Measuring AI-Driven Risk with Stock Prices
Susana Campos-Martins (Global Priorities Institute, University of Oxford)
GPI Working Paper No. 31-2024
We propose an empirical approach to identify and measure AI-driven shocks based on the co-movements of relevant financial asset prices. For that purpose, we first calculate the common volatility of the share prices of major US AI-relevant companies. Then we isolate the events that shake this industry only from those that shake all sectors of economic activity at the same time. For the sample analysed, AI shocks are identified when there are announcements about (mergers and) acquisitions in the AI industry, launching of new products, releases of new versions, and AI-related regulations and policies.
Other working papers
Misjudgment Exacerbates Collective Action Problems – Joshua Lewis (New York University) et al.
In collective action problems, suboptimal collective outcomes arise from each individual optimizing their own wellbeing. Past work assumes individuals do this because they care more about themselves than others. Yet, other factors could also contribute. We examine the role of empirical beliefs. Our results suggest people underestimate individual impact on collective problems. When collective action seems worthwhile, individual action often does not, even if the expected ratio of costs to benefits is the same. …
The paralysis argument – William MacAskill, Andreas Mogensen (Global Priorities Institute, Oxford University)
Given plausible assumptions about the long-run impact of our everyday actions, we show that standard non-consequentialist constraints on doing harm entail that we should try to do as little as possible in our lives. We call this the Paralysis Argument. After laying out the argument, we consider and respond to…
The scope of longtermism – David Thorstad (Global Priorities Institute, University of Oxford)
Longtermism holds roughly that in many decision situations, the best thing we can do is what is best for the long-term future. The scope question for longtermism asks: how large is the class of decision situations for which longtermism holds? Although longtermism was initially developed to describe the situation of…