Generative AI: What a Difference Two Years Has Made!

ChatGPT, a generative artificial intelligence (AI) platform, was launched in November 2022 and had one million users in one week and 100 million in 2 months. It was the fastest tech platform ever to reach 100 million users and, by February 2023, I was hooked. Today, about 1 in 5 workers are using ChatGPT for their work, myself included.

 

A lot has happened with generative AI in the three years since its launch, so I thought I’d share some personal Barbservations:

AI Use is Not New- Even before ChatGPT came on the scene, I had used AI in the following ways: Microsoft Word and cell phone texting that anticipated (sometimes incorrectly) the next word that I would use in a sentence, pop-up ads based on online searches, shopping suggestions based on past purchases, and Alexa and other virtual assistants.

 

It Makes Suggestions- In 2023, I told ChatGPT the output that I wanted via a detailed prompt. It then did what I asked, but no more. I was done. Today, like an overly ambitious student trying to get an “A” from a professor, it asks me if it can do more for me such as creating a checklist or PDF documents.

 

AI Output Pops Up Automatically- Three years ago, I had to seek out a generative AI content by proactively logging in to ChatGPT. Today, if I use the search engine Google, content from their AI platform, Gemini, generally pops up first to answer my question, along with the information sources that were used to generate the AI answer.

 

Text to Graphics Capabilities- In its early years, ChatGPT could only be used for text prompts for text output. I tried to create images and got an error message. Today, you can give ChatGPT a text command to create a graphic image. My experience is that it takes a “conversation” with several rounds of prompts to get exactly what you want.

 

Hallucinations Still Occur- Hallucinations are authoritatively sounding AI-generated statements that are wrong. They were a problem in 2022 and continue today. Two prompts that frequently cause problems are math calculations and reference citations. Thus, AI-generated content must always be considered a “first draft” subject to review and revisions, if needed.

 

Content Controls- Since hallucinations are an issue, some organizations have created their own data sources, called large learning models, for AI to generate content from. LLMs are the underlying technology that powers generative AI applications that are trained on a massive amount of text to understand, generate, and process human language. I recently experimented with this and asked ChatGPT to create content only from my website and archived blog posts.

 

My best advice for using AI is to play around with it and have fun. It will probably surprise you and may help you accomplish everyday tasks such as planning a meal and trip planning.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Highlights of Recent Webinars: First Quarter 2024

 

Every quarter, I like to review and summarize my notes from webinars I attended during the last three months. Below are some interesting tidbits from recent programs that I attended:

Future Self Thinking- Many people often think of their “future self” (who they will be decades in the future) as a stranger. As a result, they don’t think about the consequences of doing something now because their actions are affecting another person rather than themselves personally.

 

Required Minimum Distributions (RMDs)- Only IRAs and 403(b) plans (for school and non-profit sector employees) can be aggregated to calculate RMDs. All other tax-deferred plans, like 401(k)s and the thrift savings plan (TSP), must have RMDs calculated separately.

 

Saving Money on College Expenses- Suggested strategies include going to community college first, living at home with parents, going to a public college in your home state, applying for scholarships, buying used textbooks or renting textbooks, and getting a job at a college.

 

“Loud Budgeting”- This is where people (mostly young adults) post videos, primarily on TikTok, about ways they are reducing expenses and saving money. In many cases, they are repackaging “tried and true” strategies from the past but are doing so to appeal to a new generation.

 

ChatGPT- This program, developed by Open AI, is the most popular large learning model (LLM). It is trained on a massive data set of text, pulls information from multiple sources, and consolidates it to create brand new content in response to prompts by users.

 

Financial Trauma- The textbook definition is any negative experience that affects how people handle money (e.g., saving and credit). The trauma can be “little t” (relatively minor) or “Big T” (a major event). Financial advisors should always remember that people are the expert of their life.

 

Roth Conversions- It is best to move money from a pre-tax account to a Roth account in low-taxable income years, during stock market downturns, and/or in small increments over time. When you do a Roth conversion, you are front-loading taxes to avoid taxes at higher rates later.

 

A Dollar Too Much- RMDs often push older taxpayers into a higher marginal tax bracket. Just one extra dollar in income can trigger tax on Social Security benefits, higher Medicare premiums, and the 3.8% net investment income tax.

 

IRMAA Medicare Surcharge- The income-related monthly adjustment amount (IRMAA) is an extra amount that high-earning retirees pay for Medicare coverage. Currently about 7% of retirees pay IRMAA and there are five IRMAA income thresholds beyond the standard Medicare premium. IRMAA is based on income earned two years earlier (e.g., 2022 for 2024) and can be avoided by lowering adjusted gross income or making an appeal to Medicare based on life events.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Personal and Professional Uses of Generative AI

 

I recently co-taught a webinar for one of my clients about professional uses of artificial intelligence (AI) platforms such as ChatGPT. Below are eight highlights from my webinar presentation and some advice to get started:

Previous Experience- Most people have had some experience with AI through word processing software, online searches, online pop-up ads, AI-enabled “smart home” features, and virtual assistants such as Alexa, Siri, and Cortana.

 

Simple ChatGPT Description- ChatGPT provided this simple description: "A smart robot friend who can answer questions and have conversations with users." It is a large language model (LLM) trained on a massive data set of text information that creates (generates) brand new content.

 

Login Details- The website for ChatGPT is https://chat.openai.com. To use this program, users must create an account with a username and password. After that, simply type a prompt into the “Send a Message” field and wait 5-10 seconds. The response to your query is lightning-fast.

 

Prompt Engineering- This is a skilled process of talking to LLM systems like ChatGPT and involves using carefully chosen words. The more detail the better. For example, instead of “What are mutual funds?,” say “Explain mutual funds to a 10-year old and describe five types of mutual funds.”

 

Hallucinations Happen- “Hallucinations” is the term used to describe authoritatively sounding statements that are flat out wrong. They happen and, for this reason, ChatGPT output should only be considered a “first draft” subject to review by an experienced subject matter expert.

 

Fun Ways to Start Using ChatGPT- Many people don’t have time to play with AI on work time so they need to learn how to use it on their time off. Fun personal uses of ChatGPT include poems, songs, jokes, party planning ideas, craft and hobby ideas, gift ideas, recipes and meal planning, vacation planning, restaurant reviews, exercise ideas, and learning a new language.

 

Content Creation Uses of ChatGPT- For personal finance content creators and other writers, uses of AI include newsletter articles, newspaper columns, blog posts, literature reviews, outlines for classes and webinars, speaker notes for slides, show notes for podcasts, and article, blog, and book summaries.

 

Learning Activities- A variety of learning activities can be created using ChatGPT. Examples include discussion and polling questions, talking points for debates, trivia game questions, financial case studies, student-created poems or songs, and definitions of terms.

 

A good way to get started is to write down one or more things that you would like to do with ChatGPT (e.g., summarize a book, plan a trip, research a topic, write a poem, etc.). Then write your first prompt to accomplish this task.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.