):
So, as an example, sometimesthere are problems and we
actually don't know what thecause is.
And if you don't know the causeof a problem, then you have to
create a hypothesis, and thenthat's the challenge.
So this is the symptom of theproblem is X?
(13:03):
What is the cause?
My challenge is to solve theproblem, but I don't know the
cause.
So the fact that I don't knowthe cause really is the
challenge.
And so what's my best guess?
It's a hypothesis based on whatis known to me now, and so the
(13:25):
challenge is to render myhypothesis valid or invalid, and
that's the mission Very, verysimple.
And so you're seeking to renderyour best guess, your
hypothesis.
(13:45):
You're looking for evidencethat it's valid and or invalid,
and success is the emergingtruth.
My hypothesis was invalid, sonow I'm going to create a new
hypothesis based on what Ilearned from this failure.
(14:05):
And this is what, how it works.
It's our life works.
When you're charting yourterritory, when you're in growth
mode and you're venturing intothe unknown, you have to make a
guess and be prepared to bewrong, but you celebrate what
(14:28):
becomes known throughout thecourse of the experiment,
because that's what enables youto create a hypothesis that you
couldn't create before and atsome moment, if you're committed
and devoted to re-hypothesizing, at some point it'll become
valid and eventually you willhave defined the cause of the
(14:54):
problem.
Maybe you may run fiveexperiments and eventually
you've identified the cause ofthe problem, and so then your
problem statement becomes asolution, and this really is.
(15:15):
And so I want to demonstratethis pattern, because a lot of
so.
I work with Callahan Innovation,I work with early stage
startups, and a lot of peopleare confused about the
transition from R&D, researchand development on to
commercialization.
You know, delivering an MVP, soI want to bring this the
(15:40):
benefit of the adversarialapproach.
I want to bring it into contextof a product which is a
solution to a problem.
So, if you're still, if you'reexperimenting, what you have to?
Stay devoted to understandingthe problem first.
Now, if you are not speakingdirectly to customers or to
(16:04):
stakeholders, you're guessing,you're guessing, and so you can
stand up an MVP based on yourassumptions and your hypothesis.
But the ideal scenario is tospeak to customers sooner before
you actually stand up the MVP.
(16:28):
You know, have a fluid versionof the MVP, have a visual
representation of it, but youcan test your hypothesis with a
concept you know.
You can say if this productwere to exist, would you use it?
Oh, you wouldn't.
Okay, what would have to betrue for you to see value in
(16:50):
this in order to solve yourproblem?
And they may say well, I don'tactually understand the cause of
this problem, I don't know whythis problem happens.
And this is what R&D is, is youstay the course with that
person.
You don't think about productsor commercialization, you just
(17:11):
stay with them and solve theproblem.
And once the problem is solved,you can't solve the problem.
You then walk backwards throughwhat you went through to solve
it and you create a product anda business model and an
operating model in place thatcan administer it exactly as it
(17:32):
happened.
So everything is a hypothesisuntil it's everything is.
You're continuously renderingyour hypothesis invalid until
(17:52):
you come up with a hypothesisthat is valid and that's
validation.
Once you have validation, youthen have it, have the challenge
.
Sorry, you've validated, you'veovercome the challenge.
Now you can create the solution.
(18:14):
Problem solution, solution isthis product, with this service,
with this business model, withthis operating model, and you
come up with a valid concept tocreate a solution to the problem
(18:35):
.
And then you do the same thing.
You've got the concept.
You then go and find evidenceor proof of that concept and
there'll be a whole bunch ofassumptions and a whole bunch of
(18:55):
other hypothesis you have tomake because you know the
customer or the tester you wereworking with had to make a whole
bunch of assumptions becauseand those assumptions will be
wrong.
And so then you get them to usethe proof of concept.
(19:16):
You know, business model,operating model, product,
whatever it may be.
You stay with them until theproblem is solved using the
product rather than justconceptually.
Then you've got proof ofconcept.
We made a product, we provideda service, provided an operating
(19:36):
model, we solved the problemand at the end of it they valued
the solving of that problem at$500 or whatever it might be.
In order to not lose theprivilege of continuing to
receive that product or thatsolution or whatever it may be,
(19:59):
they're prepared to pay X, proofof concept.
And so you know, the processgoes on.
So this is the nature of anadversarial approach.
(20:23):
This is the benefit ofadversarial approach is the
perpetual seeking of failure, ofrendering something invalid
until the evidence arises totell you that it actually is
valid.
Then you create the solution.
So in the startup ecosystem, ifyou align yourself with these
(20:49):
events, this is how you de-riska venture and lots of people.
Now I need to temper this withthe fact that just because there
are lots of funds open andavailable venture capital funds
(21:11):
and just because they have aportfolio or they have capital
to deploy of $100 million, let'ssay, and you may tick all the
boxes, you may de-risk theopportunity, that doesn't mean
you're guaranteed to raisecapital.
In fact, such a tiny percent ofventures will be able to raise
(21:32):
capital.
So much of them, many of them,raise their capital through
private capital channels.
So I do want to temper this.
It's not like a black and whitething where, if you check all
these boxes, you're definitelygoing to raise capital and, by
the same token, sometimes youcan raise capital without doing
(21:52):
any of this stuff.
So you know, but there are bestpractices that will stand you
in good stead.
But really, the topic that I'mwanting to hone in on is the
adversarial approach, thebenefit of an adversarial
approach.
So, with your body as anexample, you've got the
(22:20):
sympathetic nervous system andthe parasympathetic nervous
system.
One of those systems is seekingto avert risk because it's
trying to avoid death, and theother one is trying to move
(22:42):
towards life.
So one is trying to expand, theother is trying to contract.
And I've done some prettyfull-on experimentation in this
side of my life and what I'vecome to realise is that If you
(23:03):
allow, if you become toosympathetic to yourself, if
you're too sympathetic to thechallenge meaning self-pitying
you know you become pitiable,you become a victim.
Then your life contracts, yourbody contracts and the part of
(23:25):
your nature that is trying to besympathetic to yourself you
begin to curl over and contractin your body.
You know that part of yournature takes over.
Now, if you become focused onovercoming challenge so if
you're setting challenge foryourself and you're
(23:46):
accomplishing the mission as aresult then then you the
opposite happens.
You stand more upright, youbecome more stronger and you're
embracing challenge.
(24:07):
And you know I talk about beingmission-led to founders all the
time is well, what's themission?
I know your vision is, I cansee the business model, but
what's the mission?
And you need to know what theproblem is in order to unearth
the challenge, in order toformulate the mission.
And so, in life, your challengemay be if you're all hunched
(24:32):
over and curled over becauseyou've, you've, you're
relentlessly avoiding thechallenge, then your challenge
is it's huge.
It's huge.
And the result of my experimentwas pretty, was pretty full on,
(24:53):
because I allowed the extremesof all the aspects of my nature
to totally dominate and controlthe other aspects so I could
come to understand them.
And so when you so, when Iallowed the sympathetic aspect
(25:16):
of my nature to dominate andcontrol the parasympathetic, the
experience was catatonia,almost like becoming catatonic,
so non-responsive to stimulus.
And by the same token, when theparasympathetic one dominates
and controls the sympatheticaspect of your nature, same
(25:41):
thing again paralysis throughphysical catatonia.
It's the same for emotional,same for mental.
So the extremes of all of theseaspects of your nature end in
the same place Total paralysis,total stagnation and everything
(26:01):
shuts down.
So what's the solution?
Of course it's temperance, andI speak about temperance quite a
bit.
So how can I harness the benefitof challenge and the
(26:24):
adversarial dynamic so that Ican evolve and expand and grow
in a compounding way, and thatis through?
In business you would call thisconsistent, rapid improvement,
(26:50):
but in your life it's the samething.
So the challenge is to getbetter in some way.
That you're focused on is thatevery day, in some small way,
you're getting better and betterin a compounding way, and
that's by setting dailychallenges that you can
(27:12):
emissions, that you canaccomplish on a day-to-day basis
and then to have space inbetween.
So when you set the challenge,it's a moment in time.
You accomplish the mission andonce you've accomplished the
mission, you rest, you'resympathetic in the trough and
you're parasympathetic in thepeak.
(27:32):
You are overcoming adversity inthe peaks and you are
sympathetic and passive in thetroughs and you focus on
devoting yourself to thosemoments in time, creating them
(27:54):
for yourselves, for yourself, tosuch a degree that there is a,
there is a surplus compoundingeffect.
That means that you can measureyour growth on a day-to-day
basis.
You can see the improvementshappening on a day-to-day basis,
whether it be with your money,whether it be with your strength
(28:15):
, your speed, your agility, yourvision, your ideas, your
emotions.
That compounding impact everysingle day is how you use
(28:38):
temperance to embrace both.
And yeah, this is.
I call this a baseline.
This is how you establish abaseline quality of life where
you're able to do things, andyou're able to do things in a
(28:59):
baseline quality of life, whereyou are leveraging the benefits
of challenge, but you're not ina constant state of adversity,
because that's pure hell.
And in the same way.
If you're in a constant stateof sympathy for yourself, where
you're self-liclimiting, blamingeveryone around you, avoiding
(29:19):
challenge, that's pure hell aswell.
And if you don't challengeyourself, you'll be just living
in pure hell, whether it'sbecause you're trying to force
yourself through constantadversity or whether you're too
sympathetic to the point whereit's become self-pitying and
(29:41):
pitiable.
Both of those are states ofliving hell.
Temperance is compounding growth.
That comes out of consistent,repetitive challenge, where you
can measure the growth on aday-to-day basis, and so I just
(30:02):
want to bring this back into sowhen I finished the
experimentation, I was in a realstate with my health, and I
knew I had to stop and thenbegin the process of
(30:25):
implementing what I learned, andover the course of 12 months.
So I could barely walk.
I was in a almost fullycatatonic.
My body was all hunched over,I'd put on an incredible amount
of weight and I had allowed mysympathetic nature to completely
(30:48):
dominate and control the restof my nature, and so it was now
time to set the challenges usingwhat I'd learned.
And I couldn't even walk in thebeginning.
I couldn't walk 20 steps, sothe first time I went for the
(31:10):
walk, I walked.
So the challenge was 12 months.
And I'm going to walk, I'mgoing to average 5,500 steps a
day over the period of 12 months.
So that's the challenge, that'sthe mission, sorry.
And so the challenge is tocreate incremental progress
(31:33):
every day.
So I created a baseline of whatI'm capable of doing now.
I walked about 18 steps,something like that.
It was a pretty soberingexperience.
And then went again the nextday, went 20 steps, I think, it
(31:53):
went 50 the next, and then thebenefit of Fibonacci kicked in,
and the next time I walked Iwalked probably a kilometre.
And so I broke through thatceiling, just through a small,
(32:16):
maybe four days in a row ofconsistent progress, just
shattered the glass ceiling, andso it went exponentially from
there and it got to the pointeven within, maybe within three
months, I could walk as far as Iwanted to walk, I could walk
four hours a day, eight hours aday, and just through consistent
(32:42):
commitment to progress.
And, yeah, so over the periodof that 12 months I walked over
I think it was 1.3 million steps, something like that.
And but when you're in thatstate of being almost catatonic
and you can barely move it, ifyou think about walking a
(33:06):
million steps, if you thinkabout averaging five and a half
thousand steps a day.
You'll never begin.
You'll think that that'simpossible.
And this is the key is you.
You establish what true northis.
You establish what true northis.
(33:29):
My mission is to, over 12 months, to average five and a half
thousand steps a day and mychallenge is, on a daily basis,
to make incremental improvementsevery single day, and that's
all it is.
The mission never changes.
(33:51):
True north is true north.
Your North Star changes on aday-to-day basis because
whatever improvements you madeupon the day before, you're just
seeking to raise the bar, andyou know I never, for me
(34:11):
personally, I didn't determinewhat that bar was.
It's like I didn't go into thenext day saying, okay, I walked
4,000 steps yesterday, so I haveto walk 4,500 today.
I went in with the intention toimprove on the day before and
(34:32):
then just pushed it to my limitand stopped before the, before
that limit, and it was always animprovement on the previous
effort.
If without fail and I talkabout the I should not don't
need to go into that yet.
(34:53):
So adversity, you know it can,you can make it.
It could be pure hell whereyou're just forcing yourself to
change relentlessly andimpressively.
Or you can set, create amission and then set a challenge
(35:19):
.
Set the challenge, thechallenge, my challenge today is
to be incrementally better thanyesterday.
That's it.
And once you, once you've afteryou've set that challenge and
you've accomplished that missionfor that day, then you rest.
You can be as sympathetic asyou want to, because the
(35:43):
improvements just happening, thegrowth and the strength is just
happening now.
But some sympathy is what'sgonna kill you.
If you, if you're toosympathetic, if you are too
challenge a verse, then you, youfall into a state of what I
(36:06):
call overcoddling, youovercoddle yourself and you
stagnate entirely and you don'tgrow strong.
And just to tie a bow aroundthis now, what it would say is
that New Zealand currently is ina state of overcoddling and is
(36:28):
far, far too sympathetic, far,far, far too sympathetic.
And I think our legislation hasbecome extreme to the point
where New Zealand is no longerprepared to challenge itself.
And I think we.
(36:51):
It's time for this nation to setitself a mission.
What is our mission as a nation?
What it, what?
What are we trying toaccomplish together?
Do we have any clue?
We're just trying to survive,we're just trying to be reactive
(37:15):
.
We just, we truly were waitingfor the rest of the world to
innovate so that we can besecond movers.
But what is our mission?
How do we want to challengeourselves on a day-to-day basis?
You know we're in a, we're in acoming up to an election and
(37:41):
lots of people saying that's.
You know, we're in a recession,so we don't have the luxury of
being able to invest ininnovation.
And, of course, a recession isadversity.
It means adversity, and soadversity is the ideal
opportunity to innovate, and andtrue innovation actually comes
(38:02):
out of adversity, because it'sthe challenge.
It's the challenge that thatadversity presents to us to be
able to come up with ahypothesis, challenge ourselves
to validate or invalidate thathypothesis.
And success is measured becausewe set the challenge to either
(38:29):
to either validate or invalidatethat hypothesis, understanding
that at some point validation ofa hypothesis will be valid and
the mission will be accomplished.
And the failure was part of thejourney to get there.
But we have to set thechallenge.
We have to set the challengeand you know, I see innovators
(39:01):
in the innovation ecosystem inNew Zealand who the adversity is
.
It's phenomenal the challengethey set themselves, absolutely
phenomenal the relentlessness oftheir pursuit, of standing up
their innovation, of trying toget someone to understand of
(39:25):
we're getting rejectedrelentlessly.
You know, less than 3% of allpitch decks that cross a VC's
desk will get back therelentlessness it's.
It is incredible and thechallenge is monumental and the
(39:52):
opportunities that are missedbecause people aren't prepared
to stand beside them and de-riskthat venture with them and give
them, create the space for themto fail.
So until something validpresents itself, that buffers
(40:14):
just isn't there, we're notprepared to stand beside our
innovators and and go on thatmission with them and lift them
back up when they fall over andwhen they fail and it's catch 22
.
Right, there needs to be asurplus that people are prepared
(40:39):
to lose due to failure.
If you, if you experiment,you've got a hypothesis, it's
based on assumptions, the costof that experiment.
You have to be prepared andwilling to lose everything that
you put into it.
So that has to come from asurplus and so it is that.
(41:07):
Does that surplus have to comefrom philanthropy?
Does that have to come fromgrants?
Well, what we find throughCallie and innovation is, you
know, we diffuse grants becausewe know that there's a massive
void, that the private sectorwill not fail to de-risk
(41:31):
opportunities and but Callie andinnovation receives lots of
criticism.
I work for Callie and innovation.
New Zealand's government agencytasks to diffuse, you know, a
significant amount of theinnovation budget for the
(41:51):
government.
And what would happen withoutthat?
The private sector is not goingto de-risk an early stage
venture.
They're not going to invest thetime and energy and effort,
human resources, into enabling afounder to challenge a
(42:13):
hypothesis that's probably goingto fail.
So what's the solution?
We're experiencing adversity asa nation and there's a
narrative arising that we needto tighten the purse strings In
(42:34):
a moment where the challengepresented is so great that the
potential for innovation couldbe profound.
What's the challenge?
What's the challenge?
Surely it's to generate anongoing surplus.
Now, let's say hypothetically,we decided as a nation yes,
(43:03):
we're going to generate asurplus, a compounding surplus.
That's true north for us as anation.
So what's what is the challengethat presents itself on a day
to day basis?
Well, what's?
Creating a deficit?
So we may not know the rootcause of the problem, but we
(43:25):
have to begin experimenting tounearth the root cause of that
problem and then we need tobegin investing in creating
sustainable solutions tooperating in a surplus.
And that needs to be visible.
It needs to be a collective,shared mission that we can all
(43:47):
embark on together so that wecan grow strong as a nation.
Strength comes from thatchallenge, but we are
overcoddling ourselves as anation.
We do not challenge ourselvesas a nation, we don't stand up
to that adversity, we're tryingto avoid it, and so we're
(44:12):
contracting as a nation.
You see, in order to growstrong, we have to challenge
ourselves, and innovation inadversity is where that strength
will come from.
Challenging a hypothesis,refuting our own conjecture,
(44:39):
being prepared and willing tofail to be wrong so that we can
get stronger this is wherestrength happens.
This is where it occurs.
So how can we?
How can we?
So adversity and the benefit ofthe adversarial approach we see
(45:05):
it in AI, adversarial modelsare profoundly potent.
They get stronger and strongerand stronger, perpetually and
relentlessly.
So how can we embrace this?
By challenging ourselvescollectively as a nation.
Where is the surplus within theNew Zealand innovation ecosystem
(45:31):
?
Well, within the economy even,there are the human beings that
have surplus funds that they'reprepared to lose in the spirit
of embarking upon a mission,because there is an abundance of
founders and innovators who areso undercapitalized that it's
(45:55):
just untrue Barely putting foodon the table, simply challenging
themselves every day, gettingstronger and stronger, failing
fast, being rejected day by day,learning as much as they can.
So how can we stand beside themand fail with them, and embrace
(46:20):
those failures and recognizethat that is the process of
becoming strong?
That's how we become strongeras a nation.
How can we Okay?
So if you are extremely wealthyand you're interested in
assisting innovators, don'thesitate to get in touch, and
(46:48):
there's a plethora of projectsand people who are challenging
their own hypothesis everysingle day in the hope of
building a strong nation.
So how can we Okay?
That's it for now, for thenature of adversity.
Talk to you later.
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