Weekend Briefing No. 533

CRISPR Breakthrough -- AI-Enabled Services -- Apocalyptic Optimism

Apr 27, 2024

Welcome to the weekend. Before we dive in to the briefing, I’ve got a few thoughts:

AI-enabled Service. In the second story below, I feature an article about artificial intelligence (AI)-enabled service firms. This article nails something I’ve been thinking about for years. There is some blend of AI (and other technology) + human judgment that will result in an exponentially better client experience for service businesses. This is our working thesis at my law firm Westaway. We’re already AI-enabled, but we are taking big steps to increase AI’s workload. This should allow us to produce higher-quality work faster and free up my bandwidth for the crucial conversations that require experienced judgment.
Gen-Z. this week’s briefing is highly focused on Gen Z. I hope you dig it.
April Playlist. I know I usually share a new playlist at the beginning of the month, but here's my April playlist. It’s mostly country featuring Zach Bryan, Beyonce, Riley Green, Chris Stapleton and more. Enjoy.
Story. I’m really curious about storytelling at the moment. What are your favorite courses, podcasts, talks, books or articles on storytelling? I’d love your recommendations.

Prime Numbers

15,000,000,000 — NASA confirms it re-established contact with Voyager 1 months after communication problems arose. The craft launched in 1977 and is now 15 billion miles from Earth.

700,000 — Taylor Swift's "Tortured Poets Department" sold 700,000 vinyl records in just three days, breaking the record for most vinyl sales in a week.

750,000,000 — Stanley saw its 40-ounce water bottles jump from a $73 million business in 2019 to a $750 million business last year.

CRISPR Breakthrough

Scientists have found a new way to edit genes using AI. Gene editing is a technique that allows researchers to make precise changes to the DNA of living organisms, which could help solve important problems in agriculture, biotechnology and human health. In the past, gene editing tools like CRISPR, which were derived from microbes, often had limitations when used in different environments, such as human cells. However, by using AI to design gene editors, researchers can overcome these limitations and create editors with optimal properties. The scientists trained AI models by using a vast amount of biological data, which allowed them to generate a wide variety of gene editors, including some that are even better than the commonly used SpCas9 editor. They also demonstrated that an AI-generated gene editor called OpenCRISPR-1 is compatible with a technique called base editing. The researchers have made OpenCRISPR-1 publicly available to encourage its use in research and commercial applications while ensuring that it is used ethically. Biorxiv (35 minutes)

AI-Enabled Services

Service businesses that combine AI and human expertise are set to disrupt the legacy providers that have dominated the industry for the past 50 years. These established firms rely on human labor and hourly billing, which can be upended by AI-enabled vendors. Services most ripe for change fall into two categories: execution-oriented tasks that clients lack the bandwidth or expertise to do themselves, and advisory roles where clients seek third-party expertise. AI-enabled startups have the opportunity to thrive in the execution-oriented category by automating tasks with objective outcomes. In the advisory-focused category, startups can play an enabler role by selling AI-enabled software to existing service providers, helping them do more with less. The more advisory-focused a project is, the less likely clients are to trust a bot, but there are still significant opportunities for AI to enhance the capabilities of law firms, banks and even major consulting firms. Emergence (11 minutes)

The Triad of Corporate Dysfunction

There are three dynamics that threaten most fast-growing companies from the inside: unclear responsibilities, poor calibration of standards and misalignment on speed. Talentism has coached over 800 companies, including startups, unicorns and public companies. We run diagnostic surveys in the best and worst of times to understand what is powering and threatening our clients’ success. While we unearth many root causes, this particular triad of dysfunction affects more than half of firms: Approximately 55% grapple with ambiguous responsibilities, breeding confusion and duplication. Over 70% lack clear standards, resulting in underperformance and frustration. A whopping 80% struggle to align pace with strategy, causing delays and missed opportunities. But here's the good news: These challenges are not insurmountable. Talentism uses the pain you are feeling today to find the source of ambiguity and misalignment in your company, helping you set up lasting systems for clarity. Break free from the triad of dysfunction. Let's start a conversation. Talentism (Sponsored)

Apocalyptic Optimism

Climate Doom Is Out. “Apocalyptic Optimism” is in. Focusing on disaster hasn’t changed the planet’s trajectory. Will a more upbeat approach show a way forward ?Recent works addressing the apocalypse emphasize the importance of hope in motivating action against climate change. Despite a majority of Americans acknowledging the reality and harmful effects of human-caused climate change, experts believe that current efforts to mitigate these harms are insufficient. Optimism, even when hard-won or qualified, may be the key to inspiring people to take action. "Apocalyptic optimism" is not a naive or easy concept, but rather a necessary and uncomfortable push toward positive change. Imagining a better future, despite the challenges, is a courageous and essential act. Storytelling, through various media, can be a powerful tool in convincing society of the urgency and usefulness of acting on climate change. Envisioning the possibility of a better world is crucial in the process of building one. New York Times (9 minutes)

What Are the Kids Up To?

The Piper Sandler Taking Stock with Teens survey was just released. Here are some key findings: 1) Nike remains the top favorite footwear brand despite losing some mindshare. New Balance gained the most footwear mindshare while Converse lost the most. Among upper-income teens, HOKA and On Running have increased their mindshare in athletic footwear. 2) Beauty spending has reached its highest level since spring 2018, with growth across all categories. Cosmetics holds the highest share of total beauty spend while fragrance experiences the greatest growth. e.l.f. continues to dominate as the top cosmetics brand, and teens prefer in-store shopping for beauty products. Ulta and Sephora both have high loyalty membership penetration. 3) Instagram has improved its position as the second favorite app among teens while TikTok remains the top app. The use of virtual reality (VR) devices and Roblox has increased slightly. Spotify maintains a strong presence among teens, with a slight increase in paid subscriptions. Teens spend the majority of their daily video consumption on Netflix and YouTube. 4) In the restaurant category, Chick-fil-A remains the top favorite, followed by McDonald's and Chipotle. Raising Cane's is rapidly gaining popularity. Interest in plant-based meat has reached an all-time low. Piper Sandler (6 minutes)

Gen Z and Money

Generation Z, or Zoomers, are experiencing unprecedented economic advantages compared to previous generations, with strong wage growth and higher household incomes at the same age. Despite concerns about the rising costs of college and housing, Gen Z is coping well due to their high earnings, spending less of their post-tax income on these expenses than the average for under-25s in the past. This wealth has led to a different attitude toward work, with some Zoomers embracing concepts like "quiet quitting" and prioritizing self-care. However, this generation is less likely to be entrepreneurs, with a lower percentage of young billionaires and a decrease in the share of 20-somethings running businesses that employ others. They are also producing fewer innovations, as evidenced by a decline in patent filings and a smaller proportion of popular songs sung by Gen Z artists compared to millennials at the same age. While a recession or the impact of artificial intelligence could destabilize the global economy and affect young people more than others, Zoomers currently enjoy significant economic advantages and the freedom to pursue their desires. The Economist (7 minutes)

This Is a Teenager

This is an incredible video of a longitudinal study following teens from 1997 to now. It’s a quick but in-depth look at how experiences in our teen years affect us into adulthood. The Pudding (7 minutes)

Should We Work Together?

Hi! I’m Kyle. This newsletter is my passion project. When I’m not writing, I run a law firm that helps startups move fast without breaking things. Most founders want a trusted legal partner, but they hate surprise legal bills. At Westaway, we take care of your startup’s legal needs for a flat, monthly fee so you can control your costs and focus on scaling your business. If you’re interested, let’s jump on a call to see if you’re a good fit for the firm. Click here to schedule a one-on-one call with me.

Founder Fridays

Check out my other email, Founder Fridays — a Friday morning briefing helping startup founders and operators scale smarter.

Weekend Wisdom

Only once you give yourself permission to stop trying to do it all, to stop saying yes to everyone, can you make your highest contribution toward the things that really matter. - Greg McKeown

Weekend Briefing