… [UK] consumers have overpaid for the natural monopolies and other networks underpinning many of these markets for at least the past 15 years. Because of patchy reporting from regulators, it’s impossible to document the full extent of these overpayments. However, this research finds that regulators have systematically set prices too high, leading to consumers facing unnecessarily high bills – that is, bills well in excess of what is required to deliver the necessary investment in these essential services.
We’re able to put concrete figures on these overpayments for water, energy, telephone and broadband infrastructure. Our conservative estimate is that that excess figure is £24.1bn. We find that the errors in energy and water have cost consumers £11bn and £13bn respectively.
… just focusing on the technicalities would neglect a simpler explanation: regulators have been out-resourced and outgunned. If this was just a story of errors in financial modelling, the errors would sometimes fall in consumers’ and sometimes in investors’ favour. But this is not what we see: instead, the errors are biased. Indeed, as we show below, this has sometimes been a conscious strategy from regulators: fearing under-investment, they have ‘aimed up’ on capital costs, choosing higher values than their estimates indicated they should.Monopoly Money report from Citizen’s Advice
So AI and capitalism are merely two offshoots of something more basic, let՚s call it systematized instrumental rationality, and are now starting to reconverge. Maybe capitalism with AI is going to be far more powerful and dangerous than earlier forms – that՚s certainly a possibility. My only suggestion is that instead of viewing superempowered AIs as some new totally new thing that we can՚t possibly understand (which is what the term “AI singularity” implies), we view it as a next-level extension of processes that are already underway.
This may be getting too abstract and precious, so let me restate the point more bluntly: instead of worrying about hypothetical paperclip maximizers, we should worry about the all too real money and power maximizers that already exist and are going to be the main forces behind further development of AI technologies. That’s where the real risks lie, and so any hope of containing the risks will require grappling with real human institutions.
Mike Travers. Reading this rather wonderfully reframes Elon the Martian’s latest calls for the regulation of artificial intelligence… you’re so right, Elon, but not in quite the way you think you’re right.
Of course, Musk also says the first step in regulating AI is learning as much about it as possible… which seems pretty convenient, given how AI is pretty much the only thing anyone’s spending R&D money on right now. Almost like that thing where you tell someone what they want to hear in a way that convinces them to let you carry on exactly as you are, innit?
Mark my words: the obfuscatory conflation of “artificial intelligence” and algorithmic data manipulation at scale is not accidental. It is in fact very deliberate, and that Musk story shows us its utility: we think we’re letting the experts help us avoid the Terminator future, when in fact we’re green-lighting the further marketisation of absolutely everything.