Prediction Machines

Prediction Machines

Cheap changes everything -- The magic of prediction -- Why it's called intelligence -- Data is the new oil -- The new division of labor -- Unpacking decisions -- The value of judgment -- Taming complexity -- What machines can learn -- Fully ...

Author: Ajay Agrawal

Publisher:

ISBN: 1633695670

Category: Business & Economics

Page: 250

View: 148

Cheap changes everything -- The magic of prediction -- Why it's called intelligence -- Data is the new oil -- The new division of labor -- Unpacking decisions -- The value of judgment -- Taming complexity -- What machines can learn -- Fully automated decision-making -- Deconstructing workflows -- Decomposing decisions -- Job redesign -- AI in the C-suite -- When AI transforms your business -- Managing AI risk -- Beyond business
Categories: Business & Economics

Deep Learning and Artificial Intelligence for Your Organization

Deep Learning and Artificial Intelligence for Your Organization

Artificial intelligence does the seemingly impossible, magically bringing machines to life--driving cars, trading stocks, and teaching children.

Author: Timothy Raynor

Publisher: Independently Published

ISBN: 1723907707

Category:

Page: 436

View: 356

Artificial intelligence does 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 policies, and people plan their lives for a world so different from what we know? In the face of such uncertainty, 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: - Prediction is at the heart of making decisions under 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 structures and strategies to compete. Penetrating, fun, and always insightful and practical, Prediction Machines follows its inescapable logic to explain how to navigate the changes on the horizon. The impact of AI will be profound, but the economic framework for understanding it is surprisingly simple.
Categories:

The Economics of Artificial Intelligence

The Economics of Artificial Intelligence

Agrawal, Ajay, Joshua S. Gans, and Avi Goldfarb. 2018a. “Human Judgment and AI Pricing.” American Economic Association: Papers & Proceedings, 108:58–63. ———. 2018b. Prediction Machines: The Simple Economics of Artificial Intelligence.

Author: Ajay Agrawal

Publisher: University of Chicago Press

ISBN: 9780226613475

Category: Business & Economics

Page: 648

View: 946

Advances in artificial intelligence (AI) highlight the potential of this technology to affect productivity, growth, inequality, market power, innovation, and employment. This volume seeks to set the agenda for economic research on the impact of AI. It covers four broad themes: AI as a general purpose technology; the relationships between AI, growth, jobs, and inequality; regulatory responses to changes brought on by AI; and the effects of AI on the way economic research is conducted. It explores the economic influence of machine learning, the branch of computational statistics that has driven much of the recent excitement around AI, as well as the economic impact of robotics and automation and the potential economic consequences of a still-hypothetical artificial general intelligence. The volume provides frameworks for understanding the economic impact of AI and identifies a number of open research questions. Contributors: Daron Acemoglu, Massachusetts Institute of Technology Philippe Aghion, Collège de France Ajay Agrawal, University of Toronto Susan Athey, Stanford University James Bessen, Boston University School of Law Erik Brynjolfsson, MIT Sloan School of Management Colin F. Camerer, California Institute of Technology Judith Chevalier, Yale School of Management Iain M. Cockburn, Boston University Tyler Cowen, George Mason University Jason Furman, Harvard Kennedy School Patrick Francois, University of British Columbia Alberto Galasso, University of Toronto Joshua Gans, University of Toronto Avi Goldfarb, University of Toronto Austan Goolsbee, University of Chicago Booth School of Business Rebecca Henderson, Harvard Business School Ginger Zhe Jin, University of Maryland Benjamin F. Jones, Northwestern University Charles I. Jones, Stanford University Daniel Kahneman, Princeton University Anton Korinek, Johns Hopkins University Mara Lederman, University of Toronto Hong Luo, Harvard Business School John McHale, National University of Ireland Paul R. Milgrom, Stanford University Matthew Mitchell, University of Toronto Alexander Oettl, Georgia Institute of Technology Andrea Prat, Columbia Business School Manav Raj, New York University Pascual Restrepo, Boston University Daniel Rock, MIT Sloan School of Management Jeffrey D. Sachs, Columbia University Robert Seamans, New York University Scott Stern, MIT Sloan School of Management Betsey Stevenson, University of Michigan Joseph E. Stiglitz. Columbia University Chad Syverson, University of Chicago Booth School of Business Matt Taddy, University of Chicago Booth School of Business Steven Tadelis, University of California, Berkeley Manuel Trajtenberg, Tel Aviv University Daniel Trefler, University of Toronto Catherine Tucker, MIT Sloan School of Management Hal Varian, University of California, Berkeley
Categories: Business & Economics

Artificial Intelligence

Artificial Intelligence

He is the coauthor of Prediction Machines: The Simple Economics of Artificial Intelligence (Harvard Business Review Press, 2018) and the author of The Disruption Dilemma (2016). AVI GOLDFARB is the Ellison Professor of Marketing at the ...

Author: Harvard Business Review

Publisher: Harvard Business Press

ISBN: 9781633697904

Category: Computers

Page: 192

View: 951

Companies that don't use AI will soon be obsolete. From making faster, better decisions to automating rote work to enabling robots to respond to emotions, AI and machine learning are already reshaping business and society. What should you and your company be doing today to ensure that you're poised for success and keeping up with your competitors in the age of AI? Artificial Intelligence: The Insights You Need from Harvard Business Review brings you today's most essential thinking on AI and explains how to launch the right initiatives at your company to capitalize on the opportunity of the machine intelligence revolution. Business is changing. Will you adapt or be left behind? Get up to speed and deepen your understanding of the topics that are shaping your company's future with the Insights You Need from Harvard Business Review series. Featuring HBR's smartest thinking on fast-moving issues--blockchain, cybersecurity, AI, and more--each book provides the foundational introduction and practical case studies your organization needs to compete today and collects the best research, interviews, and analysis to get it ready for tomorrow. You can't afford to ignore how these issues will transform the landscape of business and society. The Insights You Need series will help you grasp these critical ideas--and prepare you and your company for the future.
Categories: Computers

Analytics in the Age of Artificial Intelligence The Why and the How of Using Analytics to Unleash the Power of Artificial Intelligence

Analytics in the Age of Artificial Intelligence  The Why and the How of Using Analytics to Unleash the Power of Artificial Intelligence

Ajay Agrawal's lecture, entitled “Prediction Machines: The Simple Economics of Artificial Intelligence,” given at the Rotman School at the University of Toronto on August 2, 2018. 194. Ibid. 195. It is anybody's guess when autonomous ...

Author: Priyo Chatterjee

Publisher: Atlantic Publishing Company

ISBN: 9781620237694

Category: Technology & Engineering

Page: 244

View: 486

Artificial Intelligence is a significant development in the technological landscape, and it is poised to be a veritable game-changer for all concerned. Given globalization and the winner-take-all market dynamics, there is a “superstar” effect at play in most markets, where a select few companies capture a lion’s share of the market, as well as the profit. Given this environment, Analytics goes from becoming a “good to have” to a “must have” if organizations are to take this opportunity to leverage the power of artificial intelligence and other adjacent technologies in an impactful manner. In this book, Priyo Chatterjee, drawing on his years of experience in the Analytics and Data Science space, takes a methodical approach to Analytics by first demonstrating why it has become so critical in “The Age of Artificial Intelligence.” Then he shows how companies can become more Analytical and, thereby, successful in deploying artificial intelligence strategies.
Categories: Technology & Engineering

Innovation Policy and the Economy 2018

Innovation Policy and the Economy  2018

In The Economics of Artificial Intelligence: An Agenda, ed. Ajay Agrawal, Joshua Gans, and Avi Goldfarb. Chicago: University of Chicago Press. First citation in text ———. 2018d. Prediction Machines: The Simple Economics of Artificial ...

Author: Josh Lerner

Publisher: University of Chicago Press

ISBN: 9780226645414

Category: Business & Economics

Page: 250

View: 297

This volume highlights the interaction between public policy and innovation. The first chapter documents the dramatic globalization of R&D and how this development has affected the efforts of U.S. multinationals to operate on the global technology frontier. The next chapter synthesizes research on the impact of trade shocks on innovation and explains how these shocks’ effects depend on the firms, industries, and countries affected. The third chapter examines the Advanced Research Projects Agency (ARPA) model of research management—an approach to funding and managing high-risk R&D—and offers a method for diagnosing which research efforts are “ARPA-able.” Next is a study of the Orphan Drug Act and the key changes in the U.S. healthcare landscape and in drug discovery and development since its passage in 1983. The next two chapters focus on artificial intelligence (AI). One describes how AI diffuses through the economy and discusses implications for economic inequality, antitrust, and intellectual property. The other investigates issues surrounding firm competition and labor force participation, such as data portability and a Universal Basic Income, and evaluates ways to address these issues.
Categories: Business & Economics

Artificial Intelligence in Economics and Finance Theories

Artificial Intelligence in Economics and Finance Theories

... Gans J, Goldfarb A (2018) Prediction machines: the simple economics of artificial intelligence. Harvard Business Review Press Akerlof GA (1970) The market for 'memons': quality uncertainty and the market mechanism.

Author: Tankiso Moloi

Publisher: Springer Nature

ISBN: 9783030429621

Category: Computers

Page: 125

View: 879

As Artificial Intelligence (AI) seizes all aspects of human life, there is a fundamental shift in the way in which humans are thinking of and doing things. Ordinarily, humans have relied on economics and finance theories to make sense of, and predict concepts such as comparative advantage, long run economic growth, lack or distortion of information and failures, role of labour as a factor of production and the decision making process for the purpose of allocating resources among other theories. Of interest though is that literature has not attempted to utilize these advances in technology in order to modernize economic and finance theories that are fundamental in the decision making process for the purpose of allocating scarce resources among other things. With the simulated intelligence in machines, which allows machines to act like humans and to some extent even anticipate events better than humans, thanks to their ability to handle massive data sets, this book will use artificial intelligence to explain what these economic and finance theories mean in the context of the agent wanting to make a decision. The main feature of finance and economic theories is that they try to eliminate the effects of uncertainties by attempting to bring the future to the present. The fundamentals of this statement is deeply rooted in risk and risk management. In behavioural sciences, economics as a discipline has always provided a well-established foundation for understanding uncertainties and what this means for decision making. Finance and economics have done this through different models which attempt to predict the future. On its part, risk management attempts to hedge or mitigate these uncertainties in order for “the planner” to reach the favourable outcome. This book focuses on how AI is to redefine certain important economic and financial theories that are specifically used for the purpose of eliminating uncertainties so as to allow agents to make informed decisions. In effect, certain aspects of finance and economic theories cannot be understood in their entirety without the incorporation of AI.
Categories: Computers

Prediction Machines

Prediction Machines

Simple. Economics. of. AI. Strategy. The changes we've highlighted depend on two different aspects of AI impact at the core of our economic framework. First, as in Amazon's shipping-then-shopping model, prediction machines reduce ...

Author: Ajay Agrawal

Publisher: Harvard Business Press

ISBN: 9781633695689

Category: Computers

Page: 272

View: 234

"What does AI mean for your business? Read this book to find out." -- Hal Varian, Chief Economist, Google Artificial intelligence does 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 policies, and people plan their lives for a world so different from what we know? In the face of such uncertainty, 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: Prediction is at the heart of making decisions under 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 structures and strategies to compete. Penetrating, fun, and always insightful and practical, Prediction Machines follows its inescapable logic to explain how to navigate the changes on the horizon. The impact of AI will be profound, but the economic framework for understanding it is surprisingly simple.
Categories: Computers

Artificial Intelligence in Society

Artificial Intelligence in Society

Agrawal, A., J. Gans and A. Goldfarb (2018), Prediction Machines: The Simple Economics of Artificial Intelligence, Harvard Business School Press, Brighton, MA. Autor, D. and A. Salomons (2018), “Is automation labor-displacing?

Author: OECD

Publisher: OECD Publishing

ISBN: 9789264545199

Category:

Page: 139

View: 884

The artificial intelligence (AI) landscape has evolved significantly from 1950 when Alan Turing first posed the question of whether machines can think. Today, AI is transforming societies and economies. It promises to generate productivity gains, improve well-being and help address global challenges, such as climate change, resource scarcity and health crises.
Categories:

The Economics of Digital Transformation

The Economics of Digital Transformation

Prediction Machines: The Simple Economics of Artificial Intelligence. Harvard Business Review Press. 90 Ammanath, B., Jarvis, D., and S. Hupfer. 2020. Thriving in the era of pervasive AI Deloitte's state of AI in the enterprise, ...

Author: Katarzyna Śledziewska

Publisher: Routledge

ISBN: 9781000423358

Category: Business & Economics

Page: 304

View: 320

The unprecedented Covid-19 crisis revealed the scale and scope of a new type of economy taking shape in front of our very eyes: the digital economy. This book presents a concise theoretical and conceptual framework for a more nuanced analysis of the economic and sociological impacts of the technological disruption that is taking place in the markets of goods and services, labour markets, and the global economy more generally. This interdisciplinary work is a must for researchers and students from economics, business, and other social science majors who seek an overview of the main digital economy concepts and research. Its down-to-earth approach and communicative style will also speak to businesses practitioners who want to understand the ongoing digital disruption of the market rules and emergence of the new digital business models. The book refers to academic insights from economics and sociology while giving numerous empirical examples drawn from basic and applied research and business. It addresses several burning issues: how are digital processes transforming traditional business models? Does intelligent automation threaten our jobs? Are we reaching the end of globalisation as we know it? How can we best prepare ourselves and our children for the digitally transformed world? The book will help the reader gain a better understanding of the mechanisms behind the digital transformation, something that is essential in order to not only reap the plentiful opportunities being created by the digital economy but also to avoid its many pitfalls.
Categories: Business & Economics