How GenAI Changes the Economics of Knowledge

July 10, 2024

At our 2024 event, Leveraging AI, John Sviokla of GAI Insights delivered this short talk on how generative AI changes the economics of knowledge. You can download Sviokla’s slides below.

Sviokla opened his talk by saying:

“My grandparents came over and worked in the shoe factories in Brockton, Mass. — three out of the four of them — and the shoe factories went away. And why’d they go away? Some of it was labor cost arbitrage. The other is they didn’t automate fast enough. And I’m here to tell you that I believe we’re at a moment in time with generative AI that I call a Henry Ford moment, where we are talking about radically new management of knowledge in combination with automation… Effect. And it is completely changing the economics of knowledge, and the liquidity of knowledge or ability to apply it, how it scales, can you guys hear in the back where it is, and so forth. And we’ve never seen anything like this, I think, since Fred Taylor, who I’ll speak to in a minute. The second thing is…we are just at the very, very beginning of executive teams beginning to understand what the possibility space is here. The biggest problem I see in organizations is people know the word [and] they feel emotional about the idea. And they have no earthly idea what it really does. So I think we have to think of this more like the quality movement, which was an infusion of capability and understanding broadly through the organization, and the ability to self organize, and go after business value in an organized federated way, not another IT project. And we are just at the beginning of that. And the last thing is — always remember — this is the dumbest AI you will ever use.”

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