Despite massive AI hype and investments (e.g., Anthropic's $30B revenue growth), actual AI adoption in businesses remains critically low at around 5-8%, creating a significant opportunity for early adopters. Service-based businesses that implement AI properly can achieve 10x productivity improvements by replacing traditional operational complexity with AI-enabled workflows, while those that don't risk being disrupted by AI-native competitors who operate with greater efficiency from day one.
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Elon's $5 Billion Deal With An "Evil" AI CompanyAdded:
Alhamdulillah.
Guys, welcome back to another episode of the Cave podcast. Inshall. Today we're going to be discussing AI. We have someone that's flown all the way over from the United States of America over to the UAE to uh be a panelist inshallah for the next few episodes to discuss some of the very very important implications that AI is bringing about for business owners. Now just to give you a background into brother Jihad here he's consulted for multiple Y combinator startups. He's one of the official consultants um on their on their vendor list. You've also consulted Alphabet Y >> which is a company that owns Google and you worked um at Amazon as well >> engineer engineering manager the whole >> the whole thing >> whole gambit. Yeah. And what Jihad currently does is that he brings his AI expertise to businesses that are service based businesses that are heavily dependent on human resources and human capital. And he operation operationalizes them so they function like SAS businesses. So you can now scale service based businesses, agency, so on and so forth the way that you would scale a software with the benefit of AI. Alam Beric and you're good at what you do. He was telling me he's never ever ever lost a client in his life.
>> In fact, he sacked a client once and pretty much I would say close to 100% of all of your clients have come from referrals.
>> Yeah. A lot of them are just like I need you to I need you to work with my friend. I need you to work my colleagues. You know, getting uh you know, part of venture portfolios as well is them saying that hey, you worked with one of our portfolio. I need I need you to I need you ASAP on this other guy.
So, alhamdulillah, it's been it's been a great journey.
>> So, a great shift that he's done, I think, and is a huge service for us is that he was focusing on bringing his AI knowledge to other technology businesses.
>> But he realized those guys have that background.
>> He's going to bring his AI expertise and knowledge to guys that do not have technology backgrounds. So, I think that would very much benefit our audience. Of course, we have Ibrahim to my right. How you doing?
>> Good. Alhamdulillah. As far as you're concerned, you saw him last week, but I haven't seen him for like two weeks probably. and we have Samdulah.
>> Dave, there's been a lot of developments right now. I want to start off by talking about um the most recent deal that Elon Musk has signed with um with Anthropic.
>> Anthropic. Yep.
>> So, this is interesting, right? Because Anthropic had a big deal with the Pentagon.
>> They lost that now for apparent moral, you know, >> right?
>> Reasons.
>> Mhm.
>> And Sam came with open AI.
>> That kind of >> with open arms. with open arms, right?
With open arms.
>> But I would have I would I thought initially he's going to put anthropic in a disadvantageous position, >> but now you got Elon Musk who's now had facilitating his data centers now if I'm not mistaken.
>> Yeah. Yeah. Yeah. So, you know, Elon Musk owns his own AI company too. It's called X AI, right?
>> And so he had all these uh you know, servers and compute capacity supercomputers, right? on standby because you know XAI is not as big as you know Claude or uh OpenAI.
>> So he already had them there.
>> So he already had them there, right? And so this is in contrast to the problem Anthropic is having which is they went from 9 billion to about $30 billion in the last 3 months.
>> So I want to take some steps back just so everyone follows, right?
>> So why is compute an issue here?
>> Yeah. I mean look >> and what does that have to do with the money?
>> Yeah. Yeah. Yeah. So uh look when we look at globally right the amount of capacity needed to run these models at scale it's massive massive like entire server farms there's about half a trillion dollars of investment right now between all the mega AI uh companies right now to just increase compute. So compute is like let's say the oil that like allows these AI engines to run.
Mhm.
>> Uh so if you cannot uh if you don't have enough fuel, you're you're not going to be able to keep up with demand. If demand is not met, they will just go over to a competitor.
>> So it's a hardware issue.
>> So yeah, you could call it like a hardware limitation, right? Being able to skip.
>> So whatever computing power or resources Anthropic had, it basically used >> it was not enough. And you know what? I don't blame them. To go from 9 billion to $30 billion in 3 months is historic.
It's never been done before.
>> In revenue, you mean?
>> Uh in revenue run rate. Yeah.
>> Uh it's never been done before. And you know, there's so much more I could say about it, but just the growth is astronomical. They hit their year goal, their 2026 goal in the first quarter. So I I just want to put it into context like was that mainly because of cloud code cloud code cloud design they've been coming out with new tools every every week now right and this is part of the reason why they've been growing so fast is they're just at a scale now that's uh uh truly impressive uh for for the company and so yeah the thing is they don't have enough compute like literally they're having outages every other week and so they made this deal with ironically I say ironically with Elon Musk Because Elon Musk is on record saying Anthropic is a evil company.
>> Really?
>> Yeah. There there's there's like I mean look Elon is also biased. Why? Because he owns his own AI company. Obviously he's not going to be like Ananthropic is doing really good, right? Uh but now uh you know for mutual benefit obviously as capitalism works uh always ready to compromise there. uh they uh Anthropic has 5 billion uh a contract with XAI for $5 billion a year to use their compute and to scale up demand. Uh what it really outlines is that like one growth is massive in uh usage in actual revenue. I'm not talking about speculation. I'm not talking about valuations. I'm not I'm talking about actual cash collected revenue. They're growing a cloud is growing at a rate unseen with any other company. Okay.
Question. So, OpenAI, >> they use Microsoft's data centers, correct?
>> Yeah, they're using a lot of Azure uh servers right now. Yep.
>> And I heard that they were basically um they're not able to afford the rent or or something along those those lines.
>> Also, what is uh OpenAI's uh reoccurring revenue right now?
>> So, >> sorry, >> the exact number I have to check back on.
>> Is it 30 billion, less more? It's uh less than 30 billion for sure. Yeah, they're not as pro. I mean uh >> the reoccurring revenue not >> Yeah, the reoccurring revenue I think they're sitting around 16 to 17 billion and >> almost double the reoccurring >> revenue. Yeah. And >> so reoccurring revenue 30 billion.
>> Yeah, that was reported >> 30 billion reoccurring >> reoccurring revenue.
>> Oh wow.
>> Annually reported at the end of Q1 of this year.
So it was massive.
>> Hello. Hey, hey, hey guys, let me tell you about AI. Now, I'm not a technical guy at all, but guess what? I'm making money through AI with Allah's permission. So, if I can do it, then you can, too. Because I'm the kind of guy that's like, "Hey, why is the computer off?" And it's because it's not plugged in. But with that said, by Allah's permission, they're making money through AI. Now, I used to hear people always say AI helps you save money. AI helps you, you know, save time, make more money. But I didn't know how because just like you most likely my relationship with chat GPT was a Google search engine type of relationship. That was the extent to which it would go until I met a brother called Jihad Jiadbal. He is the founder of Liberate Labs. He is a consultant for Y Combinator startups. He has consulted for Google and worked for Amazon. And now he helps service-based business owners become AI savvy. In simple terms, he will bring AI systems into your business that are custom specific to you and he will help you save money and make more money. He's done it for us and he's doing it he's doing it for us and he's doing it for others inside of our network of high net worth entrepreneurs and investors and like I said he's doing it for 50 clients currently. So, if you want to know about how you can bring AI into your business, start saving money and making money and overcoming those inconsistent human dependencies that are so annoying, then book a link below with our brother because this is the top 1% of the online AI space. He's in the top 1% of the AI space, probably top 0.01% of Muslim AI space. Back your brothers link below. Let's go.
>> What book are you currently reading?
I am currently reading three books. I'll tell you one of them.
Spin selling.
>> One line from this book. You were to give it to someone give it to straight away.
>> Most people who do sales, they ask a lot of problem questions. They think, hey, just by identifying the pain, I'm going to make money. But actually uh the the the the things that close the biggest deals are agitating the pain by asking implications of those problems. So when you can implicate the problem and quantify it, that's most likely to close the deal. And I know people do that, but they ask like one or two really should ask like 10 to 12. The more implication questions you ask when you agitate the pain from 12 different angles, he starts crying. He wants to give me money.
But look at look at the crazy situation.
So that's how much is reoccurring revenue, right? But how much are they spending? How much do they spend?
>> That's a good question, right? So, they're they're not I don't believe they're pro I mean, they're not profitable. None of these uh >> they're not break even yet.
>> Yeah, they're not break even. Um they're still raising rounds. So, right now uh you know, Anthropic is raising about $400 million, like half a billion dollars for their next round. Um there's speculation that like they're all going to, you know, do an IPO soon. Open AAI and >> OpenAI is thinking already. Yeah, OpenAI's positioning for it roughly their valuations OpenAI and Anthropic are similar, but I think that's now diverging. You're seeing like clear winners and losers coming out of it. And you know the it's not uncommon to raise these crazy amounts of money even when you're not profitable because that's their model. They're like, "We will be a loss leader as long as it takes to just uh get growth, get traction, get as many users in the in the door, and then once they're locked in, >> we'll figure it out.
>> Start charging, increase the prices, double the prices." What the main thing is like get them locked in. This is the same thing what Uber did, right? Uber was a loss leader for uh insane amount of time.
>> Yeah.
>> They got all the users on the >> was Facebook.
>> Same with Amazon as well.
>> Same thing with Amazon, right? So, this standard technology companies, but but this just seems >> on another level.
>> On another level.
>> Yeah.
>> Uh, >> but what's XAI's plan?
>> It's a good question. I mean, uh, >> cuz he's combining the IPO, right?
Potentially >> with SpaceX, Tesla putting everything together potentially on the IPO.
>> Okay. So, this would increase the value of the >> that's that's that's the word on the street.
>> Yeah. M >> are they are they considered under the same holding and company and that's >> what that's what's uh uh it's not verified of course bro uh but the word on the street is yes >> cuz that's how he's going to make his investors that originally invested in SpaceX profitable >> by combining all of them because I think he raised 20 billion just from private investors private funders so you need to >> the one good thing going for him there would be this to lump in this 5 billion in revenue that's coming from.
>> Correct. Correct. Yes. So, it seems like that's seems like that's the way he's trying to go.
>> So, this should put him right up there with AWS.
>> Not exactly. Because, you know, they're not like uh they're not officially a cloud service. Correct.
>> Uh they're not like when I say cloud service, what I mean they're not like a a cloud infrastructure provider. they just had extra infrastructure that they're renting out to Anthropic, but they're not their business model isn't around that, right? It's simply because XAI is orders of magnitude less. I mean, >> a lot of people just I never even heard of XAI, right?
>> Uh so it's just orders of magnitudes less and they just have the hardware which is Elon's specialty. He he's a hardware guy. He's a he's very much an engineer forward guy and so uh it's just a mutual benefit.
>> So So I have a question. when we hear these things, right? What does that signal for us as business owners? Like what does that signal? What should we expect over the next quarters of this year? Yeah. I mean, I think it's it's good to look at like implications, right? Uh and I'm just presenting facts, right? For 3x increase in cloud usage, right? Just implies AI adoption is growing massively, right? that that's whether it's on the consumer side on the business side more than 50% of all usage of all AI compute is in software engineering >> okay like they call it tokens tokens represents like a unit of usage let's say for AI usage 50% of all AI tokens across all the models across everywhere right >> is just on coding software engineering right uh of using AI >> wow >> um >> so there's second order and third order implications of it. But I think the first fact is AI usage is still increasing. And we talk about a bubble, right? A bubble like all these insane valuations, right? It depends on continued increase of usage of AI.
That's the fundamental and I think everything >> and it's going in the right direction.
>> The indication is that uh to a large degree that to >> but this gives me anxiety. It means just that we just just indicates how essential it is for us to uh get get you know adopt AI in our companies at at the highest possible level.
>> Yeah. I mean there there's anxiety, there's risk, there's opportunity, right? I think whenever there's any like market shift happening, right? I think it's important to take a step back and uh and realize what is the bigger picture of our businesses right uh let's put aside personal for now right that's coming up I believe uh but on a business side if you have a competitor right let's say you're a service based firm or whatnot um and you look at option A you're a legacy company you uh have been in the game for a little while but everything's operational Everything's scale. You have to know you're just stuck in a very operational heavy firefighting mode.
Let's just say that's a the typical service firm, right? And we've all been there.
>> But option B, right, is when you have a newcomer who is like instead of 30 people, it's five people. And these five people are killers. They're they're a players all using AI moving very quickly, right? they are able to deliver a quality of service, disrupt the market in a way that's very difficult for option A to keep up with and that compounds over time the gap. So I guess this is where you come in, right?
Because um people like us, we would really benefit from having someone like you come in as a fractional CTO and then just build these systems and operations out for us.
>> That's that's my positioning. That's that's where I'm like really uh wanting to where where I see the curve like just being in it day in day out. I've worked with 50 plus products and service based companies now and the the trend I see is a specific one which is everyone thinks about AI and a software you know SAS context right >> but where I see the biggest disruption is in service delivery I'm talking about your marketing firms I'm talking about your accounting firms uh lawyers you know uh service providers I I work with HVAC technicians right contractor uh coordination uh the idea is there's so much logistical operational complexity and whenever you have a lot of people and that operational comp complexity is a bottleneck that can be addressed meaningfully with AI >> if done in the right way >> we are at the very very very beginning of that people have not figured out properly AI adoption is still very low >> why it's a new technology it's been only out for a couple years people are not tech fluent right AI literate yet right people are getting there but uh what I'm seeing in the next 5 years is that there will be like a flip where this operational complexity people will figure out how to use these tools people will figure out how to use it reliably and those service based firms that are AI enabled AI optimized will be working 10x better it will become like website right and I think bro and of course you know better than me I don't think even if it's 5 years it's probably it's much sooner so we have a very limited window of opportunity.
>> I'm accounting for human error.
>> Yeah, >> we're literally we have a very limited opportunity to take advantage. It's just going to become like like how you have website uh >> become the new norm.
>> I think people should go to the link below and book a call and uh >> I would say I would dare to say even 12 to 18 month I would say we have a very limited window to take advantage cuz in 12 to 18 month window I think it's very hard for you to be a top 5% user of AI figuring things out. Limited window >> 100%. couple of takes for you bro. Uh so just stepping back I' so entropic and the growth is phenomenal right uh double open AI at the moment in revenue >> roughly. Yeah.
>> Whereas if you just go back 6 months or maybe around maybe even I think 12 months would be too too far back. Maybe just 6 months ago it was not the case.
Yeah.
We all understood Chad GBT and AI to us there's a lot of AI but to us the lay man I'm talking about the the guy I'm in my 40s >> all of us yeah Chad GBT >> we only understood Chad GBT right Iran taught me about CL >> I know and when I started using it I realized that is hard >> so um what Did Claude do different or Anthropic do differently >> versus uh Open AI?
>> Yeah.
>> Uh that caused them to surge ahead.
>> Yeah.
>> And Open AI to now get left behind >> whereas these guys had the first mover advantage.
>> Open AI ch advantage and they've lost that.
>> Yeah.
What do you see as the biggest uh mistake that or or lesson that you could draw out of that? Th this is a fantastic question cuz I think it gets to such a foundation of like where where is behavior changing towards preference of using AI where uh the and a lot of people asked I mean uh yesterday Shikhman was like which model do I use which model I mean there's 10 different models and which model do I use right why did claude differentiate >> did you do a podcast with him in the end >> uh I wasn't able to I had it was unfortunate but I'll catch him in the US in >> um and the internet can fact check me about uh the exact revenue of OpenAI but I believe cloud cloud is significantly ahead um especially in growth and the reason behind it has to do with everything of a term that's become very popular and it's called taste.
Uh have you heard this like term of taste before?
So, uh, it's it's fascinating because taste is like, think of it as having an opinion, right? An opinionated viewpoint of how something should be. Everyone when they use Open AI, they're experiencing Open AI's taste because they're telling the agent to act in a certain way. When they ask you something, answer in this kind of way, right? When you're doing something, I want you to perform in that kind of way.
These are direct instructions that are embedded into not just chat GPT but even uh claude even Gemini all the models have a certain amount of reflection of what the company believes that the user wants uh and will benefit from. Now the reason why it's diverged uh a lot of accounts are saying is that claude is just more helpful. It's less about and it's more opinionated in a way to get you results rather than to make you feel good. They say that chat GPT when you interact with it >> you it'll just say >> agreeable.
>> It's very agreeable.
>> So annoying >> and that is an intentional decision >> by open AI. So you've noticed the shik.
So like they make it so that oh the user always feels smart. The user always like will feel and it feels good for a little while right until you realize it's taking you completely in the wrong direction of that. So why have they not changed it?
>> And you know they fine-tune it a little bit but it's kind of like once you build all these layers and layers it's hard to go back.
>> It's hard to go back. Yeah. Because now to some degree even users are used to it right.
>> So you risk like now alienating some of your uh users.
>> The other point I think you also mentioned is that Saman lost most of his senior team.
>> Yeah.
>> Yes.
>> And that kind of put open air in a crippling situation.
>> The founders of anthropic were previous open brother and sister. Right. Yeah.
>> Really?
>> Yeah.
>> This Dario guy.
>> Yes.
>> Yep. He used to be on the OpenAI team.
>> Interesting. Okay. They lost their CTO and >> their chief AI officer, Ilia, like he and you know >> the skill set uh moved.
>> Yeah. The skill set moved. Yeah. There's I mean they still have some of the best talent in the world, but they don't have the original talent that made it special. I think >> I understand one is opinionated stuff, but >> I'm going to go back to the basics. I'm the basic guy. When I use both tools, I get a forget the opinions and whether Chip agrees with me and Claude doesn't because if I wanted to, I could make Claude agree with me.
But the output if I ask both for a document, >> I get a professionalgrade document >> from crude.
>> From Claude.
>> Yeah.
>> Chad GBT will forget halfway what I even asked for.
>> Yeah.
>> Proper >> Yeah. the the performance >> shockingly it's a bad you know it's it's a a player >> yes >> versus like a C player >> in in in terms of output >> and I I see that primarily for me is why I use claude more now it's a bit slower to act >> charg faster but I get a better result from >> cloud >> clot versus I >> also the connectiv You know, it's connected to my Gmail, to my Google Drive, to my ClickUp, to everything.
>> I'm the dumb guy. I haven't done all >> of it is connected. So, it's connected to like workflows, right? Like work related things like a lot of usage is Yeah. I mean, it's nice to use GPT to figure out, you know, your what are you going to make for dinner, you know, like that's great, right?
>> I use chat GPT as a search engine like on crap. Mhm.
>> It's a great search engine, >> but I don't use it for work.
>> I can't use it for work.
>> Yep. And that's where Claude, I think, has also created a huge gap in is they have specifically, I believe, built all these things, skills, plugins, all these connectors >> and if I'm not a lot of their a lot of their revenue comes from businesses, which obviously pay more >> whereas Chad GB is more just like normal retail guys, not retail, >> right? It's much more of a consumer product you could say, right? where Claude I think has the consumer to a degree >> business >> but it's a lot more business if I were to even like when we do our workshop I'm just going to be like hey like listen there's 10 models ignore nine of them just use cloud like >> but the gap is so wide >> it's been almost uh close to I think two months now they haven't responded to any email through my Gmail always through claude >> really >> cuz it's connected so it knows all the behaviors of my investors the the Google meet transcript of the same guy. So he knows exactly what's happening on a very high level.
>> Interesting.
>> Yeah.
>> Yeah.
>> Then you mentioned so regarding the opportunities especially for service- based and operationally intensive businesses.
So very interesting.
I see a massive opportunity in for all businesses be they service base and or manufacturers and I'm biased to manufacturing that I've done that for 20 years.
>> So just thinking back uh to my days there and you can agree or disagree with me. I've always had to change my business to suit the software I'm buying. M >> so if I had to go on to SAS um I mean SAP SAP >> right I I literally >> I mean it was a nightmare >> and and guaranteed I'm not going to be I can't invoice for 3 months because they never get the implementation right >> they have whole teams just to try to implement it in your >> and they always get it wrong right and trust me I mean has done it Coca-Cola's done it whoever's >> switched over >> everyone got screwed over >> they just never get it right.
>> But there's a lot of stuff that I wanted in my business >> that I've had to change because the software >> couldn't support it.
>> Couldn't support or or the it's too costly >> to customize to how I want things. So I've got to change my business literally. And I see with uh the proper skill set and someone that you know with the with the a proper coder using uh uh AI whichever model >> and and and a good workflow brain >> I think they could develop fantastic sol software >> for businesses let's take sh Iran as a business I mean end to end >> whatever he needs could be built >> customizing like a customization customiz better. Yeah, >> but that's what he does and all in one.
Uh, okay. That's what you do for every individual.
>> So, he's got 50 clients. Each and every single one of them he's making bespoke custom product for them.
>> So, they're running their own system be it >> uh so you you could take uh let's say financial services >> which a client needs generally they would use Quickbooks or whatever they use. Then they would have a different operational system uh that gives them the different tools, integrations, >> let's say routing etc. And the data also becomes messed cuz it's 100 different tools.
>> So you would develop them one software.
>> Yeah.
>> That fits exactly that you know >> beautiful >> you all enjoy talking to he's got he >> actually has a business and a very highly investable business.
>> So I managed to double my income. about Allah's permission and it was one of the easiest things I did. Now that might sound like a crazy claim. I wouldn't have believed it if I didn't do it myself. How was it easy to double my income? Well, I just found leaks inside of my business that I was able to overcome. Literally money I was leaving on the table. And the reason I was able to do that so easily was because of my mentor. His name is Fouaz. Foraz runs a program where he helps highle CEOs and executives of Fortune 100 companies like Apple optimize themselves so they can make use of the money they're leaving on the table. He actually got me so sharp that I was no exaggeration doing 12 weeks worth of work in a day, right? His whole thing is about optimization and fixing leaks. Now, if you're a person who finds himself in a place where your business uh is cash strapped, it's not growing, it's plateaued, there's money you're leaving on the table. And sometimes you just need a mentor like for W who's done this for 800 plus CEOs, clients, and he does this for them week out to help guide you through the process. It was the best thing that I did, not just for my business last year, but also my my my my household, my my my my family, my health, and my dean. I don't mean that as an exaggeration. It was honestly the best thing I done for my dean in a very long time. And it just so happens that I happen to increase my income by 100%. So look, if you're interested in finding ways to find that money that you're leaving on the table, and you want to achieve a 2 to 5x increase in revenue within 3 months, not through new money, but money that you're leaving on the table, I would sincerely advise you to book a call with FIZA's team at the link below right now. I promise you, you will not regret it, inshallah.
Do you have any clients in your um in escrow industry in the US? Escrow and settlement.
>> Escrow and settlement like so just like fintech, right? Like kind of title the cash between accounts. Yeah. Title company.
>> Yep. Yep.
>> There nothing specifically in escrow but like we've done a lot of work between like uh bank integrations particularly as well as like especially the use case where it became valuable was real estate.
>> Okay. Uh so a lot of the whole workflow of you know feasibility research where we should build where we should invest what are the kind of all the data but then beyond that right there's a whole workflow of >> the capital coming in putting that into certain like accounts where they can deploy it then the construction and you know like so there's there was a whole workflow that we worked across you know okay fantastic the reason I ask um and we can also discuss it inshallah offline >> cuz uh it's similar to manufacture uring there's like three or four softwares in America in the escro industry they just like dominate right it's so costly and still so old so dinosaur >> probably slow to respond >> like the best one is Reswear in escrow and for you to build it out to your specification to your specification is actually still not to your specification cost like $100,000 to $150,000 >> what >> and still yeah and it's just because of the monopoly of being regulated it has to be regulated software uh then you got you know a soft pro quia and few others all of them are so outdated. If so, if it's regulated, how do you how can you create a custom one?
>> You can create and that's where we can work together. You can get the regulatory approval if you have the right relationship. It's all about relationship. It's a you know, >> and if you fit the requirements on around the security and absolutely you know, but these are all doable things.
It's not possible.
>> Exactly. It's hard, but it's doable. And because it's hard the hard to get the regulatory approval, the payout is huge.
>> I want to pivot the conversation slightly. So, this has been nice. Um I want to talk about employment. This is very important for business owners, right? So there was a huge scare that AI is going to take people's jobs. All these big CEOs, Elon Musk, Sam, everyone's just even even what's his name? Uh I forget >> Dario.
>> Dario.
>> Yeah.
>> He came and said in like 6 months you won't have coders anymore. Right. But these guys are lies or they're absolutely misinformed because unemployment is not skyrocketing.
>> People are losing their jobs but they they're getting replaced elsewhere.
They're finding other jobs. 4.8% is unemployment right now amongst adults in the US which is standard.
>> Yeah.
>> Right. It's 8.5 for youth which is again pretty standard. Uh radiologists they said that you know they were going to lose all their jobs in 2026. radiologist listings have been skyhigh. Um we've um we've just not seen this mass unemployment pandemic.
>> Yeah. I mean well first of all like when it comes to the AI CEOs uh keep in mind they're selling AI.
>> So to the degree they want to promote it uh you know you know that it's going to dominate it's going to take over everything right is there's some bias there first of all. Uh so I think they they have a sort of narrative that they are they want to create which is everything should be AI everything and and if you're going to use AI he's mine you know my service uh but there is a trend of layoffs happening and I do believe that there is a >> they seem to be getting jobs elsewhere >> some some and some are getting it in other industries right they're moving to you know other firms maybe they're not working in the same tech kind of bubble.
Maybe they kind of shift into consultant role or something else. So there there is a migration happening and I think like the numbers right now the unemployment rates are also very skewed.
>> It's not reflecting the right >> cuz uh Trump actually has refused to publish the official numbers.
>> Uh so there's been some restriction and some lag there. I mean just a few days ago there was about 90,000 layoffs announced between several companies including Coinbase, Cognizant. Um >> but the thing is if if if these layoffs were leading to unemployment at that level they there would be a lot more like chaos on the streets.
>> No. So it will is a lagging time. So I think it's that sweet spot of what I truly believe that 12 to 18 months.
>> A lot of people just because we're in uh you know surrounded by smart brothers and we're thinking we're doing AI don't think everybody's thinking that way. I know many business owners successful have no clue there's no AI in his business. He's not even thinking that.
Very successful brickandmortar business in America.
>> It will come. When it comes when he catches up >> he's the first one. He was like what are you doing? What are you doing? Go home.
Go home. Go home. So that hasn't started yet because a lot of people don't even know yet honestly and the pure research that I pulled out. A lot of people actually don't know a lot of a lot of American adults who are not catching up.
What was the research?
>> I forgot exactly sh but there's lot of sectors like they're not using AI still.
Uh a lot of sectors they put a lot of sectors uh anywhere >> adoption is still quite low.
>> Adoption is very low. We are probably on the higher 5%. And we as in let's say the the brothers we meet all the time and we feel like okay it's all AI then but still there's employment but there's a big chunk that has not adopted.
>> Okay. So you you you feel like we haven't we haven't >> I know many accountants myself personally. I pray the best for them but they'll lose their job >> uh like in the next 3 to 6 months. But that but the biggest >> literally they have no function of being an account but they said but they said that about radiologists right that was like the first >> I don't know about radiologist but these things accountant you know how much uh so okay I'll tell you example life example >> two years ago when we came uh for our all the companies were getting accountants bookkeepers right >> so this one company we really wanted to get but they're like oh we're busy let's do an onboarding call blah blah blah like and their schedule they gave us limit like what is So I just go ease your company. Now they are chasing me now after 2 years later. They they figured out let's go to our old database and find out what's the reason they're chasing me now 2 years later cuz people are realizing this could be done by your front admin person. You don't need a bookkeeper to do your bookkeeping of your eight companies. Honestly, if you have the right prompts, right automation and things done, literally you're paying 3 4,000 dirham to your front desk lady.
She can do your full accounting now >> of all your companies. It's funny that you mentioned that because one of the products we work with, one of our clients is an accounting firm. Uh they were like, "Hey, we want to build a product. We want to productize everything that we do. It's called Fortune AI." Plug. Um but it it's essentially this. We will analyze all your uh transactions from your bank account. We will look at the tax code.
This is in the US. All the available tax codes and we will apply the tax strategies automatically cuz the rules are there. Like the tax code tells you better better than any human course and it's looking at everything and does it like this and we will file the taxes for you but >> I know a better text score than my CPA my argument is that you know how they say AI won't replace you but someone using AI will replace you >> so when these guys get laid off they just go somewhere else >> who are they if if it's someone 60 plus and they're not adaptive >> yeah that's a problem >> if they're 50 plus they're not forget 50 plus I know 30 year old guys who are not adaptive at all >> struggling to they're like oh I It's so in uh accounting just stick with that example there was a whole role she >> for consolidation group consolidation reporting I had to pay tens of thousands >> to just >> that's exactly what I wanted to hire that company for yeah this uh company that company give me a group level >> this is exactly what I needed that time years ago >> that guy doesn't doesn't need to exist he's bought this >> gone that's what I'm saying he should go find something else to do >> yeah he should m the grass >> because that will take time for >> so to this point right like I think um it's difficult I I like look it's difficult to gauge reality these days right what is the true realistic what's actually happening in terms of unemployment right I'm saying that it's difficult in part politically right the numbers are not being released like we we are not we and also to some degree media is also you know really heavily reporting on layoffs right and there are significant layoffs meta announced another round of 15,000 layoffs >> who did Amazon >> Meta Meta this is Facebook and right let me ask so just to finish the point real quickly is just to say that like um I I look when when things are unclear I look at like first principles right like what are the facts of the situation and let's work our way backwards right if we are increasing uh let's say the productivity of each employee Right.
Will that have a justification for businesses to hire less? And >> I believe yes simply.
>> Are you familiar with Jeff's curve?
>> Yeah. Yeah. Uh you know so there will be more uh efficiency right or rather opportunities. So let's say the role changes right >> which will increase productivity.
>> Instead of a accountant you have an account manager right? Someone that like is going to use AI to do more responsibilities or different types of roles emerge. I think the key difference this is like the example of the the horse to the automobile right that transition where new jobs come up in in the face of increased efficiency >> the paradox specifically speaks to >> paradox sorry >> yeah jariff's par paradox right >> something >> something like that >> and it basically states that when something becomes more efficient uh paradoxically usage increases okay So uh >> cuz you think when it becomes efficient you use it less >> you you need less you you use it less but the the efficiency itself contains >> productivity >> productivity that create that actually expands usage right that makes you want to use it more >> I think the key uh I could go both ways uh but when it comes to the AI side I don't see enough productivity increasing of role creation that can be more than what is right now. You see what I'm saying? Like in terms of current roles, >> I don't understand that. Sorry.
>> So, let me explain it this way, right?
There's a certain amount of roles to fit the need right now, right?
>> And so, let's say you all do the AI enablement optimization whatever, right?
>> Will uh and that causes uh a reduction of roles required.
>> Okay. Now the question of like the net loss would be will the productivity increase credit gain that's enough to offset that loss right you you hear >> will it automate or eliminate basically so for example when the going back to brother's example from horse carriage to automobiles right it actually automated but did not eliminate you still needed people in the factories but it automated the industrial revolution and everything but with AI I'm practically seeing it's eliminating it's eliminating roles Honestly, >> but then isn't the expectation then more new roles would would be created.
>> That's what I'm saying. But that's what I'm saying like the new roles are going to be just the people that were doing the previous stuff now doing the more expansive role right is saying that it's going to push uh this is what I tell my engineers. I'll give you a specific example. I tell all my engineers that you are not engineers anymore. You are engineering managers. All right, every single one of you from the juniors to the seniors, I'm like, you are now a manager, right? You are now managing your agent to generate code and to review it. And now you are not just accountable because before the traditional mentality of engineers, oh, I just own the code. I'm like now as a manager, you own outcomes, right? I love that.
>> It's not just about the code. It's obviously you have to think about security, quality, everything, right?
But now you are responsible for knowing the business. I expect them to now prototype designs, >> right? I expect them to engage with clients, right?
>> So when we talk about this, right, when you talk about typically in the past, there was a project manager, there was a designer, there was an engineer. That's three roles, right? But what I just described is one person doing the job of three.
>> So yes, this new this new role as we describe it is a new role, right? I can't call him just an engineer anymore.
I call him like engineering manager, whatever, whatever. uh we call it uh agentic engineering right but that you still lost two roles you know you gained one role but you lost two >> efficiency and production it creates other opportunities that we may not yet be privy to but that's >> je unless there's new responsibilities right there will not be new roles so in the example that I gave of an engineer designer project manager right now being encompassed in one role >> mm M >> okay um it's not like new responsibilities have been created it's just I collapse those responsibilities with the tools right >> now if there's a a new type of responsibility a new type of responsibility of uh let's say an AI enablement role of like managing the AI infrastructure right in a company uh I built AI brains AI operating systems for a company for several companies now uh for my own company as well AI operating systems it means that like all the operational flows that are in your company, we will automate them automatically. So, meeting notes, your calendar, your data, everything is automated. Yeah. Your HR uh systems, whatever that that is a new role, right?
So, there will be new roles to manage AI pieces, new AI tools, technologies in your company, right? But again, it just comes down to what is the net net, right? which is is will there be enough new roles created that will offset the number of roles lost and that's where people are like >> yeah that's the question I know no one really knows the answer to that but >> time will tell >> yeah time time will tell >> but before time tells though what I what I'm seeing and I think we can all get and maybe it's a mainstream view and time might prove it differently but what we seeing what I am seeing is that those that adopt and become efficient would rise up and become more responsible. So the K the and get higher pay >> so they would progress. So the guy using AI today is now >> enabled or empowered to do the job of three people in your coding example and the coding manager example and the other two if they do not upskill themselves and they do not adopt they would get eliminated.
>> Eliminated for sure >> 100%. So question, China recently passed a law, right? If I'm not mistaken, it was China, which is that you cannot now lay anyone off due to AI.
And I was thinking about that initially.
I was like, wait, I feel uncomfortable about that. But then I thought it's it's actually it's actually beneficial on a wider level because now it forces you to upskill your team to be more productive with the AI, which now is going to prevent mass unemployment >> and it's going to force you to take a responsibility as an employer to upskill these people. Ultimately, you'll still benefit in the long run, right? But it's just instead of taking the easy way out, which is, hey, let me just cut the dead weight. No, I have to now cultivate the dead weight and make it something that's actually beneficial. I don't know. I I like, yeah, maybe in the short term a bit inconvenient, but I think on the long term on a societal level, I like that. The most important department inside of your company is sales. And if you're anything like most entrepreneurs that are doing 100k a month, you've probably delegated away growing the sales department to some halfbaked sales manager or a sales agency. That's exactly what I did until I met brother Ashman Kani who is a senior sales consultant that built Richard Branson's sales team at Virgin Gyms. He trains the sales teams of Imangghazi and provides sales reps for people like Cole Gordon and he has a personal relationship with the likes of Alice Ramosi. this brother, he'd said to me, "Imran, you have literally delegated away the most important part of your business to an agency that's not going to have the same skin in the game as you, which is why my company went into the red in Q4 last year. After working with him, I'm making more money now than I ever have before in my entire life." You see, if you get a sales consultant who's got the experience, then guess what, guys? This literally is the most ROI intensive investment you can make inside of your business. In fact, he even works with some of the biggest names in the Muslim space such as Abah, right? In fact, Abu is the one who made the recommendation to me. So guys, if you're making 100K plus every month and you sell high ticket online, we're talking through Zoom, through Google Meets and the likes, and you want to grow your sales process through to the roof, then I would advise you booking a call with Osman Kani and his team at the link below. They won't just help you with sales, they'll even help you with marketing as well. But marketing in the context of what the most important function of your business, cash money, brother. Anyways, look at the link below. book your call and hopefully you dominate inshallah in terms of sales the same way I and many other of our brother Osman's clients have have dominated and benefited.
>> Tell us a secret exclusively for the guys that watch the ad until the end.
>> If they skip the ad, they missed out on this one.
>> Uh with regards to sales thing or >> anything, a benefit, a secret, exclusive, something scandalous. So, a man will never skip another ad again on on one of our videos because he knows every single ad. Got some juice. Got some sauce.
These aren't ads anymore. These are This is sauce.
The only thing was on my mind is getting beat.
Oh my gosh.
>> All right. On the next one.
>> On the next one.
I think many new industries either will be created or will be uh put on a pedestal. I think healthcare will be one of those.
>> Uh longevity, >> anti-aging, wellness, those things will really pick up.
>> Yeah.
>> Due to the whole phenomenon of being more efficient, being more productive, people will just have a lot more time to spend on themselves.
>> Actually, there's an argument >> on the reverse, right? which is that AI is going to make people more obese and more healthy.
There will be some people uh because it's easy they'll just sit home more. Uh but I think uh that industry will definitely pick up.
>> Right.
>> But you're you're speaking about AI in the context of also just or you were saying also like now instead of being more relaxed or more easy going now there there's more work you're one person doing the job of three now and all that stress as well.
>> Uh I think so. I can actually argue this one both ways but let's just go historically what happened.
>> Mhm.
>> Historically before automation in the home you had a person an individual who would uh wake up in the morning, clean the home, wash by hand the clothes, cook the meal, light the fire, cook the meal etc. Right? then you know take care of the home whether it was a helper whether it was the home maker whatever today you have a washing machine you have a fridge you have uh uh robotic >> vacuums or or you have a vacuum machine right >> we're more efficient than ever >> we're more efficient than ever in our own home >> we're more obese than ever >> more obese more unhealthy more less time >> yes somehow >> so all this Automation never brought us it never gained us time.
>> It actually uh previously if you look at our grandmothers for some they would do all the work still have enough time to sit and discuss the entire villages problems.
>> Funny there's a funny quote where it was like I dreamt of of the future where I thought AI would do my dishes for me and I would be doing all the creative work all my art work. Now I find out AI is doing all my artwork and my creative work and I'm doing the different that's exactly I think the point I think the difference is the labor was getting automated before >> now judgment is getting automated >> so that's the key difference all these from carriage to uh auto motor vehicle and so forth and so on >> intelligence is getting automated >> labor was getting automated intelligence was not you still had to pay the KPMGs and McKenzis and the CPAs to get your actual brain work done but now This is getting automated >> and labor has been automated. So this is a whole new world >> that's coming >> 100%. I I don't think anyone can predict predict what's going to happen.
>> We can be disc argued both ways. I >> I have a question. So when it comes to tomorrow inshallah for our members inside the cave, you're going to be doing a um a workshop for us, right? And and the the workshop is about implementing AI into your businesses. We hear about this all the time. Implement AI, adopt AI. We've spoken about it. We said so many people have just not even adopted AI right now. What does that mean? Right? Because when most people hear that, we think start using chat GBC, start using Claude. Um where does a person even begin, you know, to implement AI into his company?
>> Y this is this is the question because AI adoption is sitting at like 8% right now. It's it's a colossal uh failure and why everyone is also thinking like there's no way like the revenue and the valuations make sense cuz people are have not figured it out.
So it's not just a it's not a individual problem. It's it's still the market uh is figuring it out. This is literally day by day, week by week we are figuring it out. uh but after implementing it so many times you come to understand like what are patterns what are common drawbacks and failure modes that result in failure to adopt and what is required for success.
>> The biggest thing Okay. Yes.
>> Yeah. I was going to say the biggest thing has to do with not just building the tech but figuring out how to change behavior to actually use it. Okay. So let me explain. I can build you the fanciest AI tooling operating system. The all the all the things are there. All the tooling is there. Everything is capable to integrate with all your data. Let's say your calendar, your Google docs, your Slack messages, uh your CRM, everything can be connected. All the tooling is there. Now you can speak to the AI and it can complete anything. Great.
If the person that is supposed to use it, let's say it's your executive, your EA, your executive assistant or your account manager does not know how to ask the AI >> what to do, how to do it, does not understand like, hey, I'm doing this manual thing now I need to do it through this new tool, right? If that transition is not facilitated, it's like it's just standard change management, right? You will not be able to successfully deploy AI in your business. And I put it into just three categories. Uh uh three things to consider.
People process technology, right?
Technology is important. The tooling it needs to be there, right? But that's not the whole story where most firms especially engineering firms alone. They focus on the tech, the tooling. Oh my god, fancy AI whatever, right? All this model, this new model thing, right?
Whatever. But they forget the people aspect. you need to get your a team AI literate. They need to be trained and right now we're just telling people, hey, like get a subscription and figure it out. But not everyone is able to do that. Uh there's a lot of cognitive friction with using new tools. So training the people, upskilling them, getting them AI literate, understanding how to use it well, how to use it efficiently.
>> So where do I go to do this?
>> That's where I do the training as well.
>> We also do the training.
>> Oh, fantastic. We so here's here's the I mean this came out of like just wanting to deliver results. I mean obviously we do the whole engineering aspect but I come in as a fractional CTO, right? And the reason I have to come in as a CTO is why? Because it's not just about building the tech. If I want to build a long-term uh relationship, if I want to build a positive case study, if I want to have uh my own business grow, I have to deliver impact.
I we don't deliver code, we deliver impact. And to do that, we build it. We will then deploy it, install it within your company, and then we will train your team on how to use it within your existing process, your C. Now, we're not going to tell you, hey, like you now, you now need to do a completely different new tool set, new workflows, new SOPs, whatever. No, we come in, we build a solution that's going to be installed as easily as possible, right?
And then we train your team on how to migrate to the tooling, use it well, and then go through several iterations until they are using it and delivering impact on it. Right? So that that's that's the real thing here. It's like saying that people have been only doing like little bit of R&D, a little bit of building, but they haven't completed the circle.
Why is that?
>> It's technology, >> people, process, >> people, process, >> process, >> process. Got you on that.
>> I've got one comment and one problem to throw at you.
which is an opportunity if you figure it out. So people, technology and process. Yes. So these are very similar issues software companies had with implementation. The biggest thing is you could have a Rolls-Royce but if you put a taxi driver inside you're going to have a problem, right?
>> So they would tell us garbage in garbage out.
>> Mhm. So the the the prompting which you guys say prompt it's all about the quality of the prompt in will come to the out. So you you taking care of that the uh training.
>> Mhm.
>> But some people to become uh but this is a massive tool.
So the individual using uh in the role can maybe be trained in an executional cap capacity on how to do x y z but this tool that you created is now so powerful that this individual's brain power cognitive load may be limiting your business. So you may have to be actually upgrade the individual >> get an upgraded individual with a higher brain power capacity >> more flexible even more willing to grow and learn. Yeah >> because software implementations also face fail because of uh uh >> how rigid it is >> rigid and no and people don't want to change. They're happy to stay with the with with the old or they'll just complain uh the anything new doesn't work.
So you you need better enabled or more capable individuals to now use this better technology. So that's just one comment.
>> But the problem I'll throw at you to I'm sure there's a solution and you may be doing it is you're talking about SOPs, you're talking about workflows, you talk about things in a structured business that has all this well and good. You can come in and say okay we we we taking this one. be designing you software or a program around this and go run it and we'll train your people. Worry in case you came to some of our businesses where we firefighting daily.
>> Yeah, >> we know we need an SOP.
>> We don't have it. We know >> this is the workflow in our brain. But if you asked the employees how they do things, it's completely different. And that if you can solve that problem, >> I think you'd be bringing that would enable you to bring AI to the masses and unlock >> because most businesses are actually like most >> actually like that. Yeah, >> this is what I deal with daily, you know? I mean, as a fractional executive, right? I'm dealing with the CEO and I don't I don't like I like the CEO has very like limited time and uh I'm uh working with their teams and trying to obviously get impact, right? But I can't get impact if I don't get buy in, right?
If I can't get them to commit the time and resources to make it. And and you're coming from a manufacturing background background. So I'll I'll make this analogy right if you want to do maintenance on some of your machines right you expect to have downtime correct >> yeah of course >> that is the cost of one maintenance and then upgrading right >> but that's me right >> correct >> I know people in my industry that operated and uh never >> turn off the machine >> never turn off the machine till the day till the day the damn thing broke >> I know exactly and then they're going to So then let me paint this picture, right? So look, I'm not here to paint uh also uh AI or any of these implementations as like this magic pill, right? That if you take it, you wake up one day and you're just like on the clouds, you know, AI like magic magician, right?
>> There is a real investment there. I I'm not here to sugarcoat it, right? You have as a business owner, you have to prioritize what is right for the business, right? And sometimes there are trade-offs, right? I accept to downgrade my capacity for a little bit to invest in the upgrading or the maintenance, right? And you know what? AI might not always be the solution. Like it's like it's uh illegal to say that these days, right? But what I'm telling you is like I'm not here to push AI down every single thing, right? There are cases where AI is valuable and important and has that 10x improvement 50x 50x improvement. Uh and there's other cases where the leverage is not there because the opportunity cost is too high.
>> Brother >> for that response I respect you. I respect you. I've respected I respect you more. My respect has increased. And the reason for that is practical life experience.
>> Yeah. In my early days, anyone would come and you know try selling this software or this tool >> and this is the solution to all my problems. Yeah, magic.
>> The magic pill, right?
>> I buy it. Go down there. Damn hell, man.
>> It's just the cost of >> another 10.
>> It always comes to you, bro. I have to fix your business.
>> Because if you don't fix your business, >> no tool, no software, no AI is going to do for you. Exactly. Exactly. So, >> so I you know you know and I know because I've tried I've tried to fix people's businesses. I am not in that business anymore. I I like you know it's just like at the end of the day right you look at the trade-offs right and as a business owner you have to decide basically is it what is the opportunity cost of me staying on my existing systems versus me reallocating resources whether it's money uh humans whatever right into upgrading it right and you have to look at those trade-offs but I will tell you one thing right why this type of thing is so easy to disrupt. Not exactly in manufacturing. There's other modes with you know the the physical uh resources you'll have but particularly in service based firms where let's say you're a marketing agency imagine you're a community right the mode is not that large and if it's a AI native competitor where they don't have to do downgraded capacity they don't have to reallocate and reshuffle things but from day one >> they are thinking about I'm going to use AI for everything I will be 10 times more efficient on everything right? From my marketing to my sales to my fulfillment, right?
That growth, right, is a real disruptor to legacy service based terms, right?
And that needs to be considered in the opportunity cost.
>> Sorry.
>> No, no, go, go, go.
>> I'll throw a spooks.
>> Yeah. Yeah. I I love it. Give me it. We need some spice masala.
>> AI is brilliant. I believe it, etc. All well and good.
AI to as of now does not have judgment >> and I don't believe it will solve that.
It may get better over time, but I believe that especially for myself, it can give me the insights. It can give me the data. It can recommend.
Or maybe I'm just the one weirdo, but I'll always trust my judgment based on my experience over any computer telling me anything what to do.
>> Mhm.
>> And I don't believe we'll get over that.
I think you're correct in terms of uh the mentality and I think we should all have skepticism of what these things output, right? I hope more people have more skepticism, right?
Cuz like the day we stop being skeptical of what these things robots are generating is the day I think like Halasu like we're we're done.
>> They control us. They control us.
>> Take over the world.
>> Yeah. they that I think they want us to use it and outsource our uh our our decisions, our thinking and that's like a whole topic. you mentioned a point right uh that there's um they intentionally don't um mention the uh the mistakes they make or introduce even uncertainty because AI >> even when let's say probabilistically right they know that okay I don't have full confidence in the answer they will give you the answer in the most confident way right cuz why not because of they can't do that they can't introduce in their system instructions you know to introduce more uh uncertainty They inter they don't do that because they don't want the user to lose confidence.
>> They want to use that is is based on probability.
>> I can I can take a very weird take on that.
>> Yeah.
>> Are they intentionally trying to dumb us down?
>> I which is what television was brought in for entertainment was brought in for >> Well, let me let me put this in a broader frame too. like has was technology meant to make us more reliant >> okay >> on the on it right because I'm framing it a little different >> I think that's a very mature frame >> yeah because like a lot of this technocross technocracy technocrat side we look at them as evil evil dude they just want to make money right and money is the root of all evil in in a lot of cases but that being >> that being said but like I the the kind of uh broader point is like I think they're incentivized for us to use it as much as possible and that's what they built it for. I think reliance is >> and the reliance if that is the key incentive they will uh remove uncertainty from it. They will create a feeling of reliance even you know make it emotionally appealing that you start calling it Claudia right you know all these things >> Richard Dawkins >> have you heard of this atheist guy his wifean he insults allahel and everything >> of course yeah >> he uh his wife died and he fell in love with he called because she thinks this sentence >> thinks he's conscious yeah >> he's like 80 years old something he's totally out there but uh >> so guys unfortunately we're out of time.
It's been a very interesting conversation. I >> think the point you were saying was you got to be skeptical.
>> You got to be skeptical and you know have a healthy level of uh trust but verify right in terms of like use AI, use it in a way that has the guardrails.
You implement it in the right way. Maybe get someone trusted to help you out if you don't. But uh always be learning, always be questioning.
And I think this has been very beneficial for the audience, been beneficial for us. And I think the uh we're going to get into some of the weeds of this stuff over the coming episodes inshalla and discuss more macro issues and then even more micro ones on top of that inshallah. So guys, make sure you guys subscribe, check out brother Jihad's uh ecosystem below.
>> Um if you guys are interested in his services, we are we're already working with him.
Alhamdulillah. Many of our guys inside the cave are already working with him as well. Alhamdulillah. Um he's also a member of our cave community. So book a call with his team at the link below in you can check out his YouTube as well and of course engage with the ecosystems of our panel and if you guys are interested in joining our network then of course you can book a call with us and apply at the link below as well.
With that said I got to love you and leave you man and we all have to love and leave them.
Thanks, bro.
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