November Newsletter

October 31, 2025

Artificial Intelligence: The Good and the Bad

As we continue to reflect on the passing of our founding partner, Steve Wheeldon, we are deeply touched by the many kind notes, calls, and memories you have shared over the past few weeks. Your compassion and stories have been a tremendous source of comfort to our family and the IIM team. His influence reached far and wide in his work, his friendship, and his unwavering commitment to our clients. While this is a time of reflection and transition, we also feel a renewed sense of purpose in carrying forward the legacy Steve built. It will continue to be the foundation of our work at IIM.

Just as Steve always prepared our firm and our clients for the future, we recognize the importance of being prepared for emerging and powerful technology tools like Artificial Intelligence (AI). While we appreciate the advances AI offers, our firm remains grounded in the philosophy that values human insight, experience, and careful evaluation rather than relying solely on automation

Artificial Intelligence is rapidly developing and is used in many everyday tasks, such as customer service centers and online shopping. It is also very successfully supporting manufacturing, efficiently navigating the processing of raw materials and the assembly and distribution of products. These rapid changes impact not only the economy and investment markets but also our everyday lives. Because the use of AI will become even more widespread, we would like to share additional information on AI technology as it relates to the protection of your private information. Knowledge and awareness is the best way in today’s rapidly changing technology landscape to remain secure.

As AI continues to transform the way data is used, creating “manufactured” intelligence, it will affect us both positively and negatively. While AI enables faster and smarter decision-making, it also introduces new risks such as data theft, privacy breaches, and misuse of personal information.

AI systems rely on large volumes of data, so they have become attractive targets for cybercriminals. Hackers may attempt to steal sensitive information or manipulate AI systems to commit fraud, including imitating voices or images. AI can also enhance cyberattacks, making them more sophisticated and difficult to detect. At the same time, AI can serve as a powerful defense by identifying and preventing security threats. In this way, AI can act as both a hero and a villain in the realm of cybersecurity.

To stay protected, it is important to follow strong security practices like encryption (locking up data), access control (limiting who can see data), and designing AI systems responsibly and ethically. Provided below is a list of areas and practical suggestions that can help the everyday user navigate systems that use AI.

Phishing scams: fraudulent emails or messages that attempt to obtain personal information have become increasingly convincing with the help of AI. A recent study found that 60 percent of individuals fell for AI-generated phishing messages.

Here are some simple ways to spot these scams:

• Unexpected Messages: Consider whether the email makes sense. Ask yourself, does this email make sense? Were you expecting it? Is the tone or topic what you’d expect from this person or company?
• Tone Feels Off: If an email sounds too formal or too casual for the person who sent it, it might be fake.
• Urgent Requests: Be suspicious if the message demands quick action or asks for things like passwords, bank info, or Social Security numbers.
• Unusual Requests:
  If someone you know suddenly asks you to send money or click a strange link, double-check with them in person or by phone before doing anything.
• Suspicious Links or Email Addresses:
  Look carefully at who the email is really from, sometimes scammers use fake addresses that look almost identical.

At Intelligent Investment Management, we maintain rigorous cybersecurity practices. Our team meets regularly with IT professionals to stay informed about emerging threats, particularly those related to email security. We carefully review incoming communications for “red flags” that may indicate the need for verification before taking further action.

Our firewalls are periodically updated to detect and block fraudulent messages. We also encourage the use of the IIM Vault for document delivery, as it provides encrypted and secure transmission. Clients who receive electronic reporting must log in to the Vault to retrieve their reports. If you would like assistance using this tool or have questions about cybersecurity, please contact our office.

As we look forward to the holidays and this busy time of year, Laura will handle office operations for the first week of November while Carly and James attend the Charles Schwab National Conference in Denver. This annual event brings together advisors and industry leaders from across the country to share insights about investing, explore new technology tools, and discuss the future of wealth management. Participating in this conference allows us to continue learning and evolving, ensuring that our firm remains equipped to serve you with the highest level of expertise, care and security. We will share any relevant key insights from the conference in our next letter.

Be sure to turn your clocks back this weekend and always know that we are here to help with your questions and concerns.

Sincerely,

Intelligent Investment Management, LLP