Especially these Circumstances.

I joined @GoogleDeepMind to develop a research program on the economics of AGI. Today, together with Andrew Koh (@andrewjkoh) and Shane Legg (@ShaneLegg), we are incredibly excited to release The Economics of Intelligence, the first in a series of projects from our group on how AGI will change the economy. How do capability improvements transform the economy, and when? In this project, we define thresholds of economic capabilities, e.g., minimal AGI, based on how they transform the economy. We then track how the economy–market structure, employment, and wages–changes during the transition across capability regimes. We have seen exponential increases in what AI agents can do but the broader economy seems almost remarkably unchanged. Part of the reason is that the solo AI agent is the wrong economic object; economic transformation is an equilibrium outcome where organizations compete. Looking at how intelligence functions within organizations, transformation will depend on when two key capability thresholds are crossed: competence (gains on individual skills, e.g., coding, math) and coordination (gains on ability of agents to cooperate and work together). We show that what economic transformation looks like depends on whether AI becomes supercompetent, supercooperative, or both—the regime of artificial superintelligence (ASI). Tracking this transition shows why the real visible transformation may come from improvements in coordination—a capability most benchmarks don’t yet track. Past a certain threshold, AI capabilities can break the Coasian ceiling on firm size and lead to an economy that looks drastically different than the one we see today. Two main takeaways: 1. To understand the path of transformation, we should be tracking agentic coordination more closely. 2. The impact of AI will likely show up in wages before market structure or employment. We are really excited about this paper. Excited to hear people’s thoughts. Link: institute.deepmind.com/essay…

This is one of the most important pieces of social science on human and AI interaction that I’ve seen in some time. Experts follow agentic advice the vast majority of the time (causally), but only a tiny fraction credit the agent—majority think they came to decision on their own volition. Reminds me of the classic Nisbett and Wilson study on people following outside influence without realizing it “ But as more work is handed to AI—including AI safety research—these judgment calls are the main levers for people's own values to influence outcomes. If people defer to AI without noticing, then "human in the loop" might provide less assurance than people expect.”