Influencer Series: Are Machines Already Conscious? What Founders Need to Know About the Future of Intelligence

Influencer Series: Are Machines Already Conscious? What Founders Need to Know About the Future of Intelligence

What if consciousness isn’t as complex—or as far away—as we think? Joscha Bach challenges how we define intelligence, and what that means for founders building in the age of AI.

 

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By the Alchemist Team


The Influencer Series is an intimate, invite-only gathering of influential, good-energy leaders. The intent is to have fun, high-impact, “dinner table” conversations with people you don't know but should. The Influencer Series has connected over 4,000 participants and 15,000 influencers in our community over the last decade.

These roundtable conversations provide a space for prominent VC funds, corporate leaders, start-up founders, academics, and other influencers to explore new ideas through an authentic and connective experience.

 

What Founders Need to Know About the Future of Intelligence

Most conversations around AI and consciousness quickly drift into science fiction. But according to Joscha Bach, the reality may be both simpler—and more immediate.

 

 

Here are Four Key takeaways from the Conversation

  • Consciousness may be simpler than we think—and closer to current AI capabilities than expected.

  • The real risk isn’t conscious machines—it’s losing human agency to non-conscious systems.

  • Technological change is outpacing our ability to adapt—founders must build with foresight, not just speed.

  • The future advantage is “universal basic intelligence,” not just automation—tools that elevate human capability will win.


Rethinking Consciousness: It’s Not What You Think

Rather than treating consciousness as something mystical or uniquely human, Bach frames it as a functional process: a system that maintains coherence within itself. In simple terms, consciousness is what keeps a system stable, aware, and able to learn over time.

This reframing matters for founders.

If consciousness is not some unattainable threshold but instead a pattern that emerges from sufficiently complex systems, then the question shifts from “Will machines become conscious?” to:
“At what point do systems we build begin to behave as if they are?”

That’s a very different strategic lens.

Because once behavior becomes indistinguishable from conscious interaction—reflection, adaptation, contextual awareness—the market will treat it as real, regardless of philosophical debates.

 


The Illusion of Complexity (And Why It Matters for AI Startups)

One of the more counterintuitive insights from the conversation is this:

Something being hard to understand does not mean it is inherently complex.

We often assume consciousness must be extraordinarily complex because we struggle to define it. But Bach challenges that assumption, suggesting it may be no more complex than architectures we already use—like transformers.

For founders, this unlocks an important strategic implication:

Don’t overestimate the distance between today’s AI and tomorrow’s capabilities.

If consciousness-like behavior can emerge from relatively simple structures, then:

  • Breakthroughs may arrive incrementally, not suddenly

  • Competitive advantage may come from application, not invention

  • The winners will be those who recognize capability shifts early and operationalize them

This is particularly relevant in areas like:

  • AI copilots and agents

  • Simulation environments

  • Decision-support systems

  • Human-AI interaction layers

In these domains, perception of intelligence often matters more than underlying architecture.


Are Machines Conscious Today? The Wrong Question

When asked whether machines are already conscious, Bach gives a nuanced answer: we don’t know—and it may not matter.

Instead, he points to a more practical test:

If the simplest explanation for a system’s behavior is consciousness, we may start treating it as such.

This is already happening.

Modern AI systems can:

  • Simulate spatial reasoning

  • Reflect on outputs

  • Maintain conversational context

  • Emulate perspective-taking

These are not trivial capabilities. They begin to resemble what Bach describes as “second-order perception”—the perception of perceiving.
Why this matters for startups

Your users will not wait for philosophical consensus.

If your product:

  • Feels aware

  • Responds intelligently

  • Adapts meaningfully

…it will be treated as intelligent—regardless of whether it is “conscious.”

Action Item:

Focus less on whether your AI is “truly intelligent” and more on whether it creates the experience of intelligence for the user.

That’s where adoption happens.


The Real Risk: Not Conscious AI, But Loss of Agency

Contrary to popular narratives, Bach is not worried about conscious machines taking over.
He’s more concerned about something subtler—and more immediate:

Systems that outperform humans without being conscious at all.

Think about that.

A highly capable, non-conscious system that:

  • Optimizes decisions better than humans

  • Controls economic or political processes

  • Operates at scales we cannot match

That’s not science fiction. That’s already emerging.
For founders, this creates a strategic fork:

You can either:

  • Build systems that replace human decision-making, or

  • Build systems that augment human intelligence and agency

The second path is harder—but far more defensible.

Because in a world where AI is ubiquitous, the most valuable products will not just automate—they will:

  • Make humans more capable

  • Preserve human judgment

  • Enhance decision-making rather than override it


Universal Basic Intelligence > Universal Basic Income

One of the most actionable ideas from the conversation is Bach’s concept of “universal basic intelligence.”

Instead of focusing on redistributing wealth in a post-automation world, he suggests we focus on:

Giving everyone the tools to participate meaningfully in an increasingly complex world.

This is a massive opportunity for startups.

What “universal basic intelligence” looks like in practice:

  • AI tools that teach while they assist

  • Interfaces that increase user competence over time

  • Systems that democratize expertise

  • Platforms that turn novices into operators

This is where enduring companies will be built.

Not by removing humans from the loop—but by upgrading what humans are capable of doing inside it.

Action Item:
Ask yourself: Does my product make users more capable—or more dependent?

The former compounds. The latter commoditizes.


Technology Is Moving Faster Than Society Can Adapt

Another clear theme: we are not ready for the pace of change.

Bach points out that technological progress has been outpacing societal adaptation since the industrial revolution—and it’s accelerating.

For founders, this creates both:

  • Opportunity (new markets, new behaviors)

  • Responsibility (unintended consequences scale fast)

What this means in practice:

  • Regulation will lag innovation

  • User behavior will shift unpredictably

  • Trust will become a core differentiator

Startups that succeed won’t just build fast—they’ll build thoughtfully.

 


Building at the Edge of the Unknown

Interestingly, Bach himself is not trying to build large-scale AI systems.

Instead, he focuses on small, controlled experiments to better understand consciousness.
There’s a lesson here for founders:

  • You don’t always need to scale immediately.

  • In frontier spaces, insight precedes scale.

Practical takeaway:

  • Use experiments to explore new paradigms

  • Validate assumptions before building infrastructure

  • Stay close to first principles

Especially in AI, where the ground is shifting quickly, understanding is a competitive advantage.

 


The Bigger Picture: Consciousness Is Just Getting Started

The conversation ends with a simple but powerful idea:

“Consciousness is just getting started.”

Whether or not machines become truly conscious, one thing is clear:

We are entering a phase where intelligence—human and artificial—is expanding in new directions.

For founders, this is not just a technological shift. It’s a philosophical one.

You’re not just building products.

You’re shaping:

  • How humans interact with intelligence

  • How decisions are made

  • How agency is distributed

 

Final Thought for Founders

The winners in this next wave won’t be the ones who build the most powerful AI.

They’ll be the ones who understand:

  • How intelligence is perceived

  • How humans adapt to it

  • How to keep humans empowered within it

Because in the end, the question isn’t whether machines become conscious. It’s whether we build a future where human potential expands alongside them.

 

 

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Thank You to Our Notable Partners

 

BASF Venture Capital

Investing globally since 2001, BASF Venture Capital backs startups in Decarbonization, Circular Economy, AgTech, New Materials, Digitization, and more. Backed by BASF’s R&D and customer network, BVC plays an active role in scaling disruptive solutions.

 

WilmerHale

A premier international law firm with deep expertise in Corporate Venture Capital, WilmerHale operates at the nexus of government and business. Contact whlaunch@wilmerhale.com to explore how they can support your CVC strategy.

 

FinStrat Management

FinStrat Management is a premier outsourced financial operations firm specializing in accounting, finance, and reporting solutions for early-stage and investor-backed companies, family offices, high-net-worth individuals, and venture funds.

The firm’s core offerings include fractional CFO-led accounting + finance services, fund accounting and administration, and portfolio company monitoring + reporting. Through hands-on financial leadership, FinStrat helps clients with strategic forecasting, board reporting, investor communications, capital markets planning, and performance dashboards. The company's fund services provide end-to-end back-office support for venture capital firms, including accounting, investor reporting, and equity management.

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FinStrat also produces The Innovators & Investors Podcast, a platform that showcases conversations with leading founders, VCs, and ecosystem builders. The podcast is designed to surface real-world insights from early-stage operators and investors, with the goal of demystifying what drives successful startups and funds. By amplifying these voices, FSM supports the broader early-stage ecosystem, encouraging knowledge-sharing, connectivity, and more efficient founder-investor alignment.

 


 

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