The Case Against AI | Ep 993

**Alex Hormozi** (0:00)
In this video, I'm going to make a case against AI, and more specifically, why more people are not making money despite using AI a lot, and token maxing, and vibe coding, and making all these apps and all that stuff. And so the big misconception, I think, around AI is that AI somehow canceled every other form of leverage. And if you're new to the channel, leverage just means the difference in what you put in and what you get out. If you have a lot of leverage, you put a little bit in, you get a lot out. If you have low leverage, you put a lot in, you get a little bit out. So AI introduces high leverage, which is great.
But the thing is, is that there's a lot of things that create leverage. And so this whole misconception around like, we must only use AI in order to succeed, taken differently. Businesses right now who are using AI and individuals who are using AI, and they're seeing their token bills go up, are somehow not making more money. And so what I find kind of interesting is a couple of things. Number one, when I look at our business, we now have had another kind of step increase in our revenue.
But it's not because of AI. That's the thing. It's not because of AI. If AI didn't exist, we still would have had the increase. And so it's not like a direct line there. The second kind of proof point that I think is more interesting around this, and then I'll give you some tactics, is that I talked to a number of my wealthiest, oldest friends over the last week or two. And I said, listen, you need to have public apperances, saying of course, we're almost super AI advocate because you have to do that. But I said, how much are you actually using AI every day? And they look around and they're like, dude, I'm not using AI. And I was like, well, your teams are. And he's like, oh, yeah, of course.
They're like, of course, our teams are using it. And I'm bringing people in and we're training the team up and all that kind of stuff. And I was like, but you're not using it. And they're like, no, no, I'm not. And I was like, so that's very interesting to me. And so this is the thought that I kind of want to challenge it with and then I'll leave some tactics at the end, which is there are a lot of forms of leverage and many forms of leverage are multiplicative. So for example, capital still has tremendous leverage. AI coming in didn't somehow erase the leverage that capital uses. If you are in media, and you make a video like this, and thousands of people see it or millions of people see it, that is tremendous leverage, right? AI doesn't erase that. And when you multiply some of these together, let's say you have capital and you have media and maybe you have teams, right? People still create leverage for other people. I do find it ironic that like these, the frontier labs that have all this AI still have thousands of employees. And so it's just quite kind of interesting as a counterpoint of like, people are still being needed and useful. But the thought of it is this, is that I'm seeing so many business owners trying to AI max, and because their capacity to work has increased using AI, they are now doing things they otherwise would not have done if they didn't have AI. But the thing is, those things that they otherwise wouldn't have done were lower priorities. And so now they're doing things that were less important, faster, and automated. Great. Not great. Doesn't matter, is my point. And so one of the interesting things about not having AI is that it forces you to prioritize better. It focuses you to focus on the things that are going to move the needle in the business. And I'm not seeing, with an exclusion of just a handful of exceptions, most AI use cases that I've seen are not actually making the business a ton more money. I think that having way more ad creative, I think, for sure, is helpful from an advertising perspective. We have an AI sales rep, which has been helpful. But the thing is, the AI sales rep is great. But I also know how to build sales teams. So it's not like this, you know what I'm saying?
It's more efficient in its scales, but it's typically not the limiter of the business. And this is my point, is that the constraint of the business, many business constraints, at least at this point, are not still as perfectly solvable with AI. And if they were, then everybody would be making a ton more money. This is kind of like the crux of this, which is, let me give you some other examples of leverage that people are just not employing, that you don't need any tech expertise to do. If you have a one-on-one business, you can go to one-to-many. It's like that would create a lot of leverage, even one-to-small group. That's if you want one-on-one to one-on-ten, you have 10x leverage. Like, just like that with that one decision, right? If you go from having scheduled appointments with clients to asynchronous appointments with clients, it's like that gives you a tremendous increase in leverage in terms of how many people you need from a deliverable perspective. If you change your sales motion so that a higher percentage of people buy, and so instead of needing 10 salespeople, you need two, and they close the same amount because you've basically educated your prospects throughout the sales process more fully, so they need less information to make decisions, which means you have fewer conversations and shorter conversations for your sales reps, and they talk to more qualified customers. Then as a result, you can take what used to take 10 people and you can funnel to two. None of that uses AI. This is my point, is that there's so many places in a business where you can increase leverage, that there's this fallacy, that because I now have this infinite tool, and I'll use infinite with quotes here, I'm just seeing a lot of people using and not making more money. That's my point. And so it's this idea that we can throw away the fundamentals of business, but that's not true. You have to, one, is you want to use every form of leverage that you have at your disposal to solve the constraint of the business. If you don't know what the constraint of the business is, you're just doing more shit automated, does not make you more money.