For the 105th episode of Burning Platform we host Malcolm Frank, who is now CEO of TalentGenius and is active on several boards. I got to know Malcolm in strategy and marketing leadership roles and as President of Digital Business at Cognizant. He was part of the executive team that grew the company from 10,000 to over 300,000 employees. He is definitely one of the “Big Thinkers” of our industry and here we discuss his new AI startup and the massive changes he sees coming to IT Services providers, Digital Agencies and many other sectors.
We start with TalentGenius which he calls a “virtual talent agent”. “If you show us your resume, we can show you your entire future.” They promise to catalog your skills and show you exposure to likely AI impact on those skills. Their deliverables – What are the best jobs for you? What AI tools could help you in your journey? Who are peers who can help you in your journey? “There are hundreds, if not thousands, of doppelgangers who look a lot like you that are on the same path as you are”
Starting around 9.30 we discuss our respective perspectives on how AI is reshaping enterprise technology. He says the F500 are figuring out how to create their “AI core” and we will start to see “killer apps” from them in the next year or so. He has a fascinating observation – he thinks vendors are too focused on SG&A use cases when we should be looking at the much bigger COGS landscape. “The F500 collectively spends about $2 trillion on IT. But they spend $22 trillion in cost of goods sold.” He makes the points I have been making but much more eloquently - the AI value is less in the back office and exponentially greater in vertical operational areas and in unique data monetization.
Around 22.00, we discuss the IT services sector and how it has fundamentally not evolved over the decades but now faces massive disruption. He uses historical analogies – how the development of refrigeration affected ice breaker traffic, how farming got so automated that from employing 40% of the US workforce it went down to 1% in a century, how trucking has done similar to horse-driven transport. In each case, we ended up with societal changes but a new generation of opportunities and jobs. He thinks IT services are similarly poised to see repetitive, low-level tasks get automated and commoditized and clients will spend the savings on a new set of projects. He expresses admiration for Accenture which continues to thrive as what he calls a “curve jumper” . There are plenty of “one-trick ponies” that do not navigate transitions well. He expects a new generation of AI-savvy firms like we saw with firms like Sapient, Cambridge Technology Partners, EPAM, Globant and others in previous tech transitions.
Around 29.00, we switch gears to discuss impact on the marketing function and on digital agencies. He talks about the recent screenwriter strike in Hollywood and the impact of AI on creative talent. He says a lot of basic stuff that drives CMOs nuts today and takes time and money with agencies will get optimized.
Finally around 33.00 we touch on the “future of work” and globalization. Hyperscalers have standardized DevOps around much of the world. He says he saw a trend which started during COVID, but has accelerated. Teams are becoming like recombinant DNA – being formed and dissolved all the time, many across borders. He also talks about the on-going impact on commercial real estate and traditional ways of working in offices.
He summarizes “It is going to be a really fun time. This is a Renaissance and, mid to long term, I think it's going to create entirely new markets. I think it's going to be a huge driver of productivity, which is going to be good for the economy. But where I get a little bit pessimistic is the impact on labor. Those who are able to think abstractly and think systemically will be rewarded. But those who don't have those abilities may be locked out of this new economy. So the faster that we can get out of our own way in terms of education, policy and funding the better. Because this is really taking off, and we're just at its dawn.”
You may not agree with everything Malcolm or I say, but there is plenty to chew on in this 40 minute episode.
