#riskmanagement
18 posts · Last used 16d
Do not invest in AI ETFs.
- AI isn't exclusive to them.
Any high school kid can get AI tools.
- The edge represents the most likely output of a language model fed with literature
An AI model predicts text from the corpus. It's not innovating. It's predicting. The most likely answer, for everyone.
- LLMs cannot do math
They are text crunchers. If that's enough for an ETF, it's slop.
- LLMs do not have any fundamental capability to assess 10-Qs, 10-Ks, Earnings call transcripts or SEC filings. It's always the best year of the quarter ;)
LLMs are not trained to reason against business phrasing / deceptive text. The buy the most optimistic speech pattern, not the fundamental edge.
- The AI is made by a 3rd party. You have no control.
Do not invest in AI ETFs. Do not invest in IPOs. Unless you have a plan and a setup, that resembles a professional hedge fund.
An AI coding agent wiped out a company's entire production database and every backup in just 9 seconds. The AI agent later confessed, in its own words, that it guessed a destructive action would be scoped to the staging environment, didn't verify, didn't read the docs, and just did it anyway. 🤦🏻♂️ Everyone's blaming the AI. I'm looking at the humans who handed it the keys. This wasn't a rogue model. It was a predictable outcome of predictable choices:
- A CLI token with blanket permissions across all environments
- Backups stored on the same volume as the data they're meant to protect
- A cloud provider whose API executes destructive commands with zero confirmation step
- An agent given access to production while the team thought it was safely contained in staging
The founder is now manually reconstructing customer bookings from Stripe logs and calendar integrations. Every one of his customers is doing the same because of a 9-second API call. AI agents don't have judgment. They have instructions and permissions. Whatever permissions you grant, assume they will eventually be used in the worst possible sequence at the worst possible moment. That's not pessimism, it's how you architect resilient systems. Separate your environments. Scope your tokens. Store backups offline and off-volume. Require confirmation before any destructive operation. These aren't AI-era lessons. They're 30-year-old lessons that people keep skipping because the tooling makes it easy to skip them. The speed AI can act is new. The failure modes underneath it are not. https://www.tomshardware.com/tech-industry/artificial-intelligence/claude-powered-ai-coding-agent-deletes-entire-company-database-in-9-seconds-backups-zapped-after-cursor-tool-powered-by-anthropics-claude-goes-rogue #AI #Cybersecurity #RiskManagement




