Namedoneof“ThefivebestbookstounderstandAI“byTheEconomistTheimpactAIwillhaveisprofound,buttheeconomicframeworkforunderstandingitissurprisinglysimple.Artificialintelligenceseemstodotheimpossible,magicallybringingmachinestolife--drivingcars,tradingstocks,andteachingchildren.ButfacingtheseachangethatAIbringscanbeparalyzing.Howshouldcompaniessetstrategies,governmentsdesignpolicies,andpeopleplantheirlivesforaworldsodifferentfromwhatweknow?Inthefaceofsuchuncertainty,manyeithercowerinfearorpredictanimpossiblysunnyfuture.ButinPredictionMachines,threeeminenteconomistsrecasttheriseofAIasadropinthecostofprediction.Withthismasterfulstroke,theyliftthecurtainontheAI-is-magichypeandprovideeconomicclarityabouttheAIrevolutionaswellasabasisforactionbyexecutives,policymakers,investors,andentrepreneurs.Inthisnew,updatededition,theauthorsillustratehow,whenAIisframedascheapprediction,itsextraordinarypotentialbecomesclear:Predictionisattheheartofmakingdecisionsamiduncertainty.Ourbusinessesandpersonallivesareriddledwithsuchdecisions.Predictiontoolsincreaseproductivity--operatingmachines,handlingdocuments,communicatingwithcustomers.Uncertaintyconstrainsstrategy.Betterpredictioncreatesopportunitiesfornewbusinessstrategiestocompete.Theauthorsresetthecontext,describingthestrikingimpactthebookhashadandhowitsargumentanditsimplicationsareplayingoutintherealworld.Andinnewmaterial,theyexplainhowpredictionfitsintodecision-makingprocessesandhowfoundationaltechnologiessuchasquantumcomputingwillimpactbusinesschoices.Penetrating,insightful,andpractical,PredictionMachineswillhelpyounavigatethechangesonthehorizon.
