The AI Paradox: Why 'Good Enough' Beats 'Perfect' in Business

hey everyone Liam Motley here and in this video I want to walk you through what I call the AI Paradox of why good enough beats perfect in the business setting and this is particularly important for any of you who are maybe business owners interested in how AI can help your business but not sure if it's up to speed or up to standard for you to be able to deploy it in places that you want and you don't really trust that it's good enough likewise for anyone who's an AI automation agency owner and you trying to get a grip on where AI can provide value to businesses and how it's actually going to change how they operate fundamentally so in this video I'm going to be breaking down two examples of AI implementations in business where despite the AI performing at a much worse or lower rate than the human counterpart on the whole it's still ends up being a benefit for the business and this is particularly important during this current stage of disillusionment with AI technology I think the generative AI hype is kind of the trend is slowing down a bit and people are starting to see okay this thing may not be taken off at the rate we thought or it may not be as good as we expected even given the current state of the technology and the gradu rate of improvement we're seeing it still makes sense in a number of business applications because of the other advantages that AI brings to the table when deploying it at scale within business system so I've got some notes on screen here and I'm going to be walking you through these examples so firstly we have an AI sales rep versus a

human sales rep so say you have a sales team a typical sales team might have five or 10 people on it and they are being set up on bookings or they're taking calls in order to sell a product or a service right the alternative to that would be an AI sales team represented by one or maybe multiple but let's just call it one for Simplicity Sake One AI sales rep that has been trained and programmed to act as one of the human sales rep so if we walk through a quick pros and cons of both firstly the humans are expensive they're typically going to expect a 10 to 20% commission depending on the industry they have limited working hours they are only awake for a certain number of hours so you can only get them to work for maybe 8 to 10 hours a day if you're lucky um they can be inconsistent and Moody and they are people at the end of the day um new sales people must be firstly found hired and then trained up to a level of performance that you're happy with they can leave the business at basically any time causing you to have to find another person and in order to scale the business you need multiples you need to continue hiring and adding more people because each person can only carry or accept say 8 to 10 sales sces a day or depending on how long the sales cores typically are but the positive for this of course is that you'd expect humans to be able to close at a much higher rate and convert as many people as possible for your products and services and of course there's the added benefit of a human to human connection they represent your business can build up Rapport and connection and Trust with the customer at the end so higher close rate more connection typical way of doing things but there are a number of downsides to where human sales R and therefore a human sales team then we can contrast this with what an AI sales rep or a team of AI sales reps might look like so firstly it's going to be very low cost to run once you've set up so once you put in the effort and the capital required to create this AI agent that can be on the phone or whoever you're doing your sales obviously not in person but uh once you've got it set up basically and invested that money it is going to be low cost to run you might just be paying for the Voice AI cost for transcription for text of speech for all of the API cost and usage costs related to running AI voice agents is going to be very low I think it's a few cents per minute in most cases so drastic cost reduction from a 10 to 20% commission to just a couple cents or a couple dollars at Max per call um they're going to be available 24/7 for instant calls so the AI sales rep or the AI sales team can fundamentally change the way the business operates or the way the funnel Works typically a customer is going to need to booking a call via your website and then a day or two later they're going to hop on the call and you've got this big gap in between with an AI sales rip you can change the way the final structured so it's not just I'm going to book a call and wait 2 days before I hop on a call with the sales rep they can book it exactly there on demand so they can go on to your website and click um talk to our team or talk to our sales rep Etc and they can be called enclosed and sold into your offer immediately there on the website rather than having to wait for the delay of hopping on a call at a later date so this ability to instantly hop on a call and get sold into your offer and really learn more about it is it going to increase the number of bookings that you get overall cuz people aren't having to wait right people would rather just get what they want now get the information to make a decision so that's one factor that the AI sales team has on the humans thirdly it's going to stick the instructions provided humans as I said are Moody they're inconsistent they change they don't follow instructions if you programmed this AI voice agent correctly it's going to be sticking to the instructions you can very easily split test one set of instructions first another and determine which is closing at a high percentage so you have a lot more predictability and also controllability over the instructions and how it's executing on those instructions and finally and really most importantly is that an AI sales rep or sales team is going to be infinitely scalable basically as the business grows it's a oneandone once you've got it set up might need to have an optimization team or someone focusing on okay let's split test Etc but once you've got it set up and operating it's going to be there and can scale with your business as it grows rather than having to hire more people which is scaling with labor and scaling with people is going to be far more difficult than getting an AI system that does it once does it right and then it can handle basically infinite number of calls depending on your plans on these services but of course the trade-off here is that we're going to be expecting a much lower close rate U compared to a human sales rep and you're going to be getting less connection so some people might be like ah I don't like this I don't feel like I'm connecting with this business so depending on the product you're selling if it's super high ticket an AI sales rate might not be suitable but in a large amount of cases these things would still be viable so the question is and really the point of this whole video is which is best given that the AI will close at a much lower rate but likely increase the number of bookings overall due to the ability to book in instantly versus an human sales team which are likely going to close at a much higher rate but you may see less bookings because of that time delay and at the same time these guys cost a lot you just spending 10 to 15% of your top line revenue to pay the sales rep so when you do the mass overall on the number of bookings on the close rate and the amount you're actually spending and the profits you're getting it does get a little bit more complicated than that so I'm going to Rattle through some maths now and put it all up on screen to compare this AI sales GP versus human sales trip so a couple assumptions here for the scenario is that we're going to be getting 10,000 site visitors per month to your landing page the human sales reps are on a 15% commission the AI system on a cost per close is a 0. 01% commission equivalent so you say the humans commission is 15% the AI systems Commission in terms of the cost for running it might be a 0. 01% of the uh of the ticket value for a traditional funnel where people can come on and book in a call with a human at a time that works we might see a 5% booking rate on people who visit the site so 5% of website visitors end up actually booking a call the AI sales rep with the ability to instantly on a call we are assuming that we' get a 20% booking rate on that particular funnel that's using the AI sales rep we are assuming that the human sales reps will be closing at 25% and the AI sales reps will close at 5 and the average sale value for whatever offer we're selling here is 1,000 so I'll make sure that all up on screen there so you're all aware of the assumptions for the scenario then we have the human sales DP calculation at a 15% commission so the core bookings per month would be 5% of 10,000 so 500 calls booked we have closed deals per month which is 500 calls booked times a 25% close rate so we're getting 125 closed deals per month that's going to be Times by 1,000 which is the average sale value that we're assuming so we get $125,000 in Revenue the commission cost of these sales reps is going to be 15% of that which is $18,750 so when we subtract that our net revenue is going to be 106,50 using a team of human sales reps now the AI sales rep calculation is assuming a 20% booking rate for website visitors meaning we get 2,000 calls booked in rather than just 500 with the humans the closed deals per month for 2,000 calls booked at a 5% conversion rate or 5% close rate is going to be 100 deals rather than 125 with the humans so the revenue for the month for the AI sales team is going to be 100 deals time 1,000 which is $100,000 and the total cost or commission for running this AI sales rep system we're assuming at 0. 1% which ends up costing $11,000 for the month which leads us to a net revenue for the month of $999,000 so then we have the final numbers where the human sales trips have resulted in $16,250 in net revenue that's their total revenue minus the commissions and the AI sales rep team net revenue is $999,000 so that's the 100,000 minus just the 1,000 in cost for them so basically looking at the same amount of money when you do the masth like that and I think yes this is quite theoretical and that an AI sales rep closing at 5% may not even be possible I've yet to see that and test that myself but this is showing that even if it was 25% close rate for humans and the AI is closing at 5% but even with performing so much worse you can still potentially make the same amount of money while also having added benefits like scalability and lack of time spent on hiring and training and all of this work which can better be devoted and focused on optimizing the AI sales rep team to close at a higher rate and it's this kind of stuff to me that is so exciting about the space because everyone's expecting okay AI has to outperform humans in a number of different ways no it can still perform at a much lower rate than the human equivalent but there are other added benefits and factors that can make it more uh beneficial to the business overall is are not having to deal with people making it far more scalable I never have to hire another the sales rep if you apply the same thinking there are other places and other functions where this trade-off happens in businesses and I think it gives a lot of confidence to people like myself and you maybe if you are building and selling these AI Solutions or if you're a business owner thinking of taking a gamble or risk on AI when you look at the numbers like this despite the performance difference it still makes sense if you're looking for scalability and ease of use and even profitability as well some other

examples of this kind of trade-off happening within businesses um would be say a Tradesman who has an AI receptionist set up on their business phone line to answer calls 24/7 so instead of the business owner having to be available and answer questions and pick up the phone and take bookings the AI receptionist is going to be available 24/7 being able to pick up and never miss a call so that's going to lead to an increase in business but at the same time you might get or loss of a small percentage of those people who call in who pick up the phone and go oh this is a robot or the the system malfunctions which is still something that happens with the technology at the state that it's in but overall when you do the math of the increased number of calls answered and the slight loss of cuse because it's an Nai these things stand a chance of being as good if not better on the whole as the human equivalent because in this case it's freeing up the time of the business owner to do more important things and at the same time it's infinitely scalable and can take multiple calls at once and two more examples of this trade-off happening in action would be say with AI content creation where yes the content created with an AI Avatar may not be as effective um on a video by video basis as say me filming this myself if you do the maths does it make sense if I'm not spending any time safe for me if I did no time creating content but it was just me putting the scripts in and generating this for myself how much time am I saving yes it might perform a little bit worse but would it be better on the whole that's something that testing would only reveal and another one could be AI customer survey analysis instead of getting a human to go through and pick out every little gem from the customer survey you can set up an AI system to analyze all of those responses and give you some kind of output sure it might miss a couple key GMS here and there but on the whole is the system more beneficial despite it performing at a worse level than the human is it going to be a net positive for the business so what I'm trying to say is that yes AI

in its current form and generative AI particularly and say voice agents or Tech space agents may not perform at a level that is at human or above but when you do the maths on the other benefits that it brings to the business it can still be a valid choice and this is at the current state of the technology as it is it's only going to get better over time which is why if you're getting into selling these and building these Solutions is such a good place to be because we're right around the corner from the stuff actually being B than say a human sales rep and at that point the whole Market has just completely opened up for us but the trick here is actually creating that AI system so the AI sales rep that can perform at the best level or close to the best level that the technology allows right now and that comes down to working with great teams finding AI automation agencies or AI developers that you can work with the build these systems into businesses so really it comes down to a skill and a talent thing at this point whether or not you're getting a ratio or an equation that actually ends up being a net positive for the business so this has been a different kind of video for my channel I'd love to hear your thoughts and experiences on this topic so leave a comment down below if you've got something to share I'll also put another video up here if you want to check something else out that's com from my channel but that's all for the video guys thank you so much for watching and I will see you in the next one