Artificial Intelligence

[ProfitScout]

$AITX's Subsidiary, Robotic Assistance Devices, Announces Planning for 1000 RIO Version 4 Production Run

RAD also Considering Expanding Manufacturing Capacity to Accommodate 2000 ROSA Units in 2024

Detroit, Michigan, Sept. 28, 2023 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc., (the "Company") (OTCPK:AITX), a global leader in AI-driven security and productivity solutions along with its wholly owned subsidiary, Robotic Assistance Devices, Inc. (RAD), today announced plans related to the development and production of its innovative RIO(TM) solar-powered security tower solutions.

Specifically, the Company noted that it has begun an approximately 5-month effort to complete full design upgrades for RIO version 4.x with prototypes and supply chain coordination. These efforts are expected to yield the most highly designed RAD solution with the most comprehensive input from related supply chain vendors. It is expected that RIO version 4.x production will begin at the beginning of AITX's fiscal year, March 2024.

"Planning this size of an endeavor, and allowing sufficient time enables us to work through the supply chain to find cost savings on parts and manufacturing," said Steve Reinharz, CEO of AITX and RAD. "Furthermore, it allows completion of improvements to ROSA that will provide further cost and production savings. The goals of these efforts are to solidify RAD's lead in the solar-powered tower space by offering unmatched functionality at an unmatched price. This is the first existing market we are targeting to dominate."

"ROSA's forthcoming enhancements, to be in version 4.0, are the culmination of RAD's Autonomous Remote Solutions concepts that we have pioneered over the years," commented Ioan Pop, Vice President of Research and Development at RAD. "We've made great strides in design efficiencies, reduction in power consumption, and vast improvements and enhancements to our AI analytics."

Expect further details to be disclosed at the AITX Investor Town Hall and RAD Technology Reveal to be held on November 3rd. Those interested in attending the event may register here.

Beginning in the first half of 2024 and based on expected sales demand, RAD plans to scale RIO units' production to approximately 100 units per month.

"RIO's expected sales success gives us a new challenge at the REX, manufacturing space," said Luke Ross, Vice President of Production at RAD. "We plan on continuing to invest in the REX, building ROSA, AVA, TOM and RADDOG, and other electronics assembly and testing while evaluating an additional location for RIO assembly and QC. If we're planning for 100 units a month, we will simply need more space."

"This is not simply about expansion and innovation," said Mark Folmer, CPP, PSP, FSyI, President of RAD. "It's also about steering the Company on the path towards becoming cash flow positive, a pivotal milestone underscoring our commitment to delivering shareholder value, consistent growth and industry leadership."

Sitting atop a standard RIO 360 configuration are dual ROSA units. ROSA is a multiple award-winning, compact, self-contained, portable, security and communication solution that can be installed and activated in about 15 minutes. ROSA's AI-driven security analytics include human, firearm, vehicle detection, license plate recognition, responsive digital signage and audio messaging, and complete integration with RAD's software suite notification and autonomous response library. Two-way communication is optimized for cellular, including live video from ROSA's high-resolution, full-color, always-on cameras. RAD has published four Case Studies detailing how ROSA has helped eliminate instances of theft, trespassing and loitering at multi-family communities, car rental locations and construction sites across the country.

AITX, through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD solutions are specifically designed to provide cost savings to businesses of between 35%-80% when compared to the industry's existing and costly manned security guarding and monitoring model. RAD delivers these tremendous cost savings via a suite of stationary and mobile robotic solutions that complement, and at times, directly replace the need for human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.

RAD has a prospective sales pipeline of over 35 Fortune 500 companies and numerous other client opportunities. RAD expects to continue to attract new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time.

About Artificial Intelligence Technology Solutions (AITX)

AITX is an innovator in the delivery of artificial intelligence-based solutions that empower organizations to gain new insight, solve complex challenges and fuel new business ideas. Through its next-generation robotic product offerings, AITX's RAD, RAD-M and RAD-G companies help organizations streamline operations, increase ROI, and strengthen business. AITX technology improves the simplicity and economics of patrolling and guard services and allows experienced personnel to focus on more strategic tasks. Customers augment the capabilities of existing staff and gain higher levels of situational awareness, all at drastically reduced cost. AITX solutions are well suited for use in multiple industries such as enterprises, government, transportation, critical infrastructure, education, and healthcare. To learn more, visit http://www.aitx.ai, http://www.radsecurity.com, http://www.stevereinharz.com, http://www.radgroup.ai, http://www.raddog.ai, and http://www.radlightmyway.com, or follow Steve Reinharz on Twitter @SteveReinharz.

CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS

The information contained in this publication does not constitute an offer to sell or solicit an offer to buy securities of Artificial Intelligence Technology Solutions, Inc. (the "Company"). This publication contains forward-looking statements, which are not guarantees of future performance and may involve subjective judgment and analysis. As such, there are no assurances that the Company will meet its expectations with respect to its future sales volume or becoming cash flow positive. The information provided herein is believed to be accurate and reliable, however the Company makes no representations or warranties, expressed or implied, as to its accuracy or completeness. The Company has no obligation to provide the recipient with additional updated information. No information in this publication should be interpreted as any indication whatsoever of the Company's future revenues, results of operations, or stock price.

###

Steve Reinharz

949-636-7060

@SteveReinharz

[ProfitScout]

$SMME: SmartMetric Sees the Interfacing of In Device Embedded AI With Intermitant Remote AI Interfacing Will Bring a Massive Leap in Data Security for Its Biometric Credit Cards

NEW YORK--(BUSINESS WIRE)-- SmartMetric, Inc. (OTC: SMME) embedding AI (artificial intelligence) in hardware that then interfaces with powerful remote AI systems will allow for a massive increase in device security.

“AI interfaced with remote AI processing will allow remote devices such as credit cards to tap into the power of AI to provide for lightening fast and complex instant processing security functions such as identifying malicious hacking intrusions along the payment continuum,” said SmartMetric’s President and CEO, Chaya Hendrick.

The advantage of AI as an embedded in the device, hardware-based security is that it provides a greater level of security than a remote centralized processor. A central computer or even a smartphone that is always connected to a network wirelessly, provides many opportunity points for malicious intrusion. A device such as a credit card that is not connected all the time to a network is without question far more secure. “Always connected means always hackable,” said Chaya Hendrick.

“Intermittent remote processor connectivity greatly impairs opportunities for data thieves to intercept and collect data. Adding to this AI based enhanced data security with embedded on the card and interfaced intermittently with a remote central AI enhanced security platform, will provide a huge leap in card data flow security across the payment network,” said Chaya Hendrick.

AI in device and centralized computing, allows for a staggering increase in variable analysis and algorithmic computations that will be able to be used for instance to detect malicous data capture attempts while at the same time providing a massively enhanced level of encryption. Especially if this encryption is paired with on device AI enhanced encryption with payments processing AI enhanced remote systems.

“Looking into the future, we are going to see amazing gains in data security. We will see almost unthinkable advances in particular when we marry AI with Quantum computing. The marriage of advanced software with advanced computing is going to change the world of data in more 'good' ways then we can imagine,” said Chaya Hendrick.

“SmartMetric, while it is about to release its advanced biometric fingerprint secured and activated credit card, is working on adding embedded AI as a hardware feature inside of its intelligent biometric card platform. Providing for a quantum leap forward in both card data security and payment network data security along with its ultra secure credit card that is secured by the users’ biometrics,” said Chaya Hendrick.

The SmartMetric biometric fingerprint recognition technology built inside of the credit and debit card uses embedded biometric technology to positively recognize the card holder and then only after a positive fingerprint recognition, turn on the cards EMV contact and contactless payments chip.

Market research has shown that 70% of current credit card users are willing to pay $70.00 for a biometric secured credit card. The single largest motivation is wanting to feel more secure. The same research showed that nearly 70% of existing 100’s of millions of credit card users would prefer to use a biometric credit card.

To view the SmartMetric Biometric Card please follow this link - Video of the SmartMetric Biometric Card. To view the company website: www.smartmetric.com

Safe Harbor Statement: Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Also such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, if we are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Investors and security holders are urged to carefully review and consider each of SmartMetric Inc. public filings with the SEC, including but not limited to, if applicable, Annual Reports on Form 10-K, proxy statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q.

https://cts.businesswire.com/ct/CT?id=bwnews&sty=20230629355476r1&sid=acqr8&distro=nx&lang=en
View source version on businesswire.com: https://www.businesswire.com/news/home/20230629355476/en/

SmartMetric, Inc.
Chaya Hendrick
Tel: [phone] Mobile: [phone] Pacific Time
[e-mail]
http://www.smartmetric.com

Source: SmartMetric, Inc.

[StockpickerCAPC]

Artificial Solutions International AB (publ) (ASAI.ST)

"AI in Europe headquartered in Stockholm, Sweden."

https://www.teneo.ai/
https://finance.yahoo.com/quote/ASAI.ST?p=ASAI.ST&.tsrc=fin-srch
https://investorshub.advfn.com/Artificial-Solutions-International-AB-ASAIF-39215

Artificial Solutions International AB (publ) (ASAI.ST)
SE 0018397184 Shares Outstanding 102.43 Million (as of January 30, 2023)
https://www.nasdaqomxnordic.com/aktier/microsite?Instrument=SSE145803&name=Artificial%20Solutions%20Intern.&ISIN=SE0018397184

About
https://www.teneo.ai/about-us

Group Structure

Artificial Solutions® International AB was founded in 2001, is listed on the Nasdaq First North Growth
Market in Stockholm with the ticker ASAI, is headquartered in Stockholm, Sweden and is a leader in AI.
Our platform, Teneo, is used by millions of people across hundreds of private and public sector SaaS
deployments worldwide. Teneo.ai, Teneo and OpenQuestion are registered brands by Artificial Solutions.

Our vision is a world without queues, without keypad navigation, with instant service. We’re proud to
transform the customer experience for hundreds of millions of consumers around the world, powering
millions of interactions every day across our enterprise client base. Our customers replace traditional
phone keypad-based menus with welcoming, short, and precise full sentences - OpenQuestion.
The solution is based on our award-winning SaaS-platform Teneo. Which runs across 86 languages and
dialects and is fully integrated with call center and contact center systems.

Integrations with Genesys Cloud CX, Google Cloud, Microsoft and OpenAI (ChatGPT), demonstrate
our commitment to driving innovation in Conversational IVR for the benefit of enterprise contact center
operators around the world. Through OpenQuestion, businesses can effortlessly connect Generative AI
and Large Language Model functionality to their existing set up; no complications just instant results.

Co. Presentation: https://www.investors.artificial-solutions.com/wp-content/uploads/ASAI_Q1_2023_Report_PPT_ENG-1.pdf
Annual Report 2022: https://investors.artificial-solutions.com/wp-content/uploads/2023/Annual_Report_2022_ENG_FINAL.pdf
Homepage: https://www.teneo.ai/
Contact: https://www.teneo.ai/contact [e-mail]
Newsroom: https://www.investors.artificial-solutions.com/press-releases
Blog: https://www.teneo.ai/blog
Analysts: https://www.investors.artificial-solutions.com/analysts
Investor Relations: https://www.investors.artificial-solutions.com/
Fredrik Törgren, CFO, [phone] [e-mail]
Financial Reports: https://www.investors.artificial-solutions.com/financial-reports
LinkedIn: https://www.linkedin.com/company/teneo-ai/
Twitter: https://twitter.com/teneo_ai
Youtube: https://www.youtube.com/@teneo_ai
Facebook: https://www.facebook.com/teneoai
Zoominfo: https://www.zoominfo.com/c/artificial-solutions-international-ab/351349812

Solutions
OpenQuestion - IVR for Smart Call Routing
https://www.teneo.ai/solutions/openquestion

Successes
- Artificial Intelligence in Call Centers
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172028376
- Customer Experience With Ai Telephony Self Service
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172173924
- Decreasing Call Transfers and Improving Customer Experience
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172175077
- The Impact of Generative AI on Customer Service
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172164077

Teneo.ai - Scalability, Simplicity, Experience
https://www.teneo.ai/product/why-teneo
https://www.youtube.com/@teneo_ai/videos

Successes
- Teneo.ai joins Google Cloud Partner Advantage Program and launches new Conversational
IVR plugin for Google Cloud
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172029053
- Teneo.ai Launches Conversational IVR Plugin for Amazon Connect
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172163992

Explanations of technical terms
Interactive Voice Response (IVR) systems
https://www.teneo.ai/blog/what-is-conversational-ivr
https://www.teneo.ai/blog/interactive-voice-response-ivr

Management
https://www.investors.artificial-solutions.com/corporate-governance#1548419141136-53469b4f-1295

Artificial Solutions International AB has lots of growth potential.
This long-term strategy will pay off for owners and shareholders.

[ProfitScout]

$AITX's Subsidiary, Robotic Assistance Devices, Books Multiple Orders, Totaling 19 Security Devices from Leading National Dealer

Detroit, Michigan, June 20, 2023 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc., (the "Company") (OTCPK:AITX), a global leader in AI-driven security and productivity solutions along with its wholly owned subsidiary, Robotic Assistance Devices, Inc. (RAD), today announced that it has booked 2 orders for a variety of security solutions. These orders are being facilitated through one of RAD's largest authorized dealers.

The 2 orders consist of a total of 11 ROSA(TM) security devices, 6 AVA(TM) access control solutions, and 2 SCOT(TM) towers. Seventeen of these units (9 ROSAs, 6 AVAs, 2 SCOTs) will be deployed at one client location in the Midwest. The 2 ROSA units will be deployed at a large east coast parking structure, with the task of autonomously deterring trespassing and vagrancy at unsecured entrances.

Although not named due to confidentiality agreements, the Company indicated that the end-user for the 17 devices is a Fortune 500-ranked, global brewing company. RAD and the dealer had been cultivating this opportunity since early 2022.

"This is the type of sales opportunity we have built this business to support," said Steve Reinharz, CEO of AITX and RAD. "A big national dealer, moving multiple units, to top ranked corporate clients who are looking to improve their security profile and save money. This one opportunity is expected to scale even bigger and broader."

According to the Company, the client is using this opportunity to reduce their reliance on expensive manned guarding options and utilize RAD's security devices throughout their corporate campus. The ROSA units will line the walkways of the property, with the 2 SCOT towers strategically placed along key routes, providing emergency call options. The client's 6 lobbies will each deploy an AVA device to help manage employee and visitor check-ins and verification procedures, replacing the tasks of a single guard in each of the lobbies. Once all devices are deployed and activated it is planned that this client will subscribe to RAD Light My Way to further provide their employees with enhanced security and safety measures.

Reinharz added, "This amazing dealer has indicated that they are about to significantly accelerate their adoption and proactive promotion of RAD solutions to their impressive client base. We've been supporting them since the very beginning, and I feel it's about to pay off in a big way."

"Our sales team has been working to secure this opportunity for an incredibly long time," said Mark Folmer, CPP, PSP, FSyI, President of RAD. "That's the nature of the beast when presenting new, disruptive technologies to large organizations, especially when large cost savings and reductions in workforce are on the table. Our team has learned to persevere and continue driving home the value and performance of what we've got. Eventually, the clients find their way to RAD."

The Company stated that all units are expected to be shipped and deployed later this summer, upon final processing of the received orders.

ROSA is a multiple award-winning, compact, self-contained, portable, security and communication solution that can be installed and activated in about 15 minutes. Like other RAD solutions, it only requires power as it includes all necessary communications hardware. ROSA's AI-driven security analytics include human, firearm, vehicle detection, license plate recognition, responsive digital signage and audio messaging, and complete integration with RAD's software suite notification and autonomous response library. Two-way communication is optimized for cellular, including live video from ROSA's dual high-resolution, full-color, always-on cameras. RAD has published three Case Studies detailing how ROSA has helped eliminate instances of theft, trespassing and loitering at car rental locations and construction sites across the country.

AVA (Autonomous Verified Access) is a compact and stanchion mountable unit that provides an edge-to-edge 180° field of vision with advanced access control over gates and other controlled points of entry. AVA takes full advantage of the RAD Software Suite providing an ideal solution for logistics and distribution centers, storage yards, parking structures and lots, corporate campuses; anywhere that increased visibility is needed at a fraction of the cost. At ISC West 2022, AVA was named a winner of the SIA New Products and Solutions Awards in the category of Access Control Software, Hardware, Devices and Peripherals.

AITX, through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD solutions are specifically designed to provide cost savings to businesses of between 35%-80% when compared to the industry's existing and costly manned security guarding and monitoring model. RAD delivers this tremendous cost savings via a suite of stationary and mobile robotic solutions that complement, and at times, directly replace the need for human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.

RAD has a prospective sales pipeline of over 35 Fortune 500 companies and numerous other client opportunities. RAD expects to continue to attract new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time.

CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS

The information contained in this publication does not constitute an offer to sell or solicit an offer to buy securities of Artificial Intelligence Technology Solutions, Inc. (the "Company"). This publication contains forward-looking statements, which are not guarantees of future performance and may involve subjective judgment and analysis. The information provided herein is believed to be accurate and reliable, however the Company makes no representations or warranties, expressed or implied, as to its accuracy or completeness. The Company has no obligation to provide the recipient with additional updated information. No information in this publication should be interpreted as any indication whatsoever of the Company's future revenues, results of operations, or stock price.

About Artificial Intelligence Technology Solutions (AITX)

AITX is an innovator in the delivery of artificial intelligence-based solutions that empower organizations to gain new insight, solve complex challenges and fuel new business ideas. Through its next-generation robotic product offerings, AITX's RAD, RAD-M and RAD-G companies help organizations streamline operations, increase ROI, and strengthen business. AITX technology improves the simplicity and economics of patrolling and guard services and allows experienced personnel to focus on more strategic tasks. Customers augment the capabilities of existing staff and gain higher levels of situational awareness, all at drastically reduced cost. AITX solutions are well suited for use in multiple industries such as enterprises, government, transportation, critical infrastructure, education, and healthcare. To learn more, visit http://www.aitx.ai, http://www.radsecurity.com,http://www.stevereinharz.com, http://www.radgroup.ai, http://www.raddog.ai, and http://www.radlightmyway.com, or follow Steve Reinharz on Twitter @SteveReinharz.

###

Steve Reinharz

949-636-7060

@SteveReinharz

[gfp927z]

>>> AI: Good News for Bad Guys


BY JAMES RICKARDS

MAY 31, 2023


https://dailyreckoning.com/ai-good-news-for-bad-guys/


AI: Good News for Bad Guys

ChatGPT and artificial intelligence (AI) are all the rage right now.

In fact, AI and GPT together are almost the only drivers of positive stock market performance today.

A small group of companies with advanced capabilities in AI/GPT (Microsoft, NVIDIA, Google, Apple, and a few others) are rallying sharply on the profit and productivity potential offered by the new technology.

If the AI/GPT plays were removed from stock market indices, the remainder of the stocks would be down on a year-to-date basis. Whether this performance is a bubble or a genuine leap based on fundamentals remains to be seen.

History is filled with investing fads that fizzle out.

Still, there’s no doubt about the impact. That said, GPT has a dark side that is quickly coming to the fore. What do I mean?

Good News for Bad Guys

Malign actors can use the speed and comprehensiveness of GPT to produce fake images and content. They can then push that content into social media and mainstream channels to cause market rallies and crashes.

In other words, for market manipulators, inside traders, and geopolitical adversaries, GPT is one of the best tools ever invented. Here’s a recent case in point…

Last Monday, May 22, a story appeared on ZeroHedge, Facebook, Twitter, and several other media channels showing a large building on fire near the Pentagon along with speculation that a terrorist attack might be underway.

Stocks immediately began to sell off. Within minutes, it was realized that the building fire photo was fake (based on some windows that had an irregular instead of uniform appearance).

And indeed, the entire story was fake.

The image of the building with billowing smoke was generated by AI. Investors should get used to this type of AI-induced panic that can manipulate markets.

The AI/GPT technology is already in the hands of bad actors and they won’t stop using it just because this one fake was detected quickly.

Computer vs. Computer

Most stock trading is done by computers primed to look for keywords in breaking news. This was a case of computers selling stock based on what another computer was reporting with the use of a fake photo and fake news.

It’s computer versus computer using AI/GPT as advanced weaponry. Here’s why that’s so potentially dangerous…

Today, stock markets and other markets such as bonds and currencies can best be described as “automated automation.” What do I mean?

There are two stages in stock investing. The first is coming up with a preferred allocation among stocks, cash, bonds, etc. This stage also includes deciding how much to put in index products or exchange-traded funds (ETFs, which are a kind of mini-index) and how much active management to use.

The second stage involves the actual buy and sell decisions — when to get out, when to get in and when to go to the sidelines with safe-haven assets such as Treasury notes or gold.

What investors may not realize is the extent to which both of these decisions are now left entirely to computers. I’m not talking about automated trade matching where I’m a buyer and you’re a seller and a computer matches our orders and executes the trade. That kind of trading has been around since the 1990s.

I’m talking about computers making the portfolio allocation and buy/sell decisions in the first place, based on algorithms, with no human involvement at all. This is now the norm.

The Demise of Active Investing

Over 80% of stock trading is now automated in the form of either index funds (over 60%) or quantitative models (under 20%). This means that “active investing,” where you pick the allocation and the timing, is down to less than 20% of the market. Although even active investors receive automated execution.

In all, the amount of human “market making” in the traditional sense is down to about 5% of total trading. This trend is the result of two intellectual fallacies.

The first is the idea that “You can’t beat the market.” This drives investors to index funds that match the market. The truth is you can beat the market with good models, but it’s not easy.

The second fallacy is that the future will resemble the past over a long horizon, so “traditional” allocations of, say, 60% stocks, 30% bonds and 10% cash (with fewer stocks as you get older) will serve you well.

But Wall Street doesn’t tell you that a 50% or greater stock market crash — as happened in 1929, 2000 and 2008 — just before your retirement date will wipe you out.

But this is an even greater threat that’s rarely considered…

Shouting Fire In a Crowded Theater

In a bull market, this type of passive investing amplifies the upside as indexers pile into hot stocks like, for example, Nvidia, Google and Apple have been recently. But a small sell-off can turn into a stampede as passive investors head for the exits all at once without regard to the fundamentals of a particular stock.

It’s like shouting “Fire!” in a crowded theater. AI could issue the false alarm that sends investors scrambling for the exits.

Index funds would stampede out of stocks. Passive investors would look for active investors to “step up” and buy. The problem is there wouldn’t be any active investors left, or at least not enough to make a difference.

There would be no active investors left to risk capital by trying to catch a falling knife.

Stocks will go straight down with no bid. The market crash will be like a runaway train with no brakes. It all comes back to complexity, and the market is an example of a complex system.

One formal property of complex systems is that the size of the worst event that can happen is an exponential function of the system scale. This means that when a complex system’s scale is doubled, the systemic risk does not double; it may increase by a factor of 10 or more.

The emergence of AI-generated “fake news” can amplify these market movements.

As the technology improves, which it inevitably will, it’ll become increasingly difficult to distinguish reality from fiction. Stories like the fire near the Pentagon will become much harder to debunk.

Investors need to understand these technological developments before their portfolio holdings are badly damaged.

One thing we can be sure of is that the threat is not going away.

<<<



---

[eqinvestor]

KRKNF is a hidden gem.

You will have a hard time finding a company with a similar trajectory in financial results. One times this year's projected revenues. 13 million in projected EBITDA. REAL ORDERS from first world countries. Most importantly. completely undiscovered AI play.