(Tech execs) Tax optimization is indeed optimization under the constraints of the tax code. People aren’t just stumbling on loopholes, they’re actually seeking them, not for the thrill of it, but because money is a strong incentive.
Consider now AI systems, built to maximize a given indicator, seeking whatever strategy is best, following your rules. They will get very creative with them, not for the thrill of it, but because it wins.
Good faith rules and heuristics are no match for adverse optimization.
(Tech execs) Tax optimization is indeed optimization under the constraints of the tax code. People aren’t just stumbling on loopholes, they’re actually seeking them, not for the thrill of it, but because money is a strong incentive.
Consider now AI systems, built to maximize a given indicator, seeking whatever strategy is best, following your rules. They will get very creative with them, not for the thrill of it, but because it wins.
Good faith rules and heuristics are no match for adverse optimization.
I nominate this one for policymakers as well