Artificial Intelligence enters a new era

Welcome to the Level Ups. Modern business news in plain-Jane English.

Today, we cover:

• AI enters a new era.

• Sam Bankman-Fried was found guilty.

• Telus reports a major drop (74%) in profits.

• Canadian Corner: central banks target companies over price-hikes.

Let’s get into it.

Estimated reading time: 4 minutes & 10 seconds

AI enters a new era

Specifically, ChatGPT just levelled up (pun intended).

“ChatGPT builder” is a new innovation where anyone can create their own version of Chat GPT—a specialized bot for your own purposes. The idea is to share access with others and potentially build businesses in some cases.

The possibilities here are massive, especially since many major companies built their AI features using ChatGPT.

Here’s the summary:

• GPT builder to build your own version of GPT. They have instructions for you here.

• Like many apps, your New GPT would connect to your data and work with better context.

• A “GPT store” is coming. Think of the app store but for new GPTs (AI agents), and apps.

Just like how millions of people made fortunes on iPhone and Android apps, we will see the same with AI.

A real example:

Nomad List is a go-to if you work and travel. The business (the website) helps digital “nomads” (people who work from a laptop), live and work anywhere in the world by sharing:

• Reviews

• Best places to stay

• Travel tips for each location

• Recommendations on where to stay, eat, and have fun

The founder (and only employee) just finished “NomadGPT,” an AI agent that can explain everything like their website’s personal agent. It’s accurate, fast, and is familiar with all the information on the website. Plus, it connects the dots, and speaks like a human.

To put the power of this builder in perspective. He just says, “sometimes you miss the names of places, but they’re on the file I gave you.” The AI updates itself.

This is absolutely mind-blowing. Expect every company to have their own GPT in a few years.

Sam Bankman-Fried (SBF) was found guilty

The disgraced crypto “king” has been found guilty on seven counts of fraud. He was specifically charged with two counts of wire fraud and five counts of conspiracy, including money laundering.

There were mountains of evidence that showed how SBF accessed, misrepresented, and spent over $10 billion of other people’s money.

The jury reviewed for over four hours before the verdict, which is a clear message.

SBF faces 100 years in jail. But how long will he actually spend in jail? We’ll see, but remember, the judge sets an amount based on what they believe is sufficient to punish Bankman-Fried, deter others, and promote respect for the law.

It’s a clear message, and “deterring others” likely requires a heavy hand.

Admittedly (if you remember), many people were involved in crypto and scammed along the way. Those smaller-scale offenders got away with it in a majority of cases.

Potentially 100 years in jail.

Considering he did that with other people’s money, in the billions, I doubt people are upset.

While the story doesn’t fully end here (it’ll end when we see the jail time), and he may appeal, it’s vindication for many.

Well deserved.

Telus sees a 74% drop in profits

After restructuring, which led to 6,000 layoffs, Telus reports a major decline in Q3 year-over-year profits.

I know what you’re thinking.

How do you let go of 6,000 people and then lose that much money?

It’s the costs associated with restructuring.

• Severances

• Early retirement packages

• Consultant costs associated with the restructuring.

The fact is that the costs are upfront, but they anticipate realizing profits over the coming year. This means the restructuring will result in savings eventually (so they say).

Ironically, Telus had record customer growth during the same period. Chances are they’ll bounce back (not financial advice).

This is not like Sam Bankman-Fried. There’s no vindication here.

Canadian Corner: banks notice the price hikes

No Canadian is surprised to hear companies are now more willing to raise prices.

But it looks like the price hikes have caught the attention of central banks. Nicolas Vincent, Deputy Director Governor at the Bank of Canada, clearly stated that there’s a “firm risk” of not reaching the target of 2% inflation if price hikes continue.

In other words.

The banks seem to know that the overall cost of living increases and inflation is not just from printing money during the pandemic. It’s also corporate price-hikes that use “increasing costs,” and “inflation” as excuses.

At one point, labour costs were up 10%, while profits were up 70% per unit of work. All other things being equal, raising prices by 10% would have been break-even.

But what are they not saying?

Experts have weighed in. They’re implying the government may need to implement new laws limiting price hikes on essential goods (food, gas, etc).

Canadian grocers, for example, have come under public scrutiny for profits made throughout the pandemic up until now, while the cost of food soars.

Aside from housing, this is the biggest challenge facing most Canadians today.

Let’s see how it plays out.

Wrapping Up:

Thank you for reading. Let me know what you think here.

All the best.