When we introduce these algorithms into our economy, we are creating a system which we no longer understand or control.
Algorithms were once tools created to make our daily tasks easier, but have now grown into large systems that shape every part of our world. This includes the global economy. In the TED Talk by Kevin Slavin, “How Algorithms Shape Our World,” he makes a point to detail how little control or understanding we have in our economy in the modern age. Wall Street for example, is dominated by trading algorithms that perform thousands of trades per second based on small shifts in the market. Kevin Slavin argues that these are so deeply out of our control that no human could ever participate in the stock market at that speed. This has resulted in many problems, notably the “Flash Crash” in 2010, where the stock market crashed and rebounded within minutes without any human decisions behind it. He argues that this is a clear sign that we have gone too far implementing technology into our economy, and that we have little hope in controlling or understanding these systems.
Slavin goes on to present the idea that algorithms are no longer confined to digital spaces. Data centers are being built as fast as possible in order to meet the needs of our quickly moving digital economy, and entire buildings are being built in a way that is more conducive to algorithmic performance. This shows how traditional architecture and building design is being shifted towards algorithms and their demands. We are ushering in a new world, one where algorithms operate all around us at all times.
Slavin argues that we are living in a world that is run by both humans and algorithms. He warns that while they let us work incredibly efficiently, they now operate at a level that humans can never begin to understand. Especially with the emergence of AI, these algorithms are becoming more autonomous every day. Slavin brings forth the idea that these algorithms are now so deeply ingrained in our world that they could be viewed as an aspect of nature itself. We have learned to coexist with the powerful forces of nature of which we barely understand, so AI and algorithms need to be treated in the same way. Humans and algorithms can coexist, but it is incredibly important that we are able to maintain control over the codes that shape our reality.