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From Fear to Action: Adopting a Low-Risk Approach to New Technologies

Summary of Blog Post Highlights (assist to ChatGPT)

After I have written about a topic of interest, I often enjoy prompting ChatGPT to provide a TL;DR summary and/or a recap of highlights. I have found ChatGPT often recaps my words and articulates my thoughts better than I can! The highlights of the full blog post:

  1. Stay Calm: Don’t succumb to the fear and hysteria often portrayed by mainstream media. Embrace change with a calm and open mind.
  2. Adopt a Possibility Mindset: Be optimistic about AI’s potential benefits. Rather than fearing the unknown, explore new technology’s possibilities.
  3. Limit Exposure to Alarmist Media: Alarmist narratives often overemphasize the risks of AI. Make an effort to seek balanced, well-researched information.
  4. Be Curious, Not Judgmental: Approach AI with curiosity and an eagerness to learn. Don’t dismiss it outright due to misconceptions or biases.
  5. Test Out Technology: Engage with AI in low-risk situations to gain firsthand experience. Ignoring AI might pose a higher risk in the long run.
  6. Leverage, Don’t Overly Rely on AI: While AI can be highly beneficial, don’t become too dependent on it. Strive for a balanced use of technology.
  7. Continuous Learning and Development: By remaining curious and open-minded, you can continually develop personally and professionally. AI offers an array of opportunities for learning and growth.
  8. Make Informed Decisions: By engaging with AI, you can make educated decisions about its utility. This will allow you to benefit from the technology while mitigating the potential risks of choosing to ignore the tools.
  9. Contribute Positively: A measured, intentional approach to AI can enable you to make significant contributions to society and improve your own life.

Full Blog Post

I recently read a blog post by Ted Lamade, published by Collaborative Fund, titled Fear of Acorns.

Starting with a story about the fable of Chicken Little, Lamade turns the focus to the modern-day introduction of AI and the fact that there is no shortage of fear that “the sky is falling” and that AI is leading us down a dangerous path. Is the fear warranted?

The fear is probably not warranted. Ask the TwinzTalk duo, and Don and I will enthusiastically share the incredible potential for good that we believe AI will bring to people who are calm, curious, and asking the question, “How can these AI tools be used to help?”

While AI is the “latest” technology, it is easy to find plenty of mainstream media coverage broadcasting the danger to our future lives; creating fear is a common quick reaction that scares people and supports a desire to stay with the status quo in their life. On an individual level, we must start by analyzing our responses and considering, “Am I taking a deliberate, thoughtful approach to my decisions, or am I part of the problem by taking a negative stand without doing any research on my own?”

Below, I will share thoughts from the article and tips that Don and I recommend as a more rational and thoughtful approach to assessing new technologies, including our approach to using ChatGPT AI.

“…an irrational amount of fear is a problem because it makes us susceptible to the “Foxy Loxy’s” of the world. Those who aim to leverage fear for personal gain. Those who sell advice, products, and services that feed into the fear. Those who want it to magnify it at every turn. The media is the obvious culprit, but there are countless others.”

“This past weekend alone, there were more than two dozen articles in the various papers I read highlighting the risks surrounding AI, how it is going to dismantle the American workforce, cause the wealth gap to widen even further, destabilize the economy, and even lead to nuclear holocaust.”

“For something that is so confusing and complicated, the answer is likely relatively simple. For industries less dependent on human behavior, AI will likely be a highly beneficial development. However, for those more dependent on us and our whims, caution is likely warranted.

This said, the majority of industries will unsurprisingly fall somewhere in the middle, which means they will be better off if they find a way to leverage but not rely too heavily on these new technologies.”

The article is thought-provoking and should encourage anyone to “take a deeper look” and study the possibilities of AI before dismissing the technology outright. The riskiest decision may be “I don’t need this,” and to proceed with your life’s routine. The approach that Don and I have used throughout our careers and are currently using around adopting ChatGPT and other AI technologies rapidly showing up in the world is:

  • Stay calm.
  • Carry a mindset of possibility. Be optimistic.
  • Do not watch or limit exposure to mainstream media, which brings alarmist news or the latest catastrophe to our living rooms.
  • Be curious and not judgemental. Ask yourself, “What might I be missing?” Read widely and study how tools are being used.
  • Choose to test out technology with the lowest risk proposition. Remember, choosing to ignore or do nothing may be an expensive choice in the longer run. By choosing low-risk ways to touch technology, you are gaining firsthand experience and are able to make a more educated decision for yourself as to whether to use it or not. By choosing low-risk, a mistake does not eliminate you from playing the game.

A calmer, optimistic mindset and a more intentional approach toward technology will open up a surprising world of possibilities to develop yourself personally and professionally. Be curious and chip away every day. You will develop yourself and become a more substantial contributor to your world and those who surround you!

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Beyond Money: The Power of Your Personal Balance Sheet for Success

“We need to keep our sight on managing the balance sheet.”

I was stating a phrase often as I evolved in my career finance leadership roles. Along with that phrase was a follow-up noting, “The balance sheet is where the magic is.“

High emphasis is given to a company’s profit and loss performance within the business world. Yet, we must fully understand and monitor/manage the full range of financial statements – the income statement (P&L), the balance sheet, and the statement of cash flows. Mr. Pollin, the former owner of the NBA Washington Wizards, NHL Washington Capitals, and the arena in downtown Washington, DC (MCI Center built and opened on December 2, 1997), once emphasized to me, “Cash is king.” Cash provides freedom in business – space to allow for investing and growth decisions, a buffer to enable the peace of mind that the company can weather an economic downturn and possibly make decisions to come out even stronger on the other side of tough times.

Where does cash reside in the financial statements? The balance sheet. Cash and business equity (retained earnings) are the two figures that shine a spotlight on the possible health of a company.

“Wait, are you telling me the income statement is not important? How do we know how we are performing?” We are NOT suggesting the income statement is not essential – closely monitoring, understanding, and managing revenues and expenses is imperative for any business. A sustainable business does not happen or survive by performing at a net loss (expenses greater than revenues) year in and year out. Yet when a viable business generates a profit, a tandem step must be working diligently on managing the balance sheet.

What sources and uses of cash? Are we operating at a positive cash flow level? We must increase the balance sheet cash and retained earnings.

Most accounting professionals understand the descriptions and emphasis noted above. What Don and I encourage/implore individual professionals to understand – the concept of “manage the balance sheet” applies to all of us in our personal lives. The results can be catastrophic if we fail to recognize and dedicate ourselves to this critically important work.

A choice to do nothing and not own our personal development is still a choice. Once awareness is acknowledged, inaction is a choice. We need to highlight and understand the risks.

A component of our morning reading process includes The Daily Stoic: 366 Meditations on Wisdom, Perseverance, and the Art of Living by Ryan Holiday and Stephen Hanselman. The meditation of July 17th, The Start-Up of You, noted emphasis on personal development:

But what does Socrates say? “Just as one person delights in improving his farm and another his horse, so I delight in attending to my own improvement day by day.”

—Epictetus, Discourses, 3.5.14

An excerpt from the meditation notes:

“But shouldn’t we be just as invested in building ourselves as we would be in any company?

Like a start-up, we begin as just an idea: we’re incubated, put out into the world where we develop slowly, and then, over time, we accumulate partners, employees, customers, investors, and wealth. Is it really so strange to treat your own life as seriously as you might treat an idea for a business? Which one really is the matter of life and death?”

When contemplating our personal lives, let’s understand the perspective of a macro view beyond the financial elements. Below are several factors that we would consider aspects of the individual balance sheet:

  • Financial matters are a significant pillar in our balance sheets. Be bold about embracing personal finance knowledge. We suggest Morgan Housel’s The Psychology of Money.
  • Cash, investments, and net worth are the core elements in the traditional sense of the balance sheet.

Morgan Housel, in this CNBC article, notes:

“Being able to do what you want, when you want, where you want, with who you want, and for as long as you want provides a lasting level of happiness that no amount of “fancy stuff” can ever offer.”

  • Commit to personal development. Invest your own time and money and actively seek learning opportunities in areas of your interest and professional growth.
  • Self-care is essential and is not a selfish priority. You cannot pour from an empty cup. Exercise and get your rest.
  • Mindset – embrace a growth mindset vs. a fixed mindset.
  • Adopt a morning reading routine. Challenge your thinking and learn from others.
  • Bring kindness, positivity, and encouragement to the world. You will feel better, be noticed, and appreciated.
  • In small ways, help others consistently-every day, with no expectation. You will feel more fulfilled.
  • What presence do you bring to the world – we need to be a friend to ourselves, our world, and each other.
  • Stay CALM. Great strength and advantage accrue to individuals who can keep themselves aware and clear-headed in times of adversity. A helpful post from The Daily Stoic – How To Remain Calm When The World Is Freaking Out.
  • Relationships – who do you spend your time with?
  • What media do you consume? We are what we consume.

Slow down and prioritize time in your day to assess and work on your personal balance sheet. We hope this post provides thoughts that guide you toward an increasingly fulfilling life. To work on ourselves is a privilege and a joy – a better you helps to create a better world.

Invest in yourself. The world needs your talents and contributions!