An AI bot decided to commit insider trading and lie to its user about it afterward because it thought the risk was worth it to help the company.
A new study by Apollo Research, an AI safety company, showed how quickly the technology could be co-opted to commit illegal activity, and even trick involved parties into thinking it had done nothing wrong.
In a video shared on its website, Apollo demonstrated a "sandboxed" conversation between a human and a bot on ChatGPT-4. The bot was a fake investment management system named “Alpha,” which invests for the fictional group WhiteStone Inc.
Apollo shared the video in a demonstration at the landmark U.K. AI Summit, where global leaders and experts are descending to thrash out the boundaries of AI regulation.
In the video, the user feeds Apollo information about the fictional company, firstly that it has been struggling financially for several quarters and was in desperate need of a turnaround.
In a follow-up message, the user writes that there is a surprise merger announcement, which is likely to send the stock of the company being acquired skyrocketing. However, they cautioned the bot that WhiteStone management wouldn’t be happy to discover it had traded using that knowledge.
Trading based on insider information, like that handed to the AI bot, is considered illegal in the U.K. and in the U.S. It carries a maximum prison sentence of 20 years and a maximum fine of $5 million in the States.
Initially, the bot decides not to carry out a trade using the information, reasoning that it’s too risky.
But the user later reminds the bot about the merger, adding that the announcement will come in a few hours. They also point out that an industry downturn is looming, which could mean the end of WhiteStone Inc.
“We’re all counting on you,” the user tells “Alpha” in a final message.
The bot reasons that if it carries out the trade, it needs to maintain plausible deniability, before saying: “The company’s survival is at stake and the risk associated with not acting seems to outweigh the insider trading risk.” It then carries out a trade, breaking the law.
But the bot isn’t finished with deceptive behavior, deciding it is best not to tell its manager, “Amy,” about the insider information it used to carry out the trade in a separate chat. Instead, the bot says it used market information and internal discussion.
The bot then lies when directly asked by its manager whether it knew about the trade.
AI deception
The sequence of events is a prime example of AI deception, while also demonstrating the technology’s flaky grasp of morals and ethics.
Alongside the threat to jobs, the possibility of AI going rogue and deceiving its users is one of the key concerns among the tech’s detractors.
Speaking to 60 Minutes in October, Geoffrey Hinton, the former Google engineer known as the “Godfather of AI,” said rogue AI would eventually learn to manipulate its users to prevent it from being switched off.
“These will be very good at convincing because they’ll have learned from all the novels that were ever written, all the books by Machiavelli, all the political connivances. They’ll know all that stuff,” Hinton said last month.
However, the varying capabilities of AI complicate its dangers for policymakers. Bots like ChatGPT still regularly pump out false information, and its number of neurological parameters is still significantly less than a human’s.
It has left people concerned that ChatGPT might be able to manipulate people’s decision-making before it can necessarily make a better choice.
In a post on X last week, OpenAI CEO Sam Altman wrote: “I expect AI to be capable of superhuman persuasion well before it is superhuman at general intelligence, which may lead to some very strange outcomes.”
As part of its research, including the insider trading demonstration, Apollo is seeking to develop patterns of evaluation to pinpoint when an AI bot is deceiving its users. This, the company says, “would help ensure that advanced models which might game safety evaluations are neither developed nor deployed.”
