As a crypto investor with a background in technology and a healthy dose of skepticism, I find Yuval Noah Harari’s warnings about the dangers of unchecked AI in the financial system both intriguing and alarming. Having witnessed the chaos and uncertainty of the 2008 financial crisis firsthand, I can relate to his concerns about the potential for even more complex and incomprehensible innovations to further erode trust in our financial institutions and potentially lead to social instability.
The excessive implementation of artificial intelligence in the financial sector could result in severe consequences, according to Yuval Noah Harari, a renowned author, philosopher, and history professor. He emphasized the importance of robust institutions to regulate and control the use of AI.
Harari pointed out that the financial system fosters trust among people. Through instruments like money, bonds, and other financial tools, vast numbers of individuals can collaborate towards shared objectives. However, there seems to be a lack of clarity in making financial regulations accessible to the general public, according to him.
“Maybe 1% of the population understands how the financial system works. What happens when that number goes down to zero?”
Harari pointed out that the financial crisis between 2007 and 2008 occurred due to complex financial innovations that were hard for regulators to grasp. Consequently, they found it challenging to effectively oversee and control these novel financial instruments.
AI represents a distinct type of intelligence that is currently in its infancy, unlike human intelligence. It may not follow the same logical processes as humans, leading it to generate financial innovations far surpassing our current understanding. The influence over finance could potentially shift from human authorities towards these advanced systems. Confidences would be established among AI entities instead of individuals, and during economic turmoil, policymakers and regulators might find themselves relying on AI for guidance.
As a analyst, I’d put it this way: The breaking down of trust bonds among individuals, politicians, and institutions could potentially result in social unrest. Trust levels towards political figures and establishments have been on the decline as per Harari’s observation.
“We need to prevent AI from becoming completely unfathomable. […] We need the ability to understand it and regulate it.”
Geniuses and charismatic leaders should not be the sole keepers of regulation, Harari emphasized. Instead, it is essential for institutions to maintain a role in overseeing human behaviors.
As a researcher studying the potential impact of artificial intelligence (AI) on society, I can’t help but acknowledge that even groundbreaking innovations come with risks. The history of humanity is riddled with examples of grand endeavors that initially seemed promising but ultimately failed, resulting in untold suffering for millions. Imperialism, communism, and Nazism are just a few instances where the pursuit of progress led to devastating consequences.
Harari emphasized that regulators should focus on fostering greater trust among people in order to create a financially stable and humane system for the future.
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2024-05-08 00:53