Cuetip Founder Keith Domingo on Cannabis Profitability and AI Costs
CANNABIS & TECH TODAY · BUSINESS & TECHNOLOGY
Keith Domingo discusses the operating data, regulatory pressures, and AI expenses that shape cannabis business decisions.
Key Points
- Cuetip founder Keith Domingo argues that clearer visibility into costs can help cannabis operators assess profitability while they still have time to adjust.
- He sees usage-based AI expenses as part of a tool’s business case, alongside the work it helps a team accomplish.
- Domingo identifies tax rules, tracking requirements, and access to capital as areas where he believes policy changes could improve operating conditions.
In This Article
The prospect of growth in cannabis sits alongside demanding regulations, rising operating costs, and an expanding range of artificial intelligence tools. For cannabis entrepreneur Keith Domingo, navigating those pressures requires a clearer understanding of the numbers behind an operation and the consequences of its business decisions.
After a career in technology that included Oracle and Activision, Domingo founded Cuetip, a software platform designed to help cannabis operators understand costs and assess profitability. His approach places operating data at the center of decisions about how a business spends, prices, and plans.
Before we recorded our conversation, Domingo and I spent time on a rooftop overlooking the Pacific in Santa Monica, moving between California’s cannabis culture and its business future. His cultivar of choice is Tropicana Cookies, although our discussion soon turned to science, economics, and policy. We later spoke over Zoom about AI expenses, the regulations he believes deserve another look, and the value of knowing an operation’s numbers.
This interview has been edited for clarity and length.
Regulation and Cash Flow
Cannabis & Tech Today: Which regulations create the most friction in cannabis today?
Keith Domingo: 280E is one of the top creators of friction within the industry. It’s just sucking cash flow from operators that should be in their pockets. Tracking requirements are another major issue because they are onerous to operators and waste their time. I think some of these regulations came to bear due to an overabundance of caution because everyone wanted to get it right. But then it started ballooning into all these additional regulations. How can the government be taken seriously or trusted when they overregulate in this manner? They know it’s a problem but seem really attached to the status quo.
Banking regulations are another major issue because, unlike other industries, they choke off the needed capital to operators and make capital more expensive than in other new industries. These issues have to be addressed in order for cannabis to unlock its true profitability.
AI Costs and Practical Uses
C&T Today: Everyone is talking about what AI can do. Far fewer people are talking about what AI costs. What are people missing about the economics of AI?
Domingo: Imagine if, to search on Google, you had to pay $5 a search. Companies have already been getting burnt by this [tokenization model], and AI costs have skyrocketed.
C&T Today: What is a problem in cannabis that AI is well-suited to solve, and what still requires people?
Domingo: AI is good if it solves a fundamental problem. It’s good for developing, it’s good for something that’s algorithmic and rule based, like accounting or “how to build a business plan.” But when there’s more complexity, that’s where AI kind of breaks down. If you have an experienced developer, AI will make that developer more efficient. At Cuetip we only use AI if it helps the customer or the team.
“If you have an experienced developer, AI will make that developer more efficient.”
Keith Domingo, founder of Cuetip
Data Behind Business Decisions
C&T Today: Without giving away the secret sauce, what problem is Cuetip solving in cannabis?
Domingo: Our main mission is to save operators from making bad cannabis decisions and increase their profitability. Our first app provides visibility into the cost of cannabis. Our second app manages your profitability when you still have time to make changes to your business, instead of waiting for your accountant to tell you that you are unprofitable. Both of these apps will help guide you to make better business decisions and lock in profitability.
C&T Today: Five years from now, what do you hope people say Cuetip has changed in the cannabis industry?
Domingo: I’m hoping they will say Cuetip helped transform the industry and helped the operators increase profits and growth. Some cannabis operators already know how to run a successful business, but many still would benefit from guidance. I see most of the unnecessary regulations going away, unlocking more cash flow for operators.
I see a lot of exporting taking place. There’s going to be several successful cannabis companies on the stock market. Finally, cannabis will be fully destigmatized in the U.S. and parts of the EU. I’m excited!
Frequently Asked Questions
Who is Keith Domingo?
Keith Domingo is the founder of Cuetip, a software platform for cannabis operators. His technology career included work at Oracle and Activision.
What does Cuetip aim to help operators understand?
Domingo describes applications focused on visibility into cannabis costs and profitability, with the aim of helping operators make decisions while they still have time to adjust the business.
Why does Domingo emphasize AI expenses?
He argues that usage-based charges can change the economics of a workflow and should be considered alongside the benefit a tool provides to the customer or team.
Which AI applications does Domingo consider useful?
He points to development and work governed by algorithms or rules, while emphasizing the contribution of experienced people when a task becomes more complex.
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Featured image: business analytics stock photograph by Antoni Shkraba / Pexels.