Guideposts: Is Your AI Smarter Than an Intern?

You are receiving this email because you signed up to receive our free e-letter Gilder's Guideposts, or you purchased a product or service from its publisher, Eagle Financial Publications. [Gilder Guideposts] [Technology Report]( [Tech Report PRO]( [Moonshots]( [Private Reserve]( Guideposts: Is Your AI Smarter Than an Intern? by George Gilder and Richard Vigilante 12/20/2023 SPONSORED CONTENT [How to Trade Earnings Announcements Like the Pros]( Earnings Season is the best time of year to trade. That's because traders love to trade on earnings announcements, as they tend to result in short-term trades. Plus, Earnings Season trades are virtually immune from overall market volatility. But there are 3 critical strategies you need to know if you're to trade Earnings Announcements like a pro. My new eBook reveals these strategies and more. [Grab Your FREE Copy of The Ultimate Strategy Guide to Trade Earnings E-Book Now]( Abroad is the notion that Artificial Intelligence (AI) is here to replace the human mind. Nonsense. AI cannot substitute for a human mind. What it can do—especially in business applications—is substitute for the mind-numbing. The best, most practical business of AI is to operate on the level of one of your slower interns. Consider One AI, an Israeli company, still private so, alas, out of reach for most investors. The One AI platform, called Studio, allows a non-expert user to create an AI “agent” and then endow it with a selection of some 40 individual skills, each operating independently of the others, but passing results down the line. If you think of creating a Dungeons and Dragons character and buying him a selection of powers, you won’t be far off. Suppose your business has accumulated dozens of hours of recorded sales calls with potential customers. One “skill” will transcribe a call, and other will “outline” it, sorting the conversation into main headings. Another will extract next steps from a transcript and forward them to the right staff person for action. At the high-end, another skill extracts cues that indicate a customer’s inclination to buy, so salesmen can focus on the most promising leads. In short, intern work. [Millionaires Will Be Minted OVERNIGHT]( Legendary tech futurist who predicted the rise of Amazon, Netflix, and Apple YEARS in advance now says: “The biggest, most profitable technological advances in the future will ALL stem from this single breakthrough. Millionaires will be minted overnight.” [He’s revealing EVERYTHING here.]( The common denominator of such tasks is that humans learn them easily. Hand an intern a transcript of 10 customer service calls. Tell him to identify next steps and make sure the info goes to the right staff person. There’s a good chance he will get it right the first time. Hand him 10,000 transcripts and there’s a good chance he’ll quit. The One AI Studio is powered not by a Large Language Model (LLM) such as the one made famous by ChatGPT, but by a small language model. Have you ever had an intern who insists on making his work “meaningful” and even creative. The results can be worse than annoying-spewing inaccuracies. LLMs create the same problems, but at a much greater scale. LLMs like ChatGPT turn out to be much worse than useless for most business applications. LLMs are trained on huge amounts of data, billions upon billions of instances, evaluated across tens of thousands of parameters. Their unnerving goal is to answer questions in ways similar to how such questions have been answered before: thus, all that data is used in training. This training, and the enabled “inference” runs, are what’s causing the world’s data centers to glow in the dark. The goal of these models is not truth but plausibility, to sound convincing on any conceivable topic. Plausible errors are disasters because they are so darn… plausible. Amit Ben, co-founder of One AI, explains the idea of a large language model was to “take the models and blow them up exponentially and push exponentially more information into their training, so they're able to do much more, and to do many different things.” [Ultra-Rich Love These Forecasts Outperforming the S&P]( Since the late-1980s, VantagePoint has continually perfected its artificial intelligence to help you find market reversals (with up to 87.4% proven accuracy.) [Attend Our Live (free) A.I. Market Training >>]( The “amazing” result is that an LLM can do an extraordinary number of tasks for which it has not been explicitly trained and can generate responses “that might be perceived (falsely) as reflecting a deep understanding.” The downside, in addition to the staggering costs, is that these models are black boxes “notoriously hard to control, predict, or verify” The user’s “ability to wrangle it to do something specific is diminished” because we don’t really know how it works in the first place. Consider you are not-the-sharpest-tool-in-the-shed intern; would you complicate the young man’s training by insisting that before he digs into those transcripts he also learns to write poetry or draw his pet goldfish in the manner of Van Gogh, tasks LLMs do happily? What if, to record data from sales calls, your intern first had to master iambic pentameter? What if it were impossible for an employee to proofread a document without first mastering Van Gogh’s brush strokes? No one would ever hire an intern again. Just as no enterprise will replace an intern with a large language model inclined to flights of fancy. Emerging is a simple principle: The training of an AI should not be broader than the training needed by a human to perform the same task. Because a small language model is trained at human scale, it is not only more effective but vastly cheaper to build and use than an LLM. It is just not very bright. Go for very bright, try to make AI into a mind, and that way madness lies. AI can’t do mind, but it excels at the mind-numbing. Sincerely, [The Editors] George Gilder, Richard Vigilante, Steve Waite, and John Schroeter Editors, Gilder's Guideposts, Technology Report, Technology Report Pro, Moonshots, and Private Reserve About George Gilder: [George Gilder]George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives. He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance. George and his team are the editors of Gilder Technology Report, Gilder Technology Report Pro, Moonshots and Private Reserve. About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. Visit Our Websites: - [StockInvestor.com]( - [DividendInvestor.com]( - [DayTradeSPY.com]( - [CoveredCall]( - [MarkSkousen.com]( - [GilderReport.com]( - [BryanPerryInvesting.com]( - [JimWoodsInvesting.com]( - [InvestmentHouse.com]( - [RetirementWatch.com]( - [SeniorResource.com]( - [GenerationalWealthStrategies.com]( - [[YouTube] Visit our YouTube Channel - Eagle Investing Network]( To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to George Gilder's Guideposts. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances. Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company 122 C Street NW, Suite 515 | Washington, D.C. 20001 [Link](