What Is America’s Brand? How AI Is Changing Work, and How Scott Records from Anywhere

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Speaker 16 Welcome to Office Hours with ProfG. This is the part of the show where we answer your questions about business, big tech, entrepreneurship, and whatever else is on your mind.

Speaker 16 Today, we have two great listener questions lined up. And then after the break, we're continuing our new segment, The Reddit Hotline, where we pull questions straight from Reddit.

Speaker 16 If you'd like to submit a question for next time, you can send a voice recording to officehours at profitmedia.com. Again, that's officehours at profitmedia.com.

Speaker 16 Or if you prefer to ask on Reddit, post your question on the Scott Galloway subreddit. Jesus Christ, that's something I never thought I would say, Scott Galloway subreddit.

Speaker 16 And we just might feature it in our next episode. What a thrill.
Let's bust right into it. First question: I have not heard or seen these questions.

Speaker 16 Hi, Scott, Patrick here in South Africa. I am a pro-capitalist, pro-democracy, pro-Western kind of guy.

Speaker 16 And I wondered if you had any thoughts on brand USA, given what has happened between Trump and Vladimir Zelensky in the Oval Office.

Speaker 16 As someone who has looked to the West with admiration, I am concerned about whether or not the USA is indeed a fair weather friend and what damage is being done to brand USA.

Speaker 16 Your thoughts would be greatly appreciated. Thanks, Scott, for all the great work you do.
Thanks for the question. And I'm an enormous fan of South Africa.
I've been to Cape Town a few times.

Speaker 16 Obviously, Safari is sort of a singular experience. I actually enjoy spending more time in the cities than I do Safari.
It's like two or three days of

Speaker 16 look at that lion, look at that zebra. It's great.
A couple days, that's fine.

Speaker 16 And then I start doing the afternoon drive and everyone gets angry at me because I'm not going on both drives for this magical experience. But anyways, I absolutely adore Cape Town.

Speaker 16 If I was a younger man, what a lot of shit I would do if I were a younger man.

Speaker 16 But one thing I might consider doing is if I could figure out a way to make sort of a Western salary and live in Cape Town. I just thought in terms of quality of life,

Speaker 16 it seemed just like a fantastic place to live.

Speaker 16 So just a little bit of data. According to the NBC, the part of Trump's presidency that Americans disapprove of most is his handling of the war in Ukraine.

Speaker 16 Also, more than half of Americans believe that Trump is too closely aligned with Russia, including more than a quarter of Republicans. Since the beginning of Trump's term, foreign opinions of the U.S.

Speaker 16 have plummeted. Get this, just 27% of Canadians now see the U.S.
as an enemy country. A majority of Americans still see Canada as an ally.

Speaker 16 Anyways, across the EU, the most common answer to who is the U.S. to the EU is a necessary partner over an ally, a rival, and an adversary in every European country.

Speaker 16 They're seen as sort of basically we become more from an ally to a necessary evil. Look, first off, let's back up.
What is a brand? A brand is a promise more than it is the actual performance.

Speaker 16 And that is before you buy a car, before you attend a university. I'm about to do a college tour with my son.
And he listed the universities he is interested in seeing.

Speaker 16 And it came down to things like, it looks like fun or I like the logo or the website of school. Basically, he has no idea.

Speaker 16 And he's facing, he's basically going to make a decision, which might be kind of a quarter of a million dollar decision when you look at how much it's going to cost his parents to send him to four years to one of these universities.

Speaker 16 So he's going to make a quarter of a million dollar decision with 90 plus points of gross margin, meaning that the majority of that money will go to the bottom line for whatever institution he ends up at based on brand.

Speaker 16 I mean, he'll go, we'll do maybe a one or a two hour tour of the university, but it's basically essentially the promise, the branding, the messaging, the reputation of the university that will dictate these enormous purchases.

Speaker 16 Now,

Speaker 16 bring that back to a country. There are millions of decisions made every day around trade partners.
Who you're going to do business with, where your kids want to go.

Speaker 16 If they're incredibly talented and they can go anywhere, where do they want to go to apply their exceptional human capital? What treaties do we enter?

Speaker 16 Will we let a military base be constructed on our own territory? Do we like their media? Will we not cooperate with bad actors that want to hurt them?

Speaker 16 Will we not launder money for terrorist organizations? There are millions of decisions every day, either pro or against certain countries. And here's the brand impression of the United States.

Speaker 16 We're enormous. We're enormously wealthy and successful.
We make a lot of mistakes, but our heart is in the right place.

Speaker 16 We are always seen, loosely speaking, as the good guys for the majority of powerful nations and economic powers around the world. And we have...
reaped enormous benefit. People want to buy our cars.

Speaker 16 People want to consume our superhero movies. People want to send their best and brightest to our universities.
People want to cooperate with us.

Speaker 16 The brand America is one of the most beneficial, invisible, powerful aircraft carrier squadrons ever, ever manifested by an organization anywhere. The U.S.

Speaker 16 brand is staggeringly powerful and has produced all sorts of margin and ancillary benefits for 200 years for the United States.

Speaker 16 And that brand has fallen further faster than any brand in history over the last two months. We are now seeing, what is the U.S.
brand right now? Surrender to Putin with a mix of measles?

Speaker 16 I mean, what is our brand right now? You can't trust us. We're not consistent.
Tariffs on, tariffs off. I think the U.S.

Speaker 16 brand has fallen further faster than any brand of this size and this depth in history. Thanks for the question.
Question number two. Hey, Scott.
I hope you're doing well.

Speaker 16 I've been following you in the podcast for a few years now. Thanks for all that you do, especially with regard to helping out young men.

Speaker 16 Anyway, my question today is about the value of market research in the era of AI.

Speaker 16 Given that you sold your company to Gartner, which is one of the largest tech research firms in the world, I'm curious about your perspective on this industry.

Speaker 16 I'm a 34-year-old principal analyst at a large market research firm, and I'm concerned that the influence of these firms is actually declining as companies are increasingly using generative AI to get insights into potential markets.

Speaker 16 What's your take on the value of market research? Will it have a place in the future?

Speaker 16 And if you see it declining, where would you advise someone with market research experience explore as a next career step? Thank you.

Speaker 16 That's an interesting question. But rather than talking about market research, I'd like to turn this back to me.
Let's talk about me.

Speaker 16 So, my first firm, when I was 26, I started a company called Profit Market Research.

Speaker 16 And basically, we helped big brands figure out their internet strategy and manage their brand as assets, like a hedge fund manager would manage stocks and portfolio. And I really enjoyed it.

Speaker 16 It was fantastic learning, incredibly taxing personally, a lot of travel,

Speaker 16 a lot of golf and dinners with clients, things like that. And I sold the firm for

Speaker 16 my stake at least, I sold, I think, for a valuation of 33 million, which felt like a lot of money at the time. But the Dobbam implosion and a divorce took care of most of that.

Speaker 16 And then I started a company called L2, which was a strategy firm that you referenced that I sold to Gardner. I got that one right, went to a recurring revenue model.

Speaker 16 Basically, we would collect a shit ton of data and then meet with a brand on a regular basis and give them our insights around what we think they should do with their their digital footprint.

Speaker 16 And would charge a Nike half a million a year and a smaller brand like a Rolex 100 grand a year, got to 20 million in revenue, sold for $160 million. And it was acquired by Gartner.

Speaker 16 Let me be clear, a nice group of people, they've grown their shareholder value dramatically.

Speaker 16 They're clearly doing something right.

Speaker 16 Everything they did made no fucking sense to me.

Speaker 16 When we were acquired, it was like that Seinfeld episode where George Costanza decides to do the opposite of every instinct and it ends up his life starts going much better.

Speaker 16 Every decision they made post-acquisition is exactly the decision I would not have made. I was such a fish out of water.

Speaker 16 I was literally a tuna on the deck of a fishing boat flapping around, trying to like figuring out trying to figure out where, how the fuck did I end up here?

Speaker 16 How do I get off of this boat and back into the water? I was such a cultural misfit. And again, I don't think it's them.
I don't think it's me. I just think it is.

Speaker 16 This is a firm that basically figured out a way to kind of industrialize and institutionalize what I would call good, not great research and then sell it to the unit, you know, the North Oklahoma State Bank, whereas we were doing kind of more bespoke, I would argue, insightful research for brands like PNG and Nike.

Speaker 16 But look, their company is worth several billion dollars and L2 was sold for $160 million. So clearly they're doing something right and I'm doing something wrong.
Now, your question around AI.

Speaker 16 I do think companies like Gartner and research companies are going to be able to do a lot more with a lot less. And this is what I think the honest all hands would be.

Speaker 16 And that is, I've got great news. Our revenues and our EBITDA are going to go up.
I've got even better news.

Speaker 16 I'm going to need a third of you to do this in the next five years or a third fewer of you or maybe two-thirds fewer of you. But you don't say that at the all hands.

Speaker 16 I think AI is effectively to corporations what Ozempic is to the obese. And that is it shuts off the signal that you need to eat more.

Speaker 16 And AI in boardrooms, and I know this firsthand, is shutting off the signal that if we're growing our revenues, we have to hire more. That's just the automatic signal.
Oh, we're growing.

Speaker 16 We need to hire more. Well, actually,

Speaker 16 ever since the meta earnings call three quarters ago that said, hey, we grew revenues 20% and we did it with 22% fewer people, which took earnings up 70%.

Speaker 16 Let me get this. I can have the great taste of increased revenues without the calories of increased costs.
Well, hold on here. I like the cut of that, Jib.
Oh my God, that sound is right as rain.

Speaker 16 That's disco. And I'm talking like 70s disco, real disco.

Speaker 16 And so a lot of companies are trying to figure out, especially information-driven companies, how they use AI to create 80, 90% of the value of an analyst for 10% of the cost. Now, what does that mean?

Speaker 16 If you're an analyst in a market research firm, quite frankly, you want to be a samurai and AI is your weapon boss.

Speaker 16 Otherwise, someone's going to come along with more skilled and more dangerous and put you out of business. I've said this a lot.
AI is not going to take your job.

Speaker 16 Somebody who understands AI is going to take your job. So I actually think that Gartner will likely...

Speaker 16 What do I think of shareholder value there? What will happen? I don't know. That's an interesting one.
Will AI help or hurt them? I would argue for a firm like that, it may help them in the short run.

Speaker 16 They're going to be able to cut costs. I do not think you want to be an analyst in a market research firm right now,

Speaker 16 or let me put it this way, a mediocre one. And by virtue of just probability, the bulk of them are mediocre.

Speaker 16 An exceptional analyst who really understands AI and knows how to become incredibly productive and put out interesting data. Like, what do you do?

Speaker 16 You figure this shit out. I remember when I moved to New York, they hired an assistant for me.
I was running an e-commerce incubator called Brand Farm backed by Goldman Sachs, Maveron, J.P. Morgan.

Speaker 16 Different story. Different story.
And they hired an assistant for me.

Speaker 16 And the assistant came in and said, I just need to tell you that I'm not, I don't use, I don't like computers and I don't use them. I'm like, okay, you can't work here.

Speaker 16 And to say that you don't understand AI or you're not interested in it probably means you're not going to be able to work in a market research firm. So this is what you want.

Speaker 16 You want a second screen at work.

Speaker 16 You want your screen, your typical computer screen, screen, and then you want a second screen that has nothing but AI on it, that has MidJourney, that has Anthropic, that has ChatGPT, and a bunch of the other cats and dogs.

Speaker 16 And every time you do a task, you want to turn to your second screen and think, how can my second screen help my first screen?

Speaker 16 What additional insight, data, research, ideas, really get good at prompting. And before you know it, your head's going to spin around all the different shit you can do.
Turn this into a chart.

Speaker 16 What is a different way to frame this? What types of visuals might better display this information?

Speaker 16 What additional data, parables, historical, anthropological evidence can you do to support the following argument that I'm making in the above two paragraphs, right?

Speaker 16 I just, just so incredibly powerful. But your job, and you sound, you know, you are young, you're 34, you need to be a weapon.
Oh, let's lay off the guy who really understands AI.

Speaker 16 Says no firm ever right now. You want to be that guy.
In some, let me finish where I started. AI is not going to take your job.
Somebody who understands AI is going to take your job.

Speaker 16 We have one quick quick break, and when we're back, we're diving into the depths of Reddit, the bowels of Reddit. We're about to do a colonoscopy on Reddit.

Speaker 16 And I promise to do what I always ask my colonoscopy doctor to do when before I go under, and I think it's fucking hilarious.

Speaker 16 I say, Will you run your fingers through your hair when you're invading me?

Speaker 16 And they always think that's really funny. And then I'm out.
By the way, that drug, what's it called? Propanopol that they give you for the colonoscopy, that shit is money. Wow.

Speaker 16 Wow, you are sleeping like a corpse there. We'll be back for our questions from Reddit.

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Speaker 16 Our first question comes from Debt it All 777, and they ask, hi, Scott, what are the two things you've changed your mind about in the last few years and who are the people who most influence you?

Speaker 16 So I would say the kind of two profound changes in my life are I feel as if I found a little bit more of my purpose. I think I used to say my purpose was to create economic security for others.

Speaker 16 So I'm looking at things or look through things through a professional lens and thought, okay.

Speaker 16 I've always been very focused on economic security and I thought, okay, now I want to provide economic security for other people.

Speaker 16 That's changed. I think what I find my purpose now is I'm trying to raise two good men.
And

Speaker 16 by the way, sometimes I'm not very good at it. I'm still struggling with it.
I find parenting, I find almost anything I've ever focused on, I can usually get pretty good at.

Speaker 16 I don't know if I'm any good at this parenting thing. I know I'm not bad at it, but I don't know if I'm good at it.
But I've decided my purpose is to raise loving, patriotic men.

Speaker 16 And I don't know if I would have said that a few years ago, that that is my purpose, if you will.

Speaker 16 The second thing is, and again, everything for me is kind of, it's very crass, but I'm very economically driven.

Speaker 16 I've decided every year that anything above my current wealth, I'm going to give away or spend. So I'm spending a lot more money and I'm giving away a lot more.

Speaker 16 And I know that may sound like virtue signaling, and it is, but I'm trying to really focus on doing a lot with loved ones.

Speaker 16 getting more involved and trying to plant, you know, the trees, the shade of which I won't sit under. And I'm very focused.
I feel like for the first time in a while, I have purpose.

Speaker 16 And my purpose is, you know, being a relatively good father.

Speaker 16 And that gives me some comfort because I think I was sort of wandering around, okay, what is the point here once you get to a certain status of economic security? And the people who most influence me.

Speaker 16 You know, I get a lot of influence from the young people I work with. I find them really inspiring, really intelligent.
I like the way they look at the world, and I spent a a lot of time with them.

Speaker 16 So I think they inform a lot of my view and kind of keep me, keep my perspective a little fresher than it would be otherwise. So I get a lot of inspiration, you know, from the kids in the firm.

Speaker 16 I think of them as my muses. And there's a lot of great,

Speaker 16 there's a lot of great influences out there, a lot of great podcasters. My co-host.

Speaker 16 Pivot Kara, I get a lot of cues from her on parenting. I think she's a wonderful parent.
I really like Sam Harris. I get a lot of insight from him.
A lot of things I hold on on to.

Speaker 16 If you have economic security and people who love you, you have an obligation to speak out. He said that, and it really sort of struck me.
There's a lot of wonderful role models out there.

Speaker 16 But anyways, the two things I think have changed the most, I'm focusing on or really focus on the reward I get from being a father

Speaker 16 and trying to catch up in terms of.

Speaker 16 adding value to, I saw a chart that just struck me, and it's such a nice thing that I try to remember, and that is there's a chart tracking how much time people are spending helping other people they will never meet, and it's at an all-time high.

Speaker 16 And I thought to myself, I'm not high enough on that chart. I need to get a little bit more focused on helping other people, even if there's no reciprocal benefit.

Speaker 16 Anyways, kind of a kind of a, I don't know, a hallmark answer. But anyways, I think it's mostly true.
Is that true? Anyways, next question

Speaker 16 from 1.6960 reads, Scott, what is is the topic you'd like to learn more about?

Speaker 16 I've said that in my next life I'm coming back as a Navy SEAL, a Broadway dancer, or an evolutionary anthropologist. I've always regretted not serving my country.

Speaker 16 I've always thought it'd be fun. My dad wanted me to go to Annapolis and took me for a tour there.

Speaker 16 And then I found out that back then it was all men, that you weren't allowed to leave the campus the first year.

Speaker 16 And then I made the mistake of going to Hillgard Avenue, which is where all the stories are at UCLA. And it was like a fucking Cinemax movie.
And I said, no, I'm going to UCLA.

Speaker 16 But I've always regretted not in some way serving. I'd love to be a Broadway dancer.
I just admire people who can dance. I cannot.
And I'm just so enthralled and enamored.

Speaker 16 My first girlfriend, my first like obsession when I moved to New York was a Broadway dancer, Michelle Potter. She was in the play Chicago, and she came out.
She's the first person on stage.

Speaker 16 And the way the dancers move, I was just so starstruck and crazy in love with her.

Speaker 16 She did not reciprocate my affection. She was not nearly as in love with me as I was with her.
I think she's back in Kansas teaching dance class. Anyways, Michelle, I hope you're doing well.

Speaker 16 Nice person, too. Anyways, but more than anything, I'd like to come back as an evolutionary anthropologist.
I'm just fascinated by our lizard brains, our Amangala, whatever it is, our instincts that

Speaker 16 create the behaviors or motivate us or shape what we do and who we are every day. I find it fascinating.
If you want to believe in nature over nurture, just have two kids.

Speaker 16 I mean, we just haven't treated our two sons that differently, and they are absolutely a different species.

Speaker 16 So I'm fascinated by what happened thousands of years ago to us and how it impacts the way we respond to things. I'd also be very interested in learning more about adolescent psychology.

Speaker 16 I'm trying to coach young men and understand more about it. And I feel as if to be really thoughtful about it, you want to understand kind of what they're going through.

Speaker 16 And I don't feel as if I know about it to be. as helpful as I could be with some of the young men I talk to who are clearly struggling.

Speaker 16 So I'd like to learn more about evolutionary anthropology and adolescent psychology. Thanks for the question.

Speaker 16 And lastly, D. Ryan, 7575 asks, what's your podcast recording set up while traveling? Huh, it's an interesting question.

Speaker 16 So I have

Speaker 16 one of our best hires is a gentleman named Drew Burrows, who's our technical director.

Speaker 16 And Drew will, when I go on a long trip, sometimes join me and just follow me around and make sure that we're totally set up. And he sets up all the studios.

Speaker 16 I have exact replicas of my studio in my London, New York, and Florida homes. If that sounds privileged, it is.

Speaker 16 But what he also does for me is he puts together a travel kit. And it basically looks like kind of a dop kit for, you know, an aging, self-conscious, you know, prima donna.
I'm all of those things.

Speaker 16 So if imagine a large toiletry kit, and in it, it has a mic, a bunch of cords,

Speaker 16 and a really good headset. And you plug it into your computer, bring up Riverside, and boom, you're ready to go.

Speaker 16 And then I test shots, test lighting, work with True because I'm usually in some hotel somewhere. And it's really fit my lifestyle.
Now, here's the problem.

Speaker 16 If you look at the churn and podcasting, if you were to look at the hundred podcasts and the 50 new entrants and the 50 that dropped out and who will likely be the winners and losers over the next 24 months, I think it comes down to one word, video.

Speaker 16 Stephen Bartlett, who's sort of a role model of mine, despite the fact he's 30 years younger than me,

Speaker 16 the first time, literally the first day I was in London, two and a half years ago, I went on his podcast and I walked into his studio and he spends all his money, puts it all back into production value.

Speaker 16 It's basically a TV show. posing as a podcast.
He has these cameras.

Speaker 16 I was just in Austin at South By and he had recreated a studio and there must have been 16 cameras and three cameramen and people editing real time and producing photos as a gift for me when I left.

Speaker 16 He's got the strongest video game. And if you look at what's happened over the last couple of years, essentially, Spotify and Apple have ceded ground in the podcasting world to YouTube.

Speaker 16 People are listening to more podcasts on YouTube in terms of time, listenership, in terms of time, than Spotify or Apple. And it's based on how good your YouTube game is and your ability to optimize.

Speaker 16 And Steven was showing me how they optimize for guests and test titles and thumbnails. I mean, they're just, and we're not that.

Speaker 16 And unfortunately, my desire to kind of optimize for my lifestyle, which includes having a mobile kit, is probably not where the industry is headed.

Speaker 16 I think you're going to see, I've predicted that Steven's going to overtake Rogan as the biggest podcaster in the world because of his video game. So my dopp kit is just a setup.

Speaker 16 It's just a Shur, I believe, mic, some cords. a stand.
Maybe we'll publish on Reddit our exact setup. And Riverside.

Speaker 16 And then the key is I have a very talented individual who helps me figure out the lighting. And then just like writing a book, the kind of the magic in podcasting similar to a book is in the edit.

Speaker 16 And that is our producer, Jennifer Sanchez, will spend a lot of time trying to make me sound smarter by adding in sound effects or more importantly, not what's in the podcast, but what she decides to take out.

Speaker 16 I think the majority of magic happens in the edit, but my My mobile kit is essentially a fancy toiletry kit with a few items.

Speaker 16 But I wonder if those days are coming to an end and the new kind of kings and queens of podcasting are going to have serious production values. Appreciate the question.

Speaker 16 That's all for this episode. If you'd like to submit a question, please email a voice recording to officehours at proptimedia.com.
Again, that's officehours at proptimedia.com.

Speaker 16 Or if you prefer to ask Reddit, just post your question on the Scott Galloway subreddit, and we just might feature it in our next Reddit hotline segment.

Speaker 16 This episode was produced by Jennifer Sanchez. Our intern is Dan Shallon.
Drew Burroughs is our technical director. Thank you for listening to the Profit Pod from the Vox Media Podcast Network.

Speaker 16 We will catch you on Saturday for No Mercy, No Mouse, as read by George Hahn. And please follow our Profit Markets pod wherever you get your pods for new episodes every Monday and Thursday.

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