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The one you are forgetting is probably the most important one : control of the financial system. With the recent advances in natural language processing, more
by GistNoesis 4y ago
The one you are forgetting is probably the most important one : control of the financial system.
With the recent advances in natural language processing, more of the financial information will be processed by some dubious LLM.
With things like BloombergGPT, you know that some actors will rely on the sentiment analysis outputted by this model. Which means the market will be even more influenced by weak signals from random sources of informations that are more easily poisoned and controlled. Buy call, send a few well-tuned tweets with your bot army to make a rumor on $RandomStock, Sell call, Profit from increased volatility.
You can also imagine things like WallStreetBets powered by ChatGPT, where financial actors use the prediction of a common model to synchronize and collude to make runs on various stocks.
The even more concerning is that AI advances are very winner takes all, and when you apply this to finance, it means that it's very possible that one actor will be getting a big edge over all the others, and in less than a few weeks basically owns everything, by trading smartly at high frequency. Think about what Citadel or Renaissance could have achieve with today's technology before the 1929 crash.