[HN Gopher] Adversarial competition and collusion in algorithmic...
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       Adversarial competition and collusion in algorithmic markets
        
       Author : theptip
       Score  : 32 points
       Date   : 2023-10-05 23:50 UTC (2 days ago)
        
 (HTM) web link (www.nature.com)
 (TXT) w3m dump (www.nature.com)
        
       | AtlasBarfed wrote:
       | I can imagine that with the rise of AI, you now have the basis of
       | plausible deniability for insider trading:
       | 
       | "The AI told me to do it"
       | 
       | I think this will be an interesting legal case when it
       | (inevitably) happens. Because AI is almost impossible to
       | introspect/poll from the outside. If you query it, that is a
       | different "neuron path" and it can't be relied upon to know
       | what/how/why it "knows what it knows".
       | 
       | It can also be plausibly denied that the CURRENT AI response
       | doesn't say what you did. Just say it was retrained / modified to
       | any degree (and of course you don't keep backups), and even if
       | the AI doesn't produce the same answer, you can simply say the
       | training has changed or the inputs have changed (you also don't
       | back up the historical input values).
        
         | tommiegannert wrote:
         | Legally, I'm guessing this is the same defence as "I just threw
         | darts on the board and got lucky."
         | 
         | You still decided to trade an instrument you had insider
         | knowledge about. You'd better have a paper trail to show that
         | the dart wasn't biased.
        
         | gruez wrote:
         | >I can imagine that with the rise of AI, you now have the basis
         | of plausible deniability for insider trading:
         | 
         | >"The AI told me to do it"
         | 
         | Do you even need to use that as a defense? Doesn't the SEC have
         | to provide affirmative proof that you traded on material
         | nonpublic information? Have they ever convicted someone of
         | insider trading on good trading records alone?
         | 
         | Otherwise, I don't really see how using an AI to launder stuff
         | makes sense. You need to acquire that material nonpublic
         | information somehow. Because it's nonpublic, you're probably
         | going to have to go out of your way to get a hold of it, so
         | that's how the SEC is going to nail you. Feeding a bunch of
         | leaked quarterly earning reports into an AI isn't going to let
         | you off the hook.
        
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       (page generated 2023-10-08 23:00 UTC)