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Artificial intelligence dues the seemingly impossible, magically bringing machines to life—driving cars, trading stocks, and teaching children. But facing the sea change that AI will bring can be paralyzing. How should companies set strategies, governments design policier, and people plan their lives for a world so different from what we know ? In the face of such uncertainry, many analysts either cower in fear or predict an impossibly sunny future.
But in Prediction Machines, three eminent economists recast the rise of AI as a drop in the cost of prediction. With this single, masterful stroke, they lift the curtain on the AI-is-magic hype and show how basic tools from economics provide clarity about the AI revolution and a basis for action by CEOs, managers, policy makers, investors, and entrepreneurs. When AI is framed as cheap prediction, its extraordinary potential becomes clear.