Sponsored by JP Morgan Chase
By Phillip Washington Jr.
Artificial intelligence will be one of the biggest economic disruptors over the next decade.
There are always two sides to disruption: Participants in the new world being built and Resistors that lack understanding of what’s happening so they cling to the old world out of fear.
The Participators position themselves to allow massive amounts of wealth to flow their way. Resistors have the wealth they have destroyed because their fear holds their time and assets in the world that’s being destroyed.
There’s no way to explain how artificial intelligence works and the full impact it will have in one article, but here are the basics from my point of view.
How the Mind works
In order to better understand how artificial intelligence works, it would be helpful to know how the Mind works. That’s what developers are using as the template for this innovation.
Our Perspective (the Mind’s eye) influences how we feel, how we feel gives birth to our beliefs, and our beliefs are the operating system of the Mind.
Our Perspective is formed by the information we feed our Mind. The information of the Mind are thoughts and by giving attention to a thought, we feed that thought to our Mind.
The quantity and quality of our thoughts is what we call our intelligence. As we raise the quantity and quality of thoughts we feed our Mind, we raise our level of intelligence.
This is the exact same process programmers use to improve the intelligence of artificial intelligence over time.
A non technical way to understand an algorithm is to call it a belief system (the heart) of a software operating system.
The conscious thoughts (information) programmers feed to an algorithm allows it to change its belief system through a process that mimics how we learn over time. This is an oversimplification, but the higher the quantity and quality of the information an algorithm is fed, the smarter it gets.
The role of artificial intelligence in the economy
The role of artificial intelligence (AI) in the economy over the next decade is one of the most talked-about topics today. As technology advances, so too does the integration of AI into the economic landscape. From automation to predictive analytics, AI has already changed the way businesses and individuals interact with the economy. But what changes can we expect to see over the next decade?
First and foremost, there will be an increased use of AI in various industries across the field of economics. Automation is one of the most visible examples of this: with the advent of robotics and other AI enabled devices, companies will be able to perform physical tasks with greater speed and efficiency than ever before. This means that tasks usually performed by people, such as factory work or data entry, could potentially be completed by robots much faster. AI can also analyze data faster and more accurately than humans, allowing for more precise analysis and results.
Another major benefit of AI’s integration into the economy will be the increased use of predictive analytics for a wide range of purposes. Predictive analytics uses algorithms to assess past, present, and future market trends to determine potential outcomes. This could be used to help companies make more informed decisions about marketing strategies, product development, and financial planning. In addition, it could be used to reveal potential opportunities for businesses to credit score customers faster, identify new markets, and even detect possible fraud or money laundering.
History shows that new technology destroys old low desired jobs and creates a lot more new and exciting jobs. For example, AI-driven software and hardware could enable the creation of autonomous vehicles, robots, and other devices that could be used to carry out complex tasks with minimal human involvement. This could lead to the emergence of new specialized services and products, and even new markets.
AI will touch the government as well. Governments and organizations around the world are rapidly investing in AI research and development to prepare themselves for a new digital future. AI can provide insights and analysis to inform policy makers on how best to respond to social and economic issues. With AI-based tools, governments may be able to better understand the needs of citizens and more effectively provide services and aid in times of crisis.
Fear of technology
During the rise of the industrial revolution, people became wary of machines taking over and replacing human labor. They also feared losing control due to machines’ ability to process information more quickly and accurately than humans. Additionally, there were worries about machines becoming so advanced that they could outsmart humans and create self-awareness.
We have the benefit of hindsight and can see the better quality of life we live today as the machines we built during the industrial revolution got smarter and smarter and smarter. However, there was a ton of fear in the beginning and at each stage of change.
Plus, machines and AI do not have emotions. Emotions are the guidance system for human beings to allow us to know if our Perspective is positive or negative. Positive perspectives are additive for mankind and negative perspectives subtracts from mankind.
Businesses want to make money over time, so their desire is to add to mankind over time. Humans will always be necessary in an economy because we are the emotionally intelligent guides for the machines.
Companies leading the AI revolution:
Currently, some of the world’s biggest companies are leading the AI revolution. These include Google, Microsoft, Amazon, Facebook, Apple, Tesla, Open AI, and IBM.
Google has been at the forefront of the AI market for many years now, having established its deep learning-based AI platform, TensorFlow.
Microsoft has also invested heavily in AI, releasing its Azure cloud platform as a powerful tool for developers and researchers.
Amazon has been an early adopter of AI technology, creating products such as its Alexa voice assistant and expanding its cloud services with AI capabilities.
Facebook has developed its own AI research division, while Apple has acquired several AI startups to bolster its capabilities.
The “magic” behind the experience of driving a Tesla is the AI. It’s continuously getting fed data from all the Teslas on the road. Each piece of data improves the driving and riding experience inch by inch.
Open AI is the company behind the latest ChatGPT conversation saturating the internet this year.
IBM is investing heavily in AI research and development, having created its own AI platform, Watson.
How to financially benefit from AI
The opportunities are endless, but here are a couple of obvious ideas.
Invest in the companies leading the way. There are tons more than I listed above.
Use artificial intelligence to make yourself (and your team if you’re a business owner) “super human”. AI-driven software can help you save time and money and you can apply those savings to more productive and profitable uses which go directly to the bottom line of your balance sheet.
The revolution is here. There is no being neutral. We all have to pick a side, but the cool thing is there is plenty of room on the winning side for everyone. Do we accept and embrace change or do we stay stuck in the past and hope for the days when the world was “great”?
We all have the free-will to decide for ourselves.
Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Sponsored by JP Morgan Chase