The Prof G Pod with Scott Galloway
00:27:22 · Scott Galloway
Meaning these companies DOTS was supposed to kill, or the companies that were supposed to kill are actually its launch partners. Who's winning at the enterprise level? OpenAI's recurring revenue is reportedly reaching 70,000,000,000 and its enterprise sales have reportedly more than doubled since July. Anthropic has reportedly reached an annualized revenue run rate of approximately 65,000,000. And the incumbents that recovered did it by selling agents themselves. Salesforce's agent product, AgentForce is now 1,500,000,000 in annual recurring revenue. That's up 240% from a year ago. Who's most at risk here? Jefferies would tell you that information officers whose budgets would they would cut to pay for AI at 71% IT services and systems integrators, the consultants who install and customize software. After that came IT service management software, 41 front office software like CRM at 35% or CRM at 35%, while cloud providers came in at 6% and cybersecurity at 0%. Would imagine cybersecurity is gonna be, you know, a booming market. In the S and P 500, the clearest casualty is Intuit, the maker of TurboTax and QuickBooks. The stock is down about 55% this year, even though revenue grew 14%. So like, this is a tough one. And I think it goes back to diversification. Supposedly the next big growth market in SaaS is not going to be SaaS itself. You're not going to buy software to do your taxes, but tax enabled or AI enabled services companies. So I do my taxes with a firm called Citrin because a woman I know, Lucy Li, I think she's incredibly smart and I just trust her opinion around taxation. I wouldn't... I can see an AI company acquiring Citrin and then AI enabling the company and say, okay. You can now cut your prices by 50%. We're gonna go try and get 10,000 clients instead of 5,000. So for example, all radiologists were supposed to be out of business by now because of AI. What it ends up is that an AI enabled radiologist can do three times as many scans and then lower the prices, and it ends up. Then when scans get cheaper, people do more scans and we need more radiologists who know how to use AI. That's called economic growth or innovation, right? So it feels like the new wave is gonna be a combination of a SaaS company's focus on a vertical with... That's AI enabled, and then they offer the end service itself. They're not gonna be selling software.
00:29:44 · Scott Galloway
They're gonna be selling the service, which is... Because they're gonna go upstream and say, we'll actually do your taxes for you. We'll do your compliance for you. We... We're not gonna just give you the software for you to do it more easily internally. Anyways, thanks for the question.
00:30:03 · Scott Galloway
[00:30:03] S0: We'll be right back after a quick break. Support for the show comes from Canva. I've seen many a pitch deck in my life. Word of advice, don't take the visuals for granted. It's a crucial part of first impressions. And frankly, it's pretty easy to discern if it's a hastily thrown together deck or a polished inspired presentation born from real creativity. Canva is just what you need to bring that creative vision to life. And that goes beyond pitch decks. It could be an after socials, a logo for your side hustle, wedding invitations, whatever it is. Canva makes sure you never start from a blank page. They've got thousands of templates to choose from to get going instantly. And as a tool, it couldn't be simpler to use. Just drag, drop, or swap stuff in. You don't need a design degree. You just need an idea and a few minutes to make it real. Plus, the process can be as collaborative as you need it to be. Multiple people can work together on a project with color coded cursors tagged with everyone's name. No more wondering who changed what or extending a project's timeline by working asynchronously. It's teamwork without the hard work. So ask yourself, what will you Canva today? Try it at canva.com. Support for the show comes from Framer. Framer is the AI website builder that helps creators, teams, and businesses ship production ready sites faster than ever while getting every detail right. Prompt, inspect, edit, and publish in one place at a whole new pace. Agents and humans work in tandem. Agents bring speed and scale, while people bring taste, judgment, and control. Agents solve the gap between AI generated ideas and production ready website work. The agent works in the same place, where the real site is designed, managed, reviewed, and published. It lands on the canvas, stays editable, and can be published when the team is ready. Here's everything that can happen when your team and agents collaborate. You can build custom code components, create and manage CMS content, optimize SEO settings, audit for issues, and ship everything all in one place. Learn how you can get more out of your site from a Framer specialist or get started building for free today at framer.com/propg for 30% off of Framer Pro annual plan. That's framer.com/propg. Rules and restrictions may apply. Support for the show comes from USA Facts.
00:32:16 · Scott Galloway, Scott Galloway, Ted
I've interviewed countless politicians, and if there's one thing we all find disconcerting is when they butcher the facts with some biased half truth. Give us a break already. So when I had the chance to debate conservative podcaster Ben Shapiro, our natural response was bring it on. Why? Because it was sponsored by USA Facts, and each debate segment started with a presentation of government data and facts, employment, government spending, income data, housing, and more. The topic, the American dream. Is it still within reach? We argued. We found some common ground. We actually debated, and there were no personal attacks. Watch the full debate on The USA Facts YouTube channel. We think you'll find it unlike any other debate. That is entertaining and informative. We hope you check it out. [00:33:07] S1: Welcome back. Question number four. [00:33:10] S5: Hey, Scott. It is Ted from London. I have a question about statistics, more specifically statistics coming out of the White House. Last year, I think in August, he fired the head of the Bureau of Labor Statistics and put some of his own people in charge. So I'm wondering, can we trust all the jobs numbers coming out of this administration?
00:33:36 · Scott Galloway
[00:33:36] S1: Look, I have a bias here. I'm basically thinking you can't trust anything that's coming out of this administration. So what happened at the BLS? In August 2025, Trump fired BLS commissioner, Erika McEntarfer, I think that's how you say her name. I'm sorry, Erica. After a weak July jobs report, he accused her of bias against him without evidence. Extras rejected the charge noting the commissioner didn't produce the monthly estimates. Trump then nominated EJ Antoni, a conservative fireman with no government statistics experience. I'm mad at the public. I mean don't voters realize that if you prioritize fealty over confidence eventually like shit's not going to work? Anyways, according to The Wall Street Journal who had suggested suspending the monthly jobs report, after major bipartisan backlash, the White House withdrew the pick. Finally, in August of this year, the Senate confirmed Brett Matsumoto as BLS commissioner. Matsumoto is a career Matsumoto is a career BLS economist with eleven years of government, including a stint as senior economist at Trump's economic or Trump's council of economic advisers. Former BLS commissioner from both parties praised the pick. He's been hailed as a data nerd. But here's here's why the numbers... You know, you can have your own opinions, you can have your own data. And here's why the numbers are hard to fake regardless of who's in charge. Economists and frequent property markets guest Justin Wolfers says that the BLS survived intact. Career staff keep producing the data with the same processes and internal checks. Or put another way, Justin's saying you can trust these numbers. The jobs report draws on two separate surveys, one of household and one of employers. Outside researchers check the household data every month, and the employer's numbers are later checked against state unemployment insurance records. Private payroll data from companies like ADP, Bank of America, paychecks would start to diverge if the official numbers were doctored. Woofers tells us that real tampering would look like a tax on statisticians, unexplained changes in methods, and switch from monthly to quarterly reports. So where the numbers are actually weaker, fewer people fewer people answer BLS surveys, and the agency is short staffed and underfunded. Response rates fell from 66% in 2016 to 35% last December.
00:35:58 · Scott Galloway, Scott Galloway
And I also wonder who's actually answering these things. And funding fell more than 22% between 2010 and 2025 after inflation. Fewer responses means bigger revisions. BLS later found that it over job growth by roughly 860,000 jobs in the year ending March 2025. Why does this data matter? BLS produces the country's most important economic numbers, including inflation and unemployment, and its nonpartisan reputation is crucial to why global investors and policymakers rely on it so much. BLS staff had been saying a glass of water is never half full or half empty. It's 50% water and 50% air. In sum, these numbers matter. They're hard to mess with. But at some point, when you just choke it about oxygen and resources, it does begin... It does become harder to produce reliable, robust data. So anyways, I would say the answer is mixed, but I appreciate the question. That's all for this episode. If you'd like to submit a question for next time, email a voice recording to officehours@propmedia.com. Again, that's officehours@propgmedia.com or posted on the Scott Galloway subreddit. [00:37:04] S0: This episode was produced by Jennifer Sanchez and Laura Jenner. Cami Rica is our social producer, Brad Williams is our editor, and Drew Burrows is our technical director. Thank you for listening [00:37:13] S1: to The Prof G Pod and Prof G Media.