Capitalogix

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. 

 

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. 

 

 

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?

Is AI Making You And Your Team Smarter?

At the core of Capitalogix’s existence is a commitment to systemization and automation. 

At first, the goal was to eliminate fear, greed, and discretionary mistakes from trading.

Over time, we’ve worked hard at making countless things easier. Much like math, we found that the best practice is to simplify complex processes before trying to automate them.

I’m surprised by how many times I have had the same realization ... Less is more.

Likewise, I’ve learned the hard way that a great strategy is useless if people don’t get it. That is part of the reason that frameworks are so important.

Ultimately, the process, the system, and the automation should follow this basic recipe if you want it to succeed:  Simple, Repeatable, Consistent, and Scalable.

Finding ways to automate sounds great. Increasing efficiency, effectiveness, and certainty sounds great, too  ... but, routines and habits become ruts and limits when they become un-measured, un-managed, or forgotten. 

A practical reality of increasing automation and constant progress is that it becomes increasingly important to have expiration dates on decisions, systems, components, and automations. We need to shine a light on things to make sure they still make sense or to determine whether we have a better option.

Freeing humans to create the most value sounds great, too ... but, as the pace of technological progress increases, the importance of freeing people to do more diminishes if they don’t actively rise to the occasion.

 

My Use of Technology

I got my first computer in 1984. It was the original Macintosh. That means I’ve been searching for and collecting technology tools to make business and life easier and better since the mid-80s.

It has been a long and winding road. These days,  it seems like I’m constantly looking for new ways to use AI in my life.

As you might guess, I “play” with a lot of tools. Of course, I think of it as research, discovery, and skill-building ... rather than playing. Why? Because it is something I’m good at, it produces value – and it gives me energy ... so, I make sure to reserve a place for it in my routine.

While most of what I explore doesn’t make it into my “real work” routine, I now have a toolbox of dozens of tools that I use for everything from research, notetaking, brainstorming, writing, and even relaxing. 

It’s a little embarrassing, but my most popular YouTube video is an explainer video on Dragon NaturallySpeaking from 13 years ago. It was (and still is) dictation software, but from a time before your phone gave you that capability. 

As I focus on systemization, I also have to focus on optimization. 

Using generative AI tools for daily research has fundamentally changed how I approach information gathering. What began as a meditative practice—slowly reading, digesting, and reflecting on material—has evolved into a faster, more expansive process. With AI, I can now scan and synthesize a much broader set of sources in far less time. The quality of the summaries and takeaways is high, enabling me to deliver more value to others. I can write better articles, share timely insights with fellow business owners, and keep my team well-informed. The impact on others has grown — but something subtle has shifted in my own learning.

The tradeoff is that if I’m not as careful as I used to be while doing the research, and I don’t engage with the material in the same way I did before. When I did the research manually, I was “chewing and swallowing” each idea, pausing to make connections, reflecting on implications, and wrestling with the nuance. That process was slower, but it etched ideas more deeply into memory.

As a result, my favorite articles of the week or month would show up in how I spoke on stage, what I wrote about, and how I worked through roadblocks with employees. Now, I notice that although I’m exposed to more information, it doesn’t have the same weight or impact. I’m consuming more at scale ... but retaining less, or perhaps less deeply (at least in my head). In contrast, I store much more, both in terms of quantity and depth, in my second brain (meaning, the digital repositories available for search when needed).

This brings up a fundamental distinction between knowledge storage and knowledge retrieval. Storage is about accumulating information, while retrieval is about quickly accessing and using the correct information at the right time. It requires digestion. 

It’s kind of like Amazon. Amazon has made buying books and getting them on my shelves easier than ever. I’ve got 1000s of books with answers to many of life’s questions. But, I’d estimate that I’ve really only read around half of the books I currently have on my shelf. The point is that having a book on your shelf with the answer to a problem is not the same as having the answers. 

I now have many thousands of articles in my Evernote. There are probably over a hundred of them about better “prompt engineering” or using “prompting techniques better”... but I can’t pretend that each article has made me better at those things. I have gotten better at thin-slicing and knowing what I want to store to improve the quality of the raw material I search for.

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.

The priority is making sure I’m optimizing on the right thing. It’s not progress if you’re taking steps in the wrong direction.

Let me know what you think about that ... or what you are doing that you think is worth sharing.

Onwards!

The World Is Getting Older ... You Are Too

We're on the cusp of a major demographic shift. 

Fertility rates are dropping and life expectancy is rising, basically across the globe. On the surface, not explicitly bad. It's great that improvements in healthcare, technology, and quality of life are resulting in a larger senior population. 

 

via visualcapitalist

In 1980, the average person was 26.5 years old. Today, the average person is 33.6 years old. 

Meanwhile, population growth has halved in the same time period. 

Based on this chart, the global population would start declining in 2085, as the average age rises to 42. By 2100, the global population will begin declining. 

Of course, there's variation depending on the country. 

Most countries are thinking about how to increase fertility rates. If fertility rates decline, and your population lives longer, you end up with a larger percentage of the population that cannot or does not work anymore. That results in more expenditure - especially in pension and healthcare systems -  without an accompanying increase in GDP or productivity. 

It seems unlikely that something won't dramatically affect these trends over the next 60 years.

Even if expenditure becomes a non-issue, countries are unlikely to be happy with declining population growth, in part because of declining production resources and tax income, but also because of diminished global power. 

What do you think? 

Global Happiness Levels in 2025

Are you Happy?

What does that mean? How do you define it? And how do you measure it?

Happiness is a surprisingly complex concept comprised of conditions that highlight positive emotions over negative ones. And upon a bit of reflection, happiness is bolstered by the support of comfort, freedom, wealth, and other things people aspire to experience. 

Regardless of how hard it is to describe (let alone quantify) ... humans strive for happiness.

Likewise, it is hard to imagine a well-balanced and objective "Happiness Report" because so much of the data required to compile it seems subjective and requires self-reporting. 

Nonetheless, the World Happiness Report takes an annual look at quantifiable factors (like health, wealth, GDP, and life expectancy) and more intangible factors (like social support, generosity, emotions, and perceptions of local government and businesses). Below is an infographic highlighting the World Happiness Report data for 2025.

World Happiness Report via Gallup

Click here to see a dashboard with the raw worldwide data.

I last shared this concept in 2022. At the time, we were still seeing the ramifications of COVID-19 on happiness levels. As you might expect, the pandemic caused a significant increase in negative emotions reported. Specifically, there were substantial increases in reports of worry and sadness across the ninety-five countries surveyed. The decline in mental health was higher in groups prone to disenfranchisement or other particular challenges – e.g., women, young people, and poorer people. 

Ultimately, happiness scores are relatively resilient and stable, and humanity persevered in the face of economic insecurity, anxiety, and more.

While scores in North America have dropped slightly, there are positive trends. 

The 2025 Report

In the 2025 report, one of the key focuses was an increase in pessimism about the benevolence of others. There seems to be a rise in distrust that doesn't match the actual statistics on acts of goodwill. For example, when researchers dropped wallets in the street, the proportion of returned wallets was far higher than people expected. 

Unfortunately, our well-being depends on our perception of others' benevolence, as well as their actual benevolence. 

Since we underestimate the kindness of others, our well-being can be improved by seeing acts of true benevolence. In fact, the people who benefit most from perceived benevolence are those who are the least happy. 

"Benevolence" increased during COVID-19 in every region of the world. People needed more help, and others responded. Even better, that bump in benevolence has been sustained, with benevolent acts still being about 10% higher than their pre-pandemic levels. 

Another thing that makes a big difference in happiness levels worldwide is a sense of community. People who eat with others are happier, and this effect holds across many other variables. People who live with others are also happier (even when it's family). 

The opposite of happiness is despair, and deaths of despair (suicide and substance abuse) are falling in the majority of countries. Deaths of despair are significantly lower in countries where more people are donating, volunteering, or helping strangers. 

Yet, Americans are increasingly eating alone and living alone, and are one of the few countries experiencing an increase in deaths of despair (especially among the younger population). In 2023, 19% of young adults across the world reported having no one they could count on for social support. This is a 39% increase compared to 2006. 

Takeaways

In the U.S., and a few other regions, the decline in happiness and social trust points to the rise in political polarisation and distrust of "the system". As life satisfaction lowers, there is a rise in anti-system votes.

Among unhappy people attracted by the extremes of the political spectrum, low-trust people are more often found on the far right, whereas high-trust people are more inclined to vote for the far left.

Despite that, when we feel like we're part of a community, spend time with others, and perform prosocial behavior, we significantly increase perceived personal benefit and reported happiness levels.

Do you think we can return to previous levels of trust in the States? I remember when it felt like both parties understood that the other side was looking to improve the country, just with different methods. 

On a broader note, while we have negative trends in the U.S., the decrease is lower than you might expect. The relative balance demonstrated in the face of such adversity may point towards the existence of a hedonic treadmill - or a set-point of happiness.

Regardless of the circumstances, people can focus on what they choose, define what it means to them, and choose their actions.

Remember, throughout history, things have gotten better. There are dips here and there, but like the S&P 500 ... we always rally eventually. 

Onwards!

Choosing To Be More Human in the Age of AI

Last week, I asked, “What do you do when AI gets better than you?” One of the key takeaways from that post was that AI is freeing you up to be more human.

My son (who helped write it) said he wished we used more examples and stories that dealt with “the future of being human” rather than “the future of work”. So, we decided that would be the “seed” idea for this post.

It’s funny, but when I started to gather my thoughts about it ... I felt a rush of emotions. 

Emotions and Logic

Emotions have frustratingly little to do with logic. Humans are driven by impulse and often by those that don’t represent our best nature. History shows that we’re driven by fear, greed, scarcity, and self-preservation. And, truthfully, that’s all “human”. But humans are also beautiful, meaning-making machines ... and throughout our often messy history, we’ve done amazing things and somehow survived.

Appreciating Life

Watching my father die was a catalyst for me to appreciate life and living more than I did. I gave a TEDx talk about that and wrote articles about the time value of a life worth living. At the end of his life, it was clear that he appreciated things more (a family dinner, a kiss goodbye, the beauty of a sunset) and that he would have done almost anything for more time. Two hidden gifts came from that “scarcity”. The first gift was recognizing that we got to choose how much more “life” we got out of the last part of my dad’s life. The second gift was realizing that you don’t have to wait for the end of life to “live like you only have a year left”.  

Final Goodbye

I have another memory from his deathbed as well. He had been out of it for a while, and I was worried that I wouldn’t get a chance to say a final goodbye and to tell him how much I loved him. Luckily, he woke up, and we had a few final lucid moments together. He looked me straight in the eyes, told me how much he loved me, and then with a touch of humor said, “Okay, so tell me how this relates to Veritas ...” which was the original name of the company I was running at that time. His final message to me was a reminder that life is not really about work.

Looking Beyond Work

Transparently, I still look at the world through a lens and filter that too often focuses on work. Yet I also recognize and strive to pay attention to the deeper meanings beyond that.

Getting back to the point of the article, it is easy to see how AI relates to work ... yet, it might be more important to consider how AI is going to affect the rest of your life. 

 

 

In the last article, we discussed how Lee Sedol, one of the world’s top Go players, retired after losing to AlphaGo. When asked about it, Lee said, “Losing to AI, in a sense, meant my entire world was collapsing.” He also explained, “I could no longer enjoy the game. So, I retired.” 

While it’s certainly his right to retire, I think it might have been the wrong choice ... or, at least, not what I would have done in that situation.

If playing Go was his passion, it might have been better for him to change how he “keeps score” to focus on his progress, rather than the distance between him and what AI could do.

As long as you believe you can get better (and have hope for continued improvements), there are many ways to leverage the capabilities and opportunities that come from that.

Many people engage in sports or games even though they know they won’t become the greatest of all time. The same is true for almost any hobby or pursuit (whether it’s in art, literature, philosophy, craftsmanship, or other fields). There will always be someone or something that can do it better, faster, or more efficiently. However, that shouldn’t be the sole determinant of whether you get joy or energy from pursuing a path of getting better at what you want to excel at.

One of my core beliefs is that the changes coming to the world will free us up to be more human. That means we have to choose what to pursue.

What’s more human than pursuing something difficult? 

The Beauty of Passion

In a world increasingly shaped by AI’s precision and efficiency, choosing to do something purely out of passion becomes a powerful act of self-expression. When a machine can paint more photorealistically or compose music with perfect mathematical harmony, human creativity finds new purpose not in competing, but in conveying emotion, imperfection, and lived experience.

 

As we focus on growing businesses and changing the world, I think it’s easy to lose sight of the passion that first got us into business. 

I do the research and write this newsletter, not because I expect it to make me a ton of money, or because AI can’t do it ... but because I enjoy it, and it’s almost like meditation for me. 

My son plays rugby despite enduring countless injuries, significant financial cost, and realizing that it takes increasing amounts of his time to stay competitive. From a logical standpoint, it makes almost no sense for him to spend scarce resources or risk such extreme bodily harm in his 30s. But he’s passionate about rugby, enjoys playing it, and recognizes how it improves other parts of his life. It is an excellent example of the time value of a life worth living. He made a conscious choice that this is what it takes to be, do, and have what he values most.

The Power of Fun 

Artificial Intelligence is probably better than you at poker ... does that mean you shouldn’t have some friends over and try to win their money?

Does it mean you shouldn’t try to learn a new instrument or write a book?

We often undervalue fun because it doesn’t always produce measurable outcomes, but fun is not frivolous. It’s how we bond, relax, and explore parts of ourselves we can’t access through obligation or structure.

We intrinsically understand this. You don’t worry about being the best when you’re playing pick-up basketball or throwing a football with your son. You’re focused on creating memories and having fun. 

Joy doesn’t need justification. 

 

Striving To Be The Best

Ultimately, you have to be willing to lose to be the best. In every pursuit, there will always be someone ahead of you. Whether it’s a faster runner, a sharper mind, or a newer technology, I want to be the man in the arena. 

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. - Theodore Roosevelt, Citizenship in a Republic

The point has never been to be the best at everything ... but to strive for your best.

I’ve always believed the game isn’t over until I win, not because I can’t lose, but because the belief empowers me to get back up again. 

Being second best — or tenth, or just a beginner — doesn’t diminish your effort; it validates it. The climb matters, even if you never reach the summit. Humans are wired for persistence and purpose, not perfection. 

Humanity got where we are today because people weren’t happy with the status quo. They pursued greatness and innovation. Sometimes, what seems like failure ends up being the most significant success. 

AI is an incredible opportunity. It’s an opportunity to increase your productivity, to transform your business, and to redefine industries. It’s also an invitation to redefine your future and how you spend time. You can use it as an excuse to get smaller or bigger ... the power is in your perspective.

Hope that helps.

The Next Gilded Age ... This Generation's Carnegies, Rockefellers and Vanderbilts

Wealth is fascinating to those who have it, those who want it ... and even those who don’t.

Billionaires have always controlled significant amounts of wealth compared to the general population. However, now we’re seeing substantial wealth differences grow within the billionaire population itself. The very richest are getting much richer compared to just “wealthy” people. 

When Forbes published its first World’s Billionaire List in 1987, 140 billionaires accounted for a total of $295 billion in global wealth. Topping that list was Yoshiaki Tsutsumi from Japan, with $20 billion. A lot has changed since then. Elon Musk topped this year’s Forbes List and is now worth over $342 billion. His wealth is about 21 times more than Tsutsumi’s ... and over two million times more than the average American family’s.

A New Gilded Age

In 2017, The Guardian released an article stating that the world’s super-rich held the greatest concentration of wealth since the turn of the 20th century. According to The Guardian, 1,542 billionaires held approximately $6 trillion in collective wealth, which would put them as the fifth largest GDP at the time. 

Last year, less than a decade since the Guardian’s article, Forbes estimated that 2,781 billionaires had a combined net worth of over $14 trillion. For a little more context, some estimate that the world’s richest 1% own more than 43% of global financial assets. 

Currently, the world’s super-billionaire population is primarily made up of entrepreneurs who made their money in the tech sector, or whose industry was catapulted to new levels by technological advances. Six of the top ten wealthiest individuals on the Forbes list fall into that category.

In comparison, the first Gilded Age was established by a few entrepreneurs controlling monopolies in US rail, oil, steel, and banking.

 

The image is “Bosses of the Senate”.

The Vanderbilts amassed $185 billion (adjusted for inflation) from their railroad empire. Andrew Carnegie made $309 billion from his steel empire. John D. Rockefeller made $336 billion from an oil empire (that controlled about 90% of the American oil business). They were the stars of the Gilded Age ... and their control over major industries led to some of the largest individual fortunes in American history compared to the average population. 

It’s interesting to look at the transition from the richest in the late 1800s to the richest in 2025 ... the transition from industries like Steel, Oil, and Rail, into companies like Amazon, Microsoft, Tesla, and Walmart. While they certainly dominate the spaces they’re in, it is a far cry from the monopolies of the 1800s. 

While there are more “super-rich” individuals today than before, our wealthiest individuals still manage to have some impressive stat lines. As of the end of 2024, Bernard Arnault was worth an estimated $233 billion. Elon Musk was worth around $195 billion, and Jeff Bezos was right behind at $194 billion. Today, Bernard is sitting at $178 billion, Elon is up to $342 billion, and Jeff is up to $215 billion. Arnault is a clear example of how Trump’s tariff announcement impacted billionaires. 

With the AI gold rush in full swing, it will be interesting to see who gets added to the list in the coming years. 

Let me know when your name makes that list. I’ll do the same.

Are Your AI Fears Valid? What Experts Say

It's no surprise that there is often a disparity between what experts believe and what the average adult feels. It's even more pronounced in industries like AI that have been lambasted by science fiction and popular media.

Even just a few years ago, many of my advisors and friends told me to avoid using the term "AI" in our materials because they thought people would respond negatively to it. Back then, people expected AI to be artificial and clunky ... yet, somehow, it also reminded them of dystopian stories about AI Overlords and Terminators. An incompetent superpower is scary ... so is a competent superpower you can't trust!

As AI integrates more heavily into our everyday lives, people's hopes and concerns are intensifying... but should they be? 

Pew Research Center surveyed over 5,000 adults and 1,000 experts about their concerns related to AI. The infographic shows the difference in concern those groups had regarding specific issues.

 

Statista via VisualCapitalist

Half of experts (47%) report being more excited than concerned about AI’s future. Among U.S. adults, just 11% say the same.
Instead, 51% of adults say they’re more concerned than excited — more than triple the rate of experts (15%).

 

The most common—and well-founded—fears center on misinformation and the misappropriation of information. Experts and the average adult are in alignment here. 

I am consistently surprised by the lack of media literacy and skepticism demonstrated by otherwise intelligent people. Images and articles that scream "fake" or "AI" to me are shared virally and used to not only take advantage of the most susceptible but also to create dangerous echo chambers. 

Remember how bad phishing e-mails used to be, and how many of our elderly or disabled ended up giving money to a fake Prince from various random countries? Even my mother, an Ivy League-educated lawyer, couldn't help but click on some of these e-mails. Meanwhile, the quality of these attacks has risen exponentially.

And we're seeing the same thing now with AI. Not only are people falling for images, videos, and audio, but you also have the potential for custom apps and AI avatars that are fully focused on exploitation. 

AI Adoption Implications

Experts and the average adult have a significant disparity in beliefs about the long-term ramifications of AI adoption, such as potential isolation or job displacement. 

I'm curious, how concerned are you that AI will lead to fewer connections between people or job loss? 

I often say that technology adoption has very little to do with technology and much more to do with human nature.

That obviously includes AI adoption as well. 

Career growth often means abandoning an old role to take on something new and better. It's about delegating, outsourcing, or automating tasks so you can free up time to work on things that matter more.

It may sound like a joke, but I don't believe most people will lose jobs to AI. Instead, they'll lose jobs to people who use AI better. The future of work will be about amplifying human intelligence ... making better decisions, and taking smarter actions. If your job is about doing those things – and you don't use AI to do them – you will fall behind, and there will be consequences.

It's the same way that technology overtook farming. Technology didn't put people out of work, but it did force people to work differently.

Innovation has always created opportunity and prosperity in the long term. Jobs may look different, and some roles may be phased out, but new jobs will take their place. Think of it as tasks being automated, not jobs. 

Likewise, COVID is not why people have resisted returning to the office. COVID might have allowed them to work remotely in the first place, but their decision to resist going back to the office is a natural part of human nature.

When people found that technology enabled them to meet expectations without a commute, opportunities and possibilities expanded.

Some used the extra time to learn and grow, raising their expectations. Others used that time to rest or focus on other things. They're both choices, just with different consequences.

Choosing to Contract or Expand in the Age of AI 

AI presents us with a similar inflection point. I could have easily used AI to write this article much faster, and it certainly would have been easier in the short term. But what are the consequences of that choice?

While outreach and engagement are important, the primary benefit of writing a piece like this, for me, is to take the time and to go through the exercise of thinking about these issues ... what they mean, what they make possible, and how that impacts my sense of the future. That wouldn't happen if I didn't do it.  

I often say, "First bring order to chaos ... then wisdom comes from making finer distinctions." Doing work often entails embracing the chaos and making finer distinctions over time as you gain experience. With repetition, the quality of those results improves. As we increasingly rely on technology to do the work, to learn, and to grow, the technology learns and grows. If you fail to also learn and grow, it's not the technology's fault. It is a missed opportunity.

The same is true for connection. AI can help you connect better with yourself and others... or it can be another excuse to avoid connection.

You can now use an AI transcription service to record every word of an interaction, take notes, create a summary, and even highlight key insights. That sounds amazing! But far too many people become accustomed to the quality of that output and fail to think critically, make connections, or even read and process the information.

It could be argued that our society already has a connection problem (or an isolation epidemic), regardless of AI. Whether you blame it on social media, remote work, or COVID-19, for a long time, how we connect (and what we consider "connection") has been changing. However, many still have fulfilling lives despite the technology ... again, it's a choice. Do you use these vehicles to amplify your life, or are they a substitute and an excuse to justify failing to pursue connection in the real world?.

As said, actions have consequences ... and so do inactions.

I'm curious to hear your thoughts on these issues. Are you focused on the promise or the perils of AI?

The "Chart Of The Century" In 2025: A Look At Consumer Price Inflation

In an era of economic uncertainty, few visualizations have captured the attention of economists, policymakers, and everyday consumers like the “Chart of the Century” created and named by Mark Perry, an economics professor and AEI scholar. This chart tracks the dramatic shifts in consumer prices across various sectors of the American economy over a quarter-century, revealing patterns that challenge conventional wisdom about inflation, purchasing power, and economic well-being.

The most current version reports price increases from 2000 through the end of 2024 for 14 categories of goods and services, along with the average wage and overall Consumer Price Index. Here are the key findings.

 

• Wage growth has outpaced inflation by a significant margin (123.3% vs. 90%) from 2000 to 2024, resulting in a 16.1% increase in real purchasing power.
• Sharp divergence exists between sectors: Technology and tradable goods have become much cheaper, while healthcare, education, and childcare costs soared.
• Market competition and trade liberalization drive price decreases, while regulated markets and limited competition contribute to price increases.
• Despite objective improvements in purchasing power, many consumers still feel financial pressure due to changing consumption patterns and “quality of life creep”.
• Policy challenges remain in balancing regulation with market forces, particularly in essential services like healthcare and education.

 

Core Economic Metrics: The Big Picture

The foundation of this analysis rests on three critical metrics that provide context for all other price trends:

 

Metric	Change (2000-2024)
Consumer Price Index (CPI)	+90%
Average Hourly Income	+123.3%
Real Purchasing Power	+16.1%

 

From January 2000 to now, the CPI for All Items has increased by almost 90%. That is a big jump from its 59.6% level in 2019, when I first shared this chart.

 

These numbers tell a surprising story: despite widespread perceptions of economic hardship, Americans’ wages have grown significantly faster than inflation over these 24 years. This translates to a meaningful increase in real purchasing power – the ability to buy more goods and services with the same amount of work.

 

However, this aggregate picture masks dramatic variations across different categories of goods and services. Let’s explore these divergent trends.

 

The price of technology, electronics, and consumer goods — think toys and television sets — has tumbled over the past two decades. Why? These categories benefit from global competition, technological innovation, and manufacturing efficiencies.

Meanwhile, the cost of hospital stays, childcare, and college tuition, to name a few, have surged. Why? These sectors share important characteristics: they are typically non-tradable services (cannot be imported), operate in markets with limited competition, and are often subject to extensive regulation.

Below is Perry’s Chart of the Century. To help you interpret it better, lines above the overall inflation line have become functionally more expensive over time, and lines below the overall inflation line have become functionally less expensive. 

via Human Progress

For context, at the beginning of 2020, food, beverages, and housing were in line with inflation. They’ve now skyrocketed above inflation, which helps to explain the unease many households are feeling right now. College tuition and hospital services also have continued to rise relative to inflation over the past few years.

 

Market Dynamics: Understanding the Divergence

What explains these dramatically different price trajectories? Here are several (but not all of the) key factors:

Factors Driving Price Increases

• Government regulation creating compliance costs and barriers to entry.
• Quasi-monopolistic markets with limited price competition.
• Non-tradeable services protected from foreign competition.
• Limited technological disruption in certain service sectors.

Factors Driving Price Decreases

• Foreign competition putting downward pressure on prices.
• Technological advancement reducing production costs.
• Manufacturing optimization increasing efficiency.
• Market competition forcing price discipline.
• Trade liberalization expanding access to global markets.

Looking at the prices that decrease the most, they’re all technologies. New technologies almost always become less expensive as we optimize manufacturing, components become cheaper, and competition increases. According to VisualCapitalist, at the turn of the century, a flat-screen TV would cost around 17% of the median income ($42,148). Since then, though, prices fell quickly. Today, a new TV typically costs less than 1% of the U.S. median income ($54,132).

We should also consider the larger trends. For example, In 2020, I asked what Coronavirus would do to prices ... and the answer turned out to be way less than expected. If you don’t look at the rise in inflation but instead the change in trajectories, very few categories were heavily affected. While hospital services have increased significantly since 2019, they were already rising. There were some immediate impacts, but they went away relatively quickly. 

Another thing to consider is average hourly income. Since 2000, overall inflation has increased by 87.3%, while average hourly income has increased by 123.3%. This means that hourly income increased 38% faster than prices (which indicates a 16.1% decrease in overall time prices). You get 19.2% more today for the same amount of time worked ~24 years ago. This represents a mild increase in abundance since last year. 

via Human Progress

Although 10 of the 14 items rose in nominal prices over the past 24 years, only five had a higher time price when accounting for the 123.3 percent increase in hourly wages. Those items were medical care services, childcare and nursery school, college textbooks, college tuition and fees, and hospital services. 

The Consumer Experience: Perception vs. Reality

It’s interesting to look at data like that, knowing that the average household is feeling a “crunch” right now.

My guess is that few consumers distinguish between perception and reality. However, feeling a crunch isn’t necessarily the same as being in a crunch.

For instance, we must account for ‘quality of life creep,’ where people tend to splurge on luxuries as their standard of living improves. With the ease of online shopping and access to consumer credit, it has become increasingly easy to make impulse purchases, leading to reduced savings and feelings of financial scarcity. This phenomenon is a function of increased consumption (rather than inflation), yet it still leaves consumers feeling like they’re struggling to make ends meet. Our sense of what’s normal has risen, and that’s hard to unlearn. 

 

Perry’s ‘Chart of the Century’ reveals the complex relationships between inflation, consumption, and economic growth. While households may feel financial strain, the data shows that income has outpaced inflation, and technology has made many goods more affordable. Nonetheless, there is still a real sense of economic struggle. Especially in these last few months. 

 

Economic Patterns: Regulated vs. Free Markets

A clear pattern emerges when examining the relationship between market structures and price trends.

Regulated Markets (like healthcare and education) tend toward higher prices over time, feature less price competition, and offer limited consumer choice.

Free Markets, show price decreases over time, feature greater competition, and provide consumers more options.

This pattern raises important questions about the role of regulation in various economic sectors and the balance between consumer protection and market efficiency.

With that in mind, how can policymakers address sectors experiencing significant price hikes, such as healthcare and education, without stifling innovation in tradable goods and services? 

Future Outlook

Beyond all that, here are three other key trends to watch.

• AI Disruption: Telemedicine and online education could bend healthcare/education cost curves.
• Trade Wars: New tariffs risk reversing tech price declines (e.g., proposed tariffs on Chinese electronics).
• Generational Shifts: Millennials prioritize experiences over goods, potentially easing service demand.

As we continue to innovate and policy changes, it will be interesting to see if we can make essential services as dynamically competitive as consumer electronics. While America is one of the best countries in the world in countless ways, we do lag behind several countries in healthcare and education.

Onwards.

Why Don't We See Aliens?

So, if the math says it's likely that there are aliens ... why don't we see them?

In 2020, I mentioned Israeli officials who claimed they had been contacted by Aliens from a Galactic Federation - and that not only is our government aware of this, but they are working together.

There are many stories (or theories) about how we have encountered aliens before and just kept them secret. Here are some links to things you might find interesting if you want to learn more about this.

• NewsNation Segment: UFO Whistleblower Jake Barber Shares Allegations and Will Testify to Congress About Nonhuman Craft Retrievals.
• NewsNation Segment: UFO whistleblower David Grusch: 'We are not alone.'
• Dr. Diana Walsh Pasulka, Professor of Religious Studies, bridges the gap between religious studies, technological advancements, and the realm of UFO phenomena.
• Trailer for a film called "The Phenomenon."

So, while some may still believe aliens don't exist - I think it's a more helpful thought experiment to wonder why we haven't seen them. 

For example, the Fermi Paradox considers the apparent contradiction between the lack of evidence for extraterrestrial civilizations and the various high-probability estimates for their existence. 

To simplify the issue, billions of stars in the Milky Way galaxy (which is only one of many galaxies) are similar to our Sun. Consequently, there must be some probability that some of them will have Earth-like planets. It isn't hard to conceive that some of those planets should be older than ours, and thus some fraction should be more technologically advanced than us. Even if you assume they're only looking at evolutions of our current technologies, interstellar travel isn't absurd. 

Thus, based on the law of really large numbers (both in terms of the number of planets and length of time we are talking about) ... it makes the silence all the more deafening and curious. 

If you are interested in the topic "Where are all the aliens?"  Stephen Webb, a particle physicist, tackles that in his book and this TED Talk.   

via TED

In the TED talk, Stephen Webb covers a couple of key factors necessary for communicative space-faring life. 

1. Habitability and stability of their planet
2. Building blocks of life 
3. Technological advancement
4. Socialness/Communication technologies

But he also acknowledges the numerous confounding variables, including things like imperialism, war, bioterrorism, fear, the moon's effect on climate, etc. 

Essentially, his thesis is that there are numerous roadblocks to intelligent life, and it's entirely possible we are the only planet that has gotten past those roadblocks. Even if there were others, it's entirely possible that they're extinct by now. 

What do you think?

Here are some other links I liked on this topic. There is some interesting stuff you don't have to be a rocket scientist to understand or enjoy. 

• 75 Reasons We Don't See Aliens 
• Wait But Why: The Fermi Paradox
• A New Theory on Why We Haven't Found Aliens Yet
• A List of Solutions to The Fermi Paradox
• Dissolving the Fermi Paradox, Future of Humanity Institute, Oxford University

To Infinity and Beyond!