Within the past eight months or so, there’s been so much chatter, conjecture, speculation, optimism, and fear regarding AI tools. The modern AI tools that the public can access, specifically chatGPT, have gained many users who wish to find quick, simple, and well-curated answers to their needs. Admittedly, I did not see a tool such as chatGPT being publicly available and so heavily used in 2022/2023; I don’t think anyone did! It’s an impressive machine. But, it’s not the silver bullet solution like some are making it out to be. Let me explain why. 

ChatGPT is an AI-powered language model developed by OpenAI, capable of generating human-like text based on context and past conversations. 

AI Today – The Ultimate “Language Prediction Machine”

For decades, if not closer to a century now, sci-fiction stories across all types of media have portrayed what it would be like if machines/computer systems understood they could replace us as the dominant species on the planet, and of course, for dramatic effect, it’s easiest for them to simply enslave us or wipe humanity out to accomplish this task. There are some great pieces of fiction on this subject from Isaac Asmarv’s classic. “I, Robot” to James Cameron’s early 1990’s masterpiece, Terminator 2: Judgement Day. So, it’s easy to see why when something like ChatGPT presents itself to the public, our imaginations run wild with excitement and fear, imagining all the future outcomes. 

I am not an authority on computer language/programming/development or AI in any shape or form, but I do feel I have a good grasp on how this technology works after some research of my own. Personally, I don’t think we have anything to worry about, whether it’s AI tools replacing jobs or metal endoskeletons coming to kill us. 

ChaptGPT is not a conscious being trapped inside a computer; it’s a highly complex language prediction model. The engineers who built ChatGPT did so based on the core goal of having the model replicate human language, regardless of question or prose, as accurately as possible. In very basic, probably oversimplified terms, it accomplishes this by combing the internet (every page, everywhere) and reconciling what words come after the next via a percentage of likelihood. After years and years of refinement and free beta testing on us users, ChatGPT has gotten pretty good at this language prediction trick. 

Currently, ChatGPT is not sentient; it’s not feeling, creating, or providing critical thought; it’s using “likelihood” to predict what should come next. 

If you’re interested, this is a great computer-science-focused YouTube profile that explains it in a more technical way than I ever could. 

AI for Finance – Asking the Right Questions

Of course, my profession as a family financial planner and experience in Boston wealth strategies inevitably have come into question as to whether or not I can be replaced by an AI tool. It’s more than just financial planners coming into question; I feel like everyone I know in all different job types has gotten the question, “Can AI do what you do?” I can confidently say that neither ChatGPT nor Google’s AI tool can do what I do. 

Financial planning is as much an art as a science; it’s an art of understanding people, families, relationship dynamics, and human nature. Anyone can punch a prompt into ChatGPT saying, “Should I get a 401k?” or “What type of mutual fund is good for someone in their 40s”? The tool will produce a polished answer based on what it’s observed online before, predicting the words that should come next with great accuracy. But this may not be the right answer for your needs and unique circumstances. 

Most professionals in any field know that prescribing a one-size-fits-all solution may lead to headaches because the time wasn’t taken to deduce whether or not the questions and requests were the correct ones to ask in the first place. The discovery phase is how any business accurately assesses what a client is asking/needs. 

The Puzzle of Financial Planning

I have become successful with my family financial planning work because I take the time to understand the ins and outs of the entire family tree when I work with my clients. If someone could just ask me any financial question, and I didn’t take the time to help ensure they are asking the RIGHT questions, chances are what I would tell them wouldn’t meet their needs. 

Financial planning is like a puzzle that I have put together 100’s of times, and once I recognize a few pieces, I can start figuring out possible solutions. I tend to know the questions you should be asking before you ask them, and I proactively bring issues/opportunities to your attention. Of course, you can Google a 2023 HSA contribution limit, but should you prioritize that over your Roth IRA? It wouldn’t be too dramatic to say that picking financial strategies is akin to a “choose your own adventure” story, albeit with much higher stakes than my kids’ nighttime reading. 

I will explore this subject further in a subsequent blog, but I’ll leave you with this thought: If you developed an ache in your eye, would you go to WebMD for the diagnosis and treatment, or would you see a doctor? Now, apply that same philosophy to AI for finance…