Podcasts > Growth Stacking Show with Dan Martell > How to Actually Use AI in 2026

How to Actually Use AI in 2026

By Dan Martell

The Growth Stacking Show with Dan Martell explores the practical applications and limitations of AI in business operations. The summary covers key insights about AI's role as a tool to enhance human capabilities rather than replace them, explaining how organizations can use AI as a "co-pilot" to make teams more efficient while preserving essential human elements like relationship-building and emotional intelligence.

The discussion delves into AI's current limitations, including its tendency to produce probabilistic, median outputs and occasionally unreliable data. The summary outlines strategies for effective AI implementation, emphasizing the importance of optimizing processes manually before automation, selecting specific AI tools that align with business needs, and maintaining a balance between AI assistance and human expertise in areas such as customer service and innovation.

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How to Actually Use AI in 2026

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How to Actually Use AI in 2026

1-Page Summary

AI to Enhance Human Capabilities, Not Replace Them

The integration of AI into the workforce should focus on enhancing human capabilities rather than replacing them. AI should serve as a "co-pilot" to make human teams ten times more efficient while preserving the uniquely human abilities to build relationships and sense energy in a room. However, it's crucial to optimize processes manually before implementing AI automation, as automating broken processes only makes them fail faster.

In customer service, while AI can handle repetitive tasks efficiently, maintaining human interaction remains vital for complex issues and gathering valuable customer feedback that drives business growth.

Understanding AI and Its Limitations

AI systems can "hallucinate" or provide unreliable data, typically offering probabilistic, median outputs. To leverage AI effectively, it's essential to understand its basic workings and limitations. Rather than chasing the latest AI trends, which can waste resources, organizations should focus on mastering specific AI tools that solve concrete customer problems.

Tailoring AI to Business Needs

AI should support rather than drive business strategy, as its probabilistic nature tends to produce median solutions rather than breakthrough innovations. While AI can provide valuable analysis, these insights should be validated by experienced professionals. The technology excels at scaling proven solutions but lacks the creative and visionary thinking inherent to humans.

To prevent "context rot" and ensure effective outcomes, businesses must carefully manage their AI systems with streamlined, relevant data rather than overwhelming them with excessive information.

Avoiding Common Pitfalls in AI Adoption

AI technology isn't just for IT professionals - it's accessible to all knowledge workers through intuitive, natural language programming. Rather than trying every new AI tool available, organizations should focus on mastering select platforms that align with their specific needs. Success with AI comes from integrating it with human expertise, relationships, and established processes, rather than relying on AI alone or copying others' prompts.

1-Page Summary

Additional Materials

Counterarguments

  • AI could potentially replace certain human roles, leading to job displacement and necessitating a discussion on retraining and the future of work.
  • Over-reliance on AI as a "co-pilot" might lead to skill degradation in humans, where they become too dependent on AI assistance.
  • Some processes might inherently require automation first to reveal inefficiencies that manual optimization might not address.
  • AI could potentially handle complex customer service issues with advancements in natural language processing and understanding, reducing the need for human intervention.
  • The probabilistic nature of AI outputs can sometimes lead to innovative solutions that humans might not have considered, challenging the idea that AI only produces median solutions.
  • AI might drive business strategy by identifying opportunities and efficiencies that humans overlook, suggesting that AI could play a more significant role in strategic decision-making.
  • The concept of "context rot" could be mitigated by advanced AI systems capable of adapting to new data and contexts without extensive human oversight.
  • While natural language programming makes AI more accessible, it might oversimplify complex AI concepts, leading to misuse or misunderstanding of AI capabilities.
  • Focusing on select AI platforms might limit the potential benefits of a diverse set of AI tools that could offer complementary insights and capabilities.
  • Integrating AI with human expertise is crucial, but there might be scenarios where AI can operate effectively with minimal human input, challenging the idea that human-AI integration is always necessary.

Actionables

  • You can enhance your daily productivity by setting up a simple AI assistant to sort your emails and schedule your appointments, allowing you to focus on creative tasks and personal interactions. For example, use a free or low-cost AI service to filter your inbox so that you only see high-priority messages, and let the AI schedule meetings based on your availability and preferences, which you can input through a user-friendly interface.
  • Start a habit of reviewing automated summaries of long articles or reports using an AI tool to save time and understand key points, but always cross-check facts or insights that seem unusual or out of context. This could involve using an AI-powered browser extension that provides summaries of lengthy online content, enabling you to quickly grasp the essence without reading every word.
  • Implement an AI-driven budgeting tool to analyze your spending patterns and suggest optimizations, but make final decisions based on your personal goals and values, not just the AI's recommendations. For instance, connect your financial accounts to an AI app that categorizes expenses and identifies areas where you can save money, but review these suggestions to ensure they align with your financial priorities before making changes.

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How to Actually Use AI in 2026

Ai to Enhance Human Capabilities, Not Replace Them

The integration of artificial intelligence (AI) into the workforce stirs much debate, but the central theme should be AI's role in enhancing, rather than supplanting, human capabilities.

Ai Should Enhance Human Teams, Not Replace Them

Humans Provide Unmatched Relationship-Building and Energy-Sensing Skills

AI technology cannot replicate the unique human ability to build relationships or sense the energy in a room; these human qualities are the competitive edge of any team. AI should be introduced with the aim of making human teams ten times more efficient, not to take over human jobs.

Ai As "Co-pilot" to Make Teams 10x Better, Not Replace Them

AI should function as a "co-pilot" for human teams, not as a replacement. The goal is to use AI to support, encourage, and upskill team members, showing them fresh possibilities and enabling them to perform their best work.

Automating Broken Processes Is Counterproductive

Automating a Flawed Process Makes It Broken Faster

Introducing AI into a flawed process does not resolve the inherent issues; it simply accelerates them. Automating a broken process without addressing the root problems will inevitably lead to those problems occurring more rapidly.

Optimize Processes Manually Before Ai Automation

Before deploying AI for automation, it's critical to manually optimize processes to identify what is effective. Once a solid, functioning process is in place, AI can be utilized to automate the most significant bottlenecks, thereby enhancing efficiency without causing further disruption.

Ai Should Enhance, Not Replace, Human Customer Service Interactions

Customer ...

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Ai to Enhance Human Capabilities, Not Replace Them

Additional Materials

Counterarguments

  • AI may eventually develop capabilities that can match or exceed human relationship-building and energy-sensing skills, challenging the idea that these are uniquely human traits.
  • In some cases, AI could potentially replace human jobs if it leads to greater efficiency, cost savings, and innovation, which might be beneficial for the economy in the long run.
  • Automating flawed processes with AI could be a strategic move if the automation provides data and insights that help identify and fix the underlying issues more effectively than manual optimization.
  • AI might be able to handle more complex customer service interactions in the future with advancements in natural language processing and understanding, reducing the need for human intervention even in nuanced touchpoints.
  • The integration of AI could inadvertently lead to a dependency on technology, which might reduce the development of human skills and capabilities if not mana ...

Actionables

  • You can enhance your collaboration with AI by setting up a personal AI assistant to manage your schedule and reminders, allowing you to focus on creative and interpersonal tasks. For instance, use a free AI scheduling tool to organize your meetings and set reminders for important tasks, which will free up mental space and time for you to engage in more meaningful work that requires human touch, like brainstorming sessions or networking.
  • Improve your work processes by manually mapping out your daily tasks and identifying inefficiencies before seeking AI solutions. Start by writing down the steps of your most time-consuming tasks, then look for patterns of redundancy or bottlenecks. Once you've streamlined the process on paper, explore simple automation tools, such as email filters or spreadsheet macros, to apply your optimized process, ensuring AI is enhancing an already effective workflow.
  • Enhance customer service experiences by using AI chatbots for initial customer inquiries on your personal blo ...

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How to Actually Use AI in 2026

The Importance of Understanding AI and Its Limitations

Understanding the inner workings and limitations of artificial intelligence (AI) is crucial for making informed decisions and avoiding unnecessary resource wastage. As AI continues to shape various sectors, it's important to grasp the fundamentals and appreciate the rapid evolution of AI technologies.

Misunderstanding AI Leads to Poor Decisions

Knowing how AI processes information is essential for leveraging its capabilities effectively.

AI Can Hallucinate and Provide Unreliable Data if Misunderstood

AI can "hallucinate" or make mistakes, leading to outputs that may seem plausible but are, in fact, incorrect. AI systems generally provide the most probabilistic answer, often a median and diluted output, regardless of the query. This inherent limitation stresses the importance of understanding that the data generated by AI may not always be reliable.

Master AI Basics by Having AI Explain Itself

To circumvent this problem, it's advisable to learn the fundamentals of AI and demand that the technology be transparent in its workings. By asking AI to explain how it operates, one can better craft and design AI tools to improve their functionality and reliability.

With the rapid pace of innovation in AI, following every new trend can distract from addressing core issues.

AI Evolves Quickly; Chasing Fads Distracts from Core Issues

AI technology advances quickly, making to ...

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The Importance of Understanding AI and Its Limitations

Additional Materials

Clarifications

  • "AI hallucinate" refers to when AI generates information that is fabricated or incorrect but presented confidently. This happens because AI models predict likely responses based on patterns in training data, not verified facts. Hallucinations can include false details, invented references, or nonsensical answers. Users must verify AI outputs, especially in critical contexts.
  • AI models generate responses based on patterns learned from vast amounts of data, predicting the most likely next word or phrase. This means the output reflects an average or common answer rather than a unique or deeply accurate one. As a result, AI may produce answers that sound plausible but lack precision or specific insight. This probabilistic nature can cause the AI to "dilute" complex information into simpler, more general statements.
  • AI processes information by analyzing patterns in vast amounts of data using mathematical models called neural networks. These models generate responses based on probabilities, not exact facts, which can lead to errors or "hallucinations." The AI does not understand content like humans but predicts likely outputs from learned data. This probabilistic nature causes variability in reliability depending on the input and training quality.
  • Demanding transparency from AI means requiring the system to reveal how it makes decisions or generates outputs. This can be done by using explainable AI techniques that provide insights into the model’s reasoning or data sources. Users can ask AI to describe its process or request documentation on its algorithms and training data. Transparency helps users trust AI and identify potential errors or biases.
  • Asking AI to explain how it operates means requesting the AI to describe its reasoning process or the steps it took to generate an answer. This can involve prompting the AI to outline the data it considered or the logic behind its response. Such explanations help users identify potential errors or biases in the AI's output. This practice improves transparency and trust in AI systems.
  • AI trends often change rapidly, making some tools or methods obsolete quickly. Constantly switching focus prevents deep understanding and skill development in any one area. This shallow engagement reduces effectiveness in solving real problems. ...

Counterarguments

  • AI's "hallucinations" or mistakes can sometimes lead to novel insights or creative solutions that a purely deterministic system might not produce.
  • While AI systems may provide median and probabilistic answers, this is not inherently a limitation but a feature that reflects the uncertainty present in real-world data and scenarios.
  • Demanding AI to be transparent in its workings can be challenging due to the complexity of some AI models, such as deep neural networks, which are inherently difficult to interpret.
  • The rapid pace of AI innovation means that staying informed about new trends can be crucial for maintaining a competitive edge and not falling behind.
  • Specializing in one AI platform or tool may risk missing out on advancements and capabilities offered by emerging technologies that could be more effective for certain tasks.
  • Chasing new AI developments can be beneficial for certain roles, such as researchers or technology strategists, whose jo ...

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How to Actually Use AI in 2026

Tailoring AI To Business Needs and Problems

In a business landscape increasingly influenced by artificial intelligence (AI), it becomes essential to understand how to effectively integrate AI in harmony with human capabilities.

AI Should Not Solely Drive Business Strategy

AI should support, not dictate, the strategic direction of a business. Its nature to work with probability and data means that AI tends to produce median solutions rather than innovative breakthroughs.

AI's Probabilistic Nature Yields Median Solutions, Not Breakthroughs

Because AI relies heavily on probability, it is not designed to yield innovative or breakthrough answers. It functions best when used to scale proven solutions rather than to drive strategic development from scratch.

Apply AI Analysis, Verify With Experts

The prudent move is to identify what works through manual processes, then reverse engineer those processes to understand their mechanics. After this, AI can be utilized to scale what has proven to be successful. It's still vital to employ AI for insightful analysis, but these insights must be validated with individuals who have experience in making related decisions in order to determine the validity and potential success of the strategy.

AI Has Limitations in Creative and Visionary Thinking

AI is anchored in existing data; it does not possess the capacity to envision entirely new possibilities or fresh, visionary ideas.

AI References Existing Information, Not Envision New Possibilities

Since AI systems operate based on existing information, they lack the inherent ability to conceive new ideas or envision unseen opportunities.

Use AI to Inspire Ideas and Validate, but Human Creativity and Vision Are Essential

AI can certainly inspire ideas and help validate them against existing data, but the essence of creativity and vision remains a distinctly human trait that is crucial for business innovation and strategy. ...

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Tailoring AI To Business Needs and Problems

Additional Materials

Clarifications

  • AI models analyze patterns in large datasets and estimate the likelihood of various outcomes based on past examples. Because they optimize for the most probable or average result, they tend to produce safe, typical answers rather than novel or radical ideas. Breakthrough innovations often require thinking beyond existing data patterns, which AI is not inherently designed to do. Thus, AI excels at refining and scaling known solutions but struggles to generate entirely new concepts.
  • "Median solutions" refers to AI's tendency to produce average or typical outcomes based on patterns in existing data. AI models optimize for the most probable or common results rather than rare or radical innovations. This happens because AI learns from historical data, which reflects past norms and trends. Consequently, AI is better at refining and scaling known solutions than creating entirely new ones.
  • Reverse engineering manual processes means carefully studying and breaking down how a task is done by humans step-by-step. This helps identify the key actions, decisions, and rules involved. Once understood, these elements can be translated into algorithms or models for AI to replicate and scale the process efficiently. This approach ensures AI automation is based on proven, effective human methods rather than guesswork.
  • "Context rot" refers to the gradual loss of relevant meaning when AI processes excessive or unrelated data. Irrelevant data dilutes the AI's focus, causing it to misinterpret or overlook key information. This leads to inaccurate or confusing outputs because the AI cannot distinguish what is important. Maintaining precise, relevant data helps preserve clear context and improves AI performance.
  • AI generates outputs by identifying patterns and relationships within the data it has been trained on. It lacks consciousness or subjective experience, so it cannot imagine concepts beyond its training information. Human creativity involves intuition, emotions, and abstract thinking, which AI does not possess. Therefore, AI can remix existing ideas but cannot originate truly novel or visionary concepts independently.
  • AI generates ideas by analyzing patterns and combinations from existing data, offering suggestions based on what has worked before. Human creativity involves imagining entirely new concepts, emotions, and possibilities beyond past experiences. Vision is the ability to foresee future trends and set bold directions that AI cannot predict from data alone. Thus, AI aids by providing data-driven inspiration, but humans provide original insight and strategic foresight.
  • AI-generated insights are based on patterns in data, which may miss nuances or context that humans understand. Human experts apply experience and judgment to assess whether AI conclusions are practical and relevant. This validation helps catch errors, biases, or oversights that AI might produce. Combining AI analysis with expert review ensures more reliable and actionable business decisions.
  • "Scaling proven solutions" means using AI to ex ...

Counterarguments

  • AI can sometimes lead to innovative breakthroughs by identifying patterns and correlations that humans might overlook.
  • With advancements in AI, some systems are capable of generating novel ideas or designs that can inspire human creativity.
  • AI can be a valuable tool in strategic development, especially when it comes to processing large amounts of data to inform decision-making.
  • Expert validation is important, but AI can also be used to challenge expert assumptions and bring new perspectives to strategic discussions.
  • AI's ability to envision new possibilities is improving with techniques like generative design and unsupervised learning, which can explore options beyond existing data.
  • Human creativity is essential, but AI can augment it by providing a broader range of options and by automating the exploration of creative spaces.
  • Context rot can be mitigated not only by streamlining data but also by improving AI's ability to handle complex and noisy data environments.
  • The combination of AI and human expertise can so ...

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How to Actually Use AI in 2026

Avoiding Common Pitfalls and Misconceptions Around AI Adoption

Adopting artificial intelligence (AI) in the workplace comes with its own set of potential misunderstandings. Here's how to avoid common mistakes and ensure that AI is utilized effectively.

AI Should Not Be Left To IT Professionals

AI Is for all Knowledge Workers, Not Just Experts

The idea that AI should only concern IT professionals is outdated. Today, AI technology is accessible to all knowledge workers and is programmed using intuitive, natural language. To think that you don't need to learn AI because your job isn't AI-related is akin to refusing to drive a car because you're not an auto mechanic.

Effective AI Training Unlocks Full Potential

Rather than leaving AI to the tech experts, it is advisable to provide effective AI training for all team members. Training allows everyone to leverage AI in their roles to enhance productivity, efficiency, and quality of work.

Solving Real Problems Over Chasing "Cool" AI Tools

Identify Problems First, Then Find AI Tools to Solve Them

It’s crucial to concentrate on tackling longstanding problems instead of getting distracted by the novelty of the latest AI tools. Identifying the real issues that need solving should be the primary focus, with AI serving as a means to resolve these challenges efficiently.

Mastering a Few AI Tools Is More Valuable Than Trying all New Ones

Mastering Select AI Platforms Is More Impactful Than Superficial Familiarity With Several

Rather than trying to keep up with every new AI tool on the market, it’s much more beneficial to master a select few. These specific AI platforms should be the ones that align closely with an individual's or an organization's needs.

Copying AI Prompts Won't Yield ...

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Avoiding Common Pitfalls and Misconceptions Around AI Adoption

Additional Materials

Clarifications

  • Knowledge workers are employees who primarily handle information and use their intellect to perform tasks. Their roles include professionals like analysts, managers, engineers, designers, and educators. They focus on problem-solving, decision-making, and creating or managing knowledge rather than manual labor. AI tools help them process data, generate insights, and improve productivity.
  • "Programmed using intuitive, natural language" means that users can interact with AI systems by typing or speaking in everyday language, rather than using complex coding languages. This approach allows people without technical skills to give instructions or ask questions in a way that feels natural. The AI then interprets these inputs to perform tasks or generate responses. This makes AI more accessible to a wider range of users.
  • AI prompts are specific instructions or questions given to an AI system to generate responses or perform tasks. They guide the AI on what information or output is desired. Effective prompts are clear, detailed, and tailored to the user's unique needs. Poorly designed prompts can lead to irrelevant or low-quality results.
  • AI prompts work best when they are specific to the user's unique context and goals. Copying prompts ignores differences in data, objectives, and desired outcomes. Customized prompts guide the AI to generate relevant and useful responses. Generic prompts often produce vague or irrelevant results.
  • Mastering AI tools means deeply understanding their features, capabilities, and limitations to use them effectively and creatively. Superficial familiarity involves only knowing basic functions without the skill to apply the tool to complex or specific tasks. Mastery enables problem-solving and customization, while superficial use limits productivity and innovation. True mastery often requires practice, training, and continuous learning.
  • AI enhances expertise by automating routine tasks, allowing experts to focus on complex decision-making. It strengthens relationships by enabling personalized communication and faster responses. AI optimizes processes through data-driven insights and efficiency improvements. Together, these elements create unique value that competitors cannot easily replicate.
  • Effective AI training for non-experts focuses on practical skills like understanding AI capabilities, ethical considerations, and how to craft clear prompts. It often includes hands-on exercises using user-friendly AI tools relevant to their work. Training emphasizes interpreting AI outputs critically rather than technical programming details. The goal is to empower users to confidently integrate AI into daily tasks without needing deep techn ...

Actionables

  • You can start a personal AI exploration journal to document your learning journey and the problems you aim to solve with AI. Begin by identifying a challenge you face regularly at work or in your personal life. Then, research AI tools that could help address this issue. As you experiment with different AI solutions, keep track of the prompts you use, the responses you get, and how well they solve your problem. This will help you develop a deeper understanding of how to tailor AI prompts and measure the effectiveness of AI in your specific context.
  • Organize a peer learning group with colleagues or friends to collectively enhance your AI skills. Each member could take turns presenting a real-world problem and then lead a group discussion on how AI could solve it. This collaborative approach allows you to learn from each other's insights and experiences, fostering a supportive environment for non-experts to grow their AI proficiency together. By focusing on actual problems, you ensure that the learning is grounded in practical application rather than abstract concepts.
  • Create a "problem-solution" portfolio whe ...

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