00:00So how will these ripples and this row over AI affect the markets in the longer term?
00:05Zhang Xiewei is President and Chief Economist at Pinpoint Asset Management in Hong Kong.
00:11Yeah, I think the market is a bit worried about, you know, these news flows,
00:16which implies maybe the AI boom will, the pace will slow down, right?
00:22So I think the concern is real and I think it's justified
00:26because the risk involved is indeed very high.
00:30So I think there will be some discussion among the major players and the government
00:37and investment growth may not be as fast as the market expected.
00:43So, you know, there's still a lot of details need to be worked out.
00:47But I think at this moment, yes, I'm also a bit cautious about the outlook.
00:52Amidai and Altman helped build all of this technology.
00:56with very little regulation.
00:58You know, now they're among those warning about where AI could be heading.
01:04Is this really about safety or just slowing things down
01:08also suit the companies who are out in front?
01:12Yeah, I know there's currently a debate whether, you know,
01:17there are different incentives, right, motivations for the proposals.
01:23But, you know, when I look at it, I still think that these risks are real
01:28and we already have cases where the AI tools caused troubles, disruptions, right?
01:37So hacking other websites and so on.
01:40So I think the risk is real.
01:43In any case, we need to address it.
01:45And I think it's good that actually the major players are coming together
01:50and hopefully the regulators, the government, will also play a role to contend that risk.
01:55Well, talking about them coming together,
01:57President Xi Jinping is calling for closer AI cooperation,
02:01certainly amongst BRICS countries, with China proposing an open source AI community.
02:07Does that point to a more connected AI world, a more fragmented world?
02:12Could it actually open up new markets?
02:16I think it's very important to have coordination among the governments around the world
02:24because at this stage, I think for a lot of the countries,
02:28particularly developing countries, potentially at risk
02:32because their, you know, institutions, you know, corporates, banks,
02:37they may not have the technical capacity to deal with, you know, the, say, cyber attack risks, right?
02:46These kind of things that could come from, you know, more powerful AI tools.
02:51So I think coordination is certainly important and I think safeguards that can be conducted on the national level
03:02and through international organizations would be more helpful than, you know, individual countries going by themselves.
03:08But we are seeing very different approaches to AI safety emerging from the US, China and Europe.
03:15It's all different.
03:15Can investors really price that regulatory uncertainty into the market?
03:22I think the investors are increasingly worried that this AI capability will bring risk
03:30and regulations, safeguards are actually behind the curve.
03:34So I think some discussion about safeguards on the national level across governments is helpful.
03:42I think it's better than, you know, no collaboration and then we just wait for some accidents to happen
03:49and causing damage and, you know, then the regulators come in to crack down on this AI sector aggressively.
03:57That would, you know, cause probably even more volatility and more damage.
04:01I think it's better to take preemptive action and collaborate across these governments.
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