By now, you’ve heard of ChatGPT or at the very least, you’ve heard of the latest investment craze hitting Wall Street: AI (Artificial Intelligence). Most people are dismissing it as just another bubble that will soon pop and take with it the hearts of speculators caught up in quick riches. While this may be true in certain respect, I’ve been in this game long enough to know how this will play out. Before you go on passing this off, I wanted you to understand this incredible technological advancement that is not only here to stay but will transform the way we conduct our lives day in and day out.
Sure, at this moment, ChatGPT is a novelty item something like “E-mail” or AOL was when it was first launched. It was laughed off by many as something fun and interesting but hardly something that would transform businesses. Before you fall into this trap, I want to give you some homework this fine holiday weekend. I want you to go into any browser, whether it be your computer or phone, and type in Chat.openai.com Go ahead, indulge me. I’ll wait. No, I’m serious; please do this. It will soon change your outlook on the future of technology.
Signing up is free and takes only a few seconds. Once you’re in, however, I want you to explore what this technology can do. Simply type in anything you want to have written in the “Send Message” box at the bottom. Or maybe something you want to know more about. How about we get crazy and ask ChatGPT to write a five-paragraph letter to clients regarding the ridiculousness of Congress continuing to argue about whether or not to raise the debt ceiling? (ChatGPT output below)
What’s happening now is that we’ve opened Pandora’s box when it comes to computers actually thinking and acting on our behalf. Is it creepy? Yes. Scary? Maybe. However, understand that this is far from a simple novelty that will die off as some suspect. Oh no, this technology is feverishly being implemented across all sorts of business landscapes far and wide. How about being able to interact with an AI-driven customer service rep that can actually recite helpful answers, rather than standard nonsense taken from a help manual? These AI bots won’t need breaks, benefits, or time off, and sadly, this one AI bot will replace countless employees. Have a timely e-mail or letter due? AI to the rescue. Want a 10-slide presentation on the benefits of self-driving cars and EV automobiles? Voilà.
Whether it’s personal assistance, data entry, data aggregation, problem-solving, customer service, or a host of other tasks, within a matter of months and certainly a few years, AI will do the job and most likely do it with less human error than we’re naturally accustomed to.
Why on earth is the market not falling apart amidst our US debt debacle, recessionary fears, interest rate hikes, and inflationary woes? I’ll tell you exactly why. Companies are cutting staff, implementing technology, utilizing new AI, and profits are not falling off a cliff as many have expected. Once again, our ingenuity looks to be saving the day.
Make no mistake. I am not writing about the future perils that this same technology will create. When the internet first hit the scene, we experienced the spectacular run-up into the dot-com crash. Those were fun times in the late ’90s, and I suspect we’re going to be hearing about the latest AI company going public and the spectacular gains to be had. More than likely, this bubble does pop eventually; however, the technology will not go away. Similar to the internet, it will transition from fun novelty to practical application. As with the internet’s development post dot-com crash, jobs will change, and employment needs will evolve. Folks predicted the demise of employment at that time and were spectacularly wrong. I suspect many will predict the same now. It will certainly be easier to understand why this may happen, but I am not going to say this is the end of the lower-end employee as we know it just yet. With new wealth creation comes new opportunities, and new opportunities always create new jobs.
While Congress may certainly bring us to the brink of financial fallout yet again, corporate America is beginning to have a field day with this new technology that is quickly gaining steam and will be dinner talk, if not already, around every table in the very near future.
Near the end of 2022, markets seemed to have found a bottom and made a turn higher. Technology stocks have led, and other than undervaluation, not a single soul knew just why that was happening. In hindsight, it is all now so clear, and once again, the market knew what was coming while so many others were wrapped up in the negative headlines of the day. I’ve been in this game for a very long time, and there is one thing that always amazes me and yet never changes. When something good comes along, folks are convinced it will not last, yet when something bad comes along, they’re certain it will never end. It’s a terrible investment strategy.
Have a wonderful Memorial Day weekend!
Letter to Clients Courtesy of ChatGPT (Side Note, AI wasn’t too far off)
Dear [Client’s Name],
I hope this letter finds you in good health and high spirits. I am writing to you today with a sense of frustration and disbelief, regarding the ongoing debates in Congress concerning the decision to raise the debt ceiling. As a valued client and partner, I feel compelled to share my thoughts on the matter.
It is nothing short of ridiculous that our elected officials continue to engage in partisan arguments instead of taking swift and decisive action. The debt ceiling is a critical issue that directly affects the stability and prosperity of our nation’s economy. It is disheartening to witness the disregard for the potential consequences of delaying or refusing to raise the debt ceiling.
The uncertainty surrounding this matter creates unnecessary anxiety and volatility in financial markets, which can have a profound impact on businesses like ours. It hampers our ability to plan for the future, make sound investment decisions, and maintain a stable economic environment for our clients and stakeholders.
The debt ceiling has been raised countless times in the past, irrespective of which political party holds power. It is an essential measure that allows the government to fulfill its obligations and responsibilities. To allow political squabbles to jeopardize the financial well-being of our nation is not only irresponsible but also undermines the trust and confidence of businesses and individuals alike.
We urge our representatives in Congress to rise above party lines and prioritize the greater good of the nation. The consequences of failing to raise the debt ceiling would be dire, leading to potential defaults, credit rating downgrades, increased borrowing costs, and an overall negative impact on the economy.
As your trusted partners, we will closely monitor the situation and keep you informed of any developments that may affect our business operations. We remain committed to safeguarding your interests and mitigating any potential risks that may arise due to the political impasse.
In closing, I would like to express my sincere hope that our elected officials will recognize the urgency of the situation and swiftly come to a resolution. We believe in the resilience and strength of our economy, but it is imperative that Congress acts responsibly to ensure its stability and growth.
Thank you for your continued trust and support. We value our partnership and remain at your disposal should you have any questions or concerns.