Several tech leaders, including Sam Altman and Elon Musk, have expressed concerns about the potential risks associated with AI. While their concerns may seem genuine, some speculate that AI executives may have ulterior motives for issuing these warnings.
A recent Bloomberg report highlighted AI as the central theme of the Bloomberg Technology Summit. This is not surprising, given that AI has become one of the hottest trends in the tech industry.
In fact, according to FactSet, a financial data provider, 110 S&P 500 companies mentioned AI in their Q1 2023 earnings call. This is more than three times the ten-year average and the highest level since 2010.
US companies are highly interested in AI due to the significant amount of investment that has been poured into listed AI stocks this year. C3.ai, which is one of the few pure-play listed AI companies, has tripled its value this year, and Nvidia, whose chips are essential for building AI models, has also experienced a similar surge. The optimism towards AI has led to a broad-based rally in US tech stocks, with the Nasdaq 100 adding $4 trillion to its market cap this year. While many tech leaders view AI as a massive opportunity, some have raised concerns about its potential risks, including the possibility of it being an "existential risk" for humanity.
AI executives warn of AI taking over the world for a not-so-altruistic reason. Tech Leaders Warn AI is Taking Over the World
Elon Musk, along with other tech leaders, has been warning about the potential risks of artificial intelligence (AI). During the Wall Street Journal CEO Summit, he stated that while it is unlikely that AI will annihilate humanity, there is still a non-zero chance of it going out of control. Musk believes that AI could put humans under strict control, but he does not think it will try to destroy us all. He has been advocating for AI regulations and met with US lawmakers in April to discuss the issue. The White House also held a meeting with CEOs of OpenAI, Google, Microsoft, and Anthropic to discuss AI with Vice President Kamala Harris. OpenAI CEO, Sam Altman, admitted that AI can go wrong during his testimony before the Senate, which he reiterated at last week's Bloomberg Tech Summit. Musk was also one of the tech leaders who wrote an open letter calling for a halt on AI models that are more powerful than GPT-4. AI executives warn of AI taking over the world for a not-so-altruistic reason.
It’s Not All Altruism About Calls to Regulate AI
Palantir CEO Alex Karp has expressed disagreement with those who call for a halt on AI models, stating that they are doing so because they are lagging behind and do not have any product ready. Karp believes that these individuals want to take a pause to study AI during this timeframe and develop their own products. Elon Musk, for example, is working on his startup TruthGPT and has stated that the industry needs a "third horse in the race" to compete with ChatGPT and Google Bard.
A Bloomberg report has listed another reason why AI leaders across the board have been warning of technology going rogue. The report states that if they make a compelling case that so much depends on handling AI correctly, other aspects of running the business, such as raising money, attracting customers, and recruiting the most in-demand engineers, become easier.
In the first quarter of 2023, global AI venture funding saw a significant decline, which was consistent with the overall decrease in venture capital (VC) funding. According to Crunchbase, funding for AI startups fell by 43% YoY to $5.4 billion in Q1 of the year. Out of the 38 unicorns that emerged in the first five months of this year, eight of them were AI companies. In May, Builder.ai, CoreWeave, and Anthropic were among the AI companies that secured funding.
Countries Are Looking to Regulate Artificial Intelligence
Concerns over the risks associated with AI are not unfounded, as evidenced by recent incidents such as an AI-generated fake image showing a blast near the Pentagon, which caused a momentary crash in US stocks. Regulators in most developed countries are considering implementing AI regulations, and the European Union is expected to establish rules governing the technology in the near future. In the UK, the Competition and Market Authority is investigating AI, and Prime Minister Rishi Sunak has announced plans to hold a global summit on AI regulations in the fall of this year. During his keynote address at the London Tech Week earlier this month, Sunak emphasized the need for global cooperation on AI regulations, stating that "AI doesn't respect traditional national borders."
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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