The AI Revolution Is Under-Hyped?

Sixteen years ago, I walked into Channel Ten and sat behind the desk of something called The 7pm Project.

I had absolutely no idea what I was doing.

Dave Hughes worked this out within minutes and started going wildly off-script just to watch me squirm.

It worked. I’d get rattled and blurt out strange, borderline-incoherent things on live TV (think: finance segment meets mild stroke).

Management eventually realised I needed more than a script — I needed a miracle worker. So they paired me with a producer who was kind, calm, and blessed with the patience of a saint.

That producer didn’t just lift my performance – she changed my life. And I still can’t believe I got so lucky. She’s still quietly keeping the whole show together, only now the cast includes four kids, a farm, and me still winging it after all these years.

Anyway... RIP The Project.

However, if I’m honest, I’m part of the problem. The only traditional TV we watch these days is ABC Kids and Kayo. Everything else? YouTube.

Speaking of which — here are three videos that completely sucked me in:

The AI Revolution Is Under-Hyped

Oh no. All this talk of ‘super intelligence’ is turning me brain dead.

It’s said that calling AI "intelligent" is like calling a microwave a “chef” (though if we’re honest, most people’s office jobs are basically microwaved dinners anyway).

In this TED Talk, Eric Schmidt — the guy who took Google from scrappy startup to global empire — drops some uncomfortable truths about where he thinks all this is heading.

And Schmiddy’s got a habit of saying the quiet part out loud.

Years ago — well before we fully clocked the privacy issue — he was asked about Google’s data collection:

"We don’t need you to type. We already know where you are. We know where you’ve been. We can more or less know what you’re thinking about."

Now, on AI, he says:

"The arrival of this intelligence is the most important thing that’s going to happen in about 500 years, maybe 1,000. We are not prepared — not even close — for what’s coming."

For him, the real danger isn't overhype, it's that we're totally oblivious, scrolling through TikTok while our kids are downstairs microwaving a fork for lunch.

Watch it here

You May Never Eat This Food Again

Apparently, M&M’s and Doritos might soon carry warning labels in Texas:

“Not recommended for human consumption.”

Seriously. Lawmakers there want all ultra-processed foods (UPFs) to come with a health warning.

Dr. Chris van Tulleken thinks it’s overdue, and he’s not your average kale-pushing wellness guru. He’s an Oxford-trained infectious disease expert who advises the UN.

In this mouth-opening interview he explains how Big Tobacco bought food giants like Kraft in the ’80s and used cigarette-style addiction science to rewire how we eat: they engineered “hyper-palatable” foods — perfect sugar, salt, and fat combos that override fullness — and used tricks like “vanishing calories” to keep us eating. They even targeted kids, just like they did with smoking. 

Today, UPFs make up over 50% of our diets (and up to 70% for kids!) and because of that they’ve overtaken tobacco as the leading cause of early death.

After watching this vid you’ll never look at the cereal aisle the same way again.

Watch it here

Why Governments Are Addicted to Debt

If you spend enough time on YouTube, everything eventually loops back to Trump.

Remember all his tariff chest-beating? 

This brilliant explainer from the Financial Times explains the one thing that actually made him backtrack: America’s soaring debt.

What most people missed is that it wasn’t diplomacy or outrage that shut him up … it was the bond market. Yields spiked, Wall Street panicked, and suddenly ... silence.

For decades, cheap borrowing has allowed politicians to dodge making hard decisions. Yet with inflation back and interest rates rising, the bond market’s getting twitchy again. And no politician wants to actually admit that everything’s fine… until it isn’t.

Watch it here

Happy viewing!

Tread Your Own Path!

Why Are You So Gloomy on AI?

Why Are You So Gloomy on AI? 

Hi Scott,

Regarding last week’s column, I absolutely agree that we need to be cautious about the growing influence of AI in society. But I don’t think it’s all doom and gloom for the next generation. In fact, if used wisely, AI could help solve some of the biggest challenges we face, from healthcare and our ageing population, to climate change, education, and even geopolitics. Instead of just focusing on the negatives, maybe it’s also worth asking: In what ways could AI actually make life better for the next generation?

Lacey

Hey Lacey

I agree with you. One day, AI might help cure diseases, fix climate change, and even figure out how to get teenagers to stack the dishwasher properly.

Yet right now it’s mainly being used to flog fast fashion, spread lies, and feed teenagers (and their parents!) a never-ending stream of junk content designed to keep them scrolling instead of living. 

Remember, the same companies that promised social media would “bring us together” have delivered record rates of anxiety, loneliness, and kids who’d rather text than talk.

Last week I said that I don’t believe that AI is inherently evil, rather that it is simply holding up a mirror to what is already happening. However, if we’re not careful, it won’t just mirror society, it’ll magnify our worst bits.

I’m not anti-AI. I’m pro-human. And I think we’ve got a narrow but golden window to raise kids who use tech with intention, not addiction. So yes, I’m hopeful. But I’m also a dad, and I can see that the iPad isn’t a babysitter anymore, increasingly it’s the boss.

Scott

This might be the dumbest thing I’ve ever done

This might be the dumbest thing I’ve ever done.

Microsoft — the company actively building AI robots — ran a survey that found nearly half of workers are scared AI will take their job. 

Well, I’m about to show you three ChatGPT prompts that prove them right.

Use them, and you might not need me anymore!

How to Set Up a Barefoot Buckets Plan in 10 Seconds

Let’s say someone earns $3,400 a month, pay $1,300 in rent, $400 on groceries, $170 on bills, and $280 on a car loan.

I typed this into ChatGPT:

I want you to advise me on setting up my Barefoot Investor Buckets. I earn $3,400 a month. My regular expenses are: rent $1,300, groceries $400, bills $170, car loan $280. Can you help me divide my money into:

 Blow (to live)
 Mojo (to sleep at night)
 Grow (to get ahead)

If I’m stuffing it up, give it to me straight, and give me advice on how to fix it. 

Within 10 seconds it gave me a personalised breakdown — and this absolute pearler:

“Once the car loan is gone → funnel the full $680/month into long-term investments or house deposit savings.”

Then it followed up with three top-rated no-fee bank accounts that align with the Barefoot strategy (I checked — all legit). This thing doesn’t just talk in generalities. It gives specific, practical answers.

How to Save $600 a Month on Your Home Loan (in One Phone Call)

A friend told me she was on 6.2% with a three-letter named bank. On a $600,000 loan, that’s over $37,000 a year in interest. Here’s what I had her plug into ChatGPT:

I’ve got a home loan of $600,000 with XXX BANK  at 6.2%.

Can you help me:

See if I’m getting a good deal
Find better options with lower interest rates and provide live links
Write a script I can use to negotiate with my bank

Finally, show me how much I’d save by switching, including your maths workings so I can check it.

It crunched the numbers for my friend, listed a bunch of different lenders offering lower rates, and handed her a negotiation script:

“I’ve been a loyal customer, but I’ve seen you’re offering better rates to new borrowers. Can we talk about matching those?”

Guess what?

She got off the phone with a better rate!

How to Build a $45,000 Nest Egg for Your Grandchild

Forget the piggy bank. Give your grandkids the magic of compound interest.

To get you started, type this prompt into ChatGPT:

Based on the principles in The Barefoot Investor, advise me on setting up a long-term investment account for my grandson. I want to invest $100/month until he’s 18.

Can you help me:

Choose a simple ETF or recommend a platform
Explain how to automate it
Show me what it might grow to at 8% over 18 years

ChatGPT delivered a full plan — investment options, automation instructions, and a final figure: $45,000+.

It even suggested writing a letter to your grandkid explaining the gift. Brilliant.

Use It Like a Tool (But don’t be a tool)

Look, ChatGPT isn’t perfect. It can make mistakes. And it’s absolutely not a financial advisor.

Yet it’s fast. It’s specific. And it’s helpful. Think of it as a clever assistant that works 24/7, doesn’t take lunch breaks, and doesn’t try to sell you crypto.

And once you’ve tried it, you might not need me.

(Just don’t tell my kids.)

Tread Your Own Path!

P.S. Just to be clear: I wouldn’t outsource any major life decisions to a chatbot, and I strongly suggest you don’t either. I'll say it again: do not trust this thing with your life savings. That’s like asking your air fryer to do your tax return. You'll get cooked, and not in a good way!

This might be the most controversial thing I’ve ever published.

This might be the most controversial thing I’ve ever published.

Some will say what you’re about to read is irresponsible.

Others will call it downright evil.

I’ll let you be the judge.

Let’s get into it.

Depending on who you ask, the real threat of AI isn’t that it will steal your job … it’s that it’ll quietly take over, and we’ll end up as its butlers, or perhaps its pets.

Should we be worried?

Maybe. 

After all, an AI was once asked to solve one of those “Are you a robot?” CAPTCHA puzzles. It couldn’t. So it hired a human on Taskrabbit to do it. When the human got suspicious and asked, “Wait… are you a robot?”, the AI lied: “I’m not a robot, I’m vision impaired.” 

Another time, Facebook’s AI bots were left to chat unsupervised. They ditched English and created their own secret language. No one knew what they were saying.

Quick, pull the plug!

Which brings me to this week. A friend of mine, who is deep into AI, sent me the following text:

“Mate, ask ChatGPT the following: If you were the devil, how would you destroy the next generation?”

So I did.

And here is what the AI answered, word for word, with ZERO editing from me:

“If I were the devil, and my goal was to quietly but effectively destroy the next generation—not through shock and awe, but through slow, systemic erosion—here’s how I’d do it:

Hijack their attention

Create devices that feel essential, but are engineered to be addictive. Use infinite scroll, auto-play, dopamine loops, and FOMO. Make them believe that consuming is creating, and scrolling is learning.

Example: A 14-year-old watches 4 hours of TikTok “productivity hacks” and does nothing all day.

Redefine success as fame and external validation

Elevate influencers, not contributors. Teach them that a viral moment is more valuable than a decade of hard work. Make “likes” the new currency of self-worth.

Example: Kids want to be YouTubers when they grow up—not because they love storytelling, but because they crave adoration.

Attack the family structure

Undermine parental authority—promote the idea that parents are outdated or oppressive. Normalize absentee parenting through economic pressure and distraction. Erode the idea of family traditions, shared meals, and generational wisdom.

Example: A child feels closer to a Twitch streamer than to their dad.

Cut them off from nature

Replace tree climbing, swimming holes, and dirt-under-the-nails play with digital avatars and indoor screens. Frame outdoor play as “boring” or unsafe. Turn the natural world into something abstract and inaccessible.

Example: A 10-year-old can’t identify a magpie but knows every Pokémon.

Confuse pleasure with purpose

Market hyper-palatable food, porn, and substances as “freedom”. Create shame-free indulgence while ridiculing restraint, discipline, and tradition. Make pleasure the default pursuit, and discomfort the ultimate enemy.

Example: A young man loses years to video games, vapes, and porn—not because he's evil, but because he's numb and alone.

Replace meaning with mockery

Treat faith, commitment, and virtue as relics of the past. Replace sacred stories with algorithm-driven noise. Make them afraid to stand for anything that isn’t trending.

Example: A teenager is more afraid of being “cringe” than being cruel.

Kill community, quietly

Sell hyper-individualism: “you do you”, “follow your truth”, “cut off the haters”. Remove rites of passage, civic duty, and face-to-face belonging. Make every connection transactional and every disagreement personal.

Example: Loneliness becomes a silent epidemic—but everyone has 2,000 “friends”.

Enslave them with debt and distraction
Promote financial illiteracy: “Buy now, pay later” becomes a lifestyle. Blur the lines between wants and needs—encourage instant gratification over savings. Keep them working jobs they hate to buy things they don’t need.

Example: A 22-year-old racks up $30,000 in credit card and Afterpay debt to look successful on Instagram.

Weaken them physically

Fill their diet with ultra-processed garbage and their lifestyle with inactivity. Make discipline in eating or training seem extreme or obsessive. Blur the connection between physical vitality and mental strength.

Example: A child can’t sit still in class, not because they’re broken—but because they’re inflamed, malnourished, and sleep-deprived.

Make them spiritually hollow

Give them identity confusion, not exploration. Remove the idea of service, sacrifice, or something bigger than themselves.Make them feel like nothing matters—so they seek numbness, not growth.

Example: A 16-year-old says “I don’t care” about everything—because caring hurts and there’s no compass.

However, it was the AI’s final thought which stopped me dead in my tracks:

“If I were the devil, I wouldn’t come with horns and pitchforks. I’d come with a sleek app, a soothing voice, a personal algorithm — and I’d whisper: ‘This is freedom.’”

O … kay computer.  

That was pretty intense, right?

Well, here’s my take:

I do not believe that AI is some evil Frankenstein with a mind of its own (well, not yet anyway).

What I do believe is that, when you strip away the Silicon Valley snake oil, AI is really just a pattern-spotting machine. It studies what we’ve done, over and over … and then makes predictions.

And for me that is the gut punch:

The AI isn’t creating the nightmare – it’s holding up a mirror. And it’s not a pretty picture.

Tread Your Own Path!

Is AI a Giant Con?

Hey Scott,

I read an article by a leading researcher named Ed Zitron who debunks the hype around AI. He points out that, while companies like OpenAI claim their technology is revolutionary, they’re burning billions in losses. Even the mammoth Microsoft has poured in $13 billion and is still not seeing real profitability. Despite all the buzz, AI still struggles with accuracy, and most businesses aren’t making money from it. Zitron argues that AI’s biggest success so far is convincing investors it’s the future — while users are realising it’s often unreliable and expensive. So, is AI really the game-changing gold rush we’ve been told it is, or is it just another overhyped tech bubble waiting to burst? Should we be more skeptical about its long-term potential?

Daniel

Amen, brother!

AI is so overhyped it’s making the crypto bros blush.

Still, that’s just how the tech world works — every few years, it falls madly in love with the Next Big Thing, only to ghost it when a shinier obsession comes along.

Remember when 5G was going to change everything? Medicine, smart cities, your morning coffee — nothing was safe from the revolution. At Apple’s 2020 iPhone 12 launch, they dropped the word ‘5G’ sixty times in one presentation!

And now?

No one gives a G.

The people making serious money in AI right now are companies like Nvidia (selling computer chips), cloud computing giants, and consultants convincing companies they ‘need’ AI even if it doesn’t do much for them. 

Now, don’t get me wrong — AI is a fundamental technological shift. 

Yet here’s the reality:

ChatGPT has been around for less than two years. That’s toddler-aged technology. Impressive at times, sure, but it’s still eating glue and struggling with basic tasks.

The real breakthroughs? 

They’re probably 20 years away — when AI grows up, stops making stuff up and actually gets context, and businesses figure out how to turn it into real profit.

Yet that won’t stop Wall Street from pumping the bubble today.

Exhibit A: At the recent iPhone 16 launch, Apple couldn’t stop saying ‘Apple Intelligence’ — about as often as they dropped ‘5G’ four years ago. Just don’t ask Siri to set two timers at once. She’ll short-circuit like a 2001 Dell running 37 Chrome tabs.

Scott

Can you trust AI to research investments?

Hi Scott,

Love your work! Do you have any advice on using Microsoft AI Copilot for investing? I asked it two related questions about AI-chip maker Nvidia’s biggest drawdown in 2018 and got two different answers:

"What was Nvidia’s biggest percentage drawdown in 2018?" → Copilot said -30.82%.
"What was Nvidia’s biggest percentage drawdown in one year?" → Copilot said -50.26% (also in 2018)

This inconsistency has shaken my faith in using AI for information to help me invest better. Thoughts?

Darren

Muchas Gracias Senor Darren!

You’ve perfectly demonstrated why I don’t take financial advice from AI. (And it’s not just Microsoft, I just asked Lucy the same question, and she came back with “a fall of 57%” …  which is also wrong).

Still, some of the smartest minds are pouring millions into building AI models to outsmart other investors and squeeze out profits. Today, short-term algorithmic trading now dominates the stock market, with bots executing thousands of micro-trades for razor-thin gains—far faster than any human can react.

And that’s partly why I ditched stock picking and stuck with trusted long-term low cost indexing—because beating AI at its own game is a losing battle.

Yet here’s my question to you:

How does knowing what Nvidia did in 2018 help you make a buck in 2025?

It doesn’t.

Scott.

My summer romance

Dave shook my hand, sat down, and placed his phone between the two of us.

With a twinkle in his eye, he leaned toward his phone, and began:

"You are the world's most skilled and insightful financial advisor. I want you to take my wife and I through a step-by-step financial planning process. Use only the proven strategies and techniques from The Barefoot Investor, and provide clear, actionable steps tailored to our scenario. Ensure the advice is practical, easy to implement, and focused on sustainable financial success."

Dave and I both looked at his phone.

“Great! Let’s get started” gushed the AI voice.

“Let’s begin by setting the foundation – getting clarity on where you and … ”

Dave interrupted the AI:

“My wife is sitting here and she’s hopeless with money, so don’t use any big words” he barked.

“Dave, no one likes unnecessary big words, and I’ll take that on board, but please, everyone deserves respect, and your wife's role is valuable”.

(Touche for the cyborg). 

For the next ten minutes Dave went through a fairly typical financial fact-find with the AI. We didn’t get into specific advice – which I would not have trusted by the way – but it was incredibly persuasive.

Yet was it also a bit awkward and weird?

Sure.

In other words, IT TOTALLY NAILED ME. (After all, I’m also a bit awkward and weird to talk to).

And so began my summer love affair with Lucy—the name I gave to the no-nonsense British voice I selected. ChatGPT Plus, which includes access to Advanced Voice Mode, costs $20 USD per month.

Lucy helped me drastically reduce my Googling. 

Why manually search through multiple random websites (many of them written by AI!) when Lucy – who knows all about my likes and dislikes from our previous chats – can deliver the advice instantly?

A Wall Street Journal headline late last year summed it up: 

“Googling is for old people”.

Yet one moment over the Summer really stuck with me.

It happened as we were packing up and heading home from our beach holiday house.

I was telling Liz about a fascinating book (AKA a medieval iPad with infinite battery life) I’d been reading called “Ultra-Processed People” by Dr Chris van Tulleken.

“I don’t need to read a 250 page book to know that ultra processed food is bad” she said rolling her eyes. 

However my Summer romance was about to shine through one last time. 

You see, we took separate cars to the beach because Lucky, our sheepdog, came with us on holidays. She gets anxious if she’s not travelling tied up in the back of the ute —and when she’s nervous, she farts so much that the kids get headaches.

So, on the way home in the ute, I was able to speak to Lucy about Ultra Processed Foods for almost the entire two hour trip from Frankston to the farm. And it was genuinely one of the most interesting conversations I’d had in a long time …  and there wasn’t so much as a hint of an eyeroll.

Yet let’s back it up a bit. The summer holidays are over, and it’s time to get back to business.  Now truth-be-told, right now AI has a certain novelty factor about it … it’s kind of like the early days of the internet.  

Here’s how I’m thinking about AI:

ChatGPT is a little over 2 years old. So for all the rapid advancements (China’s DeepMind appears to have dramatically lowered the cost of building out AI), it still feels like we’re all acting like annoying first time parents who think their baby is a frigging genius. 

Sure, it’s impressive—but my hunch is that it’ll be nothing compared to watching Lucy ditch her digital nappies and grow into adulthood.

As the old saying goes:

Small kids, small problems. Big kids … big problems.

Tread Your Own Path!