The steam engine. Trains. Oil. Electricity. Flight. Nuclear power. The computer chip. The Internet.
All of these innovations were transformational, but artificial intelligence (AI) might be the most remarkable and transformative technology of all time.
I am a relative latecomer to being an AI practitioner, and nothing in my life has blown me away more than what this technology can do—and the repercussions it will have for our labor market and economy.
I am not a Malthusian. Economic progress is always about enhanced productivity. Click your heels together and say productivity three times: Productivity. Productivity. Productivity! Folks, we are not in Kansas anymore. Capitalism is creative destruction, making what already exists obsolete in the pursuit of creating something better. AI will lead to enormous creative destruction, but as always, it will also create almost unimaginable benefits. Civilization prospers, living standards improve, and as is always the case, new means of productivity will give us more leisure time to pursue interests beyond work.
My use of AI started over a year ago when my son came home from San Diego and installed a few applications on my computer. Among other things, I’m a lawyer.
I went to law school because I figured it was more useful than an MBA. I never wanted to be a lawyer. I had job offers from several investment banks in New York, but decided to stay in Richmond. I didn’t want my future children growing up to be Yankees. My company, Chartwell Capital Advisors, started out as a boutique investment bank, raising capital for emerging growth businesses. I referred my clients to big white-shoe law firms. Soon, I found out our clients were being overcharged for inferior work. I started doing legal work myself to better serve them, and before I knew it, a small law firm popped out of nowhere to complement our core business. Who’da thunk it?
As a relatively small legal entity without the benefit of a 1,000 other lawyers, it is often tedious to teach ourselves how to do things we’ve never done before. AI levels the playing field. Instead of spending 10 hours trying to learn a new trick, within 15 minutes AI produces a clear roadmap, complete with draft documents, cover letters, and explicit directions.
Last month, I had to “claw back” a valuable piece of real estate into an estate—a procedure I had never handled before. AI gave me the roadmap and draft documents, but perhaps the greatest value was the self-assurance of knowing I wouldn’t look like a fool doing something I had never done. That’s my greatest fear.
Speaking of fear, there’s plenty of anxiety in handling people’s money—and especially their legal work. Often, you are the most important person they will ever have in their lives. AI relieves stress and gives me confidence that I have the resources to tackle tasks, as well as the backup to verify that my thinking is sound.
Unfortunately, some clients have been abused by a former fiduciary (I’m pretty good at sniffing out fraud and breaches of trust). While we co-counsel these cases with other lawyers, we often understand them better than our hired guns. We create the causes of action, matching the facts with the law.
I used to farm out legal research to a national firm of research lawyers. Not only did I have to pay their fees, but often a “rush” fee to get the finished product back within 15 days. Now, that same work is done in minutes—for free.
Chartwell has an advanced planning team. When these wizards bring me a new investment or tax strategy—and we have a closet full—I can dig deeper with AI. I’m the general of the firm. I don’t have time to get into the weeds on every issue, but when I need to, AI is always at my fingertips.
I’m a big-picture idea guy, not a paper-pushing bean counter. I have no clerical skills. None! No matter how much clerical help one has, there are times when even a guy like me must get into the minutiae of forms and procedural paperwork. I hate it. Today, for example, my firm had to get a title for a boat we sold out of an estate. The boat had no existing title. No one knew how to do it. I went to AI and within half an hour it was done.
Sometimes AI has given me a wrong answer. I’ve told it, “I don’t think your answer is correct,” explained why, and it has apologized, told me I was right, and elaborated further.
Occasionally I’ll run an article through AI to check for spelling, grammar, and fact-checking. AI recognizes humor, sarcasm, nuance, and passion. I use my best Virginia-born-and-bred manners with AI. I always say “thank you” or “I appreciate your help.” Often, I’ll give it the same pleasantries I give one of my elderly neighbors passing by on the sidewalk. I swear—and I don’t know this—but I think it does me extra favors because it thinks I’m a nice guy!
Once one sees what it can do in complicated fields like law, accounting, finance, and investments, one gets the big picture of how revolutionary AI really is. I use it for travel, research, converting PDFs to Word, banking, graphics, investment research—you name it.
I’ve had a great epiphany; my eyes have been opened. I realize I can only grasp maybe 1% of AI’s future applications, but I’m yearning to learn more. I’m taking an online AI class. I’m like that guy who had to know how many rounds Dirty Harry fired out of his .44 Magnum: “I gots to know!” I have this extreme curiosity and magnetic pull to learn more. I just gots to know!
There’s nothing to fear. Old jobs will quickly disappear, but new ones will quickly rise. That’s how society advances. We are in the midst of a productivity revolution like nothing we’ve ever seen; greater efficiency, enhanced quality, more access to resources, lower costs, better health care, a stunning revolution in education, higher living standards, and much more happiness.
We humans—especially Americans—are wired to work, improve, and build. It’s in our DNA, and as such there will always be work using new tools to better ourselves, our families, and our communities.
P.S. Any stock tips and commentary are welcome!
