Subscribe to my new podcast, The Gobsmack Podcast here. Summary: In this episode I explore why customer experience, not AI, is the real competitive advantage of the future, and how service businesses can escape commoditisation by entering the experience economy. 4 things you'll learn in this episode Why 'predicting the future' is no longer a viable business strategy in the age of AI, and what to focus on instead. How AI is collapsing the margins of service industries, and why doing things that don't scale becomes your real edge. The four economic stages every business sits in (commodity, product, service, experience), and why climbing this ladder is the biggest unlock for premium pricing. The data that justifies investing in customer experience, including how it can grow revenue 25% faster and explain up to 60% of organic growth. Transcription: The world of business is changing in ways that are equal parts mind-bending and terrifying. Needless to say, it's Artificial Intelligence that is acting as the absolute driving force of this transformational shifts in human civilisation. It's not only the change, but the rate of change. We're in the middle of the singularity. In technical terms, this is '…the point where artificial intelligence becomes capable of improving itself so rapidly that technological progress accelerates beyond normal human ability to predict, control, or understand.' (OpenAI, 2026). Again, '…beyond normal human ability to predict, control, or understand.' It's our inability to 'predict' that really interests me. And the interesting part of that word is the idea that until now, the world of business has been built on the idea that by predicting human needs, desires and behaviours, we can build and position our businesses for success. This is often referred to as 'skating to where the puck is going'. The concept is pretty self explanatory. It's an ice hockey term. The puck in ice hockey moves so fast, that by the time you get to it, it's gone. Instead, the best players have learnt to skate not to where the puck is, but to where they predict it will be. They 'skate to where the puck is going'. There's that word again, 'predict'. They skate to where they predict the puck will be. But remember, the pending AI singularity is characterised by changes that are '…beyond normal human ability to predict…'. We no longer know where the puck is going. And so we don't know in which distance we should skate. Business owners and entrepreneurs who have always built their success off the back of prediction are now playing ice hockey with a blindfold on. This is something I've thought a lot about over the last few years. And it's made me wonder if we might be asking the wrong question. The question shouldn't be 'where is the puck going?', but 'is there a puck that's staying still?'. If the puck isn't moving, we avoid the need to make predications all together. There's another convenient ice hockey term that allows us to continue this analogy, 'freezing the puck'. It's when the goalie covers the puck to stop play. The question becomes, 'in a world of unprecedented change, what will stay the same?' What is the frozen puck? The answer, as best as I can see, comes down to a single word. Experience. The human desire to live an experience. Something that they can actively participate in. Something that makes people feel a certain way. Something that gives people stories to tell. These experiences will be the currency of the future. Singing Beatles songs while toasting marshmallows around a campfire with the people you love. Getting clay under your fingernails while crafting a bowl on a pottery wheel with your best friend. Watching the sun set with your feet in the Indian Ocean, then racing your kids up a sand dune in time to watch it set again. People are always searching for the meaning of life. These things are better and more important, because they allow you to find meaning IN life. And so, I'm going all in. I'm betting the farm. I'm betting my business and my career… on experience. On customer experience. I'm transforming how I do things, and I'm launching Gobsmacking Consulting, to help service based businesses design remarkable customer experience. More on Gobsmack Consulting later. For the last year, I've given every spare second I have to the deep exploration and understanding of customer experience. What I've pieced together has been nothing short of enlightening for me. I've found that in an increasingly transactional, impersonal and sterile business landscape, customers are aching for connection and individualisation. They're aching for a story to tell. They want to feel something. And that's the purpose of customer experience, creating remarkable experiences that make people feel a certain way. The essayist, Maya Angelou, famously said, 'People will forget what you do but will never forget how you made them feel.' In his 2022 book, 'Unreasonable Hospitality', author and restauranteur, Will Guidara told us 'Fads fade and cycle, but the human desire to be taken care of never goes away'. This is all well and good, but there needs to be a business case for customer experience. Unfortunately, it's not enough to elicit a feeling in someone, in business, we also need to make money. You must be able to justify the financial value of spending resources on increasing experience. And the data gives us strong evidence to make this justification, supporting the idea that businesses with better customer experience have better bottom lines. This evidence runs deep: Businesses in the top quartile for customer advocacy grow revenue up to 25% faster than bottom-quartile competitors (Marsden et al., 2005). A seven-point increase in Net Promoter Score (a measure of customer experience) correlates with roughly a 1% increase in revenue (Marsden et al., 2005). In many industries, the customer experience leader grows more than twice as fast as its competitors (Bain & Company). Customer experience differences can explain roughly 20% to 60% of the variation in organic growth between competing businesses (Bain & Company). Emotionally connected customers are more than twice as valuable as merely satisfied customers (Heath & Heath, 2017). Better customer experience increases lifetime value because customers tend to pay more, buy more often, and stay longer (Gingiss, 2021). Acquiring a new customer can cost five to 25 times more than retaining an existing one (Gallo, 2014). Let's return to that elephant in the room, artificial intelligence. There's no denying or ignoring the role that artificial intelligence will play in the future of business. No matter your industry, the impact of AI on your business will be nothing short of extreme. It's a revolution, and no business is immune. Let's look at how AI will change your business, and where customer experience will fit into this rapidly changing future. Technology blogger, Carl Cortright, writes, 'The core concept is simple. AI agents are beginning to commoditise what used to be high-margin service industries. We are moving toward a world where services that used to cost hundreds of thousands of dollars will cost tens to hundreds. The end result is inevitable. Services will become ubiquitous and embedded in everything we do, but the margins for the businesses providing them will collapse… The (AI) agents are coming. The margins are compressing. And knowledge work is about to become as cheap and accessible as flipping a switch.' AI is basically a technology that allows for near infinite systemisation and near infinite scalability. Everything that was expensive, difficult or time consuming is becoming cheap, easy, and instantaneous. And if you're not embracing that, you just won't keep up, we can't see your business surviving. Implementation of AI is simply a cost of entry to running a service based business, it's something you need to be doing to just be in the same conversation as your competition. So, in my pursuit of the 'frozen puck', here's where I see an opportunity. With a mass global embrace of AI, the playing field will be instantly levelled. While the early days of the technology saw the use of AI as a competitive advantage, as the technology becomes mainstream, businesses will need to find something new to make them stand out. Given a long enough timeframe, no one can predict the impact of AI, but for at least the medium term, there's a huge opportunity. We can't compete with AI as the ultimate tool to make things that scale. So we need to ask ourselves 'What is unscalable?'. From his article of the same title, essayist Paul Graham would advise us to 'do things that don't scale'. I couldn't agree more. Everyone is focussing on how AI will change the future of customer businesses. But businesses need to focus on the things that won't change. We need to ask ourselves, 'what will stay the same?'. Branding expert, Marty Neumeier, encourages people to 'zig when everyone else is zagging'. Everyone is focussed on AI-enabled systemisation and automation. And sure, you should be too. Yes, smart business owners will focus on AI tools, but they'd that while also 'zagging' to build a customer-experience-driven competitive advantage. Everyone is looking for automation. This is what AI promises. People are going to crave things that do not scale. This is what we need to provide through customer experience. The modern history of business has followed three distinct stages. First, commodification, where businesses that try to compete on price, and end up losing what could make them special and unique. Think about bulk-billing medical centres, walk-in $15 hair cuts or $9 per week 24 hour gym memberships. By 'commodifying a service', the service becomes highly scalable and very cheap, but strips away all sense of brand or emotional attachment. Only very slightly better than commodities, are products. With products, we start to