“AI is Going to Crash the Economy!”

Gary Gensler's infinite wisdom. [Altucher Confidential] December 13, 2023 [WEBSITE]( | [UNSUBSCRIBE]( SEC Chairman Gary Gensler has taken a break from his crusade against cryptocurrency to square off against another emerging technology&hellip [Hero_Image] “AI is Going to Crash the Economy!” [Chris Campbell] CHRIS CAMPBELL Dear Reader, Will AI crash the economy? Gary Gensler, head of the SEC, seems to think so. In the featured article below, our Paradigm colleague Ray Blanco will give you all the details on: → Why Gary Gensler, of all people, is freaking out about AI → What this could mean for the future of AI → And how to invest in the solutions More in a second. First… The Big Day is Upon Us Every one of our world-class financial experts will reveal their BIGGEST predictions for 2024… Plus offer up exclusive recommendations for how to profit in the year ahead… And it’s all happening TODAY at 3PM EST. [Click here to learn more]( Be in your seat at 3:00pm ET on Wednesday, Dec. 13th. (Yes, today.) [Click here to make sure you’re registered and ready to roll.]( And read on. [Claim a copy of the most dangerous book in America right now.]( This is the only book I’ve ever read that brings to life the horrifying fallout of a massive international currency war. A war that’s playing out as we speak. In fact, this book is so hair-raisingly accurate… I’m offering to send you a copy for free today as a way to help prepare you for what could happen next. But with only 500 copies in stock, once we are out, they could be gone for good. [Simply click here now]( and I’ll show you what to do. The Next Financial Crisis Ray Blanco SEC Chairman Gary Gensler has taken a break from his crusade against cryptocurrency to square off against another emerging technology… Artificial intelligence. Specifically, Gensler’s concern is about the widespread use and possible overreliance of AI systems throughout Wall Street. Going as far as to say that AI could lead to the next financial crisis. The Security and Exchange Commission has started a “sweep”, requesting information and data from major investment firms in order to form their regulatory efforts regarding the use of artificial intelligence on Wall Street. This sweep builds on the SEC’s [July proposal]( for new rules regarding data analytics and AI systems. The focus of that proposal was to address potential conflicts of interest that are allegedly possible with advanced predictive data analysis methods, like AI. Gensler said this proposal was meant to address… “...possibilities that conflicts may arise to the extent that advisers or brokers are optimizing to place their interests ahead of their investors’ interests. When offering advice or recommendations, firms are obligated to eliminate or otherwise address any conflicts of interest and not put their own interests ahead of their investors’ interests.” While the call-to-action here is basically for firms to review any conclusions drawn from AI-based analysis for possible biases, more dramatic concerns have also been voiced by Gensler. Earlier in the year he went as far as to say future observers would say, “the crisis in 2027 was because everything was relying on one base level, what’s called [the] generative AI level, and a bunch of fintech apps are built on top of it”. The reliance of a few specific AI providers could “drive us off an inadvertent cliff”, according to Gensler. Another concern of the Chairman is something he calls “AI Washing”, or firms over-selling the power of their AI systems. Using “AI” as a buzzword in false marketing. This latest sweep shows an intention for the SEC to broaden the scope of its AI regulation, but does not mean there is any suspicion of wrongdoing by the firms being questioned. Balance Of Power As I briefly mentioned earlier, Gary Gensler has built a reputation of flexing his regulatory muscles arguably to the point of overreach, mostly through his handling of cryptocurrency regulation. It’s easy to assume he’s doing the same here in regards to AI. But it’s still important to consider the arguments being made by the SEC, especially considering the power of this transformative new technology. Artificial intelligence is being widely used among major investment firms. Both BlackRock and JPMorgan Chase run their own AI research groups, while representatives for both Fidelity and Goldman Sachs have made statements acknowledging the potential for using AI in wealth management. According to Wells Fargo analyst Mike Mayo, “If you’re a bank and don’t have an AI strategy, then you don’t have a strategy”. While over-regulation and infringing on the free market is an obvious concern, you don’t need to have that good of a memory to recall the potential damage of Wall Street sharing the same shortsighted investment strategy… The SEC seems to be more interested in spreading out risk than creating blanket limitations on the use of potentially transformative AI systems. The “cliff” that Gary Gensler is concerned about inadvertently falling from is what he describes as a “monoculture” being formed. With the amount of resources that go into creating Large Language Models (LLMs), it’s likely that only a very small number of them will emerge from the initial AI frenzy. When that happens, all future AI applications will be built off of the same LLM, which will likely be controlled by a tech titan such as Google or Microsoft. Firms both large and small would be forced to use the same datasets. Or fall hopelessly behind by not using AI at all… Fortunately, there are ways to invest in the solutions. More on that later. As usual, our teams are on the lookout for solutions, breakout technologies, and more in the AI space. Stay tuned. [Ray Blanco] Ray Blanco For Altucher Confidential [Revealed!] New AI Opportunity Bigger Than The PC? [James Altucher]( Just imagine being able to turn back the clock to the 1980s – right as a new technology known as the PC was getting its start… Seeing the promise of the PC – and captivated by Microsoft’s technology – an early investor decides to put in $500 during the company’s IPO in 1986. As of today, that $500 investment would have turned into a fortune worth over $1.6 MILLION. I bring this up because we are at the dawn of a new innovation which could be even BIGGER than the PC. [I’m talking about artificial intelligence, or AI](. According to Yahoo Finance, “we are on the cusp of a technological revolution that will fundamentally change how we live our lives.” And you have the chance to invest on the ground floor… [Click here now to see the 3 tiny AI stocks best positioned to profit](. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@altucherconfidential.com. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. 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