The bestselling author, philosopher and historian sees grim potential for AI to get out of control in the financial system.
The financial system creates trust, Harari argued. Money, bonds and other financial devices allow millions of strangers to work together toward common goals. But no effort has been made to make financial regulation understandable “to humans,” he Harari cited the financial crisis of 2007-2008 as an outcome of incomprehensible financial innovation. Regulators were unable to understand new financial products well enough to regulate them.AI is an alien form of intelligence that is only at the beginning of its evolution. It does not reason the way humans do and could easily create financial devices that are beyond human imagination, shifting power away from politicians and regulators to algorithms.