Power And Prediction audiobook cover - The Disruptive Economics of Artificial Intelligence

Power And Prediction

The Disruptive Economics of Artificial Intelligence

Ajay Agrawal, Joshua Gans & Avi Goldfarb

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Power And Prediction
Core Concept: Decoupling+
Real-World Applications+
Impact & Future Outlook+

Quiz — Test Your Understanding

Question 1 of 5
What does the concept of 'decoupling' refer to in the context of AI and decision-making?
  • A. Separating the act of prediction-making from the act of decision-making.
  • B. Replacing human judgment entirely with advanced AI algorithms.
  • C. Dividing business operations into automated and manual departments.
  • D. Isolating historical data from real-time predictive models.
Question 2 of 5
According to the text, how will the advancement of AI affect the role of human judgment?
  • A. Human judgment will gradually become obsolete as AI accuracy improves.
  • B. Human judgment will only be necessary for programming and maintaining AI systems.
  • C. Human judgment will become increasingly crucial as AI takes over predictive tasks.
  • D. Human judgment will be restricted strictly to creative and artistic industries.
Question 3 of 5
In the medical field example provided, what is the proper division of labor between AI and humans?
  • A. AI decides the treatment plan, while humans diagnose the tumors.
  • B. AI identifies tumors, while human experts choose the treatment plan.
  • C. AI communicates with the patient, while humans perform the predictive calculations.
  • D. AI manages hospital administration, while humans handle all diagnostic tasks.
Question 4 of 5
How does the car insurance example illustrate the partnership between AI and human judgment?
  • A. AI automatically reroutes the driver to the safest path, removing the need for human input entirely.
  • B. The driver predicts the safest route, and the AI judges how much to charge for the insurance policy.
  • C. AI predicts accident risks for different routes, and the driver uses judgment to choose their route and premium.
  • D. AI determines who is at fault in an accident, while the insurance company predicts the cost of repairs.
Question 5 of 5
How does the book suggest we should view AI in the workplace, rather than seeing it as an 'intimidating job-killer'?
  • A. As an independent executive capable of running companies autonomously.
  • B. As a human-optimizer that helps people make better decisions.
  • C. As a temporary trend that will soon be replaced by newer technologies.
  • D. As a strictly mathematical tool with no real-world business applications.

Power And Prediction — Full Chapter Overview

Power And Prediction Summary & Overview

Power And Prediction (2018) explores the impact of AI's advancements in prediction on decision-making processes, where AI handles the predictive elements and human judgment is important in their interpretation and application.

Who Should Listen to Power And Prediction?

  • AI enthusiasts
  • Business leaders
  • Career strategists

About the Author: Ajay Agrawal, Joshua Gans & Avi Goldfarb

Ajay Agrawal is a Professor of Strategic Management at the University of Toronto.

Joshua Gans is a Professor of Strategic Management and holder of the Jeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship at the University of Toronto's Rotman School of Management.

Avi Goldfarb is the Ellison Professor of Marketing at the University of Toronto's Rotman School of Management. They are all academic trailblazers specializing in technology strategy.

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