Today, I share three practical AI adoptions we might see over the next decade⦠[RiskHedge Report] Would you talk to a dead relative? On May 11, 1997, Garry finally lost. Garry Kasparov, the greatest chess player in historyâwho hadnât lost in 15 yearsâwas defeated by IBMâs artificial intelligence (AI) Deep Blue. Deep Blue eked out the win, 3 ½ to 2 ½. Man and machine were roughly evenly matched. But do you know whatâs happened to AI chess bots since then? Today, Stockfishâthe best chess AIâwould demolish the greatest human chess player in history, Magnus Carlsen. Itâs almost alarming. Stockfish is Michael Jordan, and Carlsen is a toddler. Iâm serious. The difference between Stockfish and Magnus is roughly the difference between Magnus and meâand I rarely play chess. Iâm telling you this because, as you read this, I want you to keep in mind: [This is the WORST artificial intelligence is ever going to be.]( - Do we still have a long way to go with AI? Yes. For example, there are all kinds of problems with ChatGPTâthe AI tool weâve written about at length since its debut late last year. The chatbot, which can have human-like conversations, became the fastest-growing product in history. But it talks like a San Francisco liberal. Itâs often flat-out wrong. And itâs politically motivatedâquick to write a glowing poem about Joe Biden but banned by its creators from doing the same for Donald Trump (and thatâs only the tip of the iceberg). But flawed as it may be⦠ChatGPT is at the start of a trajectory that will change the world. Longtime readers know Iâm an optimist. [Especially when it comes to AI.]( Instead of focusing on what could go wrong with AI, I ask: âWhat applications could AI be used for that will improve and innovate our lives?â So here are three practical AI innovations we might see over the next decade⦠#1: AI will let you talk with deceased relatives. Ever watch Netflixâs sci-fi series Black Mirror? In one episode, a husband is killed in a car accident. His widow learns of a new service that lets you chat with deceased relatives. The tool learns how the husband talked by analyzing text messages, video footage, and social media history. A start-up called HereAfter.ai developed an app that lets you chat with an interactive avatar of deceased relatives, trained on their personal data. You should also check out [podcast.ai](. It created new conversations between Joe Rogan and the late Steve Jobs, among others. The creative possibilities are endless. #2: AI will win a Nobel prize⦠an Oscar⦠and get on The New York Times Best Seller list. Machines have already surpassed man at many tasks. Computers can beat most humans at speech and image recognition, reading comprehension, and language understanding. 2022 was the year computers got creative. Now, they can create lush images or write poems in the style of Dr. Seuss. In the next decade, weâll read a bestselling novel written by an AI⦠or watch an Oscar-winning film produced by a machine. Long-time RiskHedge readers know [AI systems can already detect cancer at higher rates than human doctors](⦠and are discovering new types of drugs. Itâs only a matter of time before AI leads to a major medical breakthrough and a system is awarded the Nobel Prize for medicine. #3: AI will personalize everything. Amazon (AMZN) recommends new products based on your previous orders. Facebook (META) shows you content related to what youâve âlikedâ in the past. Watch one crime documentary on Netflix (NFLX), and itâll show you 10 more. A lot of our content is already personalized. But I believe AI will lead to the âpersonalization of everything.â It will become an expert doctor in your pocket who can warn about an irregular heartbeat⦠a tutor who knows the best way to teach you based on your strengths and weaknesses⦠or a fashion brand that recommends a new wardrobe by combing through your camera roll. AI recommendation engines will get so good theyâll be able to anticipate your wants and desires before you even know them. - AI is no longer ânerd techâ confined to university research labs. Itâs a new megatrend transforming the worldâs largest, most valuable companiesâand our way of life. If you want to have any hope of becoming a successful investor in the 2020s and beyond, you simply must pay attention to this trend. As investors, this means we want to add companies to our portfolios that are helping move this new technology forward. Longtime readers know Nvidia (NVDA) is one of my favorite ways to play the current AI boom. Its high-performance GPUs are ideal for âtrainingâ machines to think like humans. [I first recommended this company back in 2018.]( Since then, NVDA has soared 547%. NVDA has been the hottest stock on the market all year. Itâs priced to perfection right now⦠so I wouldnât go rushing all-in if you donât own it yet. But itâs a rare stock I believe every investor should own at least a little bit of. The AI trend is just getting startedâand buying Nvidia is the simplest and most direct way to play it. Stephen McBride
Chief Analyst, RiskHedge In the mailbag... We recently received this nice note from Daniel, whoâs been enjoying reading RiskHedge: âI subscribe to RiskHedge and want to say I enjoy your recommendations more than any other source. I subscribe to several others, such as Luke Lango and Stansberry Digest. I donât pay much attention to their advice because their advice is usually in the form of a podcast, which might require 30 minutes or more of viewing time. I get these several times per day and donât want to invest that much time in studying up on investments. I like your emails in that I can read them in three minutes or less, and you usually give one or two recommendations. This is exactly what Iâm looking forârecommendations I can go to my Fidelity app for, see what other analysts are saying about what you suggest, and make a decision for my portfolio. So donât change a thingâjust keep up the good work.â âDaniel Suggested Reading... [Follow Stephen
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