Jim’s Rant For The Day. Just Ask AI If It Still Beats Mrs. AI And See What You Get.

Today’s post of The Coming AI Crash – 91% Failure Rates and $600B in Wasted Investment is probably the most important article/Video in the past month for business persons trying to survive all this chaos. It is a must see.

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I was doing a turn-around for a hotel on the beach once. It required me to do a self-imposed bankruptcy reorganization. The owner’s four kids were heading up Accounting, Restaurant Management, Day to Day Operations and the overall Hotel Management positions. I didn’t see any of them with trained skills or a passion for those jobs. All of this was done while the owner was an alcoholic.

The accounting records were highly incomplete for management to monitor its business successes and failures. I discovered no payroll tax reports had been filed with government authorities for the last two years and they were pissed and moving to close him down. And yes, they had great computer software.

One day he said “I don’t know why I have to pay you so much and what the problem is. All anybody has to do is push a few buttons and all the information will be printed out.” I just laughed to myself and answered “Yes, but one has to know what buttons to push and when and in what order to push them in.”

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I was reminded of the hotel ten years ago when “the Cloud” became the big buzzword. All accounting and business management could be done “on the Cloud” now much cheaper. I laughed when I heard of a small company in one state attempting to expand to about twenty states and was going to have it all done on the Cloud.

I don’t think they realized how many state and county tax reports were to be managed, plus all the business licenses that would be required to perform the work they were selling. Then what about insurance and the various payroll taxes and laws in play that must be known. All of this would of course be done by something in the Cloud – right.

What I am getting at is no one will ever get rich turning their business over to a third party and forgetting about it. There is only one real way to get wealthy in business and that is to mind your own business.

Any business that relies heavily on a third party for their survival will fail someday. Just ask any one who depended solely on one supplier forever. When the supplier fails so do you.

The same is true of AI. Do you really think AI will manage all things in your business perfectly forever? Will AI spot two employees colluding to cheat the business?

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If you think AI is all that great then try this. Ask AI to analyze the report mentioned in the above article and give it’s “honest” opinion and recommendation on it managing your business.