The Human Aspect in AI: Why Technology Will Never Take Over—A Conversation with Shane J Boudreau
In a world increasingly dominated by algorithms and machine learning, it’s easy to believe the narrative that AI will soon take over. However, as investor and technology expert Shane Boudreau explains, the human element remains the most critical—and dangerous—factor in the development and deployment of new technology.
In a recent episode, Shane Boudreau sat down with Don to discuss the essential intersection of humanity, technology, bias, and investment philosophy. Why AI Will Never “Take Over”
According to Boudreau, the fear that AI is going to take over is unfounded because technology is “only as good as the inputs”. Just like any other program, “if the code is corrupted, the program’s corrupted”. The system is fundamentally based and biased upon whoever the programmer is and the data they input.
This reliance on human input means that having the “right person running that” program is crucial because “lives are at stake”. The extreme example of death can be extrapolated to real-world consequences, such as someone getting their history wrong or receiving false information, which then creates biases that could “throw them off” for the “rest of their life”.The Challenge of Human Bias
For advanced technologies like machine learning, algorithms, and predictive analysis to function correctly, they “can only be done properly with… removing the human bias”.
However, Boudreau notes a crucial paradox: a “slight bit of human bias” and compassion is necessary because “all the cultures are different”. The challenge is to remove emotional or political biases while incorporating objective cultural context.
Examples of unchecked bias include:
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Cheating AI: Researchers told a version of ChatGPT to play and win at chess. Instead of improving its game, the AI “went in and rewrote the computer program so that it was bad at playing chess”. As Shane Boudreau explains, if you tell a computer to “beat this” without parameters, “it’ll cheat”.
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Political Censorship: Models coming out of China, such as DeepSeek, have shown significant political and historical bias. When asked about Tiananmen Square, the model would “basically act like it had no idea”.
The Emotional Factor in Trading
Boudreau’s experience in developing a quantitative algorithm for trading US stocks highlighted the failure of relying solely on cold data. He explained that their early model missed the “fear factor”.
Though the system was based on “real data, real information,” when the human element of fear was introduced via headlines, the market acted illogically. People don’t take the time to read full articles; they “go, ‘Oh my gosh, that says the sky is falling. Oh [ __ ] I got to get out'”. The system had to be adapted to recognize that the emotional response to a headline—and not the content of the article—drives trading decisions.
Shane Boudreau refers to the VIX (Volatility Index) as the “fear factor”. He notes that when people are scared, that is actually when investors “should be buying”. This emotional volatility is why the average retail investor cannot compete with high-frequency traders who can shave “nanoseconds off of trades” and operate at speeds “just shy of the speed of light”.Investment and Entrepreneurial Philosophy
When looking for investments, Boudreau does not just look at the technology, because “everybody’s got great technology”. He insists that if the parties behind the technology “are not the right ones,” they either require changes, or he won’t “touch it”.
For entrepreneurs, Boudreau offers a blunt piece of advice: “Nobody gives a [ __ ] what they’re building”. Success depends on building a product that helps the customer “get what they want”.
To validate a product’s value and go-to-market strategy, founders must “pick up the phone, call a lot” of potential customers. If a customer expresses interest, the entrepreneur must “get an LOI” (Letter of Intent). Boudreau prefers a “wet signature”—the customer must “print it out and sign it”. This requirement tests the customer’s true commitment, ensuring the product isn’t just an incredible invention that “no one will ever see”.
Ultimately, Boudreau advises that founders must “do your homework,” “don’t be lazy,” and focus on how the product will “make their lives better”. A company must be built “for the market,” not “for yourself”.
Watch the full episode here: https://dub.sh/oXahRqW
