| By now, you've heard the incredible news. It's spreading around the world like wildfire. In November 2022, the revolutionary AI program ChatGPT made its public debut... and became a worldwide sensation. ChatGPT is a hyperintelligent computer program that can write novels, screenplays, Ph.D. dissertations and research papers... all in a way that is virtually indistinguishable from humans. Microsoft founder Bill Gates says ChatGPT is as significant as the invention of the internet and will "change our world." Google CEO Sundar Pichai has said AI is "one of the most profound things we're working on as humanity. It's more profound than fire or electricity." Then in March 2023, not long after ChatGPT stunned the business community, a new version, GPT-4, debuted and was even more powerful than the previous version. The uses of ChatGPT - and its implications - are beyond enormous, which explains why ChatGPT was adopted by more than 1 million people in just five days... the fastest rate of technological adoption in history. For a point of reference, it took Facebook 10 months to reach 1 million users... and over a year for Twitter. Let that sink in. It took Facebook 10 months to reach 1 million users. ChatGPT did it in just five days. The world is scrambling to grasp the implications here. Google executives called a "code red" meeting. Bank of America equity strategist Haim Israel advised clients that we are at an inflection point in history. "If data is the new oil, then AI is the new electricity," he wrote. And the mainstream media is still trying to catch up to the story. One group of people was not caught off guard by the seemingly sudden rise of AI in late 2022: the executives and research team at TradeSmith. Let me tell you a little about them... TradeSmith is one of world's leading investment data analytics firms. It employs a staff of 36 data scientists, software engineers and investment analysts who develop and maintain its investment software and market analysis algorithms. TradeSmith's team literally has hundreds of years of collective experience in the software development and data science fields. So it's no surprise TradeSmith and its team developed deep AI knowledge years ago. They've been using it for years to design strategies that help their customers beat the market. Their market-crushing, world-beating investment analysis programs? Those employ AI. Put differently, the folks at TradeSmith were AI experts before AI was cool. Now that AI is cool in the eyes of the media, they're seeing a lot of people writing about AI as if they are experts. People who can barely turn on a computer are claiming to be AI experts. Many of these people don't know artificial intelligence from artificial flavors. As a company that has integrated AI into its systems for years, TradeSmith can tell you that the hype around AI and next-generation data analytics is justified. As mentioned above, ChatGPT and other AI-powered programs can write novels, screenplays, Ph.D. dissertations and research papers... all in a way that is virtually indistinguishable from humans. But the list of ways AI has changed the way we live is longer than you might think. For example... - AI-powered data analytics is revolutionizing pro sports. When you watch an NFL game, probabilities and stats are all over the place. The Boston Red Sox finally won the World Series in 2004 because they used data analytics to field a winning team. The Chicago Cubs broke a long World Series drought with data analytics as well.
- In 1997, the AI program Deep Blue defeated the world's best chess player.
- In 2016, an AI program defeated a world-class Go player. (Go is much more complicated than chess, so the victory was a major milestone in computer history.)
- AI can now beat the best cancer doctors at spotting cancer on X-rays.
- Uber uses AI to dispatch drivers and link them with customers.
- Amazon uses AI to recommend potential purchases to you.
- Facebook uses AI to arrange and customize its news feeds.
- Dating sites like Match.com use AI to help people find potential soulmates.
- Healthcare firms are using AI to scan DNA, blood and test results to spot problems with greater accuracy than human experts.
- Recruiting firms are using AI to sift through résumés and job applications and recommend the best candidates. No humans needed.
Right now, many people are saying, "The AI revolution is here." My friends at TradeSmith and I say, "You're right! It's been here for a long time. You just weren't aware of it." Really, Really Powerful Software At its core, AI is simply just really powerful software running on really powerful computers. If you've paid attention to the biggest tech and business trends of the past 30 years, you know why that is such a big, big deal. Over the past 30 years, software has massively improved our ability to collect, analyze and act on information. It has allowed us to make a quantum leap in human prosperity and efficiency. A great software program can help you make smart business decisions, find travel deals, talk to loved ones and get a cheap ride home. Software has massively improved our ability to communicate, share information, transact, gather data and analyze data. Healthcare, education, transportation, manufacturing, energy production, food production, retail, banking, you name it... software programs have allowed us to do it much more efficiently. For example, one person running an Excel spreadsheet on a computer can do the work of hundreds of accountants from days past. One person running payroll software on a computer can do the work of hundreds of back-office workers from days past. One person running logistics software on a computer can do the work of hundreds of railroad managers from days past. Think of all the software-based products and services that bring us joy or save us time, money and frustration: Google, Microsoft Word, Uber, Facebook, OpenTable, Expedia, Excel, Waymo, PayPal, DocuSign, E-Trade, etc. The list of things that software does better and faster than us - saving us tons of time, frustration and headaches - goes on for miles. This brings me to the financial markets. You see, there's no bigger, more lucrative set of data than the history of U.S. stock prices and corporate financial statements. All this information would fill libraries if it were printed on paper. Fortunately, our ability to understand and act on that information has skyrocketed over the past 30 years. This is because, in the past three decades, the cost of computing power has plummeted - while computing power itself has skyrocketed. For example, in 1996, the ASCI Red was the first computer to reach the speed of 1 teraflop. Reaching this speed earned ASCI Red the prestigious title of "world's fastest computer." ASCI Red occupied a tennis court-sized amount of office space and cost $55 million to make. Just 10 years after ASCI Red went into service, Sony released its PlayStation 3 video game console. It had almost twice the computational power as ASCI Red... and the cost to make it was less than 1% of ASCI Red's. Plus, the PlayStation 3 could fit in a backpack. This is one of my favorite ways to prove an important point: Computers are advancing in speed and power at a stunning rate. Thanks to these huge jumps in computing power, we can now perform amazingly complicated analytical projects for ridiculously low prices, which has revolutionized our understanding of the world. Thanks to low-cost supercomputers, an analytical project that took one month to complete in 1996 can be performed today in less than one minute... and at less than 1% of the cost. Hugely expensive data analysis projects that were only in the realm of governments and large corporations can now be performed by a teenager in his parents' basement at essentially no cost. The massive increase in computing power now allows us to gather, record and monitor trillions of data points, signs and clues from all walks of life... and then determine exactly what they mean. We're using this new technology to uncover hidden correlations, secret relationships and signals in the data. We're finding meaningful "cause and effect" relationships where in the past we found only meaningless noise. With this incredible computing power and AI at our fingertips, TradeSmith embarked on the most important research project of its history... one that could help you make much bigger stock market returns than you're making now while taking less risk. TradeSmith calls this "Project An-E" (pronounced "Annie"). With the help of powerful computers, TradeSmith conducted Project An-E with a simple goal in mind: determine the attributes of stocks most likely to go up in the near future. Put differently, get as close as possible to having tomorrow's newspaper. As you know, every public company has hundreds of data points related to its business and its stock. There are annual earnings, quarterly earnings, net profits, gross profits, sales, price-to-earnings (P/E), return on equity, tangible assets, stock price momentum, trading volume and relative strength... just to name a few. But which of those data points are proven - beyond a shadow of a doubt - to have real-world, profit-producing predictive power? Is a low P/E the best predictor of future stock returns? Is blazing sales growth the best predictor of future stock returns? Is positive stock price momentum the best predictor of future stock returns? Is it a combination of factors? Those are the questions TradeSmith set out to answer. It wanted to find what really works in the stock market. It brought no preconceived notions to the project. No biases. No wishful thinking. No egos to defend. No past stances to justify. TradeSmith just let the data - and the AI analyzing the data - do the talking. It just let the AI answer the questions... - What stock factors have the most predictive power?
- What type of stock-picking system will give us the greatest profit-producing edge?
- What is the closest thing to having tomorrow's stock tables in our hands?
Now, let me be crystal clear. I'm NOT talking about predicting the future. I'll be the first to tell you that it's impossible to predict the future - and TradeSmith CEO Keith Kaplan agrees with me. With Project An-E, Keith and his team didn't chase the impossible dream of predicting the future. What they did was look for the closest thing to it. They looked for an "edge" that they and their customers could exploit over and over and over again. On Tuesday, December 19, at 8 p.m. ET, Keith, Chief Income Strategist Marc Lichtenfeld and I are hosting a LIVE special event where we'll unveil Project An-E. What we've found is incredible... and could help you amass stunning, life-changing wealth over the next few years. Sign up for the free, LIVE event by clicking here. I'll see you there! Good investing, Alex | 
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