August 20, 2025 • 35 mins
In early 2023 the CEO of IgniteTech laid off nearly 80% of his staff because they refused to adapt AI fast enough. Two years later, he says he would do it again. Could this happen to you in your company? Today on the Jon Sanchez Show at 3pm, we’ll be joined by Dr. Dennis Sanchez, The AI Doctor, to discuss how and why you should adapt AI when asked by your employer.
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Episode Transcript
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Speaker 1 (00:02):
I think a dark Monday afternoon to you walking to
the John Sanchez Show on news Talk seven to eighty K,
which it's a pleasure to be with you and a
pleasure to be with the co hosts around the horn.
We shall got a full house today, of course. Jason
Gone is here.
Speaker 2 (00:14):
How are you doing? I am happily here on a Monday.
Speaker 1 (00:17):
Yeah, exactly, it felt like a Monday.
Speaker 2 (00:21):
Did the market open today?
Speaker 3 (00:23):
I know, I know you talk.
Speaker 1 (00:24):
About a snoozing session today, My goodness. Yeah, thank god.
We have our other very special guests, doctor Dennis Sanchez,
the AI Doctor, Because there wasn't a lot to talk
about about this market.
Speaker 3 (00:34):
Yeah, we would have had a heck of a time.
Speaker 1 (00:35):
Today, fulfilling a full hour if if it wasn't for
dnnist being here to talk to us and teach us
about AI.
Speaker 2 (00:41):
Are you talking meeting?
Speaker 3 (00:43):
Yeah, there you go.
Speaker 4 (00:45):
We could always make some stuff up. That's what jenn
A I does.
Speaker 3 (00:48):
Right, don't do that?
Speaker 4 (00:53):
Don't happy to be here.
Speaker 1 (00:55):
Good to have you, man, Good to have you, that's
for sure. Well, speaking of AI, let me tell you
what we have lined up for you. After we do
give you our brief stock market recap So over the
weekend I came across a very interesting story that I've
shared with Dennison, with Jason, and it's very very interesting.
In early twenty twenty three, there was a CEO of
(01:18):
a company called Ignite Technology. Did Jason you look them up?
I didn't get a chance. They're an enterprise software company
or do one of you know that?
Speaker 5 (01:25):
Yes, that is true, and I think it plays well
into the reason that you're bringing this topic up. So, yes,
that's what they do is enterprise software.
Speaker 3 (01:35):
It explains people what that means.
Speaker 2 (01:37):
Well, I mean it's pretty very pretty broad.
Speaker 5 (01:40):
Ultimately, you know, SaaS company, they build a product that
you know, i'd say, does what many many many humans
can do and simplifies thing enterprise you know, CRM is
an enterprise software company oracle companies like that that ultimately
provide a product that users utilize for efficient so be
(02:00):
it you know, working on their team or HR or
you name it.
Speaker 3 (02:05):
Okay, didn't any you want to add to that?
Speaker 4 (02:08):
Oh, it just it also kind of points to it
scales to large numbers of users, whereas you know, some
software is just for small businesses.
Speaker 3 (02:20):
Got it? Okay? Very good?
Speaker 1 (02:21):
So this gentleman again decides in twenty twenty three that
he is going to adopt AI in this company again,
this company called ignite Tech. Okay, he took it to
his employees and lo and behold, he got almost no
buy in by the employees. I don't know the size
of his workforce. I think they're a fairly large company.
(02:44):
But even getting buy in, He's like, look at folks,
we have got to make this transition into AI or
we're going to be left in the desk. I want
all of you to start off where fridays are going
to be aid. Nothing you do in the office except
focus on AI, learning it, figuring out ways some corporate
into the business, etc. So he tries this. Nobody wants
to adapt to it. They had reasons. Boy, Dennis, you've
(03:07):
told us about this so many times. They had every
reason in the world not to adapt AI. They felt
threatened with their job, they didn't want to take the
time to learn it. They had every excuse in the world.
So this gentleman Eric Vaughn said, Okay, fine, you guys
don't want to lose it or learn AI. Here's what
we're gonna do. We're gonna get rid of eighty percent
of you eighty percent of his workforce. He fired right
(03:30):
on the spot, not because the budget cuts, not because
they refused it, but because they refused AI. Right, So
no other reason other than they refused AI. And so
we fast forward two years later, because this again was
in twenty twenty three, and two years later he was asked,
would you do it again? Because his company went to hell.
He'll admit it in this article. He'll absolutely admit it.
(03:52):
He says, would you do it again? And he says absolutely.
So we thought, you know what, I don't know how
many businesses have the guts guy to do that, to say, okay,
we're adapting AI, but if you don't get on board,
we're gonna get rid of you. I mean, We've had
some threats right right, both of you. I've seen different
threats from you know, from the metas of the world
and you know, the large tech companies. But to go
(04:15):
that way and rip out eighty percent of your employees
and start over, and to now look back and go, Okay,
it was worth it, and what I do it again?
Speaker 3 (04:25):
And the answer is yes.
Speaker 1 (04:27):
So what we're gonna do is we're gonna go over
kind of some some highlights of mister Vaughan and what
he did, and then look into again, where are we
at this point? What happens if you find yourself as
an employee and your employer says, you've got to start
learning this stuff, maybe a little bit at a time.
Maybe like mister Vaughan, you're like starting right away and
you're gonna delve both feet in there, whatever it is.
(04:50):
But we wanted to get across this. Why are employers
doing this? This is how much they believe in it.
And more importantly, if you feel like you can't adapt
to AI in your in your work, Dennis has got
some great ideas about how you can start to prep
yourself and get ready for it. You know, it's almost
like if you wake up one day, guys, and the
employer goes, okay, all of you with a bachelor's degree,
(05:10):
you've got two years to get your MBA or you're fired.
Speaker 3 (05:12):
Right. Two years goes by, and.
Speaker 1 (05:14):
Maybe you know, ten percent of the workforce gets their NBA,
then the employer's going, okay, yeah, the other ninety percent
of you were gone. You didn't take the time to
learn and achieve this goal. It's the same thing with AI.
They're not taking the time to learn it and achieve
the goal. So as an employer, you're faced with a
tough decision. Do I get rid of everybody like mister
vond did, or do you go, oh, okay, we're just
going to.
Speaker 3 (05:33):
Kind of spoonfeed it to you.
Speaker 1 (05:34):
I mean, Dennis, you deal with this all the time
in your business and how you see it large companies
and small right.
Speaker 4 (05:43):
Yep. Well, it's a little unusual in this situation because
normally so there's really three ways that AI's having this
kind of impact. One is organizations aren't providing the training
for their employees. So that's one scenario. They're bringing the
technology in but they're just doing in the bare minimum,
or they're not doing anything at all, and they're just
(06:03):
handing it over to their employees and say you learn it,
and you know, we expect you to figure it out
on your own. The other part is, I mean, another
scenario is a leader saying, forget about all that was,
just get rid of them and bring the aim. We're
not even going to go through that step. So that's
another option. But this one's really really unique, and I
love the way to describe it as a radical restruction,
(06:26):
because this is this is a whole different perception.
Speaker 3 (06:29):
Uh.
Speaker 4 (06:30):
And it's it comes from a leader who gets it
and is trying to change the culture of his organization
and finding that it's how hard it is to do that.
You can't really change a culture. All you can do
is is adjust it a little bit here and there
because the culture is already there. And that's that brings
in a whole new kind of disruptive thing that's going
(06:53):
on with business and aim.
Speaker 1 (06:54):
Hmm, absolutely, And Jason, real quick before we get to
the stock market side of things. As an executive, if
you had if you had to make that choice, I
need to bring in this new technology. It's going to
make me more profitable and all the various financial reasons,
then you have to make that decision. You know, what
do you do with these employees that don't want to
adopt you? Either go okay, time out, We're going to
back up a couple of steps. We're going to set
(07:16):
up some rigid training schedules and so on and so forth,
or again, like mister Vaughan, did you get rid of
the people? But I think a lot of a lot
of businesses, especially the smaller ones, cannot afford to get
rid of all their staff because they're not adopting AI.
But to convince and you're you're, you're again, you're you're
a much better manager than I am. I'd love to
hear from you, Jason. You know, how do you convince
(07:37):
employees to change culture and adapt new technology when they're going, Wow,
this is something, right, guys, this is something that they
could lose their job. We all know that AI takes
a lot of jobs, but how do you how do
you adopt that mental you know, change to them and
get them on board.
Speaker 5 (07:52):
Yeah, and again, this story is a little bit different
than what we typically talk about of AI taking your job. Ultimately,
what he said was, you know, those of you who
don't want to learn it, adapt to make it part
of your process. I'm booting you and bringing in people
who will. And I think that's really what the conversation
(08:14):
is is a you know, you always have a lot
of those reluctant staff members for you know, we're going
to do this process now, We're going to do that
process now, and they.
Speaker 2 (08:24):
Drag their feet and drag their feet.
Speaker 5 (08:26):
Well, much as Dennis has mentioned so many times, you
can't drag your feet in this. This is not something
and That's why I keep saying it's an enterprise software company, right,
It's not a even our business right where different customer
facing levels, different needs from our clients. Versus, you're an
(08:47):
enterprise software company, you better have staff members that all
embraced technology, AI, all these things, because that's where your
industry and most industries clearly are going to become more
automated or use parts of AI or at least big
data ingestion into their process. But if you work in
(09:08):
an enterprise software company, you better know how to do it,
or they will put someone in there younger who does.
Speaker 2 (09:14):
And that's how you grow a firm like that.
Speaker 5 (09:16):
It's not with aniquated staff members who you know are
still using like cobalt.
Speaker 1 (09:20):
And that would be a great question, is you know,
what was the median age group of the people that
he got rid of versus the median age group of
the people.
Speaker 3 (09:27):
That came in.
Speaker 1 (09:28):
Because for those of you that are you know, are
our generation and so on and so forth, we hate change,
and technology's going so fast. I think this could be
something that so many of you could face in the
future where your employer says you got to adapt to
this or you're gone.
Speaker 3 (09:41):
And that's why we.
Speaker 1 (09:42):
Wanted to do the show on this and title it
how and why should you adapt AI at your workplace?
Because right Dennis, more and more businesses are going to
be doing this again, maybe not to this extreme, but
they're going to say, you've got to you got to
get on board, you got to learn this stuff.
Speaker 4 (09:55):
M seems like we're getting a lot of ultimatums. You
got to come in the office. Are you going to
lose your job? You better use the AI? Are you
going to lose your job? Pressure is on the worker.
Speaker 3 (10:05):
Yep, you're absolutely.
Speaker 2 (10:06):
Yeah, and then you'll lose your job to the AI.
So it's a perfect.
Speaker 3 (10:13):
All right, quick breaking we come back.
Speaker 1 (10:17):
We will go ahead and delve into it again today's
very very very boring market session and then get into
our AI topic with doctor Dennis Sanchez of course Jason,
and then it has turned over to the wonderful Kristen
Snow she's in the right now traffic center.
Speaker 3 (10:27):
Hello, Kristen, Welcome back to.
Speaker 1 (10:33):
The John Sanchez Show on News Talk seven eighty k
oh with Jason god and Sanchez Got Capital Management and
my brother, doctor Dennis Sanchez, the AI doctor. All Right,
we're gonna get to our topic regarding AI here in
a moment, how and why you should adopt AI in
your workplace in regards to this gentleman, this great article
written by Fortune Magazine that we're going to kind of
just go through and and really really correlate it to
(10:53):
what many of you, whether you're a business owner or
your employee, may be facing. And that is when the
employer says, all right, we're going into this new software,
going into this new revelation called AI, and you, as
an employee, go, I've been here for thirty years.
Speaker 3 (11:06):
This is the last thing in the world I'm going
to do.
Speaker 1 (11:07):
I'm gonna try to just hid in the shadows and
make sure the employer doesn't find out that I'm not
adapting AI well as this gentleman did. He laid off
eighty percent of his workforce and brought people in that
did want to do it. And I think this is
going to be something. And we'll get Dinnis's feedback because
this is what he does. He consults with all these
companies and see, you know, what do you what do
you do from an employer standpoint? What do you do
from the employee standpoint? When AI is adopted in the business.
(11:29):
But first, Jason, let's get the pain out of the way,
this this very point session that we had to do,
I don't know the way.
Speaker 3 (11:36):
Yeah, that's a sneezer.
Speaker 5 (11:40):
Yeah, I mean again, we talked last Friday that there's
not a whole heck of a lot going on until
we start to deal with earnings tomorrow.
Speaker 2 (11:48):
Right, we'll get the likes of home Depot, Toll Brothers. Uh.
You know, there was a little bit of.
Speaker 5 (11:52):
An M and A today with a day Force day
being acquired or looking to be acquired by Salesforce, so
merger in the software space. So I think you'll probably
continue to see more of that. I would argue, the
really only topical thing today was you know, Ukraine and
Europe and Trump and everyone on TV sort of talking
(12:12):
and gesticulating but not getting a whole lot of things accomplished.
I'm sort of tired of these butt smooching sessions. Let's
just actually get things done. A Meta was down about
two and a half percent. Sort of interesting there. We've
talked about, you know, the leading edge of sort of
software companies underperforming recently, right, a little bit of profit
(12:36):
taking probably into you know, month end I know we're
mid month, but you know a little bit of profit
taking given this seasonally week period we tend to see
end of August into September some you know, positive moves
in the healthcare space. Today, Really only data point we
had was on the Housing Market Index, which fell to
(12:57):
thirty two in August. This is the NHB versus a
consensus of thirty four, so a touch weaker than expected
on the housing side.
Speaker 2 (13:06):
But you know, again it was very much as sleeper.
Speaker 5 (13:08):
As we get home depot target lows later this week,
I think that's when you'll at least hear the market
talk more about retail and whether the consumer's dead yet
or going to die or not going to die, and
get hyperbolic.
Speaker 2 (13:22):
But it was a pretty quiet session overall.
Speaker 1 (13:24):
I'm going to go back to the healthcare sector for
just a moment. You know, big move, as you mentioned
Novo and Nordisk today, let me rephrase that a move
two point six percent increase as the company received an
emergency approval for its welgovy weight loss drug for treatment.
Speaker 3 (13:42):
Of liver disease. But that wasn't the big mover. The
big mover was this.
Speaker 1 (13:48):
Novo also announced that they're going to offer their GLP
one drugs, which is those SIMPEG for quote diabetes, and
we'll govy for weight loss at a cash price. You
ready for this, guys, four hundred and ninety nine dollars
per month for those self paying patients through good r X.
So of the gdr X good RX today sword percentage
(14:09):
wise thirty seven point up a dollar thirty nine to
five dollars and twelve cents, and it's up let's see
right now of five dollars and twenty nine cents in
the after hour session.
Speaker 3 (14:18):
So isn't it amazing to see the transformation?
Speaker 1 (14:21):
You know, we're talking AI, but let's not forget this
other kind of earth shattering transformation we're seeing in the
world of healthcare with these these weight loss drugs.
Speaker 3 (14:28):
Guys.
Speaker 1 (14:28):
I mean it, it's just revolutionizing some of these companies there,
really is.
Speaker 2 (14:32):
It has And again, if you know again to look
for bank shots.
Speaker 5 (14:36):
I've said over and over again, if you play the
long game, investing in broad exposure to biotech, in my opinion,
is going to be a sweet spot for AI adoption,
new drugs, new you know, cancer, uh, you'll be it,
immuno oncology, et cetera. Just better ways, faster ways to test.
You know, we're going to get some amazing things, in
(14:58):
my opinion over the next three to five years from
that space. So as much as people have been a
healthcare hater, you know, if you want to pick away there.
And remember, lower interest rates tend to help the biotechs too,
because they they borrow to fund their businesses. So they're borrowing,
costs will be lower. So very much. I keep sort
of jumping up and down. It's an area you want
(15:21):
to be adding to on weakness.
Speaker 2 (15:23):
It is biotech.
Speaker 1 (15:25):
Speaking of interest rates, as we said today, eighty three
point two percent probability according to the FED futures contract
of a quarter percent interest rate cat at the September meeting.
All right, let's transition. We've got a few minutes before
we go to break. Let's get the let's get the
stage warmed up. Bro, let's get down to this. So
once again, in early twenty twenty three, a CEO.
Speaker 3 (15:43):
By the name of.
Speaker 1 (15:45):
Now I just changed my page so it looking like
a really be here, Eric, Eric Vin, thank you very much.
On Eric Vin, CEO of the enterprise software company ignite Tech,
said look at twenty twenty three. All right, we're gonna
move over to AI in our company. Get on board, employee.
If you don't, we're going to get rid of you. Well,
a bunch of people did not get on board, about
eighty percent of his workforce. He got rid of them
(16:07):
and started all over. And the most important thing is
he was asked by Fortune magazine would you do that again?
And he said absolutely I would. He replaced hundreds of employees,
but wouldn't get down to the exact number. He said
that wasn't our goal, meaning getting rid of those people.
He said it was extremely difficult, but changing minds was harder.
This is a key sentence, guys, Changing minds was harder
(16:28):
than adding skills. It was by any measure of brutal reckoning.
But Von insists it was necessary and again said he
would do it again. So this is the premise of
what we're going to be discussing for the rest of
the show with doctor Sanchez, and that is how do
we get employees? Dennis, you deal with this, like I said,
you see it firsthand in Fortune, five hundred companies in
your business. Let's tackle this from an employer, and then
(16:51):
we'll later in the show we'll go into the employee.
How do we as employers, No, hands down, we need
to bring AI into our business for whatever reason, right, profitability, efficiency,
et cetera. All the great things at AI does, But
we know that our employees are not going to be adaptive.
So how do we kind of quote sell them on
the idea.
Speaker 4 (17:12):
Well, we don't know if they're going to react that way.
And one thing we're finding out is that when they're
introducing this technology, we see experience with everybody coming in.
Everybody's been working, you know, playing with chat GBT since
it came out, so they're actually coming in with some
experience even though it's new technology, and often they don't
(17:34):
even admit it. They're kind of keeping it quiet because
of a lot of reasons. One the scariest thing for
an IT director is that people are bringing in technology
like that and they don't have control over This is
all about data and data security. So the legal people,
compliance people, IT people don't sleep very well at night
(17:55):
as this new technology is coming in, and often they're
the ones, they're the ones that are pushing back because frankly,
they just don't want to deal with it. So I
don't think there's a business out there, a business sector
anywhere that doesn't have a reason to bring an AI
and find because it's it's a competitive edge. It's it's
a way just to stay you know, competitive, not even
(18:17):
get the edge, but just to be in the game.
It's hard to really any kind of business because take
take a product like Copilot that the value is really
as a time savings machine. It doesn't matter what the
role is, what it it's we're just talking about things
we do all the time, no matter what kind of
job we have, no matter what our role is. We
(18:38):
we create documents, we make decisions, we prepare for meetings,
we do those things right reports. So you know this,
this this kind of technology is playing right to those
strengths and it's easy to use because of that natural
interface we have just to talk to it. So you know,
there's you kind of go scratch your head. Why wouldn't
it be successful? Well, sometimes it starts with the leadership
(19:03):
not being a good example about making that change. Often
the leaders are the ones and they need to show,
they need to be a role model, and so often
these projects get started and they don't they don't bring
in the leadership to actually be you know have them
communicate to the employees and say this is part of
our survival. It'd be interesting to know what mister Vaughn
(19:25):
did to prepare for that change, because it really requires
a lot of laying the groundwork in advance. You don't
just come in and overnight have that technology there, even
though you could. It's the easiest thing to turn on
because it's all in the cloud. And that's that's changed
the dynamics too. We used to have, you know, a
(19:45):
year to bring in new technology. Now it's a turn
of the switch almost. It's that easy to do, and
so all of a sudden people are working with it,
and then all the way down the line their parts
that are that are.
Speaker 3 (19:59):
Training doing that.
Speaker 1 (20:00):
When when you convert us over to the cloud, what
was that a year or two ago? I mean yeah,
I mean you did it relatively painless, right. We always
like everybody, we had servers and backups and everything. You're like, no,
we're going to the cloud, and so yeah, it's it
can be done.
Speaker 3 (20:13):
Quickly, right.
Speaker 2 (20:14):
Yeah.
Speaker 5 (20:14):
And the interesting part about it too is sort of
the dentist's point about being able to turn it on.
The hard part though, is the data, right, is what
do you have internally that is useful for interacting with
right where you know, and a lot of these newer
tools you mentioned copilot where you know you can almost
(20:38):
have it watch what you do throughout the day and
then it can start to recommend things to streamline your process. Right,
And that's the part that is very important for folks
to keep an eye on is And this is what
I say to our team here, like you know, my
goal is never to replace anyone, right, I want to
add bodies before get rid of them. But what part
(20:59):
of your job are you doing now that if you
sat in and said, man, I really wish if only
this could happen, it would make my life easier. And
then you just sit down and figure out a way
to do it right. And that's what AI and these
tools can allow you to do instead of you know
what part are very much time consuming that don't really
(21:20):
add a whole heck of a lot of value to
me or the firm.
Speaker 2 (21:24):
Let's figure out how to do it right.
Speaker 5 (21:26):
And that's it just takes time to think that way,
not being closed minded, but more so excited about you know,
you do a good job of making your role efficient.
I promise they will keep you around absolutely.
Speaker 1 (21:39):
All right, we'll come back and continue our discussion. Let's
turn over to Ryan Nettar. He's got news trafficking weather.
Speaker 3 (21:43):
Hey, Ryan Condors landing.
Speaker 1 (21:53):
With doctor Dennis Sanchez, the AI doctor, and of course
Jason Gunn the professor.
Speaker 3 (21:58):
All right, once again, a quiet session in the street.
Speaker 1 (22:00):
Down thirty four on the now Rouse seven on the
nasdac in im lower by one on the SMP five hundred.
All right, we've been discussing with Dennis a very unaristing
article we came across over the weekend from Fortune magazine.
A fellow by the name of Eric Vaughan owned a
company called Our Owns, a company called Ignite Tech. Decided
a few years ago it's like AI is going to
be part of our business. Want everybody aboard? Well, he
got all kinds of pushback from the employees. So he
(22:21):
got rid of eighty percent hundreds of employees because they
went adapt brought in new ones, and they adapted and said.
Speaker 3 (22:26):
It was the best thing in the world. He would
do it again. Was it painful? Absolutely?
Speaker 1 (22:30):
But I want to real quick Dennis, before we go
back to the question I left you with, which is
you know, give us a couple of bolt points of
how business owners can adapt this right so they don't
have to go through a mass layoff. But I want
to I want to share something, folks, for those of
you that are business owners that don't understand how powerful
AI is into your business. So this article talks about
(22:50):
a consultant that was working with Ikea and a company
called Klarna Na. Klarna is a Swedish buy now, pay
later firm.
Speaker 2 (23:00):
It's the same as the firm. It's a firm, but
they aren't publicly traded yet.
Speaker 3 (23:04):
Okay, yeah, I was just going to give that example. Okay.
Speaker 1 (23:07):
So they made a decision again to reduce members of
its customer support staff and a pivot to AI, only
to rehire them for.
Speaker 3 (23:16):
The same roles.
Speaker 1 (23:16):
Quote, we're near the point where AI is more intelligent
than most people's knowledge, most people doing knowledge work. But
that's precisely what augmentation beats automation. A rep for Klara
told Fortune the company did not lay off employees, but
has instead adapted several approaches to a customer service, which
is managed by an outsourced customer service provider who are
paid according to the volume of work required. Here's what
(23:39):
gets interesting the launch of an AI service assistant reduced
the workload by the equivalent of seven hundred full time
agents from roughly three thousand down to twenty three hundred,
and the third party provider redeployed those seven hundred workers
to other clients. According to Klarna, now that the AI
customer service agent is quote handling more complex queries than
(24:01):
when we launched, Carna said, that number has fallen to
twenty two hundred people. Carna says it's contracting as we
hire just two people in a pilot program and designed
to combine highly trained human support staff with the AI
to deliver outstanding customer service. So Dennis there, you go,
right there, right this company saves seven hundred paychecks every
single week of month. Whatever it is, significant savings because
(24:22):
they adapted AI. Now easier said than done. You work
with these companies, you consult with them. What are just
a couple of brief bullet points that you would recommend
to those business owners listening right now that are going.
I know it's like social media. I know I've got
to do it.
Speaker 3 (24:36):
I just don't know where to start. I don't have time.
Speaker 1 (24:37):
I'm working fifteen hours a day. Now, you tell me
to bring in new technology. What's your advice to them?
And then we're going to transition over.
Speaker 2 (24:43):
To the east.
Speaker 4 (24:45):
Okay, it's actually pretty simple. They don't really have a
choice whether or not they're going to bring in AR
or not, so that's a given. There's no industry, there's
small medium sized business that doesn't that would benefit by AI.
The first thing I would do is talk to my
employees and ask them how they feel about it. I
(25:08):
know that sounds like, oh, come on, who does that?
But because of this the conscious and subconscious way they're reacting.
Sometimes they don't even know why they're reacting so negatively
towards this new technology coming in, it's important to get
them involved in the conversation early because the one emotion
that can really fix everything as trust in this relationship.
(25:32):
So if they're transparent about their plans and what they
want to do from the beginning, and say, you know
what if Klarna, using that example, said this is the plan,
we're going to bring this stuff in, but we're going
to redeploy, we're going to reskill. You know, it would
train you guys to do other things. We want to
get you in front of customers. You're great in that role.
That's that's a vision. They don't you know, create a vision,
(25:55):
get people behind you, and then everything will kind of
fall in place. If you don't do that, then you know,
I have Actually I saw a comp company they announced
an AI initiative and the same day they said we're
going to be laying off thousands of people. So how
do you think AI was accepted within that organization. They're
(26:15):
still struggling to get it, you know, adopted. Yeah, the
right way to do it, the wrong way to do it.
Stay close to your your staff and your and your employees. Okay,
so that's bullepoint. Give me one more out. An employer
gets the employees to adapty So get them get into
buy in.
Speaker 3 (26:33):
I guess I would.
Speaker 4 (26:34):
I would. I would, so assuming that there's going to
be buy in, I would think of ways to motivate
them too. It's a combination of teaching them how to
motivate themselves, because there's a lot that we're going to
rely a lot on employees taking the extra effort. Jason
was talking about some of the things that come out
(26:56):
of Actually when you use this technology for a while,
that's when you discover these aha moments, These these these
nut It's a goal that I talked about before that
weren't even that just kind of came out of nowhere.
But that comes from people looking, uh and at opportunities
for processes and things that they could automate, and also
(27:16):
knowing what to do with with the technology when they
see it or communicate it. So you know that if
we can get everybody to that point, if I were
a leader, you're you're in You're in good shape. But
I would also think about ways to motivate them, encourage
the people that spend more time learning it and and
and offer more ideas and more innovation. The thing about
(27:38):
this technology and that they started with cloud, we know
if they're using it or out. We know how they're
using it, so this isn't a mystery it. Eventually it's
all going to come down to John, we were noticing
you're not using it, so there's no hiding you're gonna
it's it's really gonna And that's when you start getting
(28:03):
the That's when when employers start really knuckling down and saying, listen,
this is your thirty day warning to start. Here's the
training again, all that kind of stuff. So a lot
of pressure on the employees.
Speaker 2 (28:18):
Yeah, and you can also you can also tie comp
to it, right, you can say, you know, set certain
absolutely goals where if you do X, there's a bonus
of some kind.
Speaker 5 (28:28):
And you know, I mean incentivized like you said, employees
to be proactive, incentivize them to create things that make
their role more efficient, et cetera. Like I said before
the break, I assure you, if you're good and you
make your role better and more efficient, they're going to
keep you because you're doing what they would like. You
(28:50):
want more firepower per person and that's what you know
the smart folks will do. If you're resistant to it,
and you know you think that pen and paper and
typewriters are the wave of the future, then you're probably
not going to be around very long.
Speaker 1 (29:05):
So Dennis, I need a one minute answer on this
to this next question that we'll come back and focus
on the employee. And the question is this, do you
foresee in all your work do you foresee that there's
ever a global certification program for an employer where you go, Okay, employee,
you're going to take this basic almost like a high
school diploma, this basic course, and at least I know
(29:25):
you're quote basic AI certified and then different levels of
certification all the way to a PhD type of certification
in the world of AI, because how do we know
if employees.
Speaker 4 (29:37):
You already see that? Of course good, they might look
at Microsoft certifications have a lot of weight in the industry.
And if you're an employee, there's a lot of free
training too. That's the other thing. Amazon provide something free training.
Speaker 3 (29:54):
Google does.
Speaker 1 (29:56):
I mean if on that employee our firm and the
employee goes, oh, you know, I'm AI genius here, how
do you prove that? Right? At least if they have
a certification, you know they've gone through a formal core
and got certified quickly.
Speaker 4 (30:10):
You know, you just brought up a great point something
I read over the weekend about the Google cio saying
they're now bringing in people for their interviews because they
found them so often they were faking all their certifications,
even answering using AI and the interviews. So they're going
to bring him in. So you know, it's getting hard
(30:35):
bottom line.
Speaker 1 (30:36):
Yeah, yeah, okay, all right, very good, a AI university
here we come. It's turned over to Christen Snow the
right now Jackson, Hello, Christen Welcome back to the John
Sanchez Show on Newstalk seven eighty. KI is with Jason
Gott and my brother, doctor Dennis Sanchez, the AI Doctor.
We're talking about how and why you should adopt AI
(30:56):
in your workplace. So we went through some very valid
ble points that Dennis presented to us in regards to
the employer side. Now we're going to shift over to
the employee side. And again our discussion today has been
based upon this great article and fortune where a CEO
got rid of eighty percent of a staff that would
not adapt to AI. Very obviously dramatic move to get
rid of eighty percent of your employees, hundreds of them
(31:17):
and start all over. But again, folks, listen to us
when we tell you this, and Dennis you're the expert here,
and that is if you are an employee of a
business and AI is brought up, like you keep saying
twice today, Gennis, you've said, there's not one business out
there that will not be using AI in some form.
Speaker 3 (31:32):
Or fashion in the future.
Speaker 1 (31:34):
So as an employee, you better get on the band
train or you're going to be out of a job.
Speaker 3 (31:38):
Right, So what's your advice.
Speaker 1 (31:40):
Let's go through a couple bullet points for the employee
listening right now, going again, especially an older one.
Speaker 3 (31:45):
I can't adapt to this technology. What do I do
to keep my job?
Speaker 4 (31:50):
Well, wouldn't you like to be in the twenty percent
that kept their jobs in that company? What were they doing?
It was right? I bet you that they were proactive
about the training, make sure they intended, they practiced, they
were positive about it. You know, those are the right
kind of behaviors. But the bottom line is this is
(32:10):
this is a time we where we really have to
take control of our own future. We can with AI
because we can we can learn on our own how
to use AI. It's it's it's accessible, there's free training,
but the motivation has to be there. But uh, it's
it's like the one of the things that's uh CEO
(32:31):
did say is it's it's this there's no option. It's
it's an extential, existential thing that we have to do
or we're not going to survive. Think about it in
those terms. I have thought about it in those terms too,
where I think we're at a pivotal point of whether
you know, what are our future is going to be?
Like take control of your own future. Get the training,
(32:54):
talk to other people about have fun with it, be creative,
take you know, just experiment.
Speaker 1 (33:01):
Okay, you hit a word. I don't know if you
even realized you hit it, but I think it's the
key word. And that word is attitude. Right.
Speaker 3 (33:07):
We can all control our attitude.
Speaker 1 (33:09):
I had a friend when I was rending the business,
a couple of years ahead of me in the business,
and he said, John, attitude, not aptitude, will determine your altitude.
And that has stuck with me for thirty six years
since I met the guy. So that attitude, right, And
that's I think you hit it right on the spot there, bro,
And that is you know, yes, your employer does not
expect you to be an expert in AI. You know,
(33:31):
everybody's just learning this new technology. But if you're like, hey,
I'm a really gung hold to learn this, you know,
tell me where I can learn more and more. That's
I think ninety percent of the battle.
Speaker 3 (33:39):
So you're not part of that. You know eighty percent
that loosed their job.
Speaker 4 (33:42):
Right, right, and it it It is about being proactive,
taking control, motivating yourself. You can put it in any
terms you want, but you're going to be a survivor.
And a thriver in this market. And whether it's your
business or as an employee, if you really start acting
(34:04):
that way, don't worry about anybody else. But the opportunities
are there absolutely.
Speaker 1 (34:11):
Well has always done an excellent information Jason, great input
on your from your standpoint.
Speaker 3 (34:15):
Also, it's just we can talk.
Speaker 2 (34:17):
Yeah, it's a great company, Brook Gonta have you every money?
Speaker 4 (34:19):
This is we just talk every Monday about this.
Speaker 1 (34:22):
We we'll do all right, boys, great job as always.
We'll do to get to more on the John Sanchez Show.
Speaker 3 (34:27):
Gouv. Let's have a great afternoon. We'll see you then.
Speaker 4 (34:31):
This program was sponsored by Sanchez Gaunt Capital Management LLC.
Speaker 1 (34:36):
The material in this program was intended as general information
only and should not be taken as specific, investment, tax
or legal advice. None of the information on this broadcast
was intended to be a solicitation for the purchase or
sale of any security.
Speaker 4 (34:49):
Further information is available by contacting John at Sanchezgaunt dot
com or seven seven five eight hundred and one eight
oh one.
Speaker 1 (34:57):
John Sanchez offers securities and advisory service.
Speaker 3 (35:00):
Through Independent Financial Group LLC, a registered broker dealer and
investment advisor member FINRA SIPC securities offered only in States.
Speaker 1 (35:08):
John Sanchez is registered in Sanchez Gaunt Capital Management
Speaker 3 (35:12):
LLC, in Independent Financial Group LLC are unaffiliated entities.
I think a dark Monday afternoon to you walking to
the John Sanchez Show on news Talk seven to eighty K,
which it's a pleasure to be with you and a
pleasure to be with the co hosts around the horn.
We shall got a full house today, of course. Jason
Gone is here.
Speaker 2 (00:14):
How are you doing? I am happily here on a Monday.
Speaker 1 (00:17):
Yeah, exactly, it felt like a Monday.
Speaker 2 (00:21):
Did the market open today?
Speaker 3 (00:23):
I know, I know you talk.
Speaker 1 (00:24):
About a snoozing session today, My goodness. Yeah, thank god.
We have our other very special guests, doctor Dennis Sanchez,
the AI Doctor, Because there wasn't a lot to talk
about about this market.
Speaker 3 (00:34):
Yeah, we would have had a heck of a time.
Speaker 1 (00:35):
Today, fulfilling a full hour if if it wasn't for
dnnist being here to talk to us and teach us
about AI.
Speaker 2 (00:41):
Are you talking meeting?
Speaker 3 (00:43):
Yeah, there you go.
Speaker 4 (00:45):
We could always make some stuff up. That's what jenn
A I does.
Speaker 3 (00:48):
Right, don't do that?
Speaker 4 (00:53):
Don't happy to be here.
Speaker 1 (00:55):
Good to have you, man, Good to have you, that's
for sure. Well, speaking of AI, let me tell you
what we have lined up for you. After we do
give you our brief stock market recap So over the
weekend I came across a very interesting story that I've
shared with Dennison, with Jason, and it's very very interesting.
In early twenty twenty three, there was a CEO of
(01:18):
a company called Ignite Technology. Did Jason you look them up?
I didn't get a chance. They're an enterprise software company
or do one of you know that?
Speaker 5 (01:25):
Yes, that is true, and I think it plays well
into the reason that you're bringing this topic up. So, yes,
that's what they do is enterprise software.
Speaker 3 (01:35):
It explains people what that means.
Speaker 2 (01:37):
Well, I mean it's pretty very pretty broad.
Speaker 5 (01:40):
Ultimately, you know, SaaS company, they build a product that
you know, i'd say, does what many many many humans
can do and simplifies thing enterprise you know, CRM is
an enterprise software company oracle companies like that that ultimately
provide a product that users utilize for efficient so be
(02:00):
it you know, working on their team or HR or
you name it.
Speaker 3 (02:05):
Okay, didn't any you want to add to that?
Speaker 4 (02:08):
Oh, it just it also kind of points to it
scales to large numbers of users, whereas you know, some
software is just for small businesses.
Speaker 3 (02:20):
Got it? Okay? Very good?
Speaker 1 (02:21):
So this gentleman again decides in twenty twenty three that
he is going to adopt AI in this company again,
this company called ignite Tech. Okay, he took it to
his employees and lo and behold, he got almost no
buy in by the employees. I don't know the size
of his workforce. I think they're a fairly large company.
(02:44):
But even getting buy in, He's like, look at folks,
we have got to make this transition into AI or
we're going to be left in the desk. I want
all of you to start off where fridays are going
to be aid. Nothing you do in the office except
focus on AI, learning it, figuring out ways some corporate
into the business, etc. So he tries this. Nobody wants
to adapt to it. They had reasons. Boy, Dennis, you've
(03:07):
told us about this so many times. They had every
reason in the world not to adapt AI. They felt
threatened with their job, they didn't want to take the
time to learn it. They had every excuse in the world.
So this gentleman Eric Vaughn said, Okay, fine, you guys
don't want to lose it or learn AI. Here's what
we're gonna do. We're gonna get rid of eighty percent
of you eighty percent of his workforce. He fired right
(03:30):
on the spot, not because the budget cuts, not because
they refused it, but because they refused AI. Right, So
no other reason other than they refused AI. And so
we fast forward two years later, because this again was
in twenty twenty three, and two years later he was asked,
would you do it again? Because his company went to hell.
He'll admit it in this article. He'll absolutely admit it.
(03:52):
He says, would you do it again? And he says absolutely.
So we thought, you know what, I don't know how
many businesses have the guts guy to do that, to say, okay,
we're adapting AI, but if you don't get on board,
we're gonna get rid of you. I mean, We've had
some threats right right, both of you. I've seen different
threats from you know, from the metas of the world
and you know, the large tech companies. But to go
(04:15):
that way and rip out eighty percent of your employees
and start over, and to now look back and go, Okay,
it was worth it, and what I do it again?
Speaker 3 (04:25):
And the answer is yes.
Speaker 1 (04:27):
So what we're gonna do is we're gonna go over
kind of some some highlights of mister Vaughan and what
he did, and then look into again, where are we
at this point? What happens if you find yourself as
an employee and your employer says, you've got to start
learning this stuff, maybe a little bit at a time.
Maybe like mister Vaughan, you're like starting right away and
you're gonna delve both feet in there, whatever it is.
(04:50):
But we wanted to get across this. Why are employers
doing this? This is how much they believe in it.
And more importantly, if you feel like you can't adapt
to AI in your in your work, Dennis has got
some great ideas about how you can start to prep
yourself and get ready for it. You know, it's almost
like if you wake up one day, guys, and the
employer goes, okay, all of you with a bachelor's degree,
(05:10):
you've got two years to get your MBA or you're fired.
Speaker 3 (05:12):
Right. Two years goes by, and.
Speaker 1 (05:14):
Maybe you know, ten percent of the workforce gets their NBA,
then the employer's going, okay, yeah, the other ninety percent
of you were gone. You didn't take the time to
learn and achieve this goal. It's the same thing with AI.
They're not taking the time to learn it and achieve
the goal. So as an employer, you're faced with a
tough decision. Do I get rid of everybody like mister
vond did, or do you go, oh, okay, we're just
going to.
Speaker 3 (05:33):
Kind of spoonfeed it to you.
Speaker 1 (05:34):
I mean, Dennis, you deal with this all the time
in your business and how you see it large companies
and small right.
Speaker 4 (05:43):
Yep. Well, it's a little unusual in this situation because
normally so there's really three ways that AI's having this
kind of impact. One is organizations aren't providing the training
for their employees. So that's one scenario. They're bringing the
technology in but they're just doing in the bare minimum,
or they're not doing anything at all, and they're just
(06:03):
handing it over to their employees and say you learn it,
and you know, we expect you to figure it out
on your own. The other part is, I mean, another
scenario is a leader saying, forget about all that was,
just get rid of them and bring the aim. We're
not even going to go through that step. So that's
another option. But this one's really really unique, and I
love the way to describe it as a radical restruction,
(06:26):
because this is this is a whole different perception.
Speaker 3 (06:29):
Uh.
Speaker 4 (06:30):
And it's it comes from a leader who gets it
and is trying to change the culture of his organization
and finding that it's how hard it is to do that.
You can't really change a culture. All you can do
is is adjust it a little bit here and there
because the culture is already there. And that's that brings
in a whole new kind of disruptive thing that's going
(06:53):
on with business and aim.
Speaker 1 (06:54):
Hmm, absolutely, And Jason, real quick before we get to
the stock market side of things. As an executive, if
you had if you had to make that choice, I
need to bring in this new technology. It's going to
make me more profitable and all the various financial reasons,
then you have to make that decision. You know, what
do you do with these employees that don't want to
adopt you? Either go okay, time out, We're going to
back up a couple of steps. We're going to set
(07:16):
up some rigid training schedules and so on and so forth,
or again, like mister Vaughan, did you get rid of
the people? But I think a lot of a lot
of businesses, especially the smaller ones, cannot afford to get
rid of all their staff because they're not adopting AI.
But to convince and you're you're, you're again, you're you're
a much better manager than I am. I'd love to
hear from you, Jason. You know, how do you convince
(07:37):
employees to change culture and adapt new technology when they're going, Wow,
this is something, right, guys, this is something that they
could lose their job. We all know that AI takes
a lot of jobs, but how do you how do
you adopt that mental you know, change to them and
get them on board.
Speaker 5 (07:52):
Yeah, and again, this story is a little bit different
than what we typically talk about of AI taking your job. Ultimately,
what he said was, you know, those of you who
don't want to learn it, adapt to make it part
of your process. I'm booting you and bringing in people
who will. And I think that's really what the conversation
(08:14):
is is a you know, you always have a lot
of those reluctant staff members for you know, we're going
to do this process now, We're going to do that
process now, and they.
Speaker 2 (08:24):
Drag their feet and drag their feet.
Speaker 5 (08:26):
Well, much as Dennis has mentioned so many times, you
can't drag your feet in this. This is not something
and That's why I keep saying it's an enterprise software company, right,
It's not a even our business right where different customer
facing levels, different needs from our clients. Versus, you're an
(08:47):
enterprise software company, you better have staff members that all
embraced technology, AI, all these things, because that's where your
industry and most industries clearly are going to become more
automated or use parts of AI or at least big
data ingestion into their process. But if you work in
(09:08):
an enterprise software company, you better know how to do it,
or they will put someone in there younger who does.
Speaker 2 (09:14):
And that's how you grow a firm like that.
Speaker 5 (09:16):
It's not with aniquated staff members who you know are
still using like cobalt.
Speaker 1 (09:20):
And that would be a great question, is you know,
what was the median age group of the people that
he got rid of versus the median age group of
the people.
Speaker 3 (09:27):
That came in.
Speaker 1 (09:28):
Because for those of you that are you know, are
our generation and so on and so forth, we hate change,
and technology's going so fast. I think this could be
something that so many of you could face in the
future where your employer says you got to adapt to
this or you're gone.
Speaker 3 (09:41):
And that's why we.
Speaker 1 (09:42):
Wanted to do the show on this and title it
how and why should you adapt AI at your workplace?
Because right Dennis, more and more businesses are going to
be doing this again, maybe not to this extreme, but
they're going to say, you've got to you got to
get on board, you got to learn this stuff.
Speaker 4 (09:55):
M seems like we're getting a lot of ultimatums. You
got to come in the office. Are you going to
lose your job? You better use the AI? Are you
going to lose your job? Pressure is on the worker.
Speaker 3 (10:05):
Yep, you're absolutely.
Speaker 2 (10:06):
Yeah, and then you'll lose your job to the AI.
So it's a perfect.
Speaker 3 (10:13):
All right, quick breaking we come back.
Speaker 1 (10:17):
We will go ahead and delve into it again today's
very very very boring market session and then get into
our AI topic with doctor Dennis Sanchez of course Jason,
and then it has turned over to the wonderful Kristen
Snow she's in the right now traffic center.
Speaker 3 (10:27):
Hello, Kristen, Welcome back to.
Speaker 1 (10:33):
The John Sanchez Show on News Talk seven eighty k
oh with Jason god and Sanchez Got Capital Management and
my brother, doctor Dennis Sanchez, the AI doctor. All Right,
we're gonna get to our topic regarding AI here in
a moment, how and why you should adopt AI in
your workplace in regards to this gentleman, this great article
written by Fortune Magazine that we're going to kind of
just go through and and really really correlate it to
(10:53):
what many of you, whether you're a business owner or
your employee, may be facing. And that is when the
employer says, all right, we're going into this new software,
going into this new revelation called AI, and you, as
an employee, go, I've been here for thirty years.
Speaker 3 (11:06):
This is the last thing in the world I'm going
to do.
Speaker 1 (11:07):
I'm gonna try to just hid in the shadows and
make sure the employer doesn't find out that I'm not
adapting AI well as this gentleman did. He laid off
eighty percent of his workforce and brought people in that
did want to do it. And I think this is
going to be something. And we'll get Dinnis's feedback because
this is what he does. He consults with all these
companies and see, you know, what do you what do
you do from an employer standpoint? What do you do
from the employee standpoint? When AI is adopted in the business.
(11:29):
But first, Jason, let's get the pain out of the way,
this this very point session that we had to do,
I don't know the way.
Speaker 3 (11:36):
Yeah, that's a sneezer.
Speaker 5 (11:40):
Yeah, I mean again, we talked last Friday that there's
not a whole heck of a lot going on until
we start to deal with earnings tomorrow.
Speaker 2 (11:48):
Right, we'll get the likes of home Depot, Toll Brothers. Uh.
You know, there was a little bit of.
Speaker 5 (11:52):
An M and A today with a day Force day
being acquired or looking to be acquired by Salesforce, so
merger in the software space. So I think you'll probably
continue to see more of that. I would argue, the
really only topical thing today was you know, Ukraine and
Europe and Trump and everyone on TV sort of talking
(12:12):
and gesticulating but not getting a whole lot of things accomplished.
I'm sort of tired of these butt smooching sessions. Let's
just actually get things done. A Meta was down about
two and a half percent. Sort of interesting there. We've
talked about, you know, the leading edge of sort of
software companies underperforming recently, right, a little bit of profit
(12:36):
taking probably into you know, month end I know we're
mid month, but you know a little bit of profit
taking given this seasonally week period we tend to see
end of August into September some you know, positive moves
in the healthcare space. Today, Really only data point we
had was on the Housing Market Index, which fell to
(12:57):
thirty two in August. This is the NHB versus a
consensus of thirty four, so a touch weaker than expected
on the housing side.
Speaker 2 (13:06):
But you know, again it was very much as sleeper.
Speaker 5 (13:08):
As we get home depot target lows later this week,
I think that's when you'll at least hear the market
talk more about retail and whether the consumer's dead yet
or going to die or not going to die, and
get hyperbolic.
Speaker 2 (13:22):
But it was a pretty quiet session overall.
Speaker 1 (13:24):
I'm going to go back to the healthcare sector for
just a moment. You know, big move, as you mentioned
Novo and Nordisk today, let me rephrase that a move
two point six percent increase as the company received an
emergency approval for its welgovy weight loss drug for treatment.
Speaker 3 (13:42):
Of liver disease. But that wasn't the big mover. The
big mover was this.
Speaker 1 (13:48):
Novo also announced that they're going to offer their GLP
one drugs, which is those SIMPEG for quote diabetes, and
we'll govy for weight loss at a cash price. You
ready for this, guys, four hundred and ninety nine dollars
per month for those self paying patients through good r X.
So of the gdr X good RX today sword percentage
(14:09):
wise thirty seven point up a dollar thirty nine to
five dollars and twelve cents, and it's up let's see
right now of five dollars and twenty nine cents in
the after hour session.
Speaker 3 (14:18):
So isn't it amazing to see the transformation?
Speaker 1 (14:21):
You know, we're talking AI, but let's not forget this
other kind of earth shattering transformation we're seeing in the
world of healthcare with these these weight loss drugs.
Speaker 3 (14:28):
Guys.
Speaker 1 (14:28):
I mean it, it's just revolutionizing some of these companies there,
really is.
Speaker 2 (14:32):
It has And again, if you know again to look
for bank shots.
Speaker 5 (14:36):
I've said over and over again, if you play the
long game, investing in broad exposure to biotech, in my opinion,
is going to be a sweet spot for AI adoption,
new drugs, new you know, cancer, uh, you'll be it,
immuno oncology, et cetera. Just better ways, faster ways to test.
You know, we're going to get some amazing things, in
(14:58):
my opinion over the next three to five years from
that space. So as much as people have been a
healthcare hater, you know, if you want to pick away there.
And remember, lower interest rates tend to help the biotechs too,
because they they borrow to fund their businesses. So they're borrowing,
costs will be lower. So very much. I keep sort
of jumping up and down. It's an area you want
(15:21):
to be adding to on weakness.
Speaker 2 (15:23):
It is biotech.
Speaker 1 (15:25):
Speaking of interest rates, as we said today, eighty three
point two percent probability according to the FED futures contract
of a quarter percent interest rate cat at the September meeting.
All right, let's transition. We've got a few minutes before
we go to break. Let's get the let's get the
stage warmed up. Bro, let's get down to this. So
once again, in early twenty twenty three, a CEO.
Speaker 3 (15:43):
By the name of.
Speaker 1 (15:45):
Now I just changed my page so it looking like
a really be here, Eric, Eric Vin, thank you very much.
On Eric Vin, CEO of the enterprise software company ignite Tech,
said look at twenty twenty three. All right, we're gonna
move over to AI in our company. Get on board, employee.
If you don't, we're going to get rid of you. Well,
a bunch of people did not get on board, about
eighty percent of his workforce. He got rid of them
(16:07):
and started all over. And the most important thing is
he was asked by Fortune magazine would you do that again?
And he said absolutely I would. He replaced hundreds of employees,
but wouldn't get down to the exact number. He said
that wasn't our goal, meaning getting rid of those people.
He said it was extremely difficult, but changing minds was harder.
This is a key sentence, guys, Changing minds was harder
(16:28):
than adding skills. It was by any measure of brutal reckoning.
But Von insists it was necessary and again said he
would do it again. So this is the premise of
what we're going to be discussing for the rest of
the show with doctor Sanchez, and that is how do
we get employees? Dennis, you deal with this, like I said,
you see it firsthand in Fortune, five hundred companies in
your business. Let's tackle this from an employer, and then
(16:51):
we'll later in the show we'll go into the employee.
How do we as employers, No, hands down, we need
to bring AI into our business for whatever reason, right, profitability, efficiency,
et cetera. All the great things at AI does, But
we know that our employees are not going to be adaptive.
So how do we kind of quote sell them on
the idea.
Speaker 4 (17:12):
Well, we don't know if they're going to react that way.
And one thing we're finding out is that when they're
introducing this technology, we see experience with everybody coming in.
Everybody's been working, you know, playing with chat GBT since
it came out, so they're actually coming in with some
experience even though it's new technology, and often they don't
(17:34):
even admit it. They're kind of keeping it quiet because
of a lot of reasons. One the scariest thing for
an IT director is that people are bringing in technology
like that and they don't have control over This is
all about data and data security. So the legal people,
compliance people, IT people don't sleep very well at night
(17:55):
as this new technology is coming in, and often they're
the ones, they're the ones that are pushing back because frankly,
they just don't want to deal with it. So I
don't think there's a business out there, a business sector
anywhere that doesn't have a reason to bring an AI
and find because it's it's a competitive edge. It's it's
a way just to stay you know, competitive, not even
(18:17):
get the edge, but just to be in the game.
It's hard to really any kind of business because take
take a product like Copilot that the value is really
as a time savings machine. It doesn't matter what the
role is, what it it's we're just talking about things
we do all the time, no matter what kind of
job we have, no matter what our role is. We
(18:38):
we create documents, we make decisions, we prepare for meetings,
we do those things right reports. So you know this,
this this kind of technology is playing right to those
strengths and it's easy to use because of that natural
interface we have just to talk to it. So you know,
there's you kind of go scratch your head. Why wouldn't
it be successful? Well, sometimes it starts with the leadership
(19:03):
not being a good example about making that change. Often
the leaders are the ones and they need to show,
they need to be a role model, and so often
these projects get started and they don't they don't bring
in the leadership to actually be you know have them
communicate to the employees and say this is part of
our survival. It'd be interesting to know what mister Vaughn
(19:25):
did to prepare for that change, because it really requires
a lot of laying the groundwork in advance. You don't
just come in and overnight have that technology there, even
though you could. It's the easiest thing to turn on
because it's all in the cloud. And that's that's changed
the dynamics too. We used to have, you know, a
(19:45):
year to bring in new technology. Now it's a turn
of the switch almost. It's that easy to do, and
so all of a sudden people are working with it,
and then all the way down the line their parts
that are that are.
Speaker 3 (19:59):
Training doing that.
Speaker 1 (20:00):
When when you convert us over to the cloud, what
was that a year or two ago? I mean yeah,
I mean you did it relatively painless, right. We always
like everybody, we had servers and backups and everything. You're like, no,
we're going to the cloud, and so yeah, it's it
can be done.
Speaker 3 (20:13):
Quickly, right.
Speaker 2 (20:14):
Yeah.
Speaker 5 (20:14):
And the interesting part about it too is sort of
the dentist's point about being able to turn it on.
The hard part though, is the data, right, is what
do you have internally that is useful for interacting with
right where you know, and a lot of these newer
tools you mentioned copilot where you know you can almost
(20:38):
have it watch what you do throughout the day and
then it can start to recommend things to streamline your process. Right,
And that's the part that is very important for folks
to keep an eye on is And this is what
I say to our team here, like you know, my
goal is never to replace anyone, right, I want to
add bodies before get rid of them. But what part
(20:59):
of your job are you doing now that if you
sat in and said, man, I really wish if only
this could happen, it would make my life easier. And
then you just sit down and figure out a way
to do it right. And that's what AI and these
tools can allow you to do instead of you know
what part are very much time consuming that don't really
(21:20):
add a whole heck of a lot of value to
me or the firm.
Speaker 2 (21:24):
Let's figure out how to do it right.
Speaker 5 (21:26):
And that's it just takes time to think that way,
not being closed minded, but more so excited about you know,
you do a good job of making your role efficient.
I promise they will keep you around absolutely.
Speaker 1 (21:39):
All right, we'll come back and continue our discussion. Let's
turn over to Ryan Nettar. He's got news trafficking weather.
Speaker 3 (21:43):
Hey, Ryan Condors landing.
Speaker 1 (21:53):
With doctor Dennis Sanchez, the AI doctor, and of course
Jason Gunn the professor.
Speaker 3 (21:58):
All right, once again, a quiet session in the street.
Speaker 1 (22:00):
Down thirty four on the now Rouse seven on the
nasdac in im lower by one on the SMP five hundred.
All right, we've been discussing with Dennis a very unaristing
article we came across over the weekend from Fortune magazine.
A fellow by the name of Eric Vaughan owned a
company called Our Owns, a company called Ignite Tech. Decided
a few years ago it's like AI is going to
be part of our business. Want everybody aboard? Well, he
got all kinds of pushback from the employees. So he
(22:21):
got rid of eighty percent hundreds of employees because they
went adapt brought in new ones, and they adapted and said.
Speaker 3 (22:26):
It was the best thing in the world. He would
do it again. Was it painful? Absolutely?
Speaker 1 (22:30):
But I want to real quick Dennis, before we go
back to the question I left you with, which is
you know, give us a couple of bolt points of
how business owners can adapt this right so they don't
have to go through a mass layoff. But I want
to I want to share something, folks, for those of
you that are business owners that don't understand how powerful
AI is into your business. So this article talks about
(22:50):
a consultant that was working with Ikea and a company
called Klarna Na. Klarna is a Swedish buy now, pay
later firm.
Speaker 2 (23:00):
It's the same as the firm. It's a firm, but
they aren't publicly traded yet.
Speaker 3 (23:04):
Okay, yeah, I was just going to give that example. Okay.
Speaker 1 (23:07):
So they made a decision again to reduce members of
its customer support staff and a pivot to AI, only
to rehire them for.
Speaker 3 (23:16):
The same roles.
Speaker 1 (23:16):
Quote, we're near the point where AI is more intelligent
than most people's knowledge, most people doing knowledge work. But
that's precisely what augmentation beats automation. A rep for Klara
told Fortune the company did not lay off employees, but
has instead adapted several approaches to a customer service, which
is managed by an outsourced customer service provider who are
paid according to the volume of work required. Here's what
(23:39):
gets interesting the launch of an AI service assistant reduced
the workload by the equivalent of seven hundred full time
agents from roughly three thousand down to twenty three hundred,
and the third party provider redeployed those seven hundred workers
to other clients. According to Klarna, now that the AI
customer service agent is quote handling more complex queries than
(24:01):
when we launched, Carna said, that number has fallen to
twenty two hundred people. Carna says it's contracting as we
hire just two people in a pilot program and designed
to combine highly trained human support staff with the AI
to deliver outstanding customer service. So Dennis there, you go,
right there, right this company saves seven hundred paychecks every
single week of month. Whatever it is, significant savings because
(24:22):
they adapted AI. Now easier said than done. You work
with these companies, you consult with them. What are just
a couple of brief bullet points that you would recommend
to those business owners listening right now that are going.
I know it's like social media. I know I've got
to do it.
Speaker 3 (24:36):
I just don't know where to start. I don't have time.
Speaker 1 (24:37):
I'm working fifteen hours a day. Now, you tell me
to bring in new technology. What's your advice to them?
And then we're going to transition over.
Speaker 2 (24:43):
To the east.
Speaker 4 (24:45):
Okay, it's actually pretty simple. They don't really have a
choice whether or not they're going to bring in AR
or not, so that's a given. There's no industry, there's
small medium sized business that doesn't that would benefit by AI.
The first thing I would do is talk to my
employees and ask them how they feel about it. I
(25:08):
know that sounds like, oh, come on, who does that?
But because of this the conscious and subconscious way they're reacting.
Sometimes they don't even know why they're reacting so negatively
towards this new technology coming in, it's important to get
them involved in the conversation early because the one emotion
that can really fix everything as trust in this relationship.
(25:32):
So if they're transparent about their plans and what they
want to do from the beginning, and say, you know
what if Klarna, using that example, said this is the plan,
we're going to bring this stuff in, but we're going
to redeploy, we're going to reskill. You know, it would
train you guys to do other things. We want to
get you in front of customers. You're great in that role.
That's that's a vision. They don't you know, create a vision,
(25:55):
get people behind you, and then everything will kind of
fall in place. If you don't do that, then you know,
I have Actually I saw a comp company they announced
an AI initiative and the same day they said we're
going to be laying off thousands of people. So how
do you think AI was accepted within that organization. They're
(26:15):
still struggling to get it, you know, adopted. Yeah, the
right way to do it, the wrong way to do it.
Stay close to your your staff and your and your employees. Okay,
so that's bullepoint. Give me one more out. An employer
gets the employees to adapty So get them get into
buy in.
Speaker 3 (26:33):
I guess I would.
Speaker 4 (26:34):
I would. I would, so assuming that there's going to
be buy in, I would think of ways to motivate
them too. It's a combination of teaching them how to
motivate themselves, because there's a lot that we're going to
rely a lot on employees taking the extra effort. Jason
was talking about some of the things that come out
(26:56):
of Actually when you use this technology for a while,
that's when you discover these aha moments, These these these
nut It's a goal that I talked about before that
weren't even that just kind of came out of nowhere.
But that comes from people looking, uh and at opportunities
for processes and things that they could automate, and also
(27:16):
knowing what to do with with the technology when they
see it or communicate it. So you know that if
we can get everybody to that point, if I were
a leader, you're you're in You're in good shape. But
I would also think about ways to motivate them, encourage
the people that spend more time learning it and and
and offer more ideas and more innovation. The thing about
(27:38):
this technology and that they started with cloud, we know
if they're using it or out. We know how they're
using it, so this isn't a mystery it. Eventually it's
all going to come down to John, we were noticing
you're not using it, so there's no hiding you're gonna
it's it's really gonna And that's when you start getting
(28:03):
the That's when when employers start really knuckling down and saying, listen,
this is your thirty day warning to start. Here's the
training again, all that kind of stuff. So a lot
of pressure on the employees.
Speaker 2 (28:18):
Yeah, and you can also you can also tie comp
to it, right, you can say, you know, set certain
absolutely goals where if you do X, there's a bonus
of some kind.
Speaker 5 (28:28):
And you know, I mean incentivized like you said, employees
to be proactive, incentivize them to create things that make
their role more efficient, et cetera. Like I said before
the break, I assure you, if you're good and you
make your role better and more efficient, they're going to
keep you because you're doing what they would like. You
(28:50):
want more firepower per person and that's what you know
the smart folks will do. If you're resistant to it,
and you know you think that pen and paper and
typewriters are the wave of the future, then you're probably
not going to be around very long.
Speaker 1 (29:05):
So Dennis, I need a one minute answer on this
to this next question that we'll come back and focus
on the employee. And the question is this, do you
foresee in all your work do you foresee that there's
ever a global certification program for an employer where you go, Okay, employee,
you're going to take this basic almost like a high
school diploma, this basic course, and at least I know
(29:25):
you're quote basic AI certified and then different levels of
certification all the way to a PhD type of certification
in the world of AI, because how do we know
if employees.
Speaker 4 (29:37):
You already see that? Of course good, they might look
at Microsoft certifications have a lot of weight in the industry.
And if you're an employee, there's a lot of free
training too. That's the other thing. Amazon provide something free training.
Speaker 3 (29:54):
Google does.
Speaker 1 (29:56):
I mean if on that employee our firm and the
employee goes, oh, you know, I'm AI genius here, how
do you prove that? Right? At least if they have
a certification, you know they've gone through a formal core
and got certified quickly.
Speaker 4 (30:10):
You know, you just brought up a great point something
I read over the weekend about the Google cio saying
they're now bringing in people for their interviews because they
found them so often they were faking all their certifications,
even answering using AI and the interviews. So they're going
to bring him in. So you know, it's getting hard
(30:35):
bottom line.
Speaker 1 (30:36):
Yeah, yeah, okay, all right, very good, a AI university
here we come. It's turned over to Christen Snow the
right now Jackson, Hello, Christen Welcome back to the John
Sanchez Show on Newstalk seven eighty. KI is with Jason
Gott and my brother, doctor Dennis Sanchez, the AI Doctor.
We're talking about how and why you should adopt AI
(30:56):
in your workplace. So we went through some very valid
ble points that Dennis presented to us in regards to
the employer side. Now we're going to shift over to
the employee side. And again our discussion today has been
based upon this great article and fortune where a CEO
got rid of eighty percent of a staff that would
not adapt to AI. Very obviously dramatic move to get
rid of eighty percent of your employees, hundreds of them
(31:17):
and start all over. But again, folks, listen to us
when we tell you this, and Dennis you're the expert here,
and that is if you are an employee of a
business and AI is brought up, like you keep saying
twice today, Gennis, you've said, there's not one business out
there that will not be using AI in some form.
Speaker 3 (31:32):
Or fashion in the future.
Speaker 1 (31:34):
So as an employee, you better get on the band
train or you're going to be out of a job.
Speaker 3 (31:38):
Right, So what's your advice.
Speaker 1 (31:40):
Let's go through a couple bullet points for the employee
listening right now, going again, especially an older one.
Speaker 3 (31:45):
I can't adapt to this technology. What do I do
to keep my job?
Speaker 4 (31:50):
Well, wouldn't you like to be in the twenty percent
that kept their jobs in that company? What were they doing?
It was right? I bet you that they were proactive
about the training, make sure they intended, they practiced, they
were positive about it. You know, those are the right
kind of behaviors. But the bottom line is this is
(32:10):
this is a time we where we really have to
take control of our own future. We can with AI
because we can we can learn on our own how
to use AI. It's it's it's accessible, there's free training,
but the motivation has to be there. But uh, it's
it's like the one of the things that's uh CEO
(32:31):
did say is it's it's this there's no option. It's
it's an extential, existential thing that we have to do
or we're not going to survive. Think about it in
those terms. I have thought about it in those terms too,
where I think we're at a pivotal point of whether
you know, what are our future is going to be?
Like take control of your own future. Get the training,
(32:54):
talk to other people about have fun with it, be creative,
take you know, just experiment.
Speaker 1 (33:01):
Okay, you hit a word. I don't know if you
even realized you hit it, but I think it's the
key word. And that word is attitude. Right.
Speaker 3 (33:07):
We can all control our attitude.
Speaker 1 (33:09):
I had a friend when I was rending the business,
a couple of years ahead of me in the business,
and he said, John, attitude, not aptitude, will determine your altitude.
And that has stuck with me for thirty six years
since I met the guy. So that attitude, right, And
that's I think you hit it right on the spot there, bro,
And that is you know, yes, your employer does not
expect you to be an expert in AI. You know,
(33:31):
everybody's just learning this new technology. But if you're like, hey,
I'm a really gung hold to learn this, you know,
tell me where I can learn more and more. That's
I think ninety percent of the battle.
Speaker 3 (33:39):
So you're not part of that. You know eighty percent
that loosed their job.
Speaker 4 (33:42):
Right, right, and it it It is about being proactive,
taking control, motivating yourself. You can put it in any
terms you want, but you're going to be a survivor.
And a thriver in this market. And whether it's your
business or as an employee, if you really start acting
(34:04):
that way, don't worry about anybody else. But the opportunities
are there absolutely.
Speaker 1 (34:11):
Well has always done an excellent information Jason, great input
on your from your standpoint.
Speaker 3 (34:15):
Also, it's just we can talk.
Speaker 2 (34:17):
Yeah, it's a great company, Brook Gonta have you every money?
Speaker 4 (34:19):
This is we just talk every Monday about this.
Speaker 1 (34:22):
We we'll do all right, boys, great job as always.
We'll do to get to more on the John Sanchez Show.
Speaker 3 (34:27):
Gouv. Let's have a great afternoon. We'll see you then.
Speaker 4 (34:31):
This program was sponsored by Sanchez Gaunt Capital Management LLC.
Speaker 1 (34:36):
The material in this program was intended as general information
only and should not be taken as specific, investment, tax
or legal advice. None of the information on this broadcast
was intended to be a solicitation for the purchase or
sale of any security.
Speaker 4 (34:49):
Further information is available by contacting John at Sanchezgaunt dot
com or seven seven five eight hundred and one eight
oh one.
Speaker 1 (34:57):
John Sanchez offers securities and advisory service.
Speaker 3 (35:00):
Through Independent Financial Group LLC, a registered broker dealer and
investment advisor member FINRA SIPC securities offered only in States.
Speaker 1 (35:08):
John Sanchez is registered in Sanchez Gaunt Capital Management
Speaker 3 (35:12):
LLC, in Independent Financial Group LLC are unaffiliated entities.
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