The AI Business Model is Wrong

AI decision support is potentially valuable to practitioners. Accountants might value an AI tool’s ability to draft a tax return. Radiologists might value the AI’s guess about whether an X-ray suggests a cancerous mass. But with AIs’ tendency to “hallucinate” and confabulate, there’s an increasing recognition that these AI judgments require a “human in the loop” to carefully review their judgments. In other words, an AI-supported radiologist...

 What Tech Bubbles Leave Behind

Tech bubbles come in two varieties: The ones that leave something behind, and the ones that leave nothing behind. Sometimes, it can be hard to guess what kind of bubble you’re living through until it pops and you find out the hard way. When the dotcom bubble burst, it left a lot behind. Walking through San Francisco’s Mission District one day in 2001, I happened upon a startup founder who was standing on the sidewalk, selling off a fleet of factory-wrapped Steelcase ...

 The Right to "Want What We Want to Want"

In a post about ad blockers on the University of Oxford’s “Practical Ethics” blog, the technology ethicist James Williams (of Time Well Spent) lays out the stakes: We experience the externalities of the attention economy in little drips, so we tend to describe them with words of mild bemusement like “annoying” or “distracting.” But this is a grave misreading of their nature. In the short term, distractions can keep us from doing the things we want ...

 The Insecure Overachiever

Exacerbating this problem, elite professional organizations deliberately set out to identify and recruit “insecure overachievers” — some leading professional organizations explicitly use this terminology, though not in public. Insecure overachievers are exceptionally capable and fiercely ambitious, yet driven by a profound sense of their own inadequacy. This typically stems from childhood, and may result from various factors, such as experience of financial or physical deprivation, or a...

 How the Finance Industry Hurts the Economy

In perhaps the starkest illustration, economists from Harvard University and the University of Chicago wrote in a recent paper that every dollar a worker earns in a research field spills over to make the economy $5 better off. Every dollar a similar worker earns in finance comes with a drain, making the economy 60 cents worse off. [...] ...the growth of complex financial products has served primarily to boost income for the firms themselves, Philippon said. A new paper from researchers in t...

 Why Economists Will Continue to be Wrong

Carter had initially used arbitrary parameters in his perfect model to generate perfect data, but now, in order to assess his model in a realistic way, he threw those parameters out and used standard calibration techniques to match his perfect model to his perfect data. It was supposed to be a formality--he assumed, reasonably, that the process would simply produce the same parameters that had been used to produce the data in the first place. But it didn't. It turned out that there were many ...