Artificial Intelligence (AI) has emerged as one of the most contentious topics on Wall Street. Experts, including leaders of major tech companies, startup founders, and computer scientists, cannot agree on whether this technology, which has seen a surge in investment […]
Artificial Intelligence (AI) has emerged as one of the most contentious topics on Wall Street. Experts, including leaders of major tech companies, startup founders, and computer scientists, cannot agree on whether this technology, which has seen a surge in investment after the success of OpenAI’s ChatGPT, will save or destroy humanity.
Peter Orszag, a former top adviser to Barack Obama and current CEO of Lazard, believes that everyone is likely wrong. Speaking at Fortune’s Global Forum in Abu Dhabi, he made several predictions but emphasized that “comments made at this stage about what will happen later with any new technology are usually wrong.”
Orszag, who served as the Director of the Office of Management and Budget and Director of the Congressional Budget Office in the Obama administration, stated that “a humongous dose of humility is needed regarding how this will play out because if you look back at the history of introducing various technologies and the way they were supposed to impact everything…it’s a terrible track record.”
While Orszag is caught between the “accelerationists” and the “doomsayers,” a debate that has grabbed Silicon Valley’s attention and business press during the five-day expulsion of OpenAI’s Sam Altman, he doesn’t believe in either the “utopia” or the “Armageddon” of AI.
What remains unanswered is how the AI revolution will impact the sharing of information. “One key thing that nobody has a great answer to is what this revolution does to what I will call ‘truth,'” Orszag said. “We haven’t yet seen the full impact of these tools being unleashed and their output being put back into the public domain. As that happens, the feedback loop from a well-known problem of hallucination is going to get even more serious.”
Orszag predicted that it would become harder for media platforms to establish themselves as sources of truth, but it would also be more important to have reliable sources of news.
In addition to Orszag, Jenny Johnson, President and CEO of global asset management firm Franklin Templeton, also shared her insights on the AI revolution. She observed that AI, like many technological advancements throughout history, will make industries, including wealth management, more efficient while raising people’s expectations of services and businesses.
Progress is something I look forward to and don’t think much about,” Johnson said. “I think the internet brought about technological change. We all have things we didn’t even know we needed, and now they’re at our fingertips.”
Ultimately, as Johnson highlights, the future can be expected to bring clients demanding more services from intermediaries at the same cost. “I think that will be the next phase.”