The economics of artificial intelligence
When looking at artificial intelligence from the perspective of economics, we ask the same, single question that we ask with any technology: What does it reduce the cost of? Economists are good at taking the fun and wizardry out of technology and leaving us with this dry but illuminating question. The answer reveals why AI is so important relative to many other exciting technologies.
AI can be recast as causing a drop in the cost of a first-order input into many activities in business and our lives—prediction.