The Massive Opportunity in Building AI Businesses | Alex Hormozi

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Alex Hormozi and I sat down for a chat about how to start an AI business in 2023. Alex shared his advice for people wanting to start an AI Automation Agency, including how to sell emerging technology like AI, the importance of a good development team as an AI entrepreneur and his thoughts on AI businesses and startups that he's seeing at Acquisition.com.
Alex Hormozi also gave his thoughts on the huge opportunity for entrepreneurs to help businesses integrate AI into their businesses or "AI-ify" them, including exactly how he'd go about it himself.
This call was an exclusive interview for my AAA Accelerator members who were able to watch this conversation LIVE.
Timestamps:
0:00 - Intro
0:58 - AI Automation Agencies Explained
5:13 - How To Sell Emerging Tech
6:23 - The Opportunity Of AI Automation
10:00 - Choosing The Right Business Partner
11:14 - What Problems To Solve In An Industry
12:06 - Where AAA Might Falter or Excel
14:32 - The Importance Of Development Resources
19:17 - How Important Is Downtime As An Entrepreneur?

[@LiamOttley]

Interested in your thoughts on what Alex had to say! Drop them below ⤵ 📚 My Free Skool Community: bit.ly/3uRIRB3 🤝 Work With Me: www.morningside.ai/ 📈 My AI Agency Accelerator: bit.ly/3wxLubP

[@Varun-Wolverine]

❤

[@magicismagic123]

Here are the key points and actionable steps from the video: 1. Building AI businesses is a big opportunity, especially for implementing AI solutions for small and medium businesses. Focus on solving a specific problem really well. 2. Pick a niche you understand well based on your own industry experience or partner with someone who has that industry expertise. Target a specific deliverable within that niche. 3. Sell the outcome, not the tech. Don't use AI jargon, sell the transformation and value created for the customer. 4. Build a great product that delivers on your promises. Product quality is key for service businesses. 5. Hire skilled technical people, ideally make them partners/owners. The right technical co-founder can be a game changer. 6. Schedule open blocks of time for strategic thinking and ideation. Limit meetings, have conversations to get new information. 7. Stay focused and narrow at first, even if it's harder to get leads. It will pay off with better margins and scalability later. 8. Use the agency model to build up skills, team and capital. Then springboard into more leveraged SaaS type opportunities.

[@nickygood3342]

Thank you :) This is Bril

[@matthcw8745]

You the real MVP!

[@copainspammeur404]

Thanks 😊

[@ExploringAlpha]

Long story short, doesn’t matter what your business model is as long as it solves a real problem businesses have.

[@ColdCallSteve]

You lose so much when you don’t listen to the whole thing. You need the “Long Story”

[@MiteshParmar]

"sell the transformation, and avoid the mechanism" - Isaiah, summed it up well right at the end.

[@Abdul-qo6eb]

A fortune to be made waiting for all the AAA owners! Huge thanks to you Liam for having Alex Hormozi himself giving us the green flag! ✅💰

[@sebastianacosta-vazquez8166]

I've just come across you liam in the past 24 hours, and I've been following alex for some time now. This has completely surprised me on this collab. Good for you bro and i hope that everything you touch turns to gold!!

[@lisahart5682]

I love how Alex just simplifies the hell out of stuff! And Liam I do appreciate your content! Thanks guys

[@vukrosic]

Let Hormozi talk my man

[@aaronmathew4446]

🎯 Key Takeaways for quick navigation: 00:02 🌱 Overview of AI Implementation Opportunities - AI implementation on Main Street: a significant business opportunity. - Specific focus on helping businesses implement AI effectively and productizing solutions. 01:05 🛠️ Background and Approach to AI Business Creation - Evolution from marketer to AI developer. - Creation of an AI development company and discovery of the AI automation agency framework. - The importance of leveraging low-code tools for cost-effective AI integration. 02:17 🧩 Framework for Building AI Automation Agency - Development of a framework for building AI automation agencies. - Transition from traditional AI business models to a more sustainable and replicable approach. - Focusing on one niche and specific deliverables for scalability and efficiency. 05:20 💡 Selling Emerging Tech: Focus on Outcome over Technology - Emphasis on selling outcomes and benefits, not the AI technology itself. - Highlighting the importance of addressing specific pain points in industries. - Simplifying the sales approach for emerging technology adoption. 06:33 🚀 AI Business Opportunities and Common Pitfalls - Evaluation of AI businesses and common pitfalls. - Differentiating between true AI applications and less substantial solutions. - Importance of understanding business acumen for successful AI implementations. 10:14 ⚖️ Picking the Right AI Business Opportunity - Evaluating potential AI business opportunities based on value created and ease of implementation. - Emphasizing the significance of choosing specific problems to solve within an industry. - Balancing demand generation challenges with narrow focus for better scalability. 15:51 💼 Importance of Development Resources in AI Business - Highlighting the crucial role of in-house development resources for AI-based ventures. - The quality of the service and product is directly linked to the capabilities of the development team. - Discussing the challenges and benefits of managing a development team for AI-focused businesses. 18:09 🧠 Importance of Hiring Skilled Individuals - Hiring skilled people without deep knowledge is challenging. - Leveraging external expertise for evaluations is valuable. - Building a network and conducting aptitude tests for baseline assessment are helpful in hiring. 19:17 🕰 Balancing Work and Relaxation for Ideation - Scheduled relaxation can lead to valuable ideation and new ideas. - Incorporating relaxed attention into an entrepreneur's life is essential. - Limiting meetings and having targeted conversations can foster creative thinking. 21:51 🌟 Thanking the Community and Focusing on AI Implementation - Expressing gratitude to the community for their participation and support. - Highlighting the vast opportunity in helping businesses implement AI into their operations. - Emphasizing the importance of being specific and focused in solving AI-related business challenges.

[@mulesttia]

Havent clicked on a YT notifcation so fast in my entire life

[@riveralvarez7517]

The AI tools are today getting so advanced that you simply have to use them for your own advantage, it doesn't matter what niche you are in. From my experience, they are really good for content creators (especially if used in combination with a little bit of Famester). You can simply create content, make it go popular immediately. Like it feels you are in control of algorithms, which is really fun for me.

[@abdulmuizzkelani3760]

This was so beautiful to watch, love how he simplified everything . Hearing him validate the AAA business model just hits different.

[@southpawchad]

Two of the most important people I have been watching & studying closely. Thanks Liam x Alex Hormozi!

[@cornelcristianfilip5048]

Insightful and inspiring at the same time. One key point that I really liked and that has changed the paradigm for me is "Sell the outcome, not the AI". Thank you, Liam! 🙏🏼

[@jhuessy111]

Thanks for this awesome interview! These low-code and no-code tools usually cost quite a bit of money if used in a production environment. Do you make the clients pay for that themselves?

[@theroadtoamillion]

This was a great call. I actually posted my takeaways from this call on my channel last night 😂 good timing Liam. AAA all day! LFG🔥🚀😎🤝

[@cory-micek]

That was rad! An interview I’ll definitely be watching many times over. Thanks Liam and team!

[@user-tr1xb6ss6z]

Awesome to be a part of this 🔥🔥

[@majorkiki8340]

Omg you got the goat on. I study you both religiously. Can’t wait to dive into this… yes, I’m commenting before watching. Lol

[@SirJohnWD]

Great value! Thanks for sharing

[@elrecreoadan878]

Awsome content! When is it adecuate to fine tune an llm instead of working or as a complement for the botpress knowledge base?

[@jamesfears8940]

Appreciation from all the techies Liam means a lot to get Hormozi to speak on this topic

[@elsavelaz]

Yeah Liam is amazing and generous , he deserves all successes

[@KingUnique888]

Everything that Alex provided in this brief segment was insightful, relevant and informative.

[@Neurochrom]

Alex is so satisfied by the aslicking he gets at 11:57 - just look at that smile :)

[@reidmoto]

Great real life simplification on the way to get people to say yes, Alex. Nobody gives a sh*t about HOW I will get them to the results they want, we need to get their confidence that we’ll do it, for less than they’re paying now. I’m not at all surprised that 99% of the AI companies you’ve looked at are dogsh*t. As far as building a business in the AI Gold Rush, I believe the biggest opportunity is to build a "Pick & Shovel" business, targeting the hordes of business owners, entrepreneurs, and people who desire to learn and not be left behind, is to give them what they need. 1. Direction and a path to follow that educates them and helps them to create what they need. 2. Training and coaching using online video course creation, group coaching via Zoom calls, and higher level private coaching, if needed. 3. All this can be run using a membership program for a reasonable cost of let’s say $47/month to start, and the membership will serve as the entry level offer to the value ladder to group coaching, private coaching, live events, etc.

[@shashank1630]

This sounds dumb- nobody wants to learn - they want the result.

[@prishamaiti]

Thanks liam for another great video! Good to know that Hormozi provided a new perspective on the AAA model to help us succeed even further in business, as this can apply to any emerging technology

[@consultantnigel-projectman7274]

Liam, thank you so much for sharing. Amazing. Thank you

[@elsavelaz]

With AI you’re knots deep, infinity wide … I’m an ai integrated specialist , spent most of my life doing low paying “community oriented” work, so yeah I’m old and don’t have that level cash yet, but I did not have to work this year and work now because I want to… so am excited to show that AI shortcuts the race for midlifers like me that did our civil duty in our early years 🎉

[@Andrew.Trades]

absolutely amazing, especially the last minute. thanks to Liam and the bid man sir Alex H.

[@Oscar-br5lt]

great video - appreciate all the content and vlaue given liam!

[@ciftcierdinc]

Looking forward to Alex's insights on the AAA model 👀 Let's go! 💚

[@LiamOttley]

Sounds like we're onto something 👀

[@ciftcierdinc]

@@LiamOttley YES! Let's gooo!

[@smokeyson1887]

Thank you for posting this on your KZbin 🙏

[@navigatingsideways]

This is why people in my industry are starting to ask me questions despite my advanced basic knowledge. My industry has money, but I don’t have the start up costs. If you’re willing to teach me more advanced skills I’d love to take your leadership and apply to my expertise in my industry.

[@jordankruk]

Awesome you had Alex on Liam! Keep it up.

[@LiamOttley]

Couldn't do it without you guys, appreciate it!

[@rigaleb]

”IT HAS TO WORK” 😂😂😂 Thanks, Alex Hornozzi. You said it all.

[@TangeniAshipala]

I’m so grateful for people like like Liam and Daddy Hormozi fr❤😂

[@defidigest9]

“Get very good at productizing the solution. There is a fortune to be made in just making businesses more efficient. Don’t communicate it using technical words to the person you’re trying to sell to. Tell them how life’s gonna be once this thing is implemented and ask them if they want that.” Alex Hormozi

[@Xunr3alk1ll3rX]

this vid is full of value, Alex makes all the problems simple and making it so focused on how get through the problems. keep up the content liam

[@mayanknahar7804]

great to be a part of this 📈

[@LiamOttley]

🙏🏼

[@eyoo369]

The problem is most AI businesses do not have a moat. They are simply building on top of an API and they are one new introduced feature away to be disrupted again. Big Tech used to move incredibly slow with AI but now that openAI has flooded the gates. You see them rapidly eat up all the AI startups and they do it on such massive scale.

[@hokishks4793]

Poor people find problems rich people find solution

[@hokishks4793]

If you think like this you will never make it big in any industry you have to change your minuset first

[@123PayMe]

From the question posed by Alex Hormozi at 3:58 through 4:13, where Alex asks, "how is the approach?," I am glad that he clarifies Liam's Answer at 5:57 : AI is great for You Tube clickbait, but for sales it is irrelevant: the best sales approach is to sell the outcome. 😅 Yes the normal laws of business still apply.

[@georgioupeter]

Great interview, thanks!

[@navigatingsideways]

I listened to this interview twice today. My niche hasn’t been hit. Especially for training for turnover.

[@Corteum]

What does training for turnover mean

[@Brokiemind]

Nice work Liam and team and everyone on discord

[@farzan7248]

thanks for posting this here

[@elsavelaz]

My skool is skool/prompt-engineering and am ONLY looking for people that already code, I’m an ai integrated specialist and every day, amazing offers, including at my current contract, get dozens of leads for people looking for my skills. So, want people that want to learn how to do end to end AI (both halves of the brain types of fun). I taught kindergarten 9 years and now been deep in software 8, production level, and need to make more “me’s,” per the writing on the wall lol (outright brag, not even a humble one). I use Liam ottleys content as a fast track to learn business and I do put the stuff he puts out into production code

[@12Prophet]

The crossover we weren't expecting.

[@liamskaff]

Very valuable interview! Thanks to you and the community for being able to pull off this interview and provide value to everyone. 🔥🗽

[@LiamOttley]

Appreciate you bro!

[@kenjones_5m]

fantastic content dude REALLY WELL DONE ON GETTING THAT OUT TO US, I am looking to implement A.I inton increasing holiday parks rev by 10% with the help of a chat bot do you think this is possible?

[@vladlukashevich1923]

Insane value🔥🔥🔥

[@mynaturalperfume828]

Two awesome guys ❤❤❤🎉🎉😊

[@alihero5220]

thanks for sharing man

[@hardcorebyjoshely]

This was awesome. The questions where great. you utilized the time well. great input

[@OmniFusionAI]

Value just got a new meaning.

[@RR-et6zp]

Read more

[@user-jg4ci4mf8w]

"Sell the Transformation and Avoid the Mechanism".... Jewels!

[@Mr.Star0]

Very informative 🧠

[@gotanlam]

Cool interview. Liam looking a little nervous here ;) but good job man

[@ChrisOzar]

Where do I get a good ai developer / agency specialist

[@takingknowledge]

Insightful

[@nineshkumarpradhan7277]

9:09 DATA is the fule for AI. being a marketer and an AI neard i can tell it's quick Money solving automation in workflow using ai tools in the process building systems levering the data that being mined and this will give the edge. and MORE DATA= Better Solution= reoccurring premium tickets. data is the wealth, leave the rest on the algorithm you MINE DATA 9:28

[@conqueringpro]

We about to know better❤🎉

[@LiamOttley]

💯

[@double1499]

Moral of the story always sell the vacation never the ticket with all businesses

[@magicismagic123]

but the funny part. People want to know how and what are you selling.. :D

[@charliem.k8411]

A gem💎

[@zengin99]

Can anyone explain to me what did he wanted to say by not communicating with ( techno jargon ) at the end ? BTW this a great video a lot of values was shared.

[@ratking269]

To get used to always using everyday language as opposed to technical terms/more obscure words that will only make most people confused

[@zengin99]

​@@ratking269 Ah that's true ,now i get it. thank you for the explication

[@Shade7654]

I think his Message is more about selling the vacation and Not the Trip. Usually people sell all the technical Stuff but dont mention the benefits for the Business. So from my point of View He means 'dont talk about Techno jargon Like faster Processing of Events rate but less more about less people required Creating your proposals .... less cost but Higher quality....1 Person managing the Logistik flow instead of 10...Hope you get the Idea 😊

[@thinkakeem]

Dope!!!!!

[@Ofthedivine]

Leasss gooooo❤❤❤😊

[@AliKhan-zu2jm]

Hi liam i am new with you but learning AI from 4 months now i am able to make chatbots with a code in python using lang chain , lama . now just guide me how to find clients , if you have any suggestion please.

[@rasoolcre]

100M leads from Alex Hormozi

[@aliaboelezz690]

Partner with someone who has that skill

[@LordPBA]

that's good!

[@jsanchez782]

5:21 "It's selling the plain flavors to vacation" ??

[@elsavelaz]

I turn down jobs all day, say no to offers, an super picky because Hermozi said it- the upside has to be worth it to me

[@lenderzconstable]

How do you practice the actual doing in real world contexts ie for real businesses with real figures? Is there a better way to learn the technical skills other than company documentation and just by practicing (again where do you do that? You can’t go up to a business and say hey I’m trying to learn this shit can I see your _____ and use it to learn a new skill?) I personally challenge you to give a detailed answer right here Liam. If you really wanted to help people you would put in writing such as a book but also do videos because your channel undoubtedly brings you referrals.

[@mariomaro7]

You're approaching this all wrong. First and foremost Liam, and any other successful entrepreneur, is not obliged to help you with anything so why challenge him to. You yourself need to learn the skills necessary to build a successful business. Find a problem, present a solution, ask for money. It's really that simple. To do that properly, you need to learn sales and know how to deliver. Many people sell long before they know anything about how to deliver, and figure it out along the way. Getting out of your comfort zone is the name of the game.

[@kov_aks]

Offer to work for free at the start and overdeliver a stupid amount. That's how you can practice and also get your first client later

[@zmirc]

Very useful interview, but if you could please speak a bit more clearly, as sometimes the letters are so mixed that it's hard to understand what you're saying.

[@empireprotege]

I love how Alex is in a literal closet.

[@podcastsyoutube5524]

Liam man 5 mins in and you haven't stopped talking... the interview is only 25 mins long

[@catchagoogoo1]

Not a criticism at all, this is what I noticed. More focus on concise questions for the audience not show Liams understanding on the topic. Liam is obviously credible as he has AH as a mentor!

[@Omahaneb6]

Totally agree - that was such a lengthy ramble/intro. I stopped listening and I’m sure Alex was like wtf

[@elsavelaz]

My skool makes more engineers that can couple up w/ more otleys skool is prompt-engineering . 9 yrs teaching kindergarten, 8 years production level software, now an ai integrated specialist with tons of offers all day every day, presently on an AMAZING contract with a global e-commerce company , they said they need more “me”s” 😊 totally not a humble brag, it’s an outright call to action for other devs that can read the writing on the wall and have the chops to unlearn n relearn FAST

[@elsavelaz]

And yeah I score f’n high on all tests, am one of those old people who learned to code as a successful midlife crisis and graduated with honors, undergrad thesis at cu boulder (the veterans admin put me there) in post quantum crypto effects on the bitcoin blockchain about 5 years ago

[@rkumarv]

Biggest baddest developer right here 😎 haha

[@Botnition]

Exactly what I've been saying

[@LiamOttley]

Ahead of the curve 🚀

[@housesofnl]

Get that man a MIC

[@AndreSguarda]

Anyone out here in the fitness niche?

[@arimdu1408]

So are most businesses. How many business fail in the first year ?

[@elsavelaz]

“Being all things to all people,” well I build gpt swarms that are all things to all people then automate myself out of it, hide my stuff in backend code, and collect the $ … all ever more possible to dominate with AI

[@digitalsoulopreneur]

❤

[@TheAblackb2]

Josh Brown AKA Chael Sonnen

[@AndreSguarda]

Anyone here in the fitness niche? I can use Some help please

[@quinnherden]

Ay brother, when seeking help, it's more likely someone will lend their time if you make the effort to write your ask up front 🙏 cheers

[@richardbond4496]

I was thinking about starting an AI agency and Alex convinced me not to.

[@Corteum]

He didnt convince you not to, you covninced yourself by how you interpreted what he was saying 😁

[@michaelburrell4685]

This guy needs to learn conciseness from Alex. He took up 90% of the interview just talking. He says far too many words to convey something that could be said simply and quickly. I can appreciate giving context, but questions can framed accurately framed much faster.

[@LiamOttley]

Thanks for the feedback! - “This guy”

[@CurtisKJohnston]

AI is brand new, and most new businesses fail anyways, so of course most AI businesses will also fail.

[@shephusted2714]

a fortune is exactly the wrong reason - it has to be much more than that, the fortune should be way down on the list, maybe last

[@ASA-pd5sj]

Im sorry to say but im so disappointed in this interview, you waffled so much to preface every point that you didn’t even explain what you meant by “automation agency” to give Alex context to give a good analysis, what a waste of such a valuable resource , love the content though

[@luxerism331]

This video could have been much shorter. Too many rambling questions

[@MarcAndrewII]

Most AI businesses are definitely bad

[@bryanfernandez6241]

Bro you talk too much and don't let Alex talk

[@hardcorebyjoshely]

Productize the Solution!!!! Fire