1 00:00:00,180 --> 00:00:06,457 The big challenges with all of these new technologies is when work, work 2 00:00:06,540 --> 00:00:11,160 artifact and workflow changes That means 3 00:00:11,580 --> 00:00:18,457 We as firms have to change how we work. In fact, I remember meeting the CEO of 4 00:00:18,540 --> 00:00:22,500 Generali, you know, a few years back, and he was describing he had joined 5 00:00:23,730 --> 00:00:29,917 the firm, you know, pre pc-era and and he was describing how, for example, 6 00:00:30,000 --> 00:00:35,820 they worked with their agents in the field with faxes, interoffice memos and 7 00:00:36,690 --> 00:00:41,227 and suddenly the PC showed up and people would then put a spreadsheet in an email 8 00:00:41,310 --> 00:00:45,420 and sent it around and the entire workflow and the work process changed. 9 00:00:45,890 --> 00:00:49,387 Right. So similarly, I think with a AI, you are 10 00:00:49,470 --> 00:00:54,030 going to start seeing actual change in how what happens. 11 00:00:54,200 --> 00:00:57,517 I mean, even in fact, for me coming to Davos, you 12 00:00:57,600 --> 00:01:02,827 know, what about 50 bilateral meetings I have preparing for those how to 13 00:01:02,910 --> 00:01:07,207 had a particular workflow, right, which is that has to be my field team would 14 00:01:07,290 --> 00:01:11,490 prepare notes that would come to my HQ and that would get further refined. 15 00:01:11,670 --> 00:01:16,507 And nothing had really changed right since I joined in 92 to essentially even 16 00:01:16,590 --> 00:01:20,167 a few years back. Whereas now, I just go to Copilot and 17 00:01:20,250 --> 00:01:24,900 say, Hey, I'm meeting Larry, please give me a brief and it comes back and use me. 18 00:01:25,080 --> 00:01:27,967 By the way, the one nice thing is it gives me a 360, right? 19 00:01:28,050 --> 00:01:32,227 It knows what we are doing with you as a client, what we are doing as a client of 20 00:01:32,310 --> 00:01:34,747 yours and everything, I mean, as an investment. 21 00:01:34,830 --> 00:01:38,917 It's so it captures event information unlike anything else. 22 00:01:39,000 --> 00:01:43,747 In fact, what I do is I take that and immediately share that back with all my 23 00:01:43,830 --> 00:01:46,177 colleagues across all the functions. I think about it. 24 00:01:46,260 --> 00:01:50,677 It's a complete inversion of how information is flowing in the 25 00:01:50,760 --> 00:01:53,340 organization. It's not like this classic. 26 00:01:53,550 --> 00:01:56,677 We have an organization, we have departments, we have these 27 00:01:56,760 --> 00:01:59,550 specializations and the information trickles up. 28 00:01:59,880 --> 00:02:03,547 No, no, no. It's actually it flattens the entire 29 00:02:03,630 --> 00:02:08,107 information flow. So once you start having that, you have 30 00:02:08,190 --> 00:02:13,537 to redesign structurally. So the current structure may not make 31 00:02:13,620 --> 00:02:17,797 sense because you want people to be able to 32 00:02:17,880 --> 00:02:23,490 work in a way that allows them to have this information flow freely. 33 00:02:23,940 --> 00:02:28,027 So what all this leads me to, if I have to sort of say, what's the formula? 34 00:02:28,110 --> 00:02:30,577 The formula, I think it starts with the mindset. 35 00:02:30,660 --> 00:02:37,660 So the mindset we as leaders should have is we need to think about changing the 36 00:02:37,830 --> 00:02:42,637 work, the workflow with the technology, then that needs skill set. 37 00:02:42,720 --> 00:02:45,487 So you can sort of talk about this in the abstract. 38 00:02:45,570 --> 00:02:49,297 You got to use it like, so if I'm not using that, you have to trust it, you 39 00:02:49,380 --> 00:02:53,497 have to trust it, you have to use it, you have to learn even how to put the 40 00:02:53,580 --> 00:02:56,947 guardrails to trust it, right? You can't again, you can't just be 41 00:02:57,030 --> 00:03:00,827 afraid of it. It's going to it's going to be diffuse. 42 00:03:00,910 --> 00:03:06,847 So the question is, as a firm, you have to use it to learn how to even put the 43 00:03:06,930 --> 00:03:09,390 guardrails that allow you to be able to trust it. 44 00:03:09,960 --> 00:03:16,470 So skills, so mindset, skills. The other big consideration really is 45 00:03:16,800 --> 00:03:22,440 how do you make sure you have the data set that you're feeding like context. 46 00:03:23,460 --> 00:03:27,817 It's kind of like you have a new intelligence layer, but the intelligence 47 00:03:27,900 --> 00:03:31,920 layer is only as good as the context you give it. 48 00:03:32,280 --> 00:03:34,897 So people describe it even as context engineering. 49 00:03:34,980 --> 00:03:39,037 But that is what firms do, right? If you think about what do firms do, 50 00:03:39,120 --> 00:03:44,167 it's all about the tacit knowledge we have by working as people in various 51 00:03:44,250 --> 00:03:47,227 departments and moving people and information. 52 00:03:47,310 --> 00:03:49,297 So the question is, how do you really have this AI 53 00:03:49,380 --> 00:03:53,137 also have that context? So these are sort of some of the new 54 00:03:53,220 --> 00:03:58,597 things that have to percolate throughout an organization to take advantage. 55 00:03:58,680 --> 00:04:03,127 In fact, that's why I think you're going to see that challenge of why am I not 56 00:04:03,210 --> 00:04:05,700 seeing immediate results in productivity? 57 00:04:05,970 --> 00:04:09,307 Because you have to do the hard work. In fact, that's why it's not going to be 58 00:04:09,390 --> 00:04:12,577 some you know, it's going to they're going to be firmwide differences. 59 00:04:12,660 --> 00:04:16,267 They're going to be they could be sector wide differences, but it's going to 60 00:04:16,350 --> 00:04:20,310 fundamentally be because of the leadership within an organization.