Hello, and welcome back to The Breakdown.

If you saw last weeks write up (which you should go read if you haven't already), then you know that today, I am going to be breaking down my thoughts on AI, and specifically how it affects business owners now, and in the future.

More of a personal write up, and I know some people might not care about my thoughts, but, this is my newsletter. So I do what I want.

Without further ado, lets dive in.

My thoughts on AI in business

Before we get started, let's revisit the points that ChatGPT brought up itself to be aware of.

Short term benefits:

1. Improved customer service.

2. Enhanced productivity

3. Better decision-making

4. Competitive advantage

Long term benefits:

1. Increased efficiency

2. Greater personalization

3. Improved risk management

4. Business model innovation

Potential threats:

1. Job displacement

2. Bias and discrimination

3. Cybersecurity risks

4. Lack of transparency and accountability

Overall, I thought they were great points and very thought provoking, but very general too.

So, let's breakdown my thoughts using these as things to jump off of.

1. Well, if you had a keen eye, you noticed in my prompt I put into ChatGPT I asked for a 1500 word post. Well, it came very much short of that, it was more around half of that. So my first overall thought dealing with AI, is there is still a lot of basic areas it comes short.

2. Second overall thought, is it is going to be the great polarizer in tasks. It is going to make specialists in something much better by them being able to use AI as a resource to increase productivity. It will also wipe away a lot of easier tasks, and make what were previously medium hard tasks and easy tasks, a lot easier. But, there will still be a place at the top for personal touch.

For example, take this company, Uizard. What Uizard allows you to do is take an existing app, website, page, etc, upload it to Uizard, and it will automatically create that exact page into an editable design for you. So, AI did not take away the designers job who made this website, which is the hardest part. That designer could have used AI to generate a first draft for inspiration though, and then built off of that.

And now, for someone who is inspired by this design but doesn't have the technical skills to recreate (code knowledge, design, etc) this exactly (recreate = a medium/easy task), it just became a whole lot easier.

3. I think AI will also be the polarizer in that there will be a segment of people who love not having to deal with actual people to get work and mediocre tasks done, but will also increase the value of personalized work. I mentioned this last week, but you could easily just have ChatGPT write up a newsletter every week, and that would work. But, it will bring much more value to that personalized touch and creators who put in the work to make their own content, if everyone begins using ChatGPT to write their newsletters. I think it would make many things become much more mundane if everyone does that, and people would crave the personalized content.

4. It definitely can be a great supporter in everyday tasks. My day job is in accounting and tax. I get a lot of the same questions, and I send out a lot of the same answers everyday through my email to people. If I had an AI support that took note of my responses to questions, and eventually was able to craft responses as if it was me responding, that would save hours each day. It would save my entire company tens of hours a day, and time is money. Thats many more hours a day to be on the phone selling services, bringing in more money.

5. I don't see how in the long term many industries don't have AI knowledge centers that professionals can go to for questions when they are based on rules and things to follow. For example, AI has been trained on the web, and part of that is tax law. If there was a database specifically for tax that I could go to for and ask questions about tax and get responses that abide by the tax law, rather than having to Google search it and read articles for hours to determine an answer.

This can be applied to law, engineering, tax, insurance, and many other areas.

6. I think we are still a long ways from job displacement. And, I think even when it displaces jobs, it will create new jobs for people in different ways.

And, the most impactful jobs that it does replaces are data driven job that also create a race to the bottom in terms of cost. The prime example is something like a public fund manager. AI will be able to analyze hundreds of years of performance, trends, stocks, companies, etc at some point. And it will know that data better than people. I think we'll easily see an AI managed ETF, mutual fund, index fund type thing where the AI automatically rebalances and optimizes the fund, while lowering the fees you are currently charged on those types of funds since there is no longer a person doing the work.

That means now, you could still average that 7% return with your fund, but instead of a .5% - 1% expense ratio, it could be .01%, or even zero. And that is more of your money to compound and grow then.

I think there a lot more personal impacts too beyond business that will affect daily life, but we'll avoid those for now. I hope you enjoyed my thoughts, and I would love to hear yours. At the end of the day, my general recommendation to everyone is to just be involved, and see what's going on. Experience it. See the capabilities. It will pay off in the long run.

Lastly, before we wrap, wanted to thank everyone for their patience as I still find my way in how I'm writing. And, being that I'm in a tax business, I haven't been able to put as much time towards this as I would have liked. But, that all ends on the 18th!

So, next week I'm hoping to get back to a banger. To a company you probably all know of but you probably don't think of it as a company, even though it is worth probably around a billion dollars, or at least will be.

You may know them for their charm. You know them for their relatability. You know them for their demo days. Cookbooks. Furniture... I'm giving away too much...

And that's all for today, if you want to get more follow me on Twitter @Cam_LaChance, where I interact with people and share more thoughts similar to what I write about here.

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💯 Freaking sick dude🤷‍♂️ Meh, do better next time😑 Bruh, I might unsubscribe after reading that