Exploring AI's Self-Improvement Limits in Science and Finance
wordgrammer · x · 2026-07-11
Regarding the feasibility of AI's Recursive Self-Improvement (RSI) in science, the author argues that without human intervention, AI might generate a massive amount of fake scientific progress. Using the stock market as an example, the author notes that while quantitative hedge funds continuously iterate models through backtesting, their returns inevitably slow down. This is due to the rapid decay of market alpha and how large institutions' own trades impact the market. This demonstrates the inherent limitations of purely data-driven self-evolution in complex real-world systems.
Related event: AI Recursive Self-Improvement Concept Faces Heavy Skepticism(3 posts)→
More from AGI Musings
- LukeW: Technology Limits Are Temporary — and AI Skeptics Are Already Feeling It — LukeW · 2026-10-27
- GiveDirectly pilots an optional AI chatbot alongside cash aid in Rwanda — NathanpmYoung · 2026-10-27
- Ex-Anthropic employee essay: the org optimizes for power 'constrained by being seen as the good guys' — RichardMCNgo · 2026-10-27
- Investor: model version numbers are a mirage, only datacenter margins are real — StewartalsopIII · 2026-10-27
- WSJ Op-Ed: For Anthropic Share Offering Investors, a 10% Extinction Chance May Be a 90% Portfolio Win — davidmanheim · 2026-10-27
- WSJ: for Anthropic investors, a 10% extinction chance may still be a 90% portfolio win — peterwildeford · 2026-10-27