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Mark_Friedenbach comments on The genie knows, but doesn't care - Less Wrong
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Replace "AI" with "omni-powerful tyrannical dictator" and tell me if you still agree with the outcome.
If you need specify the AI to be bad ("tyrannical") in advance, that's begging the question. We're debating why you feel that any omni-powerful algorithm will necessarily be bad.
Look up the origin of the word tyrant, that is the sense in which I meant it, as a historical parallel (the first Athenian tyrants were actually well liked).