The Weekend Edition is pulled from the daily Stansberry Digest.

People wanted to hang Thomas Edison...

Unexpectedly, that's one of the first things we learned during our recent artificial-intelligence ("AI") event.

We shouldn't be surprised at this point. I've been working with Stansberry Research partner and Retirement Millionaire editor Dr. David "Doc" Eifrig for several years now. And every time he speaks, I tend to learn something...

Often, I can't imagine coming across that information in any venue where Doc – a former Goldman Sachs trader, board-certified eye surgeon, and overall renaissance man – isn't speaking.

That goes for our recent event – which focused on the buzz about AI today... everything from the fear surrounding it to the opportunity. Doc and our friend Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, shared the stage, and they brought on a surprise special guest.

More on that in a second...

But first, let's get to the people who wanted to hang Edison, the famous inventor and developer of such things as the phonograph (which could record sound with a microphone and play the sound back), early versions of the electric lightbulb, the motion-picture camera, and a lot more.

Where did that nugget of info fit into a discussion about AI?...

Well, it turns out, people have always been fearful of new technology.

As Doc told the story, the New York Times published an editorial in 1878 suggesting that "something ought to be done" with a "hemp rope" to Edison. Why? For his development of the phonograph and an early form of the microphone...

As Doc said...

Can you imagine what the world would look like today if we'd never invented the microphone?

Still, just like the fear of new technology back then, Doc said he understands the skepticism today around AI...

In fact, he has his own concerns, particularly with folks who are projecting out the potential wealth it will create in the years ahead and the impact it could have... Nobody can know for sure, he said.

But Doc also takes issue with the idea that AI will inevitably lead to rampant unemployment – such as the suggestion made recently by Goldman Sachs that the equivalent of more than 300 million full-time jobs worldwide could be at risk. That echoed an idea that Marc also shared...

You might remember how it felt when the hit the scene... People said similar things about the Internet as well. If you recall, every single one of these innovations created both fear and opportunity.

So, this is the first thing we learned – and were reminded of – during this event...

If anything, and like many other technological advancements over the years, AI will create both fear (hang Edison with a hemp rope!) and opportunity (think of all the things that have been done with a microphone since the late 1800s, or the PC, or the Internet)...

Here are five other takeaways from Doc and Marc's big AI presentation...

We're always going to need people...

It's true that "automation" – which uses AI – can eliminate some jobs completely. It already has in the production of automobiles and other industries, for instance.

But as Marc said, over history, we the people are always "needed"... just in different ways. It's like how "horsepower" was transferred to automobiles. As Marc said...

Everyone is trying to understand what to do with this technology and how they can apply it in their business. They're going to need people to do that. The same thing happened when the steam engine was introduced and when the automobile was introduced later.

Fear is a powerful emotion. Throughout history, there has always been some unscrupulous person who benefits from capitalizing on that fear. If you were a blacksmith who made horseshoes in the early 1900s, I'd understand why you were worried about the great threat of automobiles.

But the smart response wouldn't have been burning automobiles. It would have been learning how to make tires.

Of course, though, we can't know for sure right now what the long-lasting "tire like" innovations of the current AI era will be. And this brings me to another thing I learned...

Pure AI investing plays are hard to find right now...

Nvidia (NVDA) – a company that, in part, makes microchips that allow AI to function – has made a lot of headlines and returns as an AI play in 2023. But aside from that stock, Doc and Marc said, "pure" plays on artificial intelligence are hard to find.

ChatGPT, for example, is part of Microsoft (MSFT), but it's more of a huge cost center than anything. More likely, existing profitable businesses will find ways to use AI to streamline their operations.

The more I heard them talk, the more I began to think of AI like the "cloud" or the "Internet" or "railroads." They are systems, ideas, and technologies that can be widely used and invested in but that no single entity can control (though some may try).

But people are going to find ways to profit using AI, too. Let me explain what I mean by that...

Invest with AI, not in AI...

Doc and Marc's surprise guest introduced this idea, which became the heart of the discussion as the night went on...

I can't give too much detail away here, but viewers were offered an exciting way to use AI and machine learning to their advantage in their own portfolios.

It's the first time I've really seen a way for individual investors to use AI and thousands of data sets and macroeconomic information (like interest rates, inflation figures, economic data, stock market volatility, and more) in an instant to make trading decisions.

Doc and Marc were impressed with how the tool could work in concert with their trading recommendations... Marc mentioned that his pioneering Power Gauge acts similarly, tuning out the mainstream noise and looking at what's really happening with money in the market.

It's why he was able to turn bullish earlier this year – with conviction. Marc said...

Just look at what the market has done this year. Most people are worried about commercial real estate. They are worried about their homes falling in value. They were worried about the debt ceiling, though that has passed. They are watching the war in Ukraine. They are wondering if a recession is coming.

But my analysis of the Power Gauge told me that we were in a new bull market back in January. I literally shouted it from a mountaintop anywhere people would listen.

Now we know the S&P is up 20% from its lows... But most people totally missed out on those gains because they were too preoccupied with the noise.

But the thing about humans is that it's very difficult to ignore that noise. That's why I've always believed that using a system to inform your investment decisions is the only logical way to invest.

The tool they were presented with was itself a system... and they felt it could be added to an investor's existing approach.

Both Marc and Doc said that folks using an effective AI tool could add an extra layer of confidence to their portfolio decisions. That could take the form of adding more analysis to the "bullish," "bearish," or "neutral" ratings in Marc's Power Gauge or the options-selling recommendations in Doc's Retirement Trader, for example.

Viewers were then treated to three free AI-based predictions...

To put this entire discussion into an example, viewers were then treated to a trio of free predictions about the short-term price action for three of the most popular stocks in America today...

This was information you could use right away... and still can by catching a replay of the event. Again, this is a totally free presentation. And this brings me to my final takeaway, which can apply to investing... or anything in life.

Use AI to your advantage...

I firmly believe that embracing AI technology rather than fearing it will work out better for us in the long run. I said this in response to a note a few weeks ago suggesting that AI would replace me as a writer.

No such luck yet... Maybe it could happen, but I feel it's less likely if we learn to use AI for our benefit. The technology can help us be more efficient and productive. Yet getting a project, idea, story, or daily financial newsletter through the finish line still requires a human.

For example, I asked Google's Bard AI – its version of ChatGPT – "What did Thomas Edison invent?" It answered first...

The American inventor Thomas Edison has been credited with the invention of the light bulb, phonograph, motion picture camera, and many other devices. However, while he did develop many important inventions, Edison was not the sole inventor of any of these devices...

In 1879, Edison successfully created a light bulb that could burn for 14 hours. This was a major breakthrough, as previous light bulbs had only been able to burn for a few minutes. Edison's light bulb was made with a carbon filament, which was heated by an electric current. The carbon filament would glow brightly and produce light.

The bot then even gave some helpful context (which does make me fear for my job a bit)...

Edison's light bulb was not an immediate success. It was expensive to produce and the filaments would often burn out quickly. However, Edison and his team continued to work on improving the light bulb, and by the early 1890s, it had become a popular household item.

But then in the same answer, Google's Bard contradicted itself, saying...

In addition to the light bulb, Edison also invented the phonograph, motion picture camera, and many other devices.

Which one is it? Did Edison invent all of those things, or was he "not the sole inventor of any of these devices," as written earlier? That's a human judgment one can make by using common sense and examining other sources about Edison.

AI is not perfect. It probably never will be. But, then again, humans are imperfect, too. Yes, AI technology will replace some jobs. But like a lot of other inventions – like the steam engine, the automobile, PCs, and the Internet – it will make a lot of other new things possible, too.

AI can give us more efficient transportation, commerce, and communication... And it can even allow individuals to use AI when investing, rather than just the mammoth Wall Street firms that have held that algorithmic edge on Main Street investors for years.

That edge could soon be in your hands. Don't be afraid to use it.

Good investing,

Corey McLaughlin

Editor's note: Be sure to listen to what Doc, Marc, and their special guest have to say about all things AI. Again, that includes three free recommendations... and clearing up some of the biggest misunderstandings you've probably heard about this technology. Plus, you'll get a look at the system that could help you add an AI edge to your portfolio.

If you missed the event, you can still watch a free replay, which you can pause and play at your own convenience... Check it out right here.