Tuesday, September 15, 2026

What In the World Should We Do About AI?

By Todd Sheets, Investment Banker, Economist, Author of 2008: What Really Happened


Doomsday Predictions

This past week, a 27-year-old researcher at Anthropic quit his job in protest over fear that leading AI companies aren’t doing enough to contain the risks of their rapidly emerging frontier models.  After his departure, a senior executive at the company seconded his concerns and added that he sees a 10% chance AI will wipe out mankind.

Within a short time, the on-line post from the young researcher went viral and sparked a fire in the political tinderbox that had begun to form around AI.  Anthropic’s CEO, Dario Amodei followed up by recommending new global AI regulations to curtail its development.  Sam Altman, the CEO overseeing Chat GPT publicly agreed with these recommendations.

Regulatory Capture

President Trump’s former AI Czar David Sacks has long accused Mr. Amodei of promoting a narrative designed to help Anthropic achieve what’s called Regulatory Capture, which occurs when large companies work with government to limit competition.  Indeed, Anthropic and other frontier model developers would benefit substantially from curtailing the growth of much cheaper open weight models that cost around 90% less to operate and that are already sufficient for a significant share of AI use cases. 

The AI Genie and China

As Sacks and others have also pointed out, the AI genie is out of the bottle and, all protestations to the contrary, there will be no containing it.  China (and other foreign countries) will only use the idea of a global regulatory body to try and game the system so that they might catch up and leap frog us.  Given the economic and military stakes at play this is an enormous risk, one that is quite likely substantially higher than other doomsday scenarios. 

President Trump, who shares this view, has boiled it all down to: “Whoever wins AI wins”, and he’s right.

A Head Spinning Issue, even for Elon

No less an authority than Elon Musk has been on all sides of this issue.  He co-founded Open AI as a non-profit to help guard against potential risks and later sued its CEO (Sam Altman) to prevent it from transitioning to a private company.  Then, just this past July, Musk gave an interview to The Economist where he said AI is developing too quickly to be contained, in all likelihood it will be enormously beneficial to mankind and, therefore, we might as well just sit back and enjoy the ride.

But then this past week, Mr. Musk seemed to do another about face when he backed Amodei and Altman’s calls to curtail AI development.

What should we do?

My thinking on AI has not changed since I first wrote about it. 

First of all, don’t panic.  Many of the doomsayers are the same people who, not that long ago, were predicting that AI would soon create massive unemployment.  So far, the evidence shows that just the opposite is happening.

Further, statements from industry insiders that put a 10% probability on total extinction are totally irresponsible.  They have no idea how this will actually play out, and their probability estimates only add a false sense of certainty to their claims.

The fact is, the Genie is out of the AI bottle and the potential economic and military benefits are so enormous it will not be put back in.  Ceding leadership to China or any other foreign country or actor would be a huge mistake, one that could materially alter our future.

Many have talked about a regulatory body of experts to oversee and control AI – but this is a false promise.  The only people with the knowledge and expertise needed to oversee this fast developing and cutting edge technology are the leaders at the AI companies themselves.  In fact, no one has more to gain or lose, than these leaders.  Whether they like it or not, it is their responsibility to develop safe programs that benefit their clients (who are ultimately paying for its development) and to develop the systems that can protect their products and their clients from hostile systems created by bad actors. 

If they don’t think they are up to this job, they should cede control of their companies to leaders who are.

AI companies may well need to pause development of certain models as they take the time to create protections for their current and prospective clients.  But ceding this authority to ill-advised political bodies would inevitably lead to either uninformed regulations with dangerous and unintended consequences, regulatory capture, or systems that are intentionally gamed by foreign actors seeking their own benefit.  Further, there is the risk that too much government control will lead to uniform AI models trained with biases that reflect the views of the regime in power, just as we saw during Covid and as we see on a daily basis in authoritarian countries.

Modern history is filled with failed doomsday prophecies ranging from nuclear annihilation, to warnings that an inevitable population bomb would lead to mass starvations, to fears that Y2K would cause computer dysfunctions that would cause to airplanes to fall from the sky, and that global warming would doom mankind.  Each of these theories was supported by no shortage of highly educated “experts” and other influential observers. 

For nearly 6 million years now, mankind and our ancestors have not only managed to survive, but to thrive.  Today’s living standards are far superior to what any prior generation has known and there is every reason to believe that AI will help produce the next major leap forward in human flourishing. 

Put simply: all of human history is on our side.

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