The Paradox of AI: Balancing Technology with Human Connection

A candid conversation with William Welser IV on ethics, storytelling, and the future of AI

William Welser IV offers a refreshingly human-centered perspective on technology in a world obsessed with efficiency and automation. His recent conversation with Todd Gagne on the Startup Stories from the Treehouse podcast is essential for founders navigating AI, ethics, and product development.

The Non-Linear Path to Purpose

Welser's journey is unconventional. He has gone from military officer to chemical engineer to RAND Corporation researcher to AI startup founder. What ties this path together is a mission to help people and create meaningful change.

He said, "I've always wanted to help people... You can take any path to your goal as long as you know where you're going."

Founders questioning their non-linear journeys should embrace this perspective. Welser's experience at RAND Corporation was formative, where he describes the organization as "an umbrella for a bunch of startups" with researchers running their own companies.

LOTIC: Building Technology That Respects Humanity

Welser founded LOTIC because he saw that "the technology world was upside down." While most tech companies squeeze users for data for financial gain, Welser envisioned something different:

• Technology that benefits individuals instead of exploiting them.

• Systems that protect personal data through advanced encryption.

• Solutions that help people gain self-awareness and make informed decisions.

The core innovation is using spoken word as the richest source of personal data while ensuring data security and individual ownership. LOTIC's platform leverages storytelling to capture nuances that text cannot, with their proprietary "Wisdom Engine™" analyzing patterns in thoughts, emotions, and behaviors to provide tailored insights.

Actionable Insights for Founders

1. Redefine Human-Centric Design

Many companies claim to be "human-centric" but they are just "making things faster." As Welser observes:

"Human centricity was to make your job faster. It wasn't building from the ground up to have something truly focused on you, individualized, and personalized. Not to do a task faster, but to enhance your life."

This distinction is important for founders building AI products. Ask yourself:

• Are you speeding up existing processes or fundamentally improving lives?

• Does your product treat users as unique individuals or as data sources?

• Are you designing for transactions or connections?

2. Embrace "Show Your Work" Methodology

An anecdote from the conversation involves an English teacher who instructed students to "show your work"—as in math class, instead of fighting against AI. This approach acknowledges AI tools and maintains accountability for learning.

Founders can apply this principle by:

• Creating transparent processes where decisions and their rationale are recorded.

• Building products that enhance human understanding rather than complicate it

• Designing team cultures where the process matters as much as the outcome

Welser explains, "We need to teach people that friction is necessary for learning."

3. Build Interdisciplinary Teams

Welser's most practical advice:

"It's easy to build a software solution with software engineers. However, it's harder to bring in a behavioral scientist or someone unfamiliar with software engineering and have them involved from the start."

His hiring priorities reflect this wisdom. The first hires for his technology company were behavioral scientists, not engineers. This difficult decision for him as an engineer proved critical to LOTIC's human-centered approach.

The team structure of LOTIC exemplifies this approach, combining behavioral scientists, clinicians, engineers, content creators, and product designers to create a comprehensive solution.

4. Foster Intellectual Curiosity Through Humility

Welser maintains two powerful principles that should be emblazoned on every founder's wall:

"I'm in the wrong place if I walk in and think I'm the smartest person."

And more importantly, "Consider you are wrong."

These principles aren't just philosophical—they're practical guidelines against the founder ego that can derail startups. By institutionalizing these attitudes, founders can:

• Create cultures where challenging assumptions is encouraged, not penalized.

• Make better decisions by considering various viewpoints.

• Adapt quickly when market feedback contradicts internal assumptions.

5. Have Difficult Conversations Early

Welser addresses a painful but critical topic for founding teams:

"It's hard with a bunch of cofounders together. Then suddenly, you have two camps. Know when to call it, like, hey. We either need to split or address this."

His observation that "one of the biggest problems that [founders] have is they don't know when to cut each other off as cofounders" speaks to the avoidance of difficult conversations that can jeopardize promising ventures.

For founders, this means creating regular, structured opportunities to ensure alignment on vision, values, and execution—even when it feels uncomfortable.

The AI Paradox: Tools vs. Thinking

A thought-provoking segment addresses how AI tools might impact different generations. Welser suggests that those who grew up before these tools (like Gen X) might benefit more because they understand the "friction" required to learn—the messy middle steps between problem and solution.

He warns against offloading cognitive responsibility. He says, "If you see no friction and you're used to getting from A to D easily, what happens without those tools?"

This raises important questions for founders building AI tools:

• Are you creating products that improve or substitute human thinking?

• Does your solution help users develop skills, or does it offload them?

• How will your users manage when they encounter problems your AI can't solve?

Beyond Ethics as Lip Service

While many startups discuss ethical AI, LOTIC demonstrates it through their privacy-first design, ethical data use policies, and community impact initiatives. Their partnerships with RAND and international NGOs allow underserved communities to share their stories and assist aid groups in gaining insights.

This approach shows that ethical design isn't just morally right. It is a sustainable business model that creates deeper user trust and opens opportunities for partnerships beyond commercial markets.

Final Thoughts

Welser's perspective is refreshing and challenging in a startup ecosystem dominated by efficiency metrics and growth hacking. He reminds us that lasting impact comes from technology that serves humanity rather than exploiting it.

He states: "If you want lasting impact, to look at your loved ones and tell them you did something good for the world... then take [the human-centered] approach."

This is not the fastest path to profit, but as LOTIC demonstrates, it is the path to building technology that improves lives while respecting human dignity and agency.

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For more insights from William Welser IV, check out his upcoming book "The Story Economy" available for pre-order on Amazon, or follow him at @williamwelseriv and visit lotic.ai.

Listen to the full conversation on the Startup Stories from the Treehouse podcast for more wisdom on balancing technology with humanity.
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