SPEAKER_01

Today is welcome to AI innovators. We're heading daily.ai, which is transforming how brands and leaders engage with their audiences using AI-driven email newsletters. This is groundbreaking work producing high open rate newsletters to influence show is redefining content creation in the AI era. So listen in today as we hear Joe State's exceptional journey and insights into AI's evolving role in communication and marketing. Welcome to Using AI at work. I'm your host, Chris Daigle. Each week we'll be learning how today's business owners, entrepreneurs, and ambitious professionals are getting more done with smart use of tomorrow's tech. Let's get started. Ladies and gentlemen, I would like to welcome Joe Stolte to the show today. Joe and I met earlier this year when he was, I guess, in a much different phase than you are now with daily.ai. And I was intrigued by the business model and just Joe in general. I think that you'll find that he's an extremely capable business person and not cocky about it, which is always nice. So Joe, welcome to the show. Chris,

Daily.ai: Redefining Content Creation with AI

SPEAKER_01

thanks for having me, man. Glad to be here. Absolutely. And again, I appreciate you coming in off the beach or where wherever you were doing this. I would like for everybody who's listening to understand what daily.ai does.

SPEAKER_00

Yeah, absolutely. It's super simple. So we help thought leaders and small brands make AI automated email newsletters that get 40 to 60% open rates. And we can do that in less than five minutes of time for our customers per week without them having to write a single piece of content. So we've really reimagined one of the most powerful engagement strategies in marketing with AI. And we do it in a way that's better, faster, and cheaper than most small teams and humans.

SPEAKER_01

That's incredible. Can you kind of give me an idea of maybe some of the clients that you're working with and some of the uh results or feedback that you've gotten from daily.ai?

SPEAKER_00

Yeah, absolutely. So on one side of our business, we work with sort of larger thought leaders, you know. So we work with people like Dr. Peter Diamendez or Chris Voss or JJ Virgin or Joe Polish or Dan Martell or Dan Sullivan and and and, you know, these are typically people that are have personality-driven brands or they have great brands or they're thought leaders or they're authors, New York Times, Wall Street Journal, bestsellers, et cetera. But we also have over a hundred different customers in 20-something plus industries that have nothing to do with being a kind of a thought leader or a personal brand. This is, you know, whether you're the coffee shop in Bethesda, Maryland, or you're the venture capital group out of San Francisco, or a real estate agent, or, you know, someone that works in finance, et cetera. We work with small business owners that typically have less than 100 employees. They have customers that really um really want to hear from them, and they don't have the time or the capacity to be able to engage them on a regular basis. And one thing that we've found to be true uh in our journey as entrepreneurs, and soon for myself and also for the market, is that you know, consistency creates trust and trust creates actions and transactions. And so the more you can consistently add value to your marketplace, the more goodwill you can create, the more transactions you can get them uh to do with your business. And so we we've used email to do that with small brands, and uh, we're super proud of our progress.

SPEAKER_01

Nice. That's that's an incredible opening. That's uh seems like a very low barrier to entry. And there's no question that email and in particular well-written email newsletters, they work. They've worked in every industry that's used them. So I'm glad to hear that. Um you've had a lot of business successes. What got you to daily.ai?

SPEAKER_00

Yeah, that's a really good question. So um, you know, for context, for those of those that don't know me, that are listening, I'm a fifth-time founder, technology founder. I've had three exits, which means I've either sold or taken companies public uh successfully three times. Uh, most recently, I sold a company called Growflow for 62.5 million. And then prior to that, I was the number two person at a company called Lottery.com, which went public uh for just over half a billion dollars. And so what got me here was basically I was in my last business, um, Growflow. Um a friend of mine came in and took over as the CEO, and he asked me to kind of be co-CEO. And I said, you know what? I I don't really, I'm not really into the co-CEO thing, but I'll be the chief revenue officer because I really wanted to like focus on that part of the business. And we were in a regulated marketplace, so we, you know, we couldn't buy ads. We did compliance software in the legal cannabis industry. And even though we didn't touch the plant, because we were associated with that market in any way, shape, or form, we couldn't really do social media strategies, we couldn't really buy ads. So we had to get really creative. And so we did a lot of direct marketing. We did direct mail, uh, we had a killer sales team, um, but we did a lot on email. And I got to realize that email is this wonderful tool. You know, it has more daily active users than any single social media platform. And I get to give these keynotes all over the country and I say, you know, hey, raise your hand if you use email in your business. And everybody raises their hand, and I say, keep your hand in the air if you use TikTok in your business. And, you know, most hands go down, and I'm kind of picking on TikTok, but the fact of the matter is, uh, all real serious businesses in the world, they use email, they're run on email. And so we said, hey, how can we make that process easier and more efficient? So we sold uh Growflow, and right as that was wrapping up, I was reaching out to my network and saying, Hey, who who do I know it's doing anything cool in AI or possibly email? And it's funny what you put out in the universe because what I got back was, oh, you should meet uh Evan Pagan and Dr. Peter Diamandez. They have an AI email thing. But it, you know, and so I met those guys and they didn't really have uh a market. There was any really team put together yet. Uh they just had this great idea that Evan had been iterating on for a few years that um uh uh Peter Diamandez had breathed some life into. And uh I said, great. So I joined, I became CEO, uh, started raising some money, recruited a lot of my old teammates from my last two companies. Nice. And uh and here we are today. That's how we got here. I said, you know, how can we help people with this email thing? Because it's so effective. But everybody's so focused on this whiz bang, new social media, paid strategy, AI, whatever. But email, just boring old email, continues to be highly effective. In fact, 80% of brands with less than 100 employees still use email as their primary acquisition and retention strategy as a channel. So I said, great, we have all these new cool things happening with AI. How can we how can we combine those two things to just make everyone's life a little bit easier? And to put a fine point on it, like our mission as a company, Chris, is to help every small business be to market without being a marketer, right? And we want to do that through technology. So you don't have to do all the stuff that like you and I did to study marketing and practice it, whether that's brand marketing, direct response marketing, writing out sales letters by hand or whatever. Uh we want to we want to create an operating system that makes that much, much easier for smaller brands to just use and reach our customers and do what they're great at, which is producing their and delivering their products and services.

SPEAKER_01

I love it. I love it. So all small businesses listening to this program, please take note. Daily.ai. So Joe, were you using AI, generative AI, prior to your participation in the business now?

SPEAKER_00

Yeah. So right when I uh where when we sold Growth, I started getting really, really interested.

Joe Stolte's Introduction to Generative AI

SPEAKER_00

I got access to uh uh GPT 2, not ChatGPT. This is two years before ChatGPT came out. It was just AI, uh API access. And I just was kind of messing around to get a feel for, hey, what's possible? And you know, I was blown away. And and you know, uh GPT 2 is pretty inferior comparatively to what we have available to us today. You know, there was no chat bot interface, there's there wasn't a lot going on there, but I was I was blown away by the novelty of being able to just, you know, with a few couple of well-crafted inputs, get incredible outputs fairly quickly. Um, and so that got my brain turning. And then, you know, we we actually I took over as CEO of daily.ai back in 2021. At that time I was just experimenting, but I think that's the important first step is to say, is to just to kind of get rid of the fear of change and the fear of, hey, this is something new, and it's it's sound AI, it sounds uh it sounds, you know, techy, complicated. Yeah. Yeah, exactly. Um, and so just to get rid of that and just to start playing around, and then you're you know, when you're in a state of like curiosity, it's like a higher human state than when you're in kind of fear or anxiety. So I think the first step for us, and it's applicable to people listening to this, is like, hey, like if you can get into curiosity and get out of like fear of change or fear of tech or whatever, that's like the first door you have to walk through. And then once you go through that door, everything's possible. But to answer your question specifically, um, then we started using it for almost everything. Like, like as early as 2022, um, you know, we were using it for crafting, we basically have two primary use cases that we've used, you know, since back then, all the way till today with GPT-4 from a you know generative AI model perspective. Uh, the first thing is we try not to start with a with a blank sheet of paper. You know, like in our business, we know that um about half of companies spend not days or hours, but two to three weeks to make a single marketing piece or an email newsletter because they have this blank page problem. What do I put in there? What should it be about? And so the first thing we do is we use tools like ChatGPT. We never start from a blank page. We just have an idea of the outcome that we want and a description of what we want to create, and we have it create it for us. And even if it's totally wrong, it gets us over that blank page problem, right? 100%. The second thing that we do is uh we actually I like to look at AI, especially generative AI, as a really, really, really good intern. And you know, any experienced business person knows you don't ship intern work to the marketplace. You always have a more experienced person come and look at it. Um, and the reason why is because we're so far up the experience curve, like we have enough intuition to know what's gonna work and what's not, but we're smart enough to test it anyway. Though these generative models, they don't have any of that. So what I'll do is, you know, we don't start with a blank page, but once we get something back from them, we'll then take it through our process, whatever that is, whether that's a job description or a piece of marketing collateral or an important response to a customer, of which I could give you several examples, we'll write it out, and then I'll take that output and I'll feed it back into Chat GPT and I'll say, hey, you know, using something called the inversion thinking mental model, help me find ways that this communication could fail if our objective is with this person to do this. And then it'll give me ideas basically how to make the content better. So instead of going from zero to blank page, now I'm going the other direction. Hey, poke holes in this, help me find how I can make it better. I'll pick two or three things that I think we can make it better. And through a combination of our humans on our team or myself and some additional prompting, you know, we're able to get a far better end product than than we were when we were just writing stuff on our own. I mean, it's really remarkable. And it's all fast, it's in seconds.

SPEAKER_01

So what percentage is human in the loop and most of the stuff that you would be doing? Not the product that you're delivering through daily, but like for internal processes and operations. Yeah. Um if you're using generativity, I know that you're not using it over every single piece of your business, but where it's being used, what is how much like because that gives me some indication of time saved or scalability.

SPEAKER_00

Yeah, so um we're not uh we don't just you we don't just make we make a lot of our own tools, obviously. We're an AI company. We also uh no, we we have we have a team of engineers and developers, you know, we're working on stuff both for internal tools as well as external tools, and I can give some examples. But for stuff that anyone could access, you know, we're using uh first of all, we're using uh Chat GPT, BARD, and other similar kind of chat large language learning models for generative AI in every phase of our business. So if you just look at from the very beginning, like finding, sourcing, and managing people, we use chat GPT for everything job descriptions, job scorecards, performance reviews, text analysis. Uh we use we use it inside of our marketing, obviously. That's our bread and butter. Um, but we use it for very complex uh, for example, prompts to generate deep user research that then we then hand the researchers to validate, and then we package and then we use that as a base to say, hey, help us write copy or help us improve our positioning or help us improve our website.

SPEAKER_01

That particular application, are you doing that with actual data sets of existing clients, or are you having the models uh synthesize those audiences to test?

SPEAKER_00

Yeah, good question. Um, so in our product, in our email product, we do both. Well, basically every time someone opens a newsletter, the news, you know, newsletter gets smarter based on people are clicking on. Because we know that um inputs and outputs, like it's the way that these LMs work is it's input, process, output. You put a prompt in, it runs its process, you get an output. Um, but we know that outcomes are more important than outputs. So we want to make sure we get the result. And the only way you can do that is through what we call uh adaptive learning or iterative intelligence, or put simply testing. Did it work? And so, you know, we'll if we're writing a sales or marketing piece or changing our sales and marketing in any way, we'll start, you know, like any, let's just say we weren't using AI, we would do the same thing. We'd have a hypothesis, we would get in uh we build a marketing or sales piece, we would uh test that against our control or get a baseline, and then we would look at the results and then we would iterate. So we're using AI for every single part of that process. We're using it to generate the first draft, beat up the final one, we then publish it, we take the data, we put it into Chat GPT data analyzer, we get insights, we make iterations, and we keep repeating it. So we're doing kind of a human version of that for everything that isn't like in our email space. Because we know that works so well in our main product, we want to replicate that. What do I mean by that? We just want to test everything and make sure that we're constantly getting that feedback loop. And and for the reason why is in in business, most things don't work. I don't mean to be negative, it's just that like when you publish a marketing piece, you know, yeah, like like your if your conversion rate was 51%, then you'd you're printing money, right? So because it's usually under 50%, the majority of things you did, the majority of people you put in front of didn't care. So you have to crack that code and keep trying to get that up into the right. The only way you can do that with test is with testing.

SPEAKER_01

So um the and testing is expensive, by the way, ladies and gentlemen, if you're not currently doing it, the old way. Maybe not necessarily dollar percentage, because it's gonna uh be a different answer for every business. But as far as maybe result cycle or time to complete that cycle, old way versus new way, what have you have you what's a ballpark estimate on time savings or talent savings?

SPEAKER_00

Oh yeah, I mean, I'll give you, I'll just compare to

Testing, Iterating, and Scaling with AI

SPEAKER_00

like so at Growflow when I when I came on as CRO, we had about 17, 18, maybe 19 employees, and we scaled to 119 employees in less than 90 days. We weren't using any AI, we rapid scale, and that's what we do. You know, it's kind of what I do as a scale-up entrepreneur, right? Is we split scale and we grab the market, um, including with lots of people. Um at daily.ai, uh, we had a seven-person team until summer the whole time. You know, now we're at like 23 people. So we were basically doing the work of probably 50 to 80 people with less, less than, you know, with a team that could be fed on a on a couple of pizzas, very, very full on a couple of pizzas. And so, you know, now we're we're scaling and our team's growing much faster uh because we're we're building a whole new part of our product that has nothing to do with email marketing. Um, but you know, for for so just to give you basis of comparison, because we were an AI first company, we were getting four, five, six X multiples on output on a on a pure output basis, which in, you know, I would argue in any business, speed of X speed of execution, speed of implementation is really, really important. Um, especially, especially in small organizations, especially in early stage tech. So, you know, I don't know how that translates to from an hours perspective. I just know that I was able to keep an insanely low burn rate, meaning the amount of money we spend each month, because I wasn't hiring people as fast as in any of my previous startups because we our our capabilities were just so amplified through you know different forms of AI.

SPEAKER_01

Let me ask, so when you put the team together, were was their experience with using AI an important qualifier? And if not, what was the process like getting them up to speed to adapt to using these new tools?

SPEAKER_00

Yeah, no, it really wasn't. You know, today we can we can hire um someone in the Philippines to our fulfillment team for between uh you know $500 to $2,000 US a month. And uh through our video trainings, which are which we use AI to update, and our SOPs and various onboarding materials, which are all mostly created using AI and generative AI, uh, we can get them up to speed in 21 days now or less. So yeah, that no no no previous AI experience required. If you have it, fantastic. But the main thing is that you you have two two things, and this is applicable whether you're hiring people or you're you yourself is trying to come in. First one is you've got to be curious, you've got to have a growth mindset.

unknown

Yeah.

SPEAKER_00

And then third thing is if you're hiring people, they need to feel like they're in a safe environment. If you're curious, you're a safe environment, you have a growth mindset. You know, uh, there's been research and really intelligent people that have said that, you know, perhaps the drive for curiosity is stronger than maybe the drive for survival or sex in our species, but we just mute it so much. So you really have to be curious. If you're curious, it's this really powerful, I've found my experience, shows is a very powerful human drive. So if you have that, you don't need to know anything about AI. Like your human curiosity will just fill in the blanks. That's really kind of yeah. That's right. They're very easy to use.

SPEAKER_01

Yeah. So it's refreshing and and exciting to hear the team contribution that it does. But I'm interested in your use in it strategically for ideation, for negotiation preparations, for I don't know, legal review. I'm not suggesting that, but there's a lot of uses for it. How are you as a business executive, a business owner and founder, uh using it for the strategic side of your business?

SPEAKER_00

Yeah. Well, let's kind of go in

SPEAKER_00

reverse order. So we do use it for legal, you know. Um, I'm not a lawyer and I don't plan one on TV, but I've been a startup founder for long enough that I've had to learn legalese a little bit, navigate contracts. I think we've engaged our lawyer maybe like seven or eight times meaningfully this year. And it a lot of that was like, hey, we need to change our name, help us with some filings. The rest of it is like, hey, we have a base agreement uh that's already legally sound, and I'll say, you know, hey, you know, write this identity clause to be two-way instead of one way, you know, and it'll rewrite it. And I'll go look at another identity clause and those look pretty good. And then if I'm really worried about it, I send it to my lawyer. I'm like, hey man, does this look good? And instead of paying for like a full hour of the lawyer's time, I pay for five minutes. Yeah. Yeah. And it's like, yeah, fine, it's totally fine. And so that's we've had tremendous advantages. And you, you know, if you know your way kind of around the legal contracts, you know how to prompt, yeah, you know, it's great. Of course, you know, all please check with your lawyer and you know, do have a legal discussion, I'll look it over. Yeah. Um, but that's that's helped us move a lot faster. Um now strategically, um, what we'll do is like here's a like a relatively real life example. So um, well, we end of 2022. We had our 2022, we put our beta product in the market. It was a closed beta. We let maybe 30 or 50 people in a quarter, and uh towards the end of the year, we started having churn. We had you know pretty high churn. It was like 20 something percent churn, which is egregious in our world, right? So we documented all the reasons for the churn, and I just started having a conversation with with ChatGPT, right? Right, you know, right as it came out at the end of last year. And I was like, hey, here's our reasons for our churn, here's our product, here's a description, uh, here's a copy from the website, here's what we're trying to get accomplished. Uh, you know, assume that you're a startup product expert that knows how to reduce churn and create products that people love, you know, give me 10 ideas of how we can improve our churn. And so that, you know, through that process and some back and forth, we realized something that was like sitting right in front of our face, but that we weren't quite recognizing on our own. But we did through this interaction with ChatGPT was that hey, launching an email newsletter is is pretty complex. You know, there's a lot of like micro decisions you have to make, you know, and in product management, the more decisions you ask a user to make, the more you're inviting them to abandon you. So we said, great. So we just reframed the whole thing as a done-for you offer. They fall out of survey, they get on a phone call, and then and then our product still is doing everything in the background. But then we, you know, we had started first we had some humans doing stuff, and then we privatized that. So we we made it seem very hands-off, and it is for the end customer perspective, and that took all the fear away from using the product. And yeah, we did that's a pretty big product strategy change for us. Um, and there's a handful of other things we did, like we moved from month to month annual agreements, we changed our ICP, our ideal customer profile to go upmarket a little bit. And that was all uh discovered through this interaction with with uh uh Chat GPT and conversational AI.

SPEAKER_01

That's incredible. I I are you at the point to Where you're interacting with GPT or whatever model you're using on a daily basis?

SPEAKER_00

Oh yeah. Yeah. I mean, I'll be in the middle of, I mean, full transparency, I don't do that many sales calls anymore because we've really scaled our team. But um, you know, we have

AI in Daily Interactions

SPEAKER_00

we don't have a sales script, we have a sales methodology that we follow. It's a kind of a customer-centered methodology called gap selling. And when I'm on a call with somebody, ultimately I'm trying to make sure that I'm helping them make the best decision for them. I'm not there to hard sell them or you know, so I I use it in sales calls. So I'll I'll ask, I'll ask you, Chris, questions. And as you're answering those questions, I'll feed answers into chat GPT and I have a predetermined script to try to figure out like what are your gaps, what are your beliefs, what what are maybe what are maybe your unconscious fears I need to bring to light in the call so you're making the best decision for you. And so I'm and I'm just typing these, I have copy paste things that we just pump in there. And I just made that because it helps me think faster. Now, sometimes it'll give me back a result and I'm on a call and uh I don't agree with it. That's fine. I still use my intuition, you know, that's why I'm a CEO slash sales professional slash entrepreneur. Um, because again, that's AI is a good intern. I want to make sure that I'm using what I know is best as the final uh arbiter, sort of the final arbiter of what goes out the door. But you know, and I've done enough sales calls where I can stay fully present in a call and take notes. The only difference is now I'm taking notes in Chat GPT and getting a little bit of feedback so that if like I need to get a distinction that's gonna help me better communicate with you, then I can get that, you know. But we use it in everything. I use it, you know, meetings and calls, coaching my staff, sales calls. I'm c I'm, you know, my my I'd be lucky if a few hours goes by where I'm not using it.

SPEAKER_01

Yeah, about the same. So this is an interesting uh scenario. I'm not a sales guy, but I am about 12 months behind where you were this time last year, launching with chief AI officer. And my intention, like you did, is to take those initial sales consultations, right? Because you understand who you're servicing a lot better if you, the visionary, are actually interacting with them. I don't I don't consider myself a salesperson. I'm able to just speak frankly with people and and honestly, I think, and that's that's my method. However, that's a skill that I would want to improve if I'm gonna be on the phone a lot more. Never heard of gap selling in my life, but I know that if I went to GPT and said exactly what I just hell, took the transcript from that little snippet of this interview, uploaded it and said, Teach me about, you know, what do I need to know to be what's the 80-20 on gap selling? Like that, the very next call, five minutes away, I could be leveraging a skill set that uh, you know, without that, I would read books, listen to podcasts, audio books, all that stuff. And instantly I now have access to some of the best practice from any method like that. That's a great idea.

SPEAKER_00

100%. And by the way, just to just to double click on that, maybe maybe someone's listening to this are not, they'll consider themselves a sales professional or whatever, they're not in sales. Um, what what sales has kind of a weird stigma around it in Western culture, uh, probably because a lot of people have abused it. But I think the best sales professionals in the world are really great at one thing in particular, that's active listening. So, like you could literally just ignore everything we just said about selling and go, you know, hey, ChatGPT, tell me what what is active listening? If I'm talking, if I'm coaching a team member or talking to a customer or interviewing somebody or having a conversation with my wife or whatever, here's the scenario, here's kind of what I'd like to get out of it. How can you what are some tips to help me become a better active listener? And just do that. I mean, active listening increases empathy, it helps us relate to each other. It's it's you know, if every human in the world practice that and you know, a high high degree of skill, the world would literally be a better place. So if that's you know, that's something you could do that's universally applicable in almost any human interaction, is just learn to be a better active listener. You don't even have to know what that means. Go into ChatGPT, ask a few questions, and they'll start telling you what it is and how you can apply it in your life.

SPEAKER_01

Let me ask you, do you have children in the house that are old enough to be using the tool?

SPEAKER_00

No, my son is uh almost five years old at the time of this recording. Um, and my daughter is like one and a half.

SPEAKER_01

So would would you, under your um direction teaching them, would you have any issues with your children using it? And at what age would you see that it's kind of off topic, but a lot of business owners have family and they juggle this situation where, you know, I've got I'm married to my business, but I'm also married to my family. And and any and when you introduce the active listening, one of the things you mentioned, it wasn't specifically about business you were talking about and talking to your wife, right? So I'm I'm curious what your position would be on that, because as entrepreneurs, the more time we get back, the better. And if we're only applying these tools in our business environments, we're missing out on some opportunities to leverage it in our personal and family lives.

SPEAKER_00

So yeah. Um I I learned many years ago from you know Jay Abraham that you should get everything you can from everything you've got. And so that's uh try to apply that. You know, if there's a resource I can use to get a better outcome, you know, then I'm gonna take try to take advantage of that. And so I would extend that same set of thinking to my kids

AI in Personal and Family Life

SPEAKER_00

naturally. Um so yeah, absolutely. I think I think AI can be a powerful uh component. It's not, it's not, you know, with with taking care of kids and educating your children, I it's my belief that there's no one solution. Like, oh, I just send my kids to school and let them deal with it or whatever. You know, it's there's many, many, many components. And I think that uh I think AI will certainly be a tremendous component in that example, right? And and and so yeah, I think that um using generative AI or really any kind of AI to get an advantage in terms of getting up your learning curve, uh, do it. And I think what's really powerful about generative AI and the intersection of that, and let's say learning, especially for children, is you know, our education model today, God bless it, love it or hate it, this is an endorsement for or an indictment of, is pretty one size fits all, right? And so, like with AI, we can we can personalize the whole experience. So it seems fairly obvious to me that at some point there'll be an AI tutor that will that will watch what Chris did in his pee wee football game and then relate that back to helping him understand algebra, right? Because it's very personal to you. You can build, you know, build on, build on the things you're already doing in your life by watching your Pee-We football YouTube video and then going, hey, you know how and then making a real life example that's meaningful to you, right? As as you know, Chris's personality, and and imagine inside of that opportunity, which it to me it just seems like one of those things that's going to be inevitable, you know, it doesn't matter if you have dyslexia or a learning challenge, like AI, multimodal AI, meaning like voice, audio, uh, and video, um, along with your physical movement of your body, can cover all the ways that we learn auditory, uh, visual, kinesthetic, or otherwise. So yeah, I'm I'm really excited about that world. In fact, if I wasn't building daily.ai, I'd be building something over there. But yeah, I absolutely I think AI is gonna be like electricity. You know, when's the last time you said, oh man, you know, like uh this yeah, this seems like utility. It's like like it'll just be in anything with electricity will have intelligence inside of it that where it doesn't today. And so for sure AI is gonna impact educating, and for sure I want to make sure my kids have the best, you know, resources to learn on their terms. So uh answer is definitively 100% yes.

SPEAKER_01

So it's obvious that you're a very comfortable user of generative AI. How long was that process of you going, oh, AI, and having this idea of Skynet or the Terminator or whatever? Not the negative side, but like some advanced stuff. How long did it take from you, and I don't know if that was your bias beforehand, but walking in, using the tool to where you had that oh moment? Like how long was that that in uh learning curve?

SPEAKER_00

Oh, like immediately. Like the first time I ever typed something and got a response back, I was like, I just my my entrepreneurial opportunity-seeking brain was like, oh boy,

Rapid Learning Curve with AI

SPEAKER_00

this is this is gonna change everything. Yeah, and thankfully this is like for me, that was back in 2021. So I got a little bit of a head start, but boy, was I like, and I you know, and I'm not, I don't write code. Like I build and sell technology companies, but I don't, I don't write code. Like I took some like web development class in like the 90s, and I was like, oh man, this is definitely not for me, you know. So uh but but I love but but for me, I love I love novelty, I love learning new things, I love I love learning uh how to make things better or more efficient. And so I mean, my god, this is such such a powerful tool. You know, it was powerful then, but even more powerful now, it'll it'll continue to be like that as we progress, you know. So uh for me it was instant man. The minute I used it, it instantaneously thought, wow, look at the power of this thing. This is gonna change the world.

SPEAKER_01

Nice. So with your team, um the let's say the Filipino outsourcers, I I would imagine if you're outsourced, especially if you're offshore outsourced and doing it to feed your family, you're probably using the tool a little bit, right? To help write the upwork reply or something like that. As you're bringing them on, uh it's a 21-day process, which is pretty incredible for you to feel comfortable enough for them to be capable of filling that service, that particular part of their contribution to your service to the to the clients. And I I know you hold very high standards. Are there is is there hesitancy, resistance, is there or or are they having that almost immediate oh moment?

SPEAKER_00

Um I think it's on a person-by-person basis, but we try to make it so simple that um, you know, like my 76-year-old mother would be like, oh, I understand how this is pretty straightforward, you know. Um someone that, you know, there's this model that's you know, the diffusion of technology, the innovation of technology. You've got, you know, early adopters, um, late adopters, laggards, etc. So we we try to say, how can we make an onboarding experience or learning experience where a laggard, you know, someone that might still love their rotary telephone or whatever, be able to jump in here and and get good value and use out of it in a way that's not super intimidating. So we we kind of start from there. We have a couple other things working for us, you know. We're we're completely virtual company, everybody's virtual and all around the world, you know, uh Brazil, uh Spain, US, Philippines, and there's a lot, like I think like six to seven different countries, Armenia, like lots of different people are working full-time for us. Um even our co-founders are all in different places, and so that virtual first culture also makes it super easy. So, like if you have like a whole team of like people in an office and you have people working in the Philippines, it's easy to be like, oh, well, that's the kind of offshore resources. Like from every perspective, everyone is offshore in our business. Like we're just a big virtual team, so that also helps, right?

SPEAKER_01

Yeah.

SPEAKER_00

Um, but yeah, but I but generally speaking, um, we have a lot of experience with that rapid scale piece, and we try and bring that to bear here, whether you're learning generative AI or we're trying to, you know, game you up on a methodology or HubSpot. So we we you know we've thought a lot about how do we you know allow people to learn quickly and to be ramped up effectively. Because you think about you're hiring a new staff member, most people don't have an architected onboarding experience, they're not measuring the progress of those individuals. They don't have clear KPIs that allow you to say, hey, I need to jump in and help this person because they're not getting it, or um, I you know, I don't need to do anything, I need to just pat them on the back or actually let them go. You know, so you have very clear criteria for all that. And it's not because we want to be cutthroat, it's we want people to win. We we know that when your team is intrinsically motivated, they're doing work that's meaningful to them, that matters, it's having an impact. That actually means more than the money. And if they're not doing a good job or they're incapable of doing that job, then I'm actually holding them hostage from really self-actualizing in their work. And so we really don't want to do that with anybody. And also, we don't have the money to spend on that. So, you know, it's it's it's good for the world and good for humans, but it's also profitable to not linger around people that aren't gonna get the job done. So we've really thought about that process. Um, and it's actually not that difficult, you know. You just make criteria for no go. Yeah, yeah.

SPEAKER_01

So I want to pull on that thread because onboarding is hiring, the whole hiring, firing, replacing, getting somebody back up to proficiency. It's an expensive and and and labor-intense and time-intensive uh traditionally process. What you're doing, taking somebody who's never heard of your company before, who English isn't their their first line, and I know it's the language of business there, but like all of the time zone difference, them having to work on, you know, over the graveyard shift over in the Philippines. We most most small business owners that are listening to this, if they have a physical location, they're not dealing with those constraints or those hurdles that they have to jump. And I would like for you, were were you involved in the the architecture of that onboarding program?

SPEAKER_00

Oh yeah, absolutely. Because it's it's the same whether it's uh $250,000 your engineer or it's uh someone, you know, from uh the Philippines or or sales professional. The architecture is the same, right? We want to have what that is, yeah. Yeah. So from you know, we just first of all, you want to just think about it from a process, input, process, output. You have the inputs are like, you know, people and uh signed uh employment letter or offer letter or contract or whatever the case is. And then you have an onboarding process and you have I have clear definition of what's the output. The output should be, you know, a job, a person's uh functioning proficiently or above proficiency according to measurable criteria. So before I even make the process in the middle, I know what's coming in, I know what's coming out. So if something's broken, I either need to change the inputs or change the process. I my standard is gonna be the same. Most people don't have a standard, so that's like step zero is like, what's the definition of success? Think with the end in mind, what's the outcome you're trying to accomplish here? And then I like to say, what's someone that's really crushing it and exceeding my expectations? What's somebody that's right there at my expectations, and what's likely to happen if they're not meeting my expectations, and how would I know that? So then I know in advance when I'm gonna assess them, it's fairly objective. It's not just how I feel, it's like, hey, were you able to get through this kind of work and get this kind of output? And so then what we do is uh, you know, we have this whole process, but what we do is we instrument what we call leading indicators, right? So we want to know uh early if somebody's struggling, not later, right? There's a kind of a delayed reaction in some of these things. So we try to architect their experience to be really straightforward. It's like, okay, very, very quick in the process, I need you to be able to do X. Here's an SOP on how to do X, here's a Loom video that accompanies that. Please do X, and then I'm gonna review that output. We actually do a bit of that in the interviewing, and then we just we just build on that as they start to onboard. But the first thing you want when someone comes in is you've got to give them resources, give them access to all your tools. You know, it's boring, but do they have access to Slack? Do they have access to uh whatever Google and all the tools are product? Like this, so there's a list of everything they need access to and people responsible for giving them that access. Okay, fantastic. Now they need to be trained. What does that look like? Do they get on a Zoom call with you and you train each one personally? Do they watch previous recordings? Have you made like a video recording of what of their expectations? You know, they gotta kind of get oriented and acclimated to your world. And so we have taken them through that experience. Um, and then from there, it really bifurcates depending on the job, but we start to get them in doing the work as fast as possible. Because if we're trying to train them and so they can learn, the way that we see the world is that learning is evidenced by behavior change. So we want them to do stuff as fast as possible, get out of their head and get into action and see if it's translating, and then start to calibrate it. So again, and so if it's an engineer, that might be a low-level coding project and looking at their quality of code. Does it have bugs? Did it merge well? Do they follow the rules? You know, if it's a you know, someone that's helping us with uh administrative tasks, it's like, okay, cool, like did you follow the SOP? Were you able to pay attention to detail, uh, et cetera? You know, and then we like I said, we have this vision of like what does exceeding expectations look like? Well, exceeding expectations look like, hey, you can do the job, do proficiently, do it on time, get the results that we're looking for. And because we're a small organization, you come back with three, four, five ideas like, hey, Chris, I just did this, I think we could improve it these three ways. Can I try this the next time I do it? And if it works, I'll update the SOP. So I'm being very proactive. That's that's a growth-minded person that really wants to make improvements. So that that's that's the kind of people that we want to hang on to for the long run. That's kind of what we're looking for. And I I would recommend in any business, like you want people that are thinking like that. So that that's that's like a big picture. I could go into even more detail, but we try to set very specific dates and gates 30, 60, 90 day reviews. Um, everybody is brought on contingent upon getting through the first 90 days, whether you're, you know, like I said, a quarter million dollar year engineer or our product manager or anybody in the business. That way, at 90 days, we just want to have a look in the mirror and say, hey, or maybe they have a look in the mirror and we have a look in into their eyes, each other, and say, is this working? You know, and how do we objectively know that? And then if it works, then we have a set of incentives for them to stick around and continue uh doing great work.

SPEAKER_01

So this is an interesting case study because uh as an entrepreneur, there's been times in my career where I've had to wear a lot of the hats, right? And this entire process that you talked about could be an interesting uh example use case for a listener to attempt. If you don't have an onboarding program now that can get somebody up to speed at a level of proficiency or higher within, you know, two to four weeks, if it's taking much longer, this would be a great opportunity to use Chat GPT, Claude, Bard Bing, whatever you wanted to use, and just play with it and see what you come up with. And I guarantee within a few minutes, you'll have a much clearer uh path forward than you had prior to sitting down with the models. So thank you so much. I know that you're spending time with your family, you're working, but you're spending time with your family and that sort of thing. And I really appreciate you taking the time to do this. And it this uh conversation uh further confirms that it's no mystery why you've had the amount of success you've had in business. You're high EQ, high IQ. Um,

Harnessing AI for Proficiency

SPEAKER_01

and that's not a combination that you normally see in high achievers. So I want to thank you for being on the show again. And um, is there a particular URL that people might want to go to to find out more about daily.ai?

SPEAKER_00

Yeah, you can go to www.daily.ai, learn more. Um also, we're launching a whole new content series um in January around AI, where AI meets you know, business, marketing, growth, and influence on my Instagram channel. And uh that's Joe Stolty Live. If you just Google my name, you should see the Instagram page pop up. Um, so if you're into that, we'll just be trying to serve everybody with uh more information around that and happy to share it. And thanks for the kind words and thanks for having me, man. This has been great.

SPEAKER_01

Uh the no hesitation at all with those. Um, you'll be gaining a new follower soon. So, everybody, thank you so much for tuning in. You know how to reach Joe and uh have fun with GPT or BARD or whatever your model is. Thanks for tuning in to using AI at work. Don't forget to subscribe for more conversations about how to use AI at work. Thank you to our sponsors, AI officers for empowering businesses with AI training, visit their website for free AI radio and AI AI for using AI at work. Thanks to our producer for making this episode. Follow us on Twitter at hand using AI at work and visit www.usingai at work.com for free resources to help you harness AI in your role.