Michael Casey: AI has no real purpose, the industry is facing a bubble with rapid development, and the emergence of “proof of control” technology.

Important takeaways

• AI agents are not capable of real thinking; they produce language possibly without intention.
• The field of AI is experiencing both a bubble and rapid development at the same time.
• The development of AI is similar to the convergence seen in DeFi, creating new opportunities.
• Human errors and limitations are often revealed during the release of new technology.
• The country’s political changes are likely to have an impact on the stability of the global economy.
• The advancement of AI is having a major impact on job markets and economic structures.
• A new category of technology, “regulatory evidence,” is emerging because of regulatory requirements.
• Sovereign AI should empower people rather than be controlled by governments.
• AI models are replacing entry-level jobs, reducing employment in vulnerable domains.
• The integration of AI into the economy may create a chaotic and destabilizing environment.
• AI’s limitations in handling critical cases pose a risk to companies that rely on it to perform critical tasks.
• The real danger of AI lies in anthropomorphizing it, leading to poor decision-making.
• Machines can perform tasks but cannot replicate human experiences.
• The economy of the future will be characterized by billions of AI agents and robots.
• In a post-human economy, machine intelligence may serve as a unit of exchange.

Guest introduction

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

The difference between human-like reasoning and AI-generated responses

• AI agents generate language probabilistically without real intent. – Michael Casey
• “They don’t think it’s one thing that’s right that they might come up with a language to share with each other.” – Michael Casey
• Understanding AI behavior requires recognizing the lack of purpose in AI communication.
• A misconception about AI’s ability to think like humans is widespread.
• AI’s lack of purpose separates it from human consciousness.
• “Intention is a well-known thing.” – Michael Casey
• The logical aspect of AI operations excludes the possibility of intent.
• Recognizing the limitations of AI is critical to responsible development and deployment.

Current state of AI development and market projections

• The AI ​​industry is simultaneously experiencing a bubble and rapid development. – Michael Casey
• “I think we’re simultaneously in a bubble and in an incredibly fast-paced environment.” – Michael Casey
• Market speculation is often accompanied by technical success.
• The hype surrounding AI can overshadow real progress.
• Understanding the nuances of AI development helps in assessing its potential.
• The parallels between AI and DeFi highlight the pace of innovation.
• “This sounds familiar to crypto people because we’ve seen this with DeFi convergence.” – Michael Casey
• Advances in AI are creating new opportunities like those in the crypto space.

The impact of AI on labor markets and economic structures

• The advancement of AI is having a major impact on job markets and economic structures. – Michael Casey
• “I can only imagine how many jobs are likely to be affected by AI.” – Michael Casey
• Entry-level recruitment in vulnerable domains is reduced due to AI capabilities.
• “In areas that we know are most vulnerable to big language models… you seem to be seeing a recession.” – Michael Casey
• The integration of AI into the economy may create a chaotic and destabilizing environment.
• “That’s a lot of confusion that’s like blurring a chaotic image.” – Michael Casey
• Jobs that require real human interaction and empathy will be resistant to automation.
• “Cultivate people skills to 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 soon emerge. – Michael Casey
• “We think it will come quickly because of the demands of compliance officers and boards of directors.” – Michael Casey
• This technology addresses the need for businesses and governments to ensure that AI agents are working for them.
• “How do we know that this agent really works for me?” – Michael Casey
• Cryptography and blockchains provide proof of control for AI systems.
• “The good thing about cryptography and blockchains is that they give you proof.” – Michael Casey
• Understanding the governance of AI is critical to future regulatory initiatives.
• The need for control in AI systems is driven by control needs.

The role of sovereignty and individual empowerment in AI governance

• Sovereign AI should empower people rather than create closed systems controlled by governments. – Michael Casey
• “I think at the end of the day whether it’s an individual or a company… we’re going to want these regulatory systems.” – Michael Casey
• The concept of sovereignty in AI needs to be localized rather than defined by nations.
• “I mean, either we or the bots need to define sovereignty in this local way.” – Michael Casey
• There must be ways to ensure human control over AI agents.
• “There must be a way to explain and understand the relationship and authority of a person in what these things do.” – Michael Casey
• The implications of AI governance for individual autonomy are significant.
• Technological empowerment is a key aspect of AI development.

Social implications of AI integration

• The integration of AI into the economy will create a chaotic and disruptive environment. – Michael Casey
• “That’s a lot of confusion that’s like blurring a chaotic image.” – Michael Casey
• There will be a backlash against AI technology as it becomes more integrated into the economy.
• “I think there’s going to be a kind of backlash against these kinds of things.” – Michael Casey
• The current limitations of AI pose a risk to companies that rely on it to perform critical tasks.
• “There’s still a big gap… you’re going to want to make sure that those… side cases are going to be resolved as well.” – Michael Casey
• Understanding the limitations of AI is important for critical applications.
• Society’s reaction to the integration of AI is an important trend to watch.

The future of work in a posthuman economy

• The post-human economy will be characterized by AI agents and robots taking over roles traditionally held by humans. – Michael Casey
• “The post-human economy was an idea I introduced in a series of articles last year.” – Michael Casey
• People will not become obsolete but they will play different roles in this economy.
• “I must emphasize that that does not mean that I think there will be no exchange of value between people.” – Michael Casey
• The future work environment will see fewer roles for business knowledge workers and independent operators.
• “I think there will be fewer like business knowledge jobs and more people working as freelancers.” – Michael Casey
• Jobs that require real human interaction and empathy will be resistant to automation.
• Career development is influenced by technological changes.

The emergence of currency in a posthuman economy

• In a post-human economy, traditional concepts of money will become obsolete. – Michael Casey
• “What is money in that posthuman economy? It’s really machine intelligence.” – Michael Casey
• The economy of the future may rely on a new token that represents machine intelligence.
• “People are trying to build a kind of first structure of this kind that I call the posthuman economy.” – Michael Casey
• Different types of currencies will perform different functions, and Bitcoin will act as a store of value.
• “I imagine a kind of future economy where Bitcoin is a kind of memory of civilization.” – Michael Casey
• The role of money in facilitating trade will improve with advances in AI.
• The concept of money is being redefined in the context of advanced AI.

The effects of AI and automation on economic systems

• The economy of the future may move from traditional value exchanges to a system where AI-created abundance reduces the need for economic transactions between people. – Michael Casey
• “If you have an abundance of independence … the question is stop being close to the scarcity of things.” – Michael Casey
• A competitive edge in AI and machine learning systems requires a form of economic exchange.
• “These machines are actually built … with their token reward structure to compete for results.” – Michael Casey
• Energy will continue to be a barrier to AI and robotics systems.
• “I also think that their power … will continue to be an obstacle.” – Michael Casey
• Understanding the relationship between AI systems and economic incentives is important.
• The implications of AI for economic cooperation are significant.

The importance of human communication in the economy of the future

• Real human value comes from shared social interaction rather than exchange. – Michael Casey
• “The true value of a person comes from how we collectively gain the trust of society.” – Michael Casey
• Focusing on social interaction will be key to creating a meaningful experience.
• “If you can think about the meaning and the value that comes out of that creation of human connection.” – Michael Casey
• Machines cannot replicate the human capacity for empathy and cooperation.
• “It’s not just that I’m a person who knows how to understand and empathize.” – Michael Casey
• The concept of jobs is becoming obsolete as we move into the gig economy.
• “The work itself is part of the problem.” – Michael Casey
• The evolving role of technology in human interaction is an important trend.