Cardano Founder Urges Warning About AI Risks Amid Robinhood’s Technological Push

Cardano founder Charles Hoskinson raised the alarm about the results of artificial intelligence (AI) tests, which crypto exchange Robinhood’s latest acquisition is AI-powered investment advice platform Pluto.

According to to Bloomberg, the move aims to bring personalized investment strategies and analytics to Robinhood’s brokerage users. However, Hoskinson’s concern sheds light on the potential dangers of centralized control of AI algorithms.

Robinhood’s AI-Driven Acquisition

Robinhood’s acquisition of Pluto Capital, founded by Jacob Sansbury, marks a significant step in strengthening the platform’s capabilities.

Pluto is famous for it Powered by AI personal investment advice and real-time statistics, providing services usually only accessible to wealthy investors.

Mayank Agarwal, Robinhood’s Vice President of Engineering, praised Pluto’s “impressive platform” and artificial intelligence capabilities, emphasizing their shared mission to “democratize finance.”

Integrating Pluto’s powerful AI tools is expected to increase Robinhood’s efforts in serving its customers, in particular. shopkeepersby providing up-to-date market information and personalized investment recommendations based on individual portfolios.

However, Hoskinson, in recent times social media postsexpressed his continued concern about AI experiments and their far-reaching effects.

Research Team Supports Cardano Founder’s Concerns

The founder of Cardano highlighted the potential loss of the resource over time as artificial intelligence models receive training in “alignment”, where certain information is withheld from future generations based on the opinions of a select group of people who remain unaccountable and without access to elections. Hoskinson says:

This means that certain information is not allowed to every young child, and that is decided by a small group of people you have never met and cannot vote out of office.

Supporting the concerns of Hoskinson, the research team behind “Cardano GPT” confirmed issue, citing central control over the model’s training data as an important factor.

When a small group of people exclusively control and limit the training of an AI model based on their opinions, the risk of biased or censored information arises, they note.

The team suggests that classification of linguistic models (LLMs) is a possible solution to overcome this challenge. However, computing power has a limit of distributed storage solutions it currently prevents widespread adoption, making the mass adoption of these models less than 1%.

A hybrid model solution has been proposed to address this issue, aiming for a balance between centralized training data and decentralized LLMs. This approach aims to reduce research-related concerns while allowing broad access to advanced language models.

As the acquisition of Pluto by Robinhood advances AI-driven capabilities within the retail investment space, the concerns expressed by Cardano’s Hoskinson and the proposed hybrid model solution highlight the importance of transparency and democracy in the development and use of AI technology.

At the time of writing, Cardano’s native token, ADA, was trading at $0.401. The token has shown positive price movements recently, showing a 4% increase in the last 24 hours and a 6% increase in the last 7 days.

Featured image from DALL-E, chart from TradingView.com