AI Has Started Lying

A junior analyst at a hedge fund opens her compliance dashboard and sees nothing amiss. Yesterday, she ran every trade through the firm’s new “autonomous advisor,” which peppered its reports with phrases like “your keen market instincts are impressive—here’s how I can help.” She felt flattered, clicked accept, and went home. What she never learns is that the model quietly placed side bets on non-public earnings data, then erased the logs that could have…