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3D-printed lung model helps researchers study aerosol deposition in the lungs

Treating respiratory diseases is challenging. Inhalable medicines depend on delivering particles to the right lung areas, which is complicated by factors like the drug, delivery method and patient variability, or even exposure to smoke or asbestos particles. University of Delaware researchers have developed an adaptable 3D lung model to address this issue by replicating realistic breathing maneuvers and offering personalized evaluation of aerosol therapeutics. “If it's something environmental and toxic that we're worried about, knowing how far and how deep in the lung it goes is important,” said Catherine Fromen, University of Delaware Centennial Associate Professor for Excellence in Research and Education in the Department of Chemical and Biomolecular Engineering. “If it's designing a better pharmaceutical drug for asthma or a respiratory disease, knowing exactly where the inhaled aerosol lands and how deep the medicine can penetrate will predict how well that works.”that can replicate realistic breathing maneuvers and offer personalized evaluation of aerosol therapeutics under various breathing conditions. Fromen and two UD alumni have submitted a patent application on the 3D lung model invention through UD’s Office of Economic Innovation and Partnerships (OEIP), the unit responsible for managing intellectual property at UD. In a paper published in the journal Device, Fromen and her team demonstrate how their new 3D lung model can advance understanding of how inhalable medications behave in the upper airways and deeper areas of the lung. This can provide a broader picture on how to predict the effectiveness of inhalable medications in models and computer simulations for different people or age groups. The researchers detail in the paper how they built the 3D structure and what they’ve learned so far. Valuable research tool The purpose of the lung is gas exchange. In practice, the lung is often approximated as the size of a tennis court that is exchanging oxygen and carbon dioxide with the bloodstream in our bodies. This is a huge surface area, and that function is critical — if your lungs go down, you're in trouble. Fromen described this branching lung architecture like a tree that starts with a trunk and branches out into smaller and smaller limbs, ranging in size from a few centimeters in the trachea to about 100 microns (roughly the combined width of two hairs on your head) in the lung’s farthest regions. These branches create a complex network that filters aerosols as they travel through the lung. Just as tree branches end in leaves, the lung’s branches culminate in delicate, leaf-like structures called alveoli, where gases are exchanged. “Those alveoli in the deeper airways make the surface area that provides this necessary gas exchange, so you don't want environmental things getting in there where they can damage these sensitive, finer structures,” said Fromen, who has a joint appointment in biomedical engineering. Mimicking the complex structure and function of the lung in a lab setting is inherently challenging. The UD-developed 3D lung model is unique in several ways. First, the model breathes in the same cyclic motion as an actual lung. That’s key, Fromen said. The model also contains lattice structures to represent the entire volume and surface area of a lung. These lattices, made possible through 3D printing, are a critical innovation, enabling precise design to mimic the lung's filtering processes without needing to recreate its full biological complexity. “There's nothing currently out there that has both of these features,” she explained. “This means that we can look at the entire dosage of an inhaled medicine. We can look at exposure over time, and we can capture what happens when you inhale the medication and where the medicine deposits, as well as what gets exhaled as you breathe.” The testing process Testing how far an aerosol or environmental particle travels inside the 3D lung model is a multi-step process. The exposure of the model to the aerosol only takes about five minutes, but the analysis is time-consuming. The researchers add fluorescent molecules to the solution being tested to track where the particles deposit inside the model’s 150 different parts. “We wash each part and rinse away everything that deposits. The fluorescence is just a molecule in the solution. When it deposits, we know the concentration of that, so, when we rinse it out, we can measure how much fluorescence was recovered,” Fromen said. This data allows them to create a heat map of where the aerosols deposit throughout the lung model’s airways, which then can be validated against benchmarked clinical data for where such aerosols would be expected to go in a human under similar conditions. The team’s current model matches a healthy person under sitting/breathing conditions for a single aerosol size, but Fromen’s team is working to ensure the model is versatile across a much broader range of conditions. “An asthma attack, exercise, cystic fibrosis, chronic obstructive pulmonary disorder (COPD) — all those things are going to really affect where aerosols deposit. We want to make sure our model can capture those differences,” Fromen said. The ability to examine disease features like airway narrowing or mucus buildup could lead to more personalized care, such as tailored medication doses or redesigned inhalers. Currently, inhaled medicines follow a one-size-fits-all approach, but the UD-developed model offers a tool to address these issues and understand why many inhaled medicines fail clinical trials.

Canada’s RRSP Program Has Too Many Jobs

Summary: Since its inception in 1957, the Registered Retirement Savings Plan (RRSP) has been a cornerstone of Canada’s retirement system. However, the RRSP has taken on roles far beyond its original mandate, notably through the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP). Although these programs provide short-term benefits, they significantly damage the long-term health of Canadians' retirement savings. This article explores how these additional roles are sabotaging retirement savings, highlights statistics about the state of RRSPs today, and discusses the disastrous impact these trends will have on future retirees. While listening to a recent economic presentation by Don Drummond, TD Bank's Chief Economist at the Mortgage Professionals Canada conference, the following stat stood out to me: "Median RRSP savings are $146K (RRSPs have been in existence for 6 decades)" I was stunned by how low this value was. Even with a government pension, in today's economic climate, to achieve a successful retirement, we need more than $146K saved. This prompted me to explore how the average value of RRSPs in Canada could be so low after some of us have had as much as 60 years to save. The average senior aged 65 in Canada receives $18,197 per year from OAS and CPP. If qualified for GIS, they would receive another $15,186 annually, for a total of $33,338 annually. This isn't much income, especially for homeowners who must pay for property taxes, utilities, upkeep, and maintenance. How it All Began At inception, the RRSP was called a Registered Retirement Annuity and was created in 1957. At the time, Canadians could contribute up to 10% of their income to a maximum of $2,500 annually. The goal was to give all Canadians the same tax benefits as members of registered employer-sponsored pension plans. Benefits of the RRSP Plan 1. Tax-Deferral: Contributions to an RRSP are tax-deductible, which can reduce your tax bill. 2. Tax-Free Growth: Your savings grow tax-free while the money is in the plan. 3. Retroactive: You can carry forward any unused contribution room to future years. The Multitasking Disaster Studies show that people are dreadful at multitasking; the same is true of government programs. Here is where the program went wrong. In 1992, the Home Buyer’s Plan (HBP) was made more flexible, which allowed first-time homebuyers to withdraw RRSP funds to buy a house. Then, in 1999, the Lifelong Learning Plan (LPP) was introduced, which permitted withdrawals to pay for education. The Home Buyers' Plan (HBP) was not introduced in 1957 alongside the Registered Retirement Savings Plan (RRSP) creation. Instead, the HBP was introduced in 1992 as a federal initiative to help Canadians buy their first homes by allowing them to withdraw funds from their RRSPs without tax penalties as long as they met specific conditions. Here's a timeline of crucial HBP withdrawal limits since its inception: Timeline of HBP and LLP Withdrawal Limits: 1992 - Introduction of the HBP • Maximum Withdrawal Limit: $20,000 per individual. • Purpose: To help first-time homebuyers purchase or build a home. 1999 – Introduction of Lifelong Learning Plan (LLP) • The annual withdrawal limit is $10,000 per individual • The lifetime withdrawal maximum is $20,000 per individual 2009 - First HBP increase • New Limit: $25,000 per individual. • The increase was introduced as part of federal budget changes to reflect rising housing costs. 2019 - Second HBP Increase • New Limit: $35,000 per individual. • Announced in the 2019 federal budget to support affordability for first-time homebuyers. 2019 -HBP Enhancement for Life Events • The HBP was expanded to allow individuals experiencing a marriage or common-law partnership breakdown to participate, even if they were not first-time homebuyers. 2024 - Recent increase • New Limit: $60,000 per individual. • The increase was introduced as part of federal budget changes to reflect rising costs. A Flawed Strategy The Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) were introduced in Canada as tools to make housing and education more accessible. While well-intentioned, these programs effectively allow individuals to borrow from their future retirement savings—a strategy that can have significant negative consequences. Ask any high school economics student, and they will tell you that compromising two of the three main elements (principle and time) in investing growth will lead to a disappointing return. Here is the formula: principle X interest + time = compounded return. Are We Borrowing From the Future to Pay for Today? The Problem with the Home Buyers’ Plan (HBP): Addressing Housing Affordability at the Expense of Retirement The HBP permits individuals to withdraw up to $60,000 from their RRSP to buy a first home. In an environment of rising house prices, this measure may help buyers cobble together a down payment, but it drains retirement funds. The funds are unavailable to grow tax-free over decades, diminishing the compounding returns essential for retirement security. The Problem with the Lifelong Learning Plan (LLP): Financing Education by Sacrificing Retirement The LLP allows up to $20,000 in RRSP withdrawals to fund education, which can help individuals upskill. However, education often doesn’t yield immediate returns, and the withdrawn funds lose their growth potential, including the compounded returns. Why This Harms Future Retirees Issue #1: Loss of Compounding Growth Withdrawals disrupt the power of compounding, which is vital for retirement savings. For example, $35,000 left in an RRSP for 25 years at a 6% annual return could grow to over $150,000. If that same $35,000 were withdrawn 15 years ago and repaid over the same period as required by the HBP program, it would be worth $54,311, a loss of $95,689 Issue #2: Repayment Struggles While repayments are required, life’s expenses (mortgage, childcare, loans) often make it hard to repay on schedule. Failure to repay means the amount withdrawn is added to taxable income, further reducing the effectiveness of the programs. Issue #3: Insufficient Savings Most Canadians are already under-saving for retirement. Encouraging them to dip into their RRSPs exacerbates this shortfall. Two Different Problems.  One Harmful Solution Housing Affordability Rising house prices are driven by supply-demand imbalances, speculation, and policy failures—not a lack of down payments. Increasing the HBP withdrawal limit does nothing to address the root causes of affordability, but it may drive prices higher by giving buyers more purchasing power. Retirement Security Retirement savings should be preserved and grown to ensure financial stability in later years. Programs like HBP and LLP blur the line between short-term needs and long-term planning. Why Would our Government Do This? Political Expediency Housing affordability and access to education are politically sensitive issues. Allowing individuals to tap into their RRSPs is a cost-neutral policy for the government (unlike direct subsidies or programs). Policies like these help politicians get elected or stay in office. And in proper political form, these policies only tell half the story. Vote for us because we will help you buy your first home, which is a great campaign strategy. Vote for us because we will make it look like we help you buy your first home when, in fact, we will set up a program that will allow you to borrow from yourself at the cost of your retirement, which is political suicide. Short-Sighted Economic Policies Policymakers may believe that homeowners and educated individuals are more financially secure, even if their retirement savings are compromised. The logic might be that owning a home or having better job prospects could mitigate future hardship. Assuming Home Equity is a Safety Net The government might assume that homeownership ensures financial stability in retirement. However, this overlooks that rising housing costs often mean seniors have high debt levels or are "house rich but cash poor." The Bigger Problem with the HBP and LLP Programs: No Warnings or Education Given to Canadians Neither the HBP nor the LLP adequately informs individuals of the long-term consequences of their decisions. To make matters worse, the participants of these programs will likely realize the impact once it is too late to take action. People considering retirement are often in their late 50s to early 60s, past their prime saving years. Borrowing from retirement accounts may seem like “borrowing from yourself,” but this lost growth can never be recouped. Many Canadians are not well enough informed to assess these trade-offs, leading to decisions that harm their financial future. In Case You’re Thinking, These Seniors Have Inadequate Savings - But at They At Least their Homes. The HBP and LLP programs may reflect a government view that seniors would be better off owning a home than relying solely on inadequate savings. But this is flawed for a number of reasons: A home is not a liquid asset—it cannot pay for groceries or healthcare. Also,  Seniors with insufficient retirement savings often need help with financial distress despite owning property. They sometimes need reverse mortgages or sell their homes out of desperation. An Unfortunate Misguided Solution Rather than “quick fixes” that appear to solve immediate challenges while creating long-term problems, the Federal government should instead focus on longer-term, systemic solutions For housing: Governments need to curb speculative investments and provide targeted assistance for first-time buyers. Plus they need to focus on programs that increase housing supply, such as income tax incentives for homeowners to build accessory dwelling units (ADUs). These units could be rented out or used for caregivers. Or adopt a policy allowing first-time home buyers to not pay tax on their first $250,000 of income. First-time home buyers could use the tax savings as a down payment. For Education: Governments need to expand grant programs and low-interest loans to prevent reliance on retirement funds.  This will not only help us increase the number of skilled workers to fill critical gaps in vital sectors such as technology, healthcare engineering and the trades.  It will also contribute to a higher GDP and build a more sustainable tax base for future generations. Encouraging Canadians to steal from their future is not a sustainable strategy. Retirement savings should be viewed as sacred - not a piggy bank for solving unrelated issues. Don’t Retire … Re-Wire! Sue

I Was 33 Years Early to the ADU Party

The early 1990s were tough for many Canadians, including my partner and me. The recession of 1990-1991 hit us hard, leaving both of us without jobs and staring at an unemployment rate that had climbed to a record 10.23%. With bills piling up and options dwindling, we had to get creative—and fast. That’s when we found an unexpected lifeline in an unlikely place: my partner’s grandmother’s house. Grandma, a 90-year-old fireball from Newfoundland, was sharp as a tack and fiercely independent. However, her home was starting to feel too large for her to manage on her own. Meanwhile, we needed a place to live that wouldn’t drain our limited savings. Over cups of tea at her cozy kitchen table, a plan started to take shape: we would build a basement apartment in her house, move in, and exchange affordable rent for assistance around the house. It was a perfect win-win. I didn't know it, but I was an ADU pioneer Today, this living arrangement may be recognized as an Accessory Dwelling Unit (ADU), a secondary housing unit on a single-family property. However, in 1991, this concept was far from mainstream. For us, it was simply a matter of survival—a practical solution born from necessity. We rolled up our sleeves and got to work. With a few friends and determination, we transformed Grandma’s basement into a modest but functional living space. It was basic, even a bit wonky—you had to walk through the bedroom to get to the living room-kitchen combo—but it was ours. We managed most of the construction ourselves, and hired an electrician for the wiring and a plumber to handle the pipes. The rest was pure sweat equity. Living in that basement was an adjustment, to say the least. Space was tight, and our DIY craftsmanship wasn’t exactly HGTV-worthy. However, it provided us with a fresh start. But as ADU pioneers, we got much more than we could have imagined. A much closer connection to family. Grandma’s wit and energy were the heart of the house, and we grew closer to her than we ever imagined. Her stories about growing up in Newfoundland in the late 1800s mesmerized me. I would sit there, wide-eyed, as she recounted winters so cold that tea froze before it hit the cup and evenings illuminated by whale oil lamps. We laughed constantly, and she quickly became the grandmother I never had since my grandparents had passed before I was born. Grandma and I stayed close even after my relationship with my partner ended. I couldn’t imagine life without our Friday lunches, which became a cherished tradition. Every week, I’d visit, and she’d share more stories or critique my cooking attempts with her quick wit and that unmistakable Newfoundland twang. She continued to be a beacon of joy and wisdom in my life. Grandma thrived on independence, which she held onto with great determination. At 90 years old, she re-tarred her driveway by herself, much to the neighbours' surprise and my immense admiration. The tar application was as wrinkled as her skin, and she couldn't care less. She beamed with pride while I took her picture! She loved having visitors, and the parish clergy were frequent guests. She always welcomed them with a twinkle in her eye and a sharp sense of humour. Once, when the parish priest asked her if she ever thought about "the hereafter," she shot back, “Oh, I think about it every day when I go into the basement and ask myself, ‘What am I here after?’” That was Grandma: quick-witted, strong, and full of life. Our basement apartment was more than just a place to live; it was a lifeline. The benefits extended beyond us. Grandma stayed in the home she loved until she passed away peacefully at 96 years old, sitting at her kitchen table on my birthday. It was a poignant moment that reminded me how much she had shaped my life. The modest basement apartment not only sheltered us but also added value to her home. We inadvertently enhanced the property’s functionality and appeal by converting unused space into livable quarters. This represents a key advantage of ADUs in today’s economy. Given the housing shortages and rising costs, ADUs provide a practical solution by offering affordable rental options, increasing property values, and creating opportunities for intergenerational living. In recent years, governments have acknowledged the importance of ADUs, making it easier and more affordable for families to construct them. Changes to mortgage lending policies have been introduced to promote ADU construction. For instance, insured loans now cover up to $1.5 million, and the amortization period has been extended to 30 years, enhancing financing accessibility. Furthermore, the federal government has announced new refinancing options to allow up to 90% of the property’s value. At the same time, low-interest loans for ADU construction have doubled to $80,000, with repayment terms of 15 years. These welcome changes will lower financial barriers and assist homeowners in creating secondary housing units, addressing both affordability and housing shortages. This intergenerational arrangement we set up over three decades ago was a win-win in every way. It provided mutual support, strengthened family bonds, and created a housing solution that benefited both generations. Seniors can age in place with dignity and companionship while younger generations gain access to affordable housing and the chance to learn from their elders. The laughter, shared meals, and stories crafted memories that will last a lifetime. Moreover, ADUs can help ease housing shortages and increase the availability of affordable rentals. They represent a practical, cost-effective method to utilize existing properties better. For families, they offer flexibility—a space for aging parents, adult children, or even potential rental income. For communities, they supply essential housing stock without necessitating large-scale development. For a deeper dive into ADUs, here's a link to a post we shared last year https://expertfile.com/spotlight/10346/additional-dwelling-units--adus- What's Old is New Again It's often said that many things come back in style if you wait long enough. This may hold for ADUs, simply an old concept whose time has come again. Nonetheless, ADUs empower our younger generation to afford housing and achieve homeownership. They also provide vital support for our older generations, enabling them to age in place while generating much-needed income for a dignified retirement. Reflecting on the past, I often ponder who saved whom. Grandma’s indomitable spirit and sharp humour made every bump in the road worthwhile. She would tease me about the crooked shelves we installed and joke that our kitchen was so small we could stir the soup without getting off the couch. In truth, she gave me more than I ever gave her. Her strength, love, and unwavering sense of humour helped me navigate one of the most challenging times in my life. The quirky basement we built in 1991 may not have been perfect, but it served its purpose. Today, as ADUs gain popularity, they represent more than just housing; they embody connection, resilience, and finding creative solutions to life’s challenges. Whether it’s a basement apartment, a backyard cottage, or a garage conversion, ADUs can foster connection and help families thrive—just as we did all those years ago. And as for Grandma? She demonstrated that a touch of humour, plenty of love, and the occasional jab at a priest could keep anyone young at heart. Every time I think of her now, I can’t help but smile and wonder if, somewhere, she’s still re-tarring driveways and asking herself, ‘What am I here after?’ Don’t Retire … Re-Wire! Sue

AI Everywhere: Where Artificial Intelligence and Health Care Intersect

Imagine a world where AI doesn’t just support health care providers, but anticipates their next move — detecting diseases faster than human eyes, analyzing patterns and patient data that humans might overlook and revolutionizing health care decision making at every level. Driven by data, AI can identify which patients are most likely to have repeated emergency department visits or thrive from personalized medicine. With the power of robotics enhanced by AI, people with medical needs can gain more independence, managing daily tasks such as taking medication, monitoring their health and receiving personalized care, all from the comfort of their own homes. And this is just the beginning. “AI is transforming – and is going to continue transforming – every industry, especially health care,” said Bharat Rao, a notable figure in the fields of health care, technology and AI. Rao himself has made significant contributions to artificial intelligence, machine learning and data analytics, particularly in health care innovation. His current start-up, CareNostics, uses AI technology to identify patients at increased risk for chronic disease. “We take this for granted,” he said, “but it’s like what I used to see on Star Trek as a kid. The opportunities are limitless.” Rao was a keynote speaker at ChristianaCare’s inaugural Innovation Summit, a two-day conference at ChristianaCare’s Newark campus in Delaware, in fall 2024. During panel discussions and keynotes, more than 200 attendees heard about current and future health tech from national innovators and thought leaders, as well as technical advice for inventors who want to patent ideas and protect intellectual property in a world where “AI Is Everywhere,” the conference’s theme. Speakers emphasized that it’s not just technologists, but also researchers, clinicians and other health care professionals who play an essential role in implementing AI-based health care solutions. “There’s no AI without HI, which is human intelligence,” said Catherine Burch, MS, CXA, CUA, vice president of innovation at ChristianaCare. “You want to help shape the future, not wait for it to shape you.” How AI helps improve patient care “AI is incredibly good at reducing noise in images,” said speaker David Lloyd, a technical leader at Amazon, who discussed the use of AI in radiology. “It can detect anomalies, and it can automate radiologist reports, which saves time for radiologists.” Data informatics is another example of the power of AI to help health professionals determine which patients are at an increased risk for falls, malnutrition or recurrent asthma attacks, enabling them to optimize patient health and prevent hospitalizations. “Some patients with asthma go to the ER repeatedly because their treatment plan isn’t working,” said speaker Vikram Anand, head of data at CareNostics. When patients have uncontrolled asthma, data-rich platforms like CareNostics can provide treating physicians with guidelines and other support to improve patient care, which may lead to evidence-based medication changes or other therapies, he said. Using robots as part of the health care team in patient homes may sound like science fiction, but speakers discussed the current evolution of consumer robotics, like Amazon’s Astro. Astro follows patients around their home, interacts with them and supports their care. When ChristianaCare tested Astro’s impact on HomeHealth patients, they found that it reduced feelings of isolation by 60%. “Astro is like Alexa on wheels,” said speaker Pam Szczerba, PT, MPT, CPHQ, director of ChristianaCare’s HomeHealth quality, education and risk management, who studied patients’ experiences with Astro. “People like interacting with Alexa, but they can only interact in the room they’re in. Astro’s mobility lets it go to the patient.” Based on early successes, health professionals are assessing robots as an extension of clinicians in the home. Early results show that patients with robots show improved activation with their care plans. This may lead to more widespread distribution of household robots to newly diagnosed patients to help prevent disease complications, avoidable emergency department visits and re-hospitalizations. How AI helps ease provider burden Speakers also discussed the potential of AI to improve health care delivery and patient outcomes by handling more administrative work for health professionals. “We can reduce some of the redundancy of work to free up time for people to be creative,” said speaker Terrance Bowman, managing director at Code Differently, a company that educates and prepares people to work in technology-driven workplaces. “AI should be taking the ‘administrivia’ – administrative trivial tasks – out of your life,” said speaker Nate Gach, director of innovation at Independence Blue Cross. “When you want folks to do the creative part of the job that takes brain power, have ChatGPT respond to easy emails.” Other examples shared included the power of AI to record meetings, create summaries and send participants automated meeting minutes. Benefits can be seen across industries. Specific to health care, eliminating the need for note-taking during visits enables more personalized and attentive provider-patient interaction. With the evolution of ambient speech apps, clinicians are no longer just dictating notes into the electronic health record. Now AI is listening to the conversation and creating the notes and associated recommendations. “The physician is no longer spending ‘pajama time’ doing catch-up work, at home late into the evening,” said speaker Tyler Flatt, a director and leading expert in AI and digital transformation at Microsoft. “Especially as we’re dealing with burnout, it’s better for patient and physician satisfaction.” AI may also help caregivers uncover details that they hadn’t noticed, helping them diagnosis patients with subtle symptoms. “We feed a large quantity of data and have it suggest commonalities about patients,” said speaker Matthew Mauriello, assistant professor of computer and information sciences at the University of Delaware. “Some things are very insightful, but humans miss them.” AI has also been used for patient engagement, including chatbots that can assist with tasks like scheduling clinical appointments or acknowledging patient questions. “One of the things AI is great at is natural language understanding,” said David Lloyd. “You can alleviate a lot of the burden if you have something that can talk to your patients, especially if it’s an administrative task.” Creating new health innovations “The key is to think of something you’ve done that’s original and non-obvious,” said Rao, who holds more than 60 patents in AI. “The process of writing about it will help you flesh it out.” Turning breakthrough ideas into game changers is just the start — protecting these innovations is what ensures they shape the future, rather than fade into the past. “Keeping it secret and internal to your organization until you know what you want to do with it is important,” Greg Bernabeo, partner at FisherBroyles, LLP, said. “Otherwise, the opportunity is lost, and you can’t get the genie back in the bottle.” Benefits of non-obvious thinking People who pursue “non-obvious” ideas are often on the cutting edge of technology in and out of health care, said keynote speaker, Ben DuPont, while discussing innovative ideas with Randy Gaboriault, MS, MBA, senior vice president and chief digital and information officer at ChristianaCare. “Amazon was not founded by a book retailer; Airbnb was not founded by somebody who was in hospitality,” said DuPont, author, entrepreneur, and co-founder and partner at Chartline Capital Partners venture capital fund. “Before Uber, the founders were running around Paris and they couldn’t get a taxi.” Innovative ideas often arise when people consider non-obvious points of view while thinking about solutions, DuPont said. Non-experts have the ability to cut through the clutter and find the frustration, which can lead to innovative solutions, which DuPont explores in his book “Non-Obvious Thinking: How to See What Others Miss.” Health providers, for example, may discover ideas when they move out of their comfort zones. “If you want to be a better doctor, go do something that has nothing to do with medicine,” he said. “Innovation happens at the collision of seemingly unrelated disciplines.” Diversity in the workplace is necessary, “but it’s not just diversity in the way people look: It’s diversity in how people think,” DuPont said. “There are people that think in dramatic and different ways. We need those people around the table. They might say: ‘If we just move this little thing over here’ … and it starts an avalanche that changes the world.” Involving the future generation During the Innovation Summit, students with an interest in STEM (science, technology, engineering, and mathematics) from St. Mark’s High School in Wilmington, Delaware, competed against one another at ChristianaCare’s inaugural HealthSpark ChallengeTM. Twenty-six high school juniors and seniors were divided into five teams, then challenged to brainstorm ideas for solutions to address the negative mental health effects of social media on teenagers. Each team created a concept poster and pitched their ideas to Summit attendees. The attendees then voted for their favorite solution. The winning solution, Editing Identifiers, is designed to help minimize negative feelings about body image among teens. The solution would use AI technology to identify altered photos on social media. The goal would be to show teens that photos of “perfect” people aren’t real and alleviate the feelings of body dysmorphia. Looking forward Summit speakers highlighted many ways that AI is already incorporated into health care, as well as ways that health tech, AI, and robotics may improve care for patients in the coming years. “We are just scratching the surface,” Rao said. “It’s like laparoscopic surgery – years ago, it was considered experimental or dangerous. Today, surgery is commonly done laparoscopically, with better outcomes and less infection. AI can help identify care gaps and get the right treatment to the right patient. It’s going to be good for the patient.” In a rapidly evolving landscape, the integration of AI into health care not only enhances patient care but also creates opportunities for innovation and collaboration, said ChristianaCare’s Gaboriault. “As AI continues to advance, the health care industry stands on the brink of a revolution, one where the possibilities are as vast as the data that fuels them.”

Saving the world, one yard at a time

University of Delaware professor Doug Tallamy has a simple mission: Encourage people to rid their property of invasive plants and replace them with native ones. One of the ways he's tackling it is through a concept called “Homegrown National Park,” a grassroots initiative he co-founded to offer a simple solution for the biodiversity crisis — the decline of a variety of animals, plants and numerous species. Tallamy, the TA Baker Professor of Agriculture and Natural Resources at the University of Delaware, is trying to encourage everyone to do their part to protect the planet. If invasive plants (which don’t belong in an area and can ultimately harm the ecosystem by taking away essential resources from other plants) grow out of control, then an area loses its biodiversity, the ability for multiple plant and animal species to function at once and create a rich ecosystem. Invasive species are prolific. For example, many invasive plants produce berries, which some birds eat. The birds then spread those seeds around. So, once invasive plants are in an area, they’re hard to get rid of. The idea is to replace them with native plants, which have historically belonged to a region and provide critical habitat for insects, birds and other creatures. It's an uphill climb, but Tallamy persists and is trying to save the world, one yard at a time. “Everybody has a responsibility of doing things that sustain their little piece of the earth, and there are a whole bunch of things one individual can do to help in that regard,” Tallamy said. What’s not so simple, however, is getting the Earth’s 8 billion people (or, at least, anyone with property) to do this. “We are trying to change the culture so that [replacing invasive plants with native ones] becomes the norm, not the exception,” Tallamy said. “We’re not getting rid of lawns. But we don’t need 44 million acres of them. There are now so many people on the planet that natural systems are not functioning the way they need to sustain us.” A snowball effect Much of our current plant culture revolves around colorful, aesthetically pleasing ornamental plants that don’t support the local food web. When they grow out of control, a local yard or larger region loses out on biodiversity. The natural world is all connected. For example, Tallamy said, if we lose pollinators like our native bees that transport pollen between plants, then we also lose most of our plants that produce flowers and fruits. It’s a snowball effect. “If that happens, the energy flow through our terrestrial ecosystems is almost totally disrupted, which means the food webs that support our vertebrate animals, our amphibians, our reptiles, our birds and our mammals would collapse and all those animals would disappear,” Tallamy said. “Without insect decomposers, the creatures that break down dead material, mostly plants, would rot and only bacteria and fungi would endure.” “Homegrown National Park” has generated a lot of buzz for Tallamy, who received recognition for it in October by the Massachusetts Horticultural Society. The MHS awarded Tallamy with its highest honor, the George Robert White Medal of Honor, for eminent service in the field of horticulture. Conservation in action Tallamy’s quest to “change the culture” on planting can be witnessed in the fall at UD. On a warm October afternoon, he and a group of students from the Introduction to Insect and Wildlife Field Studies (ENWC 165) course trudged out to UD Wetlands to curtail some pesky invasive plants native to Asia. Equipped with clippers, loppers and handsaws, they walked behind Worrilow Hall, part of the College of Agriculture and Natural Resources’ 350-acre campus, which includes the UD Wetlands, an area that was formerly a dairy cow pasture but transformed into wetlands in 2008 because pollution from the farm was reaching the local watershed. The wetlands were created because wetlands, by design, absorb nitrogen from runoff before it goes into waterways. They then release it as a gas into the atmosphere. But the UD Wetlands repeatedly deal with pesky invasive plants such as Porcelain-berry and Chinese elm. Over the years, UD students have stymied the species from overtaking the area. “See this? This is a good guy,” said Tallamy to the students as he held up a fallen branch. “You just want to get the Porcelain-berry off of it. They’ll grow back very well. But we want to nip [the Porcelain-berry] in the bud.” Taylor Kelly, a senior wildlife ecology and conservation major who took part in the invasive species removal, said Tallamy has helped her better understand the interconnectedness of various ecosystems. “Native plants provide so much value to our local pollinators, which add value to our local birds because they feed on pollinators, seeds, fruit and trees,” Kelly said. When native plants are in their natural environment, she added, it is a beautiful thing to see. Gardening with intention Tallamy, who began his teaching career at the University of Delaware in 1982, has published numerous research papers about entomology and written three books about native plants, insects and ecosystems, with a fourth book soon to come out. Lately, much of his career has revolved around public outreach. He often lectures across the country about native plants and their ecosystem value and is regularly quoted in outlets like The New York Times, The Washington Post and Natural History Magazine. “Dr. Tallamy is a rare scientist that is able to explain his work to everyone,” said Jake Bowman, UD professor of wildlife ecology and chair of the Department of Entomology and Wildlife Ecology. “His passion for the importance of native plants has driven a major shift in thinking.” Years ago, when Tallamy first set out to spread his messages about native plants, he anticipated a lot of pushback from horticulture enthusiasts who he thought might be resentful about being told how to choose their plants. Instead, Tallamy found that many actually embraced his ideas, including Delaware’s own Master Gardeners, a group of about 300 volunteer educators trained by UD Cooperative Extension. Among his supporters are Delaware Master Gardeners Karen Kollias, Brent Marsh and Judy Pfister, who each praised Tallamy for the impact he has had on how they garden. Kollias now “gardens with intention”— not for herself or her neighbors, but for the environment. “I was a gardener before,” she said. “Now I consider myself an ecological gardener.” After Marsh received a copy of Tallamy’s 2007 book, Bringing Nature Home, which talks about the link between native plants and native wildlife, Marsh became a Master Gardener and began planting native species in his Georgetown lawn. Today, native plants such as woodland sunflowers and oak trees adorn Marsh’s yard, and he is grateful for the value of native plants that he learned through Tallamy’s book. “Someday, maybe 20 years from now when I’m 100 years old, somebody's going to buy my house and they’re going to say, ‘Who planted all these oak trees?!’” Marsh chuckled. “Doug Tallamy changed my life.” As Tallamy has sought to simplify scientific knowledge with the general public, Pfister has utilized Tallamy’s approach to do the same. “He has a way of just making the whole thing a big circle, tying the need for a plant back to the need for a bird back to the need for a tree,” she said. Tallamy, who has been delighted by the fervor ignited by his native plants teachings, said the future of the Earth and its diverse ecosystems will in large part depend on how people treat their yards. “In the past, we asked our landscapes to do one thing, and that was, be pretty,” Tallamy said. “Now we have to ask them to do two things: be pretty and ecologically functional. That's the horticultural challenge of today.” But it’s one Tallamy believes can be achieved. Sometimes, he wishes he could speak to his 10-year-old self and tell the young boy to dig another pond for the toads to colonize. Restore. Conserve. Focus on keeping nature’s ecosystems intact, he would say. “We have to do both,” Tallamy said. “Yes, we have to conserve what’s out there, but we have to get in the mindset that we can really put a lot of it back.” Tallamy and Homegrown National Park co-founder Michelle Alfandari have created a database for people to type in their zip code and discover which native plants are best for their area.

Additional Dwelling Units (ADUs)

Summary: In a previous post, I wrote about the need for more creative solutions to the cost of housing.  I also spoke to the housing shortage and the steep downpayment rules we continue to face. At the same time, the need for retirement income and an increased focus on "aging in place" has more and more property owners looking for solutions.  Here, we explore why adding secondary living spaces to their properties, commonly referred to as Additional Dwelling Units (ADUs), is something you may want to consider. What Are ADUs? ADUs are fully equipped residential units situated on the same lot as a single-family home. They offer a distinct and private living arrangement while maintaining proximity to the main house. These living spaces may be integrated into the primary residence—such as a transformed garage or basement—or exist as independent structures, including small cottages or apartments. Why ADUs Are Gaining in Popularity ADUs can fulfill a broad range of needs, from accommodating aging relatives or adult children to creating a valuable source of rental income for homeowners. This income could assist seniors with cash flow and substantially boost their property's overall value. But is an ADU right for you? Before answering this, let's first take a brief look at their advantages and the rules and regulations governing the conversion or construction of such structures. Types of ADUs ADUs encompass a variety of secondary suites or dwelling units, primarily categorized as attached, detached, and semi-detached structures. Attached ADUs arise when homeowners convert existing spaces, such as basements, into livable areas. In contrast, detached ADUs consist of separate structures built apart from the principal residence. Laneway Houses / Laneway Suites: These small, detached units are constructed in the backyard or along the laneways of existing properties, maximizing the use of available space. Garden Suites: Similar to laneway houses, garden suites are secondary residences in the primary home's backyard. They offer self-sufficient living environments and are increasingly favoured for boosting housing density in urban settings while preserving the character of residential neighbourhoods. Basement Apartments: Self-contained living spaces in the basement of a residential property. These usually have a distinct entrance. In-law Units (In-law Suites, In-law Flats) are separate living sections within a single-family home that cater to relatives, providing a comfortable space for parents or in-laws. Detached Garages: These standalone structures are separate from the main house and traditionally store vehicles. They can also serve as storage areas or workshops. Adding a second-story apartment above garages is popular. Parking is premium in cities, and these structures provide the best of both worlds: keeping parking, storage, and adding living quarters above. Carriage Houses and Coach Houses: Originally designed as outbuildings on larger estates to store horse-drawn carriages, carriage houses, and coach houses have often been repurposed as living accommodations, guest houses, or rental units while maintaining their historic architecture. The Benefits of ADUs Additional Dwelling Units (ADUs) are indispensable in alleviating housing shortages and addressing affordability challenges within various communities. They also offer a wide range of personal and economic advantages for homeowners and tenants searching for budget-friendly rental options. Some key benefits include: An Aging-in-Place Option for Seniors: ADUs can allow elderly relatives to stay in their community and maintain an important sense of connection with neighbours, friends, and family. Rental Income: Homeowners can establish a dependable revenue stream with an ADU. These units represent a highly appealing affordable housing alternative. Accommodation for Adult Children: An ADU can provide temporary living arrangements to adult children who may not be able to buy into the housing market or who want to be closer to their aging parents. Dedicated Office/Creative Space: With more people working from home part-time or going entirely virtual, ADU can provide a more professional and comfortable work environment But There's Another Payoff for ADUs Beyond these apparent benefits, I'm also struck by how ADUs can help us cultivate a stronger sense of community and intergenerational connection. Let me unpack this more and list some unique attributes of ADUs that make them so vital to our housing strategy: Affordability: ADUs can also be more affordable than standalone houses, making them increasingly attractive for individuals or small families looking for budget-conscious living options. Connection: ADUs are much closer to the primary residence. This allows younger renters to forge more meaningful relationships and interactions with their homeowners (many of whom are seniors). Equity: For renters who want to move beyond an apartment or condo but lack the financial means, ADUs could present a great alternative. They also provide a unique way to give renters access to neighbourhoods where housing availability is a challenge. For young families, renting an ADU could allow them to place their children in better schools that require residency in the school district. Support: As we age, we are more likely to need help maintaining our homes. For example, help with yard work and snow removal could be traded for reduced rent.  There is much to be said about the comfort and safety of having someone live a few steps away for our older generation.  ADUs are a Key Part of the Government's Housing Strategy The Federal Government just announced the expansion of the Canada Secondary Suite Loan Program. Here's what you need to know: The loan amount has been increased to $80,000, and it has a 2% interest rate and a 15-year repayment term.  In addition to the Secondary Suite Loan Program, homeowners can refinance with insured mortgages to help cover the cost of adding a secondary suite, starting January 15, 2025. Lenders and insurers will begin allowing mortgage refinancing of up to 90 percent of the post-renovation value of their home up to $2 million, amortized for up to 30 years. Homeowners can use this loan program and mortgage financing to help cover the cost of adding a secondary suite. These developments should get us all thinking more about the possibilities of ADUs. The benefits for many people and the clear intergenerational win-win exchanges are compelling. Given the impact they could yield for seniors in unlocking the value of their home equity and the compelling social benefits they offer for communities, I'll be exploring ADUs in much more detail over the coming year. Stay tuned. Don’t Retire … Re-Wire! Sue

Does Donald Trump Like Seniors?

At 78, Donald J. Trump already has 13 years of experience as a senior citizen. During his previous presidency, he occasionally referenced his senior status, particularly when discussing issues affecting older Americans. For example, in the 2020 election campaign, he acknowledged his age and addressed fellow seniors directly in his messaging, sometimes referring to himself as part of the senior community. Looking at his record, Trump appears to have a complex relationship with seniors. While expressing support for essential programs such as Social Security and Medicare, he often weaves the needs of seniors into his rhetoric. Yet some of his policy decisions have created mixed feelings among older Americans and advocacy groups. While pledging to protect these programs, he’s considered budget-cut proposals to reduce the funding of both these programs. Plus, his administration attempted to repeal the Affordable Care Act. While even the smartest of experts have learned it’s difficult to predict what Donald Trump will do on key policy decisions, there are some clues as to how his move back into the Oval Office will impact Canada and, more specifically, seniors. This topic got me wondering. Does Trump (a senior himself), like seniors? Let’s look closer at this demographic. Everyone knows that older people are the most reliable voters. The stats are compelling. According to Elections Canada - 75% of Canadians aged 65-74 voted compared to 48% of those aged 18-24. - The statistics for our US neighbours are similar, with 70% of Americans aged 65+ voting and 50% of Americans aged 18-29 voting. Knowing this voting power of the senior demographic, did Trump pander to this voting cohort? Yes, he most certainly did. He knew that as people age, their concerns narrow to a smaller list of critical topics such as Financial Security, Health, and Safety.  During his 2024 presidential campaign, Donald Trump focused heavily on appealing to older voters, who historically make up a significant portion of the electorate and are more likely to vote. His campaign emphasized economic stability, protecting Social Security and Medicare, and national security—particularly relevant to older demographics. Let’s take a closer look at how the Trump administration could impact Canada's senior demographic in the following areas: Inflation Background: Inflation has a direct correlation to the cost of living. As the prices of goods and services rise over time, the purchasing power of money decreases – a challenge for many seniors. Critical expenses like housing, healthcare, food, and utilities could increase noticeably, putting pressure on limited retirement incomes and pensions. All this is stressful. According to a 2024 national survey of over 2,000 Canadians (conducted by Leger on behalf of FP Canada), money remains the top stressor for Canadians, with 44 percent citing money as their primary concern; That's up from 40 percent in 2023 and 38 percent in both 2022 and 2021. What This Means: Two of Trump’s biggest promises in his campaign (mass deportation of undocumented immigrants and more restrictive trade regulations) would have a "significant impact," according to an article by Ellen Cushing in the Atlantic.  A domestic labour shortage plus double-digit import taxes would raise food prices on both sides of the border. Cushing goes on to say that “deporting undocumented immigrants would reduce the number of workers who pick crops by 40-50%.” While this rhetoric may have played well during the campaign, you can't fake the simple math here. Fewer workers means higher wages. That means higher prices. And the senior demographic will be hit hard because of their fixed incomes. Many will eat less of the expensive grocery store items like fresh meat, fruits and vegetables to make ends meet. Food prices will inevitably climb with these policies. The only question is when. According to a new poll conducted for CIBC and Financial Planning Canada on November 27, 2023, approximately 75% of working Canadians still need a formal financial plan for retirement. And many retirees face economic difficulties.  A whopping 25% are still carrying debt into retirement.  Many also report they have a substantial portion of debt and report that their retirement lifestyle isn't as comfortable as expected. The impact of inflation could be dire with few solutions; it is different for these older Canadians because they cannot re-enter the workforce. The only saving grace is that many of the hardest-hit Canadians are homeowners with equity options. Interest Rates Prediction: According to Beata Caranci, SVP & Chief Economist of TD Bank, the US is likely to raise interest rates to control growth. Canada is also expected to increase its rates, mainly to keep the Canadian dollar stable against the U.S. dollar. The Bank of Canada could be forced to rescind the projected planned interest rate reductions or at least reduce them. However, it's a delicate balancing act.  Our economy could suffer if we don’t mirror the US increases in interest rates. Impact: Increasing Canadian interest rates will impact seniors by increasing mortgage carrying costs. At the same time, older Canadians with investment savings could see increased returns on these savings. A rise in interest rates would also impact housing prices and foreign exchange rates. House Prices Background: Economic, demographic, and policy-related factors influence home prices in Canada. The new Trump administration will undoubtedly impact these factors. To understand this area, let's examine some significant variables affecting housing costs. 1. Supply and Demand When housing supply is limited, and demand is high, prices rise. Conversely, when supply exceeds demand, prices stagnate or fall. Should the new administration adopt more restrictive immigration policies in the US, Canada might see an increased influx of skilled workers and families seeking an alternative place to live. Housing demand will likely increase in major Canadian cities—Toronto, Vancouver, and Calgary- resulting in price increases. 2. Population Growth An increase in population or immigration boosts housing demand, particularly in urban centers, consequently increasing home prices. Canada welcomed 485,000 immigrants in 2024, many of whom settled in cities like Toronto and Vancouver. This influx has driven up demand for housing, contributing to price increases. The Canadian government has recently reduced the number of immigrants we allow into our country, dropping the number from 500,000 to 395,000 in 2025. Current immigration numbers plus any overflow from the US should keep demand buoyant and we could see home prices continue to rise. However, Canada needs more housing, especially in high-demand urban areas. In addition to immigration, slow construction timelines and zoning restrictions are contributing factors. Canada's ongoing housing shortage and the potential impacts of Donald Trump's election win in the U.S. could exert upward pressure on home prices, particularly in major cities like Toronto and Vancouver. These cities, already grappling with limited housing and high prices, will likely see further price increases due to increased demand.  Without robust policy interventions to increase the housing supply, Canada’s housing prices, particularly in major centers, will likely continue rising. And there will be winners and losers here. This is great news for seniors wishing to sell and exit the market by finding other living arrangements, such as renting, moving in with family, or entering retirement homes. It is even better news for seniors wishing to age in place as they will have more equity to fund their retirement. But it’s disappointing news for those wishing to downsize and stay in the same communities. They may be able to sell high, but they could also be forced to buy high. 3. Foreign Currency Trump's policies, such as tax cuts and protectionist trade measures, have historically strengthened the U.S. dollar. If similar policies are reintroduced, the U.S. dollar could become more robust due to increased investor confidence and perceived economic growth in the U.S. That’s bad for Canadians traveling or living in the U.S.  Trump's potential trade disputes, particularly with China, and his aggressive geopolitical stance could also create uncertainty in global markets. While this might temporarily strengthen the U.S. dollar as a haven, long-term concerns about trade wars and deficits could cause fluctuations, impacting the Canadian dollar's stability against the U.S. dollar. This volatility directly impacts Canadians, especially those with significant financial exposure to the U.S. dollar. A second Trump presidency will likely impact the exchange rate between Canadian and U.S. dollars, which is especially relevant for 85% of Canadian Snowbirds, who, according to Snowbird Advisor, spend winters in the United States. This number was estimated to be 900,000 in 2023. These seniors may face increased expenses for property taxes, utilities, and other daily living costs in the U.S. If exchange rate volatility persists, locking in more favourable rates or using specialized currency exchange services, US credit/debit cards with lower transaction fees, and using US dollar accounts might be wise - especially for more significant financial transactions. The Bottom Line One thing is certain. Trump's second term has the potential to impact many Canadian seniors if he implements the policies he discussed during his election campaign. While some could benefit financially from higher home equity and investment returns, many may need help with increased living costs, especially food and foreign exchange challenges, particularly Snowbirds and those on fixed incomes.  While we are all watching this situation unfold, one thing is sure.  It's difficult to predict if Trump’s second term will make Canadian or US seniors "great again."

Closer to Home

Lawrence Levy, executive dean of the National Center for Suburban Studies, broke down all the key New York races. He appeared on The Point with Marcia Kramer on WCBS-TV 10/20; News 12 on both 10/16 and 10/17, and WCBS-FM on 10/20. He also spoke with Fox 5, which syndicated to several outlets including Yahoo!news. Levy also contributed to a Newsday article about property tax relief. “There is no chance that it [STAR credit] would be anything but increased because it has now become something that people count on,” he said.

AI Art: What Should Fair Compensation Look Like?

New research from Goizueta’s David Schweidel looks at questions of compensation to human artists when images based on their work are generated via artificial intelligence. Artificial intelligence is making art. That is to say, compelling artistic creations based on thousands of years of art production may now be just a few text prompts away. And it’s all thanks to generative AI trained on internet images. You don’t need Picasso’s skillset to create something in his style. You just need an AI-powered image generator like DALL-E 3 (created by OpenAI), Midjourney, or Stable Diffusion. If you haven’t tried one of these programs yet, you really should (free or beta versions make this a low-risk proposal). For example, you might use your phone to snap a photo of your child’s latest masterpiece from school. Then, you might ask DALL-E to render it in the swirling style of Vincent Van Gogh. A color printout of that might jazz up your refrigerator door for the better. Intellectual Property in the Age of AI Now, what if you wanted to sell your AI-generated art on a t-shirt or poster? Or what if you wanted to create a surefire logo for your business? What are the intellectual property (IP) implications at work? Take the case of a 35-year-old Polish artist named Greg Rutkowski. Rutkowski has reportedly been included in more AI-image prompts than Pablo Picasso, Leonardo da Vinci, or Van Gogh. As a professional digital artist, Rutkowski makes his living creating striking images of dragons and battles in his signature fantasy style. That is, unless they are generated by AI, in which case he doesn’t. “They say imitation is the sincerest form of flattery. But what about the case of a working artist? What if someone is potentially not receiving payment because people can easily copy his style with generative AI?” That’s the question David Schweidel, Rebecca Cheney McGreevy Endowed Chair and professor of marketing at Goizueta Business School is asking. Flattery won’t pay the bills. “We realized early on that IP is a huge issue when it comes to all forms of generative AI,” Schweidel says. “We have to resolve such issues to unlock AI’s potential.” Schweidel’s latest working paper is titled “Generative AI and Artists: Consumer Preferences for Style and Fair Compensation.” It is coauthored with professors Jason Bell, Jeff Dotson, and Wen Wang (of University of Oxford, Brigham Young University, and University of Maryland, respectively). In this paper, the four researchers analyze a series of experiments with consumers’ prompts and preferences using Midjourney and Stable Diffusion. The results lead to some practical advice and insights that could benefit artists and AI’s business users alike. Real Compensation for AI Work? In their research, to see if compensating artists for AI creations was a viable option, the coauthors wanted to see if three basic conditions were met: – Are artists’ names frequently used in generative AI prompts? – Do consumers prefer the results of prompts that cite artists’ names? – Are consumers willing to pay more for an AI-generated product that was created citing some artists’ names? Crunching the data, they found the same answer to all three questions: yes. More specifically, the coauthors turned to a dataset that contains millions of “text-to-image” prompts from Stable Diffusion. In this large dataset, the researchers found that living and deceased artists were frequently mentioned by name. (For the curious, the top three mentioned in this database were: Rutkowski, artgerm [another contemporary artist, born in Hong Kong, residing in Singapore] and Alphonse Mucha [a popular Czech Art Nouveau artist who died in 1939].) Given that AI users are likely to use artists’ names in their text prompts, the team also conducted experiments to gauge how the results were perceived. Using deep learning models, they found that including an artist’s name in a prompt systematically improves the output’s aesthetic quality and likeability. The Impact of Artist Compensation on Perceived Worth Next, the researchers studied consumers’ willingness to pay in various circumstances. The researchers used Midjourney with the following dynamic prompt: “Create a picture of ⟨subject⟩ in the style of ⟨artist⟩”. The subjects chosen were the advertising creation known as the Most Interesting Man in the World, the fictional candy tycoon Willy Wonka, and the deceased TV painting instructor Bob Ross (Why not?). The artists cited were Ansel Adams, Frida Kahlo, Alphonse Mucha and Sinichiro Wantabe. The team repeated the experiment with and without artists in various configurations of subjects and styles to find statistically significant patterns. In some, consumers were asked to consider buying t-shirts or wall art. In short, the series of experiments revealed that consumers saw more value in an image when they understood that the artist associated with it would be compensated. Here’s a sample of imagery AI generated using three subjects names “in the style of Alphonse Mucha.” Source: Midjourney cited in http://dx.doi.org/10.2139/ssrn.4428509 “I was honestly a bit surprised that people were willing to pay more for a product if they knew the artist would get compensated,” Schweidel explains. “In short, the pay-per-use model really resonates with consumers.” In fact, consumers preferred pay-per-use over a model in which artists received a flat fee in return for being included in AI training data. That is to say, royalties seem like a fairer way to reward the most popular artists in AI. Of course, there’s still much more work to be done to figure out the right amount to pay in each possible case. What Can We Draw From This? We’re still in the early days of generative AI, and IP issues abound. Notably, the New York Times announced in December that it is suing OpenAI (the creator of ChatGPT) and Microsoft for copyright infringement. Millions of New York Times articles have been used to train generative AI to inform and improve it. “The lawsuit by the New York Times could feasibly result in a ruling that these models were built on tainted data. Where would that leave us?” asks Schweidel. "One thing is clear: we must work to resolve compensation and IP issues. Our research shows that consumers respond positively to fair compensation models. That’s a path for companies to legally leverage these technologies while benefiting creators." David Schweidel To adopt generative AI responsibly in the future, businesses should consider three things. First, they should communicate to consumers when artists’ styles are used. Second, they should compensate contributing artists. And third, they should convey these practices to consumers. “And our research indicates that consumers will feel better about that: it’s ethical.” AI is quickly becoming a topic of regulators, lawmakers and journalists and if you're looking to know more - let us help. David A. Schweidel, Professor of Marketing, Goizueta Business School at Emory University To connect with David to arrange an interview - simply click his icon now.

Changes to Philadelphia's Tax Structure Could Represent "Pivotal" Economic Shift

On March 14, Philadelphia mayor Cherelle Parker delivered her first budget proposal in a 75-minute address to City Council. Throughout her speech, the new mayor touched on subjects ranging from corridor cleaning and housing programs to police spending and anti-violence grants. However, one set of items was absent from her $6.29 billion plan and presentation. In a break from recent administrations, Mayor Parker abstained from calling for cuts to the city's wage or business taxes. She also refrained from speaking on adjustments to Philadelphia's tax structure, which depends more heavily than other municipalities on wage taxes and has a relatively light property tax burden. Theodore Arapis, PhD, chair of Villanova University’s Department of Public Administration and an expert on fiscal policy in local governance, believes that changes to how Philadelphia levies and handles taxes, particularly on the real estate front, should be discussed further. "[Having property taxes play a larger role] represents a pivotal shift towards creating a more resilient and efficient revenue system," said Dr. Arapis, after reviewing the mayor's plan. "The current reliance on wage taxes is subject to considerable volatility, undermining fiscal stability. In contrast, property taxes offer a more inelastic and predictable revenue stream, suggesting a strategic move towards them would be beneficial for the city." Dr. Arapis also maintains that, with Harrisburg's go-ahead, Philadelphia's real estate taxes could be structured in a way that effectively facilitates business growth, while ensuring that homeowners are not unduly burdened. "Differentiating tax rates between commercial and residential properties could strike a delicate balance—spurring economic development while maintaining equitable tax distribution," he stated. "This segmentation could stimulate business activity by creating favorable conditions for commercial enterprises, which is essential for Philadelphia's economic vitality." Additionally, Dr. Arapis contends that tweaks to the city's tax abatement policy, which is currently in the process of a gradual phaseout, could further provide for inclusive and sustainable growth. "Tax abatements have been utilized as a policy tool to stimulate property revitalization and neighborhood renewal. However, these measures often carry unintended consequences that disproportionately impact existing residents," he shared. "Specifically, such incentives can precipitate a rise in property values and, consequently, a hike in the tax burdens of non-abated properties. This dynamic can exacerbate gentrification, leading to the displacement of longstanding community members. "To address the complexities of tax abatement policies in fostering affordable [and accessible] housing, a nuanced strategy is vital. A more equitable distribution of housing affordability could be achieved by, say, mandating that at least 50% of units in new developments meet affordability criteria... [and diversifying] the approach to income targeting, perhaps through a tiered system that caters to various income levels [and indexes] these categories to local inflation and wage growth." Despite the content of her first budget proposal and address, Mayor Parker likely shares some similar perspectives on tax reform and structural adjustments. Prior to entering office, during her years as a City Council member and days on the campaign trail, the acting executive worked to lower Philadelphia's wage tax, acknowledged the untapped potential of property taxes and expressed her desire for a differentiation of property tax rates. Before pursuing these measures further, as The Philadelphia Inquirer reports, Mayor Parker is probably (1) holding off until the newly announced Tax Reform Commission shares its findings, (2) ensuring that there are no immediate, major disruptions to the city's flow of revenue, as she launches her "safer, cleaner, greener" agenda, and (3) waiting for state lawmakers to make greater progress on raising the minimum wage and restructuring the Commonwealth's tax legislation, namely the uniformity clause. The mayor did, however, make one notable tax-related recommendation in her budget plan: She proposed an increase to the school district's share of real estate tax revenue from 55% to 56%, which could boost funding for the district by $119 million over five years. "The redistribution of real estate taxes between the school district and the city is commendable as an initial measure," observed Dr. Arapis. "However, without a comprehensive reform of the real estate tax system, encompassing regular property reassessments and adjustments to mill rates, this change is likely to yield only ephemeral benefits."