WEBVTT - UL NO. 439: Humans vs. AI in Prediction Markets

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<v S1>Whether you're starting or scaling your company's security program, demonstrating

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<v S1>you go to Vanta comm slash unsupervised. That's vanta.com/supervised for

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<v S1>$1,000 off. Welcome to Unsupervised Learning, a security, AI, and

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<v S1>meaning focused podcast that looks at how best to thrive

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<v S1>as humans in a post AI world. It combines original ideas,

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<v S1>analysis and mental models to bring not just the news,

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<v S1>but why it matters and how to respond. All right,

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<v S1>welcome to unsupervised learning. This is Daniel Miessler. Okay. Pretty

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<v S1>much heads down on doing talks and courses right now. Uh,

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<v S1>a bunch of essays, a bunch of video content. It

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<v S1>feels like I've got a lot of ideas but feels

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<v S1>bad to be behind. Matt Williams put out a quality

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<v S1>introduction to fabric on his YouTube channel, so that was cool.

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<v S1>Really well done. Video got the augmented course is updated. Uh,

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<v S1>so essentially we're expanding it to four plus hours where

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<v S1>it was only three hours before. So it's a lot

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<v S1>more content. Got a whole section on augmenting AI with

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<v S1>personal context, building your own work life workflows, which is

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<v S1>going to be super cool. We're actually going to do

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<v S1>it live with 1 or 2 people in the class

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<v S1>as well, so it's going to be kind of hands on.

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<v S1>We got a full section on obsidian as well, and uh, yeah,

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<v S1>just a whole bunch of fabric uses lots and lots

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<v S1>of examples. And, uh, I really like the cohesive way.

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<v S1>It's kind of pulling together the philosophical versus the technical.

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<v S1>So it's very practical in like, okay, you actually do this,

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<v S1>but it's kind of framed in this philosophical way, or

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<v S1>at least that's what I'm trying to pull off. Okay,

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<v S1>so I think I cracked Trump's popularity. I think unless

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<v S1>the DNC figures this out, it actually doesn't matter who

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<v S1>they run, they have to figure this out. So I

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<v S1>got a post on that. Not going to go into

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<v S1>that because that's politics stories. So there's a new zero

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<v S1>day in OpenSSH that allows remote code execution. It's a

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<v S1>little bit convoluted to sort of attack, and I think

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<v S1>people are figuring that out. One thing to keep in mind, though,

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<v S1>is it always gets easier to attack these things. It

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<v S1>never gets harder to attack these things unless people patch,

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<v S1>of course. But even if it's a little convoluted now,

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<v S1>I mean, you still really need to take a look

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<v S1>at what you have exposed and whether or not your

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<v S1>particular SSH stack is vulnerable. There's a full 10.0 critical

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<v S1>vulnerability in juniper network routers that basically allows you to

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<v S1>bypass authentic full control. Cvss 10.0 snowflake had a breach,

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<v S1>as everyone knows, and it's expanding with over now 165 victims,

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<v S1>including Ticketek and Advanced Auto Parts. And some folks from

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<v S1>the Shiny Hunters are saying that they access snowflake via

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<v S1>third party contractors. And as part of that snowflake incident,

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<v S1>Santander's US branch is notifying over 12,000 people that their

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<v S1>personal info is stolen. So this is one of those

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<v S1>things where it's just, like, contagious because the third party

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<v S1>nature of it, it just keeps spreading. And yeah, like

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<v S1>we said above 165 victims currently read Juliet, a Chinese

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<v S1>state sponsored group, has been exploiting network Edge devices to

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<v S1>target Taiwanese government, academic, technology and diplomatic organizations thanks to

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<v S1>tines for sponsoring. And if everyone remembers that orange R1

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<v S1>I device, well, basically you can you can extract or

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<v S1>it was possible to extract all responses that ever came

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<v S1>back from them and uh, yeah, it basically nightmare fuel

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<v S1>and anything you got back from your personal AI device

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<v S1>visible to whoever. I think this is exactly what most

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<v S1>security experts predicted with regard to AI and security. Specifically

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<v S1>that when startups do security, it's usually really, really bad.

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<v S1>But one, they don't have the expertise, they don't have

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<v S1>the resources, they don't have the time. And they're already

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<v S1>facing existential crises like every day. And security usually isn't

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<v S1>one of them. Another way to say that is startups

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<v S1>generally run with scissors, and AI startups run extra fast

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<v S1>with extra scissors. Like I've been saying, if you think

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<v S1>this is bad, wait. Wait until it's actually days that

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<v S1>are getting compromised where people have uploaded like their traumas

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<v S1>and their journals and their personal conversations and just everything,

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<v S1>their most intimate details. And when those startups start getting breached,

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<v S1>it's going to be way worse. And this is the

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<v S1>attack surface map that I put together a while back,

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<v S1>and I think it's still pretty useful. Russian hacking group Apt29,

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<v S1>also known as Cozy Bear, breached team viewers corporate IT environment.

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<v S1>And this is another. So I've migrated over the years

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<v S1>to a very simple stance on security tooling or really

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<v S1>any core tooling. It is use the official offerings from

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<v S1>big companies whenever possible, and that's because they have giant

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<v S1>security teams, they have giant security budgets, and they have

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<v S1>a lot to lose in terms of PR and market share.

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<v S1>So basically, I only want to trust my data to

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<v S1>companies that have both the incentive and the resources to

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<v S1>protect that data. And those tend to be the big

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<v S1>players like Microsoft, Google, Apple, whatever. Chinese hackers are using

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<v S1>ransomware as a cover for cyber espionage. Perplexity AI is

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<v S1>under fire by a lot of people. A lot of

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<v S1>people are really upset with them because they're essentially scraping

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<v S1>and crawling and, you know, basically feeding their their AI

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<v S1>with tactics that nobody really likes. And it's kind of

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<v S1>turning people off to it. Metaculus is launching a series

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<v S1>of quarterly tournaments to benchmark AI forecasting against human forecasting

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<v S1>on real world questions. So I am really obsessed with

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<v S1>this rigorous predictions basically. So there are groups metaculus is

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<v S1>one where people make specific predictions. And I learned about

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<v S1>this from this book. Superforecasting. And this is now very

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<v S1>similar to Superforecasting, except for it's AI players playing addition

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<v S1>to the human players. And specifically they're competing. So I

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<v S1>can't wait to watch this. It's really, really exciting to me.

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<v S1>I'm actually going to build myself a little intelligence, uh, daily,

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<v S1>daily intelligence, brief product, uh, using substrate and, um, a

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<v S1>bunch of the AI stuff that I'm building. So I'm

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<v S1>essentially going to be capturing a whole bunch of, of

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<v S1>these superforecasters combined with a whole bunch of point sources

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<v S1>like Osint people, national security people, financial information, people capturing

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<v S1>all their point sources, capturing all the experts and what

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<v S1>they're predicting, and then having my AI basically collect all

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<v S1>that together, turn it into stories and narratives, and most importantly,

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<v S1>put like based on these experts, what are the most

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<v S1>likely outcomes over the next six months, 18 months, whatever,

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<v S1>three years. And it won't be perfect, obviously. I mean,

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<v S1>first of all, I is good at, you know, building

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<v S1>narratives when they don't exist or whatever. So there's all

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<v S1>sorts of things I need to be careful of, but

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<v S1>with lots of really, really good input from these different sources,

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<v S1>I think there's a lot of potential here. Uh, first

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<v S1>of all, I can have it. I'll have the history

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<v S1>of these things. So as the AI gets better, or

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<v S1>as I write a better prompt for the eye or

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<v S1>set of prompts for the eye pipeline, all those results

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<v S1>will get better. And either way, I'm going to have

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<v S1>the results of the the point predictions and the expert predictions.

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<v S1>They'll all be stored, so I can always go retroactively

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<v S1>and build a better product. And people are talking about

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<v S1>how to run billion parameter scale llms on 13W of power,

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<v S1>which is 50 times more efficient. And this is what

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<v S1>I call slack in the rope, which is what Leopold

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<v S1>Aschenbrenner calls hobbling. And this is why I think we're

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<v S1>at like 1% of like where we are going. And

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<v S1>that might be way too large, actually. It might be

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<v S1>like 0.001%, who knows? But to me the game is

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<v S1>scale times algorithms, times tricks. So improve scale, improve the

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<v S1>algorithms and find tricks that magnify both of these. So

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<v S1>tricks are finding slack on the rope, which can potentially

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<v S1>massively improve the algorithms or advantages from scale. So these

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<v S1>two get magnified by this one. And Leopold is basically

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<v S1>calling this one removing hobbling. Yeah. And by the way

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<v S1>situational awareness by Leopold. It is like the best discussion

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<v S1>of this particular topic of like why you should believe

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<v S1>that we're going to scale in a certain pace. Businesses

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<v S1>are desperate for AI guidance, and big consulting firms are

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<v S1>stepping in to help. McKinsey says generative AI will be 40%

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<v S1>of its business this year. In 2024, 40% of McKinsey's

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<v S1>business is AI, and this basically started like three days

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<v S1>ago or 18 months ago. I mean, it's a blink

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<v S1>of an eye and it's almost half of their business.

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<v S1>And so here's a question how much of their business

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<v S1>is crypto related? Okay. If you're trying to compare, you're

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<v S1>trying to be like, oh, they're both hype. Uh, huge difference.

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<v S1>Alibaba's coin models take the top three spots on hugging face.

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<v S1>And a lot of us competitors are lagging behind. And

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<v S1>this new leaderboard is testing models on tasks like solving

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<v S1>100 word murder mysteries and high school math equations. I

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<v S1>love the more practical and real and not trackable or

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<v S1>hackable or cheat able. These benchmarks are, and I don't

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<v S1>like the fact that these Chinese models are doing so well.

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<v S1>I think it's disturbing. AI and drone tech are two

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<v S1>places we absolutely need to be beat. China. People in

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<v S1>high income democracies are increasingly satisfied with how democracy dissatisfied

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<v S1>with how democracy is working. Since 2021, satisfaction has dropped

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<v S1>significantly in countries like Canada, Germany, Greece, South Korea, the UK,

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<v S1>the US and this is fine. A study showed that

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<v S1>loneliness in midlife is linked to believing in conspiracy theories.

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<v S1>And if I design an education curriculum, one of the

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<v S1>main themes will be hard work is leads you to

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<v S1>an easy life. Laziness leads you to a hard life

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<v S1>and the concept of resilience. And honestly, I would focus

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<v S1>a lot on the Stoics, but let me just pull

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<v S1>it up. Yeah, I love this graphic. Absolutely love this graphic.

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<v S1>It's just great. I'm gonna zoom in, look at this,

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<v S1>make hard decisions. Really, this kind of means discipline, right?

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<v S1>If you climb this mountain, you're you're doing self-discipline. And

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<v S1>you get to an easy life, easy decisions like, okay,

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<v S1>we're watching Netflix, we're doing cannabis, and boom, you slide

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<v S1>down here and now you're so far away from an

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<v S1>easy life. Now you have a hard life. Really powerful. Okay,

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<v S1>discovery project Nap time, Google's new AI framework for vulnerability

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<v S1>research lets humans take regular naps while it mimics human

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<v S1>security researchers. So it's just going to go off and

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<v S1>do its thing. The human could go away and it's

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<v S1>working on its whole thing. These frameworks just keep getting better.

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<v S1>So remember when we saw Will Smith eating the spaghetti

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<v S1>and it was like rah rah, rah. His mouth was

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<v S1>like giant. It was like totally messed up. The same

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<v S1>thing is going to happen with hacking frameworks, but there's

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<v S1>going to be a place at the top. Top 5%,

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<v S1>top 10%, top 1%. Depends where you cut it. But

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<v S1>either way, it's a small percentage, but still quite a

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<v S1>bit of room that basically only the really, really advanced

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<v S1>human testers can do right. If you find the top 1%

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<v S1>of pen testers bug bounty people or say, the 1%

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<v S1>or 1%, right? Which is still a lot of people,

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<v S1>keep in mind, 1% of 1% is still a lot

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<v S1>of people in in a very large space. Okay. And

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<v S1>bug bounty is pretty small, but pen testers are much,

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<v S1>much larger. But either way, let's just call it manual testers. 1%

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<v S1>of 1% of manual testers. They are doing things that

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<v S1>automation can't really do, and most manual testers can't really do,

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<v S1>and it's going to take a very long time. I

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<v S1>don't know how long maybe it's going to take full

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<v S1>AGI and possibly ASI and a whole lot more tricks

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<v S1>or anti hobbling in terms of the tool sets to

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<v S1>be able to replicate what they do. but the other

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<v S1>90 to 90 5% or 99% or whatever it is

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<v S1>that is work that an average manual tester is doing.

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<v S1>Those frameworks will these frameworks will be able to copy

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<v S1>that very soon, I would say, in the next couple

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<v S1>of years, even now and even next year. And, you know,

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<v S1>it's just kind of spinning up. So imagine manual testing

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<v S1>massively being attacked. But does that mean it could do

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<v S1>everything that a really advanced attacker can do? No. And

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<v S1>that won't happen for quite some time. And the final

0:13:05.160 --> 0:13:07.530
<v S1>thing I say on this is these frameworks will be

0:13:07.530 --> 0:13:11.280
<v S1>used by all attackers and defenders, because you'll have to.

0:13:11.280 --> 0:13:14.790
<v S1>And the window between new vulnerabilities and either exploitation or

0:13:14.790 --> 0:13:19.650
<v S1>mitigation will shorten dramatically. So basically when everyone's running these

0:13:19.650 --> 0:13:23.290
<v S1>tools and they're constantly going, and the moment you have

0:13:23.290 --> 0:13:26.410
<v S1>a new name published, it's instantly going to go find

0:13:26.410 --> 0:13:28.540
<v S1>all the subdomains. It's instantly going to go find all

0:13:28.540 --> 0:13:30.339
<v S1>the hosts. It's going to look at the hosts, it's

0:13:30.340 --> 0:13:32.560
<v S1>going to fingerprint them. It's going to do that. And

0:13:32.559 --> 0:13:35.110
<v S1>the defender needs to be doing that because the attacker

0:13:35.110 --> 0:13:37.479
<v S1>is going to be doing that right. And if there's

0:13:37.480 --> 0:13:41.050
<v S1>something vulnerable, oh, it's an open Postgres or whatever it

0:13:41.050 --> 0:13:44.230
<v S1>is and there's data in there. Well that is just

0:13:44.230 --> 0:13:46.510
<v S1>going to kick off an agent framework. It's going to

0:13:46.510 --> 0:13:48.550
<v S1>go download the stuff, it's going to parse the stuff.

0:13:48.550 --> 0:13:51.130
<v S1>It's going to turn it into a ransomware email. It's

0:13:51.130 --> 0:13:53.260
<v S1>going to find the people it should send that ransomware

0:13:53.260 --> 0:13:55.569
<v S1>email to. And like all this is just going to

0:13:55.570 --> 0:13:58.480
<v S1>be automated with AI. And so the defenders have to

0:13:58.480 --> 0:14:01.240
<v S1>be doing the exact same thing so they can block

0:14:01.240 --> 0:14:04.359
<v S1>it and do it beforehand. And importantly, when a new

0:14:04.360 --> 0:14:07.480
<v S1>vuln pops up or a new attack surface pops up,

0:14:07.480 --> 0:14:12.110
<v S1>the time between it coming available and either defense moving

0:14:12.110 --> 0:14:15.439
<v S1>on it, or attacker moving on, it is going to become,

0:14:15.440 --> 0:14:19.460
<v S1>you know, minutes or seconds instead of hours or days

0:14:19.460 --> 0:14:22.430
<v S1>or weeks or years. Extending Burp Suite for fun and

0:14:22.430 --> 0:14:27.860
<v S1>Profit a guide by Federico Dota 11 labs text, audio.

0:14:27.890 --> 0:14:31.130
<v S1>They've launched a new iOS app that sounds really good.

0:14:31.130 --> 0:14:34.650
<v S1>I mean, it sounds exactly like real people. I can't

0:14:34.650 --> 0:14:37.680
<v S1>tell the difference. Claud projects new feature in Claude. That's

0:14:37.680 --> 0:14:42.780
<v S1>Anthropic's answer to OpenAI assistance DApp, your new platform where

0:14:42.780 --> 0:14:46.620
<v S1>publishers set a price for using their content in model training.

0:14:46.620 --> 0:14:49.440
<v S1>Kind of like selling your medical data or something. A

0:14:49.440 --> 0:14:53.880
<v S1>Better Paradise Absurd ventures new podcast looks to elevate a

0:14:53.880 --> 0:14:58.380
<v S1>fictional episodic series with a billionaire leading the world towards

0:14:58.380 --> 0:15:01.050
<v S1>a digital dystopia. I actually want to go listen to

0:15:01.050 --> 0:15:03.150
<v S1>this and recommendation of the week. As soon as you

0:15:03.150 --> 0:15:05.190
<v S1>get a chance, go for a ride in a Waymo

0:15:05.190 --> 0:15:09.450
<v S1>in San Francisco. It is. It's open to everyone. Now

0:15:09.450 --> 0:15:11.250
<v S1>you basically just go get the app and you pay

0:15:11.250 --> 0:15:13.350
<v S1>for it or whatever. But it used to be a

0:15:13.350 --> 0:15:17.790
<v S1>closed like alpha or beta, but it is a remarkable experience.

0:15:17.790 --> 0:15:20.040
<v S1>And what I want you to do when you're in

0:15:20.040 --> 0:15:22.660
<v S1>there is watch the screen in the vehicle and look

0:15:22.660 --> 0:15:27.100
<v S1>at all the dozens or hundreds of things that it

0:15:27.100 --> 0:15:30.640
<v S1>is tracking. So you will see the dog across the street,

0:15:30.640 --> 0:15:33.610
<v S1>you will see the bicyclist. You will see the bicyclists,

0:15:33.610 --> 0:15:37.359
<v S1>multiple bicyclists moving in different directions. You will see people

0:15:37.360 --> 0:15:38.770
<v S1>on the side of the road. You will see when

0:15:38.770 --> 0:15:41.380
<v S1>they cross over into the street. And what you realize

0:15:41.380 --> 0:15:43.780
<v S1>is like, that's a lot of stuff to be tracking

0:15:43.780 --> 0:15:47.620
<v S1>all at once. And then you realize how distractible you

0:15:47.620 --> 0:15:51.280
<v S1>are as a human. You realize how distractible most drivers

0:15:51.280 --> 0:15:54.580
<v S1>are as humans. You realize the statistics of how many

0:15:54.580 --> 0:15:58.720
<v S1>bicyclists get hit constantly, every single year and, you know,

0:15:58.720 --> 0:16:02.980
<v S1>either injured or sometimes killed. And the reason isn't like

0:16:02.980 --> 0:16:06.580
<v S1>evil drivers. The reason is humans are bad drivers. I mean,

0:16:06.580 --> 0:16:08.770
<v S1>there's going to come a point at some point in

0:16:08.780 --> 0:16:11.030
<v S1>the future where it's like, you mean you really just

0:16:11.030 --> 0:16:15.500
<v S1>had people and they were manually controlling these cars right

0:16:15.500 --> 0:16:19.700
<v S1>next to pedestrians and right next to bicyclists? Like, how

0:16:19.700 --> 0:16:23.510
<v S1>were they watching everything? Well, well, the idea is the

0:16:23.510 --> 0:16:26.810
<v S1>human driver would look forward and they would just watch everything.

0:16:26.810 --> 0:16:30.260
<v S1>It's like, yeah, yeah, but but they can't see behind them. Well,

0:16:30.260 --> 0:16:33.090
<v S1>you just you just look behind you. That's all you do.

0:16:33.120 --> 0:16:35.310
<v S1>You just look behind you. Well, yeah, but then you're

0:16:35.310 --> 0:16:38.190
<v S1>not looking forward. Well, well yeah. But but when you

0:16:38.190 --> 0:16:40.110
<v S1>need to look forward, you just turn around again. And

0:16:40.110 --> 0:16:42.270
<v S1>then you look forward and you can look side to side.

0:16:42.270 --> 0:16:45.540
<v S1>It worked, it worked. It worked for a while. It's

0:16:45.540 --> 0:16:49.890
<v S1>like explaining that to somebody who has who's been driven

0:16:49.890 --> 0:16:54.060
<v S1>around in automated vehicles that watch everything all the time

0:16:54.060 --> 0:16:58.170
<v S1>and never blink, never get tired, never get sleepy. Never

0:16:58.170 --> 0:17:01.590
<v S1>check text messages. They just watch everything all the time

0:17:01.590 --> 0:17:05.550
<v S1>and can instantly, like swerve the car, stop the car,

0:17:05.550 --> 0:17:08.430
<v S1>do whatever. If someone does something stupid on a bike,

0:17:08.430 --> 0:17:10.770
<v S1>they hit a pothole. They fall in the road in

0:17:10.770 --> 0:17:12.840
<v S1>front of you. Like what are the chances? You're just

0:17:12.840 --> 0:17:16.080
<v S1>going to miss that because it's dark, or because you're tired,

0:17:16.080 --> 0:17:18.630
<v S1>or because you've been working three jobs and you're falling

0:17:18.630 --> 0:17:21.580
<v S1>asleep or whatever the reason. So think about that when

0:17:21.580 --> 0:17:23.709
<v S1>you're looking at the screen in a Waymo and the

0:17:23.710 --> 0:17:27.070
<v S1>aphorism of the week, every event has two handles, one

0:17:27.070 --> 0:17:29.140
<v S1>by which it can be carried and one by which

0:17:29.170 --> 0:17:32.140
<v S1>it can't. Every event has two handles, one by which

0:17:32.170 --> 0:17:35.530
<v S1>it can be carried and one by which it can't. Epictetus.

0:17:36.850 --> 0:17:39.970
<v S1>Unsupervised learning is produced and edited by Daniel Miessler on

0:17:39.970 --> 0:17:44.590
<v S1>a Neumann U87 AI microphone using Hindenburg. Intro and outro

0:17:44.590 --> 0:17:47.920
<v S1>music is by Zomby with the Y, and to get

0:17:47.920 --> 0:17:49.990
<v S1>the text and links from this episode, sign up for

0:17:49.990 --> 0:17:55.630
<v S1>the newsletter version of the show at Daniel miessler.com/newsletter. We'll

0:17:55.630 --> 0:17:56.470
<v S1>see you next time.