One thing I have noticed as a result of the Pandemic is that most of our clients and prospects rarely need to meet in person. In fact, they overwhelmingly prefer Zoom or some virtual meeting to the inconvenience of a real-life one.   The financial world is already happening in the metaverse.  How long will it be before a sophisticated Robo AI using the latest deep fake technology returns your phone calls and emails quicker than your current advisor and to top it all off, has better performance results?

WARNING- All but the opening paragraph was written with ChatGPT using a display image generated image from  Shutterstock’s newly acquired generative AI from OpenAI.

Deep fakes, also known as deepfake videos, are computer-generated videos or images that are designed to look like real footage of a person, but are actually manipulated to depict them in a different way. These videos are created by using deep learning algorithms to analyze and replicate the facial movements, expressions, and speech patterns of the person being impersonated. The technology has advanced rapidly in recent years, making it easier for people to create convincing deepfake videos with minimal technical expertise.

Deepfakes have the potential to be used for a variety of purposes, both positive and negative. On the positive side, deepfakes can be used to create realistic special effects in movies and TV shows, or to recreate historical figures in documentaries. They can also be used to create virtual assistants and chatbots that are more human-like in their interactions.

However, the negative uses of deepfakes are more concerning. They can be used to spread misinformation and propaganda, by creating fake videos of politicians or other public figures that depict them saying or doing things they never actually did. They can also be used to create revenge porn, by superimposing someone’s face onto pornographic footage without their consent. And they can be used for scamming and extortion, by creating fake videos of someone to convince them to hand over money or personal information.

Deepfakes are also a major concern when it comes to privacy and security. As deepfake technology becomes more advanced, it will become increasingly difficult to tell the difference between real and fake videos. This could lead to a loss of trust in digital media, and make it harder to hold people accountable for their actions.

The ability to detect deepfakes is a critical aspect of addressing the problem. There are a number of techniques that can be used to detect deepfakes, such as analyzing the movement of facial features, comparing the audio and video tracks to detect inconsistencies, or using machine learning algorithms to identify patterns that are indicative of a deepfake. But as deepfake technology becomes more advanced, so too must the methods for detecting them.

One approach to detect deepfakes is to use a technique called “forensic analysis” which is used to detect the signs of tampering in a video. This is done by analyzing the video’s metadata, such as the resolution, frame rate, and compression, to see if it has been manipulated. Other methods involve using AI-based techniques to analyze the video and detect any inconsistencies in the person’s facial expressions, movements, or speech patterns.

Another approach is to use a “watermarking” technique, which involves adding a unique digital signature to a video. This watermark can be used to trace the origin of a video and determine whether it is real or fake.

The deepfake problem is not going to disappear any time soon, and the best way to address it is through a combination of detection, education and regulation. The public needs to be educated on the dangers of deepfakes and how to spot them. Companies and organizations need to invest in deepfake detection technologies and develop policies to address the use of deepfakes. And governments need to enact laws and regulations to deter the malicious use of deepfakes and hold those who create and distribute them accountable for their actions.

The deepfake technology is a double-edged sword that can be used for both good and bad purposes. It is important to find a balance between the benefits and risks of deepfakes, and to take steps to protect against the negative consequences. With the right approach, we can harness the potential of deepfakes for good but it won’t be easy.

Founded in 2010, our services include boutique hedge funds, separately managed accounts, financial planning, estate & trust services, private placements, and in-house concierge services for high-net-worth individuals, families, and businesses.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All investments involve risk, including the loss of principal.