If AI can trade stocks and derivatives better than any humans, maybe we'll see wealth accumulation in a few large AI firms. And the stock market becomes effectively useless to the rest of us.
Hedge funds and investment banks are already using these tools to the max, and the markets are plenty profitable for everyone
I think this scenario is plausible because the path to this scenario is so smooth so it will be the default outcome unless something strange happens to prevent it.
I also don't know that it would change my behaviour. If my goal is long term investment success what's the downside of my continuing to invest in broad market funds? I don't need an AI making split second decisions if my investment horizon is still 30 years.
Consider that millions of people are parking billions of dollars in index funds that just track the ~500 biggest companies with the expectation they’ll all just get bigger.
Everything is Applied Math if you squint hard enough.
All this AI/ML doomerism and boosterism is ridiculous. If you do not understand how gradient descent works or why as of today GPUs are better suited for model training compared to CPUs you should not have a say in this discussion.
Most conversations around AI/ML appear to basically be pop-philosophy discussions that aren't even that grounded in philosophy fundamentals.
If you have trash fundamentals, you will have a trash understanding of the world.