Risks brought by artificial intelligence assistants -Part 3

3. Market volatility

A key task of financial supervision is to transfer "unknown risks" to "known risks." Observers used to ignore the possibility of financial crises caused by known market changes. History shows that regulators ignore the danger of how microeconomic development can trigger a macroeconomic crisis. The failure of financial regulators to foresee the dynamics of microeconomic consumer behavior, which could lead to dramatic changes in financial markets, such as the panic withdrawal of funds from solvent banks and unproblematic mortgages.

Although there is great uncertainty as to how it will develop in the future, the concept of super conversion deserves attention in unstable conversations because it is located at the intersection of real-world market developments, extensive academic warnings, and lessons from historical crises.

4. Restrictions on the super conversion

Sellers have many tools to prevent super conversion or mitigate its impact. Some of these tools have potential competitive advantages, such as product customization, which can bring better products to consumers while increasing user viscosity. In addition, as the capacity increases, the seller may digitally provide the artificial intelligence assistant with the number of new customers that can be accommodated in a specific time period, such as 10 million new customers every quarter, which will effectively limit the super conversion.

The concentration of artificial intelligence assistants, the degree of consumer reliance on artificial intelligence assistants to make decisions, the ability of artificial intelligence assistants to move from one seller to another, the substitutability of the seller’s products, the difference in the cost structure of enterprises, and the feasibility of rapidly increasing manufacturing or services are all important factors affecting the super conversion.