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Artificial intelligence is coming faster and more furiously than you might have imagined. It has the power to change our society, our economy, our health and our personal relationships in ways that might not be pleasant to dwell on.

But you can’t ignore its impact on your personal finances and on your investment decisions. So, instead of hiding from the impact of AI, you need a comfortable place to join in this movement — even if it’s only by using an app on your phone to answer questions that once required a trip to the encyclopedia!

So, let’s start with a chatbot. That's a term for an app or a web interface that you can talk to. Typically, you ask a question and it answers. Among the most popular and widely used chatbots are ChatGPT, Google Gemini, Perplexity and Microsoft Copilot.

Businesses and scientists use other programs to do everything from write code to solve tax issues to sort out legal precedents. But for most of us, the four chatbots mentioned above are a perfect introduction to the mysteries of AI. (And one of the best features of most chatbots is that you can use your voice to ask questions, instead of typing on your device.)

Once you’ve moved into this world of AI, you’ll see the speed and breadth of what these programs can do. Now, apply that by extension to the worlds of science, manufacturing, home-building, insurance, finance and every other business process. It’s like looking at a new universe.

You and I will never understand the complexities of this transition, much as we don’t really understand what’s “inside” our computers. And, in the same way, generations before us were mystified by how sounds (radio) and pictures (television) could travel through the airwaves. We simply accept those miracles, and use them in our daily lives.

Our children already live with the fact that artificial intelligence does things for them that their parents never imagined. No more learning the multiplication tables, spelling drills or even common grammar. What will they do with all that extra time at school?

There are two views of the impact of AI on the job market. We know for sure that millions of jobs will be replaced and done more efficiently and less expensively by AI. Is that good news or bad?

Futurist Dr. Bob Froelich recently opined that AI will be a huge benefit to society, not just in cutting costs but in making the economic pie larger. His example: Apple Air Pods can now translate foreign languages. Froelich says that “ends the tariff of language barriers” and opens the world to more efficient communication, and trade.

Froelich argues that you need to see the big picture of this transformation, arguing that railroads didn’t merely reduce the cost of shipping; they opened up the West. The transformation wrought by AI will take time — and in the process many jobs will be eliminated, just as light bulbs destroyed the candle business, and buggy whip makers were displaced by new jobs in the auto industry a century ago.

That transition will be painful for those caught in the middle. Froelich notes that while there will always be a need for plumbers and electricians, there won’t be as great demand for attorneys and accountants when AI is fully recognized. That could make a trade school degree more attractive, and valuable, than a general college education. (And that’s not my idea of progress, but it might be a reality.)

On the other hand, if AI reduces jobs and shortens the work week, how will we benefit if we only get paid for three days of work instead of five? And what impact will that have on our ability to buy the stuff that these profitable companies are making?

The stock market has boomed over the past year, excited by the possibility of more profitable businesses because of this new world of artificial intelligence. But in recent weeks, the market has become more volatile. There is a growing recognition that some most favored businesses may be negatively impacted by AI. The world of private equity and credit was disrupted first, amid concerns that loans to software companies might turn sour as their products are replaced by AI. And then the stocks of brokerage firms and financial advisory firms took a market hit. After all, what if AI chatbots can do the work of those financial advisers?

Markets always go to extremes. And the fear of AI will be as extreme as the hopes for AI to change our world for the better. You and I will never be able to accurately analyze the risks and benefits of this life-changing revolution. We can participate by broadly diversifying our investments. We can participate by using the most basic technologies. And we can participate by being open-minded about the possibilities.

The one thing we can’t and shouldn’t do is try to jump aboard a fast-moving train — or to stand in front of it. And that’s The Savage Truth.

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(Terry Savage is a registered investment adviser and the author of four best-selling books, including “The Savage Truth on Money.” Terry responds to questions on her blog at TerrySavage.com.)

©2026 Terry Savage. Distributed by Tribune Content Agency, LLC.