While we have mentioned Mr. Penn in prior posts this recent Newsletter really struck a chord. While listening to his YouTube video as Christopher went deeper into his discussion, complete focus was attained by his subject matter in this Newsletter.
Penn, in his words, has been using Generative AI for over a decade in one form or another. Clearly most of the forms that he’s been using were not mainstream … but given his complete knowledge of the subject matter and his fondness for AI the subject matter of this post was stunning!
If you find this interesting it’s certainly worth a listen to his entire Newsletter/Video/podcast .. links to the email transcript and here to the video there’s just too much digest to get into all of the details …bt we wanted to hit the high points …. so lets go!
Intellectual Property – Moreover the lack of acknowledgment at all !
For years, there’s been an ongoing battle between intellectual property holders – and that’s all of us who create content (like this newsletter) – and AI model makers. The general substance of each side is that creators say AI infringes on their intellectual property rights because they were not compensated for the use of their data in the creation of AI models.
– For the record copyright free images are a favorite!
Resource Cost – AKA Energy and other consumable use
AI consumes a lot of resources – electricity and fresh water in particular. OpenAI’s new experimental model, o3, consumes more electricity for a high efficiency task than an entire single family home uses in 3 days. For its low efficiency tasks, it consumes more electricity than a single family home uses in a year and a half.
– Penn’s solution – Do not run the full model unless needed, download to your device and it minimizes usage!
Labor Dislocation – AKA Loss of jobs – Eating the most plentiful jobs first
AI is displacing wages and as the technology improves, it will displace entire jobs, from the bottom up. By that I mean the jobs AI will consume first in their entirety are entry-level jobs, jobs that require the lowest levels of skills and experience.
Enabling Bad Actors and Network States – Too few get too powerful and take control
The first and most significant consequence is convincing everyone to use AI all the time, for everything, thus adding a basic tax on…
If generative AI systems are the default source of information for people and we don’t know what their biases are – intentional or otherwise – we will let them condition our thinking.
When a human does work, a human is paid wages. Those wages then are spent in the broader economy, from food to rent to enjoyable pastimes.… When a machine does work, the company owning the machine is paid instead, but the scale of labor is very different.
the Network State. – Careful here this can get pretty dark!
– Terminator stuff here!
Have a Great “AI Downsides Reviewed” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI generated the splash picture. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
