PREFACE: SUCCESS FROM AWAY?

When we published Prediction Machines in 2018, we thought we had said all we needed to on the economics of AI. We were wrong.

Although we fully realized the technology would continue to evolve—AI was still in its infancy—we knew that the underlying economics would not. That’s the beauty of economics. Technologies change, but economics doesn’t. We laid out a framework for the economics of AI in that book, which remains useful today. However, the Prediction Machines framework only told part of the story, the point solutions part. In the years since, we discovered that another key part of the AI story had yet to be told, the systems part. We tell that story here. How did we miss it in the first place? We wind the tape ...

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