Power and Prediction

3 AI Is Prediction Technology

In our first book, Prediction Machines, we examined the simple economics of AI. We took all the potential complexity and hype regarding AI and reduced it to a single factor: prediction. Reducing an exciting new thing to its less sensational essence is a key tool in an economist’s playbook.

When people think about AI, they think about the intelligent machines littered throughout popular culture. They think of helpful robots such as R2-D2 or WALL-E. They think of brilliant teammates such as Data from Star Trek or J.A.R.V.I.S. from Iron Man. They also think of those that turned rogue like HAL 9000 from 2001 or Ultron from The Avengers. Whatever their quirks or intentions, these representations of AI have one thing ...