Capitalogix

How To Thrive After the A.I. Revolution

The world is poised on the cusp of an economic and cultural shift as dramatic as that of the Industrial Revolution. - Steven Levy

Artificial Intelligence is one of my favorite things to talk about ... It makes so much possible! 

In a previous article I mentioned that forecasts expect AI to impact or eliminate up to 50% of current jobs.  Nevertheless, I think that is the start of the story.  The ultimate impact will be bigger and more positive than most people expect.

Personally, I believe that freeing us to do more has always been a boon to society. Electricity put a lot of people out of work as well ...  but, look what it made possible.

We'd be naive to think A.I. isn't going to influence the job market, but that doesn't mean you can't navigate that shift. 

 

A Look At Industrial Revolutions

 

The Industrial Revolution has two phases: one material, the other social; one concerning the making of things, the other concerning the making of men. -Charles A. Beard

There are several turning points in our history where the world changed forever. Former paradigms and realities became relics of a bygone era. 

Today, we're at another turning point.

Tomorrow's workforce will require different skills, and face different challenges than we do today. You can consider this a Fourth Industrial Revolution. Compare today's changes to our previous industrial revolutions. 

• First industrial revolution - Discovery of the steam engine and creation of factories
• Second industrial revolution - Introduction of the assembly line and mass production
• Third industrial revolution - The world wide web and computers connect the world together heralding the digital age. 

Each revolution shared multiple similarities. They were disruptive. They were centered on technological innovation. They created concatenating socio-cultural impact.

The fourth shares all the same hallmarks. We're harnessing new technologies like A.I., the IoT, renewable energy, and quantum computing. Automation is going to reach a new paradigm in this revolution, but there will also be an explosion of new fields, new markets, and new necessary skillsets - it's going to impact the world as holistically as electricity. 

 

How will humans create value in an increasingly automated world?

 

I believe that, if managed well, the Fourth Industrial Revolution can bring a new cultural renaissance, which will make us feel part of something much larger than ourselves: a true global civilization. I believe the changes that will sweep through society can provide a more inclusive, sustainable and harmonious society. But it will not come easily. - Klaus Schwab

Guthrie Jensen has 10 skills they believe will become more important in the new world,  five industries they think will grow the most, and another 10 jobs they think will be the most "in-demand". 

Check out the infographic below (click it to see the whole thing). 

 

via Guthrie Jensen

Robots can do many things, but they've yet to match the creativity and emotional insight of humanity. As automation spreads to more jobs, the need for management, creativity, and decision-making won't go anywhere ... they may be bolstered by data analytics, but they won't disappear. 

Our uniqueness and flexibility rightly protect our usefulness. AI and automation free us up to be our best selves and to explore new possibilities. 

These are exciting times!

Hope you’re having a relaxing Labor Day weekend

Jennifer and I are in Maine, where it’s getting a little chilly ... and the leaves are starting to turn autumn colors. Probably my favorite weather.

Hope you are having a nice Labor Day Weekend.  

Winter may not be coming ... but fall is near.

Here Are Some Links For Your Weekly Reading, September 2nd, 2018

 

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links  

• The US Military is Funding an AI That's Learning to Write Its Own Code. (311institute)
• A Record Number of Americans Support Legalizing Marijuana, New Survey Shows. (Fool)
• These 10 Questions are Used to Test the US Public's Knowledge of Science. How Many Can You Answer?(ScienceAlert)
• Jeff Bezos: We Must Go Back to the Moon, and this Time to Stay'. (Wall Street Journal)
• Scientists Reanimate Disembodied Pigs' Brains but for a Human Mind, It Could Be a Living Hell. (The Conversation)

 

Trading Links

• If You Invested $1,000 in Apple 10 Years Ago, Here's How Much You'd Have Now. (CNBC)
• The 15 Richest Families in America. (CNW)
• Jobless Rate Looks like Old Times, but the Economy Doesn't.(New York Times)
• Facebook is Reportedly Exploring the Creation of Its Own Cryptocurrency. (BusinessInsider)
• Ninety Years of Lessons Learned: T. Boone Pickens' Letter to the Class of 2018. (Forbes)

 

AI, Investing v. Trading, Algorithms, and more at Camp Kotok.

Last month, I attended Camp Kotok, a private gathering of economists, fund managers, and other financial industry professionals. 

The mood was cautiously optimistic to bullish about the markets - while the participants were feeling a bit uneasy due to changes in the financial industry due to advanced technologies. 

Cumberland Advisors just released a video of me talking with Bob Eisenbeis - their Vice Chairman & Chief Monetary Economist. 

Check it out. 

 

Cumberland Advisors via YouTube

AI is removing the fear, greed, and discretionary mistakes from financial decision making and its power is in removing the human fully from that process. 

We’re at the beginning of a cycle of progress that is hard to imagine ... and easy to underestimate.

Ultimately, I think AI will transform the planet much like electricity did.  

What about you?