1 of 52

Artificial Intelligence: An Existential Threat?

Dave Bernard

The Intellection Group, Inc.

2 of 52

2

3 of 52

My Approach

  • To equip and empower, not to prescribe.
  • To provide you with ideas and strategies to make your own choices.
  • You know what works for your life/circumstances better than me.

4 of 52

Agenda

  • What is AI?
  • What is ChatGPT?
  • What is the good, the bad, and the ugly of all this?
  • What does history teach us?
  • How should we think about this?
  • What does the future hold?

5 of 52

Search as we know it…

  • If a query can be answered in one interaction, Google can probably do it.
  • An “AI” is like a librarian who’s read all the books and just tells you the answer via a conversation.
  • It’s a big time-saver.

6 of 52

What is “artificial intelligence” (AI)?

  • Creating and training machines to perform intelligent tasks.
    • Something that, if a person was doing it, we would call it intelligence.
  • Theoretical work dates from Alan Turing’s 1950 paper.
  • The term was coined in 1956 by Marvin Minsky and John McCarthy.
  • Improvements proceeded incrementally for decades.

7 of 52

Jargon Alert!

Almost all of the tech jargon in this talk is on the next slide…

8 of 52

AI: ML, LLM, Neural Network, GPT

  • Machine learning (ML) and neural networks (NN)
    • “Learn” patterns and predict outcomes by analyzing massive amounts of data.
    • Supervised learning through large amounts of manually-labelled data.
  • Large language model (LLM)
    • Uses ML to learn to write and converse with users; “chatbot” tech.
    • They find statistical relationships between words.
    • New unsupervised models can absorb nearly the entire Internet.
  • Generative pre-trained transformer (GPT)
    • A type of semi-supervised LLM able to generate novel human-like content.

9 of 52

The new AI “Humanness”

  • It feels like conversing with another human being.
  • An LLM has no body, no visceral connection to the real world.
    • This can lead to some dumb pronouncements.
  • Unlike a human, it doesn’t go on vacation for a week, wonder where you are, or get irritated.

10 of 52

Key Idea

Extraordinary things happen when you can hold the entire picture in your brain at once while interacting with a human.

These tools can do that.

We can’t.

11 of 52

ChatGPT embodies that key idea

  • GPT architecture was invented in 2017.
  • First GPT model was widely deployed in 2020.
  • GPT-3 was deployed in March, 2022.
  • ChatGPT was first deployed in November, 2022.
    • Natural extension of decades of ML and LLM improvements.
    • Adds a general comprehensive natural human interface to AI.
  • All hell broke loose in March, 2023.
    • Adopted by 100M global users in two months, fastest in history.

12 of 52

What is ChatGPT?

  • It’s a very sophisticated mimic with very human-like interactions.
    • Based on an utterly inhuman technology.
    • More model complexity equals more humanness.
  • It’s imperfect and capable of creating nonsense.
    • It’s frozen in September, 2021, for hard technical reasons.
    • Data model coverage limitations.
    • GPT-3 limited to about 3,000 input words; GPT-4: about 30,000 words.
    • GPT-4 understands images as well as words.
  • It’s a thought-partner.
  • It’s a gift to transparency.

13 of 52

What’s it good for?

  • It’s a very useful tool, but more of a proof of concept at this point.
    • We need to work out how to fit it into our lives.
  • It’s like having infinite helpful interns or graduate students.
  • It’s a powerful oracle, a muse for ideas and inspiration.
  • It’s an innovative form of social collaboration moderated by statistics.
  • You must trust but verify its responses; it can be “usefully wrong.”
  • It has limited ability to take action, but that will change.

14 of 52

Interacting with AI: Prompts

  • Treat it as if it can effectively understand your question and its response.
  • Prompts are all-important. It’s a conversation.
    • More art than science.
    • Repeat questions generate different responses.
    • Chain of Thought (CoT) prompting.
    • “Let’s work this out in a step by step way to be sure we have the right answer”
  • The ability to effectively talk to machines might be one of the most vital skills of the 21st century.

15 of 52

Demo Time!

16 of 52

Anatomy of a Megaprompt

17 of 52

Hallucinations

  • ChatGPT isn’t an end-to-end solution.
  • It’s a perfectly accurate reflection of its training set.
  • It’s responses are always “this is the kind of answer that people tend to give to questions like that.”
  • The more information relevant to the question that existing in the training set, the more accurate the answers.
  • The problem is that people will believe the inaccuracies.

18 of 52

“Usefully Wrong”

  • “Hallucinations” can’t be solved.
    • It’s absolutely fundamental to what it’s doing.
  • Inaccuracy is not that relevant.
    • It’s a general purpose reasoning engine.
    • It doesn’t need to be truthful or even reliable.
    • It just need to be challenging. It’s suggestions are within the bounds of credibility.
    • Don’t just copy and paste responses; reflect on what it’s telling you.
    • Use Google and other tools to verify facts.
  • It’s usefully wrong.
    • Like an intern who makes a five-page sales document, but you have to check it.
    • The back and forth drives value.

19 of 52

What could possibly go wrong?

  • Just about everything we think is bad about hacking and social media posts will likely get worse.
  • Copyright issues.
  • Regulation can’t solve anything.
  • Existential fears.
    • “Climate change should hire AI’s PR firm.”
  • Let’s look at a bit of history…

20 of 52

Electricity Panic

  • Anti-electricity cartoon from 1889.
  • The great Thomas Edison was behind this.
  • This tragic chapter of technology history became famous as "War of Currents" between Edison and Westinghouse.

21 of 52

Horseless Carriages

  • Here's an old anti-car advertisement by a horse carriage company.

  • Gave rise to the “horseless carriage” fallacy.

22 of 52

No words necessary…

23 of 52

Some Historical Context

  • How new technology unfolds always takes everybody by surprise.
  • Until recently, technological change proceeded slowly.
  • There have always been trade-offs, mostly unforeseen, with technological change.
  • Any general-purpose technology brings huge opportunities.
  • And absolutely no one has any real idea of the changes ahead. It’s pointless to talk ourselves into an illusion of predictability.

24 of 52

Life can only be understood backwards,

but it must be lived forwards.

—Søren Kierkegaard

25 of 52

We’ve been here before…

  • We need to embrace AI, take the plunge, adapt.
    • Operate from a place of opportunity and respect for the limitations of the tech.
    • Find a way to use it to get better at what you do.
  • We respond to experience, not

something that’s not yet happened.

  • The process is going to take longer

than you think…

26 of 52

Think EV’s are new?

Electric trucks charging at London St Pancras Station 100 years ago.

27 of 52

AI and Employment

  • AI won’t replace your job. People who use AI will.
  • AI has broad application that will impact a wide range of workers.
  • AI will increase efficiency and accelerate innovation.
  • AI will mimic top performers and push low performers to act more like them.
  • AI will teach us new, non-obvious ways of doing things (AlphaGo).
  • AI will help humans reason from scratch.

28 of 52

Lump of Labor Fallacy�

29 of 52

The Lump of Labor Fallacy

  • Lump of Labor Fallacy
    • The mistaken belief that there is a fixed amount of work or jobs in an economy, implying that if one person (or a machine) gains employment, another person must lose it. Zero-sum game thinking.
  • Because increased productivity leads to…
    • Higher demand for goods and services, which generates even more employment opportunities, income, and buying power.
  • Because innovation equals job growth
    • We’ve never been able to predict the new jobs that will be created.

30 of 52

Jevon’s Paradox

31 of 52

Jevon’s Paradox

  • Jevon’s Paradox
    • Increases in the efficiency of resource use can lead to higher overall consumption of those resources rather than expected reductions.
  • Typewriters, adding machines, electronic spreadsheets
    • Improved productivity led to far higher employment in the same tasks.
    • Many new businesses are only be possible with improved productivity.
    • Automation plus the Jevons Paradox means more jobs.

32 of 52

150 years of automation fears…

33 of 52

34 of 52

Even Albert Einstein was fearful…

35 of 52

Fears sometimes led to violence…

36 of 52

Eisenhower and Kennedy…

37 of 52

UK Prime Minister…

38 of 52

Fed Chair Alan Greenspan…

39 of 52

40 of 52

Gloomy Predictions

  • Economists have made gloomy predictions before.
    • 2013: Automation could wipe out 47% of US jobs over the next 10 years.
  • What actually happened took people by surprise.
    • Instead, the unemployment rate roughly halved.
    • The share of working-age in employment is at an all-time high.
    • Countries with the highest rates of automation and robotics have the least unemployment.

41 of 52

AI and Economic Growth

  • We still wait for a productivity surge due to recent innovations.
    • Global productivity growth remains weak.
    • Growth has rarely surpassed 2% in even the best of times.
    • It’s very hard to move quickly in an advanced industrial economy.
  • We’ve been destroying jobs and creating new and better ones since the Industrial Revolution.
    • People suffer in the short-term friction of that, but net employment doesn’t fall.
    • AI will be no different. 

42 of 52

What AI can’t do…

  • There are many things beyond the reach of AI.
    • Blue-collar work, about 20% of developed world GDP.
    • Work requiring human-to-human contact.
    • Creating truly new ideas.
  • It could even be a drain on productivity.
    • Completely personalized entertainment.
  • Getting stuff done is just very difficult.

43 of 52

What does the future hold?

  • Interface improvements.
    • Text prompts present challenges.
    • Being able to theoretically ask anything presents challenges.
    • You can’t treat it simply as a better Google Search.
    • The “prompt” will become an API call in a wrapper.
    • Businesses will be able to fine-tune the output to match their messaging.
  • Everything is ahead of us.
    • More akin to the PCs of the early 80s used to organize recipes or balance your checkbook.

44 of 52

Demo!

45 of 52

Emerging AI Innovation and Challenges

  • Emerging generative AI and LLM research
    • Models that can improve themselves via self-generated training data.
    • Models that can fact-check themselves. Confidence calibration.
    • Larger context windows will reduce hallucination frequency.
    • Ability to train a private model on all your personal data.
      • Now you can talk to a better version of yourself, the best therapists in the world.
    • Ability to train a private model on all the data of your business.
  • We’re currently running out of training data!

46 of 52

It’s time to dive in!

47 of 52

Thanks!

dbernard@intellectiongroup.com

http://www.linkedin.com/in/davebernard

48 of 52

49 of 52

Convenience Drives Us!

  • We engage in big data all the time.
    • And are enjoying it.
    • We allow our data to be exploited.
  • You receive value having one identity.
    • Having more might show a lack of integrity.
  • It’s information democratization.
    • A corporation is likely to know more about your life than your loved ones do.
  • Convenience drives all of this.

50 of 52

Convenience Trumps Everything

  • Convenience trumps free choice.
    • AI influences our opinions, relationships, social fabric.
    • Human-curated judgement replaced with data-backed judgement.
    • Companies make decisions for us.
    • Our own tastes are reinforced over and over again.
    • Narrows your exposure to new things, foments tribalism.

Solutions payments Conference – Believe - Be Live - Or Be Online 2022!

50

51 of 52

100% Safety is Impossible

  • America isn’t 100% safe from cyber warfare, and that’s a good thing. It was built vulnerable.
  • The free flow of people/goods/info is inherently risky.
  • Our system wasn’t designed to produce a seamless shield against every conceivable threat.
  • We’ve traded a measure of safety for convenience.
  • Mostly, we choose to be vulnerable.

52 of 52

100% Safety is Impossible

  • Free and democratic nations…
    • Have a structural disadvantage in nation-on-nation cyber attack and defense.
    • Commitment to free speech, rule of law.
    • Innovation and mostly unregulated markets.
    • Deep digital sophistication.
    • Creates exploitable asymmetric vulnerabilities.
    • Much easier for totalitarian regimes.
    • The “price of freedom is the probability of crime.
      • The price is increasing.