Episode Transcript
[00:00:02] Speaker A: And we are live. Welcome to Real Talk with Andres and Heather. The podcast where we say the quiet part out loud about real estate, business and the situations nobody warns you about, all while being live. So if we have any errors or mistakes, they are not edited out and
[00:00:18] Speaker B: we usually have one or two of those throughout the day. And this is in question from stage to reel of highlight reels of social media.
This is real stories, real mistakes and real consequences from agents, buyers, sellers and business owners living it in real time. So if you're tired of the sugar coated advice figures and playing small because nobody tell you about it and how it really works, you're in the right place.
I'm Andres and this is Heather. Let's get into some real talk.
[00:00:47] Speaker A: Let's get into some real talk.
We've had a lot of real birthdays this week.
[00:00:53] Speaker B: We had over the past. Yeah, absolutely. I think it's, it's going by fast, huh? These years are just fine. But just remember we were celebrating New Year's and we.
And we shut down the podcast for two weeks during the year and then it just been running ever since and you were not on board Thursday. We. Which I totally screw up. If you haven't watched that video, I totally screw it up live.
[00:01:25] Speaker A: So I haven't watched.
I bet you did fine. I'm sure you did good.
[00:01:31] Speaker B: I don't know about that.
It just, it just shows. I need Heather here.
So how was the birthday with your.
[00:01:39] Speaker A: It was good.
No, his birthday was really good. We went out there and had lunch, took him to the park and he has a little like bumper car thing that he drives and. And then he got a new bike from his great grandparents and he was riding his bike and then his sister was in the little bumper car. So it was, it was good. And then your birthday was shortly after that.
[00:02:00] Speaker B: Yeah, I would just. I spent it at work at a new community and then just went out to dinner afterwards.
But really my birthday gift was the next day. The next day. One of our local store, bookstore, they have used books, wide range of anime, vinyl books, kids section toys, all the video games, classic video games. Like I go in there and every time I go in the stores, I'm there for at least an hour, an hour and a half.
You take me to any other store, I'm bored within five minutes. Sometimes I don't even go in. I told my wife and the kid, like, you guys go shopping, I'll wait in the car.
I'm bored for somehow I'm just not. I don't have the patience anymore.
But you walk me into the store and I'm. I'm a kid again.
So they had a sale over the weekend that every used book was a penny per page.
So I thought that was a great deal. You were getting books over there, 7, 10 to $15. You're getting them for less than $3 because of the number of pages.
[00:03:12] Speaker A: That's awesome.
[00:03:14] Speaker B: They limited you to five.
So I had my wife create an account and say, okay, you have five books, but if you don't have five, if you can't find five books, I'll use the remaining one.
So, yeah, I came out of there with seven books and she had three books.
So Jay was great. I love that.
Some great titles. I'm excited to sit down, get reading.
And then it was your birthday as well. So we have birthday within the same weekend to us one.
One of these years, we have to get together and celebrate all of them. Tony, right?
[00:03:54] Speaker A: It's a giant birthday bash.
[00:03:56] Speaker B: Yeah, that's right.
[00:03:58] Speaker A: When's Ellie's birthday
[00:04:01] Speaker B: dinner?
[00:04:02] Speaker A: Okay, so he's January, Tony's January, she's February or March. Yeah. So we can just do it like a giant birthday bash and that'll come up.
[00:04:10] Speaker B: Yeah. So them two are January and we're.
[00:04:13] Speaker A: He's February, she's January, he's February or March.
[00:04:16] Speaker B: I'll see. There you go.
We can make it all happen like
[00:04:21] Speaker A: the first three months of the year, and then we're done. We're like, that's it. All birthdays are handled.
[00:04:27] Speaker B: Yeah. Everybody else, you guys, you get so. Man. And today. Hello.
What else is going on in the business world for you?
[00:04:36] Speaker A: Well, I don't know about the business world right now, but I know in the allergy world, everybody's dying.
[00:04:43] Speaker B: Sign me up for that one. I'm. It's been crazy. I think people saw on Thursday.
My allergy's been acting out my eyes.
Everything for the past two weeks is just non stop sneezing, watery eyes. It's been bad.
So definitely I'm on that wagon of the allergy train.
[00:05:03] Speaker A: I know everything is covered in yellow. Our cars are. Most of our cars are black. My car is not black, but Tony. And then our son's car is black. And it's just. They're yellow now. So everything's covered. And everything is just covered in pollen. It's everywhere. Normally, allergies don't really bother me, but this year, man, they've.
They've gotten to me so pretty bad. This year, if the allergies are bothering me, it's pretty bad.
But back to the relevant work part of it.
We're still dealing with the AI wars and technology and everything. That's, it's, it's an interesting time. It's a crazy time right now, but we are very, very close, you and I, to launching what we're going to be launching.
And I'm super excited about that. Super excited about the people we're having that have already, like, signed up to sign up. And so they'll be the very first ones that get to get to use it and experience. Experience it. And it's really interesting. What I'm seeing a lot right now is kind of what we've talked about over and over again. A lot of people just throwing things up just to have, like, something up and to be part of the movement and be part of like, the first ones to have something and then, and then it crashes or it doesn't do well. And that's what I'm trying to avoid. And then a lot of it isn't even really their fault because you're only as strong as your foundation. And there's been a lot of days where the major players are having issues with their OpenAI sources. So I'll go to use something. And that system is down. And I'm like, are you kidding me right now? But if your system, you know, needs that system, relies on that system because you've stacked things, you know, it kind of puts a halt on what you're doing too. But as overall, these things are amazing and they're definitely going to be industry changing. However, I think the fear of AI putting everybody out of a job is unfounded. Now, some people will be put out of a job, but it's not gonna be everywhere.
[00:07:15] Speaker B: But, but that's the, that's, that's the reality of it. And I think we, we saw it coming.
We just didn't expect it as fast as I said it's coming up.
[00:07:28] Speaker A: Yeah, right.
[00:07:30] Speaker B: And then it's gonna catch people by surprise. And still they know about it, they see it, and, and yet when that decision happens, most likely it'll be surprised when it does. But of course, there's some, some human elements that are necessary in every business. And I think that's also, you know, where you have to go in and identify what that is and improve on it. And at the same time, you can use the AI tools to provide an even better service on what you're doing. So just a matter of how you're looking at it and how you are implementing it.
[00:08:06] Speaker A: In your business it is. And about, you know, who's going to sit here and argue with your AI every single day? Like, oh, that's. That's me. I'm the one who's sitting here arguing with my AIs.
It's funny because.
So I use cloud code work anthropic, basically, and there'll be times where I'll give it a prompt to do something, and it'll do like, half of what I said to do, and then it'll tell me it hit, like, blockages or for whatever reason it couldn't do the other part of it. And it'll give me like an itemized list of do this, this, this, this, and this. And I'm like, no, if I wanted to do it, I would have done it. I told you to do it. So then I have to go in and. And reword the prompt or maybe like, do something that prevented it from doing what it needed to do. So it can do it. So not horribly worried about AI taking over because there's multiple times now I've experienced where it wasn't able to complete a task without, you know, human intervention. But it's learning and at a rapid pace.
So soon we won't be in that position where I have to go in every time and restructure what it needs to do, because it'll just learn how to do what I'm asking it to do without me having to do that.
[00:09:22] Speaker B: So I was gonna say definitely.
And it keeps growing and it keeps adjusting. And like I said, it's gonna keep identifying what it needs to solve the task that it has in front of it that it currently cannot do. And at some point it's just gonna be like, okay, is this what I need to learn? Let me learn it. Let me attach the skills and then come back and get it then.
And two weeks, like, we. We wear it like that in the same capacity we do. It just takes us a lot longer to process all that and learn it and then apply
[00:09:55] Speaker A: does. We're just not as good at storing memory. Well, sometimes the computers aren't good at that either. You have to program them to do that. But we're not as good at being able to just like, pull a file from the back of our brain and insert that into, you know, the situation that we have. So it's has its benefits, though. I can definitely tell you that I've gotten way more accomplished more quickly than I would have if I did not have these tools.
[00:10:26] Speaker B: Exactly. And that's a key word, you know, you Accomplish a lot more than you would have if you didn't have tools. And then depending on what you're doing and what area of the business you implementing it, just imagine, you know, the outcome of it. In some businesses, it's just triple the production. In some areas that right now someone is doing by themselves.
[00:10:53] Speaker A: And then, and then I get, you know, like, spoiled and have unrealistic expectations and it'll all give it an assignment and it'll come back and it'll tell me, okay, it's gonna take me like an hour and a half to complete this. And I'll be like an hour and a half. No, no, no, no, no, no. Haven't done it like five minutes. I'm like, that's not realistic. But for me, I expect that instant gratification. And even with AI, that's not possible. Sometimes when you're asking it to create something that, you know, would have taken me like a couple of weeks, and then I'm just expecting AI to just be like, boom, it's done.
[00:11:25] Speaker B: Imagine having you as a bus.
You're like, three hours? Hell no, you got 30 minutes. Let's go get it done.
[00:11:39] Speaker A: Like for real. As I, like, I need to work on my unrealistic expectations. I'm like, if I can think it, you should have it done by the time the thought has left my brain.
[00:11:49] Speaker B: You have a showing agent for you. Hey, I'm gonna show three, three properties. You have two hours and they're 45 minutes apart.
[00:11:55] Speaker A: Right.
[00:11:56] Speaker B: Okay.
Good luck.
[00:12:00] Speaker A: Like, what about traffic? Not my problem.
[00:12:03] Speaker B: Yeah, you get there, you show the
[00:12:05] Speaker A: property, figure it out.
[00:12:10] Speaker B: Yeah, that's gonna be interesting. Heather, man.
Hey. Actually, and today's one of our what would you do? Sigmund and I have a scenario along this line of what you're just talking about. So this is perfect, this is perfect timing.
So you ready for this?
[00:12:31] Speaker A: I'm ready for it. And just a quick note, guys. To our listeners, this is a dramatized story, not a real client situation. But every single scenario that we talk about is based on situations that agents and clients and business owners experience all the time.
[00:12:47] Speaker B: In this particular scenario, it may be happening soon rather than later, depending on how things are implemented. So we call it the digital gatekeeper, Right?
So you own the local table as a restaurant, a high traffic restaurant, bakery. For the past 10 years, you've run everything manually, Heather.
You know, paper tickets, basic cash register and phone in orders. Your staff knows every regular by name. But your overhead is high and you're losing money on human error. Forgotten Side dishes, loves receipt and ordering too much flour that ends up expiring. Right.
[00:13:34] Speaker A: Okay.
[00:13:36] Speaker B: So.
All right.
A sleek tech company offers you an AI integrated management suite which right. It replaces everything outer ordering sensors in your pantry track usage and automatically places order with suppliers when stock is low. Your digital presence handles all reservations. The overviews Instagram DMS menu offers right.
And smart receive. It tracks customer habits to send personal life with missing coupons. So it's like you're walking into Walmart Target type of thing, right?
They already track all of the movement that you do at the storage and all of a sudden you get it. You know, you get a NAND for that particular product that you looked at.
So the system is a closed loop to get efficiency and you have to give up control and you don't get to double check the order before they go out to supplier. And the AI voice iMessages sounds professional, but a bit cold.
So now here's the problem.
On Thursday night, one of your biggest weekend of the year, there's a local festival that starts tomorrow.
You notice that the AI order has flagged your tomato delivery as unnecessary because it predicted some rainy weekend lower foot traffic. But your local weather app says that you're going to have a sunny beautiful day.
And now the unfamiliarity.
You try to override the system, but the interface is maze predictive analytics.
You don't. You know, that's where you don't understand.
You have no idea how to place a manual order anymore because the old supplier accounts were migrated with the AI encrypted portal.
And your floor manager is panicking because the new digital kiosk is hallucinating wait times, telling customers two hour wait time and half the tables are empty.
So this is what, what would you do Moment, right?
The system is optimizing for maximum profit per se. It's cutting costs on inventory and managing the crowd to ensure the kitchen doesn't crash.
You don't touch the setting, you just trust the data and it goes back manually. If you go back to manual, you will lose. You know, you'll have 30% waste like last year.
Do you take a step back and let the machine run the show?
Or do you have said no longer a traditional shop owner but a data manager and you trust the AIs know something you've done about the festival crowd and inventory?
Or B did you go back to your comfort zone manual override? You pull the plug on the automation for the weekend. You spend all night on the phone with suppliers trying to fix the orders manually and go Back to the paper tickets for the festival.
The goal is the human intuition and the personal touch.
So what would you do?
[00:16:48] Speaker A: There's so much to unpack there. And so how do you want me to answer this? Do you want me to answer it like somebody who is a programmer and knows how this should be done or as like the business owner themselves?
Both
[00:17:06] Speaker B: Pick one and I do. If you want, I can do the business owner and you do the program.
[00:17:12] Speaker A: Okay, so you do the business owner. You go first.
[00:17:15] Speaker B: All right.
For someone who worked in the warehouse industry for a while, I love the automation.
I love where that AI tool is integrated to help keep the cuts low on inventory, staff and everything. I love that aspect of it. I think this is an essential tool.
But at the same time, given that it's a local event and it's a one time event, it's hard for identity for the system. Especially as a business owner, if you're familiar with how event goes year to year. Right.
You have inside information, you have connections, you have relationships on what the previous year have worked on. I think this is a key point where you should definitely have a say more manually because the AI is used to predicting consistent outcome throughout the year and not necessarily these particular events.
And coming in as a business owner, I think that will be a key moment to do that, Take control over that Option B, order, contact suppliers, order additional supplies that you will need for this event and find a way to make it happen so that you have everything that you need on the table and you have that personalization with clients coming in.
If you have some extra supplies afterwards that you feel you need to get rid of, you know, do an additional sales to bring things back on track and not lose as much inventory if there's an, you know, overload of supplies left. But I think it's essential to take control over that and be able to get what you feel you're gonna need based on your experience and your connections, your relationship with the clientele that is coming in and it's expected during the events.
[00:19:30] Speaker A: Yeah, no, I agree with that. I think in that moment, in that situation, probably for that business owner, the best thing to do at that particular moment would be. Yeah, to just halt the AI activity, go to manual for the weekend, get through the festival and then go back to their regularly scheduled program with their AI because that, that festival is going to be important.
From the story, it sounds like the, this is a very mom and pop shop. Their whole business model is like customer service, hands on, you know, like a face, not AI. It's, it's very like, you know, customer facing, what's the word I'm looking for? Small business type, where, you know, they're the ones. It's an actual person, not a machine that's running this business.
So to go from that to straight up everything being AI is a huge adjustment.
Now that being said, I think it's definitely going to save them a lot of money in the long run, especially implementing something like that. However, there needs to be certain overrides. And then also every, every system is going to have hallucinations, it's going to have glitches, it's going to mess up on occasion. And anybody says that ours doesn't do that, they're lying because it does. And there's no way to, you know, I mean, there's going to be outages, there's going to be things that happen.
It's all about the customer service of the system that you have and how they deal with that and how they handle that and make sure that they can get it back up and running. But there needs to be like, for example, yes, it's going off of data and it's saying, okay, based on like the weather and based on, you know, the customer patterns, we're not going to be busy this weekend. But you know, you have this event coming up. There needs to be a way to enter that into the system. There needs to be a way for them to say, hey, we have a catering order or we have an event that we're doing or you know, because like you don't know if you're going to have a wedding or you're going to have like this event thing that they're talking about doing. And you need to have a way to put that in the system and the system be able to handle that. And right now it doesn't seem like they have that. And then there needs to be an override for when the system is hallucinating. And it's like there's a two hour wait and you're like, there is nobody here. There needs to be a way to override it and be like manual override. No, there is no two hour wait. There's, there's nobody here and it doesn't seem like they have that in place as of yet.
So you know, the, those need to be there. And maybe depending on the type of program it is and how like flexible the system is, if it's an all or nothing, then it's an all or nothing. But maybe they don't want the entire package Maybe there's certain things that they want to keep the hands on the manual and maybe the, you know, when people call booking reservations by hand is something that they want to keep manual that's you know, up to them if they want to do that. But I definitely think like the ordering and the invoicing, the books, everything like that should be done with the AI systems if they can.
[00:22:38] Speaker B: Yeah, absolutely. I think there's a number of, there's different levels that you can implement in there and in this case you can say it sounds that there should be a manual overall override for orderers and for labels because then there's a two hour wait and if I'm a customer and I looked online and there's just, and it's telling me there's a two hour wait, you know, and then you call the place and no, it's empty, please come in. Like hold on.
A lot of people that if they're able to see that information online may be okay, let me go somewhere else just because they saw online there's a two hour wait. So that's a very important detail that needs to be look into because if the system is hallucinating like that you're losing deals, you're losing customers, right?
[00:23:31] Speaker A: I don't know but the restaurant that Tony and I went to for lunch yesterday for my birthday, I looked online and it said they were closed and I'm like oh man, they're closed. And he called them and he's like they're open. So I mean it happens, you know, it happens all the time. And I'm like it seemed weird that they'd be closed in the middle of a day on a Monday but it was a gluten free restaurant, the entire restaurant was gluten free. So I'm like maybe. I mean they keep weird hours sometimes when they're specialized restaurants so who knows. But yeah, so like little things like that.
[00:24:05] Speaker B: No, it definitely is.
Think about all the people that looked online and just don't bother, you know, and if, if that information is not updated you, you're losing customers and you don't even know about, you know and it's identifying with the AI the little things that are going to bring more traffic in and that you're able to save a lot of money in and integrate the automations in place so that not only are you saving money but you're saving time.
Time from yourself, time from staff that can be allocated elsewhere and it's really sitting down and identifying this area, not just integrating a system that Will automate a number of things. And then you have a situation like this where you cannot override it. And if you override it, will completely shut it down. So there has to be a way to override certain areas and making sure that the things are updated consistently to my. Some of the traffic coming in.
[00:25:11] Speaker A: That just seems to me like a bad setup that you can't override anything, Otherwise it would shut the whole thing down. Because, like, for me, I would say, no, I need a system where, yes, it'll like, audit everything and it'll put the order together, but I need to approve the order before the order goes out. Because, again, what if it hallucinates? And instead of, like, three pounds of tomatoes. Because that's what it said we need it. It orders, like, 300 pounds of tomatoes, and then I have, like, all these tomatoes show up. And I couldn't cancel the order because it wouldn't let me cancel the order.
So I. I definitely think you need to have control over what order is replaced. Would be like, my main thing.
[00:25:55] Speaker B: But, yeah, and it's in the.
It says more or less just sending those for approval right before going out.
Certainly there's some adjustment to be made in that particular AI tool. I think it's a great idea. Then there were, you know, right track. It's just a matter of making a small adjustment to maximize its use and better usage and protect the owner, you know, because like I said, instead of 30, you have 300 pounds of tomato. That's a shitload of tomatoes.
[00:26:31] Speaker A: Right. And then how about, like, what are you gonna do with all those tomatoes? And then when they go bad and they're like, when I just spent all this money on these tomatoes, it's gonna be one hell of a festival.
[00:26:44] Speaker B: I guess they're gonna be making tomato sauce now, but.
[00:26:48] Speaker A: Yeah. So for. What would you do on this? I would definitely just stop the program for the weekend and go back to manual and get it all under control, and then go back and then maybe have a meeting with whoever it is that's operating my platform and be like, this setup isn't quite working. We need to tweak some things and go from there.
[00:27:12] Speaker B: Absolutely. I totally agree. I think shutting it down for the weekend, running the festivals, and then making adjustment afterwards to ensure that it's.
It's working accordingly to what you need, and. And it's able to identify and input the data of this festival to help prepare for future events.
So, yeah, I think it's a great scenario. We may see a lot of this happening. Because I bet you there's already places like that that are integrated with AI tools in their business and there's more to come.
So I'm excited to see more and more cases like this and see how they're integrated it into different businesses. Because again, it's, I think it's a, it's a thing moving forward and it's
[00:28:02] Speaker A: gonna be a learning process for everybody.
It really is. Because there's a lot of people who are resistant to it and then there's people who are hesitant. So it's just going to be a learning process and the learning curve for everybody.
[00:28:14] Speaker B: It is as much as it is for the software company, identifying everything that particular business needs as well as, you know, the business themselves. What do they actually need it for?
You know, it's a learning process, but I think some collaboration they can tune in into exactly what it needs and the AI itself will learn the necessaries skills to be able to the things that they need. So I'm excited, I'm excited for this thing to be out there because again I was in the warehouse industry for, for 12 years. I think it's essential tool that, that will be helpful in some areas.
But like you said, having that, that extra step to ensure that the order going out was crazy. Trust me. There was a number of times me, I placed an order for an item, then my supervisor came back to me, my manager said, hey, do you really Want to order 30,000 of these items? I'm like, no, you won't bring that down.
And the funny thing is sometimes the order even went through. And then I had the supplier calling me and say, andres, I think you made place. You put the wrong number in this order and your team didn't catch it.
And I was sitting there with a $50,000 bill and they're like, yeah, actually yes, not that much.
[00:29:46] Speaker A: Hey, at least they called you and they weren't just like woohoo, big order.
[00:29:51] Speaker B: You know what, there were some people that, here's the key part of a business that would never change the relationships, right? Because there's a few people that I built relationship with that every time they said something was off, they called me up.
Even the truck drivers, if they see a number of pilots for an item, they will even tell me, hey, I got these number of pilots coming in, is that okay? Or should I take him back before I even offload them from the truck?
You know, and whether it was me or another team member that place the order, they will call me and let me know, hey, I noticed this is more than usual what's going on here.
And I'll let her know. Oh, we just have a special project going on. I do need that many. Can I get that this week or when can I expect the rest? And there's anything on back order but that relationship. There's places that I didn't have that, that would just send the order and next thing you know, I got to send them back. I got a processor return. Because you know what? It was an honor mistake. We put an extra zero in there.
You know, I meant to order 25. I could. I meant to order 20. I put 200. 200 cases of this thing. Like.
And some people just disregard and just process through, you know.
So there's two things. It's the human element and actually caring about your job. Because if you do and you pay attention to all those little things, you identify that. Okay, my usual orders, 30,000 and 90,000.
[00:31:32] Speaker A: Well, it's good that you worked with the same group of people all the time and they. Everybody was on the same page and nobody was, you know, just trying to make a quick buck. So it all worked. It all worked out.
That's really good. But. All right, guys, we gotta wrap this up now. And you guys heard the story. So let us know what, what you guys think in the comments. If you, if you would just shut everything down or if you would just eat the cost of it, what would you guys do? Let let us know what you would do in this situation.
[00:32:05] Speaker B: Absolutely. And in this episode, when you're uncomfortable, fired up a few scene good. That's the point. It show doesn't exist just to entertain. It is easy to start a conversation, challenge better vice and help you make smarter moves in real estate and in business.
[00:32:20] Speaker A: And if you want to be and if you want to be part of this conversation, not just listening in, go to our website, www.realtalkha.com and you guys can join our Real Talk community. You can be a spotlight guest or you can jump on the show with us on Real Talk on what would you do? And am I the asshole to weigh in and give your opinions,
[00:32:40] Speaker B: do us a favor and like it, Share it or send it to someone who needs to hear it.
[00:32:46] Speaker A: And don't forget to subscribe so you guys never miss an episode. And we'll see you guys on the next one.
[00:32:52] Speaker B: See you next time with more Real Talk. We had the.
