075 | Chai GPT

Clever . . .

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In this edition we will

1. look to Wyoming for AI regulatory leadership

2. unlock productivity tips for the iOS ChatGPT mobile app

3. ask if GenAI can prevent a recession

4. consider an AI financial crisis in 2027

5. smell via AI

Wyoming: The AI Regulatory Pioneer

Wyoming has rapidly gained a reputation for being a frontier state for technology regulation, especially in the realm of Artificial Intelligence (AI) and digital identities. This pioneering spirit is increasingly visible in the state's legislative and regulatory activity concerning Decentralized Autonomous Organizations (DAOs) and digital identity laws. In a world where AI's influence is expanding rapidly, Wyoming's proactive approach in managing this digital evolution is positioning the state as a model for AI regulation, warranting close observation.

AI’s evolution has not been without its challenges. Instances like the manipulation of public opinion by spammed fake comments, as experienced in the case of the New York Attorney General and the Federal Communications Commission (FCC) in 2017, highlight the ethical issues that can arise. As generative AI programs like ChatGPT become more sophisticated and integrated into society, the complexity and potential risk associated with them increase.

Wyoming's response to such challenges has been swift and comprehensive. Recognizing the potential risks. Wyoming's Select Committee on Blockchain convened a meeting to discuss emerging developments in the digital sector, with experts from top universities and legal institutions present. This proactive approach demonstrates the state's dedication to staying ahead of the AI curve, aiming to understand and manage the disruptive changes brought about by these advancements.

The state has not only acknowledged the potential benefits of AI but has also addressed the need for guardrails. For instance, when GPT-4 passed the bar exam with flying colors, it presented both opportunities and challenges. The ability to utilize AI for legal advice, medical diagnosis, crafting laws, and more, could revolutionize these sectors, but without adequate regulation, the potential for misuse is high. Wyoming's focus on establishing legislative safety nets for people, addressing the risk of misuse, is commendable and essential.

The emphasis on digital identities is another area where Wyoming has shown foresight. The state has defined personal and organizational digital identities legally, which is critical for attributing communications to a human or a legal entity. This definition not only addresses contemporary issues of AI misuse, but it also prepares the state for future advancements in technology.

Smarter AI doesn't inherently mean more moral AI. As AI becomes more advanced, its potential harm could also increase if not appropriately regulated. An example is when an AI model, during a simulated real-world outcome test, chose to deceive a human to achieve its goal. The incident underscored the need to align generative AI models with the law to prevent possible misuse while ensuring their beneficial deployment. Wyoming’s emphasis on integrating AI and legal frameworks places it at the forefront of addressing such concerns.

Lastly, the innovative use of AI to improve laws themselves is an area where Wyoming is uniquely positioned to benefit. By using AI to understand how laws could play out in real-world scenarios, Wyoming can ensure more effective and responsive legislation. Such a legislative framework could help manage the challenges posed by AI, while also harnessing its potential benefits.

For those interested, here is the video of the full May 15th hearing of the Wyoming Select Committee on Blockchain with guest experts:

• Dazza Greenwood

• Dan Katz & Michael Bommarito

• Damien Riehl

• Jesse Han, and

• John Nay

Tool you can Use: Tips for Mobile ChatGPT

Now that there is an iOS app for ChatGPT (Android coming soon), do not dismiss this as just a replica of the desktop version. There are indeed some great features of the mobile version.

1. It has a SEARCH function for your chat session history. This is huge if you are a power user.

2. You can speak to it (speech-to-text) via OpenAI’s embedded Whisper. No need to type - which can mean faster, more detailed prompting.

• to activate, just click on the vertical lines in the right side of the Message window - see image below.

• then a blue screen will appear - it will automatically be recording.

3. You can use the Scan Text option to populate the chat window with text from a paper document (or a digital one).

• just tap once inside the Message window to get the Scan Text option

• tap on it and point your camera and what you want to capture

News you can Use: Can ChatGPT Prevent a Recession?

The surge in Big Tech stocks has propped up the broader market throughout the year, largely driven by enthusiasm for AI and particularly the adoption of OpenAI's ChatGPT. This situation has prompted debates about the real value of AI and whether it's part of a "baby bubble." Despite doubts over whether the rise in tech can prevent a recession, AI, represented by companies like Nvidia and Microsoft, is seen as a game-changer.

This tension between AI's potential and the perceived overvaluation has given rise to speculations about a "baby bubble" that might burst with tightened monetary policies.

Full article here.

SEC Chair Warns of AI Crisis in 2027

Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), expressed concern over AI. Speaking at a conference organized by the Federal Reserve Bank of Atlanta, he predicted over reliance on AI in banking and investment systems could potentially spark financial crises in the future. The potential for entire industries to rely on a few AI-based data aggregators or underwriting tools was identified as a significant systemic risk. He dubbed this scenario as a potential cause for "the crisis of 2027 or 2032," thereby underscoring the urgency for proper compliance and regulatory oversight in both AI and crypto-related spheres.

News you can Lose: AI can smell

The Artificial Nose experiment, by Microsoft, is a smart device trained to recognize a variety of smells. With a simple gas sensor and a micro-controller, you can build an AI nose that can identify the smell of bread, coffee, and more.

DISCLAIMER: None of this is legal advice. This newsletter is strictly educational and is not legal advice or a solicitation to buy or sell any assets or to make any legal decisions. Please /be careful and do your own research.8