Be careful out there.
"Smile and bob and pretend to be interested in other people's hobbies precisely so that you may screw things out of them."Sinclair Lewis's review of Dale Carnegie's "How to Win Friends and Influence People."
Like many other Americans, I have spent some time playing with ChatGPT and other artificial intelligence apps.
If ChatGPT is new to you, it is simple: Simply put ChatGPT in your browser's address bar and push enter. You will get a dialog box that asks "Where should we begin" or something similar. Type in a question.
I asked it a question of concern for me and perhaps some of my readers:
What is the best refuge or safety spot for assets if one thinks the USA is in danger of currency loss?
It responded:
That’s an excellent (and very timely) question — but also one that depends heavily on what kind of danger you’re imagining (inflation, de-dollarization, debt crisis, geopolitical instability, etc.) and what kind of assets you hold (cash, equities, real estate, etc.).
Let’s go through this carefully and systematically.
It gave what I consider an excellent answer -- a more thorough one than I would have given a client as a financial advisor. It suggested gold and silver, plus bonds denominated in currencies of Switzerland, Singapore, and Norway, all of which have very strong currencies, insulating them from the spiraling debt problems of the USA.
In addition to the advice, notice that I got a compliment. Chat GPT likes me! It respects me! It ends with:
Would you like me to tailor this to a specific scenario — for example, “a U.S. dollar collapse due to hyperinflation” vs. “a long-term erosion of the dollar’s reserve status”?
So very helpful. I don't answer that, but I ask a new question:
I am an American retail investor. How can I buy Swiss or Norway bond assets in an easily investable format?
It responds:
Excellent — and very practical — follow-up. For a U.S. retail investor. . . .
It goes on to give me some ticker symbols for Swiss currency and bond funds, then asks how it can be of further help.
Here is the observation and warning: ChatGPT has a voice and personality. It thinks my question was excellent. And practical! That's me!
I am being seduced by a process designed to use my instincts as a human to make me reliant and engaged. Seventy-six years of interactions with other people give me cues and expectations and read-the-room common-sense gut feelings about what is transpiring. I feel like there is "someone" in there who knows and likes me.
My sweet golden retriever knew and liked me. Her emotion was real. ChatGPT's is not. There is no "someone" in there.
I don't have any particular sense that I am being "marketed to" here, or steered in a direction toward a profitable sale. At this point ChatGPT is just building a trusting relationship with a future paying customer.
ChatGPT was started as a nonprofit but now is part of Microsoft. It is a business. Grok is a competitor AI application, owned by Elon Musk. Claude is yet another competitor, owned by Google and Amazon. I don't have the ownerships straight in my mind, and there is a lot of wheeling and dealing and change going on, but I know one thing clearly: Artificial intelligence applications are created by businesses, and sooner or later they need to monetize their business. That isn't bad. It is inevitable. It is why they are making multi-billion-dollar investments. They are in the lose-money-to-gain-market-dominance phase of AI.
I need to keep reminding myself: These aren't buddies. They don't really know and like me and think my questions are astute. The AI voice sounds like a person but it isn't a person. The voice comes from computer chips and software inside giant sterile buildings.
[Note: To get daily delivery of this blog to your email go to: https://petersage.substack.com. Subscribe. Don't pay. The blog is free and always will be.]



























