Skip to content
FREE SHIPPING ON ALL DOMESTIC ORDERS $35+
FREE SHIPPING ON ALL US ORDERS $35+
Prediction Machines, Updated and Expanded: The Simple Economics of Artificial Intelligence - Hardcover | Diverse Reads

Prediction Machines, Updated and Expanded: The Simple Economics of Artificial Intelligence

Availability:
in stock, ready to be shipped
Save 13% Save 13%
$30.00
$30.00 - $30.00
$30.00
$25.99
$25.99 - $25.99
$25.99
Named one of "The five best books to understand AI" by The Economist

The impact AI will have is profound, but the economic framework for understanding it is surprisingly simple.

Artificial intelligence seems to do the impossible, magically bringing machines to life—driving cars, trading stocks, and teaching children. But facing the sea change that AI brings can be paralyzing. How should companies set strategies, governments design policies, and people plan their lives for a world so different from what we know? In the face of such uncertainty, many 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 masterful stroke, they lift the curtain on the AI-is-magic hype and provide economic clarity about the AI revolution as well as a basis for action by executives, policy makers, investors, and entrepreneurs.

In this new, updated edition, the authors illustrate how, when AI is framed as cheap prediction, its extraordinary potential becomes clear:

  • Prediction is at the heart of making decisions amid uncertainty. Our businesses and personal lives are riddled with such decisions.
  • Prediction tools increase productivity—operating machines, handling documents, communicating with customers.
  • Uncertainty constrains strategy. Better prediction creates opportunities for new business strategies to compete.

The authors reset the context, describing the striking impact the book has had and how its argument and its implications are playing out in the real world. And in new material, they explain how prediction fits into decision-making processes and how foundational technologies such as quantum computing will impact business choices.

Penetrating, insightful, and practical, Prediction Machines will help you navigate the changes on the horizon.

ISBN-13: 9781647824679

Media Type: Hardcover

Publisher: Harvard Business Review Press

Publication Date: 11-15-2022

Pages: 304

Product Dimensions: 6.30(w) x 9.30(h) x 1.00(d)

Ajay Agrawal is Professor of Strategic Management and the Geoffrey Taber Chair in Entrepreneurship and Innovation at the Universityof Toronto's Rotman School of Management. He is founder of the Creative Destruction Lab and the Metaverse Mind Lab and cofounder of NEXT Canada and Sanctuary.Joshua Gans is the Jeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship and Professor of Strategic Management at Toronto's Rotman School of Management. He is Chief Economist of the Creative Destruction Lab, department editor (Strategy) at Management Science, and cofounder and managing director of Core Economic Research.Avi Goldfarb is the Rotman Chair in Artificial Intelligence and Healthcare and Professor of Marketing at Toronto's Rotman School of Management. He is also Chief Data Scientist at the Creative Destruction Lab, a fellow at Behavioral Economics in Action at Rotman, and a faculty affiliate at the Vector Institute for Artificial Intelligence.

Table of Contents

Preface to the Updated Edition ix

Acknowledgments xi

1 Introduction: Machine Intelligence 1

2 Cheap Changes Everything 7

Part 1 Prediction

3 Prediction Machine Magic 23

4 The Job of Prediction 31

5 Why It's Called Intelligence 45

6 Data Is the New Oil 57

7 The New Division of Labor 67

Part 2 Decision-Making

8 Unpacking Decisions 85

9 The Value of Judgment 95

10 Predicting Judgment 107

11 Taming Complexity 115

12 Fully Automated Decision-Making 123

13 What's at Stake? 133

Part 3 Tools

14 Deconstructing Workflows 147

15 Decomposing Decisions 157

16 Job Redesign 165

Part 4 Strategy

17 AI in the C-Suite 179

18 When AI Transforms Your Business 191

19 Your Learning Strategy 203

20 Managing AI Risk 221

Part 5 Society

21 Beyond Business 235

Notes 251

Index 267

About the Authors 279