The most prevalent theme of the extent to how far Artificial Intelligence is going to upend the world we know, is that we are in the realms of the unfathomable and the unpredictable.
Yet we do know that this is going to be meaningful.
It’s the detail, the precise timelines, and the consequential factors, both intended and unintended, that remain fuzzy.
We are mere spectators to the most astonishing show, not really being able to see what it will bring forth, as we watch the opening act.
Which brings us onto the sobering subject of finances and money.
Despite many bumps in the road, the occasional “black swan event”, and some spectacular missteps by governments worldwide, the financial landscape for those of us in the UK, has been both relatively stable and predictable, for decades.
It may not seem like that, but this is the true backdrop, and, consequently, we have been able to rely on a number of foundational principles within our financial planning.
These principles inform us what we need to do at any given point, in relation to how to save, invest, plan for retirement, and insure ourselves along our personal pathways.
One word that seems to have become more popular in recent months is “paradigm” , with experts at the coalface (for example those in the labs where AI is being tested) suggesting and, in some cases, warning of a new paradigm.
Again, trying to understand what this new paradigm is going to be like is near impossible; we cannot know the unknowable.
There is, though, a confidence amongst those who are seeing – first-hand – this evolving tech emerge in all its forms; there will be a new paradigm.
This means we can expect the foundation stones to become displaced.
They are the stones of a building that is about to be rebuilt and replaced.
Jobs, retirement ages, longevity, financial systems are all now “in play” in consideration of how they will shift. And they could shift wildly and quickly.
There are fantastical predictions being made by some, such as average life expectancy suddenly escalating above 100, job losses amounting to unemployment rates in the 20-30% range, and more – much more.
If they sound fantastical, that is because they are, within the current paradigm.
Hence, the importance of recognising that this evolving position seems to have transformation at its heart rather than iteration.
If the shift is truly transformative, then we need to be on standby with our finances, to work hard to keep up, to understand, to be vigilant.
If the foundations crumble, which is not to say they will, then we could become displaced very quickly.
One of the central planks of great financial planning is flexibility – to prepare for the unknown and be willing to act when new information comes along.
We are at the beginning of something today, never before has there been a picture of this sort in front of us, so even though it remains fuzzy, as it becomes clearer we need to be committed towards action or reaction, as and when.
We should expect the unexpected, prepare for the unpredictable and be open to new possibilities. The role of a financial planner will become crucial as this unfolds, to help with insight, guidance and advice.
You can contact one of our independent advisers for personalised advice and support in making confident, informed decisions by using our Facebook or Contact Us pages, or speaking to a colleague in our office on 01329 282882.
Please note: The content of this blog is for your general information purposes only and does not constitute as investment advice.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
