3rd Quarter 2024

It’s amazing how quickly time flies. I feel like it was just yesterday Melissa and I were pushing our twins around town in their double stroller, and now, a few months ago, we celebrated their promotion from middle school. I remember telling myself when my babies enter high school, I would be officially “old.” Well, I guess I am now officially old!

With all this age does comes some wisdom, I assume. Cassidy recently asked me what I would change if I could go back to the day she was born. I told her I wouldn’t change anything. I am very content with my life. I feel like I have lived it with passion, fun, integrity and love, and I hope you feel the same way about your life.

As you already know, I am an avid reader. Currently, I am reading a book called “The Coming Wave” by Mustafa Suleyman. The book does a deep dive into the topic of Artificial Intelligence. It talks about all the benefits of this new technology, as well as the potential catastrophic outcomes that could occur if left unchecked.  I highly recommend you check out this book if you have any interest in artificial intelligence and the effect it will have on our future. Since we are on the topic of Artificial Intelligence, I thought it would be fun to allow ChatGPT (a large language artificial intelligence model) to explain to us what artificial intelligence is and how it will affect business in the future:

Artificial intelligence (AI) refers to the development of computer systems that can perform tasks typically requiring human intelligence. These tasks include learning from experience, understanding natural language, recognizing patterns, making decisions, and solving problems. AI can be broadly categorized into two types:

• Narrow AI: Specialized in a single task, such as voice recognition or playing chess.
• General AI: Hypothetical AI that possesses the ability to perform any intellectual task that a human can do.

How Can AI Help Companies and People?

1. Automating Repetitive Tasks: AI systems can automate tasks that are routine and time-consuming. For example, in a business setting, AI can automate data entry, manage schedules, or process transactions. This not only reduces human error but also allows employees to focus on more strategic and creative activities.
2. Enhancing Customer Service: AI-powered chatbots and virtual assistants can handle customer inquiries around the clock. These systems use natural language processing (NLP) to understand and respond to customer questions in real-time. They can resolve common issues, provide information, and even guide customers through processes like booking services or troubleshooting problems, improving overall customer satisfaction.
3. Analyzing Data: One of AI's most powerful capabilities is its ability to process and analyze vast amounts of data quickly and accurately. Machine learning algorithms can identify trends, correlations, and patterns within the data that might be missed by human analysts. For businesses, this means better decision-making based on data-driven insights. For example, AI can predict consumer behavior, optimize supply chains, and enhance marketing strategies by targeting the right audience with personalized content.
4. Personalizing Experiences: AI algorithms can analyze user behavior and preferences to deliver highly personalized experiences. Online platforms like Netflix, Spotify, and Amazon use AI to recommend movies, music, and products based on what you have previously watched, listened to, or bought. This personalization not only enhances user satisfaction but also drives engagement and sales.
5. Improving Security: AI plays a critical role in enhancing cybersecurity. It can detect anomalies and potential threats by analyzing patterns in network traffic and user behavior. For instance, AI systems can identify fraudulent transactions in real-time by recognizing deviations from normal spending patterns. This proactive approach helps in preventing security breaches and protecting sensitive data.
6. Supporting Healthcare: In the medical field, AI is transforming diagnostics and treatment. Machine learning models can analyze medical images, such as X-rays and MRIs, to detect diseases like cancer with high accuracy. AI can also predict patient outcomes based on historical data, helping doctors create more effective treatment plans. Additionally, AI-powered systems can assist in managing patient records, streamlining administrative tasks, and even discovering new drugs by analyzing chemical compounds and biological data.
7. Enabling Smart Devices: AI is at the heart of smart home technology. Devices like Amazon Echo and Google Home use AI to understand and respond to voice commands, control smart home appliances, play music, set reminders, and answer questions. AI also powers smart thermostats, security cameras, and other home automation systems, making everyday tasks more convenient and efficient.
8. Optimizing Operations: For industries such as manufacturing and logistics, AI can optimize operations by predicting equipment failures, optimizing maintenance schedules, and improving supply chain management. This not only reduces downtime but also increases productivity and reduces costs.

By integrating AI, companies can gain a competitive edge through improved efficiency, accuracy, and customer satisfaction. For individuals, AI offers enhanced convenience, personalized experiences, and better security, making daily life more manageable and enjoyable.

There is fear that AI will replace many jobs in the future, and I happen to agree with this. How can a human possibly compete with an all-knowing system? How can a human translate their native language into 50+ others within a split second? How can a human read millions of lines case law and come up with a legal opinion in seconds? It’s just impossible and that is why humans will need to retrain themselves to perform jobs an all-knowing computer cannot perform. We shall see if we can.

Thank you for your trust and confidence in our services. We are dedicated to helping you achieve your financial goals and look forward to continuing our partnership.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.