The Economics of Intelligence
summary
Claim: processing 1 million tokens falls from $60 to $0.40, making thinking 99% cheaper, so intelligence becomes ubiquitous. Value migrates to complements: judgment trust and direction are scarce, companies bet on proprietary data, distribution and real‑time feedback loops, not raw models. Example: an enterprise rolled out 10,000 AI co‑pilot licenses but shows no change in decision making because workflows remain unchanged. Recommendation: redesign processes around new capabilities, pick and realize the right AI outputs, and teach asking better questions and long‑term direction.
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chapters (6)
- 0:00Start
- 1:24Why intelligence is becoming abundant
- 3:25How value shifts when intelligence becomes cheap
- 5:33The three scarcities: judgment, trust and direction
- 8:27What businesses are really betting on
- 10:35What leaders, workers and students should do next
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