Beware of AI
Financial advisors and their clients must stand guard at AI’s gate.
In a quote whose origin has been misattributed to Mark Twain and Benjamin Franklin, it was Christopher Bullock writing in 1716’s “The Cobbler of Preston” who first noted, “’Tis impossible to be sure of anything but death and taxes.”
Fast forward 307 years, and we are forced to include computer-generated misrepresentations. And this modern malady is legion, and insidious, in so many things we do.
There are artificial intelligence (AI)-generated term papers and AI-created photos and videos and everything in between -- and so many things we might not even be able to comprehend right now.
Left unchecked, all stand to render truth to the slaughterhouse waste pit and rewrite history to snooker the gullible, all the while creating nothing less than a parallel universe of “reality” that represents a manifest danger to civil society and the rule of law.
Financial services certainly are not immune from such manipulative and deleterious AI abuses.
As Ilgar Nagiyev, chairman of the board for Azer Maya, a leading producer of nutritional yeast in Azerbaijan, wrote just last week in a commentary for the Issues & Insights website:
“Taking artificial intelligence from a fantasy future to everyday use has the potential to benefit humanity exponentially. It could reduce costs, counter financial fraud and help businesses make better and more productive decisions. Some speculate that it could double the rate of global economic growth by 2035.”
“When used well, that is,” he cautions.
As Nagiyev reminds, and as the internet has taught us, “new technology is inevitably abused, sometimes even weaponized against us.”
Thus, we must stand guard at all times.
“We are going to be wrestling with the ethics and benefits of artificial intelligence for a long time to come. It’s only fitting that we consider the risks as well as the vast potential,” he says.
Indeed, and as Nagiyev notes, “AI is potentially an epoch-defining technology, with benefits that are financial, medical, educational; the list goes on and on… [But it] will require more than guidelines. It will require direction.”
And under whose direction will make all the difference in the world? Literally.
Will Congress regulate it without stifling innovation? If we regulate it, will we lose those innovators of AI to other countries?
As your advisor we will be vigilant in monitoring this development. We will need to facilitate how it may be used to benefit our society, ferret out how to invest in it, and use it in a decerning way to enhance our productivity.
Technology does not take jobs away, it has historically created more jobs as illustrated in John Steele Gordon’s book “An Empire of Wealth: The Epic History of American Economic Power.”
Gordon writes, “Throughout time, from ancient Rome to Modern Britain, the great empires built and maintained their domination through force of arms and political power. But not the United States. America has dominated the world in a new, peaceful, and pervasive way since the end of World War Two-through the continued creation of advanced technologies which in turn has created enormous wealth which is the true source of our nation’s global influence.” The freedom to create is a powerful thing!
The divisiveness in our country has been promoted and facilitated in a subversive way by our enemies who have grown tired of our global dominance. They seek to destroy America from within. AI is another tool they will deploy. I hope all of us stay committed to protecting our country and its freedoms that have created the greatest standard of living the world has ever seen.
Patrick R. Wallace
Commentary Disclosures: Covington Investment Advisors, Inc. prepared this material for informational purposes only and is not an offer or solicitation to buy or sell. The information provided is for general guidance and is not a personal recommendation for any particular investor or client and does not take into account the financial, investment or other objectives or needs of a particular investor or client. Clients and investors should consider other factors in making their investment decision while taking into account the current market environment.
Covington Investment Advisors, Inc. uses reasonable efforts to obtain information from sources which it believes to be reliable. Any comments and opinions made in this correspondence are subject to change without notice. Past performance is no indication of future results.
