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Substack Newsletter

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You can be ambitious without the huge token bill. Here's how. thumbnail

· 30:57

You can be ambitious without the huge token bill. Here's how.

While advanced AI agents increase capability and token consumption, the rising cost is defensible only if the work they perform is genuinely new and valuable. The core strategy for cost control is not simply finding a cheaper model, but fundamentally redesigning the business workflow by eliminating unnecessary 'interoffice envelope' steps. By focusing on the desired business outcome, engineers can minimize handoffs and reserve expensive, frontier models for complex, exceptional cases, while using cheaper models for routine, deterministic tasks.

Key takeaways

  1. Redesign the Workflow, Don't Just Buy an Agent 24:12

    Before selecting a model, determine which work should exist at all. Start by defining the desired business outcome (e.g., an accurate quote) and map the most efficient path to achieve it, rather than simply automating the existing, often redundant, process.

  2. Separate Value-Add Work from Administrative Overhead 26:40

    Many existing enterprise steps (like summarizing requests for different departments) exist because previous systems lacked interoperability. Identifying and eliminating this 'admin work' can drastically shorten the workflow and reduce token consumption.

  3. Match the Model to the Task Complexity

    Not all work requires the highest intelligence. Reserve expensive, frontier models for the 1-5% of challenging, exceptional cases. Use cheaper, open-weights models for routine, deterministic tasks (e.g., calling a CRM or applying known pricing rules).

  4. Implement Evaluation (Evals) for Reliability

    To ensure a redesigned process works, implement rigorous evaluation (Evals) to check if the agent's output is not just 'approximately right,' but factually correct and meets business requirements. Evals are a critical human skill for maintaining quality.

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Agents Aren't Taking Your Jobs. They're Creating More Work Instead. thumbnail

· 31:14

Agents Aren't Taking Your Jobs. They're Creating More Work Instead.

AI agents are generating significantly more work for humans—an 'agent management tax'—rather than eliminating it. The complexity of managing these agents scales dramatically from individual use to enterprise deployment. While verifiable domains (like legal or coding) show rapid adoption due to clear success criteria, small businesses often struggle with limited capital and resources. Enterprises gain a significant advantage by having dedicated teams for agent governance, security, and deep integration, which is necessary to manage the increased complexity.

Key takeaways

  1. Agents create work, they don't eliminate it

    The common assumption that agents will reduce headcount is incorrect. Data shows agent token usage is increasing rapidly (e.g., 14-fold between February and August on Open Router), with agents burning more than five tokens for every one a human burns. This necessitates new management roles.

  2. The role shifts to 'Above the Loop' 20:00

    As agents improve, the human job is shifting from execution to oversight: deciding what runs, providing context/permissions, checking results, and intervening when failure occurs. This requires domain knowledge (e.g., legal expertise) to validate outcomes.

  3. Enterprise advantage lies in capital and structure 24:19

    Enterprises report better returns because they can afford dedicated teams (security, quality control, product management) to handle the complex setup, monitoring, and integration required for agent deployment. This deep investment is necessary for scaling.

  4. SMBs must focus on verifiable domains 28:20

    Small businesses struggle when agents are used in non-verifiable domains (e.g., general business operations). Success requires finding processes they already perform manually and letting the agent handle only the preparatory steps.

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AI Slop Is Costing You Hours. Here's How To Stop Sending It. thumbnail

· 15:06

AI Slop Is Costing You Hours. Here's How To Stop Sending It.

The video argues that 'AI slop'—low-effort content generated by Large Language Models (LLMs) without human refinement—is a significant drain on professional time and clarity. The speaker asserts that relying solely on anti-slop checklists is insufficient because LLMs fundamentally converge toward similar, predictable patterns ('hill climbing'). True quality requires focusing on 'authorship' as an iterative process of wrestling with the material, ensuring accountability, and maintaining unique human voice.

Key takeaways

  1. Authorship vs. Tools

    The core issue is not a style problem but one of authorship; AI tools accelerate passes but cannot decide if the work genuinely reflects the author's intent or thought process (12:39).

  2. The Danger of Slop 7:15

    AI slop doesn't eliminate the work; it merely pushes the burden downstream, requiring human readers to spend time checking and correcting unvetted content (4:35).

  3. The Process of Authorship 14:10

    Authorship must be treated as a process—a commitment to refining the work until it is clear and true enough to communicate, rather than just an output (8:50).

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