"AI is fundamentally cheap prediction. Just as the internet made search and copying cheap, AI makes prediction cheap. When something becomes a commodity, the complements, the things that work alongside it, become more valuable. This includes compute power (benefiting Microsoft, Amazon, Google), unique data, and crucially, human judgment."
AI functions as a technology that makes prediction cheap, similar to how the internet commoditized search and copying. When prediction becomes a commodity, the economic value shifts to complementary assets that work alongside AI systems. These complements include compute infrastructure benefiting major cloud providers like Microsoft, Amazon, and Google, proprietary datasets that provide competitive advantages, and critically, human judgment for decision-making and oversight. Understanding this dynamic reveals where genuine value creation occurs in the AI economy—not in prediction itself, but in the scarce resources and capabilities that enhance or direct AI's predictive power.
Read at UX Magazine
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