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You're listening to Bloomberg Business Week with Carol Messer and Tim Stenebek on Bloomberg Radio.

You're listening to Bloomberg Business Week with Carol Messer and Tim Stenebek on Bloomberg Radio.

Shanali, have you been to Nashville, Tennessee over sure?

Shanali, have you been to Nashville, Tennessee over sure?

Why did you go?

Why did you go?

My boyfriend's parents lived there.

My boyfriend's parents lived there.

Oh.

Oh.

I thought you were going to say a bachelorette party, because that's where everybody seems to go for bachelor and bachelorette partat for music too. It is great for music. In fact, it's actually one of the fastest growing cities in the country, and recently the Nashville Metropolitan City Council selected the Fallon Company to be the master development developer when it comes to a huge deal for the city. It's a multi billion dollar mixed use neighborhood called Nashville's East Bank, and it's set to reimagine thirty acres of dormant lots. We got with us Michael Fallon, the chief executive officer of the Fallon Company, joining us from Boston. Mike, good to have you with us this afternoon. How are you great, How are you We're doing well. Thanks, really appreciate you joining us. We love talking commercial real estate and real estate in general on the program, And I want to start big picture right now, because you're coming to us from Massachusetts. You've done a lot of work in the Boston area. How would you describe commercial real estate in the environment for a developer like yourself right now?

I thought you were going to say a bachelorette party, because that's where everybody seems to go for bachelor and bachelorette partat for music too. It is great for music. In fact, it's actually one of the fastest growing cities in the country, and recently the Nashville Metropolitan City Council selected the Fallon Company to be the master development developer when it comes to a huge deal for the city. It's a multi billion dollar mixed use neighborhood called Nashville's East Bank, and it's set to reimagine thirty acres of dormant lots. We got with us Michael Fallon, the chief executive officer of the Fallon Company, joining us from Boston. Mike, good to have you with us this afternoon. How are you great, How are you We're doing well. Thanks, really appreciate you joining us. We love talking commercial real estate and real estate in general on the program, And I want to start big picture right now, because you're coming to us from Massachusetts. You've done a lot of work in the Boston area. How would you describe commercial real estate in the environment for a developer like yourself right now?

Well, right now, it's challenging generally in the market.

Well, right now, it's challenging generally in the market.

I mean, looking at cost of capital, that's been the biggest change over the last couple of years. But that in post COVID, the post COVID world with office space, I think you've probably talked about it quite a bit. Yeah, people are trying to figure out how to convert space. That along with housing challenges, affordability, so all of the main top line things that you'll hear about macro wise.

I mean, looking at cost of capital, that's been the biggest change over the last couple of years. But that in post COVID, the post COVID world with office space, I think you've probably talked about it quite a bit. Yeah, people are trying to figure out how to convert space. That along with housing challenges, affordability, so all of the main top line things that you'll hear about macro wise.

So then enter this huge development happening in Nashville that I was just speaking about, the development that you've been awarded at the Fallon company. How do you pencil in numbers in a high interest rate environment and make it developed and like this work?

So then enter this huge development happening in Nashville that I was just speaking about, the development that you've been awarded at the Fallon company. How do you pencil in numbers in a high interest rate environment and make it developed and like this work?

Well, the market's all about timing and location, right The timing right now is it's great time to buy the structure with the city of Nashville, with Nashville Metro. It's a ground lease, so that affords some optionality and how you phase the project. We do larger scale mixed use urban projects which are going to be phased over a course of time, so we can time the markets and the cycles. Right now, Nashville couldn't be hotter for both residential but hotel and obviously the retail if you were there for this, as you mentioned earlier, bachelorette parties, different festivals, different music events.

Well, the market's all about timing and location, right The timing right now is it's great time to buy the structure with the city of Nashville, with Nashville Metro. It's a ground lease, so that affords some optionality and how you phase the project. We do larger scale mixed use urban projects which are going to be phased over a course of time, so we can time the markets and the cycles. Right now, Nashville couldn't be hotter for both residential but hotel and obviously the retail if you were there for this, as you mentioned earlier, bachelorette parties, different festivals, different music events.

Very good food too, I should say.

Very good food too, I should say.

Great Southern food.

Great Southern food.

But to get directly to your question, how do you pencil well, Nashville's got a.

But to get directly to your question, how do you pencil well, Nashville's got a.

Very very I would say, a.

Very very I would say, a.

Business friendly climate where the city's reinvesting in infrastructure, transportation, infrastructure, infrastructure for new development. So the East Bank, which is part lots, not all of that infrastructure burden is necessarily covered by us the developer. There's the two billion dollar Titan Stadium which will be next door that will cover some of it, and then some other civic institutions as well.

Business friendly climate where the city's reinvesting in infrastructure, transportation, infrastructure, infrastructure for new development. So the East Bank, which is part lots, not all of that infrastructure burden is necessarily covered by us the developer. There's the two billion dollar Titan Stadium which will be next door that will cover some of it, and then some other civic institutions as well.

So how do you feel about the growth of the area. You know, on one hand, we were just talking about how Nashville is very clearly a fast growing area. A lot of people moving there, a lot of businesses moving there as well, But how vulnerable is the area to things kind of slowing down at all if you're building commercial real estate, kind of thinking through how to navigate any potential volatility here in this short term kind of upward trajectory.

So how do you feel about the growth of the area. You know, on one hand, we were just talking about how Nashville is very clearly a fast growing area. A lot of people moving there, a lot of businesses moving there as well, But how vulnerable is the area to things kind of slowing down at all if you're building commercial real estate, kind of thinking through how to navigate any potential volatility here in this short term kind of upward trajectory.

Out of volatility in the short term across the board in every market, for sure. Nashville is not immune to it. Certainly in the apartment market. There have been a lot of buildings that have come online in the last year, and we'll continue for the next year.

Out of volatility in the short term across the board in every market, for sure. Nashville is not immune to it. Certainly in the apartment market. There have been a lot of buildings that have come online in the last year, and we'll continue for the next year.

But we're when we look at developments, we're looking.

But we're when we look at developments, we're looking.

At multi year deliveries, so we're looking at deliveries four or five years now, and the cycle for this project is it's thirty acres, so we're looking at a ten to fifteen year horizon.

At multi year deliveries, so we're looking at deliveries four or five years now, and the cycle for this project is it's thirty acres, so we're looking at a ten to fifteen year horizon.

When we're looking at that, we're looking at the main drivers of Nashville.

When we're looking at that, we're looking at the main drivers of Nashville.

Obviously you've get education with Vanderbilt and Belmont and Tennessee State, but healthcare huge, you know, a massive driver for Nashville along with tourism.

Obviously you've get education with Vanderbilt and Belmont and Tennessee State, but healthcare huge, you know, a massive driver for Nashville along with tourism.

How are you thinking about some of the surrounding areas that have seen a decline in rents as a result of sort of the cooling of the post pandemic boom that we've seen in the last year or so sun Belt areas in addition to that, Austin, Phoenix, not necessarily surrounding areas, but areas like Nashville that saw explosive growth during the pandemic. How do you look at those, I know, your longer term, but how do you look at that?

How are you thinking about some of the surrounding areas that have seen a decline in rents as a result of sort of the cooling of the post pandemic boom that we've seen in the last year or so sun Belt areas in addition to that, Austin, Phoenix, not necessarily surrounding areas, but areas like Nashville that saw explosive growth during the pandemic. How do you look at those, I know, your longer term, but how do you look at that?

Well, we look at that and we try to isolate the noise from what's you know, the baseline. So we saw such a run up so quickly during COVID that we think that was probably an anomaly.

Well, we look at that and we try to isolate the noise from what's you know, the baseline. So we saw such a run up so quickly during COVID that we think that was probably an anomaly.

So now we see more of a normalization.

So now we see more of a normalization.

Probably slightly different Austin or some of the Florida markets. We think Nashville has a lot more runway. Again the apartment market, definitely, there was a lot of building over the last few years and a lot of supply coming online relative to what's been in Nashville.

Probably slightly different Austin or some of the Florida markets. We think Nashville has a lot more runway. Again the apartment market, definitely, there was a lot of building over the last few years and a lot of supply coming online relative to what's been in Nashville.

The long term drivers, you.

The long term drivers, you.

Know, we wouldn't be making the investments that we are, and neither would other large companies unless we saw the runway sun Belt cities. They definitely had a lot of people pouring capital at them very very quickly. So normalization ordinary course of action for us, but priced into what we're doing.

Know, we wouldn't be making the investments that we are, and neither would other large companies unless we saw the runway sun Belt cities. They definitely had a lot of people pouring capital at them very very quickly. So normalization ordinary course of action for us, but priced into what we're doing.

You know, I know we've been talking about why Nashville for a minute here, but I guess I want to double down on the question here because clearly, you know you're speaking to us from Boston. Why is Nashville becoming an attractive area versus some of these other big cities that you've mentioned.

You know, I know we've been talking about why Nashville for a minute here, but I guess I want to double down on the question here because clearly, you know you're speaking to us from Boston. Why is Nashville becoming an attractive area versus some of these other big cities that you've mentioned.

Well, we actually started in Nashville in twenty nineteen, so this process for this project took a long time. This isn't the only project we're doing in Nashville, but we left Boston, or not left. We expanded out of Boston in twenty sixteen, and for a lot of the reasons you might think, looking at business environment's ability to develop, how crowded the marketplace was, and ended up doing Charlotte, Raleigh, and then Nashville. Nashville, I would speak to the in twenty nineteen pre COVID. The drivers are probably pretty similar to what we were seeing post COVID. The difference during COVID was to the boom in tourism spending that was so much more and that's actually stayed pretty steady. But even if it again normalizes a little bit, comes down a bit, it's still way above trend for what Nashville was five years ago. As long as infrastructure can keep up, which they're doing. They're reinvesting the States reinvesting another airport runway.

Well, we actually started in Nashville in twenty nineteen, so this process for this project took a long time. This isn't the only project we're doing in Nashville, but we left Boston, or not left. We expanded out of Boston in twenty sixteen, and for a lot of the reasons you might think, looking at business environment's ability to develop, how crowded the marketplace was, and ended up doing Charlotte, Raleigh, and then Nashville. Nashville, I would speak to the in twenty nineteen pre COVID. The drivers are probably pretty similar to what we were seeing post COVID. The difference during COVID was to the boom in tourism spending that was so much more and that's actually stayed pretty steady. But even if it again normalizes a little bit, comes down a bit, it's still way above trend for what Nashville was five years ago. As long as infrastructure can keep up, which they're doing. They're reinvesting the States reinvesting another airport runway.

Those are the kind of moves that make us comfortable.

Those are the kind of moves that make us comfortable.

Hey, Mike, what do people want in a redevelopment like this in twenty twenty four and you know in the coming years talk to us a little bit about not just amenities, but pedestrian access, what streets look like, vehicles not being present, those sorts of things.

Hey, Mike, what do people want in a redevelopment like this in twenty twenty four and you know in the coming years talk to us a little bit about not just amenities, but pedestrian access, what streets look like, vehicles not being present, those sorts of things.

Well, thanks for asking you.

Well, thanks for asking you.

It's a Over the past few years, I'd say sustainability has become a big, big topic. This site's right adjacent to the Cumberland River, so the Cumberland River does flood, so you have to make sure that you're you're building for those events. That's one aspect green building and sustainability. During COVID, I think we found a lot of people wanted to get outside more so having more accessibility with outdoors, especially in climates like Nashville where it's warm for the majority of the time. The office buildings are kind of a separate set of amenities. Those are less let's say, offices and more kind of congregating areas, right now that's kind of the trend hotels, bars, restaurants in Nashville. They want to be outside and they want to have patty. So in New York City, right you've seen the sidewalks or the parking spaces get taken over by restaurants, and I think a lot of people see that as a trend that they'd like to see continue as long as you can move.

It's a Over the past few years, I'd say sustainability has become a big, big topic. This site's right adjacent to the Cumberland River, so the Cumberland River does flood, so you have to make sure that you're you're building for those events. That's one aspect green building and sustainability. During COVID, I think we found a lot of people wanted to get outside more so having more accessibility with outdoors, especially in climates like Nashville where it's warm for the majority of the time. The office buildings are kind of a separate set of amenities. Those are less let's say, offices and more kind of congregating areas, right now that's kind of the trend hotels, bars, restaurants in Nashville. They want to be outside and they want to have patty. So in New York City, right you've seen the sidewalks or the parking spaces get taken over by restaurants, and I think a lot of people see that as a trend that they'd like to see continue as long as you can move.

Around the city.

Around the city.

So transit's important, and Nashville is working on a transit plan right now that I believe will go to a referendum soon.

So transit's important, and Nashville is working on a transit plan right now that I believe will go to a referendum soon.

What's the risk of overbuilding here? You know, you go down to Nashville, you see all the areas around the city, and the cities outside of Nashville proper are also growing quite quickly here. Do you think that there's a risk that the city gets overbuilt right now?

What's the risk of overbuilding here? You know, you go down to Nashville, you see all the areas around the city, and the cities outside of Nashville proper are also growing quite quickly here. Do you think that there's a risk that the city gets overbuilt right now?

There's always so there's definitely a risk that you have too many deliveries of buildings that are very similar in too short a time span. You know, I'll always say to folks, your growth solves everything, in the sense that we have economic growth in Nashville can support more development, provided that, again we're re investing in transportation, municipal infrastructure, schools, all of that. In downtown Nashville, we're trying to focus on not building commodity products so that we're not competing with every other project. So we're trying to be a little bit differentiated things that we're doing. Focusing a lot on designs, so we're not just doing a box, you know, forty stories up, trying to create interesting design there and then underground parking, things that make the building more attractive at street level that haven't been in the city. In New York, your lots, you're used to a lot of things that come with density. Nashville is just starting that, and so we're trying to bring those best practices. You mentioned cars and parking and streets. Yeah, we want a lot of green, we want a lot of different streetscape environments, a lot of color, vibrancy, ability to do events, whether it's week weekly events or weekend events, things like that.

There's always so there's definitely a risk that you have too many deliveries of buildings that are very similar in too short a time span. You know, I'll always say to folks, your growth solves everything, in the sense that we have economic growth in Nashville can support more development, provided that, again we're re investing in transportation, municipal infrastructure, schools, all of that. In downtown Nashville, we're trying to focus on not building commodity products so that we're not competing with every other project. So we're trying to be a little bit differentiated things that we're doing. Focusing a lot on designs, so we're not just doing a box, you know, forty stories up, trying to create interesting design there and then underground parking, things that make the building more attractive at street level that haven't been in the city. In New York, your lots, you're used to a lot of things that come with density. Nashville is just starting that, and so we're trying to bring those best practices. You mentioned cars and parking and streets. Yeah, we want a lot of green, we want a lot of different streetscape environments, a lot of color, vibrancy, ability to do events, whether it's week weekly events or weekend events, things like that.

We got to leave it there, but thanks for joining us. That's Michael Fallon, Chief chief executive officer over at the Fallon Company. It's a development company, a real estate development company known for fan Peer over in Boston. He mentioned some of the projects down in Charlotte, including Center South in Raleigh, North Carolina, Raleigh Crossing and Boston sixty Cys Cambridge Street, So projects like that joining us from Boston. Well, let's say you're watching an episode of Succession and you see that Loro piano baseball cap that Kendall Roy is wearing, and you think to yourself, yeah, I'd like one of those. So you pull out your phone pointed at the screen, and you're taking to a place to buy said baseball cap. Though it's there, you realize it cost a cool six hundred and twenty five dollars for a baseball cap, so maybe you rethink the purchase. That's not why I'm talking about this, though. I'm talking about the technology opportunity here and the commerce opportunity. That's what shop scents Ai is working on. It's a company that allows people we're watching something on TV to shop on their phones for products they see on the screen. Glenn Fishback is co founder and CEO of shop sense Ai.

We got to leave it there, but thanks for joining us. That's Michael Fallon, Chief chief executive officer over at the Fallon Company. It's a development company, a real estate development company known for fan Peer over in Boston. He mentioned some of the projects down in Charlotte, including Center South in Raleigh, North Carolina, Raleigh Crossing and Boston sixty Cys Cambridge Street, So projects like that joining us from Boston. Well, let's say you're watching an episode of Succession and you see that Loro piano baseball cap that Kendall Roy is wearing, and you think to yourself, yeah, I'd like one of those. So you pull out your phone pointed at the screen, and you're taking to a place to buy said baseball cap. Though it's there, you realize it cost a cool six hundred and twenty five dollars for a baseball cap, so maybe you rethink the purchase. That's not why I'm talking about this, though. I'm talking about the technology opportunity here and the commerce opportunity. That's what shop scents Ai is working on. It's a company that allows people we're watching something on TV to shop on their phones for products they see on the screen. Glenn Fishback is co founder and CEO of shop sense Ai.

He's here in the.

He's here in the.

Bloomberg Interactive Broker's studio. Did I get the vision right for the company?

Bloomberg Interactive Broker's studio. Did I get the vision right for the company?

You did?

You did?

It was awesome? Thank you, Tim, but yeah, and thank you for having me Sanelli.

It was awesome? Thank you, Tim, but yeah, and thank you for having me Sanelli.

Both of you.

Both of you.

Yeah, The vision for us is we want to create like that lean back experience for folks who basically can shop the stream, but can we do it in a more democratized kind of commerce kind of experience. So, while you're right when someone might snap take a snap in a shop and want to shop that, how do we create similar items and things that are more in line with what they can economically afford? Because you know, when you're watching all these types of shows, there might be an incredible amount of catoure around those various things. But can we make it all shoppable and make it affordable for folks based on whatever kind of economics hrata I mean a lot of people might even love pre loved items, you know, and from that standpoint, making it affordable for them. These are the kinds of things in today's world we're trying to do with our technology and working with the various broadcasters.

Yeah, The vision for us is we want to create like that lean back experience for folks who basically can shop the stream, but can we do it in a more democratized kind of commerce kind of experience. So, while you're right when someone might snap take a snap in a shop and want to shop that, how do we create similar items and things that are more in line with what they can economically afford? Because you know, when you're watching all these types of shows, there might be an incredible amount of catoure around those various things. But can we make it all shoppable and make it affordable for folks based on whatever kind of economics hrata I mean a lot of people might even love pre loved items, you know, and from that standpoint, making it affordable for them. These are the kinds of things in today's world we're trying to do with our technology and working with the various broadcasters.

There are two questions here because both of these worlds are changing so quickly, the world of broadcasting and media and the world of AI. So, starting with broadcasting, how has the move to streaming and kind of the disruptions among all these big players been impacting the way you do business and approach these companies.

There are two questions here because both of these worlds are changing so quickly, the world of broadcasting and media and the world of AI. So, starting with broadcasting, how has the move to streaming and kind of the disruptions among all these big players been impacting the way you do business and approach these companies.

I think, thank you Saneli for the question. I think for us, we're trying to help these broadcasters. They spend so much money on original content. I mean, as lots of research around last year in Variety they said across all these various broadcasters spent over thirty billion dollars in generating creating original content, creating shows like Succession, and they need to offset those expenses in a more thoughtful way. Also, there's just you think about TikTok short form video, and they're attaching commerce to these kinds of experiences. So broadcasters, you think about it. You think about that when Friends first came out, everyone wanted to have that sweater or they wanted to have that haircut. You know, from the various characters, there is always this element of shoppability to it. And so today with AI and being able to make take advantage of that ability to turn things into shoppable items, I think that's the next frontier for these broadcasters in a very thoughtful way, because again you don't want to disrupt you know, those producers and all that, and the folks who are building these shows. We don't want to mess with the experience and with the shop Sense technology. We're leveraging the phone, the secondary device in a more thoughtful way where it again it could leverage a QR code, but we're not disrupting. Think of it like Shazam, you know, like remember that Shazam to say yeah exactly for four hundred million dollars. And the thing is it was like discovery and inspiration, but I didn't mess with the song. And that's what we're trying to do.

I think, thank you Saneli for the question. I think for us, we're trying to help these broadcasters. They spend so much money on original content. I mean, as lots of research around last year in Variety they said across all these various broadcasters spent over thirty billion dollars in generating creating original content, creating shows like Succession, and they need to offset those expenses in a more thoughtful way. Also, there's just you think about TikTok short form video, and they're attaching commerce to these kinds of experiences. So broadcasters, you think about it. You think about that when Friends first came out, everyone wanted to have that sweater or they wanted to have that haircut. You know, from the various characters, there is always this element of shoppability to it. And so today with AI and being able to make take advantage of that ability to turn things into shoppable items, I think that's the next frontier for these broadcasters in a very thoughtful way, because again you don't want to disrupt you know, those producers and all that, and the folks who are building these shows. We don't want to mess with the experience and with the shop Sense technology. We're leveraging the phone, the secondary device in a more thoughtful way where it again it could leverage a QR code, but we're not disrupting. Think of it like Shazam, you know, like remember that Shazam to say yeah exactly for four hundred million dollars. And the thing is it was like discovery and inspiration, but I didn't mess with the song. And that's what we're trying to do.

Okay, So let's talk about the technology. Because you're from New York, you spend your career in Silicon Valley. Your background is in advertising and marketing, but also at tech companies like eBay for example. So talk to me a little bit about the technology and how you're able to zamify video.

Okay, So let's talk about the technology. Because you're from New York, you spend your career in Silicon Valley. Your background is in advertising and marketing, but also at tech companies like eBay for example. So talk to me a little bit about the technology and how you're able to zamify video.

Okay, cool, So what first and foremost you have to get the retailers and so our technology.

Okay, cool, So what first and foremost you have to get the retailers and so our technology.

What we've done is we've secured.

What we've done is we've secured.

Relationships with well over one thousand retailers directly in which we got their product feeds, and then leveraging computer vision technology, which is a form of AI, we've built all sorts of algorithms to actually organize all that content. So when the curation and the process occurs, we're able to organize by show type, by the type of programs, or what the actual producers for the specific shows are being able us to show us what people are wearing. The technology can actually curate the content.

Relationships with well over one thousand retailers directly in which we got their product feeds, and then leveraging computer vision technology, which is a form of AI, we've built all sorts of algorithms to actually organize all that content. So when the curation and the process occurs, we're able to organize by show type, by the type of programs, or what the actual producers for the specific shows are being able us to show us what people are wearing. The technology can actually curate the content.

So that's one side of your market. The other side of your market is consumers, the people who are actually watching this stuff, yes, and you want to buy this stuff. How does the tech work on that side?

So that's one side of your market. The other side of your market is consumers, the people who are actually watching this stuff, yes, and you want to buy this stuff. How does the tech work on that side?

Well, in its current format, we are allowing them via QR code, So on the glass, if they see the actual shoppable moment, they can see the QR code and take a snap of that and it takes them right into it into our stores where it's all curated based on various types of subjects in the areas, so that.

Well, in its current format, we are allowing them via QR code, So on the glass, if they see the actual shoppable moment, they can see the QR code and take a snap of that and it takes them right into it into our stores where it's all curated based on various types of subjects in the areas, so that.

QR code will come up on the screen.

QR code will come up on the screen.

Yeah, I can imagine it's not disruptive for like live sports or for like a game show for example, or news, but I could see it being disruptive for a drama.

Yeah, I can imagine it's not disruptive for like live sports or for like a game show for example, or news, but I could see it being disruptive for a drama.

I think for various types of shows it works really well. I think of live events, it'll make you know, for sports it will work really well, or you know on the run way type we for Paramount, we launched for the CMT Awards and you know the red carpet, you know, aspect of it. I think it's a really good use of the use of the technology. I think for certain types of things, we can message people after the show interesting, you know, that could be one thing. And then we are releasing in the summer the ability to snap use the camera and again take a picture of what's on the glass and then produce results along that as well.

I think for various types of shows it works really well. I think of live events, it'll make you know, for sports it will work really well, or you know on the run way type we for Paramount, we launched for the CMT Awards and you know the red carpet, you know, aspect of it. I think it's a really good use of the use of the technology. I think for certain types of things, we can message people after the show interesting, you know, that could be one thing. And then we are releasing in the summer the ability to snap use the camera and again take a picture of what's on the glass and then produce results along that as well.

So you have the one word here that has been the hot ticket in the world of you know, investing AI. Right, how is AI actually being used to kind of change this technology? Given AI itself is changing so quickly.

So you have the one word here that has been the hot ticket in the world of you know, investing AI. Right, how is AI actually being used to kind of change this technology? Given AI itself is changing so quickly.

So for us, how we're leveraging AI is automation and scalability. And where what I mean by that is the ability to when we're building all these stores and curating all these outfits, we're letting the technology create that automatic merchandising of all the specific items in the store. So when we're taking a picture of maybe this sport code, the technology is looking in the database of five hundred million shoppable SKUs. Because as I told you, we collected we have relationships with a thousand retailers, one thousand plus retailers. We have that all their content through product feeds, and so the technology has to go through that and match all this stuff in a large way, and that's leveraging AI to create all those shoppable looks and then we're trying to do this on So from that standpoint, that's one element of it. The other element of it is how do we become more efficient to launch different shows stores for all the different content at scale because today there are in certain companies it's done mainly and it's just not cost efficient, and so we're trying to automate that process and do it on a repeated basis.

So for us, how we're leveraging AI is automation and scalability. And where what I mean by that is the ability to when we're building all these stores and curating all these outfits, we're letting the technology create that automatic merchandising of all the specific items in the store. So when we're taking a picture of maybe this sport code, the technology is looking in the database of five hundred million shoppable SKUs. Because as I told you, we collected we have relationships with a thousand retailers, one thousand plus retailers. We have that all their content through product feeds, and so the technology has to go through that and match all this stuff in a large way, and that's leveraging AI to create all those shoppable looks and then we're trying to do this on So from that standpoint, that's one element of it. The other element of it is how do we become more efficient to launch different shows stores for all the different content at scale because today there are in certain companies it's done mainly and it's just not cost efficient, and so we're trying to automate that process and do it on a repeated basis.

Very cool stuff, Glenn, thanks, thank you for stopping by.

Very cool stuff, Glenn, thanks, thank you for stopping by.

Yeah, thank you so much, Tim and Chanelle.

Yeah, thank you so much, Tim and Chanelle.

That's Glenn Fishback, co founder and CEO of shop sense AI, joining us here in the Bloomberg Interactive Brokers studio

That's Glenn Fishback, co founder and CEO of shop sense AI, joining us here in the Bloomberg Interactive Brokers studio