Financial crisis, powered by AI

Hey there,

Believe it or not, bots can now outdo us at the "Are you a robot" tests!

📰 News: Could the adoption of AI in trading send us into a financial meltdown?

🛠️ Tools: Get a bot for your business - Automate customer support with a ChatGPT-like bot in less than 3 minutes!

Reading time is 4 minutes. Let’s dive in 🤿

 Big Tech

Adoption of AI in trading could lead to Financial crisis

TL;DR: Homogenous AI trading models could trigger a financial crash.

The head of the SEC, Gary Gensler, issued a warning about the rising use of AI systems in finance, suggesting they could potentially precipitate a financial crisis.

Why the concern:

1. Black Box decisions: The inner workings of AI models remain a mystery, making their buy or sell decisions inscrutable.

2. Similar Models: Significant risk of "model homogeneity" as companies utilize similar datasets to train their AI models, and many researchers share comparable educational and professional backgrounds.

Bigger Picture: The combination of uniform training datasets and consistent regulations on AI model outputs may result in financial models that yield similar predictions. For instance, if many AI trading systems simultaneously decide to sell a stock, it could catalyze a financial meltdown.

Insurance and banking institutions are now employing AI to assess the "creditworthiness" of applications, despite these models often having inherent biases and lacking decision-making transparency!

Leverage AI Tools

• AlgoMo: Automate and optimize your customer support with a ChatGPT-powered bot, in less than 3 minutes (link)

• Podstash: Turn any link into a short podcast (link)

• Mindpal: Dump all your files and chat with them like a second brain.(link)

• Uncoop: Let your personal AI read books for you. Uncoop distills insights & action items from non-fiction books & uses AI to apply them to your life (link)

 Today in Tech

• “Are you a Robot” checks: AI bots are now more proficient at passing them than humans. (link)

• Bias in AI: A look at the years of warnings about AI from researchers, including several women of color, who say we need to take the problems and risks seriously today (link)

• Manufacturing in India: “Make in India” mobile phone shipments crossed 2B cumulative units between 2014 and 2022, registering a 23% CAGR, and made up 98%+ of local shipments in 2022 (link)

• Managing Supply Chains: How Unilever, Siemens, Maersk, and other big companies are using AI to negotiate contracts, find new suppliers, and navigate other complex supply chain issues (link)

• Pay with Palm tech: A look at Amazon One palm scanning tech, used for payments, age and ID verification, and more at US retailers, stadiums, and other venues, amid privacy concerns (link)

• Law protecting children from influencers: Illinois passes the US' first law protecting child influencers, entitling influencers under age 16 and kids featured by influencers to a percentage of earnings (link)