Market Commentary

  • The Benner Cycle: How Not To Predict Markets

    When I first became interested in trading, I would often consult many traditional sources and old-school market wisdom.  I particularly liked the Stock Trader's Almanac. 

    While there is real wisdom in some of those sources, most might as well be horoscopes or Nostradamus-level predictions.  Throw enough darts, and one of them might hit the bullseye. 

    Still, it seems better than using astrology to trade. 

    Want something easy to predict?  Traders love patterns … from the simple head-and-shoulders to Fibonacci sequences and the Elliot Wave Theory.

    Here's an example from Samuel Benner, an Ohio farmer, in 1875.  That year, he released a book titled "Benners Prophecies: Future Ups and Downs in Prices," and in it, he shared a now relatively famous chart called the Benner Cycle.  Some claim that it's been accurately predicting the ups and downs of the market for over 100 years.  Let's check it out. 

     

     

    Here's what it does get right … markets go up, and then they go down … and that cycle continues.  Consequently, if you want to make money, you should buy low and sell high … It's hard to call that a competitive advantage.

    Mostly, you're looking at vague predictions with +/- 2-year error bars on a 10-year cycle. 

    However, it was close to the dot-com bust and the 2008 crash, so even if you sold a little early, you'd have been reasonably happy with your decision to follow the cycle.

    The truth is that we use cycle analysis in our live trading models.  However, it is a lot more rigorous and scientific than the Benner Cycle.  The trick is figuring out what to focus on—and what to ignore. 

    Just as humans are good at seeing patterns where there are none … they tend to see cycles that aren't anything but coincidences. 

    This is a reminder that just because an AI chat service recommends something, it doesn't make it a good recommendation.  Those models do some things well.  Making scientific or mathematically rigorous market predictions probably isn't the area to trust ChatGPT or one of its rivals … yet. 

    We're seeing bots improve at running businesses and writing code, but off-the-shelf tools like ChatGPT are still known for generating hallucinations and overconfidence. 

    Be careful out there.

  • Market Growth in the First Half of 2025.

    According to S&P Global, the U.S. market cap rose by 4.7% in the past 6th months. This represents a modest gain compared to the average market capitalization growth of 12.2% during the same period.

    Leaders in growth were South Korea, Spain, Germany, Italy, and Brazil.

     

    Voronoi21 via VisualCapitalist

    We have previously discussed this, but in addition to investments in technology and artificial intelligence, global capital is also being directed toward emerging markets, where many businesses are being established.

    At first glance, some may see U.S. underperformance, but it can also be read as a sign of relative maturity and stability. Another potential perspective is that U.S. companies have already experienced explosive growth in recent years, particularly in sectors such as tech and AI, suggesting the market may currently be in a phase of consolidation.

    While it's always great to see explosive growth, people undervalue resilience and steady growth, especially in light of the volatile first quarter of the year. 

    Time will tell! 

     

  • What My Recent Surgery Reminded Me About Technology.

    One of my recurring messages is to focus on what you want, rather than what you don’t want.

    Likewise, I believe the best way to get through challenging periods is to focus on your resources or progress.

    Anyway, two weeks ago, I had a minor surgery.

    Let’s face it, very few people “want” to have surgery (even small ones) … and, for those that do, it’s a sign that something else is bothering them even more.

    As much as it sucked, I have a lot to be grateful for. The practical realities of time, technology, and progress made the procedure and the recovery process easier than at any point in our species’ history.

    Procedures that used to mean multiple days in a hospital bed have you home in under 24 hours.  

    It brought back memories of my knee surgery from 12 years ago… and reminded me of what technology makes possible.

    Before my knee surgery, I wasn’t enjoying the prospect of the needles, the knock-out drugs, the cutting, or the recovery process. Frankly, I was scared.

     

    130113 What - Me Worry
     

    History is littered with tales of once-rare resources that have become plentiful through innovation. The reason is pretty straightforward: scarcity is often context-dependent.

    Imagine a giant orange tree packed with fruit. If you pluck all the oranges from the lower branches, you are effectively out of accessible fruit. From that limited perspective, oranges are now scarce. But once someone invents a piece of technology called a ladder, the problem is solved.

    Here is a picture from inside my knee (unlike years ago, they didn’t have to slice me open to gain access for the picture or the repair): less damage, less time, less drugs, less recovery.

     

    130113 Knee Surgery

     

    Bottom-Line: I walked over 2,500 steps the day after the surgery. 

    Think how far diagnostics and surgery have come since then?

    Whether it is 3D imaging, minimally invasive surgical instruments, or linking big data and elastic computing, technology is a resource-liberating mechanism. It can make the ‘once scarce’ the ‘now abundant’ (or ‘readily accessible’) … and a lot less painful.

     

    From ‘Doctor Klingon’ to Clarity — and What That Means for You

    But where are we today – and how was surgery different?

    It sounds like a joke, but the future of medicine is in your pocket.

    One of the biggest differences for me was having AI available to help me feel informed throughout the process. From the beginning, where I wanted to understand the issue and potential solutions, to having AI available on my phone in the recovery room. For example, while waiting for the doctor to tell me “how things went,” I downloaded the surgical notes from the hospital portal, only to find that they were written in “doctor speak” Klingon. So I opened Perplexity in incognito mode and asked it to interpret the notes, and explain everything to me as if I had minimal medical knowledge but still wanted to understand what happened and what I should expect. The result was incredibly comforting, and I was able to use that to send updates to family and friends.

    Meanwhile, try to imagine the extensive technology used by doctors and medical staff throughout the process to test, analyze, interpret, monitor, and treat.

    Soon, we’ll be able to utilize real-time data for diagnostics and design treatment plans and preventive care tailored to an individual’s unique biology and lifestyle. As a result, personalized, predictive healthcare will become the norm. Likewise, the idea of tailoring treatment to your unique biology will be expected, not exceptional.

    It’s also easier than ever to imagine the shift from reactive to preventive medicine. Surgery will become less frequent as AI and wearables catch problems before they require intervention. Likewise,. That means better care and better outcomes – at scale!

    And it is all getting better faster than before.

    Pretty cool! 

  • Diminishing Returns in AI: The Most Common AI Mistake

    At some point, more of the same stops paying off … it is called the law of diminishing returns.

    Law of Diminishing Returnsvia Sketchplanations

    Nature (and common sense) reminds us that equilibrium is important. For example, when you exercise too much, you get injured; when you drink too much water, you get poisoned; etc. 

    This concept applies almost everywhere.

    • It's why diversification is so important in portfolio construction theory. 
    • Or, why you don't want to put all your eggs in one basket (concentrating your risk).
    • And, my favorite, it's also why you shouldn't only eat vegetables.

    A related nugget of wisdom from the extreme … Too much of a good thing is a bad thing! 

    And of course … Be moderate in everything, including moderation.

    A recent study on the effects of ChatGPT use on brain activity also supports this theme. 

    via "Your Brain on ChatGPT: Accumulation of Cognitive Debt when Using an AI Assistant for Essay Writing Task" 

    The study divided 54 subjects into three groups, and asked them to write several SAT essays using ChatGPT, Google, or nothing at all. They used an EEG to record the writers' brain activity. ChatGPT users showed the lowest brain engagement. Over time, ChatGPT users got lazier. 
    As a result, the ChatGPT essays also ended up lacking original thought and sounding similar. 
     
    The paper suggests that the use of LLMs could harm learning and retention. The group that wrote without any help showed the highest neural connectivity, and higher brain activation in creativity ideation, memory load, and semantic processing. This group was more engaged and curious, and expressed higher satisfaction with their work. 
     
    The paper hasn't been peer-reviewed yet and has a small sample size. 
    Ultimately, I think it's telling us something we probably could have already guessed. If you're not actually the one reading or writing something … you're not going to absorb the information as well. Your brain isn't going to activate as well. And if you're not finding other places to train your brain, you'll get worse at critical thinking. 
     
    A few weeks ago, I wrote about my research process and how AI has both bolstered and hindered certain aspects of it. I'm casting a wider net, but going less deep. 
    So now, I’m exploring how to maintain a balance. I still want to leverage AI’s value, while reintroducing a layer of slowness and reflection into the process. Maybe that means manually summarizing some articles. Maybe it means pausing to journal about what I’ve read, or discussing it with someone. The goal is not to abandon the efficiency — but to ensure that efficiency doesn’t come at the cost of depth. - via "Is AI Making Your And Your Team Smarter?"
    This isn't a call to avoid AI or to slow down its development. It's a call to deliberation and intentionality. Students are flaunting that they're using ChatGPT to shirk the system. Companies are releasing AI-written copy not only on their websites but also in press releases. Humans are falling in love with chatbots and leaving their spouses. 
     
    Meanwhile, AI is also the underpinning of countless enhancements and increased productivity. 
     
    The same thing happened with the Internet. 
     
    At a certain point, overreliance becomes a crutch, not a tool. 
     
    I bet AI makes unintelligent and lazy people lazier and less intelligent. 
    I'm positive it can make YOU smarter and more effective if you use it in moderation and to support your unique abilities. 
    Onwards! 

  • My Artificial Intelligence Journey

    Time seems to go faster as I get older. Likewise, technology seems to be advancing faster than ever, too.

    Take AI as an example… even though I've been involved in this field for many years, I'm surprised by how rapidly it's improving now.

    I suspect that part of the surprise comes from comparing the current pace of change to my memories of how long it took to improve in the past. Even though I had a sense of the quickening, the thing about exponential technologies is that there's a tipping point … and clearly we're past that point on the curve.

    I'm often met with surprise when I talk about my AI journey … because it began in 1991, when it was still hard to spell AI.

    Looking back, it makes a lot more sense to me than it did as I was moving through it. Here is a video about that journey and what it means for you and your future. 

     

    Click here to view the transcript of the video.

    Looking back on my life and career, one could argue that I got my start in AI with my most recent company, Capitalogix, which was founded over 20 years ago. Or, perhaps, we could go back further and say it started with my previous company, IntellAgent Control (which was an early AI company, focused on the creation and use of intelligent agents). By today's standards, the technology we used back then was too simple to be considered AI, but at the time, we were on the cutting edge.

    Maybe we should go further back and say it started when I became the first lawyer in my firm to use a computer … or was it when I first fell in love with technology? 

    The truth is … I've spent my whole life on this path. My fascination with making better decisions, taking smarter actions, and getting better results probably started when I was two years old (because of the incident discussed in the video).

    Ultimately, the starting point is irrelevant. Looking back, it seems inevitable. The decisions I made, the people I met, and my experiences … they all led me here.

    However, at any point in the journey, if you asked, "Is this where you thought you'd end up?" I doubt that I'd have said yes. 

    I've always been fascinated by what makes people successful and how to become more efficient and effective. In a sense, that's what AI does. It's a capability amplifier. 

    When I transitioned from being a corporate securities lawyer to an entrepreneur, Artificial Intelligence happened to be the best vehicle I found to do that. It made sense then, and it makes sense now.

    Like most things in life, it's easy to see the golden thread looking backwards, but it's a lot harder to see projecting forwards.

    I wouldn't have it any other way. It certainly keeps things interesting.

    Onwards!

  • Major Asset Class Performance Since 2020

    Last week, we highlighted the growth of cryptocurrencies. This week, we're taking a look at the performance of various asset classes during the previous 5 years – including Bitcoin. 

    To start, let's get a sense of where things stand year-to-date.

    This has been a "strange" year. As someone who follows Markets, I'm still surprised by how many times I'm tempted to say that.

    In addition, I'm also surprised by how well global assets have fared year-to-date.

    Here's a high-level overview.

    Gmi.tab_.01may2025 (Asset Class Returns)
    via CapitalSpectator.

    After a seemingly significant string of losses, U.S. stocks experienced a surprising rebound in May, marking their first monthly gain since January. This upturn propelled U.S. equities to the top of the performance leaderboard among major asset classes during the month. The rally was driven by broad strength across global markets, though some segments, particularly bonds in developed markets, faced declines.

    Equities and bonds typically have an inverse relationship. Recently, both markets have been reacting sharply — stocks up, bonds down. This dynamic reflects uncertainty. The market is balancing hope and fear simultaneously — hope in economic recovery and corporate earnings, and fear of tighter monetary policy.

    Game theory suggests that the conflicting incentives between growth-focused and risk-averse investors create a dynamic equilibrium sustaining this paradox. However, this brings up an uncomfortable question for investors:

     
    What if the erosion of bonds’ safe haven triggers a systemic liquidity crisis when protection is most needed?

     

    That is where a longer-term lens is particularly helpful, both for providing context and offering insights into portfolio mix and diversification strategies.

    The infographic illustrates how major asset classes performed each year over five years, highlighting the impact of external shocks and policy changes. It emphasizes the importance of diversification by showing how different assets respond uniquely to economic shifts, enabling investors to identify risks and opportunities in recent market cycles.

     

    via Visual Capitalist.

    Bitcoin has performed better than I expected during the past five years, attracting both institutional and retail investors. Meanwhile, gold has seen renewed interest as falling interest rates and easing political uncertainty have led some investors to seek safer assets, reflecting a shift toward lower risk tolerance in segments of the market.

    It's interesting to see the dichotomy between these two asset classes and their growth, despite their almost inverse profiles. 

    Meanwhile, 2025 has been a rocky year for many asset classes. If you like potentially meaningful (but likely meaningless) factoids, 2025 has seen the S&P 500's fifth-worst start to a year in history. 

    It will be interesting to see how the rest of this year plays out. 

  • Is Crypto Going Mainstream in 2025?

    Humans are good at recognizing significant changes on the horizon, but not nearly as good at understanding the second and third-order consequences of those changes.

    A great example is the Internet. As it spread, most adults understood that it would bring “big changes”. However, even as a tech entrepreneur at the time, I didn’t fully grasp what the rise of the Internet would cause or make possible.

    I feel the same way today about the rise of AI. It literally will change everything.

    Close behind that is what’s happening in Crypto.  

     

    Where Attention Goes, Money Flows

    I don’t claim to be a crypto expert or fan. Historically, I’ve been skeptical and resistant on many levels. Nevertheless, I've always argued the blockchain was here to stay. Now, even Crypto seems to be becoming an inevitability.

    Governments are becoming supporters. Regulators are falling in line. Big banks and industry are building infrastructure. New giants are forming. Coinbase recently joined the S&P 500. Circle just had a wildly successful IPO. And the performance of stocks like these hints at the growing market appetite for crypto businesses.

    Currently, Crypto’s market cap is over $3 trillion. At the beginning of Trump’s presidency, the cryptocurrency markets experienced a significant surge. Since Donald Trump’s re-election in November 2024, Bitcoin has surged 60 percent, reaching record highs. However, Bitcoin isn’t the only cryptocurrency experiencing a surge; even meme coins are seeing a massive increase in value. 

    Nevada recently hosted a Bitcoin conference, featuring speakers such as Vice President JD Vance, Trump’s two eldest sons, Donald Trump Jr. and Eric Trump, as well as White House crypto advisor David Sacks. 

    Despite the growth (and Trump’s support), there are still mainstream obstacles … obstacles that may be addressed by increased investment in stablecoins. For context, countries such as the UAE and Vietnam boast higher rates of cryptocurrency ownership than the United States. 

     

    Stablecoins Are Rising

    A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a reference asset like a fiat currency (e.g., U.S. dollar) or a commodity (e.g., gold). This contrasts with other cryptocurrencies, such as Bitcoin, which can experience significant price fluctuations. They serve many purposes, but ultimately believe they’re an interesting way to store value on-chain and take steps into the crypto world. 

    The stablecoin market in 2025 is dominated by a handful of major platforms and issuers, recognized for their scale, transparency, and integration into both traditional finance and decentralized finance (DeFi) ecosystems. The two largest and most respected stablecoin platforms are Tether and Circle.
     
        Tether (USDT)
    •Market Position: Tether remains the largest stablecoin by market capitalization, with over $140 billion in circulation and controlling more than 60% of the stablecoin market.
    •Key Features: USDT is widely used across centralized exchanges, DeFi protocols, and global payment networks. It is primarily backed by U.S. Treasury bills and managed by Cantor Fitzgerald, providing a reserve base comparable to that of major national treasuries.
     
        Circle (USDC)
    •Market Position: USDC is the second-largest stablecoin, with a market cap exceeding $60 billion.
    •Key Features: Known for its transparency, Circle publishes weekly attestations of reserves, which are held in cash and short-term U.S. government treasuries.
     
    Stablecoin funding is projected to 10X.

     

    CBInsightCryptoCBInsights via Voronoi

    When cryptocurrency started to gain popularity, I expressed concerns about how banks and governments would resist widespread adoption until they could introduce regulation and gain control over it. I remember confidently saying that, throughout history, governments have always protected the right to print and tax coin. That is still true … it just means something different to me, now, than it did when I said it.

    I’m starting to pay more attention to Crypto, blockchain, and other emerging DeFi technologies.

    I’m seeing an increasing flow of talent, opportunities, and resources to this space.

    For example, major payment players like Mastercard and Visa are allowing stablecoin transactions and even creating their own coins. 

    I do believe growth in stablecoins will also result in growth in other forms of cryptocurrency as well. 

    For context, here are the best-performing cryptocurrencies of 2024. 

     

    Chart showing the top performing cryptocurrencies as of Nov 2024

    via VisualCapitalist

    I still won’t pretend to be knowledgeable about the various coins, but I recognize that they are becoming more common and useful as speculation markets. 

    All in all, I believe we are witnessing the birth of another blue ocean, and we can expect increased attention and investment to continue.

    Onwards! 

  • Make Way For 2025’s Biggest Unicorns

    Billion-dollar startups are becoming increasingly common with VC funding surging, and an increased focus on exponential technologies. 

    VisualCapitalist put together an infographic based on May's PitchBook that highlights the newest Unicorns.

    If you are curious, PitchBook defines Unicorns as venture-backed companies valued at $1 billion or more after a funding round, until they go public, get acquired, or drop below that valuation.

    Here is the list for 2025.

     

    A nightingale rose chart that shows the biggest unicorns that were created in 2025

    Pitchbook via visualcapitalist

    Topping the list (and eclipsing every other company on the list) is Yangtze Memory out of China. They're focused on flash memory and solid-state drives. Yup, that's still a thing.

    Also high on the list is Abridge, an American AI startup focused on turning doctors' conversations with patients into documentation. If you've ever talked with a clinician of any sort, you know how time-consuming documentation currently is. The combination of AI and longevity—or age reversal—is likely to become an increasingly hot area for investment.

    Meanwhile, a rising tide floats many boats … and with the continuing rise of funding in AI, you'll also find a growing list of AI unicorns, like Peregrine, Synthesia, AnySphere, Mercor, and The Bot Company. 

    Although these individual companies are interesting, the larger trend is probably more significant. 

    There have been 43 new unicorns in 2025 alone. And while the most profitable unicorns from 2024 are still OpenAI, ByteDance, and SpaceX, their competition is on the rise.

    I've been a tech entrepreneur for decades, so I'm used to the constant march of progress. But this feels different. The pace is quickening!

    We certainly live in interesting times!

  • The Rise of AI Art and Its Implications

    The last time I talked about AI Art specifically was in 2022 when Dall-E was just gaining steam. Before that, it was 2019, when AI self-portraits were going viral. 

    On both occasions, it still felt like the relative infancy of the technology. I compared it to VR getting another 15 minutes of fame. 

    The images at the time weren’t fantastic, but it was a massive step in AI’s ability to understand and translate text into a coherent graphic response. The algorithms still didn’t really “understand” the meaning of images the way we do, and they were guessing based on what they had seen before – which was much less than today’s algorithms have seen. They were also much worse at interpreting images. As such, when you tried to use AI to recreate an image, there were a lot of hallucinations. The algorithms were essentially a brute-force application of math masquerading as intelligence. 

    An Elegant Use Of Brute Force_GapingVoid

     

    Fortunately, AI imagery has come a long way since then. However, with that improvement comes more ethical concerns. 

    The rise of AI-generated art has sparked a complex and ongoing ethical debate, with compelling arguments on both sides. At the heart of the discussion lies the question of authorship, originality, and the impact of automation on human creativity and labor.

    Proponents of AI art argue that it represents a powerful extension of human imagination. Just as past innovations—such as photography, digital editing, or sampling in music—were initially met with skepticism, Advocates argue AI-generated art is simply the next evolution in the artistic toolkit, and it democratizes access to artmaking. As a result, those with less skill – or time – can explore new styles, generate concepts, and be creative in a new form. To this end, they see AI not as a threat but as a collaborator—another brush or chisel in an artist’s hand.

    However, critics raise concerns about the ethical implications of AI art, particularly in how these models are trained. Many AI systems are built on vast datasets scraped from the internet, including artwork by human creators who were neither consulted nor compensated, leading to accusations of IP theft. Moreover, they argue it sets a dangerous precedent where creative works can be replicated and commodified without consent or attribution. Lastly, on the idea of democratization, they would argue that art is already accessible to all and that people should be willing to explore skills not only to be good at them but to enjoy them. 

     

    White Black Before After Professional Upcycling YouTube Thumbnail

     

    The most recent trend has been a great example of this argument. The launch of OpenAI’s new image generator, powered by GPT-4, has empowered users to transform their photos into various famous media themes – like Renaissance paintings or  Studio Ghibli anime images – which ironically goes against the ethos of Studio Ghibli and Hayao Miyazaki. The studio is known for its commitment to the craft, with carefully animated and hand-drawn scenes. Their films are known for glorifying nature and living in harmony with it. Miyazaki also believes that AI art is disrespectful to the “life” found in human-created art. 

     

    “I feel like we are nearing the end times. We humans are losing faith in ourselves.” – Hayao Miyazaki 

     

    I’m a massive fan of AI – and even AI art … but as the technology continues to evolve, society must grapple with how to integrate these tools in ways that honor both progress and the rights of the artists (and people) whose work—and livelihoods—may be at stake.

    What do you think?

  • AI: We’re Not Just Prompts!

    AI’s trajectory isn’t just upward—it’s curving ever steeper. From DeepMind’s groundbreaking models to Flow’s democratization of filmmaking, people are becoming used to how quickly AI technology improves.
     
    Breakneck doesn’t even seem adequate to explain the scale of the movements. Because it isn’t just about the rate of change – even the rate of change of the rate of change is accelerating … and the result is exponential progress.
     
    Here is a simple example. Remember when you mocked AI-generated videos on social media for obvious flaws (e.g., six fingers, unnatural blinking or movement, etc.). Over the past few months, AI media quality has improved so much that spotting fakes is now difficult, even for tech-savvy people.
     
    Well, we just took another giant leap.
     
    This week, Google’s DeepMind unit released three new core AI models: Imagen for image generation,  Lyria for music generation, and Veo 3 for video generation.

    It only takes a quick look at Veo 3 to realize it represents a significant breakthrough in delivering astonishingly realistic videos.

    I’m only including two examples here … but I went down the rabbit hole and came away very impressed.

    Take a look – Everything in the clip below may be fake, but the AI is real.

     

    via Jerrod Lew

    The era of effortless, hyper-real content has arrived.
     
    One of the big takeaways from tools like this is that you no longer need content creation talent other than your ideas.
     
    An example of this comes from Google’s new AI filmmaking tool, Flow. 

    What Is Flow?

    What if creating professional-grade videos required no cameras, no crew, and no weeks of editing?
     
    Flow can imagine and create videos just from your ideas. Kind of like telling a friend a story and having them draw or act it out instantly.

    How Does It Work?

    Think of Flow as a giant box of movie Legos. You can bring your own pieces (like pictures or clips) or ask Flow to make new pieces for you. Then, you snap them together to build scenes and clips that look like real movies.

    Why Is This Cool?

    It is becoming easier for almost anyone to create the type of content that only a specialist could produce before. The tool makes it easy in these three ways.

    1. Consistent: The videos stick together well, so your story doesn’t jump around confusingly.
    2. Seamless: It’s easy to add or change things without breaking the flow.
    3. Cinematic: The videos look high-quality — like something you’d see on TV or in theaters.

    If you want to play with it, it’s available to Google Ultra subscribers through the Gemini app and Google Labs. 

    Ok, but what can it do?

    Redefining “Real”

    Don’t skip this next part. It’s what gave me the idea for the post.
    To set the stage, imagine you’re watching a video of a person talking. Typically, you think, “This is real — someone actually stood in front of a camera and spoke.” But now computers can make a video that looks and sounds so real, you can’t tell it’s fake.
     
    Anyway, this week, I saw a cool video on social media. At first, I thought it was cool simply because of the idea it expressed. But the video gets even more interesting when you realize how it was created.
     
    “Prompt Theory” is a mind-bending exploration of artificial intelligence brought to life. The premise examines what happens when AI-generated characters refuse to believe they’re not real. From stunning visuals to synced audio, this video showcases AI’s new immersive storytelling power while examining some pretty trippy concepts.
     

    Hashem Al-Ghaili via X

    I predict you will see a massive influx of AI-generated content flooding social media using tools like this. 

    Meanwhile, digital “people” with likenesses and internal objectives are increasingly going to become persistent and gain the ability to influence our world. This is inevitable. Yet, it’s still a little disorienting to think about.
     
    As digital agents gain persistence and purpose, we face profound questions about reality, ethics, and human creativity.
     
    And that is only the beginning!
     
    Perhaps we are living in a simulation?