Asset Classes

Free investment financial education

Language

Multilingual content from IBKR

Close Navigation
Learn more about IBKR accounts

“Human-like decisions, but better”

Posted July 17, 2024 at 10:30 am
Alexander Gunz
Heptagon Capital

This was the expression used to describe the power embedded within generative AI by the CEO and co-founder of Harmonic Security, Alastair Paterson, with whom your author caught up recently. Alastair is well-known within the industry, having previously co-founded Digital Shadows (featured in a prior 2021 Blog post). Our wide-ranging conversation over Zoom discussed everything from AI to cyber with the intention of gaining novel insights into many key future trends.

Listening to Alastair speak, it is hard not to be excited about how AI can improve outcomes. For him, “everyone [in Silicon Valley] was blown away at the start”, when Chat-GPT initially appeared. AI is “like another Industrial Revolution.” Think of it as “the start of a new era.” However, Alastair also cautioned that we are “in a bubble” and that “hype is at a crescendo.”

We have sought to reconcile these potentially opposing viewpoints in our own work (see here and here), but Alastair’s way through is a logical one: identify what the problem is and then ask the question of whether AI will genuinely be able to help solve it. For Harmonic, the use-case is very simple. Corporate data has always represented one of the biggest moats for any business, and so how to ensure that these data are not put at risk in a world of large language models is foundational. We have long argued that data have no value unless secured, stored and analysed.

AI has given businesses such as Harmonic “a new set of tools” to help solve this problem. Data protection is “a fundamental of security.” Every potential customer “gets it”, according to Alastair. Ask most Boards what their primary concern is, and while the ethics and biases inherent in some LLMs (along with their tendency still to hallucinate) may be a valid discussion point, data privacy is front of mind. While AI may, over time, allow cyber criminals not only to accelerate the speed but also the sophistication of their attacks, the improved processes that the technology can bring to businesses as part of their defence strategy should be a reason for “cautious optimism”, in Alastair’s words. Consider this expression as an appropriate metaphor for how we believe the broader impact of AI could unfold in the near future.

Originally Posted July 17, 2024 – “Human-like decisions, but better”

The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

Join The Conversation

If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

Leave a Reply

Disclosure: Heptagon Capital

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document.

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital’s prior written consent.

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
fax +44 20 7070 1881
email london@heptagon-capital.com

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Heptagon Capital and is being posted with its permission. The views expressed in this material are solely those of the author and/or Heptagon Capital and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.