OpenAI at Three Years: A Financial Planner's Perspective on Progress, Potential, and the Preservation of Values

In November 2022, OpenAI was still a relatively nascent organization, its potential whispered about in tech circles but not yet fully grasped by the wider world. Today, as we look back at this date, the landscape has fundamentally shifted. OpenAI, and the broader AI revolution it ignited, has touched nearly every facet of our lives, including the way we think about money, work, and the future.

The Reaction: A Mix of Awe and Anxiety

The initial reaction to OpenAI's advancements, particularly the release of more sophisticated language models, was a potent cocktail of awe and anxiety. On one hand, the possibilities seemed limitless – automated tasks, personalized education, breakthroughs in scientific research. On the other, questions arose about job displacement, the spread of misinformation, and the very nature of human creativity and purpose.

As a financial planner, I witnessed these anxieties firsthand. Clients, already navigating complex financial decisions, now grappled with the uncertainty of a rapidly changing job market. “Will my skills be obsolete in five years?” “Should I invest in AI, or is it a bubble?” “How can I prepare my children for a future dominated by algorithms?” 

The initial surge of interest in AI investment opportunities was also noticeable. People were eager to capitalize on the potential, but often lacked a clear understanding of the risks involved. 

The Potential: A Catalyst for Progress

Despite the anxieties, the potential benefits of AI, driven by OpenAI's innovations, are undeniable. In finance, AI is already being used to detect fraud, personalize investment advice, and streamline tasks, ultimately leading to greater efficiency and accessibility.

Beyond finance, AI holds the promise of solving some of the world’s most pressing challenges, from climate change to disease eradication. This potential for progress is not just about technological advancement; it's about creating a more equitable and sustainable future for all. 

The Current Landscape: Integration and Adaptation

Today, we're no longer in the realm of hypothetical possibilities. AI is being integrated into various aspects of our daily lives. Businesses are leveraging AI to improve customer service, optimize operations, and develop new products and services. Individuals are using AI-powered tools to manage their finances, learn new skills, and connect with others.

The financial planning industry has also adapted. We're using AI to analyze market trends, personalize financial plans, and provide more efficient client service. However, the human element remains crucial. Building trust, understanding individual values, and providing emotional support during times of uncertainty are all things that AI cannot replicate. AI can design, engineer, and operate so many facets of our world, but where does it get its spark?

Who Knows the Future, But Here's What We Know Now...

Predicting the future is a fool's errand. However, we can identify certain trends and challenges that will shape the future with AI:

• Increased regulation: Governments will likely implement stricter regulations to address concerns about data privacy, algorithmic bias, and the ethical implications of AI.
• Focus on Explainable AI (XAI): As AI becomes more complex, there will be a growing demand for transparency and explainability. People want to understand how AI systems make decisions, especially when those decisions impact their lives.
• The rise of specialized AI: We'll see a shift from general-purpose AI to specialized AI systems designed for specific tasks and industries.
• Ethical considerations taking center stage: As AI becomes more powerful, ethical considerations will become paramount. We'll need to address questions about AI's impact on society, the environment, and the future of work.

Internal and External Limitations: Authenticity, and Power

Despite its incredible progress, AI still faces significant limitations that we must acknowledge and address:

• Maintaining Authenticity in an Age of Synthetic Content: One critical limitation lies in AI's ability to truly understand and replicate human emotion. As the Scientific American article, "The Human Brain Operates at a Stunningly Slow Pace," points out, our bodies sensory functions operate 100 million times faster than we can make decisions. To put it another way, we feel at 100 million times faster than we think. The human brain processes information at a pace that is far slower than a computer, by allowing for deeper reflection and emotional processing. This gap highlights the risk of AI-generated content lacking the nuance, empathy, and genuine understanding that come from lived experience.

  • Implication for Clients: As a financial planner, this means that while AI can provide valuable insights and automate certain tasks, it cannot replace the human connection that is essential for building trust and understanding clients' deepest values. We must be vigilant in preserving authenticity in our interactions, ensuring that our advice is rooted in genuine empathy and a deep understanding of each client's unique circumstances.

  • Human-centric AI models:  While startups like humans& positions itself as a human-centric lab dedicated to transforming AI into "connective tissue" that fosters trust, skepticism remains regarding whether an algorithm can truly replicate the vulnerability required for deep emotional bonds. Critics often argue that genuine empathy stems from shared human experience and mortality, qualities that even the most advanced models may simulate but never authentically possess compared to a living, breathing person.

• Power Constraints and Environmental Impact: The exponential growth of AI is placing increasing demands on our energy infrastructure. Data centers, the backbone of AI development, consume vast amounts of electricity, contributing to concerns about power grid stability and environmental sustainability.

  • Implication for AI growth: Not only must we consider the environmental impact of AI and advocate for sustainable practices within the industry we need to be aware of AI's increasing consumption of a limited amount of energy supply. Companies should prioritize energy efficiency, diversify their energy sources, and educate more about the impact each prompt or token created has on the power grid. Additionally, the increasing energy demands could result in increased costs being passed to the consumer.

The Path Forward: Embracing Change, Upholding Values

The three-year journey of OpenAI has been nothing short of transformative. As we look ahead, it's crucial to embrace the opportunities that AI presents while remaining mindful of its limitations and potential risks.

As financial planners, our role is to guide clients through this period of rapid change, helping them navigate the complexities of the financial landscape while staying true to their values. This means:

• Staying informed: Continuously learning about the latest developments in AI and their potential impact on the financial industry.
• Providing personalized advice: Tailoring financial plans to meet each client's unique needs and goals, taking into account the changing economic landscape.
• Upholding ethical standards: Adhering to the highest ethical standards in all our interactions, ensuring that our advice is always in the best interest of our clients.
• Embracing Stewardship with Compassion: As financial planners, we are entrusted with a profound responsibility – to act as stewards of our clients' financial well-being. This goes beyond simply guiding them to make informed decisions; it requires ongoing compassion and understanding throughout their financial journey. Life is unpredictable, and our clients will inevitably face challenges and setbacks along the way. It is our duty to provide unwavering support, offering empathy and guidance during difficult times, and celebrating their successes with genuine joy. This principle of stewardship, rooted in compassion, is the foundation of a truly meaningful and impactful financial planning relationship.

The future is uncertain, but one thing is clear: AI will continue to shape our lives in profound ways. By embracing change, upholding our values, and prioritizing the human connection, we can navigate this new era with confidence and create a future where technology serves humanity, not the other way around.