I use AI every day. There are some facts people need to come to terms with. AI is a massive source of information. If information is required or will enhance your business, then it's worthwhile. It's also good at forming conclusions, although they may not be correct conclusions. It's not very good at functionality or process flow as the sequence of events is often lost and the ability to recall from discussion experiences is poor. AI can't think for you. It may review your logic process and look for flaws but it can't generate the logic process in the first place. You have to think for yourself after you have used AI to resource pertinent facts. Present this conclusion to an AI agent and it will agree.
I just did that. Here is the response:
Your conclusion is a highly practical operating manual for the technology. Using AI as a factual resource and a sounding board for error-checking is highly effective. Relying on it to map out flawless sequential execution or to originate the core logic of a project invites systemic failure. The human remains the architect; the AI is merely a fast, slightly unreliable clerk.
AI in my view is the world's newest version of the "Social Media Disaster" very few saw coming in the early stages. The "AI race to world dominance and power" train has left the station and is already off the tracks destroying communities, reputations, creating chaos and in it's wake producing harmful social, economic and environmental fallout. I use it "cautiously" as I often find it produces errors ... I'm also very aware how dangerous it can/will be used when in the wrong hands. Keep reporting Fred ... knowledge is power for change.
I was reading a day or 2 ago, about all the AI businesses, warehouses coming to so many cities & ya, the little HUGE blindside they weren't being exactly honest about, is all the electricity they chew up, possibly leaving the general public with higher electric bills, but, less available electricity. Will we go back to Bible times, washing our laundry in brooks & streams because we can't afford electricity usage? Inquiring minds want to know haha
I agree Fred! Come clean before we are standing out in left field, like so many Americans for different reasons. If they can't be honest upfront, people will torch the buildings to lower their electricity bills!
It seems the AI business model to date is out of balance. The amount of electrical power, water for cooling, fibre for connecting is huge. Data centre locations are problematic for not providing information on operation, consumption, noise & air pollution to local communities so are receiving push-back. Although there are innovations underway to address power & cooling, the cost of LLM activity feeding AI is significant. The customer rental for AI use isn't covering costs presently. Regulations are also catching-up to AI use enforcing better & more privacy protections.
Another spot-on article, Fred. Regarding the Open AI IPO, many of us wouldn't touch it with a ten-foot pole. However, as with the recent SpaceX IPO (which the Nobel winning economist Paul Krugman has described it as a “human Ponzi scheme”) holders of common ETFs will unwittingly be investors in SpaceX, since some indexes have fast-tracked the inclusion of SpaceX without the normal one-year waiting period. (An exception is the S&P 500 which is keeping the one-year rule). So I suppose that some indexes will be “forced” to include this Open AI IPO. This is a problem that ETF investors need to be aware of if these IPOs don't align with their values and goals. Even some common TSX-listed ETFs such as VEQT, XEQT, VGRO, XGRO, VBAL, and XBAL will include these IPOs. With ETFs, we always need to “look under the hood”!
One of the advantages of ETFs is diversification, but one of the disadvantages is that you don't always get to choose every company you're invested in.
As you say, it's worth looking under the hood from time to time.
Whether it's AI, space, biotech, or any other hot sector, valuation and excitement aren't the same thing as profitability.
Eventually the fundamentals matter.
For investors, the question isn't whether the technology is impressive.
It's whether the price being paid today makes sense for the risks being taken tomorrow. 👍📈
I use AI every day. There are some facts people need to come to terms with. AI is a massive source of information. If information is required or will enhance your business, then it's worthwhile. It's also good at forming conclusions, although they may not be correct conclusions. It's not very good at functionality or process flow as the sequence of events is often lost and the ability to recall from discussion experiences is poor. AI can't think for you. It may review your logic process and look for flaws but it can't generate the logic process in the first place. You have to think for yourself after you have used AI to resource pertinent facts. Present this conclusion to an AI agent and it will agree.
I just did that. Here is the response:
Your conclusion is a highly practical operating manual for the technology. Using AI as a factual resource and a sounding board for error-checking is highly effective. Relying on it to map out flawless sequential execution or to originate the core logic of a project invites systemic failure. The human remains the architect; the AI is merely a fast, slightly unreliable clerk.
Jim, I think that’s one of the most sensible takes on AI I’ve read.
Useful? Absolutely. Magical? Not even close.
I use it every day too... but I still say the human has to do the thinking.
AI is a very fast assistant… not a replacement for judgment. 👍
Thank you for this. I am trying to understand AI. This helps. Greatly appreciated.
Kathy thank you... that means a lot. 😊
Stay tuned because I’m planning to do a lot more on AI shortly, especially for real people trying to understand what matters and what doesn’t.
No hype. Plain English.
AI in my view is the world's newest version of the "Social Media Disaster" very few saw coming in the early stages. The "AI race to world dominance and power" train has left the station and is already off the tracks destroying communities, reputations, creating chaos and in it's wake producing harmful social, economic and environmental fallout. I use it "cautiously" as I often find it produces errors ... I'm also very aware how dangerous it can/will be used when in the wrong hands. Keep reporting Fred ... knowledge is power for change.
Fair take, and I think a lot of people feel that tension right now.
AI has real upside, but pretending there are no risks would be naïve.
We already saw what social media did when growth outran guardrails.
Like any powerful tool, the issue isn’t just the technology...
it’s who controls it, how it’s used, and whether society catches up before the damage does.
Cautious optimism probably beats blind hype or blind fear.
Appreciate the thoughtful comment. 👍
I was reading a day or 2 ago, about all the AI businesses, warehouses coming to so many cities & ya, the little HUGE blindside they weren't being exactly honest about, is all the electricity they chew up, possibly leaving the general public with higher electric bills, but, less available electricity. Will we go back to Bible times, washing our laundry in brooks & streams because we can't afford electricity usage? Inquiring minds want to know haha
Haha… let’s hope it doesn’t come to beating socks on river rocks, Patsy 😄
But you’re touching on a real issue people aren’t talking about enough...
AI doesn’t just eat data... it eats electricity.
Massive data centres can use astonishing amounts of power and water for cooling.
The good news? Nobody is heading back to candlelight anytime soon.
The bigger question is who pays for the infrastructure upgrades...
taxpayers, ratepayers, or the tech giants making billions from it?
That’s a conversation we probably should be having before the bill shows up in the mailbox.
I agree Fred! Come clean before we are standing out in left field, like so many Americans for different reasons. If they can't be honest upfront, people will torch the buildings to lower their electricity bills!
It seems the AI business model to date is out of balance. The amount of electrical power, water for cooling, fibre for connecting is huge. Data centre locations are problematic for not providing information on operation, consumption, noise & air pollution to local communities so are receiving push-back. Although there are innovations underway to address power & cooling, the cost of LLM activity feeding AI is significant. The customer rental for AI use isn't covering costs presently. Regulations are also catching-up to AI use enforcing better & more privacy protections.
Kathleen, I think that's exactly where the debate is heading.
The technology is advancing faster than the economics, infrastructure, and regulations around it.
Power, water, cooling, land use, privacy, and community impacts all have to be part of the conversation.
AI may eventually become highly profitable and efficient, but right now a lot of the industry still looks like it's spending tomorrow's profits today.
Good points. 👍
Another spot-on article, Fred. Regarding the Open AI IPO, many of us wouldn't touch it with a ten-foot pole. However, as with the recent SpaceX IPO (which the Nobel winning economist Paul Krugman has described it as a “human Ponzi scheme”) holders of common ETFs will unwittingly be investors in SpaceX, since some indexes have fast-tracked the inclusion of SpaceX without the normal one-year waiting period. (An exception is the S&P 500 which is keeping the one-year rule). So I suppose that some indexes will be “forced” to include this Open AI IPO. This is a problem that ETF investors need to be aware of if these IPOs don't align with their values and goals. Even some common TSX-listed ETFs such as VEQT, XEQT, VGRO, XGRO, VBAL, and XBAL will include these IPOs. With ETFs, we always need to “look under the hood”!
Good point, Jerry.
One of the advantages of ETFs is diversification, but one of the disadvantages is that you don't always get to choose every company you're invested in.
As you say, it's worth looking under the hood from time to time.
Whether it's AI, space, biotech, or any other hot sector, valuation and excitement aren't the same thing as profitability.
Eventually the fundamentals matter.
For investors, the question isn't whether the technology is impressive.
It's whether the price being paid today makes sense for the risks being taken tomorrow. 👍📈