How Ai Is About To Transform The World’s Economy

there's a lot of questions here and now we get into the questions of Science Fiction I'm sure the three things I've named are happening because that work is happening now but at some point these systems will get powerful enough that you'll be able to take the agents and they'll start to work together so there is one technology out there that promises to change our lives forever and that technology is ai ai ai ai ai ai refers to the simulation of intelligence in machines that can think and learn but you do believe it's going to change the world I believe it's going to change the world more than anything in the history of mankind more than electricity it's already in our smartphones it's in Tesla's full self-driving it's already allowing non-musicians to create music nonv videographers to create cinematic videos it can create apps and websites come up with recipes do your taxes analyze complex data and make predictions and pretty soon it promises to dream up new cures and drugs for diseases all by itself and thanks to a video from Jeff Sue that I recently watched I just learned that artificial intelligence is actually an entire field of study all by itself just like physics and within artificial intelligence as a study there's a subfield called machine learning in the same way that thermodynamics is a subfield within physics and within the field of machine learning there's something called Deep learning which can be broken down into discrimin itive models generative models and language learning models tools like Chad GPT and Google's Gemini are a combination of language learning models and generative models and this industry is becoming extremely valuable altogether Fields like Ai and Robotics are expected to add around $15.7 trillion to the global economy by the year 2030 but it can also cost as many as 50% of jobs to be lost to automation some people think AI is about to transform our Liv lives mostly for the better and then there's some people that think this is just another marketing gimmick by the corporations to artificially inflate their stock prices by promising us a technology that's actually really far away now what I think is most interesting though is what the former CEO of Google just said about it in an interview and he said that in 5 years time we'll create what are called agents and those agents will be able to talk to other agents at which point when we don't understand what we're doing you know what we should do pull the plug literally unplug the computer and I just want to know what happens to the idea of investing if just a handful of companies come together to consolidate and end up running the entire world with this technology what happens to the global stock market that's what I want to help explain in today's video and a whole lot more and show you what I think is really going on so with that said let's get into it hi my name is on J hope you're doing well come for the finance and stay for AI um you know I think AI will probably like most likely sort of lead to the end of the world but in the meantime all right so I think artificial intelligence is extremely misunderstood so first I want to explain exactly how the technology works and I want to give credit to Jeff sue for making an amazing breakdown of this I'll leave a link to his video down below now at the center of artificial intelligence is something called machine learning which is actually pretty simple all it does is it takes a bunch of data and it trains a program to create a model once it creates a model you can give it a completely new set of data and with it the model will be able to find patterns and make predictions I predict that if I do enough card tricks you might subscribe someday never mind I need new data now there's two different kinds of models in machine learning there's supervised models and unsupervised models supervised models use data that is labeled and the example Jeff shows in his video is how much someone might leave a tip for depending on the order if it was picked up which are the blue dots or delivered which are the yellow dots if you have both sets of data and each is labeled you can make predictions about the next order so when you get another order depending on what type it is the model will be able to predict the tip or vice versa pretty easy now an unsupervised model works the exact same way but it uses data that's not labeled and this is how we can predict someone's career trajectory based on income versus time so if we take the amount of years someone spends at a given job versus what their income is at any given time even though the data is not labeled meaning we don't know much about the person or their job title what this model can do now is make predictions if for example someone works for a company for a short amount of time but they have a higher income chances are they'll be on the fast track to success but if their income falls in the second half below a certain threshold in relation to the years they've worked then they're not basically unsupervised models take a huge amount of unlabeled data and they try to find new patterns but within machine learning there's also a special learning process and it's called Deep learning it uses a different method that's trying to simulate the human brain using artificial neural networks all right so here's my silly analogy deep learning takes a small amount of data that's labeled and it applies it to a huge amount of unlabeled data so in John's original example A Bank might use deep learning to figure out which of its transactions may be fraudulent since a bank can't look at every single transaction that people make instead it can label a smaller set of transactions is fraudulent or not and then using that newly trained model it can organize the rest of the data automatically and that's deep learning and banks are using this technology right now and I think the most interesting technology that AI is working on today something that we're about to have in our lives pretty soon is something called the agents A Smith agent Smith I wish I was joking but I'm Not So speaking of harnessing the power of AI I'm super excited to announce the partner of today's video that's making waves in integrating AI into everyday Tech Asus and their new Asus Viv book S15 the Asus Viv book S15 is the inaugural Asus NextGen AI PC featuring Cutting Edge AI capabilities that I found incredibly useful I've been able to enhance my productivity and efficiency with the 45 wat qualcom Snapdragon X Elite processor which has handled even the most demanding tasks and it's been a GameChanger it has features like AI enhanced connectivity it has full I/O ports including USB 4 USB 3 HDMI 2.1 a Micro SD card reader and audio jack for connectivity anywhere it has a 70w hour battery that can last up to 18 hours it's super slim at just 0.58 in and it comes in at a little over 3 lb but my favorite features are the AI driven co-pilot key and the RGB keyboard with just the click of a button the Asus via book S15 becomes an instant AI powerhouse it's like having a personal assistant at my fingertips all the time the live caption feature for example translates Zoom calls in videos automatically in real time co-creator allows me to draw whatever I want and brings it to life with AI images and windows Studio Effects improves my lighting and blurs out my background during video calls Asus two-way AI noise cancellation also isolates my voice when I'm in my zoom meetings and AI powered visuals look amazing on the 3K 120hz Asus Lumina OLED display with an 89.4% screen to- body ratio for an immersive experience the Asus Viva book S15 combines AI with Elegance intelligence and incredible performance this is my first Asus co-pilot plus PC and I'm super excited to integrate AI into my everyday life into a laptop that I can carry with me anywhere so thank you Asus for sponsoring this segment of my video the product link is down below and now let's get back to it now this next part is where AI becomes science fiction becomes reality it's really exciting but it's also kind of scary let me show you an interview with Eric Schmidt the former CEO of Google he said there's three things happening right now that will profoundly change the world the context window agents and text to action the first one is the context window the context window refers to how much text an AI can keep in mind or reference at any given time so when we ask it a question it understands what we mean and it can build on top of it and this year people are inventing a context window that is infinitely long and this is very important because it means that you can take the answer from the system and feed it in and ask it another question let's say I want a recipe to make a drug or something they say what's the first step and it says buy these materials so then you say okay I bought these materials now what's my next step and then it says buy a mixing pan and then the next step is how long do I mix it for you see it's a recipe that's called Chain of Thought reasoning and it generalizes really well we should be able in 5 years for example to be able to produce a thousand step recipes to solve really important problems in science in medicine in Material Science climate change that sort of thing now the second profound change is the creation of the agents now agents are just models that specialize in very specific data an agent can be understood as a large Lang anguage model that knows something new or has learned something so an example would be read all of chemistry learn something about chemistry have a bunch of hypothesis about chemistry run some tests in a lab about chemistry and then add that to your agent these agents are going to be really powerful and it's reasonable to expect that agents will be not only will there be a lot of them and I mean Millions but there'll be like the equivalent of GitHub for agents there'll be lots of lots of Agents running around so just imagine that these agents are experts experts in medicine law Athletics nutrition any industry and all the knowledge that we possess about it will be condensed into these agents that people can just use and talk with and then there's the third profound change which is text action and that's asking these agents to do whatever it is people want and they will do this in the cloud in the background 24/7 you add it all up though and you get something that looks kind of like science fiction can you imagine having programmers that actually do what you say you want and it does it 24 hours a day and strangely these systems are good at writing codes such as language like python you put all that together and you've got infinite context window the ability for agents and then the ability to do this programming now this is very interesting what then happens there's a lot lot of questions here and now we get into the questions of Science Fiction I'm sure the three things I've named are happening because that work is happening now but at some point these systems will get powerful enough that you'll be able to take the agents and they'll start to work together right so your agent and my agent and her agent and his agent will all combine to solve a new problem at some point people believe that these agents will develop their own language it's really a problem when agents start to communicate in ways and doing things that we as humans do not understand that's the limit in my view so it's exactly when these agents start collaborating with each other and saying things that we don't fully understand is when we should stop this whole experiment but also kind of sounds like science fiction that's so far away so my question is how many decades away is this really a reasonable expectation is we'll be in this new world within 5 years wow not 10 and the reason is there's so much money I think there's every reason to think that some version of what I'm saying will occur within 5 years and maybe sooner now that you kind of understand how this technology Works how it reasons and how fast it's growing and exactly when we'll be living in The Matrix let's talk about some of the real world challenges of this technology and what it will actually do to jobs so not everyone agrees EX exactly how many jobs will be lost or created but let me share with you some numbers that have come out from a lot of different studies the world economic forum for example which is where global leaders come together every year estimated that Ai and automation will displace more than 85 million jobs by the year 2025 and according to MIT and Boston University AI will replace as many as 2 million manufacturing workers by 2025 as well the McKenzie Global Institute report reported that on a worldwide level 14% of the entire population of Earth will have to change their careers at some point and 87% of companies have admitted that they have a skills Gap when it comes to AI technology and it's not just all these random studies and corporations saying all of this it's also an agency from within the United States government the Bureau of Labor Statistics is reporting that between 40 to 50% of jobs will be automated in just a couple years so a lot of jobs will go away and unfortunately people are just not prepared for it the incomes that will be affected most are the white collar jobs that make $8,000 a year according to nexford University and the jobs that will be most affected by this are people in customer service receptionists accountants bookkeepers salespeople research and Analysis warehouse work Insurance underwriting and people working within retail in other words jobs that are either physically or mentally repetitive especially ones where you have to make a decision based on analyzing some set of data or some numbers but there will also be new jobs that will be created like AI managers because you can't lose your job to AI if your job is to manage AI but even those people could lose their jobs thanks to agents whose specialty might be to manage other agents and AI systems but the good news is that same world economic Forum study also predicted that 97 million new jobs will be created so if you're still still in school the jobs I think that will be safest are in the trades like plumbers electricians mechanics Engineers Barbers landscapers trainers teachers and performers but don't be a performer unless you have no choice like me complex manual labor won't be replaced until we have a breakthrough in robotics and then it would have to become so cheap that it makes more economic sense to replace the workers with robots but that probably won't happen soon because we just don't have the technology to do that yet and what we do have is super expensive which also means people in the civil services like police officers and firefighters will be safe as well as people in the medical industry like doctors nurses veterinarians lawyers and unfortunately the politicians will be safe as well now the most profound question that I personally have is what does this technology mean for the idea of investing when we invest we put our money into companies that use it to solve the global problems of today they create new technologies and products that will help us which in return makes them more profitable and their stock prices go up and it makes us money but what happens when the last creation we ever need to make becomes reality what happens if just a couple corporations band together and use their technology and these AI agents to be able to solve any problem that they want at that point do we really really need thousands upon thousands of specialized companies solving all these different problems or does the stock market consolidate into a handful of companies that become a lot more valuable than the rest I have a tinfoil hat theory that the stock market thinks that's exactly what will happen and why I think this is because last year there was a headline that the top seven tech stocks returned 92% for the entire stock market's performance and today out of the top 500 companies the top 10 accounted for 27% of the index now some years that number is lower but some years it's even higher but over the long term that number has been growing 10 years ago for example the top 10 companies represented just 14% of the index roughly half of what it is today just to put all this in context for every $100 I put into the S&P 500 Index 27 of that 100 goes towards these top 10 stocks the other $73 gets shared amongst $490 stocks which is kind of interesting so it seems to me that the stock market is making this prediction that this is what's going to happen potentially in the future which is why so much of this money is being concentrated in the top 10 presumably because they have the best chance of figuring it all out so taking all of that into context the question is should I just sell everything thing and then chase the top 10 stocks and for me personally no the answer is I'll continue to dollar cost average into the index because presumably if the market consolidates into fewer and fewer companies if my theory is correct and in the future there will be less stocks to pick from than there is today then the S&P 500 Index by design should figure out how to adjust for it by allocating the money in different ways proportionally to these companies successes that's why for me diversifying is the best way to go but buying individual stocks is a lot more risky especially with the pace of ai's development of course some people also say that it's all just hype in marketing that these companies are running out of data to train these models on and it's just a way to boost their stock prices and based on all the things that I've seen I don't think that's the case but I don't know that's why I diversify but I'd love to hear your thoughts I hope you have have a wonderful rest of your day smash the like button subscribe if you haven't already don't forget to grab your free stocks links are down below and I go track them automatically with a spread sheeet link Down Below in my patreon thank you so much for watching this video I'd love to see you back here next week I'll see you soon bye-bye [Music]

Channel: Andrei Jikh

Views: 99,897

Keywords: how to invest, bitcoin, million, ethereum, market crash, crypto, stock market, passive income, dividend investing, dividends, dividend stocks, crypto crash, stock market crash, bitcoin crash, NFT, how to buy bitcoin, cryptocurrency, robinhood app, best trading app, stocks, investing, investing for beginners, how to invest in real estate, how to invest in stocks, best stock trading app, credit score, andrei jikh, best investment, dogecoin, robinhood, portfolio, millionaire, recession

Id: Aj9irFyFOxY

Length: 19min 18sec (1158 seconds)

Published: Mon Jul 15 2024