AI + The New Human Frontier

CHAPTER 23Algorithmic Feudalism

Feudalism in medieval Europe was a way of structuring society around relationships derived from the holding of land in exchange for service or labor. Now, it could be argued that Silicon Valley represents a type of feudalism 2.0 in which stratified “caste-like” digital systems offer limited social mobility. In some cases, too, human labor is working to support omni-algorithms. The masses of serfs in feudal Europe provided the labor, and the owners of property reaped the profits. Today, the property is digital. Jobs of the future will rely heavily on the use of AI algorithms. Already we not only see algorithms automating much of Wall Street, but more financial analysts are likely to base their decisions on quantitative algorithms than qualitative research. More companies, particularly platform businesses, are developing and leveraging algorithms to direct, control, and manage human behavior—most doing so with little to no direct competition or oversight. Omni-algorithms have become much of the infrastructure on which the world will function.

The Rise of Omni-Algorithms

Computers—programmed by humans to provoke a wanted response—are, in many cases, effectively in charge of human actions. This is particularly true of jobs in the collaborative economy (e.g., Lyft, Uber, and Taskrabbit). Some argue that we are entering an “algorithmic economy,” a future in which machines govern everything from which jobs we will hold, how effective we are in them, ...