POWER CEOS (Aired 05-26-25) AI Literacy and Women Leaders: Why It Matters Now

[00:00:00] Speaker A: Foreign. Welcome to Power CEOs, the truth behind the business. I'm Jen Goade, your fearless host, entrepreneur, investor, and business strategist. Why are we here? Because iron sharpens iron. And when we bring industry leaders, entrepreneurs and investors to share what's working in business and even some of what's not, we're all able to learn and grow. As a result, we are able to grow our businesses to thrive. And the ripple effect impacts not only our teams and their families, but also our communities and our world. We are diving deeper into AI literacy today. It's a topic that you have asked a lot of questions about. We've been really talking about it over the past several weeks. And I have brought an amazing friend and fellow entrepreneur here who is an educator and founder of Women who AI. Kelly Tenney, welcome to the show. [00:01:06] Speaker B: Thank you. Thanks for having me. I'm so excited. You talk about so many amazing topics. I couldn't be more thrilled to be here today. [00:01:13] Speaker A: Well, I really wanted to lean on you because you've gone from classroom to the boardroom, and AI literacy is your jam. So I kind of thought AI is here, but are we really preparing the next generation, the next generation of youth, the next generation of entrepreneurs, not just to survive it, but to truly thrive? And you're the perfect person for that. So talk to me a little bit about this. You've been, you've been doing curriculum, teaching future teachers, training the trainer, educating entrepreneurs. What does really AI literacy look like today? And why does it matter now more than ever? [00:01:52] Speaker B: Oh, that's such a good question. Because I think in the, in the whole just sense of literacy, literacy on its own, I think has always had some confusion around what that really means. If you think about like, the original just concept of like being literate, right? It was just about this, like, can you read? Right. Do you have the skill? Right? And as education has evolved and as that term literate and literacy has started to be applied into a lot of different other content areas, a lot of different other subjects. Now we're here with AI. It's really understanding the depth of what true literacy actually means. Means, which is that, yes, do you understand it? Do you know what AI is? Do you have the skill to use AI? But taking it to the next level and really embracing that concept of true literacy, it really also includes, like, do you know when it's being used? Do you have critical thinking skills around how to use it both ethically and in an innovative manner? Do you understand the biases? Right. And the ethical issues that are surrounding AI. So I think when it comes to AI literacy, a lot of people might think it's just about, do they know what it is, do they know how to use it? But really, I think there's a lot of different levels that are needed, that are needing to become uncovered and that we're going to be uncovering in various conversations to really embrace that true definition of what AI literacy is. [00:03:25] Speaker A: I couldn't agree with you more. And when we think about it, I've been bringing people involved from all different aspects onto the show because it's not just about talking about it, it's about really being ingrained in what is this? What are the ethics? What are the biases? What are the conversations? Let me ask you, how can we as entrepreneurs, as leaders, as investors, as moms, as. As community pillars, how can, how can we build AI literacy into every aspect of our homes, our boardrooms, our businesses, especially for, you know, women, because a lot of times women wear multiple roles and will be part of that conversation for the children as well as we run businesses. So how can that be built in from your perspective? [00:04:19] Speaker B: Yeah, I think one of the most important things is to, not only for ourselves, but to teach the people that we work with, to teach our teams, to teach our children, as you said, because we certainly know if our future generations aren't using it yet, which many of them are, they certainly are going to be. I do believe it's going to be this mainstreamed skill and tool, if you will, that we're going to be seeing in education. The biggest thing is to remember that it's okay to question. Right. I really think when we stop questioning and when we stop wondering and asking questions, that's when we start to get into that danger zone. So, you know, it's really, first of all, always recognizing that it's okay to ask questions, to not only question the inputs or the outputs that you're getting from AI, but also just question everything that you're seeing when it comes to AI usage. And I feel like one of the best things that we can do, especially when we're talking about at home with our families and future generations. And Jen, you and I have talked about this off screen a lot, is creating that safe space, right? Making sure that there's always a safe space for that questioning and that wondering and maybe even that thought. Thought disrupting to happen. Because I think that's really where we start to have those conversations that are necessary in being able to come up with some stronger guidelines as we move forward with AI around That ethical usage right around the biases and things like that. And I think if we can teach people to stop just taking the information that they're getting and run with it, and actually again, AI literacy, that critical thinking, really think about it, question it, know, be curious, inquire, that's going to be those skills that we need to continue to, you know, have those conversations and build out that literacy, that AI literacy component, you know, it. [00:06:21] Speaker A: And I just, like, what I'm hearing is press pause, don't just, don't just take what you see at face value, press pause and ask why is this happening? What happens if we continue down this path? And I really love that curiosity. And so I'm going to, I'm going to shift the conversation just a little bit because you're shifting the narrative. Women who AI is a movement that's changing the face of AI leadership. So let me ask you, in your experience with this, what unique strengths do women bring to the AI revolution and how do we better support them? Whether they're entrepreneurs who are leveraging the technology or they're female founders who are developing other tools. Like what does that look like from a, from a what? The strengths that they're bringing to the conversation and also how can we support them? [00:07:08] Speaker B: Well, one of the things that I've really learned about women is, you know, and it's no surprise that women and men think differently, right? I mean, the book Men are from Mars, Women are from Venus wouldn't have been a bestseller for so long if it didn't resonate and actually just help people recognize like, yes, we just think differently. And that's what it is, right? And so bringing women into the conversation, just to begin, right, when we talk about that AI literacy, we don't want to be having one sided conversations. And I think that's what you technically tend to have when you're in a gender dominant industry, right? And again, it's that thinking, it's that thought process, it's just the conversations that typically will come up in, you know, male dominant conversations during female conversations. And so that's one piece, right? I think that's one really big shift towards this movement is recognizing that when we bring in more females into the AI industry, we're starting to bring in different perspectives, different thought processes, different topics. And one of the things that I've certainly seen in the women who AI summits and interviewing all of the amazing AI female AI thought leaders and founders is women, I think, think in a much more practical manner, you know, in terms of that like, is this usable, is this practical? Is this going to solve my problems? And one of the things that I love, not that men aren't looking to solve problems, but I think for women who have a lot of different roles that they tend to play in life, they are problem solvers, they really are looking for that, like what types of solutions make sense versus that more, you know, what ifs, what in, you know, what if realm. And I think that a lot of the tools that I'm seeing that women are creating do have those more practical components. I see women founders and hear women founders say all the time, I created this tool because I needed it. Right? Because I have the problem and now I want to share it with others. So I think that's one big piece that we're bringing in and by bringing in more females. And the other thing is with women who AI, part of that movement is creating that safe space I hear so many times. In fact, I just had a call earlier this morning with someone who said I'm so curious and I know I need to learn about AI and honestly I've just been afraid to be the one that raises their hand and says like, what am I missing? You know, what, what don't I know? And we don't know, you know, we don't know what we don't know. And that was part of the other thought behind women who AI is like, what if we could create this non judgment open forum for women to be able to feel safe everywhere from being AI curious. I really don't understand how tools like Chat GPT works to AI innovative and to be able to say like, hey, I have this problem in my business. Anybody else, if I developed a tool, would this be useful to everybody? And so, you know, really the opportunities are limitless. But I think those are really two big keys that women who I will bring to the table. [00:10:20] Speaker A: Yeah, and I just really highlight something that you've said a couple of times in a couple of different ways for everybody who's listening. It doesn't matter whether you're male, female or anything, any other way you identify. But the reality is, is are we thinking from a practicality standpoint? And the thing that you and I have talked about offline as well is what are the second order impacts, what are the potential negative outcomes if we follow this trend and how do we mitigate those? And I think that as multi role people we tend to be involved in a lot of different things and we tend to see some of those second order impacts a little bit more rapidly than Those who are more in it for the science. And just because we can doesn't mean we should. So we do have to take a brief break, but we're going to dive even deeper into this, building better with AI, ethics, creativity, human centered technology. After this short break, Stick around Foreign. Welcome Back to power CEOs the truth behind the Business. I am here with Kelly Tenney. She is an educator and really a mover and shaker in the field of AI literacy. And before the break, we talked a lot about AI literacy and what does having alternative perspectives in the innovative process look like? And I wanted to ask you this before the break, but we just quite frankly ran out of time. So for everyone who's watching who may feel like they're a little bit behind on AI, Kelly, what's one mindset shift or one small action they can take to start building AI literacy? Personally and professionally? [00:12:29] Speaker B: I love that question. I mean, the first thing that I want to start off with, which I say often, is we're all a little behind, right? Like in a world of AI where it's moving so quickly, tools are coming out every day, AI is developing, developing new, faster, smarter capabilities. You know, for anybody who feels like I'm behind the ball, we all are, in a sense behind the ball, which actually means in terms of mindset shift, we have to stay curious and we have to be willing to be in it. Right. And by being in it, I'm really just talking about using it, you know, pushing the limits, staying curious. As we mentioned earlier, finding a tool, testing it out, seeing what it can do. I think that's the most important piece. And so many times I talk to clients and they, you know, they're like, what, can it do this, can it do that? And I'll say, like, you just got to get in there. Like, you really can't wrap your brain around those practical usage, start to understand the biases and the way it works as a bystander. Right. And so I think stepping in and being part of the conversation and being part of the game is like the best for first step that anybody can take. [00:13:40] Speaker A: Absolutely. I couldn't agree with you more. And so you've been sounding the alarm, setting the standard for AI, ethical AI use in education. And as it becomes embedded in every tool we use, you're asking questions like, are we innovating for efficiency or for humanity? So let me ask you, what are the non negotiables that we as entrepreneurs and investors should be thinking about when it comes to tech integration that protects creativity, communication, and connection, all those things that make us human. [00:14:11] Speaker B: I mean, I think the biggest thing is, is really around considering the biases and really thinking about, as you, you touched upon earlier, the, the outcome. Right. Like you said, you know, I think you said just because we can do it doesn't mean that we should. And I think that's where we start to get into that questionable space around AI ethics. One of the reasons why I love talking to AI innovators and AI experts like yourself, as we shared earlier, is because we think in a lot of more like realistic, practical terms. And I think that allows us to always think about AI in terms of that connection to, like you said, does it build relationships, does it add, does it enhance and not replace? And just because we could go and build a humanoids that are going to completely act as humans, we don't need to. Right? And so I think when we keep it applicable and practical, I think that's when we tend to have things like ethics and purpose and need top of mind. And so, you know, I think it's important because technology is moving faster than a lot of us. And I also believe that for every solution that we solve, we create a new problem. Right. And my biggest fear is that if we move too quickly, then what kinds of problems are we bringing up that we may not be ready to solve? And I think that's really going to be key when we're talking about ethical uses, when we're talking and looking at developers and businesses and corporations that are developing AI technology, you know, what are they really trying to solve? And if it's something that maybe isn't a current need, are they thinking about the implications that they might see down the road? [00:16:02] Speaker A: Yeah, I mean, a perfect example of that is, oh, this is great. We can have these deep fake, these look alikes who look like us and sound like us. And then all of a sudden people were utilizing that and using it for ransom and other nefarious purposes, honestly. And so it was great that we could do this, but we didn't set anything that determined, oh, hey, this is actually a human leveraging this. This is actually the real human leveraging this. And we've seen a lot of, we've seen a lot of missteps along the way, quite frankly. But there's another, there's another train of thought that I keep hearing from people. It's this myth that AI is going to absolutely kill our creativity. But you see it as an opportunity for us to creatively problem solve and to unlock our creativity. Can you share a Little bit more about that. [00:16:56] Speaker B: Yeah. It's funny because I'm right there with you. In fact, this week I've had a lot of interesting conversations all across the spectrum of that one, being AI is never going to last. Right. Like, it's a trend and it's going to go away, which I know you've heard before. The other one, I just had someone, a CEO actually, of a technology company tell me, in 15 years, AI humanoids are going to be 60% of the workforce and they're going to completely eliminate jobs for humans, right? So there's that. That. That's the other side of the spectrum. And I think one of the things that we need to think about is, you know, really looking at that opportunity, like you said, right. And Les Brown is a good friend of mine and he and I were talking about it. He said something the other day that I think was really profound, which he said, every time we have a new innovation, and right now it's AI. But there have been new innovations all over when it comes to technology. It's an opportunity for people to not only learn a different skill, but to be able to step into a new role. So, for example, right, he talked about, you know, the calculator came out and it allowed people to. And there was that fear, oh, my gosh. Especially in schools. Now, this tool is going to do the math for them and they don't actually have to write, but it created an opportunity for us to take things to a different level, to be able to focus more on the steps behind the process and not just the numbers that were the answers. And I think that's going to be something similar with AI if we embrace it, right? Like, if we recognize that with every new AI development, we have a new opportunity to enhance what it is that we are currently doing and to be creative around how we can use it as a partner. Right. And not as a replacement. And I think that's going to be really important to keep that in mind, especially when it comes to industries like education is really coming at it with this. I think if we come at it with this, like, how is this going to allow us to innovate or step into our human potential even more, versus how is it going to take my place? Then we're going to be on the right track. And that's why I think when we think about ethics, it's an important conversation, and I think there's some guidelines and boundaries that really have to be set before we go too far, so that we're always thinking about it from that perspective. [00:19:26] Speaker A: Yeah, I couldn't agree with you more. And one of the things that I like to ask entrepreneurs because they come to me for AI strategy and to consider like, where do we use this? The first question I ask is what can it absolutely not do? Or what do you absolutely want it not to do in your business? What do you want it not to take away? Because it's not a magic pill, it's not a magic button, it's not going to be 100% accurate at this point in time especially. And so that's, that's kind of what I'm asking on the entrepreneur side, what, what would you say is the one question every entrepreneur educator, parent should be asking themselves about AI that will keep them in that how is this going to enhance our humanity? How is this going to enhance what we're doing as opposed to replace? What is that in question for you? [00:20:13] Speaker B: That's a great question because something that I'm seeing a lot of right now, a lot of conversation is around mental health status and it's around that lack of connection that humans are feeling because of social media, because of different digital platforms. We've actually created so many ways for people to interact without actually connecting that we're starting to see the after effects of that things that we never thought would what happened. But now we're seeing that humans are actually lacking real connection. And so for me, I think one of the biggest questions when we're thinking about using AI is what is it replacing, right? Is it replacing human connection? Is it replacing real relationships, you know, or is it allowing me to leverage AI so that I can continue to have real relationships so that I have time freed up to like actually sit and have human to human communication? And I think that's going to be key. I think some of the biggest doomsday or fears around AI and replacing humans is that lack of connection and humans aren't going to change. Like humans are going to always need that human connection. I think that should always be the first question. And like you said with Deepfake, like what would, what are the consequences of creating a tool that actually allows a real human to step out and be imitated by an AI version that actually can't form communication and maybe isn't interested in fostering relationships. So I think relationships and communication always have to be top of mind. [00:21:45] Speaker A: Oh, I completely agree. And so I have just real briefly, how can we as entrepreneurs, as investors, as educators alike build those authentic relationships even when more automation is involved? Because we've seen this Kind of devolution of connection through social media, through text. Everybody's texting. I watched the other day, kids were at a prom dinner and they were literally texting each other and they were sitting across the table from one another. So like, how can we build those authentic relationships even when automation is involved and lead by example? [00:22:20] Speaker B: I mean, I think it's really all in, in the stance that we take as we become AI integrators and AI innovators. Right. We're certainly in a time right now where almost anything could be automated by AI. And I think, and this is why I'm so passionate about women who AI and this movement is, I think it's going to be important for people to take a stand in how they use it. Right. And to be able to say like, yes, maybe I can completely replace myself, but I'm taking a stand in maintaining human and connections in real relationships and I'm not going to use it that way. Right. I think collectively as a society, a really key piece, and it starts with the thought leaders, it starts with entrepreneurs, it starts with the influencers is to be able to say, yes, this is an amazing thing and we are going to take a stand for maintaining the human relationships that we have. Right. I mean, you said earlier what are, when you talk to your clients and companies, you say what are the things that you have in place that I can't replace? And I think we all need to collectively decide it can't replace the human connection. [00:23:29] Speaker A: I couldn't agree more, Kelly. Unfortunately we're towards the end of our segment. How can people reach out to you if they'd like to learn more? [00:23:37] Speaker B: Well, the women who AI community is a free community. They can find me inside of that and they can find other like minded women who are using AI who are AI curious. By going to womenwhoai.com they can also find me on my website, teacherbrilliance.com, which is where I talk a lot about harboring your unique wisdom, which as you know, can be really beneficial when it comes to using AI tools in a way that allows you to still remain authentic. [00:24:04] Speaker A: Absolutely. Thank you so much for bringing your brilliance here today. I appreciate you. [00:24:08] Speaker B: Thank you, thank you. [00:24:11] Speaker A: And you're going to want to stick around because we've got more coming after these amazing messages. Welcome Back to power CEOs Truth behind the Business. If you're just tuning in, you're going to want to go to NowMedia TV, click on shows, go to to power CEOs and catch the first half of today's episode, it was epic. We dove deep into AI and everything you need to know regarding AI literacy and ethical utilization. We are now going to shift gears, and you have written to me. You have asked, I am answering. You've got questions. You're wanting to partner with private equity. You're wanting to know what questions to ask. I've brought you the perfect person to chat about this. Alice Chen, partner at Pender Hastings Capital, is all things living the PE life now, but she has a legal background and she was an entrepreneur with multiple companies. So she is the perfect person to ask. As someone who is a founder who has had exits as well as somebody who is playing on the capital side, welcome Alice, to the show. [00:25:45] Speaker C: Thank you. Thank you for having me, Jen. My pleasure. [00:25:49] Speaker A: Alice, you've sat on all sides of the table. You've got a legal background, you're a founder, you're an investor. Now you're a partner. Let's break down what most founders don't know to ask about private equity partnerships, because you have seen it all. [00:26:07] Speaker C: Yes. Yeah, let's unpack that. I mean, you know, selecting the perfect private equity partner is like selecting your partner in marriage. It's a big deal, you know, so you want to really give yourself the time to meet as many parties as possible. So what you're asking yourself is, what do they bring besides capital? Right. There's a lot of dry powder out there wanting to invest in really valuable companies. So if you're a founder that's built an amazing company with great enterprise value, what you want to ask is, okay, how are you going to treat my company? Right, because your company is your baby and what are we going to do together? What are the synergies? What can we co create together? Right. So sometimes private equity firms are acquiring your company as part of an acquisition platform. So if it's a platform acquisition, they're looking to combine what you have built with other complementary companies in, as in a vertical or in an ecosystem. So I think what you want to know as a founder is, well, first of all, is it going to be a complete exit or is it going to be a partial exit? If it's going to be a partial exit or if you have terms like earn out, if you have terms like performance and those kind of variables, then you want to understand, well, what is it that you bring to the table as a capital partner, right, besides the capital? So what kind of of value can you add to. To this that I've created? How can we co create something that's more than, you know, like that, that's more than the individual components. So I think those are the questions you want to ask. [00:27:46] Speaker A: Are there any red flags for founders? Because right now we're seeing there's a. You're right, we have a ton of dry powder, there's a lot of roll up activity happening. Are there any red flags that founders should be watching for in term sheets or in these conversations? [00:28:04] Speaker C: Yeah, for sure. I mean, you know, a lot of these kind of technical issues, there's a lot of available resources out there. If you just even type in GPT, you know, I'm looking to sell my company of this industry or this type to, to these type of private equity players. What are the due diligence questions? As a founder I should ask. Right, so those are the technical questions that are pretty readily available for you to look, look at. But I think what I want to suggest is that you want to look for an alignment, right. So especially if it's going to be a partial exit then or a growth capital you're taking in that's going to be a big chunk and they, they're going to have controlling interests or they're going to have a lot of influence over how you're going to continue the growing company. Then you want to look for alignment. Do you have values alignment? Do you have work style alignment? Right. Do you actually like these people? Right. They're going to ask the same things of you. So it's like a dating process. So you want to make sure that you can see yourself working together synergistically in a pleasant style, in the pleasant co creation type of situation for the next, I don't know, five, three, five years, maybe maybe longer than that. Right. So these are the type of questions, they're common sense but a lot of people, they focus on all the technical stuff but they don't, they ignore these kind of fundamental pillars which I think make or break a relationship and a P investment. [00:29:32] Speaker A: Oh absolutely. And we know that, you know, the greatest businesses in the world can falter because of poor partnership and the partnerships almost always because of people when they, when they have those challenges. And so I'm going to ask you, because you, you've done, you've exited, you've gone through the process, you've worn that founder hat a few times. What was your biggest mistake and what lesson did it give you that you now bring into everything that you do? [00:29:57] Speaker C: Yeah, so I think I learned the hard lessons that I was just talking about, you know, in my early days as a startup actor, you're looking for partnerships that complement your skills. So instead of hiring because maybe as a startup, you don't have ample funding, so you're trying to hack around that by, by being in a partnership. So I actually personally went through some painful lessons of misalignment and partnerships that kind of didn't end so well. So I would say that is like the first and foremost thing that you have to make sure that your goals are aligned, your values are aligned, your work styles are similar, your communication style or skill sets are complementary and similar. So I think those are very fundamental things that you just simply can't ignore. [00:30:45] Speaker A: So I'm going to, I'm going to address the elephant in the room. Right. We have a very extensive audience and you are a very strong, powerful female and you have no problem talking about these things. However, women in general in the founder space are really hesitant to talk about money open openly in peer circles that are, that are co ed or even in all women's circles. And we have a lot harder time gaining capital or, or pitching investors especially. What advice would you give to female founders so they can start to normalize these conversations, get comfortable with them? Maybe it's a mindset shift, but what, what female founders do to elevate their. I don't want to say financial literacy, because I don't know that it's financial literacy, but their ability, their confidence in the boardroom and beyond, and especially when pitching investors. [00:31:42] Speaker C: Yes, that's a great question, Jen. I think there's a couple layers to it. So the first layer, I think it may just be a matter of understanding the language of the industry. So the language of fundraising. Right. So that's, that's just a matter of putting yourself in situations where those conversations are ample and every day. Right. So start to listen to podcasts that focuses exactly on talking about money or talking about fundraising. Start attending conferences that help female founders raise money. Right. Or talk about money. I'm seeing a lot of this type of movement. So, for example, I love your channel and I love your show because you're, you know, leading us in this movement. So we very much appreciate that. I just spoke at this conference called the Women and Wealth Catalyst Summit at the Golden Gate Club in California. They just did one in New York as well. So this is organized by a fellow EO member, Shama Bunton out of San Francisco. So she is also an example of a woman that recognizes this Zach problem and is doing something about it and trying to bring all the founders and all the VCs and all the fund managers into one room so the conversations can be had and can be normalized. So I think it's really. It's really just like learning a foreign language. Finance is really just language, you know, So a lot of. A lot of, like, learning a new language. It's about immersing yourself in an environment. Right. So if you don't know Japanese, but you want to go to Japan and you want to have a good time at vacationing in Japan, well, what are you going to do? You're going to just get yourself there, and then you're gonna, like, you can learn some Japanese on Duolingo before you try it. But really where you're really going to learn Japanese is by putting yourself into that situation. Right. So I've kind of done that actually in Japan and also in. In Quebec, you know, so I'm Canadian. And, you know, we. We have a government program that puts Anglophone kids into Francophone environments and vice versa. So it's the same thing. So finance, find environments where it forces you to have these conversations. Put yourself in there before you do that to help yourself gain more confidence. Sure. Listen to more podcasts, talk to people that seem to know something about finance that you don't. Right. Just, there's so much content out there to digest. Like, even every day on Instagram, I see so much, so much stuff. There's a lot of influencers, like Mrs. Dow Jones, there's Vivian, too. You're rich. BFF. There's so many, even Instagram influencers that's teaching this stuff. So just really put yourself into these conversations, and that's how you're going to normalize it. [00:34:28] Speaker A: I couldn't agree with you more. And, you know, I wanted to just. Just congratulate you for being a part of the movement and for sharing this, too. So, folks, if you're listening and you're a female and you're not comfortable in the money conversation, you have to force it. Put yourself in the rooms that you feel that are a little outside of your comfort zone, because that's where we learn and that's where we grow. And don't be afraid to reach out to other strong female founders. You know, it's. It's really actually kind of easy to lean in if you're going to some of these conferences that are designed for. For that mentorship and for that growth, to meet with some of the other people who are maybe a couple steps ahead of you. And it's a great. Another. Another great way of doing this. I really appreciate that we, we have about a minute before we have to break. So I, I really wanted to just kind of wrap up and ask you, is there anything else that you really want entrepreneurs, founders and or female founders to take away from this particular part of our conversation where we kind of demystify capital and get comfortable with that financial conversation? [00:35:31] Speaker C: Yeah. I will say this one thing. So it doesn't matter if you're a female or you're this or that. Like I personally see all these attributes just as marketing attributes. Right. So you are your best marketer. Is your job to learn how to market these attributes? Right. So capital loves one thing. Capital loves value creation. So focus on value creation and capital will flow to you. So it doesn't matter who you are, what you are, all these different marketing attributes. You have to create something that's of so much value and I guarantee you capital will flow to you. That's how capital works. [00:36:07] Speaker A: Fantastic. I couldn't have said it better. You heard it from the expert folks. We do have to take a brief break, but we are going to dive deeper into what's shifting in the PE landscape and more after these important messages. Foreign the investment game is changing fast from geopolitical changes to the rise of AI. We're seeing so much happen in such a short period of time. And Alice Chen is here with us. She's at the forefront of how private equity is evolving and what to look for. So Alice, I really wanted to dive in a little bit and ask you, what trends are you seeing in the private equity space right now? What do we need to be paying attention to as investors? Talk to me a little bit about trends and what might be changing in this digital age. [00:37:24] Speaker C: Yeah, sure. So I will speak from the vantage point of a real estate private equity investor. So I think what I am seeing is a movement away from maybe what's popular A couple years ago, so during COVID it seems like everyone and their neighbor started a multi family real estate syndication. A lot of these deals are unfortunately under the water because of the interest rate hike that took place in certain places. Even are experiencing falling rents. Right. So I think as an investor looking for passive income or looking to achieve financial freedom through passive investing, I think one should be more open minded to look at different asset categories. So I'm seeing a lot of asset categories that are emerging. For example, I'm in land development and the reason why we took two years to study different strategies under the sun in the United States market and decided to land on land investment or land development is because well, one, we're looking for a big sustained problem. So I don't know if you know, but there's actually currently a 4.8 million deficit in single family homes in the United States. And this was a problem that started to pent up since the last financial crisis of 2010. Right. So the national home builders, like the Dr. Hortons of the world, the Lennars of the world, these, a lot of them are public companies, they started to under build in those macroeconomic conditions. And so that created this pent up supply and demand gap. And this gap is not, it's not, it's actually widening, it's not narrowing just because even you know, in the last couple months with uncertainties concerning tariffs and this and that, again, you know, that continues to, that continues to, continues to prolong this problem. And so as a private equity firm, we're looking for a problem that's big enough that we can solve over time. Right. Because we have to apply a lot of the bandwidth and human capital and infrastructure into solving this problem. So the second trend I'm seeing is that what's interesting is that there's no, there's no shortage in terms of the, you know, the, the people's desires to have housing as well as there's this trend towards worker housing or BTR build to rent. So these are single family homes that are for, for rent, you know, not to be bought but to be rented. And a lot of times they are being built around maybe, I don't know, like a gigafactory of some sort. Right. Maybe Nvidia I know is, is spending a lot of money building in Austin and of course Tesla and then there's a lot of like technology or other type of big industries. They're building plants or building research centers and so they need to have people that go there to work. And so you need to have worker housing, like adequate, comfortable worker housing where the tech workers can bring their families over there. Right. And to continue kind of the company mission. But the families will have children and you want to make sure that in that neighborhood there's actually the right kind of infrastructure of schools and playgrounds and that kind of master plan communities. So I'm seeing this trend towards BTR built to rents communities. So that is also known as horizontal multifamily. I'm seeing trends of smaller houses being built in these master plan communities because maybe the, I think the household formation numbers are maintaining even though it seems like the younger people are having less children compared to previous generations. But it doesn't Mean the number of household formations is dropping because we are encountering all kinds of permutations in household formation. There's people downsizing, the boomers are downsizing. There's also couples splitting up, becoming, going from one household into multiple households. Of course there's still young families being formed, young professionals looking for their own starter home. So there's all kinds of combinations. So I think this trend towards worker housing, BTR single family homes, adapted towards the current demographic trends, I see that as a pretty kind of obvious trend that's happening in front of us. Another thing that I've been really kind of geeking out on and this is related to AI, so I think you'll find this interesting as well, Jen. So if you think about it, in, in probably five, 10 years, I believe that every single house will be built through a modular format, right? So these are steel frame modular homes where the homes are built in parts and pieces in a factory, right. So much like a car factory is assembling different parts of a car and then, and then they make a car, right? So same thing, like they're producing bits and you know, parts and pieces of the house and then they are then shipping everything onto the site and then doing the on site assembly. So everything can be probably built by three robots in three days. And so if you understand that, then you need to understand the implications of that. So what does that mean for the value of the actual house? Right. It's going to be greatly diminished. So that in terms of looking at real estate as an investment, then what will actually hold the value? Like what is actually a resource that is, isn't infinite. Right. Then I think you, you then look at land because land is not an infinite resource. It's definitely finite. And once you have built, you know, throughout the land and then that's it, you can't generate more land. Right. So I think that's, these are kind of, the, the trends are kind of keeping me very engaged at, late at night thinking through these kind of problems and the implications for society. [00:43:34] Speaker A: Well, and what you're discussing right now, I've seen these same trends. I've been looking at it and actually a btr, I've passed by a BTR that just recently finished development and started to lease nearby where I live. And you're absolutely right. We have to look at what's shifting and where it's going. And that's just an entrepreneurial view for investors. We have to be thinking longer term. And what's, what's that? How can we leverage technology or AI to help us with some of this due diligence on the investor side. Like what are some of the ways that investors watching this, or even founders who are looking to get into the investment game to build or generate or grow wealth. Like what are some of the ways that we can leverage technology so we can formulate our due diligence on where we're going to put our money? [00:44:20] Speaker C: Yeah, so I'm, you know, a big fan of GPT. I work with it every day and I think even just typing in like the, the investment you're looking at, right? And typing in and asking GPT to generate a list of the due diligence questions like my firm had, like we have our own proprietary eight page process when we're looking at, you know, how to, or who to deploy the capital to. But you can find similar examples online and you can just interact with AI to, to basically have AI synthesize the best list due diligence list that you should ask when looking at a passive investment. So be it a syndication or a fund. I think that's very informative. You can also ask AI to compare and contrast. So maybe you have decks from different investments and then you can let GPT know. Okay, well, I'm looking for growth, I'm looking to optimize for growth, or I'm looking to optimize for immediate cash flow. Right? So two different buckets, like very different styles of investing. So one, you're looking to multiply your capital in a short time. Another one, okay, well maybe your, your return is not as great, but you're looking for that immediate drip in terms of passive income. So you have to know exactly what you're looking for. And then you, you know, input the data, you input the different selections and then you can ask AI to help you compare and contrast and compare it to historical data. Right. So you can ask it to compare fund managers in the same space in the same asset category and to get a sense of the comp. So a lot of the stuff that I think, you know, analysts, investment banks or private equity firms, the stuff that they used to do, now you have your best friend, you have GPT or other AI companion, they can do that for you. So really this knowledge is democratized. And I'm very, actually personally very excited about the fact that this is now democratized. [00:46:17] Speaker A: Oh, you and me both, it really is making it accessible and, and it demystifies a lot for us because what's happening is we now can have access to things that we used to have to trust someone else and they didn't necessarily always have our best interest in mind as like from an investor standpoint. So talk to me a little bit, I know you have a fund for re land development. Talk to me a little bit about how people can reach you and learn more about what it is that you're doing, why it's a problem we should be caring about and why we should be thinking about diversifying our portfolio to include land development. [00:46:51] Speaker C: Yeah. So I'll give you a very brief overview of exactly what we do. So what we do is we're capital partners to best in class land developers in the country. And what's a land developer? Land developer is a company that works on either land entitlements or horizontal development. So they turn raw land into finished lots of for the national home builders like the T.R. horton, you know, Lennars or regional players to come in and start building houses. Right. So build vertically. So we love this model because the. Let's take horizontal development as an example. So a horizontal developer will typically be approached by one of these home builders. And the home builders, they will say, hey Mr. Horizontal Development, we want to, we have this entitled piece of land. We want to build this master plan community of a thousand homes. Can you help us with that? Right. And so our land developer partner will buy the entitled land from the home builder at call it $30,000 a lot. They'll do the horizontal development, meaning putting roads and infrastructure onto this track of land and then when they finish, they will sell it back to the home builder at $70,000 per lot. But this process is actually papered, contracted on day one. So before they do anything, the exit's already built in, it's already papered. So talk about risk mitigation. So we really love a business model where the exit is actually built in. I mean I, in my 16 years of being a serial founder, I have not seen this model elsewhere. So we really love this model because of that. And if you would like to connect with me or get more information about my fund or even education materials, I invite you to check out my personal website. It's alicechen companies.com Chen is C H E N Alicechen companies. Com. [00:48:42] Speaker A: Thank you so much, Alice. It has been such a pleasure. You have been a wealth of information for us. I appreciate you coming today. [00:48:48] Speaker C: Thank you for having me. It's been a blast. [00:48:51] Speaker A: And you. Yes, you. Unfortunately, all good things come to an end, including this show. But the good news is we'll be here same time, same station next week. Until then, win today. Win this week and I'll see you next time.