The Strategy Page: AI Search Edition

At a glance:

1. How new AI search tools are going to change everything
2. Gen Z will outnumber Boomers in the workplace this year. What will you do about it?
3. How regulation is impacting insurance markets
4. Enjoy the Sho
5. Book recommendation –?The AI Whisperer
6. Video by Marc Emmer: Mission, Vision & Values

How new AI search tools are going to change everything

The last 30 days have been rich with news, from a new presidential ticket to the Olympics. But a major development has flown under the radar. OpenAI announced it was releasing the test version of its search engine. SearchGPT will aggregate news articles from sources such as The Wall Street Journal and The Atlantic. This highlights a difference in results one might find in a tool such as Gemini (Google’s chatbot) or ChatGPT.

All this during a time when a federal court has found Google to be in an illegal monopoly, in part because of allegations that it shuts out competition from its search engine. So, internet search is about to change in a material way that will impact every business and user.?

In his new book (see recommendation below), fellow Vistage speaker Severin Sorensen educates us on the power of Two-Prompt Journey Threads, which is one way to enable the use of generative AI. In a two-prompt thread, you use AI output to tackle multiple related problems. Sorensen offers this potential use case: Imagine asking a chatbot to analyze five customer personas for a given industry—say toy manufacturing. Then based on that response, you could run an analysis of your website, or that of competitors.

As generative AI models become more complex, our usage of them will also become more sophisticated.

Gen Z will outnumber Boomers in the workplace this year. What will you do about it?

It’s true; 2024 marks the year there will be more Gen Z-ers than Boomers in the workforce. By 2030, they will represent 30% of all workers.

Often misunderstood by older workers, Gen Z are the first Zoom generation in the workplace. According to a new?study by HiBob , 40% of Boomers think young workers are ill-prepared for their careers.

A shocking 54% of younger workers are disengaged, and almost half intend to change jobs in the next two years. A third say they would quit without having another job lined up. Why all the discontent?

Management, often dominated by Boomers, is unwilling to meet these workers where they are. Gen Z grew up on Zoom and iPhones, not in face-to-face meetings. They weren’t trained to look you in the eye when they talk to you. But that doesn’t mean they can’t be productive. To the contrary, their ability to use technology is an advantage.

Ironically, 53% of Gen Z prefer in-person meetings, and 56% want to work in an office four days a week. But owners and managers need to show up in a way that their employees, young and old, feel part of a community. Younger workers want a sense of purpose, friends at work, and to have fun. Is that too much to ask?

As we’ve chronicled in these pages, the formula for employee engagement today is to focus on the pillars of career development, flexibility and compensation. If you want to connect with younger workers, tie their work back to mission, values and vision. Listen intently to what skills they wish to acquire. Feeding them an old-school learning management system with stodgy online coursework isn’t going to cut it. They need mentors and leadership.

How regulation is impacting insurance markets

In a story that defies logic, the number of California homeowners who are unable to procure fire insurance has tripled in the last three years. In 1968, California enacted the FAIR Plan, which was to be the insurance of last resort for those who could not find any. In 1988, a law was passed limiting the rate increases insurance companies could pass along to consumers. Rates are administered by the California Department of Insurance.

As insurers sought to balance their exposures in recent years, the California Insurance Commissioner hasn’t permitted rate increases to keep pace with their risk-adjusted costs. Now State Farm, Farmers, Travelers and Chubb have either pulled out of the state or restricted the number of fire policies they would write. Policies covered by the FAIR Plan (taxpayers) have now swelled from 126,709 in 2018 to more than 350,000 today. The volume has overwhelmed the system, with buyers complaining of delays, software glitches, dropped coverage and poor service. 7% of home sales fell out of escrow in California last year because buyers could not afford the policies.

So the FAIR Plan is no longer the insurance of last resort. If you live in an area with substantial brush, it is the only market, and represents a risk to taxpayers with underfunded reserves supported by artificially low rates. When government attempts to impose cost controls, the market reacts violently. In this case, consumers would’ve been better served by reforms to a system that recognizes the realities of today’s market and risks. Some residents, especially those on fixed incomes, are contemplating leaving the state and taking their income taxes with them. What a total cluster.

Enjoy the Sho

We travel frequently, so we know there are a lot of haters for our hometown of Los Angeles. And there is particular disdain for the Dodgers paying Shohei Ohtani $700 million. Everyone wondered, why would a team pay one athlete that much money? Then you watch him play, and think maybe it was a bargain.

Ohtani is almost a mythical figure. He’s been subjected to the pressure of his contract’s size, controversial structure, and a bizarre sequence of events in which his interpreter embezzled $17 million from him in a gambling scandal.

One might think he’d be distracted, but he is a hair away from winning the triple crown and being the MVP of the National League as a designated hitter. He is second in RBIs, hitting leadoff. He’s also a gifted pitcher, and hasn’t pitched yet for the Dodgers.

But more than money or stats, it’s about the SHO. Ohtani’s homeruns are jaw-dropping in a way that Dodger announcer Joe Davis is running out of superlatives like “majestic blast.”

You have to wonder whether the Dodgers saw something that would permanently change their franchise, and bring a new fan base and excitement to the stadium. Enjoy the Sho.

Book recommendation –?The AI Whisperer

Handbook for Leveraging Conversational Artificial Intelligence & ChatGPT for Business

AI has the power to transform the world for the better and propel your business to new heights—if you know how to use and leverage it effectively.

Read the book

Video by Marc Emmer: Mission, Vision & Values

The Strategy Experts

Marc Emmer ?is President and Chief Strategist & Facilitator at Optimize Inc.

He is an author, speaker and consultant recognized as a thought leader throughout North America as an expert in strategic planning.

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