Dave interviews Cody Schneider, the CEO of Draft Horse AI and Swell AI, who shares insights on automating workflows using artificial intelligence (AI). Cody emphasizes the importance of AI in structuring unstructured data to streamline processes within organizations. By implementing AI tools to automate tasks like paperwork in real estate and sales, companies can enhance efficiency and allow employees to focus on high-touch human aspects of their work.
Cody discusses the significance of data management in successful AI implementation, highlighting the need for access controls and providing context to AI algorithms. He explains how AI can be leveraged to transform content by extracting knowledge from source material and generating custom reports or outputs. By utilizing AI to work off proprietary data sets and libraries, organizations can create more valuable and tailored solutions, emphasizing the importance of expert knowledge over general AI outputs.
The conversation shifts to the concept of minimum iteration in product development, where Cody advocates for getting products into the hands of users quickly to gather feedback and iterate rapidly. He stresses the value of speed in action as a key metric for client satisfaction and retention. By framing AI tools as aids to enhance human potential and augment workflows, Cody encourages founders to empower their teams to perform at superhuman levels by leveraging AI capabilities effectively.
Cody concludes by emphasizing the role of AI in augmenting human expertise and boosting productivity within organizations. By positioning AI as a tool to handle repetitive tasks efficiently, Cody suggests that organizations can empower their teams to focus on more strategic and creative aspects of their work. The episode provides valuable insights into the practical applications of AI in enhancing workflows and driving business growth through efficient automation and human-AI collaboration.
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[00:00:02] [SPEAKER_01]: Let's do a little bit more AI.
[00:00:04] [SPEAKER_01]: Let's talk to a developer who is leading a couple of product companies who have been building
[00:00:09] [SPEAKER_01]: different solutions.
[00:00:11] [SPEAKER_01]: What are his prerequisites?
[00:00:12] [SPEAKER_01]: How is he measuring success?
[00:00:15] [SPEAKER_01]: And what is necessary to build one that's successful?
[00:00:18] [SPEAKER_01]: Cody Schneider joins me today on this bonus episode of the Business of Tech.
[00:00:25] [SPEAKER_01]: Today's episode is supported by CoreView.
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[00:01:15] [SPEAKER_01]: Cody, well thanks for joining me today.
[00:01:17] [SPEAKER_01]: Thanks for having me Dave.
[00:01:18] [SPEAKER_01]: Super excited to be here.
[00:01:20] [SPEAKER_01]: So I'm going to dive sort of right in.
[00:01:22] [SPEAKER_01]: You've been thinking a lot about the way you can automate and enhance workflows using artificial
[00:01:29] [SPEAKER_01]: intelligence.
[00:01:30] [SPEAKER_01]: Tell me a little bit about what you're doing there and what your framework kind of for success
[00:01:34] [SPEAKER_01]: and what you're looking for in the workflow space is.
[00:01:38] [SPEAKER_00]: Yeah, absolutely.
[00:01:40] [SPEAKER_00]: So I think that the high level of all this is that AI is incredible at taking unstructured
[00:01:45] [SPEAKER_00]: data and structuring it.
[00:01:46] [SPEAKER_00]: So how I see the best implementations occurring currently is you look at a current processor
[00:01:52] [SPEAKER_00]: system that an organization has, you audit that, you take a step back and you're like,
[00:01:56] [SPEAKER_00]: okay, what tools can I implement within this workflow to try to automate it as much of
[00:02:00] [SPEAKER_00]: this as way?
[00:02:01] [SPEAKER_00]: And then this really enables the humans that are involved in that process to focus
[00:02:06] [SPEAKER_00]: on those human components.
[00:02:07] [SPEAKER_00]: So you can example real estate and sales, right?
[00:02:11] [SPEAKER_00]: A lot of paperwork that's typically happening on the back end of that.
[00:02:13] [SPEAKER_00]: AI is a great solution for that paperwork component of, oh, I have all this information.
[00:02:18] [SPEAKER_00]: I'm trying to get it into the structured PDF format as an example.
[00:02:22] [SPEAKER_00]: And then that allows for that sales director or whoever is on the front lines doing those
[00:02:27] [SPEAKER_00]: calls to focus on those high touch human parts of this business.
[00:02:31] [SPEAKER_00]: And that's how we can cut costs and also improve that efficiency within those companies.
[00:02:36] [SPEAKER_00]: So I think that's the biggest thing though is like that unstructured data is structured.
[00:02:40] [SPEAKER_00]: That is what we're seeing be the most impactful things that these companies can do to begin with.
[00:02:46] [SPEAKER_01]: Now, when we talk about unstructured data, is it just chaotic, massive data?
[00:02:52] [SPEAKER_01]: 100%
[00:02:53] [SPEAKER_01]: Throw it in there or but there has to be some prep, right?
[00:02:56] [SPEAKER_01]: In order to get things to be useful, we have to at least take a look at it and
[00:02:59] [SPEAKER_01]: understand like, well, we don't want to give everyone access to everything.
[00:03:02] [SPEAKER_01]: We perhaps want to think about access controls.
[00:03:05] [SPEAKER_01]: Like talk to me a little bit about the process of data management that you think
[00:03:09] [SPEAKER_01]: has to happen to be successful doing something with AI.
[00:03:14] [SPEAKER_00]: Yeah, I think on the data management side, of course, certain documents within
[00:03:20] [SPEAKER_00]: the organization need to have the same access controls, etc.
[00:03:24] [SPEAKER_00]: I think the bigger thing that again, we work a lot in the content space, right?
[00:03:29] [SPEAKER_00]: So a lot of our source data or source files that we're touching is
[00:03:33] [SPEAKER_00]: a lot of its public information like it's a podcast you could go and download it
[00:03:37] [SPEAKER_00]: and transform it.
[00:03:39] [SPEAKER_00]: But the bigger thing is that we can give all of this context.
[00:03:44] [SPEAKER_00]: So as an example, say you wanted to write a blog post, right?
[00:03:47] [SPEAKER_00]: And I go and I scrape the front page of Google for a target keyword phrase.
[00:03:51] [SPEAKER_00]: So I get the transcripts from the YouTube videos.
[00:03:53] [SPEAKER_00]: I get all the blog post content from that.
[00:03:55] [SPEAKER_00]: I put that in the context window and then I say, okay,
[00:03:57] [SPEAKER_00]: write me a detailed blog post outline for this target keyword,
[00:04:02] [SPEAKER_00]: writes the outline and then I can prompt it now, write the article.
[00:04:05] [SPEAKER_00]: I don't have to structure that data perfectly on that basically first go,
[00:04:11] [SPEAKER_00]: whatever in that context window to extract that knowledge.
[00:04:14] [SPEAKER_00]: And I think that's the piece where I'm seeing companies start to realize this
[00:04:18] [SPEAKER_00]: and it's like, oh, I have all these PDFs.
[00:04:21] [SPEAKER_00]: Maybe it's internal documentation on processes or white papers that we wrote.
[00:04:26] [SPEAKER_00]: I can take these 10 different white papers based off of this current client situation.
[00:04:29] [SPEAKER_00]: I can now create a custom report or a custom output for them by providing this
[00:04:36] [SPEAKER_00]: unstructured version of this.
[00:04:38] [SPEAKER_00]: It doesn't have to be perfect.
[00:04:39] [SPEAKER_00]: It can extract that knowledge and information and then transform it or
[00:04:42] [SPEAKER_00]: translate it into the format that you're trying to get it.
[00:04:45] [SPEAKER_00]: And I think how, especially when you kind of scale this up to a more technical part,
[00:04:50] [SPEAKER_00]: like even providing like, here's a JSON format, right?
[00:04:53] [SPEAKER_00]: That I want you to output almost that scaffolding.
[00:04:55] [SPEAKER_00]: Like here's the skeleton of what I want this document that you're going to generate
[00:04:59] [SPEAKER_00]: to look like and then providing that source material that it can then
[00:05:03] [SPEAKER_00]: extract and pull from it.
[00:05:05] [SPEAKER_00]: That's how, again, we're seeing these organizations basically take all of this
[00:05:11] [SPEAKER_00]: disparate information and then consolidate it into a new piece of content
[00:05:17] [SPEAKER_00]: or a new, whatever that ends up being within the organization.
[00:05:21] [SPEAKER_01]: Now, one of the things that you mentioned some of the interesting sort of sales
[00:05:26] [SPEAKER_01]: scenarios, the workflow scenarios.
[00:05:28] [SPEAKER_01]: And we oftentimes are hearing a lot of the sort of hype ones too.
[00:05:31] [SPEAKER_01]: You also talked about like the content transformation ones.
[00:05:34] [SPEAKER_01]: How are you differentiating between sort of that hype and practical applications
[00:05:39] [SPEAKER_01]: for AI?
[00:05:40] [SPEAKER_01]: Like where are the areas that you find most useful and what are your criteria for that?
[00:05:44] [SPEAKER_01]: Absolutely.
[00:05:45] [SPEAKER_00]: The most impactful places that this can be.
[00:05:48] [SPEAKER_00]: So like if I just go and I prompt the AI to do something, right?
[00:05:50] [SPEAKER_00]: It's writing from its general knowledge.
[00:05:52] [SPEAKER_00]: The general knowledge of the internet is very average where all of the value is
[00:05:57] [SPEAKER_00]: in the tails, right?
[00:05:58] [SPEAKER_00]: So expert knowledge has actually become more valuable than ever before.
[00:06:03] [SPEAKER_00]: And so what we see is the real value is when you have your own data sets,
[00:06:07] [SPEAKER_00]: you have your own libraries of content,
[00:06:09] [SPEAKER_00]: you have your own proprietary information that you're then using
[00:06:12] [SPEAKER_00]: AI to work off of, right?
[00:06:14] [SPEAKER_00]: It's using its general knowledge to generate some type of new thing from
[00:06:18] [SPEAKER_00]: that source material or files that you provide it.
[00:06:23] [SPEAKER_00]: That is actually where all the value comes from.
[00:06:27] [SPEAKER_00]: Like there's a, you know, we see this right now in the sales component
[00:06:30] [SPEAKER_00]: like where it's like, hey, we're going to automate an BDR role or an SDR role
[00:06:33] [SPEAKER_00]: entirely.
[00:06:34] [SPEAKER_00]: Like you're going to not even have to employ this person.
[00:06:36] [SPEAKER_00]: It's like actually probably not maybe five years from now,
[00:06:40] [SPEAKER_00]: but what's way more effective is like what's a task that this person
[00:06:43] [SPEAKER_00]: is doing currently that they hate doing.
[00:06:46] [SPEAKER_00]: Like a lot of times you can just go into the organization and be like, hey,
[00:06:49] [SPEAKER_00]: you know, Jennifer, like what do you hate doing on a daily basis?
[00:06:52] [SPEAKER_00]: She's like, well, this is the massive time suck and it's mind numbing work.
[00:06:56] [SPEAKER_00]: You know, nine times out of 10, we see that like there's some way to
[00:06:58] [SPEAKER_00]: typically like automate or augment that workflow that they're currently
[00:07:03] [SPEAKER_00]: creating.
[00:07:04] [SPEAKER_00]: And that is where it's the most impactful.
[00:07:07] [SPEAKER_00]: Like that is especially on a team management side and make clients
[00:07:10] [SPEAKER_00]: successful and happy.
[00:07:12] [SPEAKER_00]: And I mean, employee turnover is like a huge problem right in the U.S.
[00:07:16] [SPEAKER_00]: just looking within the workforce.
[00:07:17] [SPEAKER_00]: If we can get rid of these things that they despise about their day job
[00:07:21] [SPEAKER_00]: or going to work, that's a way for us to increase that retention reduces
[00:07:26] [SPEAKER_00]: the costs on the HR department for basically having those teams leave.
[00:07:31] [SPEAKER_00]: And so I think that's again, the things that we're seeing on the
[00:07:34] [SPEAKER_00]: front line that companies are implementing that are they're
[00:07:38] [SPEAKER_00]: seeing success with and affecting their bottom line of positively.
[00:07:43] [SPEAKER_01]: So it's interesting because you said in the in there, you know, you talked
[00:07:46] [SPEAKER_01]: about how knowledge is the most valuable stuff and I would agree with
[00:07:50] [SPEAKER_01]: you by the way, I think expertise is where is bubbling up is even
[00:07:52] [SPEAKER_01]: more important.
[00:07:54] [SPEAKER_01]: And you also said correctly, and I would agree with you that like
[00:07:56] [SPEAKER_01]: the average AI output is intensely average.
[00:08:01] [SPEAKER_01]: Right?
[00:08:01] [SPEAKER_01]: So how do you view kind of bringing those two things together if
[00:08:05] [SPEAKER_01]: the AI's output is intensely average?
[00:08:09] [SPEAKER_01]: But at the same time, we're trying to make, you know, people
[00:08:12] [SPEAKER_01]: and knowledge more valuable.
[00:08:14] [SPEAKER_01]: How do you see those two working together best?
[00:08:18] [SPEAKER_00]: For sure.
[00:08:19] [SPEAKER_00]: I think the expert level of this is you're training your own models,
[00:08:22] [SPEAKER_00]: right?
[00:08:23] [SPEAKER_00]: Like you're basically modifying the base models in some way for
[00:08:26] [SPEAKER_00]: your companies.
[00:08:27] [SPEAKER_00]: Striper is a great example of this where they basically took chat
[00:08:30] [SPEAKER_00]: GPT and then they fine tuned it so that it was, you know,
[00:08:33] [SPEAKER_00]: the chat bot that you're working with internally is it feels
[00:08:38] [SPEAKER_00]: on brand.
[00:08:39] [SPEAKER_00]: That makes sense.
[00:08:41] [SPEAKER_00]: Aeroelectronics is another huge company, you know, they resell
[00:08:43] [SPEAKER_00]: components, same idea.
[00:08:45] [SPEAKER_00]: They have like an internal tool that they built.
[00:08:46] [SPEAKER_00]: It's just basically a fine tuned version of that.
[00:08:48] [SPEAKER_00]: The cheating way to do this, you don't want to go fine tune
[00:08:51] [SPEAKER_00]: it because it does take training data and just, you know,
[00:08:54] [SPEAKER_00]: basically energy, right?
[00:08:56] [SPEAKER_00]: Like which is one of the most valued commodities at this
[00:09:02] [SPEAKER_00]: point.
[00:09:03] [SPEAKER_00]: Everybody's fighting for all this GPU power, but the other
[00:09:08] [SPEAKER_00]: way around this is you can basically like, for example,
[00:09:11] [SPEAKER_00]: say I provide this transcript and it has all this unique
[00:09:13] [SPEAKER_00]: vocabulary within it.
[00:09:14] [SPEAKER_00]: I can say, hey, you know, use vocabulary from that source
[00:09:17] [SPEAKER_00]: material with what you're writing.
[00:09:20] [SPEAKER_00]: Also here's your persona.
[00:09:21] [SPEAKER_00]: So like defining who that, like what the person is that
[00:09:24] [SPEAKER_00]: you're writing from that angle.
[00:09:26] [SPEAKER_00]: And then the other piece is then you can even like
[00:09:30] [SPEAKER_00]: define the tone, style and voice based off of, okay.
[00:09:34] [SPEAKER_00]: The way I try to talk about it is like traditionally you
[00:09:37] [SPEAKER_00]: would go make like a brand style guide as an example
[00:09:39] [SPEAKER_00]: within an organization.
[00:09:41] [SPEAKER_00]: You're now going to have like an AI style guide, same
[00:09:44] [SPEAKER_00]: concept, but it's basically these base level prompts
[00:09:47] [SPEAKER_00]: that your whole team is interacting with these tools
[00:09:50] [SPEAKER_00]: with and that's how you create consistency.
[00:09:52] [SPEAKER_00]: That's how you can create better outputs.
[00:09:54] [SPEAKER_00]: And again, it's like everything and, you know,
[00:09:57] [SPEAKER_00]: anything in technology we work with, especially on
[00:09:59] [SPEAKER_00]: the data science side, it's garbage in, garbage out.
[00:10:01] [SPEAKER_00]: Like content quality is super, whatever you provide it
[00:10:05] [SPEAKER_00]: is super important to create like good outputs.
[00:10:08] [SPEAKER_00]: But once you have in that library, that back
[00:10:13] [SPEAKER_00]: catalog information or knowledge, it's very capable
[00:10:16] [SPEAKER_00]: at understanding, oh, like here's the language
[00:10:19] [SPEAKER_00]: that it speaks in.
[00:10:20] [SPEAKER_00]: Here's the context for me to, for whatever it is
[00:10:24] [SPEAKER_00]: I'm working on or producing from an output standpoint
[00:10:26] [SPEAKER_00]: and you're just going to get a way higher quality piece
[00:10:30] [SPEAKER_00]: of generated whatever it creates when you provide
[00:10:36] [SPEAKER_00]: that source material that you have, that is to your
[00:10:39] [SPEAKER_00]: standard, that is to your quality level.
[00:10:41] [SPEAKER_00]: And to make a cron-created example of this,
[00:10:43] [SPEAKER_00]: like say you, SEO was a huge thing that your company
[00:10:46] [SPEAKER_00]: was doing, you were writing a ton of blog posts
[00:10:48] [SPEAKER_00]: that was like where you're getting inbound traffic.
[00:10:50] [SPEAKER_00]: You can go and show the AI, hey, here's all these
[00:10:53] [SPEAKER_00]: blog posts, we'll say our top 20 best performing
[00:10:57] [SPEAKER_00]: create a template outline that I can use in the future
[00:11:01] [SPEAKER_00]: for how blog posts should be structured.
[00:11:03] [SPEAKER_00]: Okay, cool, now I want to go write another one.
[00:11:05] [SPEAKER_00]: I take that template and outline and I take the language
[00:11:08] [SPEAKER_00]: and the tone and the style and the voice
[00:11:10] [SPEAKER_00]: and I apply that all together into that composite
[00:11:13] [SPEAKER_00]: and what you're going to get from that.
[00:11:15] [SPEAKER_00]: I mean it's going to be in the top 10%
[00:11:18] [SPEAKER_00]: from a content standpoint in comparison to if I just
[00:11:20] [SPEAKER_00]: tried to one shot single prompt the AI
[00:11:23] [SPEAKER_00]: to write a document for me, right?
[00:11:25] [SPEAKER_00]: It has context, it has more understanding
[00:11:28] [SPEAKER_00]: of what the expectations and the outputs are
[00:11:30] [SPEAKER_00]: and I almost try to get people to think about it
[00:11:32] [SPEAKER_00]: like hey, it's a junior team member, right?
[00:11:34] [SPEAKER_00]: Because as detailed and step by step as you can make it,
[00:11:38] [SPEAKER_00]: that's how you're going to get the best outcomes
[00:11:40] [SPEAKER_00]: from a generation standpoint.
[00:11:42] [SPEAKER_01]: Interestingly, I'm going to shift gears a little bit
[00:11:45] [SPEAKER_01]: because you know, and I'm going to have to give
[00:11:46] [SPEAKER_01]: some listeners some a little bit of exposure
[00:11:48] [SPEAKER_01]: to the way this works.
[00:11:49] [SPEAKER_01]: Actually, I get pitched a lot of ideas of topics from teams
[00:11:53] [SPEAKER_01]: and your team reached out with a really interesting one
[00:11:55] [SPEAKER_01]: and as I was prepping to get this ready
[00:11:57] [SPEAKER_01]: I actually have to disclose I realized
[00:11:59] [SPEAKER_01]: I was a customer of yours because one of the products
[00:12:01] [SPEAKER_01]: you work on, Swell AI is something that I use in my workflow.
[00:12:05] [SPEAKER_01]: The reason that I wanted to talk to you was
[00:12:07] [SPEAKER_01]: the approach you do to product development.
[00:12:10] [SPEAKER_01]: So you've got a couple of different products
[00:12:11] [SPEAKER_01]: that you work on and you have a theme
[00:12:14] [SPEAKER_01]: of minimum iteration and I was really intrigued
[00:12:17] [SPEAKER_01]: about this idea and it's one of the reasons
[00:12:20] [SPEAKER_01]: I wanted to have you on the show.
[00:12:21] [SPEAKER_01]: Tell me more about this idea of minimum iteration.
[00:12:25] [SPEAKER_00]: Yeah, so it's like every early stage company,
[00:12:29] [SPEAKER_00]: we just try to get things in public as fast as possible.
[00:12:35] [SPEAKER_00]: I think very often and I'm a problem of this as well.
[00:12:40] [SPEAKER_00]: It's like I know where this is going and that's
[00:12:44] [SPEAKER_00]: that North Star goal but it's like what are these small steps
[00:12:47] [SPEAKER_00]: to get there and in reality,
[00:12:50] [SPEAKER_00]: you think you're heading north but in reality
[00:12:52] [SPEAKER_00]: you need to head northwest.
[00:12:53] [SPEAKER_00]: You're still going north but it's almost an entirely
[00:12:56] [SPEAKER_00]: different direction.
[00:12:56] [SPEAKER_00]: You're going to end up in a different place
[00:12:57] [SPEAKER_00]: but you don't know that until you take a step forward.
[00:13:00] [SPEAKER_00]: And so relating that to the product development side
[00:13:03] [SPEAKER_00]: that's how we try to approach all of this
[00:13:04] [SPEAKER_00]: is basically as fast as we can.
[00:13:07] [SPEAKER_00]: How do we get it in the hands of the people
[00:13:08] [SPEAKER_00]: that are using it and we get that feedback
[00:13:11] [SPEAKER_00]: from them.
[00:13:15] [SPEAKER_00]: It's the only way that we found to actually make things
[00:13:18] [SPEAKER_00]: that people want to buy.
[00:13:19] [SPEAKER_00]: We have theories about what people want to purchase
[00:13:23] [SPEAKER_00]: but in reality until it's in the public
[00:13:25] [SPEAKER_00]: and they can interact with it, you have no idea.
[00:13:27] [SPEAKER_00]: And so that's how we try to lean into that.
[00:13:30] [SPEAKER_00]: I hope that's why you met on the minimum iteration side.
[00:13:33] [SPEAKER_00]: I don't know if I took that in a completely
[00:13:34] [SPEAKER_00]: incorrect direction but...
[00:13:37] [SPEAKER_01]: No it is and what I wanted to sort of say
[00:13:41] [SPEAKER_01]: is there some best practice that you've learned
[00:13:44] [SPEAKER_01]: in doing this process that you can say like
[00:13:47] [SPEAKER_01]: this is what you should think about.
[00:13:49] [SPEAKER_01]: It's similar to minimum viable product
[00:13:52] [SPEAKER_01]: and it's an approach to development.
[00:13:54] [SPEAKER_01]: What's the best practice that you would tell
[00:13:56] [SPEAKER_01]: to those that are thinking about this
[00:13:58] [SPEAKER_01]: particularly as they apply it to services
[00:13:59] [SPEAKER_01]: that you've learned over the time using this approach?
[00:14:03] [SPEAKER_00]: Yeah, that's a great question.
[00:14:05] [SPEAKER_00]: I think for me how I approach this
[00:14:09] [SPEAKER_00]: and think about this is you're just trying
[00:14:12] [SPEAKER_00]: to get it good enough.
[00:14:13] [SPEAKER_00]: You can always improve that, right?
[00:14:15] [SPEAKER_00]: But if I can get it 80% of the way there
[00:14:16] [SPEAKER_00]: in 24 hours and have that live
[00:14:19] [SPEAKER_00]: and in the hands of people,
[00:14:22] [SPEAKER_00]: that's going to be so much more impactful
[00:14:24] [SPEAKER_00]: for my business than it's perfect a month from now.
[00:14:27] [SPEAKER_00]: We're going to build this thing
[00:14:28] [SPEAKER_00]: and then we're probably going to have to take steps back
[00:14:30] [SPEAKER_00]: because we've overbuilt it
[00:14:32] [SPEAKER_00]: and then that just creates more dev time in the aggregate.
[00:14:36] [SPEAKER_00]: But if I just put it in the hands of these people
[00:14:37] [SPEAKER_00]: as fast as I could and then allow them to kind of finish
[00:14:40] [SPEAKER_00]: tie up the loose ends on that live city percent.
[00:14:43] [SPEAKER_00]: This all depends as well on the company size
[00:14:46] [SPEAKER_00]: and like, yeah, I've done work in,
[00:14:50] [SPEAKER_00]: for orbs that are S&P 500,
[00:14:53] [SPEAKER_00]: like it's different rules
[00:14:55] [SPEAKER_00]: in the pace of all this change
[00:14:56] [SPEAKER_00]: but if you're working with small businesses, right?
[00:14:58] [SPEAKER_00]: They're way more flexible.
[00:14:59] [SPEAKER_00]: They're way more receptive to being like,
[00:15:00] [SPEAKER_00]: oh, this is good enough.
[00:15:02] [SPEAKER_00]: And then we're going to iron out all of the wrinkles
[00:15:08] [SPEAKER_00]: as we get this into public.
[00:15:10] [SPEAKER_00]: But I think that especially on client work
[00:15:12] [SPEAKER_00]: and this is just what I found being in this world for so long,
[00:15:15] [SPEAKER_00]: speed of action is like the biggest measurement
[00:15:18] [SPEAKER_00]: of client satisfaction.
[00:15:20] [SPEAKER_00]: Like if they ask for something
[00:15:21] [SPEAKER_00]: or you promise something,
[00:15:22] [SPEAKER_00]: like how quickly you can get that out to them
[00:15:24] [SPEAKER_00]: is what's...
[00:15:26] [SPEAKER_00]: That's like the only thing that I've ever found
[00:15:28] [SPEAKER_00]: to be directly correlated with reducing churn
[00:15:31] [SPEAKER_00]: and the longevity of that client staying with you, right?
[00:15:34] [SPEAKER_00]: And so when you think about that
[00:15:35] [SPEAKER_00]: in relationships with products
[00:15:36] [SPEAKER_00]: or implementing these services for your clients,
[00:15:39] [SPEAKER_00]: it's then coming back to, okay,
[00:15:41] [SPEAKER_00]: well what is the...
[00:15:42] [SPEAKER_00]: Even if it's not all the way they're perfect
[00:15:44] [SPEAKER_00]: and this is hard for everybody, right?
[00:15:46] [SPEAKER_00]: It's that we want to do good work
[00:15:49] [SPEAKER_00]: and we want it to be...
[00:15:53] [SPEAKER_00]: That's...
[00:15:53] [SPEAKER_00]: Our work is basically a measurement of our value,
[00:15:56] [SPEAKER_00]: like the quality that we put out there.
[00:15:58] [SPEAKER_00]: But I think that with...
[00:16:00] [SPEAKER_00]: Especially with this newer technology,
[00:16:01] [SPEAKER_00]: there's no way to make it perfect.
[00:16:02] [SPEAKER_00]: Like we've even found this where it's like,
[00:16:05] [SPEAKER_00]: you know, every once in a while
[00:16:06] [SPEAKER_00]: it's just gonna totally mess up, right?
[00:16:08] [SPEAKER_00]: And we just have to kind of be okay with that.
[00:16:10] [SPEAKER_00]: But again, if it's 80% of the weight there,
[00:16:14] [SPEAKER_00]: especially for these companies where it's like,
[00:16:16] [SPEAKER_00]: oh, I just automated a salary away, right?
[00:16:18] [SPEAKER_00]: Like, of course they're gonna be ecstatic
[00:16:21] [SPEAKER_00]: and also that creates just a high impact activity
[00:16:24] [SPEAKER_00]: that you can do for these people.
[00:16:25] [SPEAKER_00]: So I think the biggest thing is that it's just like fighting
[00:16:29] [SPEAKER_00]: and so many people are focusing on that perfection.
[00:16:33] [SPEAKER_00]: But in reality, like building good product is iteration.
[00:16:36] [SPEAKER_00]: Like it's that process of how many revolutions might...
[00:16:39] [SPEAKER_00]: My friend's in the wine industry actually
[00:16:40] [SPEAKER_00]: and he told this to me like two years ago.
[00:16:44] [SPEAKER_00]: He was like, hey, I potentially get to go and make wine
[00:16:48] [SPEAKER_00]: 40 more times in my life, right?
[00:16:51] [SPEAKER_00]: Like they see it once a year.
[00:16:52] [SPEAKER_00]: And so for him, he's constantly talking to people
[00:16:55] [SPEAKER_00]: to try to get as much information from other winemakers
[00:16:59] [SPEAKER_00]: so that he can have more at bats is how he described it.
[00:17:04] [SPEAKER_00]: I've like seeing more pitches, right?
[00:17:06] [SPEAKER_00]: Because the more pitches you see,
[00:17:07] [SPEAKER_00]: like the more likely you are to hit a home run
[00:17:10] [SPEAKER_00]: or hit a bit, you know, get on base basically.
[00:17:12] [SPEAKER_00]: And I think it's that same idea when you think about iteration.
[00:17:15] [SPEAKER_00]: You're just trying to see as many cycles as possible
[00:17:17] [SPEAKER_00]: because the faster the cycles can be,
[00:17:20] [SPEAKER_00]: the better the outcomes are going to be.
[00:17:22] [SPEAKER_00]: It's also going to feel like movement is happening for the client
[00:17:25] [SPEAKER_00]: and they see that progress, they see that progression
[00:17:28] [SPEAKER_00]: and that excitement creates stickiness from my experience
[00:17:31] [SPEAKER_00]: within the client experience,
[00:17:33] [SPEAKER_00]: whether it's a product I service
[00:17:35] [SPEAKER_00]: or you know, a software that you're selling them, etc.
[00:17:37] [SPEAKER_00]: I think it's the same thing.
[00:17:38] [SPEAKER_00]: People get... They want to be a part of something, right?
[00:17:40] [SPEAKER_00]: And when you... When they see that movement,
[00:17:42] [SPEAKER_00]: they see that momentum.
[00:17:43] [SPEAKER_00]: It feels like they're a part of something
[00:17:45] [SPEAKER_00]: that's larger than themselves.
[00:17:46] [SPEAKER_00]: So that's a way to lean into it.
[00:17:47] [SPEAKER_00]: A lot of psychological stuff in there
[00:17:49] [SPEAKER_00]: but again, just brain dumping all the things
[00:17:51] [SPEAKER_00]: that I found to be relevant and related kind of
[00:17:53] [SPEAKER_00]: from during my career.
[00:17:55] So...
[00:17:56] [SPEAKER_01]: Well, you've worked with a lot of clients
[00:17:57] [SPEAKER_01]: and you've talked about the different approaches.
[00:17:59] [SPEAKER_01]: I want to ask then about like that you mentioned the...
[00:18:02] [SPEAKER_01]: You have to be comfortable with it
[00:18:03] [SPEAKER_01]: with these kind of products being wrong.
[00:18:05] [SPEAKER_01]: Now for a lot of people that are very used
[00:18:07] [SPEAKER_01]: to the technology being that very...
[00:18:10] [SPEAKER_01]: You know, that very regimented.
[00:18:13] [SPEAKER_01]: You put it in input,
[00:18:14] [SPEAKER_01]: you will get the same output every single time.
[00:18:16] [SPEAKER_01]: You know, this is very different than that.
[00:18:19] [SPEAKER_01]: How are you finding it best to make customers
[00:18:23] [SPEAKER_01]: and clients comfortable with that level
[00:18:27] [SPEAKER_01]: of potential chaos or the...
[00:18:29] [SPEAKER_01]: The introduction of the...
[00:18:31] [SPEAKER_01]: Is now less reliable in order to get to achieving it?
[00:18:36] [SPEAKER_01]: Like how are you introducing and wrestling with that?
[00:18:39] [SPEAKER_00]: Yeah.
[00:18:39] [SPEAKER_00]: So I'm positioning it in people's minds as like,
[00:18:41] [SPEAKER_00]: hey, your team is now a curator more than anything, right?
[00:18:45] [SPEAKER_00]: Rather than a producer, like you're going to lean on these tools
[00:18:48] [SPEAKER_00]: to do all the grunt labor heavy lifting, right?
[00:18:51] [SPEAKER_00]: So again, if maybe it's data entry,
[00:18:52] [SPEAKER_00]: maybe it's extraction of information from a huge dataset,
[00:18:57] [SPEAKER_00]: whatever that ends up being,
[00:18:59] [SPEAKER_00]: your team is now going in
[00:19:00] [SPEAKER_00]: and they're doing the verification of these things
[00:19:02] [SPEAKER_00]: to confirm that, oh, this looks like...
[00:19:05] [SPEAKER_00]: Right, this looks real, right?
[00:19:06] [SPEAKER_00]: And for...
[00:19:07] [SPEAKER_00]: Like what we see is like a lot of the time
[00:19:09] [SPEAKER_00]: and money that spends in most organizations
[00:19:11] [SPEAKER_00]: is on that kind of grunt labor component of this.
[00:19:14] [SPEAKER_00]: But if I can get that to where it's 90% of the way there
[00:19:17] [SPEAKER_00]: and then I have a 10x employee come in
[00:19:19] [SPEAKER_00]: and they get that hand off for that piece of whatever it is
[00:19:23] [SPEAKER_00]: that I'm trying to produce,
[00:19:24] [SPEAKER_00]: what we're going to see is like we can make that 10x employee
[00:19:27] [SPEAKER_00]: a 100x employee and suddenly we've just made it a company
[00:19:31] [SPEAKER_00]: where it's like say you have a headcount of 50 people.
[00:19:33] [SPEAKER_00]: Well, this organization is now functioning
[00:19:35] [SPEAKER_00]: like a 500 person organization.
[00:19:37] [SPEAKER_00]: What does that mean to the revenues?
[00:19:38] [SPEAKER_00]: What does that mean to the bottom line of these organizations?
[00:19:40] [SPEAKER_00]: And I think that framing of like your...
[00:19:45] [SPEAKER_00]: The AI is not perfect, right?
[00:19:47] [SPEAKER_00]: But it can get good enough, like get things to a place
[00:19:51] [SPEAKER_00]: where they're good enough that a human can then take that hand off
[00:19:54] [SPEAKER_00]: and they can put all of the magic into that, right?
[00:19:56] [SPEAKER_00]: And we see this with content that it's producing, reports or whatever.
[00:20:00] [SPEAKER_00]: There's these human...
[00:20:01] [SPEAKER_00]: It's like flair, right?
[00:20:03] [SPEAKER_00]: That the AI is really...
[00:20:05] [SPEAKER_00]: It's very hard to get it to do it consistently.
[00:20:07] [SPEAKER_00]: We can get it to do kind of these rote,
[00:20:11] [SPEAKER_00]: almost militant tasks very effectively and they never complain.
[00:20:16] [SPEAKER_00]: And they don't write a negative review about your company on Glassdoor.
[00:20:20] [SPEAKER_00]: And so that is...
[00:20:21] [SPEAKER_00]: I think the framing that I'm trying to brainwash
[00:20:25] [SPEAKER_00]: as many founders to think about is how do I make my team
[00:20:30] [SPEAKER_00]: that's already exceptional,
[00:20:32] [SPEAKER_00]: how do I make them perform like they're almost superhuman
[00:20:34] [SPEAKER_00]: with augmenting them with these tools?
[00:20:37] [SPEAKER_01]: Well, Cody Snider is the CEO of Draft Horse AI and Swell AI.
[00:20:42] [SPEAKER_01]: He's known for his innovative approach to rapidly scaling startups
[00:20:45] [SPEAKER_01]: and redefining digital processes through AI.
[00:20:49] [SPEAKER_01]: His focus is on augmenting workflows and boosting human potential.
[00:20:53] [SPEAKER_01]: Cody, I really appreciate you joining me today.
[00:20:55] [SPEAKER_01]: Thanks for having me, Dave. It's been a pleasure.
[00:20:58] [SPEAKER_01]: With as many breaches and security concerns as I report in this show,
[00:21:02] [SPEAKER_01]: it should be obvious that cybersecurity is not just about technology,
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