← The Prof G Pod with Scott Galloway
The Prof G Pod with Scott Galloway
How to Make Sure AI Doesn’t Take Your Job, Planning a Guys’ Trip, and When to Take on Debt
00:23:09
Loading summary
Transcript11 lines
- [00:02]
Scott Galloway
Support for this show comes from Nordstrom. Nordstrom brings you the season's most wanted brands, Skims, Mango Free People and Princess polly, all under $100. From trending Sneakers to beauty must haves, they've curated the styles you'll wear on repeat this spring. Free shipping, free returns and in store pickup make it easier than ever. Shop now in stores and@nordstrom.com Right now the Home Depot has spring deals under $20, so no matter what you're working on, the deals are blooming at the Home Depot with savings on plants, flowers, soil and more. Then light up your outdoor space with Hampton Bay string lights was $34.97, now only $19.99. And get the grill going with two 16 pound bags of Kingsford Charcoal was 1998, now only 17.88. Don't miss spring deals under $20 now through May 7th at the Home Depot, subject to availability valid on SEL.
- [01:02]
Co-host
I think you're on mute Workday starting to sound the same.
- [01:06]
Scott Galloway
I think you're on mute. Find something that sounds better for your career on LinkedIn. With LinkedIn job collections, you can browse.
- [01:15]
Co-host
Curated collections by relevant industries and benefits like Flexpto or Hybrid Workplaces so you can find the right job for you. Get started@LinkedIn.com jobs finding where you fit. LinkedIn knows how.
- [01:33]
Scott Galloway
Welcome to Office Hours of Prof. G. This is the part of the show where we answer questions about business, big tech, entrepreneurship and whatever else is on your mind. Today we've got two great listener questions lined up and then after the break we've got the Reddit hotline. Still not a sponsor. Reddit, hello Reddit Call Me where we pull questions straight from Reddit and we'll start pulling from another platform soon. If they don't. If they don't give Daddy some Benjamins. If you'd like to submit a question for next time, you can send a voice recording to office hourspropertymedia.com that's officehoursopropertymedia.com or if you prefer to ask on Reddit, post your question on the Scott Galloway subreddit and we just might feature you in our next episode. What a thrill. By the way, I don't go to it because they say some people say mean things to me and it bums me out because I like Reddit and I'm desperate for strangers approval. Kind of pathetic. Kind of pathetic. Anyways, first question.
- [02:26]
Listener
Hey Prof. G. You've mentioned before that AI won't necessarily take our jobs, but rather people who know how to use AI will. But I've been seeing more examples lately that make me question that. For instance, Shopify CEO recently said that any new roles at the company need to prove they can't be done by AI before they get approved. Basically, if AI can do it, they're not hiring for it. So as much as I want to believe that AI isn't taking jobs, it feels like there's growing evidence that it actually is. What's your take? Has your thinking evolved on this? Appreciate you taking the time.
- [03:15]
Scott Galloway
That's an interesting question. And also I just want to acknowledge that there's some truth to what you're saying. Shopify CEO Toby Lutke told employees in a memo that they need to prove that they cannot get what they want done using AI before looking to hire new employees. Shopify ended 2024 with a headcount of 8,100, down from 8,300 a year earlier. The company laid off 14% of its workforce in 2022 and laid off 20% the following year. The stock is up nearly 21% in the past year. I don't think that's AI. I think they probably just overhired during COVID like most of the tech companies, no one in tech has been spared Last 150,000 employees were laid off in the technology industry alone. This year, Meta expects to have AI that can function as a mid level engineer, which probably sent shivers down the spine of prospective employees. And I hate to admit this, but Musk sort of inspired this race. And that was the following. He basically maintained a minimum viable product on Twitter with 80% fewer employees. So essentially the entire tech market stood up and paid attention. And then you had what was probably the seminal earnings call of the last 10 years. And that was met, as Mark Zuckerberg said, we increased revenues 23% while reducing our headcount 20%. That's never happened before. Think of what GLP1 drugs do. They switch off the signal in your brain that you need to eat more. And the signal to every CEO's brain when they're growing is, I need to hire more. That's just, okay, I'm growing. I need more protein in the form of human capital. Basically, AI has been ozempic for the corporate world and that it's turned off the signal that you necessarily need to hire more. And so a lot of people are saying, well, okay, what if we can do this with AI? I gotta be honest here at PropgMedia, I keep asking, why don't we have this podcast in Numerous languages using AI. I'm starting to think that way. But I still hold onto the notion that what's going to happen with every technology, whether it's PCs or automation, there's some short term damage in terms of job destruction. But the auto industry, which was supposed to be wrecked by automation, had some short term declines in employment. But we couldn't envision heated seats or car stereos. These companies rip costs out of the basic non value, add part of the production, make more profits and then start investing in new models, new dealerships, you know, basically or more profitability which creates cheaper capital such that they can, you know, have, I don't know, more, more investment, more employees, more hiring. I just think that's a natural cycle of business. And while AI will come in to Shopify and reduce, for example, customer services is going to get wrecked. I wouldn't want to be in the business of customer service. I wouldn't actually want to be in, I wouldn't want to be a systems engineer right now because programming is going to get, just get so much easier and better. But if I have a vision for new products or new features that require software engineering, which I now have much greater firepower around, I think there'll be a lot more product management jobs. I think that these companies, I think Shopify is going to get to expand to new regions because they'll have additional profits and be able to scale up faster with AI. As a result there'll be a shift in skill sets required, but not a shift in, I don't think in employment or total employment. I think total employment will grow. That's a dangerous thing to say, but I think the idiocracy vision of the world where we're all, none of us need to work and we're all just sitting on couches watching big screen TVs and getting angry at each other, I don't see that. I think there's still going to be a need and opportunities for people, people who know how to leverage AI. Now specifically, when I said AI is not going to take your job, someone who understands AI is going to take your job, I still think that's the case. I still think if you can figure out a way to understand how AI is going to impact your division and be the person that quite frankly understands how to do more with less, I think there's more opportunity for you. I'd hate to be a mediocre real estate lawyer right now, but a good real estate lawyer that understands AI is going to make a lot more money because he or she's going to be able to draft basic documents but they're still going to need a human to be creative about, you know, the type of leases and negotiating with the landlord and reading the market and all, all of that good stuff. I think with, I think there's just going to be enormous opportunities here if you understand how to leverage this technology PC. Supposedly we're going to put a ton of people out of business and if you didn't understand PCs, you probably were vulnerable. I think it's just really important. What is my advice here? My advice especially have kids, play with AI with your kids. What I'll do with my youngest is when we have a weekend together I'll say okay, let's use AI to come up with the perfect itinerary for fun this weekend. And we describe each other and it's fun, come up with really thoughtful prompts and then boom, it comes up with great ideas. I'm using AI all the time, not as a means of creation but as a means of enhancing my current job, making me better at what I do. So I still kind of holding to my guns here. I think what you're going to see is a continued shift in the economy where skills, education, a basic understanding of technology, creativity, ability to get along with and manage other people, a feel for other nations and cultures. But if you understand AI, I think there's all sorts of opportunities for you to take those additional profits that were saved by AI and come up with new business ideas and new means of growth. The lower costs, but still you maintain your margins because you're more efficient, meaning you can expand the market. But point taken. We'll see. Question number two.
- [08:48]
Listener
Hi Professor Scott, I'm John from Virginia and I wanted to submit a question regarding planning meaningful guys trips. I have a tight knit group of friends in our mid to late twenties and like you we recognize the vital role of a healthy support group for young men in a society that sometimes seems apathetic to our struggles. Although we may not be ballers like you, I wanted to get your 2 cents of what you think makes a killer guy's trip. And in a broader sense, how to use the rare opportunity in our busy lives to come away with meaningful contributions to our friendships beyond drinking more and making a series of bad decisions that might pay off. As you often say.
- [09:26]
Scott Galloway
It's a really thoughtful question. I would say the key is yes, and that is. Or the calendar and that is just putting something on the calendar. I find that when you go on a, a trip with your friends it's really not about the place, it's about the people you bring. So. And just doing it. I'm, I'm 50 years old, 60, and I have this sort of group of six or eight fraternity brothers and we try to get together. I would say our intention is to get together every year. It ends up being every two or three years because life gets in the way. But I think the key is somebody needs to be the ringleader and put a date on the calendar and just try and coordinate and see, you know, who can make it, who can go to Vegas, you know, May, the week of May 1st or whatever, and just try to, you know, plant a flag in the sand. This is when we're going beyond that. I mean, a lot of it's up to your interest. Are you outdoors? You know, are you outdoors people? Are you adventurous? Do you guys like to surf? I used to go surfing, which is basically me holding onto a piece of fiberglass for dear life every year in Brazil. But it was mostly just an excuse to go to Brazil with a group of guys that I like. And now I do a ton of guys trips now. One, I have the money. Two, I just love hanging out with dudes. I'm good at it. I'm, you know, I'm, I have a good group of guy friends, so I don't, I don't know if I have a ton of insight here other than trying to find what you're interested in. It doesn't have to be a lot of money. I used to from one of my friends, bachelor parties. We went camping. God, that fucking sucked. Dr. David Frey took us camping. I bet that trip cost 50 bucks a person. I hated it. I hated it. I'm not, I'm not a rough it kind of guy, but anyways, you have to decide the economic weight class, but you don't need money for that shit. It's like, save your money to go somewhere nice with your wife or your girlfriend or your boyfriend just because. And also for fucking Disneyland, which will cost you $7 million for two days so you can eat bad food and shit, stay at a three star hotel and pay 11 star prices. Little bitter, A little bitter. Just do it. This is an easy one. Just get it on the calendar. The rest will sort itself out. We have one quick break and when we're back, we're diving into the depths of Reddit. Support for the show comes from Panerai. Oh, my God, I love Panerai. A lot of people just rely on their phones to keep track of time, but for those of us who are interested in something more timeless and luxurious, you can't go wrong with with a gorgeous mechanic timepiece from a legacy watchmaker like Panerai. Giovanni Panerai opened his first boutique in Florence in 1860, and since then the brand has been perfecting its watchmaking expertise. The result is a collection of timepieces that are as stunning as they are reliable. And now their new Luminor Marina collection elevates the collection's functionality for modern collectors while also maintaining the timeless appeal that Panerai is known for. An enduring emblem, the Luminor Marina is among Panerai's most celebrated models, distinguished by its contemporary sporty style and deep rooted history. I have seven watches, one brand. Guess which one? That's right, Daddy. One word. Panerai. You can shop the Luminor collection at Panerai.com or make an appointment at the boutique nearest you. Discover the world of Panerai at P A N E R A I Support for the show comes from smartsheet. Did you know that there's one human experience more universal than death and taxes? What do you think it is? Take a guess. Okay, we'll tell you. It's creativity. I know you're probably thinking, yeah, right, I'm not that creative. Or maybe you're thinking, I am creative, but I just have so much trouble tapping into my creativity. And in that, my friend, you are not alone. Because perhaps there is actually one thing more universally human than death and taxes and creativity. Distraction. That's where SmartSheet comes in. SmartSheet is the work management platform here to help clear clutter, break down barriers, and streamline your workflows to allow your creativity to, you know, flow. Its innovative platform lets your team find its rhythm no matter the obstacles. When roadblocks emerge, smartsheet empowers teams to chart a new course. One where innovation thrives. We all have the power to tap into creative flow. We just need some help clearing away distractions. And smartsheet knows exactly how to do that. Smartsheet Work with flow learn more@smartsheet.com Vox.
- [14:03]
Co-host
Eczema isn't always obvious, but it's real. And so is the relief from EBGLIS. After an initial dosing phase of 16 weeks, about 4 in 10 people taking EVGLIS achieved itch relief and clear or almost clear skin. And most of those people maintain skin that's still more clear. At one year with monthly dosing, EVGLIS Lebricizumab LBKZ a 250mg per 2ml. Injection is a prescription medicine used to treat adults and children 12 years of age and older who weigh at least 88 pounds or 40 kilograms with moderate to severe eczema, also called atopic dermatitis that is not well controlled with prescription therapies used on the skin or topicals, or who cannot use topical therapies. EBGLIS can be used with or without topical corticosteroids. Don't use if you're allergic to ebglis. Allergic reactions can occur that can be severe. Eye problems can occur. Tell your doctor if you have new or worsening eye problems. You should not receive a live vaccine when treated with Epglis. Before starting Epglis, tell your doctor if you have a parasitic infection searching for real relief. Ask your doctor about epglis and visit epgliss.lily.com or call 1-800-lilyrx or 1-800-545-5979.
- [15:05]
Scott Galloway
Welcome back. We asked and Reddit delivered. Let's bust right into it. Our Reddit question today comes from Bodega Poet Ooh, aren't you sexy? That is. That is very special. Hey Prof. G. What are your thoughts on personal debt for business, real estate, or educational pursuits? I learned about personal finance from Dave Ramsey and his principles have resulted in my wife and I to be in our late 30s with no debt beyond our mortgage. We are getting by, but it seems like we will forever be stuck in the middle class. Would you ever advise utilizing debt as leverage to increase your earnings potential? Returning to school, borrowing for seed capital for a business, or buying property? Thanks for considering my question. Okay, there's no easy way to just summarize debt. Can debt put you in an awful place? Can you apply to a good college and not get in? Because we as good universities or elite universities take pride in scarcity and manufacturing artificial scarcity such that we can reject people, go up in the rankings and raise tuition faster than inflation such that a good kid gets arbed down to a mediocre college that's the same price but doesn't offer the same upside opportunity. And we've shamed everyone into believing if they don't get a college degree that the parents and you have failed. So you can borrow cheap credit student loans and you can literally borrow $100,000 to end up in a job that pays $40,000 a year. Yeah, we've done that. And a lady in a pantsuit with a big logo behind you telling you that you can never go wrong investing in yourself Keep in mind, she gets to cash that check. And then you want to talk about how mendacious our society has become and how much we hate young people. Student debt is one of the few forms of debt that is not dischargeable in bankruptcy. So you literally have a generation, tens if not hundreds of thousands of young kids who go to school. It's not cut out for them. They drop out, but they still get to hold onto their debt. And for the rest of their life, they have this anchor around their neck. So there are terrible forms of debt you can get in. You can be house poor. Everyone thinks again, another one of these tropes or conventional wisdom. When wisdom becomes conventional, it's no longer wisdom that everyone needs to own a home or otherwise. You aren't an adult. And sometimes people just get. Get out too far in front of their skis, the market goes down, and they have a $300,000 mortgage on a place worth 190. And that can haunt you the rest of your life. Credit card debt, new offers every day. And you want to lead a good life. You're working hard. You want to. You think, I deserve this. And the reality is you wake up with $30,000 in credit debt. So there's a lot of bad forms of debt. There's some very good forms of debt. Your ability, if you're buying a house and you can get a good mortgage that is also tax deductible up to a certain amount, that is very attractive debt. It's low interest debt. As long as you're thoughtful about buying a place you can afford, you typically don't want to spend more than 30 or 35% of your gross or your net income on rent or a mortgage. And also you need to calculate the phantom costs, which people don't want to do. Property taxes, maintenance. But if you can finance an asset at 5 or 6% and you get to write off part of that, that's what you call good debt. So good debt can give you leverage. So there's good debt and there's bad debt. I like leases more than debts on cars because you can just hand the car back. And I think the transaction costs of trying and the time and the human capital to try and sell a car is a pain in the ass. So I was like leases, and generally speaking, manufactured sponsor leases sometimes end up with a low interest rate. So this what you do. How do you discern between good and bad debt? You need a kitchen cabinet. You need someone who will give it to you straight and say, okay, you're going to school or if you want to go to college, you're going to have to borrow $120,000. What's the average salary of the person graduating from the school? Is it worth it? For the first time in a long time, and this is a tragedy, sometimes the answer is no. Around college, it's just not worth the money. And even though there's a nice lady or a nice man telling you that you can get student debt, maybe you shouldn't take it. Just having access to debt doesn't necessarily mean you should take it. You need to think about the interest rate, you need to think about the term of the loan, and you need to think about the incremental bump it's going to give you when you buy a house. Houses typically go up throughout history, 4 to 6% a year. Well, okay, if you can get leverage on something, if you can borrow 80% and it goes up 4%, then effectively you're getting a 15 or 20% return on your equity capital. That's the down payment. That's good debt if it's a low interest rate, right? So what do you need? You need someone who understands finance in your kitchen cabinet. You need to be very careful around debt. And you need to always ask yourself, is this good debt? Is this good debt? What is the interest rate? All credit card debt is bad debt. Sometimes you want to take out debt to get rid of debt. Sometimes you want to take out a home equity line at 8% to pay off your 18% credit card debt. So sometimes you want to use debt to pay off other debt. There are real, there's real nuance here. And you need someone who understands debt. But the key question is not whether debt is good or bad, it's whether this is good debt versus bad debt. And for that you need people to understand your situation. We'll give it to you straight. But in general, you want to be very. You know, it just fucking breaks my heart this buy now, pay later on burritos. So I can now finance a burrito. If you need to finance your coffee or burrito, that is bad debt because they will figure out a way to charge you more. And if you're late on your payments, huge, hugely punitive penalty is. I think I read an article saying, you know, these BNPL companies have now figured out a way to sell you $100 burrito. And I think when you're at the counter of especially retailer going to Coachella and you get automatic credit that says, oh, you want to, want to spend $400. Ask yourself okay, if I don't have the money right now, is this a really good idea? Is the incremental outfit at Coachella going to pay off? I mean, there's different types of payoff. You might look fabulous, you might look fabulous. But I think generally speaking, in consumption, you don't want to go into debt. You want to use debt kind of only for things that might grow in value. Another thing that's just so sad. 40% of Americans have medical or dental debt. How can we be in the most prosperous nation when almost one in two households have the burden of medical debt? That's the kind of debt you can't avoid. You don't have the money, someone gets sick. By the way, we should absolutely lower the age for Medicare from 65 by two years, every year. And then, boom, in 30 years, you have socialized or nationalized Medicare medicine. We're the only G7 country that doesn't have it. It's an absolute tax parasite in our society. Sure, there's probably some additional innovation, but it's just not worth it. And that would give us the chance to slowly but surely let the industrial complex that makes huge amounts of money off of people suffering and debt give them time to adjust. Anyway, it's not what you asked. It's not whether debt is good or bad. It's what type of debt. You need someone to help you discern good debt from bad debt. Thanks very much for the question. That's all for this episode. If you'd like to submit a question, please email a voice recording to officehoursopropertymedia.com Again, that's office hours of prophet2media.com or if you prefer to ask on Reddit, just post your question on the Scott Galloway subreddit and we just might feature it in our next Reddit Hotline segment. This episode was produced by Jennifer Sanchez. Our intern is Dan Shalon. Drew Burrows is our technical director. Thank you for listening to the Property POD from the Vox Media Podcast Network. We will catch you on Saturday for no Mercy, no Malice, as read by George Hahn. And please follow our Prophet G Markets pod wherever you get your pods for new episodes every Monday and Thursday.