AI risks broaden from bubble fears to existential threats at Singapore forums

Singaporean Foreign Minister Vivian Balakrishnan stated at the Milken Institute Asia Summit that the risk of losing control over autonomous AI agents is a genuine concern. He noted that the possibility of state and non-state actors using AI to create new weapons, particularly in chemistry, biology, or weapons of mass destruction, is also very real.

This sentiment was echoed by Kiran Mazumdar-Shaw, founder and chairperson of Indian biopharmaceutical firm Biocon, who spoke at the Forbes Global CEO Conference. She warned that while AI can be a force for good, malicious actors could exploit it to design novel viruses or pathogens, highlighting bioterrorism as a significant existential threat and calling for robust governance measures.

Last month, leading US AI laboratories issued a rare joint statement urging a slowdown in AI development, citing concerns that the technology could soon surpass human control. Anthropic, the maker of the Claude AI model, reportedly plans to inform potential investors during its IPO process about the catastrophic or existential risks that advanced AI could pose to humanity.

Despite these growing concerns, investor faith in the AI sector has continued to support stock markets, even as higher energy prices and bond market volatility have driven borrowing costs to multi-decade highs in major economies. However, questions persist about the sustainability of the AI rally and its broader market implications.

Rohit Sipahimalani, chief investment officer at Singaporean state investor Temasek, commented at the Milken Institute event that issues such as safety concerns, regulatory hurdles, or a lack of sufficient return on investment for end-users could unwind the AI narrative, posing risks to the market. He described the AI narrative as currently very strong but a significant risk.

Bridgewater Associates founder Ray Dalio expressed a more bearish view, characterizing the AI sector as a 'classic bubble.' He suggested that while the technology itself may be impressive, its investment potential is a separate matter. Dalio noted that rising interest rates have not yet significantly impacted other markets, but he believes a bursting of the AI bubble is imminent as higher rates begin to take hold.