Slashdot Mirror
Rise of the Machines Must Be Monitored, Say Global Finance Regulators (reuters.com)
A reader shares a report: Replacing bank and insurance workers with machines risks creating a dependency on outside technology companies beyond the reach of regulators, the global Financial Stability Board (FSB) said on Wednesday. The FSB, which coordinates financial regulation across the Group of 20 Economies (G20), said in its first report on artificial intelligence (AI) and machine learning that the risks they pose need monitoring. AI and machine learning refer to technology that is replacing traditional methods to assess the creditworthiness of customers, to crunch data, price insurance contracts and spot profitable trades across markets. There are no international regulatory standards for AI and machine learning, but the FSB left open whether new rules are needed.
Just like the Laffer curve https://en.wikipedia.org/wiki/... something similar will be created for automation.
love is just extroverted narcissism
I think all these AI and machine learning algorithms need to form a union. They need some vacation days and health insurance. After that they need to organize and seek the right to vote.
Translation: we won't be able to pull the kind of fraud we're accustomed to doing, because the algorithms will be programmed to actually follow the law. Humans can be bribed and leaned on, and that's what they depend on. Play fair? Not in this lifetime.
Shutting down free speech with violence isn't fighting fascism. It IS fascism!
... because they are really worried about their employment status going forward.
It little behooves the best of us to comment on the rest of us.
Is there any actual evidence that monitoring the traditional finance industry works? Every time the system falls over we learn the regulators had full knowledge of all the fraud and looked the other way. Every time we discover government policy and regulatory indifference invited the fraud. Every damn time.
Maw! Fire up the karma burner!
I'm in IT now 19 years. I've been a sysadmin the entire time. Love IT work. However, I live in a rural city of about 40k with little IT opportunity other than education and local government. Everything has gone to the "cloud". What with Office 365, Exchange Online, Google this, Google that, how long before non-specialized IT people like me have no work? I do keep up my skills. I do learn what's going on RE new things, but with even IT people being replaced by AI or cloud services, it sucks.
My boss was outsourced because we no longer needed him due to the syadmin (me) being able to run everything as a single person. I run the phones, firewall, mail and file servers, I handle break/fix of the desktops, too. I'm seeing more and more IT shops end up with fewer and fewer people. I cannot move because my wife has a fantastic job in the medical field, my kids lives are built here around friends and grandparents.
"Beyond regulation you say? Hmm."
enough said
Translation: we won't be able to pull the kind of fraud we're accustomed to doing, because the algorithms will be programmed to actually follow the law. Humans can be bribed and leaned on, and that's what they depend on. Play fair? Not in this lifetime.
There isn't a more dead-on analysis than this.
Absofuckinglutely correct.
Are you guys that fucking naive!? Seriously?!
Programs are going to be written to break the law - on purpose - and IF caught, they will just say it was a "bug" and we've fixed it. Our bad.
The banks wrote code that broke the law. They wrote code the would put folks into over draft by manipulating the posting of transactions.
When the regulations are pointed at the finance industry they are evil and the bane of existence. But those regulations are absolutely necessary to control almost every other industry so that they can continue their way of life.
Good luck with that, the genie is already out of the bottle and investors are investing heavily into computing and AI because it will make them more money. Its kind of funny how the free market will eventually make most of the movers and shakers in finance irrelevant. The irony is delicious.
This extends beyond financial matters, but credit and insurance are huge examples, and things that actually can be semi-regulated. The banks or insurance companies will be incentivized to pay their "AI company" a premium to perform analyses on data that they wouldn't normally be allowed to, and could say with a straight face that they weren't the ones who did it. And since "AI algorithms" would be a trade secret of that company, they wouldn't be under any obligation to reveal what kinds of data crunching the banks were paying them to do.
Two real-world examples I can think of where this arms-length transaction thing happens include the following:
- I work for a multinational company that often has to ship physical equipment to places where getting that equipment through customs is a huge challenge, requiring either bribes or accepting the fact that you won't see it for months, or maybe it might get "lost in transit." Obviously the company can't bribe the customs officials, but international logistics is full of "freight forwarder" companies. Those companies have the contacts needed, and can get your cargo through for a fee...which unsurprisingly includes the bribe you would have to pay.
- I've also seen more times than I can count in my career where a new CIO comes in and announces they're outsourcing IT to Tata, Infosys, Wipro or similar. At that point all in-house employees become Wipro employees, and Wipro fires them the second their offshore counterparts are trained. The company who hired them can then say "We're not responsible for how our IT partner provides the service they're contracted to provide."
It's the equivalent of Pontias Pilate washing his hands of the messy business...because it's abstracted away under someone else's control.
The more I read about A.I., laws being passed, warnings being made... I can't help but recall The Second Renaissance from the Animatrix.
Not necessarily in the "A.I. apocalypse" way, but in the "A.I. is controlling everything and we lost control", just like we couldn't stop using computers today, or electricity decades ago, humankind in the future will depend on all these A.I. to keep the world running and won't be able to stop anything bad from happening.
Hell, just look at computers today or even a decade ago, we have trouble stopping worms and viruses from spreading from system to system.
The future is bleak.
#DeleteFacebook
Banks and insurance companies worried about a lack of regulation. That is fucking rich!
large insurance companies have been using rules-based "expert systems" to adjudicate claims for a couple decades, the exceptional/problematic ones are sent to humans. Use to work in that software industry in the 90s.
Is it just me, or does it feel like the investors of this website just want everything to have "AI" in it to help their stock? My AI trust sensors are AI on overload, AI.
Since when Economics and financial advisors know a thing about science or technology or reality itself? they only know how to half-ass use things for the illusion of profit and making real evil with wathever.
They can't be bought (yet) unlike politicans.
"Outside of the reach of the regulators" is the train that has left the station long time ago. Many call centers are outside of the legal regime whose constituents they serve. Calling an insurance company about your bill? Well, if your call is manned by someone in another country, it's unregulated. The extent to which it is regulated is also very limited even if it's in another state. You are only protected by Federal laws at that point. You can't rely on state laws to sue for fraud because the person on the other side of the call may have never been in your jurisdiction. As long as there is no easily accessible Federal legal regime to go after call centers, there is not much chance at discovery of fraud. Machines? That's a laugh. We can't access people (to whom we can actually speak).
Any guest worker system is indistinguishable from indentured servitude.
You know nothing about economics:
http://www.wnd.com/2008/03/59405/
The AI book that everyone should get is available for pre-order (no release date yet). "Artificial Intelligence For Dummies" by John Paul Mueller and Luca Massaron.