The Value Creators Podcast Episode #50. Creating Value With AI Agents with Michael Walker

We are about to enter the era of AI agents, and learning about them and deploying them is relevant to every business. What are they? How can a business develop one? How can a business successfully deploy one? How can a business develop a team of AI agents to work together to automate processes? How will these AI agents create value for customers?

In this episode of the Value Creators Podcast, Hunter Hastings gets answers to these questions from  Michael Walker of SmythOS. Michael is the right expert to learn from because he prioritizes customer-centricity in AI solutions. Michael believes that businesses should put customer needs and benefits first, before technology features. That’s the Value Creators mindset, and it helps businesses to avoid the common pitfall in tech-first startups where excessive focus on features can obscure the value for end-users. According to Michael, this focus on customer problems is foundational, and AI deployment should primarily aid in addressing customer needs rather than showcasing technological capabilities.

SmythOS advocates for a future where AI and humans work in synergy to optimize value creation effectiveness.

Resources: 

Connect with Hunter Hastings on LinkedIn

Connect with Michael Walker II on LinkedIn

Follow Michael Walker II on Substack

The Value Creators Online Course

Knowledge Capsule:

Customer-Centric Approach in Technology

  • Michael emphasizes focusing on customer needs and solving real customer problems rather than overemphasizing technology.
  • Importance of “value creation” over “feature selling” to avoid common pitfalls in SaaS and tech startups.
  • Michael’s guiding belief: Success begins with solving customer problems effectively, efficiently, and affordably.

Empathy and AI

  • Hunter mentions that empathy is crucial in understanding customer problems.
  • Michael acknowledges AI’s role in sentiment analysis but asserts that true empathy originates from human insights.
  • AI can mimic empathy through data analysis, yet true emotional understanding remains a human responsibility.

Mainstream Market for AI

  • Michael states that AI is nearing a mass market stage, propelled by tools like ChatGPT.
  • Increased mainstream recognition and use of AI demonstrate its growing integration into society.
  • Potential for AI’s societal impact includes politics and personalized advertising, suggesting pervasive AI influence even in everyday interactions.

Overview of SmythOS and its Founding Vision

  • SmythOS’s mission is to create a platform enabling users to build custom AI agents without complex coding.
  • Origin: Founded by the creators of the AI tool Ink4All, aiming to simplify AI accessibility for individuals and enterprises.
  • Goal: To provide a versatile tool for task automation across various business sizes and needs.

Coordinated AI and Specialized AI Agents

  • SmythOS’s “coordinated AI” model: AI agents each specialized in specific tasks working together for greater efficiency.
  • Drawing an analogy with an assembly line, each AI agent focuses on a specific role, such as SEO or content creation.
  • This approach ensures a highly efficient, consistent, and 24/7 operation, ideal for businesses aiming for automation and precision.

Leverage of AI Agents & Firm Structure:

  • Michael discusses how AI agents can greatly increase productivity without necessarily reducing headcount, leading to higher revenue per employee. The integration of AI means that individual productivity can skyrocket by automating analysis and trend identification tasks, enabling both individuals and organizations to operate more efficiently and steadily.
  • Michael envisions firms having more stable growth due to AI supplementation rather than disruptive workforce reductions or replacements.

Future of SaaS Companies:

  • Hunter raises the question of the potential impact of AI on SaaS and system-of-record companies (like Salesforce and HubSpot). Michael responds that while AI can automate much of the data management traditionally handled by SaaS tools, the tools won’t become obsolete. Instead, they will be enhanced by AI to deliver deeper insights and real-time recommendations based on historical data, making them more powerful rather than redundant.

Role of SmythOS in Client Partnerships:

  • Michael explains that SmythOS can adapt to a client’s needs, either offering a hands-on service where SmythOS designs, builds and manages the AI agents or providing clients with the tools to build and manage agents independently. This flexibility supports both AI-literate clients and those seeking end-to-end AI solutions for complex business challenges.

Redefining Internal Structure with AI:

  • While the traditional company structure may remain, the problem-solving approach within AI is different. AI breaks down problems into components, with each component handled by a corresponding AI function or agent. This modular approach optimizes problem-solving and aligns each step with an AI-driven solution, improving efficiency.

AI as Digital Team Members:

  • Hunter introduces the idea of AI agents as digital team members, and Michael agrees, describing the current functionality of SmythOS’s chat feature. Clients can communicate with AI agents just as they would with human colleagues, creating what Michael calls a “digital dream team” where AI agents complement human roles for a collaborative working environment.

Potential for an AI CEO:

  • When asked if AI could assume the role of CEO, Michael humorously dismisses the idea but acknowledges the possibility of AI agents in various C-suite roles, particularly for data-driven decision-making and trend analysis. However, he notes that the visionary aspect of leadership—setting a shared mission and motivating teams—is an area where human leadership remains essential.

Entrepreneurial Intent:

  • Michael argues that entrepreneurial intent, which reflects a desire to serve the market and help people, is inherently human and should guide the development and application of AI technologies.
  • Align AI with Human Values: Ensure that your AI initiatives align with your organization’s values and mission. Use AI to enhance your ability to serve customers and create value, but keep human intent at the forefront.
  • Focus on Ethical AI: Develop and implement AI technologies that prioritize ethical considerations. Address potential risks and ensure that your AI tools are designed to benefit society as a whole.

Changing Modes of Interaction:

  • As voice recognition and gesture control become more prevalent, the way individuals engage with AI will evolve. 
  • Michael envisions a future where people can seamlessly communicate with AI while going about their daily activities.

Managing AI Risks:

  • Hunter raises concerns about the potential risks associated with AI. 
  • Michael emphasizes the importance of human intent in guiding AI development and suggests that as long as the focus remains on serving human needs and values, the risks can be managed effectively.

Show Notes:

0:00 | Intro
0:30 | Focus on Customer’s 
2:17 | Can AI be Emphatatic?
3:59 | Mainstream Market for AI: Is it Here Yet?
6:47 | SmithOS: Vision and Mission
9:04 | OS: Coordinated AI
11:57 | Solving the Problem of Generating Innovation Idea
15:37 | Can AI Improve the Quality of Technological Investments?
18:01 | AI Boosts Productivity by Optimizing Resource Allocation
19:27 | Michael’s Views on AI: Enabling Smaller, Tech-Driven, Specialized Firms
21:47 | AI May Replace OR Transform SaaS Companies
23:39 | Smith OS: Relationship Between the Owner of the Problem and the Designer of the Solution
25:36 | AI Integration May Eliminate Traditional Company Departmental Silos
28:01 | AI Agents as Team Members
29:30 | AI CEO
31:30 | Hunter’s Contradictory Approach: AI Can Help Us with Vision and Mission
33:41 | Can AI Generate Bold, Unconventional Ideas?
34:34 | Entrepreneurial Intent
36:00 |  Changing Interaction Modes will Transform Technology Perception
39:15 | Potential AI Risks and Concerns
40:54 | Wrap – Up

The Value Creators Podcast Episode #49. Erik Schön On Self Management Amidst Change

Has the pace and volume of change increased in the modern age? Is dealing with change more of a problem for businesses today than in the past? What is the recommended way to manage change?

Erik Schön is a student of ancient philosophy, and he reminds us that the challenges raised by change are ancient, not modern. And the ancients had good ways to deal with them. In this episode of the Value Creators podcast, Erik Schön discusses the genesis of his book, The Art Of Change, the latest of a trilogy of works that include The Art of Strategy and The Art of Leadership. Erik distills highly relevant ancient wisdom, particularly from texts like The I Ching and Lao Tzu’s Tao Te Ching. He builds a modern business application from these classic ideas based on his extensive experience in leadership and strategy.

Resources:

Connect with Hunter Hastings on LinkedIn

The Value Creators on Substack

Connect with Erik Schön on LinkedIn

Get Schön’s book on Amazon: THE ART OF CHANGE: Patterns for Success.

Yokoso Press

Show Notes:

0:00 | Intro
1:20 | The Art of Change: Background
4:34 | Practitioner’s Point of View: Developing a Resilient, Adaptable Mindset
7:53 | Persist with Change through Perseverance
11:29 | Balancing Proactive Action with Patience
14:17 | Finding Balance
15:17 | Erik’s Idea: Is Learning defined as Knowledge Accumulation?
16:06 | Flow of Knowledge and the Flow of Learning
18:24 | Embrace Natural Flow; Avoid Forceful Actions.
19:59 | Balancing of Two Elements at the Same Time
21:59 | Integrity
23:54 | Finding Balance in Flexibility and Integrity
24:36 | Idea of Purpose
27:29 | Integrity and Flexibility Guide Practical Actions
31:04 | Harmony
34:10 | Maintaining Direction Fosters Persistence and Integrity
36:39 | The Subtitle of The Art of Change is Patterns for Success
39:41 | Six Questions in Each Chapter
42:00 | Embracing Change as an Art Form: Left Brain Thinking
45:02 | Wrap – Up

Knowledge Capsule

Erik Schön’s trilogy includes:

  • The Art of Strategy (inspired by Sun Tzu’s The Art of War)
  • The Art of Leadership (inspired by Lao Tzu’s Tao Te Ching)
  • The Art of Change (inspired by the I Ching)

The sub-title of The Art Of Change is “Patterns For Success”.

  • Patterns emerge from complex adaptive systems; they are not always predictable but form as individuals interact with their environment.
  • “The Art of Change” book presents these patterns as 64 chapters, offering timeless insights that guide users based on specific challenges or goals.
  • Each chapter contains six questions aimed at prompting reflection and offering multiple perspectives for addressing current challenges, such as teamwork.

Using Patterns to Address Teamwork

  • Six guiding questions for teamwork include aligning collaboration approaches, matching skills with needs, and fostering feedback, integrity, and support.
  • These questions are designed to deepen understanding and provide actionable insights for collaborative effectiveness.

The Concept of Art in Change, Strategy, and Leadership

  • Viewing leadership and change as an art emphasizes balance between structure and creativity, blending practical wisdom with structured approaches.
  • The term “art” contrasts with rigid, formulaic methods and encourages adaptive, context-sensitive responses.

Erik’s aim in The Art Of Change is to offer a practitioner’s perspective, using first principles from ancient times to address modern leadership, strategy, and change.

Are we experiencing an increasing rate and amplitude of change in today’s world? It’s a concern that has persisted throughout history. Erik argues that change has always been a part of human existence and draws parallels to ancient times in China, emphasizing that despite turbulent conditions, people found ways to thrive.

They did so with the right mindset that prepared them for a full range of changes. Erik introduces the idea of balancing expectations with surprises in order to maintain flexibility in decision-making. He advises minimizing expectations to avoid being caught off guard and to stay present in the moment.

Erik Schön explores the concept of balance through the lenses of integrity, flexibility, purpose, capability, competition, collaboration, and harmony, drawing insights from the I Ching.

  • Integrity and Flexibility: Schön describes integrity as a combination of heart, mind, and gut feelings, and walking a straight path while maintaining flexibility in different contexts. The balance between integrity and flexibility is crucial, as one must adapt while remaining true to oneself.
  • Purpose: Schön explains that purpose, represented in I Ching, can be both individual and collective. It involves guiding one’s life and actions (or a group’s) like directing a river to prevent flooding, signifying the importance of having direction in fulfilling personal and organizational goals.
  • Capabilities and Competition: Capabilities refer to the ability to meet stakeholders’ needs. Rather than focusing on competition as winning, Schön advocates for a perspective of collective success, emphasizing collaboration to achieve shared purposes. This view aligns with I Ching’s principles, which stress teamwork as essential for survival and thriving.
  • Harmony: Harmony is likened to music, where individual elements (or team members) come together to create a coherent whole without losing their distinct qualities. Schön uses a culinary metaphor to illustrate this, where diverse ingredients enhance each other’s flavors, underscoring the value of coordination and diversity within unity.

Eric encourages embracing both practical strategies and the artistic elements of change for personal and organizational development.

Understanding Change and the Role of Mindset:

  • Schön advocates for a mindset that expects both the expected and the surprising elements of change, as this balance prepares leaders to adapt flexibly.
  • He uses the concept of approaching situations without rigid expectations, which helps reduce surprises and enables practitioners to remain adaptable and in the present moment.
  • By staying present, individuals can better navigate change, manage expectations, and avoid being overwhelmed by unexpected challenges.

Perseverance and Balance in the Face of Change:

  • Perseverance is illustrated through mythical stories such as the carp, symbolizing persistence by overcoming challenges to transform into a dragon, the ultimate shapeshifter.
  • Schön highlights the importance of balancing action with patience, drawing from I Ching‘s principle of “timely balance” to decide when to act or wait.
  • This balance—knowing when to push forward and when to observe and adapt—enables leaders to remain resilient and responsive to the dynamics of change.

Balancing Patience and Action

  • Embracing both patience and action simultaneously allows for adaptable and mindful decision-making.
  • Achieving a mindset that can “hold two thoughts at once” is key to navigating complex situations.

Integrity in Yijing Philosophy

  • In Yijing, integrity is depicted as “walking straight, following your heart and mind,” symbolizing alignment between one’s gut, emotions, and intellect.
  • The Chinese character for integrity combines symbols representing heart, mind, and action, conveying a comprehensive approach to personal alignment.

Flexibility as Complementary to Integrity

  • Flexibility involves staying open to possibilities and adapting to each moment while maintaining one’s core integrity.
  • True balance is found by discerning when to uphold integrity and when to adapt, avoiding over-flexibility that can compromise values.

Continuous Journey of Balance

  • The balance between flexibility and integrity is a journey rather than a fixed destination, continually influenced by context.
  • Erik describes this adaptability as the “art of being human,” a practice of responding thoughtfully to the people and situations of each moment.

Purpose in I Ching and Business

  • I Ching views purpose as both a personal direction and a guiding force for teams or organizations, similar to the concept of the Tao (The Way).
  • The Chinese character for purpose is illustrated by a moving foot and head, symbolizing purposeful direction in life or leadership in teams, and even society.
  • Purpose in I Ching is also metaphorically represented by guiding a river to prevent flooding, highlighting purpose as a force that shapes and controls the flow of actions.

Ancient Principles in Modern Context

  • Terms like purpose, integrity, and flexibility, though perceived as “soft” concepts, are vital operating principles, as seen in organizations like the US Marines.
  • These principles bridge ancient wisdom with present-day needs, reminding that humanity’s fundamental values have remained consistent across time.

Capabilities and Competition in I Ching

  • I Ching emphasizes building capabilities to meet stakeholder needs, aligning with business goals to serve customers and colleagues effectively.
  • Competition is reframed as a path to success, achieved by fulfilling one’s purpose alongside stakeholders rather than purely defeating competitors.
  • Collaboration takes precedence in the I Ching philosophy, emphasizing teamwork as essential for achieving shared goals, mirroring societal reliance on cooperation for survival in historical agricultural communities.

The Concept of Harmony

  • Harmony is illustrated with musical and culinary metaphors, where diverse elements (like notes or ingredients) complement each other without losing individual qualities.
  • The Chinese character for harmony combines rice and mouth, symbolizing the blend of unique contributions into a cohesive whole, promoting unity of purpose.
  • Harmony is key in team settings, encouraging diversity in roles (e.g., team members with different skills in a sports team) while aiming for alignment and coherence.

Direction and Persistence

  • Direction is a central theme in I Ching, encouraging individuals and organizations to maintain their path and purpose, even when obstacles arise.
  • Persistence, reinforced by a clear direction, allows flexibility to adapt while staying true to core values, fostering long-term balance and integrity.

Direction and Purpose in Leadership

  • Emphasizing a clear direction and a purposeful “north star” helps guide organizations and teams toward meaningful goals.
  • The purpose may evolve, but the consistent movement toward it creates learning opportunities and prevents stagnation.
  • Even without a precise destination, moving towards purpose allows teams to adapt and adjust direction as needed.

Patterns for Change and Success

  • Patterns emerge from complex adaptive systems; they are not always predictable but form as individuals interact with their environment.
  • “The Art of Change” book presents these patterns as 64 chapters, offering timeless insights that guide users based on specific challenges or goals.
  • Each chapter contains six questions aimed at prompting reflection and offering multiple perspectives for addressing current challenges, such as teamwork.

Using Patterns to Address Teamwork

  • Six guiding questions for teamwork include aligning collaboration approaches, matching skills with needs, and fostering feedback, integrity, and support.
  • These questions are designed to deepen understanding and provide actionable insights for collaborative effectiveness.

The Concept of Art in Change, Strategy, and Leadership

  • Viewing leadership and change as an art emphasizes balance between structure and creativity, blending practical wisdom with structured approaches.
  • The term “art” contrasts with rigid, formulaic methods and encourages adaptive, context-sensitive responses.

The Value Creators Episode #48. New Access to Capital for Entrepreneurs with Brian Hollins

Brian Hollins is the founder and managing partner at Collide Capital, the Founder and CEO of Takeoff Institute, and aFounding Board Member at BLCKVC. He’s devoted his career to addressing and solving the challenges entrepreneurs face in accessing capital when they’re not plugged in to elite VC networks and funding sources. Brian shares insights from his venture, Collide Capital, which provides investment, coaching, and support to entrepreneurs lacking access to traditional networks.

The conversation highlights the importance of community, mentoring and education in empowering these entrepreneurs. Brian also discusses his involvement with the Takeoff Institute, which aims to develop future leaders. The episode underscores the critical role for entrepreneurship in value creation. Entrepreneurs develop better products and services and contribute to meaningful experiences for customers. Institutional support, such as venture capital, is essential. 

Yet, only some have access to these resources, particularly those from disadvantaged backgrounds who may not be plugged into the institutional environment of university incubators and venture capital pools.

Key Challenges Discussed:

  • Lack of access to networks: Many aspiring entrepreneurs from underprivileged backgrounds may feel disconnected from the networks facilitating access to funding and mentorship.
  • Intimidation by networking: Networking can be intimidating, but it is not an insurmountable barrier. With the right coaching and support, disadvantaged entrepreneurs can find their way into these networks.

Brian’s journey serves as an inspiring example of how one can create value not only through business success but also by uplifting others and fostering a culture of entrepreneurship.

https://youtu.be/323Rsw9kQ0s

Resources: 

Connect with Hunter Hastings on LinkedIn

Connect with Brian Hollins on LinkedIn

collidecap.com

Knowledge Capsule:

Entrepreneurship as Value Creation

  • Entrepreneurship creates value by providing better products and services for customers while also offering fulfillment and potential wealth for entrepreneurs.
  • Early-stage startups require investment since costs can outweigh revenues initially, and many entrepreneurs lack access to institutional venture capital.
  • Not all entrepreneurs have access to institutional funding sources like venture capital, especially those not part of exclusive networks like university incubators.

BLCKVC Initiative

  • BLCKVC is an organization aimed at helping people of color access the venture capital ecosystem, guiding them through the fundraising process, and fostering inclusion.
  • Minority founders face challenges in accessing venture capital. Institutions traditionally overlook minority founders,, but with proven success, capital flows to diverse ecosystems will increase, promoting diversification in investment portfolios.

Networking Challenges for Entrepreneurs

  • Many entrepreneurs feel disadvantaged because they are not part of established venture capital networks. 
  • Brian acknowledges this is a real challenge but believes it can be overcome.
  • Venture capital firms tend to rely on pattern recognition, favoring entrepreneurs and business models that fit past successful archetypes, often making it harder for those outside traditional networks.

Introduction to Collide Capital and Its Focus:

  • Collide Capital is a venture capital firm focused on providing investment opportunities to entrepreneurs who historically lacked access to such resources.
  • The firm emphasizes identifying and supporting underrepresented founders and entrepreneurs.

Barriers for Entrepreneurs:

  • The common barriers entrepreneurs face, particularly those from marginalized or underrepresented groups include a lack of access to networks, mentorship, financial resources, and knowledge about scaling businesses.
  • Businesses can now generate substantial revenue with fewer resources and less bureaucracy by automating processes, reducing overhead, and leveraging technology.

Impact of Mentorship and Coaching on Entrepreneurship:

  • The role of mentorship, support, and coaching in the success of businesses, particularly startups.
  • The importance of guidance, beyond just financial investment, in helping entrepreneurs navigate challenges, avoid common pitfalls, and grow their ventures sustainably.

Deinstitutionalization of Finance Through Technology

  • Fintech, blockchain, and other technological innovations can potentially reduce the need for traditional financial institutions. 
  • In this vision, financing could become decentralized, with direct access to capital through apps, lowering entry barriers for entrepreneurs.
  • Technology, especially the internet and online platforms, provides access to information and opportunities that were previously unavailable. 
  • This democratization allows people from diverse backgrounds to gain knowledge and build businesses that would have otherwise been out of reach.

Entrepreneurial AI as a Thought Experiment

  • This concept envisions AI handling the operational aspects of entrepreneurship, from supply chain management to fundraising. Although it’s speculative, this thought experiment explores the possibility of AI supporting entrepreneurs in scaling their businesses with fewer resources.
  • While AI can assist in various tasks, it still requires human guidance. Entrepreneurs need to have experience or knowledge to instruct AI effectively, suggesting that AI alone cannot replace the expertise needed to scale a business successfully.

Takeoff Institute and Building Black Leaders of Tomorrow

  • The Takeoff Institute is an initiative that provides black undergraduates with training, mentorship, and exposure to professional environments. 
  • The program aims to equip them with essential skills like cold emailing, managing up, and technical expertise, helping them break into elite roles in finance, consulting, and other industries. 
  • It also addresses the lack of diversity in high-level corporate positions by connecting students with successful black professionals.

Show Notes:

0:00 | Intro
1:05 | Differential Access
4:53 |  Disadvantaged Entrepreneurs: How do they Get Started?
7:14 | Is Networking a Baseless Fear? 
10:01 | Unique Business Models from Lived Experience 
12:10 | Less Algorithmic, More Empathetic Approach
13:49 | Fund Zero: Collide Capital’s Stoy
15:28 | What is a Scout Check?
18:01| Collide Capital Investment’s Success Stories
21:45 | Better Entrepreneurial Culture: Raising the Community 
24:40 | Education’s Role in Entrepreneurship
28:21 | Fellowship Language
28:58 | Future Access to Investment
32:00 | Technology’s Role in Entrepreneurship: Can Finance Become Less Institutionalized through Apps?
34:55 | AI as an Entrepreneur’s Operating System 
38:00 | One-Person Billion-Dollar Company: Building Bigger Businesses with Fewer Resources
39:30 | Wrap-Up: Building Leaders through the Takeoff Institute