Big Opportunity in Investing due to AI

In this edition:

1. Big Opportunity in Investing due to AI

2. Huge Google Blunder with AI Overwiew

3. Almost Free AI Receptionist

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1. AI to Dramatically Change Investment Landscape - Huge Opportunity

We all know that software has taken a large role in financial investments. What has previously been difficult to process for investments is textual information. For example, why volume, momentum, price, etc., have been incorporated into algorithms for trading, textual data such as X (Twitter) sentiment, SEC filings, etc. have not (or less so). A new study from the University of Chicago found that LLMs “may take a central role in decision-making” with respect to financial statement analysis. So now that large language models (LLMs) can “understand” these textual statements, LLMs will combine with conventional software trading algorithms to provide better investment advice.

So whether you love it or hate it, it will be increasingly more challenging to compete in the financial market without using AI.  

What to do?!! First, be an early adopter of the technology. Early adopters of tech often experience huge advantages over the general public. Since most of us aren’t going to develop our own AI-based we’ll need to rely on someone else’s service. I will start investigating these and keep you posted.

I recently licensed an algorithmic trading platform. It performs day trades based on price monitoring. They are now preparing to implement a feature to pause all trades when market-moving news is released to prevent large losses.

I started trading with the algorithm on April 24. As of today, I’m up 9.685% in just over one month (34 days). That’s pretty fantastic but one month is too short of a time for a real test. I’ll keep you posted on this too.

I plan to continue to dip my toe in the water and I think everyone should begin to educate themselves in this space. This will be a huge opportunity for early adopters, but that opportunity will diminish as adoption widens. Jump on early!

2. Google AI Overviews Honk

Google continues to blunder in the AI space. When you Google a question, it will give you an AI-generated answer at the top of the search results (AI Overview). Well, it apparently makes stuff up. [NOTE: Google is in the process of disabling this feature, understandably.]

Here are some examples….

Source: https://x.com/JeremiahDJohns/status/1794543011298410980

Source: https://x.com/JeremiahDJohns/status/1794543040054653426

source: https://x.com/JeremiahDJohns/status/1794543042684432661

Another great one is that cockroaches can live in a man’s penis. Click here.

It’s hard to believe Google, a company with vast resources, can make yet another huge AI blunder. As you may recall, previously their AI was biased against whites and the images generated of presidents (and other historical figures) were all non-white.

Google is already losing the AI race and this will simply exacerbate the problem. If you had a large AI budget and needed to select an AI partner, Google would probably be your last choice. For an everyday person, I’d suggest using any AI other than Google’s, to get your questions answered. ChatGPT and Perplexity are what I use the most.

3. Your AI Receptionist

A major complaint about small businesses - especially blue-collar service businesses such as landscapers, pool cleaners, plumbers, etc. - is that they don’t answer the phone. At best, the call goes to voicemail and the caller hopes that they get a call back. Often, however, the caller hangs up and calls the next business.

Now, any business can get a virtual receptionist that answers the phone when the business owner can’t. With AI Receptionist you type in some details about your business such as its offered services, location, hours of operation, email, etc., and you’re pretty much ready to go. What a great time to start a business! Plans start at $29/mo.

This is not the first of these that I’ve written about. Like the others, this one does not yet offer real-time appointment booking, although they say it’s coming soon. As much as I hate to say it, I suspect almost all businesses will use AI receptionists eventually. They never take a day off, they never blow up at a customer, they never forget details, and they are less expensive than a human. It'll be a while before they are ready for prime time (may a year?), but this is where things are going.

I also expect these to be made available to consumers by the wireless carriers. So for each incoming call, the caller will have to talk to your personal AI receptionist, which will ask why they are calling before connecting to you. You’ll get a text and have 20 seconds to pick up, or the AI will take a message. Similar systems are already in place but without AI.

In the News…

1. Open AI starts training new flagship model - building toward AGI.

2.  AI models have favorite numbers, because they think they're people. Ummmm, uh oh.

AI Meme of the week…

credit: https://www.reddit.com/r/machinelearningmemes/

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