Many founders and salesmen know the feeling when they talk to a client, everything looks good, and then after sending an offer…silence.
Selling is, in most cases, about creating volume, the average conversion rate on the internet is about 2%, so in simple terms, about 50 interested clients need to see your offer before one of them becomes your client.
Last week I was listing to an episode of a great podcast Mała Wielka Firma by Marek Jankowski; in the episode, a guest described their strategy that increased conversion significantly from 4% to about 9% by using videos. They did not submit a PDF with an offer but recorded a personalized 15-20 min video and talked about the cooperation proposal.
I had the idea of implementing it in the back of my head. However, it is expensive and time-consuming to implement. The Eureka moment was when I came across AI video generators. They allow the creation of videos based on a provided script.
Well, after testing it in Polish, it is not the best. Only text with common vocabulary is read correctly in Polish, thus significantly limiting its usability. After sending a few offers generated using AI to clients, the response was mostly, “it looks nice, I like it. However, I recognized it is not a human”. Basically, to change prospects to clients, a human is still needed. In English, however, it is tough to notice something is wrong; this is a great tool.
Also, you can further automate this process by using, known by everyone reading this blog post, ChatGPT. For instance, a client sends you their requirements, then you ask ChatGPT to create an offer based on your company’s competencies, then ask ChatGPT to create a transcript and then finally upload it to a video generator.
I believe that in a few months, many SMALL companies will start using AI tools to drive their sales. It is straightforward to use – any starting entrepreneur could have an army of salespeople that work in a cloud…
Today AI is mostly used in big companies, but we are on the verge of a paradigm shift where AI technology empowers small businesses.
Reading Time: 3minutesAtlas Robot. Source: Boston Dynamics.
Artificial intelligence (AI) and machine learning were once considered mere buzzwords, but today, many companies and institutions are utilizing these technologies to improve their operations. While these developments have brought both positive and negative connotations, few people see only the positive side of the recent advances in deep tech. A recent survey conducted by TIDO in 2022 found that nearly 69% of college graduates believe that AI could take their job or make it irrelevant in a few years. Could these fears materialize?
Where we can use AI?
AI is a type of technology that can automate many tasks, but it cannot replace humans in every aspect. Some jobs require specific soft skills that only humans possess, such as leadership, negotiation, sales, business intuition, and building rapport with the team. While AI can assist with these tasks and provide valuable feedback, the ultimate decision-making power will always rest with humans. Studies have shown that most people do not trust AI, and an AI system substituting for a manager would likely not be trusted enough by employees to lead a team, let alone a company. In addition, there are manual skills that cannot be replicated by AI, such as laying cables or tiles, which require human hand dexterity and expertise. A robot cannot perform these tasks as easily as a human.
Where we cannot use AI?
On the other hand, there are multiple sectors in a modern economy that can be fully automated. AI is better at some tasks than humans. Sectors that are most prone to shrink due to AI in the coming years, according to the “Will a Robot Take My Job” portal, are:
Customer support specialists. The customer support sector is one of the areas that is being impacted by the rise of AI and automation. As more companies adopt chatbots and voice bots to handle customer inquiries, the need for human customer support specialists is decreasing. Many common customer support tickets can be handled by AI bots, which can quickly and accurately respond to customer inquiries without the need for human intervention. This trend is likely to continue in the coming years, as AI technology becomes more advanced and able to handle a wider range of customer support tasks.
Accountants. Another sector that is being impacted by AI and automation is bookkeeping and financial analysis. This field is heavily reliant on repetitive data analysis, which can be almost fully automated using AI technology. In fact, many companies, such as COMARCH and InFakt, have already introduced AI-powered invoice OCR scanning and booking, which replaces manual, costly, and inefficient invoice accounting processes. As AI technology continues to advance, it is likely that more and more accounting tasks will be automated, leading to a decrease in the need for human accountants.
There are many others that I could point out all day, but you get the point. Repetitive and not creative work could be automated. But will it be?
What otherfactors will impact the use of AI?
Governments and regulators might be concerned about the potential negative effects of AI on the job market, and they might take steps to protect workers by setting strict restrictions on where AI can be implemented. From a technical standpoint, it is true that many of the jobs mentioned earlier, such as customer support specialists and accountants, could potentially be replaced by AI. However, this does not mean that they will be. In my opinion, some governments might demand that AI systems be subject to “human supervision” in order to ensure that they are not making decisions without human oversight. This could help to mitigate the potential negative effects of AI on the job market, while still allowing companies to reap the benefits of AI technology.
Summary
Overall, while AI and automation can certainly help in some aspects of many jobs, there are still many tasks and skills that require human expertise and cannot be fully replaced by machines. Therefore, while some jobs may be at risk of automation, it is unlikely that AI will completely replace human workers in the near future. Governments and regulators will also play a crucial role in ensuring that the impact of AI on the job market is managed in a way that is fair and beneficial to all parties involved.
Decentralized Finance (Defi). Defi can be defined as all known financial services done in a decentralized manner with blockchain technology. It gets rid of intermediaries in financial services and makes them more secure, faster, cheaper and more accessible to the general public.
Users use DeFi through decentralized applications, they are similar to traditional web apps but the backend is running on blockchain technology.
In comparison to traditional banking, using DeFi dApps do not require fulfilling time-consuming forms and paperwork. All transactions are made instantly and on user demand. The most important factor in DeFi is the lack of intermediaries which impacts transaction time, simplicity, composability and control over funds.
Long story short – thanks to DeFi every person with access to the internet can use financial services which are a vital part of economic development
Decentralised Finance, or DeFi for short. We can describe DeFi as all known financial services, implemented in a decentralised manner, via blockchain technology. This makes financial services in the digital world safer, without intermediaries, faster and publicly accessible, and is also intended to be significantly cheaper than traditional finance.
In 2021 the whole sector grew by 900% and the total value of money and assets located in all DeFi protocols has reached over 170 billion US dollars.
Value of all assets in DeFi protocols. Source: https://defillama.com/
Users use DeFi via dApps, decentralised applications These are similar to traditional apps, but are based on blockchain technology. What benefits does this bring?
Unlike traditional banking, when using dApps within DeFi, we do not have to fill out time-consuming applications to use financial services and transactions are made almost instantly. The most important feature of DeFi is the absence of centralised intermediaries, which translates into the speed of transactions, no bureaucracy and full control over funds. With DeFi, any person with access to the internet can use financial services.
DeFi currently offers three main applications: loans against assets, decentralised exchanges and applications offering trading in derivatives, namely futures and options. However, work is underway to develop other financial services within DeFi, such as unsecured loans, bond issuance platforms and insurance. The future of the world of decentralised finance, therefore, seems to be heading in the right direction.
Going back, let’s take a look at how DeFi currently works, and we’ll start by exploring what decentralised exchanges are.
DEXes
Decentralized Exchanges (DEXes) are applications that allow an exchange of one asset for another without intermediaries in form of market-making institutions, trading houses, investment banks and other market makers.
Decentralised exchanges, or so-called DEXs. These are applications that allow you to swap one asset for another, without the need to register or share personal data, and without intermediaries in the form of market makers or brokerages, i.e. market makers.
Nowadays, in order to buy shares in any company, we have to use a brokerage house or bank, as well as a stock exchange. These are centralised intermediaries that charge fees for their services and require the sharing of personal data in a complex registration process. In addition, and worth noting, often the firms offering this type of service effectively become the owners of their client’s funds. On more than one occasion, there have been situations in which these funds have been frozen or confiscated from their rightful owners, for various reasons that are not always justified. In addition, the hours of operation of the companies mediating such financial transactions, are limited.
DEXs, or decentralised exchanges, are actually applications and programmes that take orders to sell an asset on the one hand and buy orders on the other. These programmes, based on smart contracts, manage liquidity within their markets and automatically connect both sides of a buy or sell transaction, of different types of assets.
DEXs allow trading 24 hours a day, 7 days a week. Trading on DEXes also takes place without intermediaries, but this does not mean that there are no commissions for transactions on this type of exchange at all, but more on that later.
One example of a DEX is the Uniswap exchange, which is currently the largest exchange of its kind in the global market. Uniswap already reaches 10% of the daily volume of the New York Stock Exchange (NYSE). This result is impressive, especially given the relatively short market presence of the Uniswap exchange, which has only been in operation for 4 years.
The advantage of DEX is its simplicity and user-friendly interface. Interaction with the application is limited to a single mouse click on a regular website’s buy or sell button. Trading on DEXs is 100% automated.
DEXes are revolutionary not only from the perspective of investors but also for individuals and entities looking to raise capital.
To raise capital on a traditional exchange by issuing shares or bonds, companies are forced to go through time-consuming and very expensive legal and financial processes. These barriers mean that only large companies choose to issue shares.
In the case of Uniswap or other DEXs going public, raising capital, from a technical perspective, is much simpler and less costly. All you have to do is create your own token using code and then list it on an exchange where investors can purchase it.
Lending Protocols
Another example of DeFi applications are lending protocols. Nowadays, they allow you to take instant loans against assets and lend surplus funds to other investors for a suitable percentage.
This solution is different from traditional banking because we skip the bank as an intermediary and borrow funds directly from another person who has free capital to invest and is willing to lend it to us in exchange for an appropriate interest rate. Currently, most lending protocols, offer loans only against the collateral made of digital assets, reflected on the blockchain. Ultimately, these protocols will allow us to take a loan without collateral, based on a credit rating, similar to that known from traditional banking. Such solutions are already being tested and it is only a matter of time before they will be rolled out to the general public.
AAVE, decentralized bank. Source. aave.org
All procedures within the loan applications, as with DEX, are automated. With just a click of the mouse, funds are sent to the address of the corresponding cryptocurrency wallet – the equivalent of a bank account on the blockchain.
DeFi in today’s economy
The main problems with implementing DeFi technology in today’s companies are hard UX, a lack of consumer knowledge about blockchain technology and a lack of proper regulation.
Many FinTech companies could use DeFi today as a backend platform for their services as blockchain allows faster, cheaper and more composable financial operations than the traditional banking sector.
However, on the other hand, regulations may complicate the introduction of new technology. There is a risk of not meeting compliance standards and being suited by the government.
Currently, DeFi is unregulated, it operates in a quasi-shadow environment where no founder knows what is illegal.
Many propose a full ban on blockchain financial services, like the government of the People’s Republic of China or Pakistan. Yes, there are scams (2 billion USD stolen in total in 2021), and there are some cases of money laundering, but I don’t see it as the best path to stimulate economic development. The potential benefits for the economy are too big to ban it. So what to do?
Too much intervention will slow down sector growth, and not enough will not allow it to flourish. Currently, most of the DeFi applications operate in an “in-house manner” this means that blockchain solutions serve mostly blockchain solutions. This is due to the fact that there is no legal bridge connecting the blockchain economy and the real economy. Many courts do not recognize buying agreements made on blockchain even if in technical and real terms it was the most trustworthy form of signing a deal.
Also, individuals’ control over their funds means no control of the banking authorities. There is a popular opinion that blockchain, cryptocurrencies and Defi empower money laundering and tax avoidance. I believe this is a misconception. Why?
Blockchain means full transparency – every transaction is public. If you sent money from account A to account B, everyone can check it. Furthermore, a new European Union directive called AML6 will enforce on every cryptocurrency exchange identifying and tracking wallets thus mitigating totally the possibility of easy money laundering
Outlook for the future
DeFi is one of the most promising technologies of the early 21st century, but its growth is dependent on multiple factors. Most importantly, regulations.
If DeFi finds itself in a well-suited legal environment, then the sector will flourish empowering finance accessible with only an internet device.
Reading Time: 3minutes Punk #3101. Sold for 510 ETH ($935,187). Source: https://www.larvalabs.com/cryptopunks/details/3101.
NFT is a pretty controversial topic. Some people say this technology was created to launder money or support terrorism.
How can a digital picture be worth 69 million USD (Beeple NFT)?
The value proposition for NFTs can vary, although the basic idea stays the same. With blockchain technology, we are able to price, monetize and own digital information.
Before blockchain, almost every piece of information (or a bit of information) was stored on a centralized server owned by a big company like Facebook or Google.
When you write a blog post it’s not yours, when you publish a digital artwork its not yours. This problem is especially relevant in the digital art industry, before NFTs there was no way to check the authenticity of digital artwork.
Blockchain is a trustless, distributed public leader which in simple terms means that it is a fully independent, trustworthy and transparent server (anyone can validate any information).
NFT means Non-Fungible Token, it differs from cryptocurrency in the fact that it is unique. One NFT token =! the other one even if the information that it represents is the same.
So what are the advantages of NTFs?
Ownership – anyone can own a part of the internet
Authenticity – NFTs allow validating the authenticity of a digital information
Creation of Economic Opportunity – Ownership is transferable, which means that you can sell or exchange an NFT for anything else. Imagine you are a popular pop star and you write a song. You can make this song an NFT and easily sell for example in a charity auction.
And what are the disadvantages?
It isn’t easy to buy an NFT – it requires to setup a cryptocurrency wallet and have knowledge about blockchain technology
Creation of an NFT is expensive – it can cost up to hundreds of USD.
Price is extremely volatile
Most of the projects are scams.
Many of these arguments are a far cry from the objective truth. They more resemble a stereotype than an argument.
Yes, it isn’t easy to buy an NFT or to create it. But the adoption curve is extremely steep and it is getting easier every day. It wasn’t easy to use a spreadsheet in the 1990s too.
The same can be said with respect to the cost of NFT creation. The cost is connected to the very fundamentals of blockchain which at this point has limited transactional capacity, but it is improving. For example, in September there was a major update of the Ethereum blockchain (the most-used blockchain in the world), which improved the number of transactions per second from 15 to a 1000.
Volatility is the price for growth. The faster technology moves the more ups and downs on the road. This is especially relevant to expectations connected to the specific technology. This leads to bubbles and manias like the dot com bubble or NFT bubble in 2021.
To sum up, in my opinion, NFT technology has unprecedented potential to revolutionise all digital secotrs of the e-economy. Social media, gaming, the creator economy and many more. All the disadvantages are only connected to the status quo of the technology adoption cycle and their significance will decrease with time.
