Katie Wilson: Hey, good to be here. Looking forward to this one.
Jackie: Yeah, me too. So let's dive in. there was a recent announcement by Levi's CEO on the Today Show that has sparked a conversation about who truly benefits when corporations invest heavily in artificial intelligence. and you know, It's a big campaign about how they're incorporating AI innovations across different areas of the business. And so while the language around this type of and messaging around these type of announcements can sound customer focused and innovation driven, the reality of corporate AI adoption often tells a more complex story, which is what we're interested in. Especially when the core product, like Levi's, you know, in the Levi's case, their their core product isn't technology, it's apparel, or, another business might be announcing AI innovation, and it's really just some physical product that really doesn't use AI. So we want to dive into what this means. understanding this distinction matters because it affects everything from product quality and pricing to customer service and long-term brand loyalty. From a more optimistic viewpoint, I suppose, in many cases, the customer and shareholder interests aren't always opposed. Customers get better products faster. And when that happens, shareholders benefit from increased satisfaction and repeat business. And we all want repeat business. So why are companies so eager to talk about AI innovation? The pitch usually sounds pretty beneficial. AI will personalize your experience, anticipate your needs, streamline processes, and it might even deliver products that feel more tailored to you. In theory and in carefully crafted messaging, artificial intelligence represents a win-win scenario where companies become more efficient while customers enjoy better experiences and better products. But sometimes the innovation label, just for innovation's sake, to claim that you have this innovation doesn't automatically translate into customer value.
Katie Wilson: Yeah, absolutely. So we're gonna talk a little bit about, you know, what customers should watch for as you're seeing companies announce these changes. So, you know, as consumers, we should always approach corporate AI announcements with informed ears, not just like blind enthusiasm. So you can start by looking at the specific commitments the company's making and how AI will improve your experience. Does the company promise faster service, better products, more personalized options? Or genuine problem solving? Or does the language say very broad and focused on buzzwords like innovation and transformation? With this example, my background's in retail. So retail can has a lot of benefits from using AI, whether it's like product inventory, pricing, dynamic pricing. There's so many things that AI can help with. customer support as well can be helpful in chatbots and et cetera, but you know, you need to look for the specifics. and looking for those actions, like does the AI powered customer service actually solve your problems or does it create more frustration? I think we've all had those frustrating chatbot experiences, and I've also had some really good ones. So it can go either way. Do the personalized recommendations feel generally helpful or just aggressively like upselling you to something? Has the product quality improved or has the company simply automated existing processes? a really relevant example is from this Lee Vy's announcement. If you dig deeper into the story. You'll learn that they're focused on a recent launch of an AI-powered analytics platform on Google Cloud's Looker with Gemini, which is a way to parse through data quickly. Looker is is a product that's owned by Google.
Jackie: Mm.
Katie Wilson: The company says it can speed up analytics delivery significantly. That might sound like an internal business tool, and it is, but what it can look like influences how quickly a company can, like I said before, adjust pricing, inventory changes, predict future inventory, product selection. when consumers' demand changes? Is there, you know, barrel jeans has been like a big trend, right? Could they have seen that beforehand and ordered more, or maybe innovate on what is gonna be the next hot denim purchase? So, you
Jackie: Mm.
Katie Wilson: know, in other words, not every AI investment is customer-facing, but many of them can still affect your consumer experience. all of that matters, not just for consumers, but for anyone really building products or leading software companies. Customers today are increasingly clear about where AI adds value and where it doesn't. I think we can always feel like I think of the All Birds example where they're like, now we're an AI company. And it's like, well, you were a shoe company. What does that mean? so Yeah, you gotta
Jackie: That's what this reminded me of. Yeah.
Katie Wilson: like and I I don't think Levi's is that broad being like we're an AI company. They're saying we're gonna
Jackie: No.
Katie Wilson: use AI to improve our business, which I think is the right way to do it. But you really need to look out for those specifics and understand like what what is like what are they actually offering with AI or how is it making it better for the consumer?
Jackie: Yeah, yeah, really good points. And it and it really brings us to the question that a lot of consumers are increasingly asking, you know, like kind of across all social media and digital forums, is that does every product really need AI? we're seeing AI show up in everything from toothbrushes and refrigerators to productivity software, search engines, and customer support. Platforms. And obviously, some of those make more sense for AI integration rather than your toothbrush. at the same time, consumers are becoming more aware of what they're gaining and what they're losing. our chat box actually improving service, and like Katie said, we dive into this one a lot. We talk a lot about chat box. There has been an improvement,
Katie Wilson: Yeah. Yeah, for sure.
Jackie: even though like I still like have lingering like hate of them from like the 2010s. so another question is Is AI helping or hurting customer loyalty? And where should human involvement remain essential? Which is an overarching question that we consider here in all of our conversations. So, you know, consider some of the most common AI applications in large corporations to dive a little bit deeper into understanding this. Chatbots replace human customer service representatives. Algorithms are optimizing pricing, automated systems, reduce labor costs in warehouses, stores. And back office functions. Predictive analytics help companies identify opportunities for upselling and cross-selling, like Katie mentioned. So none of these applications or AI applications or overlays are inherently bad, but many are primarily designed to reduce costs or increase revenue, which is important in business. Now, the customer experience may improve as a result. But it's often not the main reason companies make these investments. It's typically for, you know, efficiency on their bottom line. And, you know, as we as consumers, put our trust in these brands, these are things we should consider. And then the brands considering AI integration should also consider that consumers are listening to how you're
Katie Wilson: Yeah.
Jackie: integrating these innovations.
Katie Wilson: Yeah, absolutely. And to expand on that a little bit, Jackie, like more tension kind can emerge when companies have to choose between customer experience and cost optimization, which is a lot of times what's behind what AI is powering for them. you know, some questions that might arise are like, should an AI system recommend products customers truly need, or are they customers with the high are they products with the highest profit margin? You can notice that sometimes when you're being upsold things like, why am I being upsold the super expensive thing? Like I actually just need a belt to go with these jeans.
Jackie: Right.
Katie Wilson: should a chat bot focus on solving customer problems or on reducing the number of interactions that have to reach an expensive human agent? So human agents are more expensive. Can they solve what you want? That's fine. I think there's a lot of good use cases of chatbots where they're solving things before human. I did customer support a ton in tech and engineered like a lot of early chat features for my team. And there's a lot of automated stuff that's really good. but at some point when it's more complex, we do need a human, and that does cost more money for the company.
Jackie: Yeah, we we talk about how we like a quick escalation to a human. Yeah.
Katie Wilson: Yes. Yes. Option to escalate. And and should dynamic pricing reward loyal customers or maximize what each customer is willing to pay? So when we get into like the the world of having a lot of data and you can see what a customer's lifetime value is to the company, if they spend a lot of money, are you upcharging them or or not offering them discounts because you know how they have the money to spend, for instance, or you are we doing dynamic pricing for each logged in user? that can get a little tricky in terms of if it's actual savings or if they know something about you and they're pricing it accordingly. So companies are implementing these AI decisions every day. These aren't hypothetical. and that's why, like as a consumer, when you're evaluating a product or a business, it's really important to understand how they're integrating AI. And as a retailer, like how that affects you as a consumer. And whenever a company announces a major AI initiative, it's worth kind of breaking it down with a few simple questions like. Is AI primarily saving money? Is it increasing revenue? Is it improving customer experience? And how is success going to be measured? And you can see this a lot when maybe not in the initial rollout for the company, but you'll see it in their quarterly business reports and see how they're using AI. And you know, for consumers, what this really reveals is whether it's creating real value or just driving efficiency behind the scenes. And for product leaders and software companies, it's a really useful framework for ensuring that AI investments don't just benefit the business, but also can build strength and strengthen customer trust, satisfaction, and loyalty. So something about AI is making your product or the experience better for users. That's something you want to showcase. You know, AI is going to become increasingly central to how all companies operate. And but customers should expect transparency and know when they're interacting with AI. How our data is being used, and whether the technology technology is being deployed to serve our interests, or simply extract more value from us and from our wallets.
Jackie: Yeah, yeah, really great things to think about. And I like how you broke that down and how the consumer can ask those questions and leaders and builders can ask those questions too. Really insightful concepts. So to summarize, AI can contribute to innovation. The technology creates possibilities that didn't exist before. but innovation alone doesn't answer the question of whether an AI strategy primarily serves customers or shareholders. the Honest answer might be both, but not equally often and not always at the same time. Companies will naturally prioritize shareholder returns because that's how corporate governance works. And the real question isn't whether companies will benefit shareholders through AI adoption. It's really whether customers will benefit enough to maintain their loyalty and trust. And trust is something we talk about a lot on this
Katie Wilson: Yeah.
Jackie: podcast that we know is super valuable to any brand. and the most successful companies will be the ones that figure out how to make AI serve both groups, creating experiences so valuable that customers happily return while also generating strong business results. Whether it's Levi's or any other company making similar investments, striking that balance remains to be seen and how we can strike that balance. You know, we're still all working together navigating this AI era. but asking these questions is the first step toward holding people accountable for their promises and messaging around AI innovation. All right, so let's move on to Love It or Leave It.
Katie Wilson: Right.
Jackie: first up, okay, this one's a funny one. I mean, I I'm gonna I'm gonna talk about this. It's not really funny, but I thought it was funny because there's a lot of photos on social media about what people wore to this event, but that's not what we're talking about. first up is Alan and Co. At Sun Valley. every summer, the Allen Co. Sun Valley Conference brings together some of the world's most influential leaders in technology, media, finance, and politics behind closed doors. Known for its exclusivity, the event has become a place where major business relationships, partnerships, and industry conversations often begin. While these relationships can shape industries and create new opportunities, they also raise what I think is a more important. Question about leadership. Does spending more time in exclusive circles help executives build stronger companies? Or would more time listening to customers, employees, and communities create better decisions? So love it for these exclusive events being the primary focus of your year, or leave it for more focus on real-world customer-centric experiences? What do you think, Katie?
Katie Wilson: Yeah, I mean, I think I'm a bit in between. There's a place for it. I think it's nice to get leadership together. But I think what this is turned into, and kind of like Davos and other things too, is just like it's a playground for the ultra wealthy billionaires and for like all this really super C level executives. Like, no even normal VP or executive is going to this. Like it's the top of the top. So it's super insulated. and I don't know, like it's and it's very secretive too. So I think they skewer this pretty well on succession. There's like one where they go to like a Sun Valley-esque retreat and it's just like so dumb and generic looking and just it not exciting. I and we talked about can before and I think can is kind of the anti th antithesis of this, like where can is exciting
Jackie: Yeah.
Katie Wilson: and creative and like trying to be a little more fun because it's about advertising and media. So I'm kinda I think I'm overall leave it. Like I think they're much better served, like thinking about their consumers and their customers. get it there's like real world financial issues and things that that are at stake here. But I think a lot of times it's like just very hoity toity and super high level and not a much action comes from these things.
Jackie: Yeah, I hear you on that. Yeah, whether you're a CEO or an administrative assistant, right, finding a support group from your peers is valuable, but I have a feeling that that's not totally I I have a feeling these leaders have enough of that. too often they become disconnected from their customers, especially at that level, right?
Katie Wilson: Yeah.
Jackie: I mean like Meta glasses no one asked for and he keeps trying to push them over and over again. Like he's obviously disconnected.
Katie Wilson: Yes.
Jackie: So yeah. I think they could spend more time outside exclusive circles and closer to the people that their decisions are impacting. So all right.
Katie Wilson: Agreed. All right, up next, Polaroids anti-AI campaign. The campaign celebrates authentic real-life photography by encouraging people to capture moments as they happen instead of relying on AI-generated images. The campaign reinforces the brand's long-standing identity as a champion of tangible memories and human creativity. do you love how this campaign successfully connects with today's audience and trying to connect with Gen Z? Or is it a leave it for overlooking the ways people use AI as maybe a creative tool and like AI?
Jackie: love it. I don't think that
Katie Wilson: Yeah.
Jackie: it was very anti-AI creativity. getting us all to be more tactile and a little bit more analog. I'm all for that. So I love it.
Katie Wilson: Yeah, me too. Wait, you can see my is it over there? Yeah. I have a I have a Polaroid behind me. Yeah. I have a Polaroid behind me. I love Polaroid
Jackie: Do you have a pull a vintage polarite? you have lot.
Katie Wilson: as a brand. I love their product. I love the tactical, like tactile nature of yeah, like seeing it develop. And kids love it too. Yeah, you know, like my kids love to have it out for parties and stuff. So I'm all about bringing Polaroid back. I don't really think it's ever gone away, but I I do think it's an like a good, like example of like anti-AI in that it's real. Like you can't touch it up. You can't put a filter on that picture. And it's tactical
Jackie: so true.
Katie Wilson: and something you can pin up and hold, right? So I think there's a use case for both. You know, I think, you know, especially Gen Z, they want to be well versed in AI tools and video and photo creation, using AI and editing. Those are all great uses of AI. But it's also something real about taking a photo and watching it develop. And that's the one take you get, you know? So I think you know, I'm a big fan of Polaroid. I think the ads are clever, minimalist, very cool looking. so yeah, I'm a fan.
Jackie: Yeah, fun campaign. And you're so right. Just that experience of watching it develop is like one of the coolest innovations ever.
Katie Wilson: Yeah, it's so cool.
Jackie: Yeah. All right, so let's talk about one more. The Startup FIA, an AI shopping agent startup, alleged fraud initially uncovered by a former Harvard professor, claiming the company has been using forced click or cookie stuffing, essentially injecting their own referral codes so they would receive. Affiliate attribution that may not be accurate, hence the alleged fraud. A FIA spokesperson claims the activity in question was a bug and has been fixed. The founder also happens to be the daughter of Bill Gates. So,
Katie Wilson: Yeah.
Jackie: love it or leave it, for AI shopping agent startups founded by well-funded Nepo babies, should they be more aware and responsible around the foundations of business success and real innovations in their products? Or can they just rely on a giant marketing budget to manufacture hype and perceive success or something going on in the back end that we're all unaware of? When under the hood, you know, real innovation may not actually exist.
Katie Wilson: Yeah, you know, I was disappointed to hear this because I've a big fan of Fiat. I like the tool. It's like a a browser extension. Basically, if you're a shopper like myself, you can say, I want the specific pair of pants, like look across different platforms, set alerts of like when it goes on sale. So overall, I thought it was a useful tool and I liked how they were marketing and stuff. But yeah, if this is true, it's very disappointing and definitely leave it. You don't want to overstock stuff your data or like double count data, like they, you know, they're claiming they're doing through affiliate codes, etc. because we all know we're come from the marketing side and deal with data all the time. and that's what investors might base usage off of. So if you're lying about the number of active users you have, you know, that's a big red flag for investors, you can get in a lot of trouble. So it's definitely something where, you know, and they haven't replied yet to this claim. So we don't know what their POV is or what they can prove. But yeah, I'll definitely be interested in seeing that because I think it's important. Especially if you have a microscope on yourself, if you're any kind of like Nepo baby or, you know, of celebrity brand, you know people are gonna tear that apart. And so you have to be
Jackie: Yeah.
Katie Wilson: on the up and up on on everything.
Jackie: Yeah, we don't have the full story, although they did come back with a response saying it was a bug. But yeah, I don't
Katie Wilson: Okay.
Jackie: I don't think being in startup mode is a good excuse for ignoring
Katie Wilson: No.
Jackie: the fundamentals. When there's especially you know, when there's a large budget to work with, you know, in the startup phase, you can often have a scrappy approach, but when you're Bill Gates' daughter, you can never claim scrappy or any variation of
Katie Wilson: Yeah, yeah.
Jackie: that. So relying on messaging that dramatically overstates the value they're bringing to the market or to their shareholders makes no sense when you're well funded. You know, your product
Katie Wilson: Totally.
Jackie: should be able to back up that messaging and what it claims and really represent the value realistically without needing so much hype to fill in the gaps where the founder may have overlooked what's really going on. So yeah, I leave it with you. But TBD and what the full story is.
Katie Wilson: Yeah, this will be an interesting one to follow up on.
Jackie: Yeah. So as we wrap up this episode, responsible leaders recognize that long-term shareholder value depends on customer loyalty before AI and after AI, because short-term profit gains can only go so far. The strongest AI strategies will likely balance efficiency and innovation with real customer relationship building and the preservation of human innovation and strong communities that benefit all of us. So good seeing you today, Katie.
Katie Wilson: So
Jackie: Just a reminder where can everyone find you?
Katie Wilson: You can find me on LinkedIn at Katie Wilson and Serious Moonlight Consulting, both on LinkedIn and Instagram. And you can subscribe to my newsletter, Sales Isn't a Dirty Word, on Beehive. how about you, Jockey?
Jackie: Yeah, you can find me on LinkedIn at Jackie Gutierrez and on Instagram and TikTok at Business GrowthGal. And follow botboundaries at botboundaries on Instagram, TikTok, YouTube, and LinkedIn. Thanks for listening. Make sure to subscribe wherever you get your podcasts. We're available on all platforms and also YouTube. Bye, Katie.
Katie Wilson: Bye bye.