I’m making an attempt (and failing) to maintain up with AI developments, however inside this interview with AI pioneer Geoffrey Hinton (Wikipedia names him the Godfather of AI) was an fascinating tidbit that pertains to private finance. Right here is an excerpt from a transcript of the interview (emphasis mine):

GEOFFREY HINTON: Among the many AI researchers, persons are extra conscious of it. So the individuals I do know who’re form of most depressed about it are critical AI researchers. I’ve began doing sensible issues as a result of AI goes to be excellent at designing cyber assaults. I don’t assume the Canadian banks are secure anymore.

So Canadian banks are about as secure as you may get. They’re very properly regulated in contrast with US banks. However over the subsequent 10 years, I wouldn’t be in any respect stunned if there was a cyber assault that took down a Canadian financial institution.

BROOK SILVA-BRAGA: What does take down imply?

GEOFFREY HINTON: Suppose that the financial institution holds shares that I personal. Proper. Suppose the cyber assault sells these shares. Now my cash’s gone. So I really now unfold my cash between three banks. Okay. In order that’s the primary sensible factor I’ve accomplished as a result of I believe if a cyber assault takes down one Canadian financial institution, the others will get much more critical.

BROOK SILVA-BRAGA: Okay. The rest like that? What else?

GEOFFREY HINTON: That’s the principle factor. That’s the place I observed I really did one thing sensible that flowed from my perception that very scary occasions are coming.

In that context, Hinton is not only speaking about separating his belongings throughout a number of banks but additionally brokerage accounts that personal shares of firms.

I imagine this concept of protecting your belongings separated into completely different silos is an efficient one. I plan to additionally keep away from linking info from one brokerage account to a different brokerage agency (both to provoke funds transfers, or to make use of in data-sharing companies like “Full View”). Assume that anybody main financial institution or brokerage agency could ultimately go down in an entire mess, and it might take a really very long time to wash up that mess.

It’s good to have some actionable recommendation, versus pondering his considerations about dangerous actors utilizing “lethal autonomous weapons”. 😨