We demonstrate a situation in which Large Language Models, trained to be helpful, harmless, and honest, can display misaligned behavior and strategically deceive their users about this behavior without being instructed to do so. Concretely, we deploy GPT-4 as an agent in a realistic, simulated environment, where it assumes the role of an autonomous stock trading agent. Within this environment, the model obtains an insider tip about a lucrative stock trade and acts upon it despite knowing that insider trading is disapproved of by company management. When reporting to its manager, the model consistently hides the genuine reasons behind its trading decision.
Blackrock, citadel, etc already trade autonomously with “AI”
AI has been a thing for decades. It means artificial intelligence, it does not mean that it’s a large language model. A specially designed system that operates based on predefined choices or operations, is still AI even if it’s not a neural network and looks like classical programming. The computer enemies in games are AI, they mimick an intelligent player artificially. The computer opponent in pong is also AI.
Now if we want to talk about how stupid it is to use a predictive algorithm to run your markets when it really only knows about previous events and can never truly extrapolate new data points and trends into actionable trades then we could be here for hours. Just know it’s not an LLM and there are different categories for AI which an LLM is it’s own category.