AI Just Gave You Superpowers — Now What?

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The a16z Show 1h 6m 2 speakers 8 chapters transcribed 1 month ago
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What does the “Some Simple Economics of AGI” paper reveal about AI’s impact on work?

Eddy Lazzarin 0:00
You've just been told you have superpowers. You've just been told you can have multiple employees for $200 a month. What do you do? If I was a young person today, starting off my career, I would try to convince my parents to give me some money to harness a huge swarm of computers and see like, can I spend $5,000 of compute productively? That's the challenge. We've been talking about a meme sort of in tech world for years now. The idea of like the one person billion dollar startup, right? Yeah. Is this not how that happens? What we're describing is exactly how that happens. There's a new surplus. Learn to exploit it. That is the lesson for a young person.
Christian Catalini 0:37
The apprenticeship might be dead, but the real work is beginning.
Unknown 0:42
What happens when AI gives everyone the leverage of a team? In this episode, taken from Web3 with A16Z, Christian Catalini and Eddie Lazarin unpack what that means for work, startups, and ambition. Let's get into it.
Robert Hackett 1:00
Hi, everybody. We're here with Christian Catalini, who's the co-founder of LightSpark and founder of the MIT Crypto Economics Lab, as well as Eddie Lazarin. And we're here to talk about a new economics paper that Christian published called Some Simple Economics of AGI. Christian, I think the title of this paper is slightly misleading in that it's actually not incredibly simple. It's more than 100 pages long, and there are many complex mathematical formula involved. Maybe some of the insights you've managed to distill down into a simple kind of framework for people to understand things. But, you know, over the course of 100 pages, there is a lot of complexity also in your analysis. So I'd love to ask, what began you on this journey?
Robert Hackett 1:46
to investigate the economic relationship of AI and the world we live in right now, the robots and the humans.
Christian Catalini 1:53
Yeah, I would say it was born like probably many others at the same time out of a semi-existential crisis. We're all grappling with the fast pace of progress and just how quickly everything is moving. I'm an optimist, so look at all of this and can see kind of at the end of the arc, really amazing things. But the fundamental question was like, what are we going to do? What should we focus on? What's worth of our attention, effort, and time? Especially in this phase where we still, I think, have a meaningful shot at influencing the trajectory and really the technology. So we wrote, actually, some months ago, a piece on... measurement and the basic idea of that piece was like anything that can be measured will be automated which doesn't sound like good news but this second paper was really centered around okay if that is true let's take that initial assumption to the limit what would the economy look like what will the nature of labor look like what should startups do what should incumbents do and essentially what will the future look like now we did a similar exercise back in 2013 when i went down the crypto rabbit hole we wrote a simple economics of the blockchain
Christian Catalini 2:58
The simple in the title is just a trick. If you make it too intimidating, people will not read it. But very much like that time, look, some things will be right, some things will be wrong. Hopefully we got it directionally right. And part of the exciting phase right now is it's in the wild and people are kind of seeing what
Robert Hackett 3:13
resonates and what doesn't. Even so, you have managed to distill down the findings in a way that people can get a handle on pretty reliably well. You even have little short branded ways of understanding the existential crises that we all face, such as the codifier's curse and several other of these kinds of labels that you've invented to describe the world we're entering. Let me just ask you, though, you said this stemmed from an existential crisis. How were you feeling psychologically? What is your state? Great. Are you sweating? Are you happy? You feel good? Absolutely.
Christian Catalini 3:47
I think it was a long journey. It was many, many months of kind of thinking about some of these fundamental concepts. It came out, and I think my co-authors too, with a feeling that, first of all, this is a technology that is under our control, still at this point.

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