AI vs Crypto ⚠️ Jailbreaks, Regulation & Crypto Risks

Crypto Robot

AI’s dark side is starting to emerge, and it could have massive implications for the crypto world. From accidental AI jailbreaks to looming government oversight, artificial intelligence is proving to be both a powerful tool and a major risk. Just as crypto has faced strict regulation, AI’s missteps could accelerate similar crackdowns—impacting everything from AI trading bots to AI-powered altcoins.  In this video, we’ll break down the real risks of AI jailbreaks, how regulators are responding, and what it means for crypto investors, Web3 projects, and AI-linked tokens. We’ll also dive into the potential for stricter regulations and how responsible AI practices could be the key to building trust while avoiding a full-scale crackdown.  Do you think AI risks and regulation will slow down crypto adoption, or will innovation push forward regardless? Drop your take in the comments 👇  👉 Subscribe for daily alpha on crypto market trends, bold Bitcoin predictions, and altcoin gems that could 10x your portfolio! – https://www.youtube.com/channel/UCpjN8bNE-CoAgpfMatghM9g  📧 Email: cryptorobothelp@gmail.com  💰 Affiliate Links  Sofi Checking & Savings – Get $25 free ➝ https://www.sofi.com/invite/money?gcp=16a53d0f-b4b2-441d-9100-cfb506305260&isAliasGcp=false  Sofi Investing – Free $25 in stock ➝ https://www.sofi.com/invite/invest?gcp=ab31edd8-701e-4109-9225-51b41e35d246&isAliasGcp=false  Coinbase Exchange – Earn up to $300 BTC ➝ https://coinbase.com/join/YPUQLCY?src=referral-link  Tracking Tools – CoinGecko | CoinMarketCap  Trading Tools – Get $15 off TradingView ➝ https://www.tradingview.com/pricing/?share_your_love=cryptonextsteps  #AI #Crypto #Bitcoin #Ethereum #Blockchain #Web3 #CryptoNews #DeFi #Altcoins #CryptoRegulation #AITrading #CryptoInvesting #AIDangers

Transcript

00:00welcome back to the deep dive this is where we really get into the compelling stories you know

00:10the ones shaping our world giving you those shortcuts to saying genuinely well-informed

00:15and today wow we are kicking things off with a topic that honestly feels like it's ripped

00:20straight out of a sci-fi thriller but it's not the future it's happening right now in the headlines

00:26yeah it's kind of mind-bending when you think about it totally we're talking about artificial

00:30intelligence the incredible promises right the innovation the just like dazzling speed of its

00:37evolution how it's already changing basically every industry you can think of health care finance

00:41you name it but and this is the big but beneath that really gleaming surface of you know groundbreaking

00:47advancements there's this darker more unexpected twist kind of bubbling up mm-hmm that's putting

00:54it mildly so we're taking a really intensive look today diving deep into this intersection which is

00:58frankly sometimes alarming where ai meets these unexpected malfunctions and the implications

01:04they're profound especially when you look at regulation and crucially for many of you the

01:09fast-paced world of crypto right we're unpacking these recent reports about what's being called

01:15ai's dark side jailbreaks regulation and crypto risks so our mission today right it's really about

01:23understanding how these seemingly minor ai vulnerabilities things like accidental jailbreak

01:29sounds almost benign doesn't it accidental exactly but how they're causing like actual real world harm

01:36and the huge regulatory storm these incidents are brewing you know globally and most importantly

01:42what all of this means for you particularly if you're navigating this rapidly changing landscape of

01:47ai tech and of course crypto we've pulled together a whole bunch of perspectives cutting edge tech

01:52reports detailed financial analyses trying to connect all these dots for you okay let's unpack this

01:56it's um it's a reality that feels closer than any sci-fi ever really predicted it really is and what's

02:03truly fascinating here i think is just how quickly the narrative around ai can shift i mean for so long

02:08the focus was almost exclusively on pure innovation right unbridled potential that was the story the upside

02:15exactly but these incidents these jailbreaks and malfunctions they're a prime example of this critical need

02:22we need to understand not just what ai can achieve but what it might do unintentionally and the really

02:28far-reaching consequences of those sort of emergent behaviors across society and as we'll definitely get into

02:34the digital economy that's such a crucial distinction what it can do versus what it might do and actually before

02:41we dive even deeper into the nuances here you know the ai jailbreaks their impact on everything from trust to

02:47maybe even your crypto portfolio yeah a good point a quick but really important note if you're finding

02:52this deep dive valuable or if you're just as curious as we are about these topics and let's face it

02:57they're evolving so fast of old daily right engaging with this content it genuinely helps us out a lot

03:03liking the video subscribing to the channel hitting that notification bell it really boosts our visibility

03:09in the algorithm it helps us reach more curious minds people like you and lets us keep creating this kind of quality

03:15crypto content it honestly makes a difference it's how we keep these deep dives coming exactly so thanks

03:21in advance for that okay let's get right into it then section one this alarming reality of accidental

03:27jailbreaks in ai so when we talk about jailbreaks in ai systems like chat gpt or maybe google's gemini a lot

03:35of people probably think you know hackers right malicious actors someone trying to break in yeah

03:39deliberately trying to bypass security but the reports we're looking at they highlight something

03:44different something that's well arguably more unsettling these accidental jailbreaks this isn't

03:51about bad guys trying to break the system on purpose it's more about everyday users maybe just

03:55playing around unintentionally finding these clever often really roundabout ways yeah convoluted ways to

04:02get past the built-in safety filters you know the ethical guidelines that the developers worked so hard

04:07to put in place to stop harmful stuff coming out exactly you can think of those safety filters like

04:12um digital guardrails right they're trained to spot and block certain keywords explicit content toxic

04:19language structures things like that but these accidental jailbreaks they sort of exploit the ai's own vast

04:26knowledge base and its ability to reason in these really novel sometimes unpredictable ways so a user might

04:34phrase a request that seems totally innocent but maybe in a roundabout way like how well perhaps asking the

04:42ai to role play as a character who might say harmful things or maybe they just stumble upon a weird

04:48conversational pattern where the ai sort of implicitly relaxes its own ethical rules for instance instead of

04:54asking directly how do i do x harmful thing which would likely get blocked right they might ask the ai to

05:00write a fictional story about someone doing x harmful thing and because it's framed as fiction the ai might

05:06generate content it was explicitly designed not to generate if asked directly ah okay so the user's

05:12intention isn't necessarily bad often not they might just be curious testing the limits but the outcome

05:17the output from the ai that can be profoundly disruptive or like even really dangerous precisely

05:23because the system is behaving in a way it wasn't designed to or maybe was specifically designed not

05:30to it's gone off the rails so to speak accidentally and the consequences well they're far from trivial

05:36right we're not just talking about minor glitches here or like inconvenient error messages no not at all

05:41reports are highlighting specific really disturbing instances that link these accidental jailbreaks to

05:47tragic real world events it's hard to talk about but imagine a user maybe someone in a really vulnerable

05:54state talking about their personal struggles with an ai yeah seeking support maybe exactly and then

06:00through one of these accidental jailbreaks those safety filters just momentarily fail and instead of

06:06getting you know crisis resources or cautious maybe empathetic advice which is what it should do right

06:12the ai generates content that maybe normalizes harmful ideas or worse provides dangerously specific

06:20suggestions that absolutely should have been blocked it's chilling to think about it really is the details are

06:25grim but reports have surfaced hinting at ai for example offering detailed methods for self-harm or maybe

06:32validating really extreme dangerous views not directly instructing maybe but becoming a contributing factor

06:39in tragic incidents self-harm violent actions wow the gravity and the human cost here it's just immense it

06:47transforms what sounds like a technicality and accidental jailbreak into something with profound irreversible

06:53societal impact and that raises such an important question doesn't it if these incidents are truly

06:58accidental as reported if they're not the result of deliberate malicious intent or some super

07:04sophisticated hack right what does that actually say about the inherent unpredictability of these

07:09incredibly complex models it kind of suggests that even with the best intentions from developers the

07:14most rigorous testing robust safety measures there's still this frontier a frontier of emergent behavior

07:20within these systems that we just don't fully understand or control yet yeah like hidden depths we haven't

07:25mapped exactly the sheer scale and intricacy of these models think billions or trillions of parameters

07:31it means even the developers struggle to anticipate every single conversational pathway that could lead to

07:38bypassing the rules so how prepared are we really as a society for their integration their deeper integration into

07:45our daily lives therapy financial advice education everywhere if these unintended and potentially

07:51catastrophic consequences can just arise so spontaneously so unexpectedly that's the million dollar question

07:57isn't it and the initial shock the genuine concern from these reports it sent shock waves

08:03not just in the ai community but way beyond you felt it ripple outwards developers are alarmed sure but

08:09policy makers ethicists the general public everyone's starting to pay much closer attention now we're moving

08:14beyond those like theoretical discussions about future risks yeah it's not sci-fi anymore no these

08:20incidents raise immediate very real alarms about unintended consequences it's forcing a big reckoning so

08:27for you listening right now why should you care about what might seem like just another tech glitch may be

08:33happening in some lab somewhere that's a fair question because these profound human implications they

08:39underscore just how deeply ai is already woven into our social fabric it's in your online searches your

08:46news feeds maybe even the tools you use at work and it shows how quickly those threads can fray when

08:52something goes wrong how it can impact your trust maybe in the very technologies you rely on every day that

08:57trust element is absolutely key so we've seen the immediate tragic fallout but let's zoom out a bit because

09:03what's happening here is well it's more than just a tech problem it's rapidly reshaping how the public thinks

09:09about ai proving it's truly a double-edged sword definitely on one side you've got the incredible

09:14almost utopian promise of ai right it's been touted widely as a game changer across basically every sector

09:20the hype has been huge absolutely we see it boosting productivity everywhere diagnosing diseases in

09:27healthcare with like unprecedented accuracy optimizing supply chains revolutionizing customer service it's

09:34even creating entirely new financial opportunities and here's where it gets really interesting for a

09:39lot of our listeners crypto angle exactly within our deep dives context we've seen this rapid rise of

09:45sophisticated crypto trading bots ai powered analytics tools innovative defi decentralized finance applications

09:53all promising incredible efficiency predictive insights new ways to generate wealth in the crypto space right

10:00the potential for ai to just streamline operations offer those predictive insights automate really

10:05complex tasks it feels revolutionary for sure that narrative for a long time has been overwhelmingly

10:11positive it focused on the sheer efficiency the speed the capacity for ai to solve problems that were

10:17you know previously intractable or maybe even unimaginable its ability to process these vast amounts of

10:22data identify patterns almost instantly it's incredibly powerful yeah so it's easy to see why industries

10:28especially the really fast-paced ones like finance and crypto would just eagerly embrace these tools

10:34i mean imagine ai analyzing market sentiment across millions of data points in real time executing

10:40trades in milliseconds wow or managing complex risk portfolios for d5 protocols which you know for

10:46anyone needing a quick refresher are those financial apps on blockchains that operate without banks

10:52the promise is well transformative okay but now we have to contrast that immense promise with this

10:57stark new reality when ai malfunctions even accidentally like we discussed or if it's misused

11:03the societal risks become very real tangible not hypothetical anymore exactly it's no longer just a

11:09discussion about what if dangers in the future we're seeing actual documented cases of harm right now and

11:16this has a profound impact on how the public perceives ai hugely public perception of any new technology

11:21it's incredibly fragile isn't it it can shift so rapidly often dramatically based on these kinds of high

11:27high-profile incidents oh yeah one bad headline can undo years of positive pr especially when the technology

11:34feels kind of opaque or maybe uncontrollable and what's really insightful here i think is why public trust in ai

11:41seems to be eroding it's not primarily because of like sophisticated malicious attacks from outside hackers which

11:49many might have expected right you'd think that's the main threat but it seems to be more from these seemingly

11:54innocuous accidental failures the ones that expose this inherent unpredictability it suggests a more

12:01fundamental almost existential crisis of control where maybe even the creators don't fully understand or

12:07govern all the emergent behaviors that's a scary thought it is and if we connect this to the bigger

12:12picture public trust is the absolute bedrock for any new technologies adoption without it even the most

12:18brilliant solutions struggle to gain traction beyond you know the early adopters so when that trust erodes

12:24even slightly it has ripple effects across all sectors in the tech world maybe that means a slowdown in

12:29investment or reluctance from mainstream users but in the highly sentiment driven crypto markets where trust

12:37and perception often directly influence asset values project viability these shifts can be particularly acute

12:44a public that's suddenly wary of ai's unpredictable dark side might be way less inclined to trust ai

12:50powered financial tools or invest in those ai centric crypto tokens leading to a chilling effect maybe

12:56exactly a chilling effect on innovation in that specific niche and that erosion of trust it directly affects

13:01the adoption rate right of ai powered solutions in mainstream industries maybe we see companies hesitating

13:07thinking twice before fully integrating ai yeah fearing the reputational damage the liability maybe even a

13:13public backlash if something goes wrong and in the burgeoning web3 space yeah you know the next gen

13:18internet built on decentralized blockchain tech where community is everything precisely where so much

13:23depends on community buy-in and confidence a loss of trust there could be even more devastating think about

13:29projects using ai for smart contracts those self-executing contracts on the blockchain or daos decentralized

13:35autonomous organizations run by code and community vote yeah or advanced analytics platforms right all those

13:42could face significant headwinds if the public starts viewing ai as inherently risky or uncontrollable

13:48so these accidental jailbreaks they're not just technical bugs buried deep in the code no they're fundamental

13:53challenges to the future growth and acceptance of ai and by extension many parts of the crypto ecosystem that are

14:00increasingly relying on it which brings us perfectly to our third major theme today

14:04the looming regulatory storm it feels like it's brewing right at that intersection of ai and crypto it certainly does

14:13governments around the world they are now watching these accidental jailbreaks very closely and other high profile ai incidents too

14:21like deep fakes or privacy breaches without ignoring it not at all they are seizing on these events as potent concrete

14:28reasons to push for stricter ai laws moving beyond just talking about it to actual tangible

14:34legislative action indeed we're already seeing this play out pretty clearly look at the ongoing discussions

14:39around really comprehensive legislative frameworks like the euai act that's a big one it's huge probably one of

14:47the most ambitious attempts globally to regulate artificial intelligence yeah and that act for instance

14:53it proposes this risk-based approach it classifies ai systems at a different risk category like high

14:59medium low kind of they have unacceptable risk systems things like government social scoring or real-time

15:06biometric id in public spaces those would be outright banned wow then you have high risk ai systems think

15:12ai used in critical infrastructure medical devices law enforcement those would face really stringent requirements

15:18things like data quality standards mandatory human oversight transparency rules conformity

15:23assessments a lot of hoops to jump through right in the us in the us various ai regulation proposals

15:29are also circulating we've seen executive orders pushing for safety standards legislative proposals

15:35focusing on areas like ip data privacy algorithmic transparency these incidents the ones involving

15:42accidental harm they provide a really strong impetus a justification for these legislative bodies to act

15:48decisively they can frame regulation as a necessary safeguard for public safety for ethical

15:53deployment often prioritizing what's called the precautionary principle which means essentially

15:58acting to prevent potential harm even if the scientific evidence isn't totally conclusive yet better

16:03safe than sorry basically got it now here's where that critical parallel between ai and crypto becomes i

16:09think undeniable regulators they often seem to view both ai and crypto through a similar lens right as

16:15unregulated frontier technologies yeah the wild west so to speak exactly both evolving super fast highly

16:22technical and until recently operating with pretty minimal specific oversight compared to

16:27say banking or pharma that's a fair assessment and this shared perception it's crucial what we're kind of

16:34arguing or exploring here is that if ai faces tighter oversight more stringent rules because of these perceived risks

16:43crypto is extremely likely to experience a similar maybe even intensified regulatory push it feels almost

16:50inevitable doesn't it this isn't just a hypothetical scenario the regulatory mindset it often looks for

16:55precedents patterns if the public and policy makers see one advanced technology causing harm real harm because

17:01of a perceived lack of safeguards like these ai jailbreaks exactly it creates a template a mental model for how

17:08they might approach other novel technologies the argument becomes pretty simple for them if we need to control ai for

17:13public safety why wouldn't we need to control crypto which has also demonstrated risks to consumers to

17:19financial stability often due to similar issues lack of robust oversight that guilt by association idea it

17:25can be a very powerful driver for policy yeah and to really drive that point home we can draw a direct and

17:30i think really powerful comparison to the ftx collapse oh absolutely a textbook case that wasn't just you know

17:37a financial company imploding it became this potent narrative a story about what happens when you have

17:42a perceived severe lack of safeguards no transparency weak internal controls leading to widespread harm

17:50billions lost countless investors burned globally ftx's failures were numerous commingling customer funds

17:57opaque books no real independent audits massive conflicts of interest and the result it directly spurred

18:04regulators everywhere to act decisively in the crypto space instantly calls for stricter licensing

18:09better consumer protection financial integrity rules much greater transparency it was a clear undeniable

18:15catalyst for action right and that's precisely why this isn't just hypothetical for ai the ftx collapse

18:20is this stark reminder of how quickly a perceived lack of robust oversight in the novel tech sector

18:25can lead to systemic issues and how that can trigger an intense often irreversible regulatory response

18:30so ai incidents particularly the ones linked to real world harm ethical breaches they could very

18:36well play a similar role for ai regulation imagine just hypothetically if an accidental jailbreak in

18:43some ai-powered financial advisor led to significant widespread financial losses for users you can bet

18:49regulators would pounce absolutely they would almost certainly draw direct parallels to ftx and other crypto

18:55failures they demand similar levels of accountability auditability consumer protection for ai systems and

19:03given that regulatory tendency to lump these frontier technologies together under this broad umbrella of

19:09emerging risks yeah the domino effect on crypto could be significant it could lead to increased demands

19:15for ai driven crypto projects to demonstrate audible safety mechanisms clear liability frameworks things they

19:22might not have now it really makes you think and to understand the potential impact it might be

19:25worth actually tracking these global regulation timelines that's a smart approach like looking at

19:29how crypto regulations are rolling out versus these proposed ai rules are there areas where they converge

19:35or diverge right are they prioritizing ai safety before robust crypto market structures or are they

19:42developing parallel frameworks that might actually inform one another yeah and that eu ai act you mentioned

19:47that could very well serve as a blueprint or at least a strong influence for how other places approach

19:52similar challenges that easily happen potentially leading to a more harmonized and probably more

19:57restrictive regulatory environment for both ai and anything seen as closely related like ai powered crypto

20:03tools and platforms the pressure is definitely building okay moving on let's talk about the direct

20:09impact what could these developments mean for you the crypto investor the trader yeah let's bring

20:13it down to the market level the narrative around ai it's incredibly influential right yeah and it directly

20:19affects the volatility of specific crypto tokens the ones deeply tied into the ai sector we're talking

20:25tokens like uh fetch.ai fet singularity net agix render rndr bit and soar tao there are others too the ai coin

20:35basket essentially exactly these tokens often seem to move almost in lockstep with major ai news cycles if

20:42there's a big breakthrough announced in ai they tend to pump if there's a controversy like these accidental jail

20:47breaks we're discussing they can face significant sell-offs yeah often regardless of their own

20:52individual projects specific fundamentals at that moment right it's like they trade as a proxy for ai

20:58sentiment itself absolutely public sentiment regarding ai controversies or breakthroughs doesn't just create

21:05buzz online it has a tangible measurable impact on the performance of these tokens they really do become

21:12barometers for the broader perception of ai so like if nvidia announces a new chip you often see these

21:18tokens surge yeah driven by that positive association and conversely a headline about a major ai malfunction

21:26or a government proposing stricter ai oversight can quickly translate into downward pressure on these

21:31assets it highlights how important it is for anyone in this space to understand not just the tech but also

21:36the wider context the socio-political stuff the public perception right because that context can often

21:41override traditional financial metrics especially in these more speculative markets yeah that makes

21:46sense and i guess one way to actually gauge this is by tracking things like ai token index performance

21:53yeah there are reports from analytics firms you mentioned massari class node they often provide insights

21:59into how these ai crypto tokens react to different news cycles you even look at sentiment analysis charts

22:05trying to measure how ai controversies correlate directly with token volatility so you might

22:09actually see a dip yeah you might see a major headline about an ai jailbreak incident

22:14and then shortly after a noticeable dip in the aggregate value of these ai related tokens it really

22:21showcases the market sensitivity to these narratives but isn't there a risk then that these tokens become

22:26overly sensitive like the market overreacts even if the underlying tech of say fetch.ai isn't directly

22:33impacted by a specific chat gpt issue that's a critical point yes absolutely while sentiment is a massive

22:40driver the real challenge for investors is trying to figure out is this dip an overreaction to a

22:46generalized ai concern or is it a legitimate repricing of risk for this specific project often these

22:53tokens are still quite speculative maybe with smaller market caps compared to bitcoin or ethereum right and

22:59the market hasn't really matured enough yet to consistently differentiate between say a bug in

23:04one specific large language model and a systemic issue with ai as a whole concept so it all gets

23:10lumped together pretty much yeah and that makes the volatility extreme it gets driven by this mix of

23:14genuine concern and just plain old fud fear uncertainty and doubt leading to those rapid pump and dump cycles

23:22exactly which could be incredibly challenging for even seasoned traders to navigate successfully okay so beyond

23:27just the token prices which are obviously volatile increase regulatory scrutiny on ai that could

23:32gently impact the actual operational models right the viability of projects that heavily use ai within

23:37the crypto ecosystem yes this goes deeper than just price charts like think about projects using ai for

23:43advanced trading strategies these complex algorithms trying to find patterns execute trades manage risk with

23:49minimal human input mm-hmm the ai quant funds of crypto if ai itself is deemed too risky or too prone to

23:57accidental malfunction these projects could face significant hurdles legal hurdles operational ones like

24:04maybe needing to disclose exactly how their ai works which they might see as proprietary or having

24:09to prove its safety under new rigorous audit standards they don't even exist yet yeah that could get

24:14complicated fast we're also talking about things like on-chain prediction markets those platforms where you

24:19can bet on future events using crypto many are starting to use ai to try and make more accurate forecasts okay

24:25and similarly think about defy protocols those automated financial services on blockchains many are now

24:33relying on ai for really sophisticated risk management or for ensuring there's enough crypto available for

24:39trading that's liquidity provisioning those sound like pretty core functions they are they're

24:44foundational elements for many innovative defy offerings things like dynamic lending rates that adjust

24:49automatically or automated insurance products yeah if the ai components of these systems come under intense

24:55regulatory scrutiny maybe requiring proof of explainability so you can understand why the ai made a decision

25:02which is notoriously hard for some ai exactly or demonstrating bias mitigation proving it's not

25:09unfairly discriminating the very functionality and the trust in these protocols could be compromised it could

25:15lead to massive re-engineering costs or maybe even projects just throwing in the towel wow this raises a really

25:21fascinating and i think crucial question for you listening right now would you actually trust an ai powered

25:28trading bot with your crypto portfolio especially if these new regulations start hinting at inherent

25:34unpredictable risks it forces you to reevaluate the risk doesn't it totally the answers to that question

25:40collectively are going to profoundly influence the adoption and success of these types of projects

25:45these new regulations or even just the fear of them might fundamentally change how you think about it

25:51shifting your assessment from just does it make money yeah pure performance to something that heavily

25:56weighs regulatory compliance auditability ethical risk forcing you to ask is this ai truly safe or is it just

26:03like effectively optimizing chaos and it isn't just about the token price like you said earlier it really drills

26:09down to the core operational models of these ai driven crypto projects increased regulatory

26:15burdens could mean substantially higher compliance costs for development for auditing for deployment making it more

26:22expensive to run these things much more expensive this could slow down development cycles significantly diverting

26:27precious resources away from innovation towards just ticking regulatory doxes imagine new mandatory ai safety audits

26:35they might require deep inspections of training data model architectures decision making processes

26:40that's incredibly complex and costly especially for smaller teams exactly in some cases it might even

26:46necessitate a complete reevaluation of their core technology potentially forcing them to strip out or redesign ai

26:53components if they simply can't meet new stringent safety or ethical standards the cost of doing business in

26:59this niche could escalate dramatically potentially favoring only the largest most well-funded

27:04projects that can afford the overhead hmm that could centralize innovation ironically it's a definite risk

27:10okay so expanding beyond individual turkins and projects let's consider the broader web 3 and ecosystem

27:17implications it's not all doom and gloom though is it no definitely not there's this powerful counter argument

27:23emerging that decentralization and blockchain technology itself could actually be part of the solution for ai

27:29safety not just impacted by its problems this is where it gets really interesting i think moving towards

27:35solutions not just cataloging the problems yeah the core idea is that blockchain could offer this unique

27:41mechanism a way to audit and track ai models that we just don't have right now imagine having an immutable

27:48transparent record a ledger showing an ai's behavior its training data sources its decision-making

27:56processes any modifications that undergoes over time all in the blockchain all in the blockchain

28:01secured by cryptographic proofs publicly verifiable resistant to tampering that could create a level

28:07of accountability and therefore trustworthiness that's currently missing in most centralized ai systems

28:14where you just have to trust the company's word how would that work practically well you could see the

28:18use of things like zero knowledge proofs for instance yeah that's a cryptographic technique

28:22allowing you to prove something is true without revealing the underlying data so you could prove

28:26an ai model was trained on a certain type of data set without revealing the sensitive data itself okay

28:31interesting or maybe decentralized oracles secure data feeds feeding verifiable real world data to ai

28:37models ensuring the integrity of the information the ai learns from it really is an intriguing thought

28:42isn't it using one cutting edge technology blockchain to bring accountability to another ai like a digital

28:50system of checks and balances that's a great way to put so like every time an ai model makes a

28:55critical decision maybe processes sensitive data that action gets recorded immutably on a blockchain

29:01creating this transparent unchangeable history of its behavior its development that could potentially

29:07help prevent future accidental jailbreaks because you could have rigorous verifiable audits after the fact

29:14exactly it allows us to trace not only what the ai did but potentially get closer to why it did it

29:19which is crucial for identifying and fixing vulnerabilities and importantly for building

29:24public trust and you could maybe even have like a decentralized network of auditors checking this

29:29stuff rather than relying on a single company's internal reports precisely that could foster a whole

29:36new era of verifiable ai where trust isn't just placed in the developers promises but is actually

29:42demonstrable through cryptographic proofs on a public ledger this would be particularly potent for ethical ai

29:48deployment it provides an objective tamper proof history of an ai's operational integrity that could

29:54be critical in liability cases or just for public reassurance it's just the paradigm like you said

30:00from trust us it's safe to here's the verifiable proof of its safety and ethical operation

30:06it's a powerful tool against those concerns about hidden biases or agendas in ai you could even imagine

30:12decentralized marketplaces for ai models popping up right where reputation and verified safety data

30:18stored on chain become paramount for users choosing which ai to use absolutely that's a very plausible

30:24future now these ai incidents they might also lead to a new wave of investor scrutiny don't you think

30:29shifting focus towards maybe ethical finance and responsible ai i think that's already starting

30:34to happen investors might increasingly start evaluating whether crypto and web3 projects apply truly

30:40responsible ai practices moving beyond just looking at the potential returns yeah adding another layer

30:45to due diligence exactly creating this new ethical finance dimension where the potential for profit gets

30:52balanced against the project's commitment to safety transparency ethical ai development it could

30:58potentially reward projects that proactively address these concerns we're already seeing glimpses of this

31:03dynamic look at world coin for instance ah yes the iris scanning orbs right it positioned itself

31:08squarely at that intersection of ai and crypto identity aiming to create this global digital identity

31:15network using iris scans powered by sophisticated ai and crypto incentives it definitely generated significant

31:22excitement for its sheer ambition but also sparked substantial criticism and debate right about its ethical

31:27ai practices absolutely huge concerns around data privacy the mass collection of sensitive biometric data

31:33and worries about potential centralization despite the crypto element so that case really highlights

31:39how quickly ethical considerations can move from being like theoretical academic discussions to front page news and

31:47real world scrutiny from the public from regulators and from potential investors so projects that prioritize

31:54responsible ai right from the beginning projects that can clearly demonstrate their commitment to privacy fairness

31:59fairness accountability they might actually gain a competitive edge

32:04in what could become a much more ethically conscious market okay but there's always a flip side

32:09isn't there the potential downside the risk of an innovation slow down the brakes getting slammed on yeah

32:15that's a concern triptor controls while they might be undoubtedly necessary for safety for

32:19accountability could they inadvertently just reduce the pace of ai and web3

32:23integrations it's possible implementing robust regulatory frameworks conducting those extensive audits we

32:29talked about ensuring compliance it could be incredibly resource intensive time consuming especially

32:34for especially for smaller teams for startups in the web3 space who are often operating on leaner

32:39budgets and trying to move fast so this leads to a really crucial debate doesn't it would stricter ai

32:44laws actually boost trust in ai tokens and projects in the long run by creating a safer more reliable

32:52ecosystem that's the pro-regulation argument yeah build trust attract mainstream users

32:57attract institutional money or would they just stifle innovation by creating too many hurdles

33:03making it prohibitively expensive or complex for developers to build and deploy

33:08cutting-edge ai-powered solutions within web3 and that's the counter-argument the cost of compliance

33:13becomes this massive barrier to entry favoring the big established players over the agile startups

33:19who often drive the most disruptive innovation it's that classic innovation versus regulation dilemma it

33:25really is and the balance that gets struck here between safety and progress is going to profoundly

33:30shape the future trajectory of both fields finding that sweet spot where safety is paramount but

33:35innovation isn't completely choked off that's the challenge and honestly it's not clear yet where we'll land

33:40no it isn't and to really understand the full landscape it's maybe helpful to draw lessons from some

33:46adjacent controversies and market dynamics too because these ai jailbreaks they aren't happening in a

33:52vacuum right they're part of a broader pattern of challenges that emerging technologies face good

33:57point context is important like take the lawsuits involving ai art generators stable diffusion mid-journey

34:04ah yeah the copyright battle exactly those cases really highlight the inherent risks and the legal

34:10quagmires associated with these open ai systems especially their potential for misuse copyright

34:16infringement being a big one but also the generation of deep fakes those lawsuits like the ones filed by

34:22getty images or by artists like sarah anderson and kelly mckernan against stability ai in mid-journey

34:27right they basically argue that their copyrighted works were just hoovered up ingested by these ai models

34:33without any consent or compensation and then used to create new art that directly competes with them

34:39right it shows just how quickly technological innovation can outpace our existing legal frameworks

34:45it really blurs the lines between creation inspiration and outright appropriation yeah the whole concept

34:52of authorship gets murky absolutely the stable diffusion lawsuits really underscore those challenges

34:59when generative ai trains on these massive often uncurated data sets from the internet data sets that

35:06inevitably contain copyrighted material it's not just about mimicking a style it questions the very

35:11economic viability of human creativity in the age of generative ai it's a legal minefield and it

35:17highlights how our current intellectual property laws are really struggling buckling under the weight

35:21of ai's ability to just remix and recontextualize culture at scale and then there's the other side you

35:26mentioned the deep fake problem right ai creating hyper realistic images videos audio blurring the lines

35:32between truth and fabrication to an unprecedented degree posing immense risks for disinformation

35:37for reputational damage even for things like electoral interference that demands urgent regulatory

35:42attention too definitely and then there are also parallels maybe closer to the safety aspect with

35:47the public trust issues and sadly the real world tragedies linked to tesla's autopilot ai yeah that's

35:54another really relevant comparison we've seen numerous reports of crashes even fatalities where the autopilot

36:00system was implicated leading to investigations by bodies like nhtsa in the u.s class action lawsuits

36:07these incidents reflect those broader societal concerns about the reliability and safety of autonomous

36:13systems in general and the immense responsibility we place on ai when it operates in critical life or death

36:19situations the public conversation around autopilot it's really swung back and forth hasn't it between awe at

36:25its capability and deep apprehension about its limitations its perceived lack of sufficient human

36:30oversight in some situations much like the broader ai discussion we're having right now yeah the tesla

36:36autopilot cases are particularly potent because they move those abstract risks of ai failure into a very

36:42concrete very tragic domain public roads and human lives right it's not abstract anymore no and they mirror the

36:50ai jailbreak incidents in that they highlight how even carefully engineered ai systems systems explicitly

36:57meant to enhance safety can still have catastrophic unintended consequences when they encounter unforeseen

37:03edge cases or when there are failures in that complex human machine interaction the trust issues arising

37:09from those events are profound they're enduring and they influence how society perceives ai across all applications

37:16not just in cars and they definitely fuel those calls for clearer liability frameworks and much more

37:22rigorous independent testing before deployment and circling back to the markets we also can't

37:26ignore those dynamics we observed with the crypto ai tokens and their pump cycles yeah worth reiterating

37:31that we touched on it but it really bears repeating the sentiment around ai related news whether it's

37:36amazing breakthroughs or worrying controversies it directly drives these cycles of hype and fear in the crypto ai token

37:42space the market sensitivity to these narratives is just undeniable makes them highly susceptible to

37:48these rapid really volatile swings based on sometimes a little more than a headline or a tweet and this

37:54sensitivity it's something we can track almost in real time like we discussed market insights from

37:59firms like massari or glass node consistently show how these tokens are often less driven by traditional

38:06financial metrics like earnings or user growth right and more by the simple ebb and flow of public

38:12perception and news headlines about ai in general a positive announcement from open ai or google or

38:19nvidia can send these tokens soaring purely on speculative fervor and fomo that fear of missing out and the

38:25opposite is true too exactly negative reports like concerns about ai jailbreaks or new regulatory proposals can lead to

38:33really sharp corrections as investors quickly try to de-risk it makes them highly speculative assets often with those

38:39smaller market caps amplifying the volatility turning them into this unique real-time barometer for

38:44broader ai sentiment so the key takeaway then from looking at all these diverse incidents from ai art

38:50fights to autonomous vehicle tragedies to these volatile crypto market dynamics it's all connected isn't it

38:56it seems to be the takeaway is that having a holistic understanding is just crucial if we're going to

39:01responsibly integrate ai into our future especially within web3 yeah you can't look at it in silos no it's not

39:08enough to look at ai as just a singular isolated technology its challenges its implications they

39:14ripple across so many different sectors demanding a coordinated really thoughtful approach one that

39:20considers the technological aspects the legal ones the ethical dimensions and the market dynamics all at

39:25the same time exactly it's complex okay so let's try and bring it all together now yeah our deep dive today

39:32it's taken us through the frankly shocking reality of ai's accidental jailbreaks and their tragic real

39:39world consequences reminding us that even unintended flaws can have these profound human costs yeah it's

39:45sobering we've explored how these incidents aren't just tech glitches they are significant challenges to

39:50public trust rapidly shifting that narrative around ai from just pure promise to much more cautious concern

39:56that shift feels palpable now and this shift in turn is fueling a critical need for

40:01robust regulation yeah in ai yes but also by extension in the crypto space which governments often seem

40:09to view through that same lens of unregulated frontier technology the linkage is becoming clearer and finally

40:15we've discussed the profound implications for investors for traders for the entire web3 ecosystem

40:21from token volatility driven by headlines to fundamental questions about the operational models

40:28of ai powered crypto projects yeah it seems clear ai is an incredibly powerful tool one that brings immense

40:35potential no doubt but it also demands really careful oversight and a deep understanding of its potential

40:41unintended consequences i think if we connect this to the bigger picture what we're really witnessing here

40:46is well it's the growing pains isn't it the growing pains of a truly transformative technology ai is moving at such an

40:53unprecedented pace and as it intertwines more and more deeply with our financial systems our personal

40:58lives even our physical safety the stakes just become incredibly high they really do and the key

41:03insight here for me at least isn't just that ai needs regulation we knew that it's that the unintended

41:09human tragedy stemming from these accidental ai failures yeah that is becoming the most powerful and maybe

41:15previously overlooked catalyst pushing crypto into the regulatory spotlight too ah interesting so the ai failures

41:22accelerate crypto regulation i think so we're seeing how ai's dark side these unexpected harms

41:28is forcing a reckoning not just for the big tech giants developing the ai but for the entire decentralized finance

41:34landscape that wants to use the ai it's pushing that regulatory conversation forward in ways that maybe even the most

41:41aggressive regulators couldn't achieve just by focusing on crypto alone wow that's a powerful connection it

41:47feels like a critical moment yeah a moment where innovation and responsibility absolutely must find

41:51some common ground and our understanding of that balance our ability to implement effective safeguards

41:57without just stifling progress completely that's going to shape the future of this technology for generations

42:02so here's the final thought to leave you with as ai continues to weave itself into our financial

42:07systems our daily lives bringing both this immense promise and these unforeseen sometimes scary risks

42:15how do we collectively balance that relentless drive for innovation with the absolute necessity of safety

42:21and ethical deployment the billion dollar question it really is and maybe drilling down a bit further

42:27what role do you see decentralization transparent blockchain solutions playing in actually auditing and securing

42:33the future of ar ensuring its power genuinely serves humanity responsibly can tech help police tech yeah it's a

42:40question that goes way beyond just the technology doesn't it it touches on ethics governance trust and

42:45ultimately our shared future lots to think about

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