The Three Stages of Losing Control to AI
Your board can't govern what it doesn't understand
We already know that algorithms can collude and form cartels to raise prices. This is no conspiracy, as even the Federal Reserve has warned about this as one of the risks associated with generative AI. This isn’t just a risk in trading systems - it’s a risk in every AI system, especially pricing systems.
Algorithms will maximise what they’ve been designed to do. A profit-seeking algorithm that identifies anti-competitive behaviour can exacerbate it. This isn’t by design; this is emergent behaviour.
Algorithms and AI are often intertwined, and machine learning is already widely deployed across the economy. We already live in a world of algorithms, but with the rise of generative AI, many more people are becoming concerned about its consequences.
The business built around AI, APIs and AI agents exists in a world of more unknown unknowns. Ex…
