The Prediction Economy 🔮

When you have a hammer, everything becomes a prediction problem. I may have gotten that one wrong, but when you have AI everything can become a prediction problem. AI is the new magic eight ball. 🎱

But seriously, AI is really good at prediction and it can be done for pretty cheap in most scenarios. That means the cost of prediction has gone down. That’s bad news for people that make a living based off prediction, but good news for people that are in the judgement game. Not judgement in the social media sense, otherwise we’d all be rich, but in the “choosing what to do with the predictions” sense. 👩‍⚖️👨‍⚖️

This is a great, quick piece on the impact AI can have on the economy and jobs by driving down the price of prediction. TL;DR: problems/tasks that we’re previously prediction based may become so and the value add will come from judgement, which at least for now still looks like the domain of humans. ⏳

Src: Harvard Business Review