Chief Investment Strategist, The Freeport Society
“They’re threatening to shut down my bank account. What do I do?”
Use an AI chatbot to do the work of an attorney, of course.
As longtime readers will know, I live in Lima, Peru, with my wife and family. And this week, Ximena, an old family friend here, called me in a panic.
Her U.S. bank account got flagged for suspicious activity. The compliance folks were getting involved.
Ximena is one of the world’s top breeders of Peruvian Paso horses, which are known for their exceptionally smooth gaits.
She sells them across Latin America. It’s not unusual for her to receive wire transfers from Panama, Argentina, and other countries that tend to give bank managers heartburn.
But it was one particular wire that, for reasons unknown, triggered the red flag.
“They’re asking me what my relation is to this LLC,” she told me. “I don’t have a relationship to it. I sold its owner a horse. That’s it!”
The U.S. bank wanted records… receipts… anything and everything. But horse breeders are old school and operate on handshake agreements. She had nothing to send them.
“What do I do?”
I could tell from her quivering voice that she was upset.
I like horses. I even consider myself a novice aficionado. But I’m not an attorney. And I certainly don’t have the knowledge or skills to properly document the sale of a horse.
But OpenAI’s chatbot, ChatGPT, does.
So I typed the following prompt into ChatGPT: “Create a template horse-sale contract in English and Spanish.”
Within the time it took me to hit the send button, it had already returned to me a perfectly usable contract that looked like a lawyer specialized in ranch commerce had written it.
I forwarded it to Ximena. She used it to get her documentation in order for the bank.
New Normal
This is normal now…
I regularly need sample contracts, business letters, or other assorted legal documents. Before ChatGPT, I would have paid an attorney for these. Or worse – tried to write them myself.
Apart from the financial cost, it burned hours of precious time I can never get back.
Not anymore.
I now use the souped-up subscriber version of ChatGPT to do most of this heavy lifting.
I edit and customize the results. Occasionally, I’ll ask an attorney to put a second set of eyes on it, particularly if it’s complex.
But ChatGPT does the time-consuming grunt work in seconds… and for a tiny fraction of the cost of an attorney. My ChatGPT subscription costs me a mere $20 a month.
Documenting a few horse sales to pacify a bank compliance department isn’t going to change the course of fate. But imagine how much more productive corporate America will be when companies implement these tools at industrial scale.
It will usher in a productivity boom that dwarfs even the Industrial Revolution.
Imagine computer programmers using AI to write code in seconds that would normally take days to pound out by hand.
Imagine engineers using it to troubleshoot… and doctors using it to diagnose diseases.
Or imagine some of the less complex human tasks eliminated altogether.
Chipotle’s Autocado robot can peel, cut, and core an avocado in just 26 seconds.
And as Elon Musk announced to much fanfare on Thursday at his We, Robot event in Los Angeles, Tesla now has a prototype for an AI-piloted “Cybercab” that he plans to have in mass production by 2026.
He also unveiled a prototype for a “Cybervan.” This autonomous, roughly bus-sized vehicle is designed to transport people around high-density areas. It can also be fitted out to transport goods.
It’s all part of the Exponential Progress theme we track at The Freeport Society. And it’s already created an insane amount of wealth.
Take the so-called Magnificent Seven stocks – Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Tesla, Apple (AAPL), Meta (META), and Nvidia (NVDA).
These are some of the most valuable companies in the world. They’re also drivers of major exponential technology trends. Think AI, cloud computing, software, e-commerce, and next-gen transportation.
Since the end of 2022, the market values of these seven stocks have grown by a cumulative $8 trillion.
To put that in perspective, as of this year, all the companies listed on the Tokyo Stock Exchange have a cumulative market value of about $6 trillion.
So, that’s 1.3 times the size of the entire Japanese stock market.
It’s also more than the combined $7 trillion market value of all stocks in the eurozone.
What to Do
At The Freeport Investor, I share my top recommendations for profiting from the rise of AI and automation.
But don’t worry if you’re not already a paid-up subscriber.
To play this trend, you could buy a basket of the Big Tech players leading the charge or even a broad AI-themed ETF like the Global X Robotics & Artificial Intelligence ETF (BOTZ).
I also recommend you carve time to just tinker with an AI chatbot.
My default option is ChatGPT. As I’ve said, I have a subscription to the Plus version. It gives me access to the most powerful models… the latest upgrades… image generation… and some of the other bells and whistles.
But the free version packs plenty of power. Play around with it. Ask it questions. Have it draft a letter, a rental lease agreement… even a horse sale contract!
You may find yourself quickly incorporating it into your life.
Into the Future
That said, we are speeding toward next-generation AI. And just as the second generation of tech stocks after the dot-com era went on to run laps around the first-generation group of tech stocks – handing investors incredible returns – we’ll see the same thing happen with AI.
This will be the Real AI Boom, which will involve companies that use generative AI or reinvent or automate some of the oldest business models around.
This, in turn, will launch the kind of transformational change we only see once every 25 years. And these changes will roll out across society and reshape America on the same historic scale we saw in the late ’90s.
This is a market that’s expected to grow 20-fold to a whopping $15.7 trillion by 2023. That’s almost the size of China’s entire national output.
Our Freeport Society friend, Louis Navellier, believes the Real AI Boom could be the last market frenzy of this size our generation will see. That means the time to invest is now.
It’s been 25 years since we’ve seen anything truly comparable to this one, with the rise of the internet in the late ’90s.
And so, the next generation of AI I see coming could be your last chance to make a small investment in the right breakthrough stocks and still see huge potential profits.
Louis’s Stock Grader system just uncovered six companies using AI to shape America, so there’s still time to prepare your portfolio before the Real AI Boom begins.
Click here to learn more about the Real AI Boom and how to get the names of these six stocks now.
To life, liberty and the pursuit of wealth,
Charles