ARTIFICIAL INTELLIGENCE (AI) IS SENDING AN INFORMATION TSUNAMI OVER US!
Despite any misgivings we might have about AI, Pandora is out of the box and growing at an exponential rate. The adoption of AI in almost every human endeavor is on its way. As humans, we generally fight change because change is hard. None of us really like having to adapt and learn, and yes, I will admit it, oldness seems to make change less palatable. Time to wake up, the AI tsunami is here.
Artificial General Intelligence (AGI) is where AI technology ultimately is headed. This type of AI is designed to think and act. It can learn, reason, and make decisions with many different contexts. OK, well we can all breathe a sigh of relief. AGI is not here and maybe decades in the making. My guess sooner than later exponential growth does not take long to cover everything.
Limited memory is the most common type of AI used today. Limited memory uses historical data to make predictions and classification tasks. Think about Chat GPT.
Theory of mind AI understands the needs emotions and thought processes of the entities it interacts with. Chat Bots are scary, and criminals are all over this tech.
Self-Aware AI would have its own conscious emotions and self-awareness. This could lead to its own desire and beliefs. This is a theoretical concept for now.
Reasoning AI would solve problems at a human level.
Clearly, we are way beyond the parlor trick stage of AI. It is real and will only invade our everyday lives more and more. Every facet of our economic wellbeing will be invaded with AI. There is a real reason that China and the U.S. are duking it out and pouring billions into efforts to get ahead on AI.
Just last month an open-source AI tech called Deep Seek rolled out onto the world stage. It is an open-source AI tech developed in China that much more efficiently (needs much less computer power) gets AI results. The good part is its open source, which puts developers on an even playing field. The prospect of less computers sent Nvidia’s value down over 1 trillion dollars in one day. This really should not be a surprise. Programmers have forever strived to write an economic code, this is a much more advanced example. As usual, the consensus is that the Chinese stole a lot of Chat GPT code and cobbled together some ideas of their own to create this efficient AI. The U.S. tried to ban China from getting the Nvidia chips needed for their endeavor. They figured out a way to get them, at least enough to get this tech started. Heck, most of China’s brightest programmers were trained here, then headed home.
It is a big world out there, and any attempt to limit information is futile. We will have to win this fight the old fashioned way: with hard work and money. We must win or at least keep up. At the risk of sounding alarmist, our economic future depends on our ability to harness AI and its inevitable ability to make us more efficient at almost everything. Will it happen overnight, no. Will it happen faster than we think, yes.
One great example of how AI can and will change our lives is Self-Driving. Imagine a world where a blind or wheelchair bound person can get a ride on demand to the doctor’s or grocery. It is already happening, and this year may be the inflection point.
Google with its Waymo transport service in San Francisco, Los Angeles, and Phoenix will expand to Miami and Atlanta. Their tech relies on precise mapping and will operate within the geo fence the mapping provides. Their tech is also expensive. The latest version vans are estimated at over $100,000 each and that does not include the tech required in the back office to keep it going.
Tesla has stated that they will roll out their Robo Taxi in California and Texas before the end of this year. Their tech is not as expensive and does not depend on mapping, which means it will drive you anywhere. This is truly an AI miracle when it gets to the real world. The ultimate goal for all this is a future where it may be unlawful to drive yourself since the tech will be 10 times safer than we are on our own. As of now Tesla’s driving with FSD (full self-driving where drivers must still pay attention) have .31 accidents per 1 million miles of driving vs. humans 1.53 accidents per 1 million miles.Unless inflation really becomes a problem, I look for a good year for stock investors.
2025 MARKET RESULTS
|
S&P 500 |
1.2% |
|
NASDAQ Composite |
2.4% |
|
Dow |
3.0% |
|
Russell 2000 |
3.0% |
|
Dow GIobal |
2.0% |
3/4/25