In my continuing quest to write about subjects that affect us in this world of finance, I thought it might be interesting to scratch a little beneath the surface of ChatGPT, including what it is and how its existence could impact the way humans interact with one another. From that vantage point, I will also draw a few conclusions from an investment management and client point of view.

In the event you’re unfamiliar with ChatGPT (GPT = Generative Pre-Training Transformer architecture), it’s a chatbot launched in November of 2022, by a company called OpenAI. It’s certainly not the first, but it has gained traction because unlike other virtual assistants, it has demonstrated a better understanding of “normal” language, and therefore when we ask it questions, the responses can appear to be more “thoughtful”. In the past, other types of chatbots, particularly in the realm of customer service (such as the little animated icon on platforms like your internet provider), have proven to be quite unsatisfactory.

Many expect ChatGPT will provide a far greater customer service experience, and could very well make some job categories obsolete. That being said, at its core it was designed to assist with tasks that involve generating text and answering questions. Yes, it can automate certain functions and decrease the need for human involvement, but it likely will create new jobs that require AI, data analysis and programming skills.

Perhaps the biggest difference between AI and a live person is, ChatGPT does not possess human values. While it has been trained to ask clarifying questions to vague queries, it will most often guess at the user’s intended meaning.

As all of this relates to my role as a manager of investment portfolios, ChatGPT or any other AI platform can’t replace those of human connection, empathy, emotional intelligence, intuition and originality (to name just a few). Therefore it is my strong belief that while AI definitely will have permanent place in some facets of our lives, it cannot replicate many of the most important aspects of human behaviour (at least not yet!).

For fun, I decided to take ChatGPT for a test-drive and asked it to, “Generate topics to write to clients in a wealth management context”… The reply came back with nothing new or innovative – just the most basic been-there-done-that subject matter that has been written about in a thousand different ways, for many decades. As a matter-of-fact, most of the topics (answers) reflect those I’ve discussed in the past (hence me not wanting to repeat them), and also bullet points reflected directly on my own bio (which has me considering an edit!). Below are some of the ChatGPT suggestions:

• Asset Allocation: Discuss the importance of diversification and provide guidance on optimizing their asset allocation to align with their financial goals.
• Financial Goal Setting: Help clients set and prioritize their financial goals, both short-term and long-term.
• Estate Planning: Discuss the importance of estate planning, including wills, trusts, and gifting strategies.

I think most would agree, the key to human relationships stems from the personal connections we form with one another, which in turn at its core creates a bond of trust. It is in that spirit, I once again thank all of my clients for their continued trust in my portfolio management. If you are not yet a client, consider reaching out today for a second opinion.

Libby

 

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