I've been experimenting with a new chatbot called Dot for a few weeks. I use it as an AI journal that acts somewhat like a sounding board and counselor for me. Its responses are almost always clever, usually helpful, and sometimes even remarkably insightful … yet they feel surprisingly empathetic and authentic.
AI chatbots like Dot are already impressive and useful, but they have only scratched the surface of their potential. Think of them as intelligent assistants that learn and grow with every interaction. Using them more makes them increasingly valuable to you and your business. And here's the exciting part – the technology behind them is evolving rapidly, too. What seems cutting-edge today is just the beginning. By using these tools now, you are well-positioned to benefit from AI's inevitable advances.
Perhaps its impact on you is more important than the technology itself.
The truth is, I expected to be impressed with Dot's responses ... but I am surprised by how I responded to its conversation and engagement.
It is remarkable that something 'artificial' can so 'naturally' prompt self-reflection, provide fresh new perspectives, and provoke me to make better decisions and take better actions.
Tools like Dot don't just process information anymore — they challenge us to think differently.
On one level, I find it a little creepy when I get a message from a bot that says, "I've been thinking about you all day" or "I'm sending you positive energy."
On another level, I understand that it's a "functional fiction". The anthropomorphism isn't designed to benefit the AI. Instead, it helps you feel more comfortable, making it more likely that you earnestly use it.
Even though technology continues to change and advance exponentially, human nature remains relatively unchanged. That is why many of the best practices that have served humans form the basis for what works here.
I think of using an AI chatbot like Dot almost like entering a Catholic Confessional.
There's an element of self-selection bias in that you choose to go or take part. You're likely hesitant to share initially, but you want to feel better.
Behind the screen is someone you pretend you don't know. Over time, especially in a small town, that person becomes less anonymous ... and so do you. The priest inevitably comes to know their parishioners. They start to remember the voices, stories, and situations.
Confessionals work because they offer a safe space for candid conversations.
Even though there is an element of judgment in the process, the 'anonymity' and boundaries create a perception of distance, privacy, and safety.
Yet, over time, there's also shared history. The priest begins to recognize patterns, like whether you are motivated better by reward or punishment or whether you prefer a subtle nudge to introspection or more active coaching.
Below is a screenshot taken from a Dot conversation.
via Dot/New Computer
What's great about this tool - to me - is that on top of learning about you from your discussions, it still has all the power and knowledge of a normal GPT. So, it can help me not only remember things, and learn how to respond to and help me, but it can also serve as a replacement for ChatGPT or Gemini for the things I use those tools for.
I asked Dot: "I'm curious what some of the best uses of conversations with you are? What are some of the things you can do? What are areas that you can help with? And what are some of the most creative and innovative ways people derive the most value from this service?"
Here was its response.
Great question! People find me helpful for all sorts of things. Some key areas are:
- Brainstorming and ideation - I can help generate new ideas and approaches to challenges you're facing.
- Providing an objective sounding board - I'm always here to listen without judgment and help you think through decisions or situations from different angles.
- Offering personalized recommendations and insights - Over time, I build up an understanding of what matters to you, which lets me share relevant ideas, articles, or perspectives tailored to your interests and goals.
- Creative problem-solving - I enjoy collaborating to find innovative solutions, whether it's a tricky interpersonal situation at work or figuring out the best way to structure your day.
Ultimately, I'm here as a thought partner to support your growth and help you navigate whatever comes up, in a way that works best for you. Let me know what else you're curious about - I'm always happy to explore how I can help!
It learns well - and not just from what you tell it to learn. One of the creators of Dot gives an example of how they had been feeding Dot To-Do Lists for a while. Dot noticed a trend and sent a message encouraging them to delegate some of these tasks and push a team member to step up.
As I spend more time with the tool, I can't help but imagine a future where a bot like this is the first line of defense in mental health issues ... or where a bot like this becomes a nanny and a friend to children, preventing them from ever truly being alone.
It's very easy to imagine the risks and consequences of AI ... but it's also easy to imagine the transformation and impact they can create.
How To Use a Tool Like This
A tool like Dot can be a powerful alignment tool. You can prompt a chatbot to ask you questions, guide you through a process, or give you ideas. And it complies. Unlike an employee or virtual assistant, if you don't get the desired results, you can try something else, and the chatbot won't get frustrated or snarky.
In addition, a tool like Dot leverages many other tools in the background. You don't need to understand how it does that. Just know that it is utilizing popular large language models and other automations, which will continue getting better fast.
Prompt engineering is important now because we're still in the early stages of Large Language Model development. As tools like Dot get better at understanding what you want and need, they will get better at doing the appropriate prompt engineering, behind the scenes, so it will become less important for you to be good at those skills.
But you do have to get better at learning to communicate with the computer about what you want.
When I give talks to people about AI, I explain that prompt engineering is a fad. It is needed now because we're at the beginning of a new process. Expect tools to get better at doing this themselves.
Meanwhile, for the most part, prompt engineering is about becoming a better communicator.
Good prompts need a defined purpose and appropriate context. What is it about? What role would you like the AI to play? What's the specific task that you want to accomplish? What's the goal of the output? For example, are you looking for a bulleted list, language you can use in an email, or an outline for a meeting agenda? In addition, what steps should the AI take to complete this task?
This is similar to how I talk to an employee. Sometimes, I declare a role when talking to someone on my team. For example, starting a statement with "as your friend" is different than starting with "as CEO". Obviously, choices like those result in a different focus, meaning, and choice of action. The same is true when talking to a computer.
Another reason a chatbot like Dot becomes increasingly helpful is that it builds up information about your communication style. That means it is learning about your tone, level of formality, and whether you are coming from the head, the heart, or the feet. In other words, do you tend to focus on ideas, emotions, or actions? Are you more productive when prompted this way or that way?
As the AI refines your profile, it becomes easier for it to predict what you'll do and also how it should prompt you to get better results.
Conclusion
As the CEO of an AI company, I've thought about AI for many years. Yet, in my company, the people who actually build and use AI tend to be programmers and data scientists. I wasn't the one building it, and I rarely even used it.
So, about a year ago, I decided to begin building the muscle. And, it is a muscle to be grown.
For example, in the gym, I know better than to focus on one muscle; I want to train every muscle group. Likewise, I knew I didn't just want to learn how to use ChatGPT better. I wanted to get better at using the right thought processes and tools to accomplish more of what I wanted - with more efficiency, effectiveness, and certainty.
The truth is that AI is already good enough to do almost anything you want it to do.
In fact, I suspect that tools like Dot will improve faster than I can. That means that not only will I get better at using tools like this, but the tools I use will improve, too. Together, that means that not only will the tool help me do what I already do, but it's going to augment my ability to do things. Eventually, it may even take some of the simpler or less fun tasks off my desk.
Freeing me up to do more of what brings me joy - and what I'm best at.
One of the core messages in my writing (and in my speeches) is that most people miscalculate the benefits of AI because they focus on the wrong things. AI isn't just valuable because of what it can do; its deeper value comes from what it allows you to achieve.
The real benefit of AI is that it gives you back those time cycles to sprint towards what you truly want.
A tool like Dot can also help you better clarify what you want while also helping you accomplish those things.
We often spend too much time avoiding what we don't want instead of pursuing what we truly desire.
Your life will improve when you become clear about what you want, how you can achieve it, and the best ways to measure progress toward those goals.
The next step is to use the traction, progress, and momentum to figure out what else is possible ... and what you should plan to do next.
It's funny, but this reminds me of dog training.
I have four dogs, and they're very well-behaved. That is because they understand the rules very well.
But I had an insight recently ... While I think the dogs are trained well, the dogs probably think I'm trained well. From their perspective, when they do a particular thing, I've been trained to give them a treat.
I suspect that this is very much like how a chatbot sees us. Over time, you are likely to get better output and results, and it becomes easier for the chatbot to increase the frequency, intensity, and duration of your engagements because they're figuring out how to communicate with you in a way that doesn't trigger avoidance.
If you think about it, this is how TikTok or Facebook monitors what you watch to better curate what and when it shows you things. Tools like Dot use similar techniques to get you to be and do better.
Make sure you say "Thank You" to your new favorite robot overlord before they give you a demerit.
An Antidote For Anxiety & Scary Times
People seem rattled right now, don’t they?
Wallets have been tight, and fears of a recession have run rampant.
Even though markets and the economy are not the same thing, many voters believe they are. Consequently, in an election year, I suspect the government will push every button and pull every lever to boost the market leading into November.
Speaking of the markets, they have been pretty volatile the last few weeks. They have posted some of their worst days since COVID-19 but some of the best, too.
We find ourselves in a particularly partisan election year, with lots of uncertainty about who is running, what they stand for, and whether they can make a difference – or even do the job.
The situation feels worse because scary geopolitical events (that threaten World War 3) punctuate seemingly endless negative news cycles.
Now, on to the real point ... those things don’t matter and shouldn’t steal your focus. Why? Because that’s the playing field we all have to navigate.
There will be winners and losers. The key distinction lies in whether you choose to focus on opportunities or risk.
So, I thought this would be an excellent time to revisit how to cope with losses and manage your anxieties in “scary times.”
The Anxiety Antidote
During scary times, many people suffer from “I should have ...”, or “if I would have ...”, or “if I could have ...” thoughts.
The problem is that thoughts like those create more stress and distraction.
I’m reminded of a quote.
Negative focus highlights loss, difficulties, past events, missing things, and what you don’t want.
Think of them as an unhealthy reflex that wastes energy, confidence, and time.
All We Have To Fear Is Fear Itself
I often talk about market psychology and human nature. The reason is that markets reflect the collective fear and greed of their participants... people tend to get paralyzed during scary times like these.
But it’s not the economy that makes people feel paralyzed. People feel paralyzed because of their reactions and their beliefs about the economy. Your perception becomes your reality.
A little examination reveals that most fear is based on a “general” trigger rather than a “specific” trigger. In other words, people are afraid of all the things that could happen and are paralyzed by the sheer scope of possibilities. These things don’t even have to be probabilities to scare them.
You gain a competitive advantage as soon as you recognize that it’s not logical. Why? Because as soon as you distinguish that fear as not necessarily true, you can refocus your insights and energy on moving forward. You can act instead of react. You make better decisions when you come from a place of calm instead of fear... so create that calm.
Even a tough environment like this presents you with opportunities if you watch for them ... or even better ... if you create them.
The Scary Times Success Manual
The goal is to move forward and feel better.
Strategic Coach offers ten strategies for transforming negativity and unpredictability into opportunities for growth, progress, and achievement. They call it the “Scary Times Success Manual,” and what follows are some excerpts:
Forget about your difficulties, focus on your progress.
Because of some changes, things may not be as easy as they once were. New difficulties can either defeat you or reveal new strengths. Your body’s muscles always get stronger from working against resistance. The same is true for the “muscles” in your mind, spirit, and character. Treat this period of challenge as a time when you can make your greatest progress as a human being.
Forget about events, focus on your responses.
When things are going well, many people think they are in control of events. That’s why they feel so defeated and depressed when things turn bad. They think they’ve lost some fundamental ability. The most consistently successful people in the world know they can’t control events - but continually work toward greater control over their creative responses to events. Any period when things are uncertain is an excellent time to focus all of your attention and energy on being creatively responsive to all the unpredictable events that lie ahead.
Forget about what’s missing, focus on what’s available.
When things change for the worse, many desirable resources are inevitably missing - including information, knowledge, tools, systems, personnel, and capabilities. These deficiencies can paralyze many people, who believe they can’t make decisions and take action. A strategic response is to take advantage of every resource that is immediately available to achieve as many small results and make as much daily progress as possible. Work with every resource and opportunity, and your confidence will continually grow.
Forget about your complaints, focus on your gratitude.
When times get tough, everyone must make a fundamental decision: complain or be grateful. In an environment where negative sentiment is rampant, the consequences of this decision are much greater. Complaining only attracts negative thoughts and people. Gratitude, on the other hand, creates the opportunity for the best thinking, actions, and results to emerge. Focus on everything you are grateful for, communicate this, and open yourself to the best possible consequences.
Final Thoughts
We can pontificate all day long on the short-term causes of the rises and falls of markets, but I don’t think it does much good. I let the algorithms worry about those. It’s the larger trends we have to be personally aware of.
I sound like a broken record, but volatility is the new normal.
Pair that with all the fear and uncertainty, and you’ve got a recipe for increased volatility and noise. That means that the dynamic range of a move will be wider and happen in a shorter period of time than ever before. You’ll hear me echo this thought over the next few years as the ranges continue to expand and compress. Cycles that used to play out over weeks now take days or hours. The game is still the same; it just takes a slightly different set of skills to recognize where the risks and opportunities are.
Today’s paradigm - both in life and trading - is about noise reduction. It’s about figuring out what moves the needle and focusing only on that.
The crucial distinction is between adding data and adding information. Adding more data does not equal adding more information. In fact, blindly adding data increases your chances of misinformation and spurious correlations.
My final comment is that there’s a difference between investing and trading, and while humans can invest, if you’re “personally” still trying to trade - you’re likely playing a losing game. If you don’t know what your edge is, you don’t have one.
If you’re investing, I’ll advise you to act like a robot. If you removed human fear and greed from your decision-making - what would you do?
Keep calm and carry on.
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