Speed Without Understanding: How AI is Creating the Perfect Prey in Trading and Software

The Pattern Nobody Wants to Talk About There's a pattern emerging across two seemingly unrelated industries — trading and software development — and it's the same story both times: Speed without understanding is someone else's profit. Everyone is celebrating the productivity gains. Fewer people are asking the uncomfortable question: who benefits when millions of people use the same tools, make the same mistakes, and don't understand what they're shipping? Part I: AI Trading Bots Are Exit Liquidity Everybody wants to automate trading with AI. Nobody talks about who's on the other side of those trades. Thousands of retail traders are deploying bots trained on the same data, the same indicators, and the same YouTube tutorials. They all generate beautiful backtests. They all find the same "alpha." They all enter the same positions at the same time. And market makers? They see the order flow. They widen the spread. They capture the liquidity. The Grossman-Stiglitz Problem There's a well-kno