#223 - EQ Is Beating IQ: Ilan Man (Paradox Machines) on Leading in the AI Era

Most companies don't have an AI problem. They have a data problem. Ilan Man, founder and CEO of Paradox Machines, joins Mark Perkins for a hype-free conversation about what AI actually means for mid-market businesses. A former actuary turned data science leader at Squarespace, Paperless Post, Formation Bio, and the Brooklyn Data Company, Ilan now builds AI-native data systems for companies that could never before afford them. They cover why EQ is becoming more important than IQ, the new economics of AI services, why you're renting your data from your SaaS vendors, and his contrarian advice: buy something cheap off the shelf and live in the world of pain before you build anything custom. Practical, direct, and built for business owners. Key takeaways: - Most companies don't have an AI problem; they have a data problem. Fix the data foundation before buying AI tools. - Separate AI as a tool from the business of AI. The trillion-dollar narratives from AI CEOs have little to do with your day-to-day operations. - EQ is becoming more important than IQ. As AI commoditizes raw intelligence, interpersonal skill is the differentiator. - A new category, AI-native services, is emerging between low-margin consulting and high-margin SaaS, targeting 50 to 60 percent margins and above. - You don't own your data; you're renting it. If you can't freely export and use it, your SaaS vendor's moat is built on your data. - Most AI decisions are two-way doors. Buy something cheap off the shelf, live in the world of pain for six months, and you'll know exactly what to fix. - Just because you can vibe-code a CRM doesn't mean you should. Building is cheaper than ever, but change management is the real cost. - Design for no lock-in: open data formats, portable code, and systems that stay in your environment. - The winning org structure is compressing to sellers and builders on the edges with AI in the middle, squeezing middle management. - Token and energy costs are rising but secondary; human capital is still the main cost, and model economics shift every six months. Listen to *The Necessary Entrepreneur* with Mark Perkins for practical conversations about entrepreneurship, business growth, leadership, mindset, and the decisions that shape successful careers. 📌 Connect With Us:  Website: https://www.thenecessaryentrepreneur.com/ YouTube: https://www.youtube.com/@thenecessaryentrepreneur Instagram: https://www.instagram.com/thenecessaryentrepreneur/ Facebook: https://www.facebook.com/TheNecessaryEntrepreneurPod X (Formerly Twitter): https://twitter.com/MPerkinsTNE LinkedIn: https://www.linkedin.com/company/tnepod/ TikTok: https://www.tiktok.com/@tneclips Spotify: https://open.spotify.com/show/6xhGUE1yzy2N0AemUOlJPx?si=d1c5c316af404f15 Apple Podcasts: https://podcasts.apple.com/no/podcast/the-necessary-entrepreneur/id1547181167 📌 Find Out More About Ilan Man & Paradox Machines: https://www.linkedin.com/in/ilanman/ https://www.paradoxmachines.com/