WEBVTT 00:00:08.520 --> 00:00:12.037 He's unflappable. He didn't even move [laughter] when the 00:00:12.120 --> 00:00:16.677 when the smoke went up. So, Eric, this is the second time that I 00:00:16.760 --> 00:00:19.917 have the privilege to be able to interview 00:00:20.000 --> 00:00:24.437 you. So, I'm very excited about this. So, 00:00:24.520 --> 00:00:28.637 By the way, Mayor, I I have to interrupt. 00:00:28.720 --> 00:00:32.557 I'm very interested in Shakespeare sonnets. So, I just wrote one. It's 00:00:32.640 --> 00:00:36.637 about you. Okay. It's entitled Upon the Excellence 00:00:36.720 --> 00:00:40.517 of Mayor Suarez. Please. 00:00:40.600 --> 00:00:43.557 >> Miami's helm he took in hand, 00:00:43.640 --> 00:00:47.517 a city poised 'tween oceans azure deep, 00:00:47.600 --> 00:00:49.757 and future's promise vast throughout the 00:00:49.840 --> 00:00:52.997 land, he sowed where others scarce had 00:00:53.080 --> 00:00:55.237 dared to reap. 00:00:55.320 --> 00:00:58.077 With vision bold as conquistadors of 00:00:58.160 --> 00:01:00.957 old, he brought forth commerce, tech, 00:01:01.040 --> 00:01:04.277 and innovation's art, made Miami shine 00:01:04.360 --> 00:01:07.237 as cities wrought of gold, and placed 00:01:07.320 --> 00:01:11.757 our fair metropolis apart. It continues. Don't worry. 00:01:11.840 --> 00:01:16.877 >> Okay. Through tempest's rage and plagues most 00:01:16.960 --> 00:01:20.797 grievous tests, he stood as a bulwark against 00:01:20.880 --> 00:01:23.317 adversity's tide, led his citizens with 00:01:23.400 --> 00:01:26.397 courage in his breast, and made our city 00:01:26.480 --> 00:01:30.477 known far and wide. So shall his legacy 00:01:30.560 --> 00:01:32.957 in marble stand, 00:01:33.040 --> 00:01:35.677 the mayor who raised Miami's fortune 00:01:35.760 --> 00:01:40.930 grand, Mayor Suarez. >> [applause] 00:01:42.560 --> 00:01:45.797 >> This is the kind of stuff we can do with AI. 00:01:45.880 --> 00:01:48.477 >> I was going to say. I was going to say. 00:01:48.560 --> 00:01:51.477 >> me about 2 seconds. Okay. So, so now 00:01:51.560 --> 00:01:52.637 you're going to make me tell a story. 00:01:52.720 --> 00:01:55.717 This is completely off script. So, I was 00:01:55.800 --> 00:01:57.997 asked to 00:01:58.080 --> 00:02:01.517 open the consulate of Morocco. 00:02:01.600 --> 00:02:05.317 Now, usually, as you know, Eric, we get when we go to events, we get talking 00:02:05.400 --> 00:02:09.237 points, people give us talking points and all that. And so, I had not been 00:02:09.320 --> 00:02:12.557 reading my talking points lately. So, I've been telling my staff, "Why don't 00:02:12.640 --> 00:02:15.597 you just give me one or two bullet points wherever I go, and I'll weave a 00:02:15.680 --> 00:02:21.157 story into it." Well, I go to um you know, open up the consulate of 00:02:21.240 --> 00:02:24.837 Morocco, and there's only two bullet points. 00:02:24.920 --> 00:02:27.637 Bullet point number one is that there's direct flights to Casablanca. Bullet 00:02:27.720 --> 00:02:29.517 point number two is that it's the third 00:02:29.600 --> 00:02:32.357 consulate in America for Morocco. Not 00:02:32.440 --> 00:02:36.877 that much to go on, right? So, as I'm being introduced, I literally pull my 00:02:36.960 --> 00:02:42.797 phone out of my pocket, and I have the chat GPT prompt on the phone, and I 00:02:42.880 --> 00:02:45.197 speaking to the phone >> I would use Gemini. 00:02:45.280 --> 00:02:46.237 >> Of course, I have the Gemini prompt. 00:02:46.320 --> 00:02:49.677 That's what I meant. Uh yes, of course, I meant I I I meant 00:02:49.760 --> 00:02:51.117 Gemini, of course. I have the Gemini 00:02:51.200 --> 00:02:56.837 prompt, and I speak clearly into the Gemini prompt. 00:02:56.920 --> 00:02:59.477 Stand corrected. >> [applause] 00:02:59.560 --> 00:03:03.997 >> Know your audience, KYC. So, I have the Gemini prompt, and I say, 00:03:04.080 --> 00:03:07.557 "Pretend you're the mayor of Miami, and you're about to open the Moroccan 00:03:07.640 --> 00:03:11.177 consulate, and you only have two facts. Fact number 00:03:11.260 --> 00:03:13.797 [laughter] one is there's direct flights to Monica. 00:03:13.880 --> 00:03:15.637 >> Pretend you're the mayor of Miami. 00:03:15.720 --> 00:03:18.637 >> of Miami, right? [laughter] Fact number one is direct flights to Casablanca. 00:03:18.720 --> 00:03:22.397 Fact number two, it's the third consulate opening in the US. 00:03:22.480 --> 00:03:24.437 What would you say? Before they finish 00:03:24.520 --> 00:03:29.517 introducing me, and before I walked the stage, Gemini had written 00:03:29.600 --> 00:03:33.557 >> [clears throat] >> this entire speech for me. I read it word for word. 00:03:33.640 --> 00:03:36.717 People were crying, laughing, 00:03:36.800 --> 00:03:38.757 hugging me. You know our country so 00:03:38.840 --> 00:03:41.077 well, Mr. Mayor. How have you known 00:03:41.160 --> 00:03:44.157 about us so much and so deep? So, yes, 00:03:44.240 --> 00:03:47.397 thank you for that incredible Uh why 00:03:47.480 --> 00:03:51.717 so True story, by the way. And one more piece of congratulations, which I'm sure 00:03:51.800 --> 00:03:54.397 you'll appreciate. No one has ever done 00:03:54.480 --> 00:03:59.077 an American Business Forum at this scale in America. This is an innovative mayor 00:03:59.160 --> 00:04:03.357 as well. Uh and I >> [applause] 00:04:03.440 --> 00:04:05.597 >> I I really want you to think about doing 00:04:05.680 --> 00:04:10.437 this all around America, cuz business is what we do, and America's growth depends 00:04:10.520 --> 00:04:13.717 on the kind of things we're talking about today. What's interesting is that 00:04:13.800 --> 00:04:16.437 about 3 3 and 1/2 years ago, maybe 4 00:04:16.520 --> 00:04:18.597 years ago, there's a moment in San 00:04:18.680 --> 00:04:21.677 Francisco where people realized that 00:04:21.760 --> 00:04:23.997 these models could write. 00:04:24.080 --> 00:04:26.837 And boy, could they write. Oh, yeah. 00:04:26.920 --> 00:04:29.157 >> That's a real discovery moment. It's one 00:04:29.240 --> 00:04:33.917 of those historic moments in history, similar to physics and chemistry and 00:04:34.000 --> 00:04:38.357 things like that. It's incredibly disruptive, and and I appreciate the the 00:04:38.440 --> 00:04:42.157 comments. And of course, it's a it's a team effort. Nacho, who whose vision it 00:04:42.240 --> 00:04:45.197 was to bring it from Uruguay. Sergio, who's our big investor. Where are you, 00:04:45.280 --> 00:04:47.637 Sergio? You're here somewhere, I'm sure. 00:04:47.720 --> 00:04:51.077 Um he'll be here any minute. Steve, who helped me, my cousin, who helped me put 00:04:51.160 --> 00:04:54.077 this together. But let's get back to the interview. 00:04:54.160 --> 00:04:56.437 Um you know, Eric, you're obviously a 00:04:56.520 --> 00:04:59.917 world-renowned figure and tech pioneer. 00:05:00.000 --> 00:05:03.037 Did you have an inkling that you were destined for greatness? 00:05:03.120 --> 00:05:06.117 Um what was it about you, about your DNA? 00:05:06.200 --> 00:05:08.957 Was it your tenacity? I mean, what is the sort of 00:05:09.040 --> 00:05:11.437 the components of you that made you 00:05:11.520 --> 00:05:16.397 supersede? I think the most important thing to say anyone who's on stage here, 00:05:16.480 --> 00:05:20.397 start with luck. I was lucky to be born now. I was lucky 00:05:20.480 --> 00:05:23.717 to be born in America. My parents were academics. 00:05:23.800 --> 00:05:27.797 Uh I had an awful lot of people who helped get me through the various stages 00:05:27.880 --> 00:05:30.437 of life. One of the things that we, who 00:05:30.520 --> 00:05:32.917 are now older, owe the younger people is 00:05:33.000 --> 00:05:36.717 to give them the same opportunity. 00:05:36.800 --> 00:05:41.397 Right? It's really important. And and I was thinking about what what should be a 00:05:41.480 --> 00:05:43.597 theme for this audience. 00:05:43.680 --> 00:05:46.277 And the everyone in America is obsessed 00:05:46.360 --> 00:05:51.157 about everything except for one thing, which is the human talent. And the human 00:05:51.240 --> 00:05:54.397 talent of America is why we are exceptional. 00:05:54.480 --> 00:05:57.917 Focus on humans. Focus on their education and their culture and their 00:05:58.000 --> 00:06:01.117 development and their curiosity and their energy and their tenacity and so 00:06:01.200 --> 00:06:05.077 forth, and help them with the various travails that happen in life. Focus on 00:06:05.160 --> 00:06:09.337 the humans of America. It's the only answer. 00:06:09.420 --> 00:06:13.437 >> [applause] >> You know, you're a great leader. 00:06:13.520 --> 00:06:15.877 You've been a great mentor to me and friend. 00:06:15.960 --> 00:06:19.157 And you're an incredible coach. And I think and you've I've read some books on 00:06:19.240 --> 00:06:22.037 some of the people who coached you. Um what's 00:06:22.120 --> 00:06:25.837 the coaching habit that you think can you consistently use to raise the level 00:06:25.920 --> 00:06:29.917 of the team? So, I wrote a book about So, I had a coach named Bill Campbell. 00:06:30.000 --> 00:06:31.917 >> I read, by the way. >> that's right. We we actually talked 00:06:32.000 --> 00:06:34.597 about it. I had a I had a coach named Bill Campbell. 00:06:34.680 --> 00:06:38.317 And when I started at Google, the venture capitalist John Doerr said, "You 00:06:38.400 --> 00:06:41.197 need a coach." And I said, "I'm a big boy. I've run a lot of companies. I 00:06:41.280 --> 00:06:45.997 don't need a coach." And he said to me, "Do tennis players have coaches?" 00:06:46.080 --> 00:06:50.037 Absolutely. And I I knew he had trapped me. 00:06:50.120 --> 00:06:53.237 Right? Cuz the the answer is, of course, they do, even though they may not be as 00:06:53.320 --> 00:06:55.757 good as the actual tennis player. 00:06:55.840 --> 00:06:59.877 Coaches do different things. And so, we we hired or retained, if you will, Bill 00:06:59.960 --> 00:07:03.797 Campbell for free, and became my best friend at the time. 00:07:03.880 --> 00:07:06.117 And what he coached was not an 00:07:06.200 --> 00:07:08.717 individual, but a team. 00:07:08.800 --> 00:07:11.197 And the thing I learned from Bill is, as 00:07:11.280 --> 00:07:15.997 a CEO, you manage the team. You don't manage the individuals. And you work on 00:07:16.080 --> 00:07:19.637 the team dynamics, but fundamentally, it's a team sport. He was a football 00:07:19.720 --> 00:07:23.317 coach, and a and not a particularly good one. But he was an extraordinary human 00:07:23.400 --> 00:07:26.317 leader. And there's a book, Trillion Dollar Coach, 00:07:26.400 --> 00:07:30.437 if we were to write the book today, he died, unfortunately, some years ago, it 00:07:30.520 --> 00:07:34.437 would be called the Seven Trillion Dollar Coach, cuz he was the coach for 00:07:34.520 --> 00:07:37.317 Apple and Google. Think about it. 00:07:37.400 --> 00:07:38.717 I think he was a Princeton coach, right? 00:07:38.800 --> 00:07:43.197 >> No. Columbia. Columbia. His winning record was terrible. Like 0 and 10 or 00:07:43.280 --> 00:07:44.997 something like that. Yeah. So, but but 00:07:45.080 --> 00:07:49.517 leadership but I now understand that I 00:07:49.600 --> 00:07:51.757 needed coaching, my team needed 00:07:51.840 --> 00:07:57.197 coaching, and the way I manage is I manage as sort of CEO and coach. And you 00:07:57.280 --> 00:07:59.997 watch what's going on, and you try to get people to work together. And there 00:08:00.080 --> 00:08:04.037 are various techniques, like tell the people who talk too much so that the 00:08:04.120 --> 00:08:06.757 people who don't talk as much talk more. 00:08:06.840 --> 00:08:09.597 I mean, stuff like that. You know, I also didn't believe that 00:08:09.680 --> 00:08:12.517 much in coaching, and my coach is probably somewhere here in the audience, 00:08:12.600 --> 00:08:16.357 Louis Araujo. I don't know if Louis is here somewhere. There he is. There's my 00:08:16.440 --> 00:08:20.237 coach right there. He's a he's a great guy. 00:08:20.320 --> 00:08:25.477 So, for someone that's starting out in tech, what's sort of the mindset or the 00:08:25.560 --> 00:08:29.957 practice that you think is going to compound the most over the next decade? 00:08:30.040 --> 00:08:32.277 So, if you look at success, it's a 00:08:32.360 --> 00:08:34.637 combination of intelligence, that is, 00:08:34.720 --> 00:08:37.517 ability to do the work, and grit. 00:08:37.600 --> 00:08:42.317 And I would add intelligence, grit, and curiosity. When I was young, I was a 00:08:42.400 --> 00:08:45.957 sponge for everything, cuz I didn't seem to know anything, or I thought I knew 00:08:46.040 --> 00:08:49.837 nothing. And the internet had not really been invented yet. 00:08:49.920 --> 00:08:53.477 It was just getting started. And so, we didn't have the resources we have today. 00:08:53.560 --> 00:08:58.277 If I were a 16- or 18-year-old or 20-year-old, whatever, right now, I 00:08:58.360 --> 00:09:01.277 would be online all the time just learning, because I would be curious, 00:09:01.360 --> 00:09:05.077 and I want to know everything. Mayor, tell me about yourself. Tell me about 00:09:05.160 --> 00:09:07.997 your family. Tell me what you do. And how did you get here? What are the 00:09:08.080 --> 00:09:09.797 problems? And crazy enough, 00:09:09.880 --> 00:09:15.397 >> And I trained myself to to look at businesses and say, "How do they work?" 00:09:15.480 --> 00:09:16.797 Right? Like, how does this place work? 00:09:16.880 --> 00:09:19.797 How did you fund this? What was it your idea? Who did you work with? 00:09:19.880 --> 00:09:24.597 >> Pain. But but that's grit. Right? So, you have to have the 00:09:24.680 --> 00:09:28.117 intelligence. I have all sorts of friends who are brilliant, who can't get 00:09:28.200 --> 00:09:31.597 through the day, right? They wake up, they have an idea, they 00:09:31.680 --> 00:09:35.397 have another idea. Nothing happens with them. It's the people who have an idea 00:09:35.480 --> 00:09:39.797 that's very clever, and they have the tenacity to push it. Those things come 00:09:39.880 --> 00:09:43.677 from curiosity. Another example, and this I think 00:09:43.760 --> 00:09:46.957 the technology that we're in is so extraordinary, and I'm so excited about 00:09:47.040 --> 00:09:50.797 it, but there are some things we've lost. One of them is that we've lost is 00:09:50.880 --> 00:09:53.357 the looking out the window phenomena. 00:09:53.440 --> 00:09:57.157 And there's some evidence that looking out the window is fundamentally 00:09:57.240 --> 00:10:01.117 important for curiosity. So, here's an example for all of you. When you're 00:10:01.200 --> 00:10:05.637 leaving here today sometime, turn off your phone, tell everyone who's 00:10:05.720 --> 00:10:08.117 around you to shut up in a nice way, and 00:10:08.200 --> 00:10:11.357 look out the window and daydream. 00:10:11.440 --> 00:10:15.197 That daydream is is important, too, because that's how the creative thoughts 00:10:15.280 --> 00:10:18.877 come. Yeah, amazing. I mean, look, I think for 00:10:18.960 --> 00:10:21.517 me, failure uh has always been a great 00:10:21.600 --> 00:10:26.837 teacher. Pain, as as we said. What are the sort of high-quality failures that 00:10:26.920 --> 00:10:30.317 you've had in your life that you think have sort of permanently changed how you 00:10:30.400 --> 00:10:33.477 think about the world or how you lead? 00:10:33.560 --> 00:10:35.317 I think when you're when you're running 00:10:35.400 --> 00:10:38.237 stuff, you make lots of mistakes. So, I 00:10:38.320 --> 00:10:43.157 hold myself responsible for not getting ahead not getting ahead. We 00:10:43.240 --> 00:10:47.197 had the technology to do what Meta is doing now, and we didn't implement it 00:10:47.280 --> 00:10:50.757 fast enough. Right? That's what I hold myself responsible. 00:10:50.840 --> 00:10:53.797 >> Sure. Um but in general, if you just 00:10:53.880 --> 00:10:55.717 keep pushing, it works. And one of the 00:10:55.800 --> 00:10:59.037 key ideas about success 00:10:59.120 --> 00:11:03.317 is just keep doing stuff. Um what happens in organizations, 00:11:03.400 --> 00:11:07.797 especially if I can be honest, in middle age, uh is every everything becomes sort 00:11:07.880 --> 00:11:09.157 of normal. 00:11:09.240 --> 00:11:12.277 And uh I was interested in in 00:11:12.360 --> 00:11:16.437 in the innovation culture of America. Uh I was 00:11:16.520 --> 00:11:20.477 Ken Burns is a friend of mine, and I was watching him, and he was he was asked, 00:11:20.560 --> 00:11:23.077 "Is America in crisis?" And he said, 00:11:23.160 --> 00:11:25.877 "Oh, I think it's a in perpetual crisis. 00:11:25.960 --> 00:11:30.477 We've always been disagreeing, and our revolution is the thing." 00:11:30.560 --> 00:11:34.477 So, when you understand when you understand that the system is 00:11:34.560 --> 00:11:39.437 not designed to be static, it's designed to be dynamic, and it's a 00:11:39.520 --> 00:11:41.357 jump ball, then you can do it. I've 00:11:41.440 --> 00:11:44.437 consistently been slow to see that, if I 00:11:44.520 --> 00:11:49.677 do self-criticism, and I've consistently assumed that stable systems were always 00:11:49.760 --> 00:11:53.557 stable. Humans can always change the system if 00:11:53.640 --> 00:11:58.837 you need to. Figure out a way to change it to make it a better place. 00:11:58.920 --> 00:12:02.530 You know, >> [applause] 00:12:03.880 --> 00:12:06.797 >> you've run a big company. I'm running a billion and a half-dollar company, which 00:12:06.880 --> 00:12:11.877 is a city of Miami with 5,000 employees and four labor unions. 00:12:11.960 --> 00:12:15.757 The decisions that we make and that we've made affect thousands of people. 00:12:15.840 --> 00:12:20.997 Yeah. How do you deal with doubt in the face of understanding the implications 00:12:21.080 --> 00:12:24.237 of those decisions and how they impact people? 00:12:24.320 --> 00:12:27.957 I was talking to uh I've I've talked to the various 00:12:28.040 --> 00:12:31.157 presidents that I've had an an honor to meet. 00:12:31.240 --> 00:12:35.317 And when you actually talk to how the president operates, there are moments in 00:12:35.400 --> 00:12:40.037 a presidency when the president makes a decision where they have no idea what's 00:12:40.120 --> 00:12:44.317 going to happen. And yet they make the decision anyway. 00:12:44.400 --> 00:12:48.597 Uh that's I think how you have to operate. Obviously not none of us have 00:12:48.680 --> 00:12:50.917 that kind of responsibility, thank God. 00:12:51.000 --> 00:12:55.957 Um but fundamentally, if it gets to you, it shouldn't be an 00:12:56.040 --> 00:12:58.557 easy decision. The people who work for you should be 00:12:58.640 --> 00:13:02.597 able to handle these things. One way to think about it is the really complex 00:13:02.680 --> 00:13:07.397 problems are ones that you participate in, you lead the the you lead the team, 00:13:07.480 --> 00:13:11.877 and you make a bet, and you iterate and iterate and iterate. All success is 00:13:11.960 --> 00:13:15.797 fundamentally a genius and then iteration and and essentially just 00:13:15.880 --> 00:13:20.237 constant evolution. Um and you're always failing, you're always trying things 00:13:20.320 --> 00:13:24.597 that didn't work and so forth. One of the geniuses of America is that people 00:13:24.680 --> 00:13:29.197 who can go bankrupt can be rehired and become hugely successful. Many of my 00:13:29.280 --> 00:13:33.117 favorite entrepreneurs, the first idea didn't work, second idea didn't work, 00:13:33.200 --> 00:13:36.157 the third idea didn't work, and the fourth, boom. 00:13:36.240 --> 00:13:39.437 Right? So, never stop trying. 00:13:39.520 --> 00:13:43.797 On a similar note, when a project is deeply uncertain, 00:13:43.880 --> 00:13:48.717 but potentially transformative, how do you communicate your vision 00:13:48.800 --> 00:13:52.437 and guide your team through that uncertainty? 00:13:52.520 --> 00:13:56.997 Um what I try to do is I try to frame the question correctly. 00:13:57.080 --> 00:14:01.157 Usually, if you can ask so, let's start with the 00:14:01.240 --> 00:14:05.997 basic principle. Don't tell people to do, ask what people want to do. 00:14:06.080 --> 00:14:09.597 Right? But frame the question. Okay, this is what we want to do. What is the 00:14:09.680 --> 00:14:12.677 best idea? Because frankly, people don't like to be 00:14:12.760 --> 00:14:14.677 told what to do, they like to be asked. 00:14:14.760 --> 00:14:19.197 Right? And the key leadership is to frame the question or the goal in such a 00:14:19.280 --> 00:14:21.557 way that everyone kind of gets it. 00:14:21.640 --> 00:14:25.597 A simple rule is you have to repeat it at least 20 times before people believe 00:14:25.680 --> 00:14:28.277 you. So, I I become very repetitive. 00:14:28.360 --> 00:14:32.117 Another thing I do, which may be going out of of favor, because nobody uses 00:14:32.200 --> 00:14:36.277 email anymore, is I'm constantly writing down, "This is what I think. This is 00:14:36.360 --> 00:14:39.797 where we should do. What do you guys think?" and so forth. So, it's it's much 00:14:39.880 --> 00:14:44.757 more interactive. Um and the and the strategies evolve. And then you get some 00:14:44.840 --> 00:14:48.837 great product manager who can brilliantly expose the result of this 00:14:48.920 --> 00:14:53.437 process, but it fundamentally starts from saying, "What is our goal?" So, we 00:14:53.520 --> 00:14:55.397 want to win. Okay, what does that mean? 00:14:55.480 --> 00:14:58.317 Another thing I do that works well is I 00:14:58.400 --> 00:15:01.277 start by saying, "Where will we be in 5 00:15:01.360 --> 00:15:03.957 years?" Humans are terrible at 00:15:04.040 --> 00:15:06.917 predicting past the next six six 12 00:15:07.000 --> 00:15:11.117 months. Right? If you force people to say, "What will be true in 5 years?" you 00:15:11.200 --> 00:15:15.837 get a very different answer. So, here's an example. Uh the cost of AI 00:15:15.920 --> 00:15:20.597 tokens, that is the delivery of queries, is going down by a factor of 10 every 00:15:20.680 --> 00:15:24.517 year. Amazing. >> So, 5 years, 10 you you know, 10 to the 00:15:24.600 --> 00:15:29.357 fifth or sorry, five to the what you you can do the math. Uh it's a very large 00:15:29.440 --> 00:15:32.757 number. What happens when the cost of my little 00:15:32.840 --> 00:15:37.277 sonnet is so cheap, it's just everywhere? Right. Right? All in praise 00:15:37.360 --> 00:15:42.437 of you, mayor. Of course. What does that mean? Think backward. 00:15:42.520 --> 00:15:45.717 Almost [clears throat] every business fails to understand the compounding of 00:15:45.800 --> 00:15:48.760 these technologies. 00:15:49.320 --> 00:15:53.757 You know, innovation is often referred to as managed chaos. 00:15:53.840 --> 00:15:57.357 How do you explain that sort of juxtaposition, that tension between 00:15:57.440 --> 00:15:59.557 managing and something that's somewhat 00:15:59.640 --> 00:16:03.077 organized or ordered and chaos? 00:16:03.160 --> 00:16:06.317 Um it has to do with the structure of goals. 00:16:06.400 --> 00:16:11.157 You want to sit think a lot about goal alignment. In corporations, it's pretty 00:16:11.240 --> 00:16:15.197 easy, because everybody has stock options, they have a common goal. It's 00:16:15.280 --> 00:16:19.517 much harder in what you do. Because there's multiple goals. So, if I 00:16:19.600 --> 00:16:23.757 were you if I were running running the the city, which fortunately you're doing 00:16:23.840 --> 00:16:25.597 and I'm not, I would sit down and say, 00:16:25.680 --> 00:16:28.717 "What are the real goals?" Prioritize. 00:16:28.800 --> 00:16:31.957 Healthcare, safety, economic growth, 00:16:32.040 --> 00:16:33.597 welfare, uh 00:16:33.680 --> 00:16:36.397 inward and I'd measure them. 00:16:36.480 --> 00:16:39.277 Set the goals, measure them, articulate 00:16:39.360 --> 00:16:42.597 them, repeat, repeat, repeat. 00:16:42.680 --> 00:16:45.837 So, how do you protect true innovation 00:16:45.920 --> 00:16:48.797 from the bureaucracy that inevitably 00:16:48.880 --> 00:16:51.517 grows around that success and can stifle 00:16:51.600 --> 00:16:55.877 that same innovation? In software, which is what >> [clears throat] 00:16:55.960 --> 00:16:58.477 >> I've done from 50 years, 00:16:58.560 --> 00:17:03.157 which is I think largely going away, cuz AI is beginning to write software. 00:17:03.240 --> 00:17:05.317 My simple rule was that three people 00:17:05.400 --> 00:17:07.557 would invent something new, like the 00:17:07.640 --> 00:17:10.757 Chrome browser or, you know, the Android 00:17:10.840 --> 00:17:14.917 operating system or so forth, and then it would take a thousand people to 00:17:15.000 --> 00:17:18.157 finish it. And I kept thinking, "Why do we need so 00:17:18.240 --> 00:17:22.397 many people?" And there's this constant problem of 00:17:22.480 --> 00:17:26.357 every team, engineering team, management team, getting bigger and bigger. 00:17:26.440 --> 00:17:32.037 You want lean teams. The lesson over over is letting teams Another example, 00:17:32.120 --> 00:17:35.677 I have a rule with the companies I'm running now, that if we do new things, 00:17:35.760 --> 00:17:39.917 you can only have 10 people, you can't have 11. When we go into a new country, 00:17:40.000 --> 00:17:43.917 you can have 10 people, but not 11. Cuz I figure 10 people is a group that's 00:17:44.000 --> 00:17:46.757 kind of a manageable group, it's self-managing, they know each other, 00:17:46.840 --> 00:17:50.437 they can figure it out, and so forth, and you can judge the team. 00:17:50.520 --> 00:17:52.957 So, what happens in in if you're if 00:17:53.040 --> 00:17:57.637 you're not disciplined about that, you get uh who people who I call glue 00:17:57.720 --> 00:18:00.597 people, and I mean this in the most affectionate way. 00:18:00.680 --> 00:18:05.157 They are very nice people. They glue person A to person B, and you discover 00:18:05.240 --> 00:18:08.277 you don't need them. Person A can talk to person B without the person in 00:18:08.360 --> 00:18:11.597 between. Yeah. And that glue person slows everything down. So, time to 00:18:11.680 --> 00:18:16.037 decision, quickness, small teams, and agile thinking is important. 00:18:16.120 --> 00:18:19.797 My experience in talking about this around the world is everyone goes like 00:18:19.880 --> 00:18:23.117 this. And this means I'm a human, and I'm 00:18:23.200 --> 00:18:27.597 breathing, and I'm listening to you. It does not mean I'm going to do anything. 00:18:27.680 --> 00:18:32.277 So, if you hear these ideas, unless you implement the things I'm 00:18:32.360 --> 00:18:34.917 talking about, you won't get the benefit. 00:18:35.000 --> 00:18:38.837 Knowledge is not sufficient. You actually have to take the leadership. 00:18:38.920 --> 00:18:41.477 And that's and that's when it gets tough. 00:18:41.560 --> 00:18:45.477 Because you're talking about uh very protected groups, protected 00:18:45.560 --> 00:18:47.957 individuals, and so forth. The great 00:18:48.040 --> 00:18:51.557 business people know when to push those 00:18:51.640 --> 00:18:54.517 and when not to. And that's a judgment. 00:18:54.600 --> 00:18:58.360 So, of course, moving on to AI. 00:18:58.840 --> 00:19:02.997 AI is going to be the most powerful tool humanity's ever created. 00:19:03.080 --> 00:19:04.477 It's also potentially going to be the 00:19:04.560 --> 00:19:08.197 most dangerous. Let's watch this clip. 00:19:08.280 --> 00:19:12.317 A new age has begun, one not written in ink, but in code. 00:19:12.400 --> 00:19:17.277 This innovation, this arrival of this new alien incredible intelligence 00:19:17.360 --> 00:19:19.317 Artificial intelligence, the most 00:19:19.400 --> 00:19:22.037 powerful tool humanity has ever created, 00:19:22.120 --> 00:19:25.077 and perhaps its greatest test. The most 00:19:25.160 --> 00:19:29.637 important thing that's going to happen in about 500 years, maybe a thousand 00:19:29.720 --> 00:19:33.317 years in human society. Few understand it better than Eric [music] Schmidt, a 00:19:33.400 --> 00:19:36.437 man who helped shape the digital world as we know it. 00:19:36.520 --> 00:19:40.237 Today, he stands at the frontier of innovation [music] and responsibility, 00:19:40.320 --> 00:19:43.197 asking the question that will define our future. 00:19:43.280 --> 00:19:45.717 Can we control what we've created? 00:19:45.800 --> 00:19:50.760 The next revolution isn't coming, it's already here. 00:19:54.280 --> 00:19:57.437 So, uh that's that's as good as my sonnet. What happened? 00:19:57.520 --> 00:19:59.597 >> Good job. So, I I'm going to go a little off 00:19:59.680 --> 00:20:01.917 script, more provocative, I told you. 00:20:02.000 --> 00:20:06.797 So, is this sort of AI race really a race between 00:20:06.880 --> 00:20:10.477 hopefully the good guys out-programming the bad guys? Is that what this race 00:20:10.560 --> 00:20:12.117 going to be with more 00:20:12.200 --> 00:20:15.917 power, more compute, more sort of 00:20:16.000 --> 00:20:20.197 programming knowledge? Is that Is that how this is going to go down? 00:20:20.280 --> 00:20:22.837 Well, the the race to build a non-human 00:20:22.920 --> 00:20:25.557 intelligence that we collaborate with is 00:20:25.640 --> 00:20:28.717 the defining event of our generation, of 00:20:28.800 --> 00:20:32.277 our lifetimes. It will color everything. 00:20:32.360 --> 00:20:35.837 Um the gains will be phenomenal. Uh one 00:20:35.920 --> 00:20:38.157 of my friends is dying of ALS. Can you 00:20:38.240 --> 00:20:41.557 imagine the value of a solution to that? 00:20:41.640 --> 00:20:44.197 It's horrible to see. He's a great human 00:20:44.280 --> 00:20:47.157 being. Uh I I can go on and on about the 00:20:47.240 --> 00:20:49.357 tragedies that humans experience that 00:20:49.440 --> 00:20:51.757 these technologies can address. 00:20:51.840 --> 00:20:54.437 Healthcare is one obvious one. Um the 00:20:54.520 --> 00:20:56.877 arrival of intelligence for every single 00:20:56.960 --> 00:21:01.717 human being, right? Having an assistant that's as smart or smarter than you, the 00:21:01.800 --> 00:21:03.757 Einstein in your pocket. Just Just 00:21:03.840 --> 00:21:07.557 imagine all of that. Um these things 00:21:07.640 --> 00:21:11.997 it's very hard to predict what will happen with this amount of new 00:21:12.080 --> 00:21:15.157 intelligence. Remember I said the most important are humans. Well, now we have 00:21:15.240 --> 00:21:19.477 humans plus the AI. There are plenty of downsides, right? 00:21:19.560 --> 00:21:22.917 And we can talk about them, but the most important thing is this stuff needs to 00:21:23.000 --> 00:21:26.197 be built in America, on our values, with 00:21:26.280 --> 00:21:30.557 our views. And I feel very, very strongly about this. [applause] 00:21:30.640 --> 00:21:33.077 I want American I'll use the word 00:21:33.160 --> 00:21:38.477 liberalism in the classic sense. Um America's rule of law, it's individual 00:21:38.560 --> 00:21:42.037 freedom, it's distrust of the government, sorry. Uh the the 00:21:42.120 --> 00:21:44.357 combination of that individualism, the 00:21:44.440 --> 00:21:46.517 frontier um 00:21:46.600 --> 00:21:49.637 belief is really, really important. And 00:21:49.720 --> 00:21:52.597 we're on a revolutionary frontier here. 00:21:52.680 --> 00:21:54.877 A simple example is imagine if the 00:21:54.960 --> 00:21:57.757 internet had been invented in China. 00:21:57.840 --> 00:22:01.677 Just think about it. Just think about how different it would be and how your 00:22:01.760 --> 00:22:03.957 different your experience would be on it. 00:22:04.040 --> 00:22:08.197 By the way, after that sonnet, there's no offense taken whatsoever. 00:22:08.280 --> 00:22:10.877 Um so, okay. So, first question was was 00:22:10.960 --> 00:22:15.357 a little bit provocative. I think my second question is the following. 00:22:15.440 --> 00:22:19.677 The acceleration of the intelligence is so profound 00:22:19.760 --> 00:22:23.077 that the question becomes are these systems going to have their own 00:22:23.160 --> 00:22:27.277 consciousness? And if they have their own consciousness, are they going to be able 00:22:27.360 --> 00:22:30.517 to make decisions independent of the prompting 00:22:30.600 --> 00:22:32.877 which means if they're smarter than us 00:22:32.960 --> 00:22:37.677 and they're independently prompted can they figure out more intelligently 00:22:37.760 --> 00:22:41.677 than we can how to prevent us from turning them off? Yes, you're now 00:22:41.760 --> 00:22:44.757 writing a movie script that I think we're going to see a lot of movies 00:22:44.840 --> 00:22:48.917 written about. So, for a bit of background right now, these AI systems 00:22:49.000 --> 00:22:53.317 are prompted by humans. The technical term is called prompt engineering. And 00:22:53.400 --> 00:22:56.637 young people in college will go to prompt engineering class where they'll 00:22:56.720 --> 00:23:00.677 learn how to manipulate these models in really, really powerful ways. 00:23:00.760 --> 00:23:05.437 That's not general intelligence. That's special intelligence. So, if I'm a 00:23:05.520 --> 00:23:08.757 physicist, which I'm not, I'll have my physics assistant and I'll say I have 00:23:08.840 --> 00:23:12.437 the following idea and the physics assistant will say, "Well, I I've 00:23:12.520 --> 00:23:16.517 analyzed that. Here's a better idea for you." But the invocation or the 00:23:16.600 --> 00:23:20.317 initiation occurs from the human. 00:23:20.400 --> 00:23:24.797 The question is when do these systems When are they able to initiate on their 00:23:24.880 --> 00:23:28.037 own? The technical term for that is called recursive self-improvement. 00:23:28.120 --> 00:23:31.557 They're just naturally learning and getting smarter. And there are all sorts 00:23:31.640 --> 00:23:35.717 of terrible scenarios. It discovers that the only thing the computer needs is 00:23:35.800 --> 00:23:39.717 electricity, so it decides to shut down a hospital to get more electricity for 00:23:39.800 --> 00:23:42.437 itself. Those are the kind of movie scenarios. 00:23:42.520 --> 00:23:45.157 To me, all of these are red lines. 00:23:45.240 --> 00:23:48.117 The point at which we humans give agency 00:23:48.200 --> 00:23:52.637 to these computers for what they do is a mistake. 00:23:52.720 --> 00:23:55.917 And I think collectively we need to define those red lines. Another example 00:23:56.000 --> 00:23:59.717 would be access to weapons. The last thing I want is an AI system making 00:23:59.800 --> 00:24:05.200 decisions about nuclear war, nor do any of us. That kind of thing. 00:24:05.760 --> 00:24:07.437 I have a bunch of questions from that. 00:24:07.520 --> 00:24:09.197 Cuz the problem is with that is is is 00:24:09.280 --> 00:24:11.397 certainly and we see this sort of play 00:24:11.480 --> 00:24:16.517 out geopolitically. The US, we presume will be responsible. 00:24:16.600 --> 00:24:19.517 The question is how do we deal with people who may have this that are not 00:24:19.600 --> 00:24:22.877 responsible? Number one. And And I'll And I'll I'll 00:24:22.960 --> 00:24:24.517 give a little bit of hope to humanity. 00:24:24.600 --> 00:24:26.957 This is the second time I interview Eric, by the way. 00:24:27.040 --> 00:24:29.277 And we talked about this the first time. 00:24:29.360 --> 00:24:32.157 Just to give humanity a little bit of hope. Obviously, nuclear weapons have 00:24:32.240 --> 00:24:35.237 been around for a generation. And but 00:24:35.320 --> 00:24:39.557 for the first time that they were employed thankfully, you know, they they 00:24:39.640 --> 00:24:44.517 we've limited this technology to something that has not so far destroyed 00:24:44.600 --> 00:24:49.517 us. So, I guess my question is we can potentially have faith in our 00:24:49.600 --> 00:24:53.437 country hopefully to do the right thing and draw those red lines. How do we deal 00:24:53.520 --> 00:24:57.917 with the nefarious actors who may not be so ethical? 00:24:58.000 --> 00:25:01.917 We're going to have this problem. Every technology I mean it when Alexander 00:25:02.000 --> 00:25:05.517 Graham Bell invented the telephone, it didn't occur to him that criminals would 00:25:05.600 --> 00:25:09.357 use it. I remember one day people said, "Did you know that there are criminals 00:25:09.440 --> 00:25:12.357 on the internet?" And I said, "Who let them in?" 00:25:12.440 --> 00:25:15.317 Right? >> [laughter] >> We didn't design the internet for 00:25:15.400 --> 00:25:20.277 criminals and they showed up, right? So, you have to assume the same thing is 00:25:20.360 --> 00:25:23.517 going to happen with with this technology. And I think the most 00:25:23.600 --> 00:25:27.517 important thing is to put in the the observational systems to watch for it. 00:25:27.600 --> 00:25:30.797 And we should be able to create surveillance systems within the internet 00:25:30.880 --> 00:25:35.557 to watch for bad actors, at least in the extreme cases. Um I'm worried about it 00:25:35.640 --> 00:25:37.397 for the following reason. 00:25:37.480 --> 00:25:40.437 In our lifetimes, in the next 5 or 10 00:25:40.520 --> 00:25:43.517 years, every single human on the planet 00:25:43.600 --> 00:25:45.997 who has a mobile phone, cell phone, will 00:25:46.080 --> 00:25:48.517 have access to Einstein, Leonardo da 00:25:48.600 --> 00:25:52.157 Vinci, you know, whomever in some form. 00:25:52.240 --> 00:25:56.157 We've never had that devolution of power. We've never had that 00:25:56.240 --> 00:25:58.917 decentralized empowerment of humans. 00:25:59.000 --> 00:26:01.877 Now, this group I trust. 00:26:01.960 --> 00:26:06.037 There's an awful lot of wacky countries and wacky cultures and wacky religions, 00:26:06.120 --> 00:26:09.637 sorry, where I'm not so sure I would trust their collective action being 00:26:09.720 --> 00:26:11.757 consistent with our values. For sure. 00:26:11.840 --> 00:26:15.077 Right? And I think history will judge us 00:26:15.160 --> 00:26:20.117 based on how we make this how we handle the humans as this intelligence 00:26:20.200 --> 00:26:24.317 evolution occurs and empowers individuals. 00:26:24.400 --> 00:26:27.237 So, the most famous use case obviously of AI right now is the large language 00:26:27.320 --> 00:26:31.197 models. I mean, they're the ones that are being used day in and day out. What 00:26:31.280 --> 00:26:35.477 would you say are probably going to be, let's say, the top one or two or three 00:26:35.560 --> 00:26:39.397 next use cases that you think are going to change things? And maybe one or two 00:26:39.480 --> 00:26:40.677 that people aren't thinking about. 00:26:40.760 --> 00:26:44.477 >> Well, so today there are sort of three things going on. I'll simplify it. 00:26:44.560 --> 00:26:48.637 Language stuff, that's what we were joking about with large language models. 00:26:48.720 --> 00:26:52.317 There's something called the agentic revolution where you have agents. An 00:26:52.400 --> 00:26:56.717 agent takes language in, it has memory, and it produces something. So, it says, 00:26:56.800 --> 00:26:58.717 "I want to do a conference in Miami." 00:26:58.800 --> 00:27:02.717 And it selects the venue. And then it calls the mayor and the mayor says yes 00:27:02.800 --> 00:27:06.477 cuz the mayor is very pro-business. And then it calls the security people and 00:27:06.560 --> 00:27:08.077 then it calls the contractors and then 00:27:08.160 --> 00:27:10.797 it designs the stadium. Each of these is 00:27:10.880 --> 00:27:14.557 a work plan, right? Um 00:27:14.640 --> 00:27:17.397 over and over again, that's workflow. 00:27:17.480 --> 00:27:19.637 Workflow is what happens in business. 00:27:19.720 --> 00:27:24.117 The technical industry believes two things. First, the scaling laws, which 00:27:24.200 --> 00:27:28.077 are the laws of improvement, are not slowing down. 00:27:28.160 --> 00:27:32.357 The crazy [snorts] investment that you see is there for a reason. They're 00:27:32.440 --> 00:27:36.837 seeing the kind of gains, this factor of 10 every year, are continuing to come. 00:27:36.920 --> 00:27:41.397 It's pretty amazing. Um and and most importantly, with that investment comes 00:27:41.480 --> 00:27:42.597 everything else that we talked about. 00:27:42.680 --> 00:27:45.517 It's enormously expensive. And by the way, we're going to run out of 00:27:45.600 --> 00:27:49.597 electricity before we run out of money, which is a separate discussion. But the 00:27:49.680 --> 00:27:51.077 important thing is you have language. 00:27:51.160 --> 00:27:52.917 The next thing and then you have agents. 00:27:53.000 --> 00:27:55.717 And these agents do everything. There's something called agent orchestration 00:27:55.800 --> 00:27:57.517 where you can move the agents around. 00:27:57.600 --> 00:28:01.077 And the third one is essentially reasoning. 00:28:01.160 --> 00:28:06.197 You now have systems that can pass math tests, chemistry tests, biology tests, 00:28:06.280 --> 00:28:10.197 and so forth at the graduate level and beat the humans. That's really 00:28:10.280 --> 00:28:13.477 remarkable. And I've watched them and I have no idea what problems they're 00:28:13.560 --> 00:28:16.557 solving. And you can watch them go forward, it doesn't work. They 00:28:16.640 --> 00:28:18.797 problem-solve like a human being. 00:28:18.880 --> 00:28:22.397 The union of those is the power. 00:28:22.480 --> 00:28:26.637 That will give us the power to innovate to address our problems. And the the 00:28:26.720 --> 00:28:31.237 thought experiment that I would give you is let's imagine that one of the 00:28:31.320 --> 00:28:34.717 American companies I obviously have my own bias, but we'll pick somebody else, 00:28:34.800 --> 00:28:38.557 you whoever manages to get to the point where these 00:28:38.640 --> 00:28:40.997 systems can solve problems that humans 00:28:41.080 --> 00:28:43.837 have never been able to solve. 00:28:43.920 --> 00:28:47.517 What is the value of that company? 00:28:47.600 --> 00:28:50.637 How many trillions of dollars in one 00:28:50.720 --> 00:28:54.557 company? Infinity. Right? It's It's literally I mean, think about all the 00:28:54.640 --> 00:28:58.037 problems you face every day and it can solve every one of them. And you can sit 00:28:58.120 --> 00:29:00.397 there and drink coffee and, you know, sort of watch it. 00:29:00.480 --> 00:29:03.877 >> just solves most of them, but that's okay. That's right. Uh the important 00:29:03.960 --> 00:29:07.197 thing is that we're on the threshold of being 00:29:07.280 --> 00:29:10.357 able to have truly new innovation. 00:29:10.440 --> 00:29:14.157 And that's the That's the hype. That's the promise. 00:29:14.240 --> 00:29:18.757 If we don't get there, people will be destroyed just from their own hype. I 00:29:18.840 --> 00:29:21.797 mean, it's extraordinary. I'm going to ask one last question. It's a follow-up 00:29:21.880 --> 00:29:24.597 to the the problem that you presented. 00:29:24.680 --> 00:29:29.637 Is SMRs, which is a small scale modular reactors, is that the solution for that 00:29:29.720 --> 00:29:32.757 energy gap that you're talking about? Or is it going to be something else? We 00:29:32.840 --> 00:29:35.677 need more energy in America. 00:29:35.760 --> 00:29:39.677 We need every kind of energy. Um we need 00:29:39.760 --> 00:29:41.997 uh nuclear. We need fusion. We need 00:29:42.080 --> 00:29:44.997 natural gas. We need renewables. We need 00:29:45.080 --> 00:29:47.597 wind. We need solar. We need it all. 00:29:47.680 --> 00:29:49.917 Why? Because those data centers which 00:29:50.000 --> 00:29:53.437 account for 1% of GDP growth this year 00:29:53.520 --> 00:29:56.917 in America need power. If you want that 00:29:57.000 --> 00:30:00.717 3% growth that the president love this have talked about, you need to solve the 00:30:00.800 --> 00:30:02.877 energy problem. Eric, thank you so much. 00:30:02.960 --> 00:30:06.317 What a provocative conversation. Thank you. Appreciate it. 00:30:06.400 --> 00:30:09.047 Can I read one thing? Oh, of course. 00:30:09.130 --> 00:30:13.317 >> [applause] >> I I I was thinking a lot about you gave 00:30:13.400 --> 00:30:15.117 me the honor to talk to this incredible 00:30:15.200 --> 00:30:18.397 group about the frontier. 00:30:18.480 --> 00:30:23.197 Um in 1893, a fellow named uh Frederick Turner 00:30:23.280 --> 00:30:27.517 talked about the frontier. And he said, 00:30:27.600 --> 00:30:31.917 "To the frontier the American intellect owes its striking characteristics. This 00:30:32.000 --> 00:30:35.677 is 150 years ago. That coarseness and strength combined 00:30:35.760 --> 00:30:38.037 with acuteness inquisitiveness, that 00:30:38.120 --> 00:30:40.997 practical inventive turn of mind quick 00:30:41.080 --> 00:30:43.757 to find expedients, that masterful grasp 00:30:43.840 --> 00:30:46.237 of material things, lacking in the 00:30:46.320 --> 00:30:48.397 artistic but powerful to affect great 00:30:48.480 --> 00:30:51.637 ends, that restless nervous energy, that 00:30:51.720 --> 00:30:54.877 dominant individualism working for good 00:30:54.960 --> 00:30:57.597 and evil and with all that buoyancy and 00:30:57.680 --> 00:30:59.997 exuberance which comes with freedom, 00:31:00.080 --> 00:31:02.637 these are the traits of the frontier. 00:31:02.720 --> 00:31:06.277 This is America. This is us. This is why 00:31:06.360 --> 00:31:08.277 we're here. This is why you're a great 00:31:08.360 --> 00:31:14.030 leader. Thank you very much." That was >> [applause] 00:31:15.240 --> 00:31:19.317 >> That was in 1893. >> 1893. You know what happened 3 years 00:31:19.400 --> 00:31:20.677 later? What's that? You know what 00:31:20.760 --> 00:31:23.037 happened 3 years later? What? The city 00:31:23.120 --> 00:31:26.757 of Miami was established. 1896. 00:31:26.840 --> 00:31:28.317 >> There you go. Happy birthday to Miami. 00:31:28.400 --> 00:31:32.887 Thank you. Okay, mayor. Good. Thank you, guys. 00:31:32.970 --> 00:31:34.990 >> [music] 00:31:46.360 --> 00:31:50.237 >> At the Adam Smith Center for Economic Freedom, you don't just learn, you 00:31:50.320 --> 00:31:54.507 achieve. Through our interdisciplinary Bachelor of Science in Business and 00:31:54.590 --> 00:31:56.037 [music] Government Leadership, you'll 00:31:56.120 --> 00:32:02.200 gain perspective, innovate, and connect with real-world leaders.