Could AI Cause World War III?

Yesterday, I had a rousing conversation with Jim Rickards about the rise of Artificial Intelligence (AI).

As you probably know by now, AI and its offshoot Generative Pre-Trained Transformers (GPT) are all the rage.

There is one camp that whole-heartedly believes this technology will transform the world and be bigger than the invention of the internet.

While Jim sees this potential (and as do I) he wants to caution you...

There are things that both you and Wall Street might be overlooking when it comes to AI.

We're talking potential to take over critical infrastructure systems... open floodgates... shut down electricity...

Start World War III.

If you haven't had a chance to watch the interview yet, click below to check it out.

Here's some of Jim's biggest points in the interview...

How AI Can Destroy Markets

There are endless scenarios that can be devised to show how AI can lead to extreme market dysfunctions. Difficulties could arise in foreign exchange markets in addition to stock markets.

The Herstatt Bank collapse in 1974 is a good example of that.

Market manipulators using AI can reside in the Caribbean, a Mediterranean island or the Congo.

The foreign AI attackers could be Iranian, Russian or Chinese.

An AI attack on markets could begin in London, New York or the jungles of Asia since they're all internet-based.

A marquee failure could come from a hedge fund or an iconic investment bank. And so on.

The point is, it doesn't matter...

Market panics have different triggers, but all end up in the same place.

Panic is part of human nature and plays out in the same predictable ways sell everything, go to cash, move to the sidelines and wait out the storm. A few can profit from that advice, but when everyone makes the same move at the same time the system breaks down rapidly and, in the end, no one can move.

Everyone is trapped in the same doom loop.

Circuit breakers, trading halts, government happy talk and communication among market participants all help as far as they go.

Still, their ability to palliate a panic is dominated by the speed at which panics spread today in the world of AI.

The most important thing to remember...

AI will grow more powerful in the future and GPT will have more to say...

But both are advanced enough today to carry out functions leading to a market crash.

What can be done about it?

Well... you'll have to watch our video to find out!

Enjoy your weekend and your holiday.