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 on LinkedIn

Follow Michael Walker 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