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AI Leads to Massive Tech Layoffs

Written By Alexander Boulden

Posted January 25, 2023

Dear Reader,

I want to point your attention today to a passage from Robert Kiyosaki’s Rich Dad Poor Dad:

It’s all insider trading. There are forms of insider trading that are illegal, but there are forms of insider trading that are legal. But either way, it’s insider trading. The only distinction is how far away from the inside are you? The reason you want to have rich friends is because that is where the money is made. It’s made on information.

Of course, he’s not saying investors should partake in insider trading, which is very much illegal.

What he’s saying is that everything in life is based on who you know, your “network,” as it were.

Friends, jobs, and relationships are typically formed through people you already know and the information they provide.

It’s one reason Big Tech has exploded in the last decade.

It solved for the human problem of laziness.

Looking for new friends?

Just get a Facebook account and connect to everyone in your college.

Looking for a romantic relationship?

Download Tinder and meet up with strangers.

Looking for a new job?

Find it on LinkedIn through your professional contacts.

It was working great, but something went awry along the way.

Little by little, Big Tech started to become more invasive.

They asked for your phone number, your email address, your home address.

Eventually, the world was watching what you posted.

I remember the first time I saw the negative consequences of posting something online.

It all started with the personal blog website Xanga…

Everyone had a Xanga account when I was in high school.

You could customize your background and description and embed things like pictures and songs.

It was actually a pretty good way to learn some basic HTML.

Anyway, we were sitting in class and someone got called into the principal’s office.

It turned out they had posted something on their blog about a teacher they didn’t like.

I don’t remember what they posted, but they definitely didn’t have anything nice to say about this particular teacher.

All I remember thinking is that it was so strange someone could get in trouble for writing something on their personal blog.

It seemed like an invasion of privacy.

It didn't help that the entire faculty saw it.

Basically, it was a big deal at the time.

But it was just the beginning…

Little did we know the implications of these social media platforms.

Misinformation, fake accounts, bots…

And now that AI’s come along, we don’t even need to post our own content anymore.

Rise of the Machines

At first, we had to do all the legwork online.

But, as we can see above, technology, no matter how ingenious, is just a way to solve a problem.

And humans will always find the path of least resistance.

The latest symptom of this?

Artificial intelligence, or AI.

People are freaking out at the prospect of AI displacing the workforce. (In terms of avoiding a recession, it could lead to a soft landing by increasing unemployment.)

It'll happen exponentially faster than our economy can anticipate.

It’s actually already started.

Take this introduction from CNN Business this week talking about the newest AI chatbot, ChatGPT, for example:

Imagine a world where computers can talk to us like our best friends, but with the intelligence of a rocket scientist. Get ready to laugh, cry, maybe even throw your computer out the window, because the latest AI technology, ChatGPT, is here to shake things up. And just like a mischievous fairy godmother, ChatGPT has the power to turn your drab, mundane life into a technological wonderland or turn you upside down and leave you jobless.

Of course, ChatGTP, short for “Chat Generative Pre-Trained Transformer,” wrote this introduction.

Released just two months ago, it’s already broken the internet.

Students have since used it to cheat on writing assignments…

Professional coders are asking the AI to fix broken code…

Researchers at Yale conducted a study where the AI passed the U.S. Medical Licensing Examination…

And professors at the Michigan State University and Chicago-Kent law schools found it could also pass the bar exam…

Would you let ChatGPT represent you in the court of law?

The Great Tech Layoffs

Thousands of workers across silicon Valley are getting a fine "How do ya do?" to start the new year.

They're being laid off by the thousands.

And it all has to do with this super-smart AI.

If you didn't know, OpenAI — the company behind ChatGPT — was co-founded by Elon Musk. A bit ironic considering he lambasted Twitter for its AI bots. Before Elon Musk took over the company, Twitter maintained that bots only made up 5% of its accounts. But according to Dan Woods, a former FBI special agent, it’s estimated that over 80% of Twitter’s accounts are bots.

So there's no doubt he knows how powerful it is.

This new AI system will impact Big Tech in ways we can’t conceive of yet.

It’s only been two months and we’re already seeing the effects.

According to the Daily Mail, “Google has laid off more than 12,000 employees amid plans to shift to AI as a domain of primary importance… The nixing, the largest in the company's 25-year history, stoked fears that services like ChatGPT could [put] copywriters, journalists, customer-service agents, and now even lawyers and doctors out of a job.”

Big Tech knows this system is going to replace workers in the very near future. All the layoffs we’ve been seeing everywhere from Google, Microsoft, Amazon, Salesforce, and Meta to Intel and Twitter are just these companies getting ahead of the curve.

Because ChatGPT can remember previous conversations, it could replace everyone from call center operators and customer service representatives to coders and copywriters.

The Daily Mail article continues, “Despite these concerns, AI research remains attractive. Venture capital investment in AI development and operations companies rose last year to nearly $13 billion, and $6 billion had poured in through October this year…”

Microsoft announced just this week that it’s plowing billions of dollars into OpenAI.

And we all know Amazon’s been using AI for years to comb its marketplace for best-selling products in order to make its own versions and sell them for cheaper.

My colleague Jason Williams showed me an article from Reuters that explained how Amazon "secretly exploited internal data” in order to “copy products sold by other companies and then offer them on its platform."

Despite congressional hearings, Jeff Bezos and his Amazon empire continue their AI exploitation campaign.

But what if there were a way investors could game the AI system in their favor?

Jason's created a blueprint showing his readers how to stick it to Bezos by profiting off the very empire he created.

With a few click of your mouse, Jason will show you how savvy investors are getting paid every time a package leaves Amazon's warehouses.

In fact, the next payout is March 14.

And it doesn't have anything to do with buying stocks or bonds either.

I don't know of any other opportunity in the market like this.

Check it out now to see what all the buzz is about.

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

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After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

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