Sticks

There’s no way any of us can predict the impact that AI will have on companies, sectors or consumer behavior (which has been, for all of history until now, human behavior). But to claim that it won’t have an impact and simply brush it off lacks both humility and creativity. Tactics that worked when consumer behavior was dictated by human psychology will fall by the wayside, and those that fail to adapt will be left behind. Every day from now on we will see new examples of areas where friction was profitable becoming cost centers for companies that don’t react in a timely enough manner. Today you might realize just how many flight credits, loyalty points or promotional offers you’ve never used that will end up utilized by agents. What impact will that have? Tomorrow, you might see something that makes you ask how much money health insurers make simply because people won’t sit on the phone for 5 hours trying to get coverage approved unless it’s a massive expense and/or life or death matter. What about your savings account? That money could be in a money market fund, but you haven’t bothered to move it. How much in net interest income is made because of that friction? The coming years will be some of the most interesting for investors who are intrigued by paradigm shifts and their ripple effects. I, for one, could not be more excited to see how it all plays out and invest through the changes.