Prediction Machines
The Simple Economics of Artificial Intelligence
About the book
Cheaper prediction is the real effect of artificial intelligence, according to economists Ajay Agrawal, Joshua Gans and Avi Goldfarb, and framing it that way lets them apply familiar economic tools to cut through the hype. Because prediction sits at the center of decisions made under uncertainty, cheaper and more accurate forecasts change how firms operate and compete, opening room for new business structures and strategies. Judgment, they argue, remains a human task, so managers should split work into parts that call for prediction and parts that call for judgment. The authors offer the framework to chief executives, managers, policy makers, investors and entrepreneurs facing the changes ahead.
Former World Bank chief economist Lawrence Summers called it the best book yet written on AI, a technology he suggested may be the best to come along. Wired co-founder Kevin Kelly endorsed its framing of AI as a cheap new commodity, prediction.
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This book has 4 recommendations
Kevin Kelly (Co-Founder/Wired)
This book makes artificial intelligence easier to understand by recasting it as a new, cheap commodity--predictions. It's a brilliant move. I found the book incredibly useful.
Lawrence Summers (Chief Economist/World Bank)
AI may transform your life. And Prediction Machines will transform your understanding of AI. This is the best book yet on what may be the best technology that has come along.
Susan Athey (Former Consulting Researcher/Microsoft Research New England)
Prediction Machines is a path-breaking book that focuses on what strategists and managers really need to know about the AI revolution. Taking a grounded, realistic perspective on the technology, the book uses principles of economics and strategy to understand how firms, industries, and management will be transformed by AI.
Dominic Barton (Global Managing Partner/McKinsey & Company)
Prediction Machines achieves a feat as welcome as it is unique: a crisp, readable survey of where artificial intelligence is taking us separates hype from reality, while delivering a steady stream of fresh insights. It speaks in a language that top executives and policy makers will understand. Every leader needs to read this book.
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Kevin Kelly, Lawrence Summers, Susan Athey, Dominic Barton
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Ajay Agrawal, Joshua Gans, Avi Goldfarb