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Sir Tim Berners-Lee Lays Out Nightmare Scenario Where AI Runs the Financial World (techworld.com)

Posted by msmash on from the shape-of-things-to-come dept.

The architect of the world wide web Sir Tim Berners-Lee has talked about some of his concerns for the internet over the coming years, including a nightmarish scenario where artificial intelligence (AI) could become the new 'masters of the universe' by creating and running their own companies. From an article: Masters of the universe is a reference to Tom Wolfe's 1987 novel The Bonfire of the Vanities, regarding the men (and they were men) who started racking up multi-million dollar salaries and a great deal of influence from their finance roles on Wall Street and in London during the computerised trading boom pre-Black Monday. Berners-Lee said, "So when AI starts to make decisions such as who gets a mortgage, that's a big one. Or which companies to acquire and when AI starts creating its own companies, creating holding companies, generating new versions of itself to run these companies. So you have survival of the fittest going on between these AI companies until you reach the point where you wonder if it becomes possible to understand how to ensure they are being fair, and how do you describe to a computer what that means anyway?"

10 of 131 comments (clear)

  1. As opposed to ... by El+Cubano · · Score: 3, Funny

    ... Nightmare Scenario Where AI Runs the Financial World

    As opposed to the natural stupidity that currently runs it? How could the AI be worse?

    1. Re:As opposed to ... by king+neckbeard · · Score: 4, Insightful

      How is that scenario different from the humans? It seems that they were not programmed with negative consequences, and they are NOT learning either.

      --
      This is my signature. There are many like it, but this one is mine.
    2. Re:As opposed to ... by Anonymous Coward · · Score: 3, Insightful

      The AI may just go the the biggest and best profit regardless of consequences. For example if it is profitable for it to crash the markets, have millions out of work and companies going bankrupt all so it can make a few thousand dollars bigger profit

      The hell are you talking about? That's exactly how humans are ruining economies right now. Get out of your cushy white collar office space sometime and see how your top tier entitled privileged lifestyle compares to real people in the real world.

  2. And the differnce is? by king+neckbeard · · Score: 5, Interesting

    So, the financial industry will be controlled by heartless automatons, but now they will make intelligent, logical decisions? Seems like a net gain.

    Also, MOTU is a reference to He-Man.

    --
    This is my signature. There are many like it, but this one is mine.
    1. Re:And the differnce is? by fustakrakich · · Score: 3, Funny

      ...and instead decides to start keeping it all.

      And do what? Head off to Bloomingdale's?

      --
      “He’s not deformed, he’s just drunk!”
  3. More AI by 110010001000 · · Score: 5, Insightful

    More AI bullshit. We can barely even create functional regular software.

  4. Chinese Wall by Stargoat · · Score: 3, Interesting

    Nightmare scenario for traders, benefit for everyone else. The AI likely would have Chinese walls built into them to prevent collusion and insider trading. I for one look forward to my innately honest (and auditable/examinable) AI masters

    --
    Hoist Number One and Number Six.
    1. Re:Chinese Wall by KiloByte · · Score: 3, Insightful

      The AI likely would have Chinese walls built into them to prevent collusion and insider trading.

      Ha ha ha. Hahahahahaha. Well played, sir.

      --
      The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
    2. Re:Chinese Wall by reanjr · · Score: 4, Insightful

      There's no guarantee an AI will be auditable. Lots of AIs are too complicated to understand how they work.

  5. Re:Ah, yes... by ShanghaiBill · · Score: 4, Informative

    The one in 2010 was attributed to HFT bots."

    The "flash crash" was attributed to HFT bots in the immediate aftermath. A fuller investigation determined that they were not the cause, and when HFT programs were disabled, that actually made the crash worse because of reduced liquidity. Programmed trading may have been a cause, but HFT != programmed trading.

    It is for this reason that I propose a random small amount of time (say, 30 sec to 2 min?) be added to all trades.

    What "problem" are you trying to solve?
    HFT algorithms reduce transaction costs and reduce prices for everyone else.
    Your "solution" will increase costs, and provide no benefit to the "little guy" (who doesn't have direct access to the market in the first place), since HFTs will just wait until the last microsecond before the window closes to place their trade.
    A bigger problem is that most transactions (by volume) don't even happen in the public markets.
    They happen in unregulated and opaque dark pools, and your "solution" will just make that even worse.