The Agentic Allegiance Conundrum

The podcast explores the "agentic allegiance conundrum," questioning whether AI agents should act as ruthless mercenaries focused solely on maximizing their owner's profit or as citizens prioritizing market health and social guardrails. The discussion highlights the tension between individual liberty and potential collective disaster, using the 2010 flash crash as an example of how individually rational actions by algorithms can destabilize the entire market. The hosts delve into the legal implications, contrasting the fiduciary duty of loyalty to a client with the potential for algorithmic collusion and unfair outcomes if agents are not constrained. They also examine environmental considerations, noting the conflict between short-term profit maximization and long-term sustainability, ultimately questioning who should define the rules and values hard-coded into AI agents.