Michael Casey: AI lacks true intent, the industry faces both a bubble and rapid advancements, and the emergence of “proof of control” technology | Unchained

Key takeaways

• AI agents are not capable of true thinking; they generate language probabilistically without intent.
• The AI industry is experiencing both a bubble and rapid advancements simultaneously.
• AI development parallels the composability seen in DeFi, creating new opportunities.
• Human errors and limitations are often exposed during the rollout of new technologies.
• Geopolitical shifts are likely to impact global economic stability.
• AI advancements are significantly affecting job markets and economic structures.
• A new technology category, “proof of control,” is emerging due to regulatory demands.
• Sovereign AI should empower individuals rather than be controlled by governments.
• AI models are replacing entry-level jobs, slowing down hiring in vulnerable domains.
• The integration of AI into the economy may create a chaotic and destabilizing environment.
• AI’s limitations in handling edge cases pose risks for companies relying on it for critical tasks.
• The real risk of AI lies in anthropomorphizing it, leading to poor decision-making.
• Machines can perform tasks but cannot replicate human subjective experiences.
• The future economy will be characterized by billions of AI agents and robots.
• In a posthuman economy, machine intelligence may serve as the unit of exchange.

Guest intro

Michael Casey is Chairman of DAIS Global. He previously served as Chief Content Officer at CoinDesk, where he built an award-winning newsroom and chaired the annual Consensus conference. He is the author of The Age of Cryptocurrency, which examines how Bitcoin and digital money challenge the global economic order.

The distinction between human-like thinking and AI-generated responses

• AI agents generate language probabilistically without actual intent. – Michael Casey
• “They are not thinking that’s one thing right they are probabilistically coming up with a language to share with each other.” – Michael Casey
• Understanding AI behavior requires recognizing the lack of intent in AI communication.
• The misconception about AI’s ability to think like humans is widespread.
• AI’s lack of intent differentiates it from human consciousness.
• “Intent is a very conscious thing.” – Michael Casey
• The logical aspect of AI operations excludes the possibility of intent.
• Recognizing AI’s limitations is crucial for responsible development and deployment.

The current state of AI development and market speculation

• The AI industry is simultaneously experiencing a bubble and rapid advancements. – Michael Casey
• “I think we’re simultaneously in a bubble and in a situation that is truly remarkably moving very quickly.” – Michael Casey
• Market speculation often accompanies technological breakthroughs.
• The hype surrounding AI can obscure genuine progress.
• Understanding the nuances of AI development helps in assessing its potential.
• The parallels between AI and DeFi highlight the rapid pace of innovation.
• “This feels somewhat familiar to crypto people because it we saw this with the composability of DeFi.” – Michael Casey
• AI advancements are creating new opportunities similar to those in the crypto space.

The impact of AI on job markets and economic structures

• AI advancements are significantly affecting job markets and economic structures. – Michael Casey
• “If I just think about how many jobs probably have already been affected by AI.” – Michael Casey
• Entry-level hiring in vulnerable domains is slowing down due to AI capabilities.
• “In domains that we know are particularly vulnerable to large language models… you seem to be seeing a slowdown.” – Michael Casey
• The integration of AI into the economy may create a chaotic and destabilizing environment.
• “That is just a very disorienting like very like destabilizing chaotic picture.” – Michael Casey
• Jobs requiring genuine human connection and empathy will be more resilient to automation.
• “Cultivate human skills cultivate empathy and genuine human connection.” – Michael Casey

The emergence of “proof of control” technology

• A new category of technology called “proof of control” will emerge rapidly. – Michael Casey
• “We think it’s gonna come very rapidly through the demands of compliance officers and boards of directors.” – Michael Casey
• This technology addresses the need for enterprises and governments to ensure AI agents operate on their behalf.
• “How do we know that this agent is operating truly on my behalf?” – Michael Casey
• Cryptography an