Artificial Intelligence Podcast: ChatGPT, Claude, Midjourney and all other AI Tools

Physics of AI with Leon Eisen

• Jonathan Green : Artificial Intelligence Expert and Author of ChatGPT Profits • Episode 350

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Welcome to the Artificial Intelligence Podcast with Jonathan Green!

In this episode, we delve into the intricate world of AI within the context of business and investment strategies with our esteemed guest, Leon Eisen. As a distinguished entrepreneur and a PhD in Quantum Physics, Leon's unique insights bring clarity to the often-ambiguous domain of AI applications in modern enterprises.

Leon discusses the current trend of incorporating AI in fundraising pitches and operations, noting that many startups add an AI component simply to attract investors, even when it's not essential. He stresses the difference between AI as a tool to enhance operations versus AI as a core product offering. The conversation further explores how businesses can leverage AI for backend operations, creating efficiencies without compromising the human element.

Notable Quotes:

  • "AI is something that makes tasks by itself... AI agent is something you outsource, and you tell it what to do." - [Leon Eisen]
  • "AI video by definition cannot be impactful like a real person with charisma. You cannot add charisma to AI video." - [Leon Eisen]
  • "I find that the real usefulness is not in creation from AI, but in analysis. AI can look at something and tell me what I need to know." - [Jonathan Green]

Connect with Leon Eisen:

Connect with Jonathan Green

Physics of AI with today's special guest, Leon Eisen. Welcome to the Artificial Intelligence Podcast, where we make AI simple, practical, and accessible for small business owners and leaders. Forget the complicated T talk or expensive consultants. This is where you'll learn how to implement AI strategies that are easy to understand and can make a big impact for your business. The Artificial Intelligence Podcast is brought to you by fraction, a IO, the trusted partner for AI Digital transformation. At fraction a IO, we help small and medium sized businesses boost revenue by eliminating time wasting non-revenue generating tasks that frustrate your team. With our custom AI bots, tools and automations, we make it easy to shift your team's focus to the task. That matter most. Driving growth and results, we guide you through a smooth, seamless transition to ai, ensuring you avoid policy mistakes and invest in the tools that truly deliver value. Don't get left behind. Let fraction aio help you. Stay ahead in today's AI driven world. Learn more. Get started. Fraction aio.com. Now Leon, I'm really fascinated by. Your perspective on fundraising, because we have a lot of investors on the show, which I always love to hear about because it seems three years ago, every single product on the market was about the metaverse or cryptocurrency or NFTs, and every startup had to have that as part of their name to get funding, and now it's become ai. And we see so many companies that. Say their AI or they have a, an AI component is so important. Even when AI isn't needed to solve the problem, it just becomes necessary to fundraise. Do you think it's just where we're at right now that you have to have an AI component to fundraise, or is it possible to solve a problem without AI anymore? I. I'm not sure that it's, no, it's possible to solve the problem the problem in competition. How good you can solve this problem without ai. Because what we had before, we had a lot of analysts and we had a lot of intuition and still I'm using intuition as well. You cannot remove it. But AI helps to to somehow to shape our intuition and. even though To have much less an analytic guys, because for me, for example, it's very difficult to work with analyst. I'm not analyst. I'm entrepreneurial now with all this stuff. And I sometimes I don't understand why analysts think this way and why these numbers are important and other numbers are not so much important. Yeah I like it very much. I use ai, I use AI platform, matching platform because, it just save a lot of time. I find that a lot of people, especially further outside the world of AI, don't really know what it means. The definition of AI has brought in so much to include automation and integration and even API stuff, and it's gotten broader and broader to where a lot of people will say, I need ai, and then they'll just describe a simple automation that's existed for 10 or 20 years. So even many investors who wanna invest in ai. Aren't really sure what they mean. So how can a startup who's trying to fundraise explain how they're using AI in a way that someone who doesn't really know what AI will understand? From my experience, the main confusion happens between when people don't understand what is it AI agent and what is it? I agent ai. And this is the, I think the main misunderstanding happens even before they understand what is it, ai, they start to talk about AI agent. And, okay. So I think that everything that you can outsource like a service to ai. Any service you can outsource to AI and AI do this for you. This is agent. Everything that, no, this is agent AI and everything you can outsource and keep keep take a look on it and keep guiding AI like Chat GPT. This is a AI agent actually. Yeah, so I, AI is something that makes tasks by itself. Create tasks and makes, create tasks and makes tasks. And AI agent is something, or I like to say somebody today, whom you outsource, and you tell him what to do and they do these tasks and they make some answers and create some, and calculate some data based on your input. So all the, always they need your input. And the best way is a combination of both. So you give the task in the beginning like heat task and identity ai, create some sequence of tasks to implement some very important stuff. So this is the future and this is what any Robert will do actually. So a lot of companies are now adding an AI component or trying to have just enough AI to get to that next fundraising round. Do you think that we'll get to a point where investors start to become a little savvier or start to have a more of a discerning process? Because everyone has their own process when they're choosing who to invest in. And so when they're figuring out. How much AI are you really using and is this like revolutionary use case or is this a new use case? Where is the kind of magic or where's the bright line or where do you see the future going? I would separate this question. Very good question on two questions. First question, as investor and venture partner, I look at the company. If company is using AI in their operations. Or their product is based on AI or using ai. So that's very important. So it should be, actually, it should be, even if it's, maybe it's not high tech company, but they have to use a AI in operations to outperform competition. And if they don't do it. Even I don't take this company seriously because I don't want that for money of investors. They do something manually for half a year instead of half of half a week. Because time is money for investments for investors. So this is from one side and from another side it should be. It should be how we use AI to evaluate the startup. I think this is a question and where we're going with this. I think, in all whole, in Wall Street today, you can outsource to ai your tracking. Share stocks and to deal with stocks. All deals you can outsource to ai, but this is based on good history of trading. So you have a lot of data. What kind of data you have about startup. Maybe if this startup is. Around EBE, I don't know. You have some data that you can outsource to AI to evaluate, but in the beginning, precede seed round day, what kind of data? Startup has nothing. It's not enough to teach AI to evaluate. So I think today that's impossible. Using AI for decision for investment decision in startups in early stage. I. Yeah. Something I've seen that I find really interesting is everyone now writes their resumes with ai, and every company uses the same AI to assess the resumes. So we're seeing that all the stuff is created and assessed by the same ai. So chat, GPT Judging, its the resumes that wrote itself, and I've seen more and more startups using AI to create their decks, to create their proposals, and then. Companies get so many proposals, what are they doing? They're having AI go through them. So we're seeing the exact same thing we've seen in the hiring space is now happening in investing space, which is we're using AI to create more decks so we can send decks to customize to more companies and more investors are using the exact same AI tool to sort it down. So it's is it really solving the problem? I'm not sure, and I'm really glad you brought up the backend part of ai.'cause we. often Are so distracted by the customer facing component. Is the company using AI to create a new product? But using it in the backend can make a huge difference, whether it's communication between the customer support team and the tech team, so they are a little more connected because tech people and customer support people speak very differently. I would never let my engineers or my tech team talk to a customer.. It's like such a different language. So there's these things that allow us to increase efficiencies in the backend that are just as important when you think about the trajectory of ai.'cause at first it was. Just a chat bot, right? It was just, it could help you, it could chat with you, and then you would ask some questions and copy and paste. And now this year, like you said, everyone is saying agent, everyone is saying agentic. It's become the year of the next iteration. We move past, I want to chat and I want it to do the task. And then I check it's work at the end. And I find that this is where a lot of people struggle to know what's hard or what's easy. Whenever I talk to a potential client and they'll say, I know this is really hard, I. And then what they describe is really easy and the things they think are easy are always really hard. So our ability to assess what's easy and difficult to program, or easy, difficult to get an AI to do is often almost completely reversed. Why do you think that so many people's estimation of what AI is capable of is so far from reality? Is it because we see so many commercials that just make AI seem more and more magical so that people can't get a sense of reality? Yeah, people, first of all, people like to exacerbate things. If I see something I want to have something more from this. And people never have a think about reality. About everything because you are biased. We are biased. So reality is not what we see. We see what we want to see. By the way, we create reality this way as well. So everybody has His own reality. Own reality, right? I have my reality. You have your reality. Sometimes they don't coincide. Same with ai. So it was the same with blockchain, it was the same with cloud computing. Every time we had, we, that's why it was a bubble 25 years ago. Because people just gave more value to something that doesn't have such value. All this value could be only released through, I don't know, 50 years. But people today talk about the value, like quantum computing. This value will be really released in 10, 20 years. But people today like crazy talking about it, invest in algorithms of quantum computing, everything. But this value is not ready yet. So it's a good question what you asked, because actually we really think about ai, like, how to say like something that save us from something bad or something good, I don't know. But it doesn't happen. We need to to, to think about AI like another tool. Even commodity tool that helps us, and we have to learn how to use this tool like any tool and the problem that, okay, you can make pitch deck using ai but how you build the, prompt, that's important. And if you don't know subject, if you don't understand what me I, like investor need, what you will build will be totally out of business. So you should be expert first, and just after that, you can use this tool. If you're not expert, your tool will be wrong. It seems almost like there's an inverse correlation between usefulness and interestingness. Like everyone loves to talk about, even on LinkedIn. On every social media platform, it's AI video. Every single day I say a new video that says, Pixar's in trouble. Disney's in trouble.'cause now AI video and every AI video is not even close. It's a three second clip. A drone shot, it's always the same thing. It's always a three second video, sometimes four seconds, but a movie is two hours long and that's the least useful use case. So many businesses go, I wanna use AI video. And I go, why? I. How many videos did you make last year? Zero. Then why do you wanna make AI videos like this year? Because you're not solving existing problem. There's this temptation to use AI to do something you're not already doing, and the real magic is to take what you're doing and doing faster or do it better using AI as opposed to doing something completely new. But we, for the past year, for almost all of 2024, every AI video tool was a Sora killer. The Sora killer. Then Sora came out and no one ever talked about it again.'cause it wasn't any good. Yeah, did not. Now no one me, no one's even mentioned it in the two months that's been out. So how can someone make something useful and still capture that mystique or the interestingness that we seem to get from watching these AI videos? About videos. It's very interesting because one of my company we're doing AI educational video for patients on discharge from the hospital and founder, great guy having about million followers in YouTube and other social media like healthcare educator. He teach how to do everything like, like other people, but he is huge. But AI based videos, they don't talk because. Like a person, you deliver your values, your mimics, your yourself, your authenticity. You don't have this in AI v AI video. I'm not sure you can do it. So AI video by definition cannot be impactful like a real guy with charisma. You cannot add charisma to AI video. So it will be like, like instruction. Very technical stuff. Maybe something that touched by, I don't know by their context, but you are not able to deliver humanity through AI video. That's why there is a problem. And it doesn't matter. It's one minute today and maybe two hours , in couple of years. The main problem to solve, how to deliver humanity and authenticity through this video. And this is the main problem. And yet this is what everyone loves to talk about. So if I post on social media something useful, low views, if it's just a AI video, everyone goes and it's. Oh, amazing. This is the future. But you wouldn't watch it if I didn't say this is an AI video. You would just think it's a bad video. Exactly. Exactly. So I find that the real usefulness is not in creation from ai, but in analysis. AI can look at something and tell me, look at spreadsheets or look at data and tell me what I need to know.'cause that's same as you. That's like the analysis part's not my strength. The creation of AI is never the same, but that's what everyone wants. Everyone wants a social media bot, but if every, if it's just my AI is boing and your AI is commenting and my AI is responding, did anything happen it's like that zen question. The tree falls in the forest and no one hears it. Who cares if an AI talks to an AI on a social media network? So a lot of, the phase we're in now with AI is really about multi-step processes. It's going into ai, automations and bots, and we have this issue, as you brought up earlier, that agent and agentic sound the same, but they mean something different. And we're seeing that chat bot or bot means 50 different things to 50 different people. The definitions, we really have this problem where nobody knows what the words mean because the definitions haven't locked in. So how can we create a language 'cause so people outside of AI world definitely don't know what they means because it doesn't mean the same thing to two people. So a bot that I make that's a fully automated bot that doesn't interact with people has the same name as a bot that I put on my website in the corner that people talk to. So how can we better explain what we do so that people understand it and understand the differences in the usefulness? First of all, try to explain to your, I don't know, daughter and son, eight years old, if they understand, everybody will understand and what I learned, interesting thing. Who has the more, who is the most influencer? And as easy and straightforward, you can explain things to people and they understand you become influencer. So it's not about your ability to think, it's not about your ability to even to say it's about your ability to explain, think on a level that 95% of people understand. Another 5% scientists, they need some high level language. That's okay. But for 95% of people, you should explain them on the, I don't know, second, third grade level. And even for me, if I need, I'm PhD in quantum computers in quantum physics, and if it's a new subject. I don't understand if I, it is not explained on the second, third grade level, even in my subject, some students came to me and start to talk about physics and all this stuff. If I'm not in, I don't understand this language. I don't understand what they're talking about, how to explain. First of all, we have to learn how to do it in very easy way, very simple la language, very simple words. This is first and second, how to create logics. Because if you don't know how to make logic logics in your sentences, in your text, that's impossible to understand somebody else because we follow the logic. So one word, final word, and new word of new sentence, they should be connected. And this is a big problem for founders when they present their. Deck. Okay, we're finished with this. Let's go to another stuff. I lost, I'm lost already. I want a very good flow of narration. This is what I want. I want, I. Everything continues. One sentence comes from another sentence. From another sentence. And actually this is the art, how to do it. That's why we can separate the good lecturer or no keynote speaker from the dad, keynote speaker. They do the same. They say the same. They explain the same by what? Understand the difference. Yeah. I think this is really important and. It's really helped me change my perspective too, because sometimes if it's a, there's a new AI concept every week there's a new update, there's a new thing, and I'm watching, several hours of videos a day trying to stay updated. But there's always something I don't know, and people are surprised. I go, there's a hundred AI startups a day, how could I know all of them? I wish I stay up to date as much as I can. I have to hear about it, then see someone else do it, then try it myself, then master it before I can explain it. I have to go through those phases, right? Learning mastery, teaching. But a lot of people, they're so caught up in the excitement. They get into the technical language or they get into the minutia, and that's I think where a lot of people get lost because there's this belief we have that we have to demonstrate how smart we are with complicated terms and really big words. All it does is alienate the person who's listening. This has happened to me before. I was in a conversation with someone, they kept asking me, do you think that he's pedantic? And I go, I don't know what it means,. Yeah, exactly. It's a big word. I'm not a hundred percent sure what it means. So he kept, he asked me like five times and I was like, I don't know, maybe let me go. I'm gonna look it up right after this conversation. Sometimes. But people think because you're an author, you have to know every word. And sometimes I forget a word and it's. That's not where we want people to be. We want people to feel like AI is graspable, that it's something we can touch and something we can actually use in our lives. And I think that's really the critical part where people, I. When people heard that I was having on a physicist, they go, oh no. It's gonna be all big words. I won't understand it. I'll have to skip that episode. I'm like no. I promise he's amazing. And you were amazing. This was a great episode. I know you have a new book that you wanna tell us all about. I wanna hear about it and where people can find out about your book and where they can see what you're doing online. Ah, okay. Interesting question. Thank you. I am writing the book called Quantum Business Thinking. That is a, I would say, combination of all what I've done, like tists, like entrepreneur, like engineer, and like investor and everything just align in, in one line and understood that our world, including AI is. Based on quantum, like a quantum computer. We're all based on quantum physics. Everything happens based on quantum physics. You have atoms inside, you build by atoms, right? So what kind of processes happen inside of you? Quantum processes, right? And when we think quantum processes happen and when we act, quantum processes happen. And if you have very dynamic. Dynamic ecosystem. You can apply quantum physics. Principles not only explain what happens, but to predict and to design the action that is the best from energy, the resources and goal point of view. So you have very specific angle, for example, on superposition. If you don't know what to do, you have a hundred options. You are in a superposition state. You need some observer or something that will collapse you to think certain way and to act certain way. And this collapsion collapsing should be in the right way. So you, if you're collapsing a different wrong stage, you do wrong things, you came to the shop and 10, you wanna buy some, I dunno, suit and 10 different suits. And you are in superposition state. You don't know what kind color you wanna take. And then sales guy approach you and say, okay, I think this blue one is good for you. So you collapse some decision, but you. Come home and your wife said, no. Why did you buy such a crazy color? Red is good for you. Maybe it's not so crazy for her angle of angle. So this is who we are. And if you. Or tunneling effect, how to make things with low resources, how to get outcome with low resources. So you have to think all the time about logics on things. And quantum based logics today is the best because it's based on nature. So if you think even, I call it . A sweet spot of thinking because there are different type of thinking. There is a normal thinking, there is a overthinking, there is a bias thinking. We're all biased thinking, but there is a sweet spot that is quantum quantum thinking or bus quantum business thinking application to the business. So each step. Each action, each relationships you can consider from quantum principles approach how relationships influence on you, how they collapse your way function, how you collapse, your understanding on things, how they change your things and for the businesses. Interesting because, we're talking in startups about exponential growth. Yeah. Exponential growth. But it never happens exponentially. It happens sometimes, but it's out there. It's usually like this boom, then again up. And if you think about quantum growth, exponential quantum growth, you grow by leaps. Okay? You jump from one stage to another, and what does it mean? You build balance business. Because any downside of the business happens because you forgot something you sell, but you forgot to make a good customer success. You are down at some point, but if you do everything balance and go at the front, Wavefront, you can build very and very steady. Quantum leaps in your company. So this is what I teach companies. I help fundraising and I help grow and I use quantum physics. Even sometimes I do not bother founder to learn about quantum principles. I just use it by myself, like a culture to help him. I don't tell him that this is belong to, this belongs to quantum physics because it could ruin his brain. But sometimes if I see that people, could understand. I teach you exactly. I say this comes from this principle, and this comes from another principle, and this helps. So sometimes I give people some tools to use and sometimes I help people to build their own tools. That's amazing. And where's the best place to find out about your book and find you online? It'll be in Amazon. It's not ready yet. I'm actually very lazy. It takes a lot of time. I have a lot of stuff to do. I have companies. I am a venture partner. I'm still entrepreneur and. I do a lot of stuff and somehow the focus happens. I teach startups to be focused, but by myself, I the focus, but okay I own this for my career to be the focus. Now,, when it comes out, we'll make sure it. When it comes out, we'll be sure to put a link below the episode and we'll share it with our audience.'cause I know people are gonna dig on it. Thank you. Yeah, I think my LinkedIn. My LinkedIn, so I just my LinkedIn. LinkedIn is my my, my page, my lead page I would say. So we met, so I know. Great. So amazing. Thank you so much for being here. Another amazing episode of the Artificial Intelligence podcast. Thank you Jonathan. And I really encourage people to, to read my paper in Forbes called AI Powered Entrepreneur, just to understand what entrepreneur need to to use AI and how to approach AI for entrepr entrepreneurship specifically in different area of entrepreneurship. Sounds amazing. I'll make sure to link to it as well. Thank you so much. Yeah, thank you.. Thank you for listening to Artificial Intelligence Podcast. Make sure to subscribe so you never miss another episode. We'll be back next Monday with more tips and strategies on how to leverage AI to grow your business and achieve better results. In the meantime, if you're curious about how AI can boost your business' revenue, head over to artificial intelligence pod.com/calculator. Use our AI revenue calculator to discover the potential impact AI can have on your bottom line. It's quick, easy, and might just change the way. 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