🚦AI: Integration vs. Regulation

^{"Optimism is the faith that leads to achievement.”}

— Helen Keller

👋 Friends, Rallie here. The newsletter, rain or shine, delivering the latest in crypto, finance, and tech.

On the menu:

• 🚦AI: Integration vs. Regulation

• 🗞️ Headlines That Hit

• 📈 Refresh: Fiat Money

• ✌️ Trivia Tuesday

• 💯 Top Tweets

The Rallie Recap

👾 Remember earlier this year when experts warned that we needed AI regulation or else? Today, we’re giving you a rundown of the growing pains and lessons learned so far in AI:

• AI is at a crossroads.🚦The technology gold rush has caused experts and the general public to see the impacts of its integration while regulation lags.

• 🌐 As a callback to our previous newsletter, we discussed the booming investments coming into the AI race, from major corporations to entire industries.

• A race to the bottom? 😶‍🌫️ Experts are concerned that many countries are becoming increasingly lax with regulation in an effort to not get left behind… and it could further the wealth gap between developing nations.

• An OCED survey of ~5.3K workers sees the potential for AI to “benefit job satisfaction, health and wages but was also seen posing risks around privacy, reinforcing workplace biases and pushing people to overwork.” 🧐

• 🧠 The public’s perception of AI is still divided…

• Already put to work. 📋 Chatbots are now starting to grow in use to interview and screen job applicants, and experts are already concerned. 🛠️ The technology is trained with the data inputed into its system; however, systemic prejudice hidden in the data may cause AI to become a biased and discriminatory tool.

• 💼 The supporters of AI’s use in recruitment argue that chatbots help recruiters with the workload and expand the amount of applicants that can be reviewed. That said, both sides agree that much more learning needs to be done for the sector’s AI technologies.

• Meanwhile, in every reported case where police accidentally arrested someone using AI facial recognition technology, that person has been Black. 🚔

• Like with every revolutionary advancement, is this just AI’s learning curve?

• 🏛️ Onto the next battle! The SEC is redirecting its regulating sights from crypto to AI, the Chairman of the SEC, Gary Gensler put aside his famous troubles with crypto (for now).

• 🚨 Gensler argues that there is a more critical task at hand… “AI may heighten financial fragility” and destabilize the global economy because of herding behaviour, potential tech monopolies and the possible exploitation of AI to obscure accountability if things go wrong. 😵

• But… corporate investments are still pouring in the AI race.

• 👨‍💻 Lenovo launched a new wave of data management solutions designed to make it easier for organizations to use AI workloads and data analysis off of AI programs.

• Dell also released its own AI solutions; however, it’s to help clients set up access to large language models and create generative AI projects. 🛤️ Additionally, they have released a service platform to enhance AI efficiency and infrastructure.

• Microsoft’s red team is making strides in AI security and risk assessment frameworks, addressing issues such as machine learning flaws and failures. ⚠️

• 🚀 A critical part of growth is knowing the flaws that an advancement has, but will AI incorporate too many concerns for the future?

Headlines That Hit

• 🇺🇸 PayPal’s stablecoin launch. The company becomes the first major fintech firm to embrace digital currencies with its new PayPal USD, backed by U.S. dollar deposits and short-term U.S. Treasures.

• 😷 EG.5? A new COVID variant descended from Omicron is starting to show its head globally.

• 🇨🇦 Canada’s news disaster. Analysts argue Meta’s retaliatory move against the Online News Act will promote the spread of misinformation and fake news at a concerning rate.

• ⚖️ Elon Musk paying your legal fees? The owner of X (Twitter) says the company will pay the legal bills for anyone fired for their tweets and/or likes on his platform.

Rallie Refresh: Fiat Money

🕵️‍♂️ Not a typo, this concept is critical to the global economy. Today, we put a name to the idea behind cash.

💵 What is fiat money?

• Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. 🤑

• 🏦 Fiat money gives central banks greater control over the economy because they can control how much money is printed (and if governments print too much of it, it can result in hyperinflation).

• 🌏 Most modern paper currencies, such as the U.S. dollar, are fiat currencies.

💡 So, why is it used?

• A replacement to barter trade, fiat money allows people to buy products and services through cash rather than a product for a product. 🛒

• 💪 In more technical terms, it is used to store purchasing power and aids in the flexibility, planning and creation of specialized economic activities.

❗️However…

• Financial crises, inflation and bubbles can occur because of improper fiat money regulation — due to its unlimited supply.

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✌️Trivia Tuesday✌️

📉 The answer for Thursday’s newsletter (True or false? Samsung has experienced a 95% operating profit plunge this year.) is True! Tune in next time for today’s answer.

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DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.