Happy to see you again! Find someone as committed to you as Mark Sumersett is to surfing. Sumersett isn’t giving up surfing despite a shark biting his face last week.
“Of course I’m going to surf again,” he told local news. “Because I love it. There’s nothing in the world that makes me feel better than surfing.”
In today’s news, we look at the most compelling argument for why the AI boom will likely only benefit those at the top, not all of us.
What’s on deck:
But firstly, the rising tide does not always raise all the ships.
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The big story
The AI heretic
One of the leading experts on technology’s impact on the economy has some bad news: AI is poised to do more harm than good.
Daron Acemoglu, an economist at MIT, is a highly respected and best-selling author. But his latest stance challenges the widely held view among his peers that new technologies always lead to better lives for everyone, writes Insider’s Aki Ito.
Acemoglu says new technologies, in themselves, have not been the catalyst for widespread economic growth as most have touted. In reality, technology only benefits and enriches those at the top and harms society as a whole when left to its own devices.
This is an important distinction, Aki writes, because new technologies have been presented – especially during the AI boom – as positive. Leaders like to say that innovations will make employees work better instead of making them obsolete.
But this equation only works, Acemoglu says, if technology creates more new tasks than it eliminates and there is a balance of power between employer and employee.
Unfortunately for us, we are failing on both counts when it comes to the AI boom.
Acemoglu’s research found that each additional robot introduced since 1990 has reduced employment by about six people. This type of calculation does not indicate that technology leaves us much work to do.
Meanwhile, the power dynamic between boss and employee has become increasingly imbalanced. CEOs earned about 272 times more than their employees in 2022, according to a recent report. And the percentage of unionized workers has fallen to a record low.
If you’re counting on the regulators to come to your rescue, good luck. In recent years, some members of Congress lacked a basic understanding of the technology, let alone something as complex as generative AI.
Meanwhile, tech companies aren’t slowing down, as they rely on much of our data to train their models. This has led to a “shadow war” over information, Nat Friedman, former CEO of GitHub, said in a recent interview.
But maybe it won’t be so bad? AI leaders like to talk about how everyone will have a tech assistant.
Maybe this will help us find ways to fill the hours of the day since we will all be out of work.
Read the full story
3 things about the markets
- Private credit is the hottest profession on Wall Street. Fund managers willing to lend face difficulties due to extremely high interest rates and the risk aversion of big banks. The $1.5 trillion market, which offers impressive compensation packages, is in the midst of a talent frenzy.
- Just when you thought the real estate market couldn’t get any worse. The median monthly mortgage payment — $2,632 — is now at an all-time high, according to a new Redfin report. And the situation is set to get worse, as recently purchased homes with the highest mortgage rates since 2001 have yet to be included in the data.
- Be prepared to sleep in the office if you want to run a successful hedge fund. Renaissance Technologies CEO Peter Brown said he spent 2,000 nights in his office and didn’t “see how I could do it any other way.” The result: The firm’s flagship fund has averaged a return of nearly 70% over two decades.
3 things in technology
- Salesforce’s CEO has warned of the dangers of generative AI unless it comes from his company. Marc Benioff spent much of the annual Dreamforce conference sounding the alarm about the unreliability of generative AI today.
- A trio of AI pioneers: “The scholar, the pragmatist and the rainmaker”. Bloomberg Beta’s three partners have been prolific investors in AI for more than a decade. Here’s how they rewrote the VC playbook.
- McAfee CEO warns of ‘explosive’ cybersecurity risks posed by generative AI. Greg Johnson highlighted how technology is making phishing more sophisticated. This may include fake phone calls or AI-generated videos that indicate your loved one is in distress.
3 things in business
- Tupac, cocaine, murder: The incredible saga of the Rosemond brothers. They founded rap’s most famous management company and were responsible for The Game, Salt-N-Pepa, Akon, Sean Kingston and Gucci Mane. But the company was originally created to serve as a “hideout” for their drug empire.
- The two work archetypes: 9-5 “splitters” and flexible “mixers.” There is a major divide between workers and bosses. About half of Americans want a set work schedule of 9 a.m. to 5 p.m. Meanwhile, bosses believe that most workers want to do daily tasks alongside work.
- A guide to when to tip and when it’s okay not to. More and more places are asking for advice. Etiquette experts have revealed that it’s OK not to tip for things like takeaway and coffee. In the meantime, you might want to tip for food deliveries.
In other news
What’s happening today
- The 16th annual Academy of Country Music Honors takes place tonight. The awards ceremony is hosted by Carly Pearce for the third year in a row and will be broadcast on FOX.
- It’s International Equal Pay Day. The United Nations General Assembly established this day in 2019 with “equal pay for work of equal value” in mind. Globally, the gender pay gap is estimated at 20%.
- Earnings today: Stitch Fix and other companies.
For your bookmarks
A longevity expert has shared his centennial-inspired exercise routine. This includes 150 minutes of intentional exercise each week and walking each day.
The Insider Today team: Dan DeFrancesco, editor and anchor, in New York. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, London. Lisa Ryan, editor-in-chief, in New York.