Kim Komando Daily Tech Update

The appearance of being busy

7 min
Jan 27, 20263 months ago
Listen to Episode
Summary

This episode discusses Amazon's massive layoffs of 28,000 employees, which CEO Andy Jassy attributed to cultural issues rather than financial constraints or AI replacement. The episode also explores how AI is disrupting traditional billing models in professional services, particularly law firms moving from hourly billing to flat fees.

Insights
  • Companies are prioritizing productivity over the appearance of being busy, leading to cultural-based layoffs
  • AI is forcing professional services to abandon time-based billing models in favor of value-based pricing
  • Junior-level positions in knowledge work may become obsolete as AI handles traditional grunt work
  • Traditional Google SEO is becoming less relevant as AI-powered search engines gain prominence
  • The shift to AI-assisted work creates both cost savings for consumers and revenue challenges for service providers
Trends
Corporate culture-based workforce reductionsAI disruption of professional services billing modelsTransition from hourly to flat-fee pricing in legal servicesElimination of junior-level positions due to AI automationRise of AI-powered search engines over traditional Google searchShift from time-based to value-based service pricingAI tools becoming integrated into everyday business workflows
Quotes
"Companies are not impressed by the appearance of being busy anymore. Today you either produce or you're out."
Kim Komando
"Those employees in Amazon Web Services, retail sales, Prime Video and HR did not fit in. They were involved in too many meetings, too much bureaucracy, too many mid level bosses."
Kim Komando
"If AI is doing the grunt work, do we need the junior lawyers anymore? Nope. Not at all, unfortunately."
Kim Komando
"Google rankings don't matter anymore. They just don't."
Kim Komando
Full Transcript
4 Speakers
Speaker A

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0:00

Speaker B

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3:33

Speaker A

To start with when you hire a lawyer, you know, you get that billable hour. It's, it's scary. It's like 0.1 hours to even think about you, to read an email, whatever it may be. So I wrote this story for my newsletter and called the current. Right. And all about how billable hours are going away because now the law firms are using artificial intelligence.

4:02

Speaker C

But why is that billable hours going away? If they're using AI, then it would just be less of a billable time. Right? So instead of point of an hour.

4:26

Speaker A

It'S 0.5 or is 30 seconds. Right. Okay, so law firms are saying like, so how are we going to bill? Because if we can't bill 40 seconds, if we're going to be analyzing 100 pages in order to present a case about you to a judge, which probably.

4:35

Speaker C

Took them what, an hour before?

4:53

Speaker A

Two hours? No, that probably. You kidding? A thousand. Probably 20 hours. Wow. I mean, because they have to sort through it. They got to find the risks and they have to do all this. And you know, and I'm not dissing lawyers. I love lawyers. Some of my best friends are lawyers. They're always super smart. But I can't stand paying $700 an hour, $500 an hour for all this stuff. As a matter of fact, when Barry's on the phone with a lawyer, I'm like, he doesn't need to know about the weather. Okay, just. Just keep it right here, keep it right here, keep it right here. And so they're getting into flat fees, and so a contract could be like 2 grand. A divorce, 5 grand, 7 grand, whatever it may be.

4:55

Speaker C

But is that going to end up being more expensive?

5:31

Speaker A

I don't think so. Okay. I don't think so because. Because I think you now have like a fixed fee and you have a deliverable, so there's a value for that product. And so my. I got a text from my favorite lawyer, John Duran, and he just said to me, you're killing me. You're killing me.

5:33

Speaker C

Is this your lawyer?

5:54

Speaker A

Yes.

5:56

Speaker C

So you must have fired him or told him to change his rates, Right?

5:56

Speaker A

He knows it's coming, I guess you'd say. But it's also coming for anyone else who trades time for money. CPAs, marketing companies, I mean, anybody that you can really use AI. And it's also going to affect the learning pool because if you have a law firm of 100 guys and gals, 20% may be juniors and they're the ones that normally doing all the grunt work. Well, if AI is doing the grunt work, do we need the junior lawyers anymore?

6:01

Speaker C

Nope.

6:26

Speaker A

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6:27

Speaker B

Oh.

6:49

Speaker A

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6:50

Speaker D

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7:22