Ray Dalio - Artificial Intelligence Principles

Ray Dalio - Artificial Intelligence Principles _ AI Podcast Clips

The Power of Principles: A New Approach to Decision Making and Intelligence

As I ponder the question of whether a computer can raise a child, I am reminded of the power of principles in decision making. For years, I have been studying the art of decision making and the role of algorithms in processing information. Recently, I have come across an app that helps people write down their own principles for choosing the right school for their child or other important decisions. This is a powerful tool that can help individuals articulate their criteria and make more informed decisions.

The key to this approach is writing down one's principles and then converting them into algorithms for decision making. By doing so, individuals can create a system of decision making that is both effective and efficient. The app allows users to write down their principles and then converts them into equations that show the relationship between different variables. This process is almost like forming an argument against oneself, as it forces individuals to think critically about their own thoughts and ideas.

As I continue to develop this idea, I am reminded of the concept of meritocracy and how it can be applied to raising a child. What if we took the principles that are currently used in investment analysis at Bridgewater and applied them to raising a child? By doing so, we could create a rigorous approach to decision making that is both effective and efficient.

The idea may seem radical, but I believe that with the right tools and algorithms, we can create a system of decision making that is unparalleled. The key is to convert principles into intelligence, which is ultimately what this all comes down to. Intelligence, in this context, refers to the ability to analyze information, identify patterns, and make informed decisions.

The current state of affairs is one where individuals are relying on their own intuition and experience to make decisions. This can lead to ignorance and a lack of critical thinking. By converting principles into algorithms, we can create a system that operates independently of human bias and emotion. The computer will be able to process vast amounts of information and provide recommendations based on the input.

This concept is not new, but it is an area where I believe significant progress is being made. For years, we have been talking about systems of record, which are essentially just organized ways of storing information. However, with the development of intelligence algorithms, we are moving towards a new era where information can be processed and analyzed in real-time.

The future of decision making will rely heavily on this technology. Instead of relying on our own intuition or seeking guidance from human experts, we will be able to use tools that provide us with accurate and unbiased recommendations. This is not to say that humans won't still play a role, but rather that they will have access to the same information as the machines.

In fact, I believe that this technology has the potential to revolutionize many aspects of our lives, from healthcare to education. Imagine being able to consult with an expert who can provide you with accurate and personalized advice, without having to rely on human intuition or bias. This is not a distant dream, but rather a reality that is rapidly becoming available.

The benefits of this technology are numerous. For one, it will enable individuals to make more informed decisions, free from the influence of emotional biases. It will also provide access to information and expertise that was previously inaccessible. Perhaps most significantly, it will enable us to arrive at a set of principles for raising children that can be encoded into computers.

The notion that principles are inherently uncomputable is false. I firmly believe that with the right algorithms and tools, we can convert principles into intelligence, and ultimately use that intelligence to make better decisions. This may seem like science fiction, but I assure you that it is not. The power of principles in decision making has been underestimated for far too long.

I am 70 years old now, and I want to pass on the knowledge and tools that I have developed over the years. I believe that this technology will be one of the most significant innovations of our time, and I feel a sense of responsibility to share it with others. As we continue to develop these tools, I envision a future where they become an integral part of our daily lives.

The idea is not new, but the concept of converting data into intelligence has been lacking in human history. We have talked about systems of record for years, but now we are moving towards a new era of processing information and analyzing data in real-time. This will enable us to create tools that can operate independently of human bias and emotion.

Intelligence is not just about processing vast amounts of data; it's also about understanding the relationships between different variables. By converting principles into intelligence, we can create a system that can identify patterns and make informed decisions. This will be essential for many aspects of our lives, from healthcare to education.

The power of principles in decision making has been underestimated for far too long. I firmly believe that with the right tools and algorithms, we can convert principles into intelligence and ultimately use that intelligence to make better decisions. The future is now, and it's time to harness this technology to create a brighter future for ourselves and our children.

"WEBVTTKind: captionsLanguage: enlet me talk about if we could about AI a little bit so if Bridgewater associates manage about 160 billion dollars in assets and our artificial intelligence systems algorithms are pretty good with data what role in the future DC AI play in analysis and decision making in this kind of data rich an impactful area of investment I'm gonna answer that not only an investment but I give them more all encompassing rule for AI as I think you know for the last 25 years we have taken our thinking and put them in algorithms and so we make decisions that the computer takes those criteria algorithms and they put them and they're in there and it takes data and they operate as an independent decision-maker power in parallel with our decision-making so for me it's like there's a chess game playing and on person with my chess game and I'm saying it made that move and I'm making the move and how do I compare those two moves so we've done a lot but let me give you an oral if the future can be different from the past and you don't have deep understanding you should not rely on AI okay those two things deep understanding of the cause-effect relationships that are leading you to place that bet in anything okay anything important let's say if it was do surgeries and you would say how do I do surgeries I think it's totally fine to watch all the doctors do the surgeries you can put it on I take a a digital camera and do that convert that into AI algorithms that go to robots and have them do surgeries and I'd be comfortable with that because if it'll do that if the keeps doing the same thing over and over again and you have enough of that that would be fine even though you may not understand the algorithms because you're if the things happening over and over again and you're not asking the future would be the same that appendicitis or whatever it is will be handled the same way the surgery that's fine however what happens with AI is for the most part is it takes a lot of data and it with a high enough sample size and then it puts together its own algorithms okay there are two ways you can come up with algorithms you can either take your thinking and express them in algorithms or you can say let put the data in and say what is the algorithm when you that's machine learning yeah and when you have machine learning it'll give you equations which quite often are not understandable if you would try to say okay now describe what it's telling you it's very difficult to describe and so they can escape understanding and so it's very good for doing those things that could be done over and over again if you're watching and you're not taking that but if the future is different from the past and you have that then you're if the future is different from the past and you don't have deep understanding you're gonna get in trouble and so that's the main thing as far as AI is concerned AI and I'd say computer replications of thinking very ways I think it's particularly good for processing but but the the notion of what you want to do is better most of the time determined by the human mind that what are the principles like okay how should I raise my children it's gonna be a long time before AI you're going to say it has a good enough judgment to do that who should I marry on all of those things maybe you can get the computer to help you but if you just took data and you have machine learning it's not going to find it if you were to then take one of my criteria for any of those questions and then say put them into an algorithm and you a lot better off than if you took AI to do it but by and large the mind should be do used for inventing and those creative things and then the computer should be used for processing because it could process a lot more information a lot faster a lot more accurately and a lot less emotionally so any notion of thinking in the form of processing type thinking should be done by a computer and anything that is in the notion of doing that other type of thinking should be operating with with the brain in operating in a way where you know you can say ah that makes sense you know the process of reducing your understanding down to principles is kind of like the process the the first one you mentioned a type of AI algorithm where you are encoding your expertise you're trying to program write a program the human is trying to write a program how do you think that's attainable the process of reducing principles to a computer program or when you when you say when you write about when you think of all principles is there still a human element that's not reducible to an algorithm my experience has been that almost all things including those things that I thought were pretty much impossible to express I've been able to express in algorithms but that doesn't constitute all things so you can cut you can who you can express far more than you can imagine you'll be able to express so I use the example of okay it's not how do you raise your children okay you will be able to take it one piece by piece okay how at what age what school and the way to do that and that my experience is to take that and when you're in the moment of making a decision or just past making a decision to take the time and to write down your criteria for making that decision in words okay that that way you'll get your price your principles down on paper I created an app online call it's right now just on the iPhone it'll be and try getting an Android a mile it'll be an Android it'll be in a few months it'll be on an awesome but it has an app in there that helps people write down their own principles because this is very powerful so when you're in that moment where you've just you're thinking about it and you're thinking your criteria for you know choosing the school for your child or whatever that might be and you write down your criteria or whatever they are those principles you write down and you you that will at that moment make you articulate your principles in a very valuable way and if you have the way that we operate that you have easy access so then the next time that comes along you can go to that or you can show those principles to others to see if they're the right principles you will get a clarity of that principle that's really invaluable in words and that'll help you a lot then but then you start to think how do i express that in data and it'll shock you about how you can do that you'll you'll form an equation that will show the relationship between these particular parts and then the essentially the variables that are going to go into that particular equation and you will be able to do that and you take that little piece and you put it into the computer and then take the next little piece and you put that into the computer and before you know it you will have a decision making system that's of the sort that I'm describing so that you're almost making an argument against the last an earlier statement you've made and you're convinced to me at first you said there's no way a computer could raise a child essentially but now you've described in making me think of it if you have that kind of idea meritocracy you have this rigorous approach at Bridgewater takes an investment and apply it to raising a child it feels like through the process each is described we could as a society arrive at a set of principles for raising a child and encoded into computer that originality will not come from machine learning the first time you do so that the original yes that's what I'm referring to but eventually as we together develop it and then we can automate it that's why I'm saying the processing yes can be done by the computer so we're saying the same thing we're not inconsistent and we're saying the same thing that the processing of that information in those algorithms can be done by the computer in a very very effective way you don't need to sit there in process and try to weigh all those things in your equation and all those things but that notion of ok how do I get at that principle and you're saying you'd be surprised yes you how much you can express that's right you can do that so this is where I think you're going to see the future and right now we you know go to our devices and we get information to a large extent and then we get some guidance we have our GPS and the like in my opinion principles principles principles principles I want to emphasize that you write them down you've got those principles they will be converted into algorithms for decision making and they're going to also have the benefit of collective decision making because right now individuals based on what stuck in their heads are making their decisions in very ignorant ways they're not the best decision makers they're not the best criteria and they're operating when those principles are written down and converted into algorithms it's almost like you'll look at that and follow the instructions and it'll give you better results medic medicine will be much more like this you can go to your local doctor and you could ask his point of view and whatever and he's rushed and he may not be the best doctor around and you're gonna go to this thing and get that same information or just automatically have it input in that and it's gonna tell you okay here's what you should go do and it's gonna be much better than your local doctor and that that the converting of information into intelligence okay intelligence is the thing we're coming out with again I'm 70 and I want to pass all these things along so all these tools that I've found that need to develop all over these periods of time all those things I want to make an available and what's going to happen as you there they're going to see this they're going to see these tools operating much more that way the idea of converting data into intelligence intelligence for example on what they are like what are your strengths and weaknesses intelligence on who do I work well with under what circumstance analyze intelligence we're going to go from what are called systems of record which are a lot of ok information organized in the right way to intelligence and we're going to that that'll be the next big move in my opinion and so you will get intelligence back and that that intelligence comes from reducing things down to principles in to that's how what happens youlet me talk about if we could about AI a little bit so if Bridgewater associates manage about 160 billion dollars in assets and our artificial intelligence systems algorithms are pretty good with data what role in the future DC AI play in analysis and decision making in this kind of data rich an impactful area of investment I'm gonna answer that not only an investment but I give them more all encompassing rule for AI as I think you know for the last 25 years we have taken our thinking and put them in algorithms and so we make decisions that the computer takes those criteria algorithms and they put them and they're in there and it takes data and they operate as an independent decision-maker power in parallel with our decision-making so for me it's like there's a chess game playing and on person with my chess game and I'm saying it made that move and I'm making the move and how do I compare those two moves so we've done a lot but let me give you an oral if the future can be different from the past and you don't have deep understanding you should not rely on AI okay those two things deep understanding of the cause-effect relationships that are leading you to place that bet in anything okay anything important let's say if it was do surgeries and you would say how do I do surgeries I think it's totally fine to watch all the doctors do the surgeries you can put it on I take a a digital camera and do that convert that into AI algorithms that go to robots and have them do surgeries and I'd be comfortable with that because if it'll do that if the keeps doing the same thing over and over again and you have enough of that that would be fine even though you may not understand the algorithms because you're if the things happening over and over again and you're not asking the future would be the same that appendicitis or whatever it is will be handled the same way the surgery that's fine however what happens with AI is for the most part is it takes a lot of data and it with a high enough sample size and then it puts together its own algorithms okay there are two ways you can come up with algorithms you can either take your thinking and express them in algorithms or you can say let put the data in and say what is the algorithm when you that's machine learning yeah and when you have machine learning it'll give you equations which quite often are not understandable if you would try to say okay now describe what it's telling you it's very difficult to describe and so they can escape understanding and so it's very good for doing those things that could be done over and over again if you're watching and you're not taking that but if the future is different from the past and you have that then you're if the future is different from the past and you don't have deep understanding you're gonna get in trouble and so that's the main thing as far as AI is concerned AI and I'd say computer replications of thinking very ways I think it's particularly good for processing but but the the notion of what you want to do is better most of the time determined by the human mind that what are the principles like okay how should I raise my children it's gonna be a long time before AI you're going to say it has a good enough judgment to do that who should I marry on all of those things maybe you can get the computer to help you but if you just took data and you have machine learning it's not going to find it if you were to then take one of my criteria for any of those questions and then say put them into an algorithm and you a lot better off than if you took AI to do it but by and large the mind should be do used for inventing and those creative things and then the computer should be used for processing because it could process a lot more information a lot faster a lot more accurately and a lot less emotionally so any notion of thinking in the form of processing type thinking should be done by a computer and anything that is in the notion of doing that other type of thinking should be operating with with the brain in operating in a way where you know you can say ah that makes sense you know the process of reducing your understanding down to principles is kind of like the process the the first one you mentioned a type of AI algorithm where you are encoding your expertise you're trying to program write a program the human is trying to write a program how do you think that's attainable the process of reducing principles to a computer program or when you when you say when you write about when you think of all principles is there still a human element that's not reducible to an algorithm my experience has been that almost all things including those things that I thought were pretty much impossible to express I've been able to express in algorithms but that doesn't constitute all things so you can cut you can who you can express far more than you can imagine you'll be able to express so I use the example of okay it's not how do you raise your children okay you will be able to take it one piece by piece okay how at what age what school and the way to do that and that my experience is to take that and when you're in the moment of making a decision or just past making a decision to take the time and to write down your criteria for making that decision in words okay that that way you'll get your price your principles down on paper I created an app online call it's right now just on the iPhone it'll be and try getting an Android a mile it'll be an Android it'll be in a few months it'll be on an awesome but it has an app in there that helps people write down their own principles because this is very powerful so when you're in that moment where you've just you're thinking about it and you're thinking your criteria for you know choosing the school for your child or whatever that might be and you write down your criteria or whatever they are those principles you write down and you you that will at that moment make you articulate your principles in a very valuable way and if you have the way that we operate that you have easy access so then the next time that comes along you can go to that or you can show those principles to others to see if they're the right principles you will get a clarity of that principle that's really invaluable in words and that'll help you a lot then but then you start to think how do i express that in data and it'll shock you about how you can do that you'll you'll form an equation that will show the relationship between these particular parts and then the essentially the variables that are going to go into that particular equation and you will be able to do that and you take that little piece and you put it into the computer and then take the next little piece and you put that into the computer and before you know it you will have a decision making system that's of the sort that I'm describing so that you're almost making an argument against the last an earlier statement you've made and you're convinced to me at first you said there's no way a computer could raise a child essentially but now you've described in making me think of it if you have that kind of idea meritocracy you have this rigorous approach at Bridgewater takes an investment and apply it to raising a child it feels like through the process each is described we could as a society arrive at a set of principles for raising a child and encoded into computer that originality will not come from machine learning the first time you do so that the original yes that's what I'm referring to but eventually as we together develop it and then we can automate it that's why I'm saying the processing yes can be done by the computer so we're saying the same thing we're not inconsistent and we're saying the same thing that the processing of that information in those algorithms can be done by the computer in a very very effective way you don't need to sit there in process and try to weigh all those things in your equation and all those things but that notion of ok how do I get at that principle and you're saying you'd be surprised yes you how much you can express that's right you can do that so this is where I think you're going to see the future and right now we you know go to our devices and we get information to a large extent and then we get some guidance we have our GPS and the like in my opinion principles principles principles principles I want to emphasize that you write them down you've got those principles they will be converted into algorithms for decision making and they're going to also have the benefit of collective decision making because right now individuals based on what stuck in their heads are making their decisions in very ignorant ways they're not the best decision makers they're not the best criteria and they're operating when those principles are written down and converted into algorithms it's almost like you'll look at that and follow the instructions and it'll give you better results medic medicine will be much more like this you can go to your local doctor and you could ask his point of view and whatever and he's rushed and he may not be the best doctor around and you're gonna go to this thing and get that same information or just automatically have it input in that and it's gonna tell you okay here's what you should go do and it's gonna be much better than your local doctor and that that the converting of information into intelligence okay intelligence is the thing we're coming out with again I'm 70 and I want to pass all these things along so all these tools that I've found that need to develop all over these periods of time all those things I want to make an available and what's going to happen as you there they're going to see this they're going to see these tools operating much more that way the idea of converting data into intelligence intelligence for example on what they are like what are your strengths and weaknesses intelligence on who do I work well with under what circumstance analyze intelligence we're going to go from what are called systems of record which are a lot of ok information organized in the right way to intelligence and we're going to that that'll be the next big move in my opinion and so you will get intelligence back and that that intelligence comes from reducing things down to principles in to that's how what happens you\n"

Random Videos