Are we approaching the age of AI all wrong? While headlines champion the latest algorithms and ever-expanding large language models, a critical component is being overlooked: the human element. The real challenge of digitalization isn't found in the code, but in the culture, strategy, and people tasked with implementing it. Research indicates that while over 90% of companies are increasing their AI investments, the most significant hurdles they face are about bridging the gap between leadership expectations and on-the-ground readiness. This disconnect, coupled with an over-reliance on AI, risks a decline in the very critical thinking skills that drive innovation.
In this in-depth episode of the Growth Hacking Culture Podcast, we sit down with Evan J Schwartz, a veteran of enterprise technology and the acclaimed author of "People, Places, and Things," a foundational framework for pain-free technology implementation. Evan brings his decades of experience—witnessing the painful, multi-million dollar ERP rollouts of the 2000s—to the current AI gold rush, offering a sobering and invaluable perspective. He argues that despite twenty years of technological advancement, many organizations are repeating the same fundamental mistakes, just with a new set of tools.
Evan deconstructs the common but flawed "peanut butter spread" approach to AI, where companies simply "rub some AI on it" and hope for the best. He reveals why this often fails, starting with the critical importance of a well-defined use case. Without one, you've already lost. He illustrates this with the "99-to-1" fallacy: a scenario where a company might build a brilliant AI to catch the 1% of customers abusing a free service, only to spend more on the AI's operational costs than they would lose by simply letting the 99% of honest customers continue as before. It's a powerful lesson in ensuring the solution doesn't cost more than the problem.
Delving deeper, Evan explains the inherent risks of today's AI models. He unpacks the stochastic, or random, nature of LLMs, which leads to the phenomenon of "hallucinations." An answer might be right 99 times, but that one incorrect response could be catastrophic. This is why relying on an AI's encoded knowledge without guardrails is a dangerous game. He critiques the trend of brute-force prompting—crafting 25-page documents that look more like complex code—which defeats the very purpose of intuitive, natural language interaction with technology.
So, what is the path forward? Evan introduces the powerful "Person + AI" strategy. This framework positions AI not as a replacement for human workers, but as a force multiplier that alleviates the burden of monotonous, repetitive tasks. He draws a compelling parallel to the industrial age, where the tractor didn't just eliminate the need for 198 men to plow a field; it enabled two men to farm thousands of acres, playing an infinite game of growth and possibility. In the information age, AI can do the same for our minds, taking on the "repeatable excellence" that our modern education and corporate systems demand.
This shift, Evan argues, allows us to reclaim and cultivate the skills that make us uniquely human: creativity, strategic intuition, fearlessness in the face of failure, and the ability to learn and adapt. He shares a personal and passionate story about his son, observing how the educational drive for "honor status" and straight A's can inadvertently stifle risk-taking and innovation. Imagine, he posits, a future generation that learns to command AI from a young age, retaining their innate creativity and curiosity throughout their lives.
This evolution will redefine roles across every industry. Using the profound analogy of an artist, Evan explains that while AI might be a revolutionary new "camera," it still requires a human photographer's vision to describe the lighting, the mood, and the emotion to create a masterpiece. The tool changes, but the intent and expertise remain human-driven. Similarly, he addresses the future of programmers and architects, explaining that while they may not be hand-jamming lines of code, the core principles of good application design, architecture, and logic are more crucial than ever.
This conversation is an essential guide for any leader, manager, or professional navigating the complexities of modern business. It moves beyond the technical jargon to address the core of successful transformation: understanding the journey, preparing your people, and building a framework where technology serves and amplifies human ingenuity, rather than attempting to replace it.
Connect with Evan https://www.evanjschwartz.com/ or https://www.linkedin.com/in/evan-schwartz-live/
Check his book on Amazon: People, Places, and Things: A Framework for a Pain-Free ERP Implementation
