the few changes that I can see clearly our generation used to invest, as an example if you see before 60s Benjamin Graham's book on value investing got so popular it was purely on investing, why? because it came from US's bear market it came after great depression and world war those companies used to trade in cash it was value driven after 30-40 years these baby moves, after US's investing if GDP is growing after 30-35 years economy and consumption is growing so the market was so good, you could have invested and made good money disruption was not so common because technology didn't change much nowadays disruption is happening too much, I will give you an example people, the world is changing, and it will change, which is a fact I have seen this every time in life but one thing I have understood that the speed of change is increasing AI, Machine learning that we used to hear in English movies that has actually become a reality and knocking in our gates and it is convincing us to change friends, if we are not changing then we are going backwards and people who stay behind, no one will ask them as we all know share market is also changing, and you will have to learn these concepts to change few days back I recorded face2face with Ajay Sharma he is my mentor, and we get to learn so many things from him so I told him to open a YouTube channel that you will be able to follow 100% in this part 2, I have asked him for more parts. We will discuss Artificial intelligence, machine learning and how it is influencing investing and how we have to prepare ourselves this is going to be very interesting, so watch it till the end and understand so let me welcome my mentor, Ajay Sharma welcome to another face2face, namaskar namaskar so everyone was demanding all the time everyone was thinking we have not completed our discussion So I was trying to figure out the topic because I do not want to leave the chance of doing a face2face with you, but I also don't want to go basic in this discussion many people can record basic investing process and it is there on internet, but today I have got a very interesting topic and I think you are best person who can answer that question nowadays people are talking about AI, machine learning we are seeing its application in multiple domains in our life so AI, machine learning and we as an investor how do we prepare ourselves and how we can use this in our journey to become a better investor and to create better wealth we will start with AI/ML, what is AI? what is ML? I am still trying to understand this, I don't have all the answers I am trying to understand because all the things that I have heard till now in 15-20 years, it is going to be a big change everything is changing and people should know what is changing through AI every company should use this, probably individuals should use this, fund managers should use this, so it is important If I say simply, then one is manual one is cognitive, repetitive and non-repetitive all the manual work that was repetitive such as working in a factory and so on, that got automated and machine is doing that generally, machine and humans are doing the same thing together so the manual repetitive work that humans were doing since the last 100 years, machines are doing that better now and man and machine are doing that better than either just a machine or a human being humans and machines working together is better than humans things that were manual and were done by hands and legs things that have automated in 100 years, and more in the next 100 year such as man and software, humans and AI will work better than just humans very very clear, it will have no 2 views on this and I will show you some live examples, I am sure many must have seen it the things with highest creativity can also be done with the help of AI also creativity? example, you are thinking some artwork you can think some text and now computer will only give you some art for example, before the artists used to do these things, now even normal people can do it you thought that you want to see Amitabh in Van Gogh's painting there is a popular portrait of Van Gogh, which he made it in impressionist style you just give instructions to image AI it will give you options in 8-10 seconds come I will show you, this is stable diffusion, this is mid journey, which is also good we will give an input, Amitabh Bacchan in Van Gogh style what is this doing? now this has taken your text, and now it will search if Van Gogh painted Amitabh Bacchan in his style so how it would look like what is the science behind it? I will come to that, all these are data implications this was Van Gogh's painting and this has shown you 4 options this painting is not a result of google search engine google search shows you what is already there, this is made just now if Van Gogh made a painting on Amitabh, how it will look like it could have made 4000, it has made 4000 but it has shown the best 4 now in the next level, what the computer is unable to do is the editing now you change the dress, increase the eye etc, everything is possible in the next 2 years, we will see videos like these if you go to Google, you will find a website called Imagen Just type Imagen text to image diffusion okay text to image is going to be old, I will show you text to video wow text to video? No not yet, My name? They think that people can misuse this this is not in beta yet, all these videos that you are seeing of these minutes all these are text to videos Imagen is doing this, this is the cat one, similar to Van Gogh's Amitabh replication even videos, now this is height of creativity but this is not a finished product now humans have to think for a better way to make this better just few months back, not even a year, in future, the cognitive skills, also the emotional skills, that will be differentiated from a successful person and a not so successful person so these emotional skills and cognitive skills, the art part if that happens, then humans will be completely replaced because this is the logic part I don't know if it will be 100% replaced or not few things will never be replaced that is human interaction, it will never happen that a person is not interacting to another person or is in presence It is together, I incrementally also think were should I invest in the future I am searching for business that are not scalable because they are human dependent wow! what a perspective it is a manual repetitive work, which is my 2/2 work how do you use technology? to scale manual, non-repetitive work you will know what all am I doing here because in this new world, you should be doing things that are not scalable at all but technology can be scaled, so one thing I am clear about in the next 15-20 years, manual non-repetitive jobs the businesses around them will be really big because technology related job will be concentrated with very few companies which is the risk I see to the world, if you ask me the wealth pyramid that I was thinking about, it is an old video do check it in these 50 years, humans and machines have taken the world forward we can call it industrialization but the growth was very democratic when cars were getting manufactured then both US and Europe were doing it even in Japan, there were General Motors and Toyota say it was Rolls Royce and Jaguar if machine was getting manufactured, that machine wealth it was distributed all over the world the problem with AI is that it is also a machine this is made by few companies only and it will be used by the whole world so concentration of wealth is a different topic altogether it is something the world is thinking about, that's why people are talking about the universal income this is a big discussion in the western world
2023-02-06