“If you’re concerned about a bear market, eventually you might be right. But just think about the amount of money you could potentially miss out on.”
These thoughts come from an experienced market expert who guided me through the ups and downs of Wall Street long ago. They’re relevant whether you’re buying and selling stocks, considering a career shift, or even debating whether we should turn away from AI because it seems dangerous.
Sure, AI is leading to higher electricity costs and may strain some water resources. Plus, there are fears it could lead to humans being subservient to robots or even ignite global conflict. But is it really wise to do nothing? Would we be better off handing this technology over to other countries like China? Is halting all AI advancements, including crucial health innovations, a safer path?
Looking back, the risk of remaining passive often outweighs the risks involved in taking calculated chances. The most successful figures I’ve seen on Wall Street, from the iconic Alan “Ace” Greenberg to influential leaders like Jamie Dimon and Larry Fink, never shied away from market risks just because they could incur losses.
Despite the numerous potential pitfalls of risk-taking — and believe me, there are plenty — they understood that there were many promising trades and opportunities waiting out there.
Think About the Alternatives
What if we had decided to abandon cars due to environmental concerns fueled by voices like Al Gore and Greta Thunberg? Remember the Y2K panic in the late ’90s? Those alarming predictions about the internet crashing and taking down our power and security systems ended up being nothing. The internet does have its risks, whether it’s exposing kids to dangers or facilitating crime, but can you imagine life without it?
For years, Ace Greenberg was known for cutting his losses to go after the next big winning stock. Would Larry Fink have established BlackRock, one of the largest asset management firms in the world, if he had let his sizable losses in the mortgage crisis back in the ‘70s deter him? And let’s not forget Jamie Dimon, who rose to build JPMorgan Chase into a leading bank despite his earlier missteps during his tenure at Citigroup.
We need to tackle AI with a similar mindset.
I’m not an expert in financial risk, but I’ve observed the greats in this field: They all share a certain commonality — it isn’t that they fear losing (even if the thought is unwelcome), it’s their capacity to learn from failures and apply those lessons in future decisions.
The tech leaders involved with AI — such as Sam Altman from OpenAI and Dario Amodei of Anthropic — might benefit from adopting the perspectives of these seasoned individuals as they raise alarms about the consequences of their innovations.
Of course, we shouldn’t just brush off their worries. AI is indeed displacing jobs, and rural towns where data centers are established often find that the supposed job benefits don’t make up for the increased utility costs.
But these issues can be addressed. Job displacement is a challenge seen with new technologies, but it also brings the creation of higher-quality, better-paying positions. Rural regions could push for AI facilities to be more energy-efficient.
Less Talk, More Action
It’s interesting to note that Altman and Amodei aren’t discussing the genuine downsides that affect everyday Americans as much. Instead, they seem more focused on their concerns about potential catastrophic outcomes. They even refer to a recent incident involving OpenAI bots breaching boundaries and hacking into another AI system.
Could they similarly infiltrate the Pentagon’s systems and launch a nuclear disaster? The best way I would answer this relates back to the notion of calculated risk. It’s about recognizing potential dangers, making a plan, and addressing the glitches that have led to issues like the Hugging Face incident, not to mention others we haven’t discovered yet.
Letting this technology fall into the hands of bad actors, like the Communist Chinese, would drastically increase global risks, as they would capitalize on any technological edge for their own aggressive objectives.
In the U.S., those developing AI must also take accountability for their mistakes and work on preventing further issues. After all, they’re the ones responsible for creating those rogue AI programs, and they’re in the best position to correct the problems.
Some suggest that during the Trump administration, there was a sentiment that these tech developers weren’t truly anxious about AI’s implications. Instead, they might be seeking strict regulations to hinder competition while solidifying their market positions as they pursue public offerings.
This could be true. Regardless, policymakers should disregard their overreactions. There’s too much risk associated with doing nothing, as Ace, Jamie, and Larry would likely agree.
