Disruption resulting from the proliferation of AI is coming. The authors of the bestselling
Prediction Machines can help you prepare. Artificial intelligence (AI) has impacted many
industries around the world—banking and finance pharmaceuticals automotive medical
technology manufacturing and retail. But it has only just begun its odyssey toward cheaper
better and faster predictions that drive strategic business decisions. When prediction is
taken to the max industries transform and with such transformation comes disruption. What is
at the root of this? In their bestselling first book Prediction Machines eminent economists
Ajay Agrawal Joshua Gans and Avi Goldfarb explained the simple yet game-changing economics of
AI. Now in Power and Prediction they go deeper examining the most basic unit of analysis:
the decision. The authors explain that the two key decision-making ingredients are prediction
and judgment and we perform both together in our minds often without realizing it. The rise
of AI is shifting prediction from humans to machines relieving people from this cognitive load
while increasing the speed and accuracy of decisions. This sets the stage for a flourishing of
new decisions and has profound implications for system-level innovation. Redesigning systems of
interdependent decisions takes time—many industries are in the quiet before the storm—but when
these new systems emerge they can be disruptive on a global scale. Decision-making confers
power. In industry power confers profits in society power confers control. This process will
have winners and losers and the authors show how businesses can leverage opportunities as
well as protect their positions. Filled with illuminating insights rich examples and
practical advice Power and Prediction is the must-read guide for any business leader or
policymaker on how to make the coming AI disruptions work for you rather than against you.
