Prediction Machines: The Simple Economics of Artificial Intelligence
AI & Automation

Prediction Machines: The Simple Economics of Artificial Intelligence

Ajay Agrawal, Joshua Gans & Avi Goldfarb· Published 2022

An economic framework for understanding AI, framing the technology as a drop in the cost of prediction and exploring its impact on decision-making.

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Why It's On My Shelf

By treating AI as an economic shift rather than a technical breakthrough, this book clarifies where value is really created. Cheap prediction increases the importance of judgment, incentives, and workflow design. CIOs can apply this lens when deciding what to automate and where human expertise becomes more valuable, not less.

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