But eventually the machinery for detecting problems does break down completely, in a way that leaves
no trace on any of our reports.
There is also an echo of ‘we know that we do not fully understand these complex financial products referencing other complex financial products, even the quants admit they do not fully understand them, but who cares if we are making that much money’.
Overall, if I replace ‘AI’ above with ‘complex financial product’, the story reads about the same. So was this story inspired and constructed by transposing certain historical events, or is it just a coincidence?
This story reminds me of the run-up to the 2007-2008 financial crisis:
There is also an echo of ‘we know that we do not fully understand these complex financial products referencing other complex financial products, even the quants admit they do not fully understand them, but who cares if we are making that much money’.
Overall, if I replace ‘AI’ above with ‘complex financial product’, the story reads about the same. So was this story inspired and constructed by transposing certain historical events, or is it just a coincidence?