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Biden Administration Prioritizes AI Control Amid Concerns of Censorship and Capital Misallocation

Biden Administration Prioritizes AI Control Amid Concerns of Censorship and Capital Misallocation

Dec 21, 2023

Biden Administration Prioritizes AI Control Amid Concerns of Censorship and Capital Misallocation

In a recent development, the Biden administration has signaled an intention to exert greater control over the landscape of artificial intelligence (AI), raising concerns about potential censorship and the redirection of investment funds for political purposes. Treasury Secretary Janet Yellen recently announced plans to prioritize the regulation of AI in 2024, citing financial system vulnerabilities such as racial bias in lending and the dangers of model risk, where investors may herd into overvalued assets.

This move follows President Biden's executive order mandating a comprehensive government approach to appropriating AI under the guise of addressing security, privacy, and diversity issues. Critics argue that this initiative veils an underlying objective to employ AI as an instrument of government surveillance and propaganda, while simultaneously commercializing it to benefit the administration's allies.

The administration's stance on AI has been echoed by Securities and Exchange Commission (SEC) Chair Gary Gensler, who has been accused of using AI regulation as a scapegoat for regulatory failures. The contention arises from the premise that the government's intervention in AI would lead to the manipulation of investment capital on a massive scale, potentially steering tens of trillions of dollars towards interests aligned with the administration's political agenda.

The argument presented suggests that the administration views AI as a "black box" with opaque decision-making processes that require constant oversight to prevent discriminatory or financially unsound outcomes. However, the involvement of political overseers—or "commissars"—in AI's application within the financial sector raises questions about their competence compared to the specialists who design financial AI systems with the objective of accuracy and profitability.

Furthermore, the administration's approach to AI regulation is compared to the pre-2008 financial crisis situation, where regulatory pressures led banks to issue mortgages based on demographic considerations rather than the likelihood of repayment. The resulting subprime mortgage crisis serves as a cautionary tale for the potential consequences of government-mandated investment strategies.

The video concludes by highlighting the global trend of governments attempting to dominate AI, not only for censorship purposes but also to direct financial capital according to their priorities. This could result in the misallocation of retirement savings and induce economic inefficiencies reminiscent of a centrally planned economy, overshadowed by "government-approved white elephants."

As the Biden administration continues to push for greater control over AI, the implications for free speech, financial stability, and the efficient allocation of investment capital remain a critical subject for scrutiny and debate.


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