Artificial Intelligence: Innovation for Today’s World

Artificial intelligence (AI) is rapidly changing the way businesses build products and even provide customer service. We now have automated virtual assistants and “chatbots” answering customer service calls.1 We even have self-driving cars being tested for pizza delivery.2

These quantum leaps in technological advances present both opportunities and challenges. For example, the way we have adopted online financial transactions over the past 10 to 15 years has made everything from banking and paying bills to applying for a mortgage so much more convenient. However, as the recent Equifax security breach impacting more than 145 million people demonstrates, housing that much data in one central location creates a single-entry point for would-be hackers.3

That’s one reason we believe it’s important to work face to face with financial advisors you know and trust. Regardless of where technology takes us, there’s really no substitute for personal interaction, particularly when it comes to planning for your family’s insurance, higher education and retirement income needs. We appreciate the value of combining human intelligence with empathy and understanding, and we know our clients do as well. In this rapidly advancing world of artificial intelligence, it’s important to offer both convenience and personal service.

With that said, we work to keep up with innovations and their applications for today’s world, especially when they may create potential investment opportunities. There are all kinds of innovative things to report. The use of connected devices such as wearables, residential electric and gas meter readers, drones and business self-checkout terminals is expected to grow by 31 percent this year over 2016. Today’s number of 8.4 billion devices in use is projected to grow to 20.4 billion connected devices by 2020.4

AI devices, such as drones, are being adapted for all kinds of creative uses. Researchers in Australia have developed flying drones capable of doing three things:5

  1. Identifying sharks near swimmers and surfers
  2. Amplifying warnings to beachgoers via an on-board loudspeaker
  3. Sending out electrical impulses that irritate sharks and deter them from entering populated areas

One way AI can be more effective than the human brain is its capacity to access and analyze vast more stores of data. As humans, we possess memory and recall, but AI machines can be loaded with an infinite amount of data that can be scanned and identified quickly. Farmers are using this technology via smartphone to take photos of ailing crops, from which AI can pinpoint disease with up to 98 percent accuracy.6

In the construction industry, AI is being used to help project managers track the most egregious potential malfunctions based on plan specifications, phase timing and severity. This helps keep projects on time and on budget with a laser-like focus on safety and quality.7

AI is also having an impact in the retail industry. British fashion icon Burberry requested and uploaded scores of data regarding their clients’ buying habits. This enables frontline retail clerks to make immediate recommendations to complement client selections based on what customers purchased in the past. The intelligence has created a type of personalized shopping service that has proven enormously successful.8

Moreover, the retailer has been able to cut down on counterfeit sales by developing technology that can detect if an item is a Burberry “bootleg” product by analyzing a photo of it.9

Content prepared by Kara Stefan Communications.

1 Shep Hyken. Forbes. July 15, 2017. “AI and Chatbots Are Transforming The Customer Experience.” https://www.forbes.com/sites/shephyken/2017/07/15/ai-and-chatbots-are-transforming-the-customer-experience/#31527b2941f7. Accessed Oct. 13, 2017.

2 Amar Toor and Tamara Warren. The Verge. Aug. 29, 2017. “Domino’s and Ford will test self-driving pizza delivery cars.” https://www.theverge.com/2017/8/29/16213544/dominos-ford-pizza-self-driving-car. Accessed Oct. 13, 2017.

3 Bloomberg. Oct. 2, 2017. “Equifax Says 2.5 Million More Americans May Be Affected by Hack.” https://www.bloomberg.com/news/articles/2017-10-02/urgent-equifax-2-5-million-more-americans-may-be-affected-by-hack. Accessed Oct. 2, 2017.

4 Liam Tung. ZDNet. Feb. 7, 2017. “IoT devices will outnumber the world’s population this year for the first time.” http://www.zdnet.com/article/iot-devices-will-outnumber-the-worlds-population-this-year-for-the-first-time/. Accessed Oct.13, 2017.

5 Charlotte Edmond. World Economic Forum. Sept. 4, 2017. “Meet Australia’s beach-protecting, AI-powered shark drones.” https://www.weforum.org/agenda/2017/09/australia-shark-drones-artificial-intelligence/. Accessed Oct. 2, 2017.

6 Jamie Condliffe. MIT Technology Review. Oct. 2, 2017. “OK, Phone: How Are My Crops Looking?” https://www.technologyreview.com/the-download/609028/ok-phone-how-are-my-crops-looking/. Accessed Oct. 2, 2017.

7 Zach Mortice. Redshift. Oct. 2, 2017. “Machine Learning Eases Construction Project Management—and Prevents Catastrophes.” https://www.autodesk.com/redshift/machine-learning-construction-project-management/. Accessed Oct. 2, 2017.

8 Bernard Marr. Forbes. Sept. 25, 2017. “The Amazing Ways Burberry Is Using Artificial Intelligence and Big Data to Drive Success.” https://www.forbes.com/sites/bernardmarr/2017/09/25/the-amazing-ways-burberry-is-using-artificial-intelligence-and-big-data-to-drive-success/#24388a014f63. Accessed Oct. 2, 2017.

9 Ibid.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Travel Tips

Anthony Melchiorri, the host of the Travel Channel show “Hotel Impossible,” says he prefers to stay in a roadside motel over a luxury hotel – as long as it has good online reviews. In his opinion, the mom and pop ownership model often leads to painstaking efforts for cleanliness, fresh flowers and a home-cooked meal – not to mention personal recommendations for uniquely local places to visit in the area.1

After all, the accommodation industry is all about hospitality, and hospitality is about personal service. It doesn’t get more personal than running your own business. We feel the same way about working with our clients. We know you want to talk to familiar people when you call for information. At the end of the day, we’re all looking for that extra touch, the human connection, something that sets service above the rest. Please contact us anytime. We are here to help you with your retirement income strategy questions.

This desire for the personal touch remains true whether you’re at home or traveling. In a recent interview, Mr. Melchiorri offered some interesting advice for planning a vacation. For example:2

  • If you’re booking a hotel, check out its most recent reviews online at sites like TripAdvisor and Yelp. Even large chains get bad reviews, and some of those roadside motels get charming It pays to check before you book.
  • While you may want to use one of those shop-and-compare websites to find a hotel, once you make a selection go to the hotel’s actual website to make your reservation. The hotel website is guaranteed to offer the lowest rate – Melchiorri says a website like Expedia is not allowed to have a lower rate than the hotel. In addition, when you book through a third party, it can be more difficult to get your money back.
  • Remember that hotels and motels are in the hospitality industry, and the good ones want to ensure you are pleased with your stay. Melchiorri encourages travelers to ask for things they want – an upgrade, a poolside room, to be upstairs or downstairs, bottled water or fresh flowers in their room. If hotel staff can accommodate you, they most likely will.
  • If you encounter a problem, he suggests you first make a polite complaint, then escalate to a more direct aggressive complaint, and finally, express your displeasure with a scathing online review.

One way to save money on accommodations is on parking. Many hotels charge for onsite parking or valet service. Consider downloading an app to your smartphone to help you find less expensive parking options. These apps look for parking based on your location and show the least expensive options, which can yield as much as 50 percent in savings. Other apps can find all available transportation options between your current location and your destination, so you can choose the most convenient with the best price.3

If you want to learn about the history of an area you’re visiting, check out local museum deals. Some places offer free entrance either on certain days or all the time. For example, the Smithsonian in Washington D.C. and nearly every museum in London offer free admittance year-round.4

If you’re traveling abroad, before you leave home, make copies of your passport and driver’s license; leave one with a friend and tuck another into your bag. It’s also a good idea to take photos of them on your smartphone and load them up to a password protected cloud storage site. Having copies of important travel documents can alleviate a lot of hassle if the originals are lost or stolen.5

You also may want to spread your cash in a few different places, such as your wallet, in zipper pockets and in your hotel safe. Should you lose your billfold or get robbed, you won’t be left totally without cash.6

Content prepared by Kara Stefan Communications.

1 Beth J. Harpaz. Washington Times. Sept. 6, 2017. “Why ‘Hotel Impossible’ star likes a good roadside motel.” http://www.washingtontimes.com/news/2017/sep/6/why-hotel-impossible-star-likes-a-good-roadside-mo/?utm_source=RSS_Feed&utm_medium=RSS. Accessed Oct. 2, 2017.

2 Ibid.

3 Talia Avakian. Travel and Leisure. Sept. 30, 2017. “These 18 Easy Tips Can Save You a Fortune on Your Next Trip.” http://www.travelandleisure.com/travel-tips/save-money-while-traveling. Accessed Oct. 2, 2017.

4 Ibid.

5 Mike Shubic. Travelocity. Oct. 2, 2017. “12 Genius Travel Planning Tips.” https://www.travelocity.com/inspire/12-genius-travel-planning-tips/. Accessed Oct. 2, 2017.

6 Ibid.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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