CHAPTER 9
A Simple Tool to Start Making Decisions with the Help of AI
by Ajay Agrawal, Joshua Gans, and Avi Goldfarb
There is no shortage of hot takes regarding the significant impact that AI is going to have on business in the near future. Much less has been written about how, exactly, companies should get started with it. In our research, we begin by distilling AI down to its very simplest economics, and we offer one approach to taking that first step.
We start with a simple insight: Recent developments in AI are about lowering the cost of prediction. AI makes prediction better, faster, and cheaper. Not only can you more easily predict the future (What’s the weather going to be like next week?), but you can also predict the present (what is ...
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