Generative Artificial Intelligence
Robertson Velez, Portfolio Manager for CIBC Asset Management discusses the future of Artificial Intelligence and what it means for investors.
Generative artificial intelligence – What investors need to know
[Energetic music]
[CIBC logo]
[Generative artificial intelligence – What investors need to know]
[Robertson Velez
Portfolio Manager, Global Equities
CIBC Asset Management]
What's unique about my background is that I come from two worlds. After graduating from university with my computer engineering degree, I spent the first 12 years of my professional career as an engineer where I designed semiconductor chips in the computer graphics industry.
I later graduated from an MBA program and I switched to finance, where I have spent the last 15 years on the “buy” side covering technology stocks as an analyst and then as a portfolio manager.
[What is generative AI?]
Artificial intelligence is not a new field.
[An older-looking computer display screen with a headline of text reading “Welcome to Eliza}”, and underneath a text conversation between two characters (“You”, and “Eliza”,) in which they discuss “You’s” problems with men. A small, two-wheeled robot slowly maneuvering through a hallway (Auat Cheein F, Lopez N, Soria C, di Sciascio F, Lobo Pereira F, Carelli R, CC BY 2.0, via Wikimedia Commons). An empty self-driving car driving on the street.)
We’ve actually been doing it for many decades. What has changed is that with the most recent iteration, which is generative AI, we're able to do a lot more. Write essays, write code, create videos, create graphics.
[A computer application interface. Topmost line of text reads “Write an essay about the history of finance”. In a box below, an essay with the title “Title: The Evolution of Finance: A Journey Through History” appears, and an essay begins self-generating.]
And this has the potential to allow us to interact with machines in a whole new way.
[How will AI use evolve?]
We have seen AI used in voice recognition, image recognition, chatbots and recommendation systems.
[A woman carrying her newborn baby boy asks a question to a smart speaker. A brain scan image showing four different angles of a brain. A ‘chat’ app interface showing a text conversation between a woman and a chatbot, with the woman booking a reservation at a restaurant.]
Going forward, looking at generative AI, I see three areas where we would see potential new use cases.
[Potential use cases for generative AI:
1. Content creation and productivity
2. Search queries
3. Data analytics and customer interaction]
One is in productivity. Word processors, spreadsheets.
[Changing data on spreadsheet. Young professional woman sitting at an office desk using a desktop computer showing charts and graphs. A woman looking at data on screen; the data is reflected in her glasses.]
They would incorporate generative AI to help create content. And this can be applied to graphics creation as well as coding.
Secondly, I see potential in revolutionizing search where users can put in more complicated queries and get better, more structured answers to those queries. And that would revolutionize the way that we interact with businesses online.
And third, there's also the potential for all these businesses to make use of its troves of data that it's collected about its customers and use that data, and generative AI to be able to serve those customers and interact with them in a much more comprehensive way.
[A drone POV of a busy urban pedestrian crossing, with minimalist graphics overlaid onto the people walking around. A busy shopping mall with graphics of moving numbers overlaid on top.]
[Lessons from previous tech innovations]
So in previous technology revolutions, investors often fall into the trap of overestimating the short term and underestimating the long term. So in the case of the internet for example, we did see a sharp correction in 2000 because investors were overly exuberant about the short-term promise of the internet.
[MSCI World Information Technology vs. MSCI World
(Data Source: †Morningstar Direct June 19, 2023)
A chart with two line graphs: one plotting “MSCI World/Information Tech GR USD” and one plotting “MSCI World GR USD”. Date range on the x-axis is 1995 to 2004. Y-axis shows values for “Growth of $10,000”, with values ranging from $0 to $90,000. The line graph for “MSCI World/Information Tech GR USD” animates to show a sharp rise then drop from about 1998 to 2002, with the value beginning at about $20,000, rising to a high of about $80,000, then dropping back down to about $20,000.]
But you look out the next two decades, the potential of the internet has been realized by more than the expectations in the initial hype.
[The previous chart now zooms out to show a date range from 1995 to past 2020, and values from $0 to over $250,000. Starting in the mid 2010’s, the value of “MSCI World/Information Tech GR USD” begins spiking upwards to a high of nearly $250,000 at the current date.]
So it's important for long-term investors to have a clear view of the potential of new technologies both in the short term and the long term.
[Threats of AI?]
I think every new technology is always greeted by some trepidation about the potential risks.
[An old black and white photo of a radio tower. An old black and white photo of a nuclear plant. Old black and white footage of fashionable women arriving at a location in a car. A space shuttle launch. A satellite orbiting the earth. Robotics engineers watch and discuss a robot arm in motion.]
But generally speaking, revolutionary technologies have provided more benefits than harm to society, and we've always successfully navigated the risks. I think the same applies to AI. There are clear risks in letting machines take over human functions. But what is important to remember is that AI is meant to replace human prediction, not human judgment. So as such, I think that some type of regulatory framework makes sense. But it is a fine line and a fine balance between protecting society against possible AI threats and inhibiting new technologies before the potential is realized.
[Investor’s perspective]
I think we're still at early stages of development for generative AI, and there is a lot of noise in the near term. Practically every company claims to be incorporating generative AI into their products and services. So it's important to understand the value chain to determine which companies really benefit from generative AI and why. It's also important to be very selective in that process as performance is determined as much by what we don't own as what we do own.
So in the global technology funds, this is what we do.
[A screenshot of the webpage for the CIBC Global Technology Fund. A screenshot of the webpage for the Renaissance Global Science & Technology Fund.]
We follow a disciplined process to find these opportunities in a concentrated portfolio of stocks to generate alpha over the long term, while managing the risks in the near term.
[Talk with your advisor to learn more about
the CIBC Global Technology Fund
and the Renaissance Global Science & Technology Fund]
[The views expressed in this video are the views of CIBC Asset Management Inc. and are subject to change at any time. CIBC Asset Management Inc. does not undertake any obligation or responsibility to update such opinions. This video is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice, it should not be relied upon in that regard or be considered predictive of any future market performance, nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this video should consult with their advisor. All opinions and estimates expressed in this video are as of the date of publication unless otherwise indicated, and are subject to change. Any information or discussion about the current characteristics of this fund or how the portfolio manager is managing the fund that is supplementary to information in the prospectus is not a discussion about material investment objectives or strategies, but solely a discussion of the current characteristics or manner of fulfilling the investment objectives and strategies, and is subject to change without notice. You should not act or rely on the information without seeking the advice of a professional. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
CIBC Asset Management and the CIBC logo are trademarks of Canadian Imperial Bank of Commerce (CIBC), used under license.
The material and/or its contents may not be reproduced without the express written consent of CIBC Asset Management Inc.
†©2023 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
[CIBC logo]
[The CIBC logo is a trademark of CIBC, used under license.]
Email fraud and how to avoid it
This video highlights the latest types of email scams, how to stay vigilant and prevent them.
Email fraud and how to avoid it
[CIBC Private Wealth logo]
[Soft music plays]
[A woman looking at a laptop]
[Email fraud and how to avoid it]
Email fraud is common, and we’re all targets. This widespread criminal industry has totaled over
4 billion dollars in misappropriated funds.
[Animated numbers increasing from about $3,900,000,000 to about $4,200,000,000]
[Source: Federal Bureau of Investigation, 2020 Internet Crime Report]
It usually happens in one of two ways:
Firstly - False email accounts.
[A still image of a man looking at something on a tablet]
[1. False email accounts]
A fraudster creates a false email account to look like a trusted person or company.
[An icon of the head of a robber, with an arrow pointing at an envelope with a piece of paper
with the of the robber on it.]
Their goal is to access your private information, to access your money.
[An email inbox. One email is highlighted – the sender is ‘Revenue Agency’, and the subject
reads: ‘Urgent: Please confirm login credentials’.]
For example, you may get an email or text about an incoming Interac eTransfer.
[A text message on a phone, reading: ‘Hi Cindy, click the link to accept your e-transfer:
bit.ly/1sNMQw]
You click on the link and get sent to a fraudulent webpage.It looks like the real thing, but it was
created by the fraudster. You input your card number and password.
[A homepage for a banking website. In a blank field for ‘Card number’, a card number appears.
In a blank field for ‘Password’, a password appear.]
The fraudster then has your digital fingerprint to bypass security by pretending to be YOU. Other
common misleading scams can be about package deliveries, gift cards or timeshares.
[Package deliveries
Gift cards
Timeshares]
The second way that email fraud tends to happen is an email account takeover.
[A still image of a woman looking at a computer]
[2. Email account takeover]
In this case, the fraudster hacks into a real account.
[An icon of a robber and an icon of a desktop computer. The robber icon enters into the icon of
the desktop. Arrows followed by an envelope with a piece of paper with the ‘@’ symbol inside
begin emerging from the desktop.]
Once they’ve accessed it, they can start sending emails from that account, pretending to be the
owner. And with access to all of the owner’s emails, the fraudster can find sensitive information
and use it to make the impersonation seem authentic. Takeovers of email accounts can happen
to anyone, including trusted professionals.
[Takeovers of email accounts can happen to ANYONE]
Here’s an example: you’re buying a cottage, and your lawyer’s email gets compromised by a
fraudster, who then goes into past emails to gain information about your purchase.
[An email inbox. One email is highlighted – the sender is ‘Cindy Smith’, and the subject reads:
‘Transfer funds for Gold Lake Cottage purchase’.]
[An email body. The subject heading, partially cut-off, reads ‘RE: Transfer funds for Gold Lake
Cottage purch-’. The sender of the email is Brendan Jones,
brendan.jones@realestatelawyers.com. The content of the email is mostly immaterial; the gist is
that this email contains information that could be sensitive.]
The fraudster then sends you an email pretending to be your lawyer, with instructions about
where to wire money before the closing date. You assume it’s authentic and instruct YOUR
BANK to send money to the fraudster’s account. And your funds become irrecoverable almost
instantly.
[An icon of a robber in a desktop computer, on top of which is text that reads “’Lawyer’
(Fraudster)”. An arrow emerging from the computer points to an envelope with a piece of paper
with the ‘@’ symbol inside. Another arrow points from this envelope to an icon of a person, on
top of which is text that reads ‘You’. An arrow emerges from the person icon and points to a
telephone icon. An arrow emerges from the telephone icon and points to a bank icon, on top of
which is text that reads ‘Your bank’. An arrow emerges from the bottom of the bank icon,
pointing left, back towards the desktop icon. Dollar bill icons begin emerging from the arrow and
move towards the desktop icon, and eventually disappear into the desktop icon.]
Here are some tips to avoid getting hacked:
Follow up with a phone call to confirm instruction details first of all with the recipient of the funds
(your lawyer in the previous example) and also phone your bank.
[Tip #1
Follow up with a phone call]
[An icon of a robber in a desktop computer, on top of which is text that reads “’Lawyer’
(Fraudster)”. An arrow emerging from the computer points to an envelope with a piece of paper
with the ‘@’ symbol inside. Another arrow points from this envelope to an icon of a person, on
top of which is text that reads ‘You’. An arrow emerges from the person icon and points
downwards to a telephone icon. An arrow emerges from the telephone icon and points to a
person icon, on top of which is text that reads ‘Your lawyer’.
Another arrow emerges from the ‘You’ person icon and points to a telephone icon. An arrow
emerges from the telephone icon and points to a bank icon, on top of which is text that reads
‘Your bank’.]
- This is especially important for emails involving large financial transactions. And be sure
to use the phone number in YOUR RECORDS rather than one that is emailed to you as
the number may have been altered by the fraudster. A short phone call could be worth
thousands or millions of dollars.
[In illustration of a cellphone. The screen shows contacts, including ‘Brendan (Lawyer)’ with their
phone number highlighted beneath. An email body appears beside the phone. The subject
matter is mostly cutoff from view and immaterial; of primary importance is a highlighted line that
reads ‘To confirm, please call 516-284-3617.]
[Tip #2
Use strong passwords]
- Use STRONG passwords.
- Many of us use very ‘hackable’ passwords.
- For example, 24% of people use ‘Qwerty’, ‘password’ or ‘123456’.
- Avoid passwords which follow a simple pattern.
- Use random numbers and, where possible, randomize using letters and special
characters.
- And finally: a passPHRASE is better than a passWORD.
[An account sign in screen for the fictional character Cindy Smith. An empty password field is
field with several different passwords in succession, to correspond with the preceding
voiceover.]
- Create UNIQUE passwords ESPECIALLY for your email account.
[Tip #3
Create unique passwords]
- Two out of three people use one password for ALL of their accounts. But this is
dangerous, as most email compromises are because of re-using passwords. Keep these
passwords secret; don’t tell anyone or email them, not even to yourself.
[Four different account sign in screens for the fictional character Cindy Smith. Each screen uses
the same password.]
[Keep passwords secret]
- And consider using a password manager. This enables unique passwords for each login
and takes away the stress of remembering them all.
[A password manager webpage showing over a dozen different passwords for different
purposes (for example, ‘Bank account’, ‘Personal email account’, ‘Social media account’, etc.]
[Tip #4
Think before you click!]
- THINK before you click. If you’re not sure about a link’s source, find the website
separately to ensure it’s genuine.
[A homepage for a banking website.]
- Watch out for phrases like ‘unusual transaction detected’ or ‘please login.’
[An email inbox. One email is highlighted – the sender is ‘Revenue Agency’, and the subject
reads: ‘Unusual transaction detected – please login’.]
- Malicious emails often sound urgent to compel you to act now. And remember: CIBC will
NEVER e-mail you and ask your for passwords, social insurance numbers and other
confidential information.
[CIBC will never email you asking for
passwords
social insurance numbers
confidential information]
[Tip #5
NEVER open attachments unless you’re expecting them]
- NEVER open attachments unless you are expecting them from the sender.
We hope you now better understand email fraud and how to avoid them. CIBC remains vigilant
and on high alert, and we do everything we can to protect our clients.
[A montage of a variety of still photos showing different people on computers and tablets and
talking on phones.]
With a little help from you, we can make sure that we’re working together to create the safest
possible environment for you and your assets.
[CIBC Private Wealth logo]
[The CIBC logo and ‘CIBC Private Wealth’ are trademarks of CIBC, used under license.]