Can AI Help You Start a Company? + What Social Media Regulation Really Means

“His chatbot began hallucinating products and his ads were misleading, and the company is now facing regulatory scrutiny.” That is the real-world story Scott Galloway uses to open his answer to a listener question about whether AI can help start a company. The founder in question used ChatGPT to write code, generate marketing, and run customer service for a business projected to hit nearly $2 billion in sales with just two employees. But the same tool that made the company possible also created its biggest liability.

AI as a Business Co-Founder: All Chip, No Salsa

Galloway’s core argument about using AI for entrepreneurship is that the technology is excellent at execution but terrible at originality. He describes AI as “all chip, no salsa.” The problem, he explains, is that AI models work by scanning every pattern of words on the internet and returning the most statistically probable answer. That makes them regress to the mean. “Most new businesses make no sense at the outset, otherwise they would already exist,” Galloway says. “There’s a touch of crazy, and essentially AI is regressing to the mean because it looks at everything, it gives you an answer that is perfectly average.”