In the dynamic landscape of 2023, one of the pivotal factors driving the ascent of technology company stocks lies in the prevailing optimism surrounding artificial intelligence (AI) and its anticipated impact. The effect of AI is set to unfold further in 2024.
However, the question that looms large is whether AI poses a threat to the job market, potentially disrupting the livelihoods of the majority of workers and employees starting from the upcoming year.
This inquiry has not only been posed by many observers, but has also been championed by tech magnate Elon Musk, who advocates for legislations to curb the proliferation of AI. Musk argues that machines, endowed with faster problem-solving and data processing capabilities, might ultimately turn against humanity.
Yet, the lingering question remains: is this assertion an exaggeration, or is it a plausible scenario?
Many viewpoints suggest that AI will obliterate the realm of asset management and financial markets, supplanting traditional practices.
However, such a perspective is inherently limited in comprehending the intricacies of both AI and human intelligence. AI fundamentally operates based on the quantity of input from historical information, employing statistical analysis to sift through and formulate logic.
Conversely, human relationships with the past are subjective, and depth of understanding is often confined to specific details. Human choices regarding issue details are frequently not driven by specific logical reasons, as they may be influenced by entrenched beliefs or unfounded suspicions.
Human behavior is often characterized by irrationality, yet within the realm of the human mind lies the capacity for logic. Consequently, many human opinions and thoughts prove unpredictable, even as human logical behavior pertains to specifics and details rather than adhering to the past as an absolute rule.
The intelligent and successful human mind engages with the past qualitatively, often inclined toward skepticism and criticism, in stark contrast to machines, which may struggle to delve into crucial details and rely quantitatively on the past, lacking a qualitative understanding even if equipped with logical reasoning.
Take, for instance, the divergence of human intelligence in predicting Federal Reserve policies—whether to raise, defer, or reduce interest rates—an inconsistency that reverberates through financial markets. Similarly, in the 2007 financial crisis, human intelligence varied in assessing the quality of mortgage assets, leading to the profound economic turmoil that shook markets.
In both crises, a minority sensed the impending danger early on and took preemptive action—a distinctly human trait stemming from the unrestricted and independent nature of the human mind.
Machines, on the other hand, struggle to transcend the average human estimates and often fall prey to errors. For instance, during the coronavirus pandemic, the lack of historical information posed a challenge for AI, resulting in predominantly speculative outputs and fears.
This highlighted the inadequacy of AI in developing suitable models for proposing optimal solutions in the absence of historical data.
AI represents a significant leap in human progress, streamlining traditional and routine tasks, mitigating some human errors, and expanding the scope for innovation and initiative.
The beauty of innovation lies in its maturation over time. While it is anticipated that average human lifespan will increase in the future, the peril of this intelligence lies in its potential to eliminate jobs requiring human initiative and interpersonal skills, potentially widening social disparities and global wealth gaps.
Plato’s ancient assertion that the elite use their intellect while the lower class relies on physical labor resonates through the ages, highlighting the enduring societal implications.
Ultimately, AI serves as an augmentation to human evolution rather than a threat. Therefore, humans must prioritize continuous education, recognizing that knowledge knows no age or bounds.
Humanity should break away from conventional thinking, critically evaluate the past, and, above all, remember to laugh, love, dream, and maintain optimism for the future.
