Last week, a group of BCG researchers shared some similar findings in Harvard Business Review. And this really caught our attention. Because it turns out that under certain conditions, workers are experiencing what researchers are calling an AI brain fly. And let me be clear, that’s not the AI brain rot you get when you start watching Ballerina Cappuccina videos on TikTok. That’s correct. In fact, they thought Emmanuel Macron might have one, but it turned out to be AI fries. Anyway, what is AI Brainfly, Kevin? They define it as mental fatigue due to overuse of AI tools and oversight beyond cognitive ability, which I think is a bit of an interesting idea. I feel like I’ve got new colleagues and they’re really, really smart and I feel like the life force is being sucked out of my body. Officially, insider trading is not allowed on these platforms, right? They all have policies against it. Karsi, the most regulated platform in the US that enables prediction markets, says that after researching people, using inside information to place bets is actually illegal by its main regulator, the CFTC. However, there are some problems with this. One is that the CFTC is a small agency. The company does not have a large enforcement team that deploys to investigate what must be hundreds or thousands of trades each day using inside information on the platform. It is also not clear what is public information and what is private information. There are certain types of information in the stock market that are considered material non-public information for which trading is illegal. But as you know, it’s also legal to fly a drone over an oil facility to check on production, or park it outside a store to watch people coming in and out, and use that to calculate how well sales are going. – I doubt how much you know about insider trading rules, but I have to say I had no idea you were so knowledgeable about the laws here. – I’m calling my lawyer. But of course, this is part of the appeal of prediction markets in general. It is encouraging people who have good information to trade based on that information. – Yes, and if you allow people to bet on almost anything, how do you monitor the entire platform to figure out who is insider trading and who isn’t?
