Friday, April 5, 2024
In court documents, Musk characterized artificial general intelligence (AGI) as an existential threat to humanity. Additional activities, including the newly forged agreement between U.S. and UK lawmakers, support public perception of AGI as a powerful force requiring more control and regulation.
The bilateral agreement on AI safety, signed by UK Technology Secretary Michelle Donelan and U.S. Commerce Secretary Fina Raimondo on Capitol Hill, will focus on evaluating and regulating AI models in the private sector, the partners stated, noting they will model the initiative on previous collaborations between Government Communications Headquarters and the National Security Agency.
Technology Secretary Michelle Donelan mentioned a sense of urgency among lawmakers on both sides of the pond. "The next year is when we've really got to act quickly because the next generation of models are coming out, which could be complete game-changers, and we don't know the full capabilities that they will offer yet," she said. "The fact that the United States, a great AI powerhouse, is signing this agreement with us, the United Kingdom, speaks volumes for how we are leading the way on AI safety."
Dr. Henry Balani, global head of industry and regulatory affairs at Encompass Corp., agreed with Donelan's assessment, noting that generative AI has a huge role to play in the financial services industry. "Mitigating the risks of AI, through this collaboration agreement with the United States, is a key step towards mitigating risks of financial crime, fostering collaboration and supporting innovation in a crucial, advancing area of technology," he said.
Balani further noted that GenAI can streamline processes and comb through data sets quickly, but financial institutions and service providers need to responsibly harness this power through robust digital and automated processes to optimize data quality and drive deeper insights.
In court documents, Musk described his strategic alliance with OpenAI, which was aimed at creating a control framework for AGI and, according to Musk, had the potential to change human existence. Following the abandonment of this agreement, his chief complaints are breach of contract, promissory estoppel, breach of fiduciary duty, unfair competition under the California Business and Professional Code, and accounting issues.
"Mr. Altman approached Mr. Musk with a proposal: that they join forces to form a non-profit AI lab that would try to catch up to Google in the race for AGI, but it would be the opposite of Google," wrote the justices of the Superior Court of California, San Francisco District.
"Together with Mr. Brockman," the justices continued, "the three agreed that this new lab: (a) would be a nonprofit developing AGI for the benefit of humanity, not for a for-profit company seeking to maximize shareholder profits; and (b) would be open-source, balancing only countervailing safety considerations, and would not keep its technology closed and secret for proprietary commercial reasons (The 'Founding Agreement')."
Musk alleged that OpenAI did not honor the spirit of the original founding agreement in March 2023, when the organization released GPT-4, a proprietary language model that he called a radical departure from the original mission of creating accessible, open source AI technology. Apparently, OpenAI is more concerned with commercial value than public safety, he claimed.
Amid continuing public discourse on the features and benefits of AI and advanced algorithms, security analysts and industry leaders are warning financial institutions to follow best practices when implementing these powerful technologies.
Perttu Nihti, chief product officer of Basware, noted that AI can accurately detect fraudulent activity through sophisticated algorithms that analyze vast amounts of data. In addition, AI algorithms can be trained to minimize and reduce false positives to mitigate false positives and allow legitimate transactions.
"As CFOs battle against the rising tide of fraud, implementing AI and ML solutions through partner [organizations] is a good way to share the compliance burden," he said. "The CFO is ultimately responsible, but having a trusted partner who can stay on top of evolving mandates and regulations as well as reduce the risk of fraud through technology can help share the load." 
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