Tyler Cowen on Why AI Hasn't Changed the World Yet

Tyler Cowen on Why AI Hasn't Changed the World Yet – Odd Lots

Mentioned

Bullish

FINANCE— Finance sector is already being revolutionized by AI, with quants becoming more AI-equipped. These areas have low fixed costs and immediate feedback loops, making them prime for AI transformation.
PROG— Programming is experiencing significant AI revolution with claims that 80% of work is now done by AIs, representing one of the first industries to be transformed.
BIOTECH— Biomedical sector will see significant growth in testing and clinical trials as AI produces more potential medical innovations that need to be validated.
HC— Healthcare sector will expand significantly with new drugs and medical devices driven by AI innovations, plus increased spending as people live longer.
PLASTICS— Plastic surgery may benefit from AI revolution as personal presence and charisma become more valuable when other tasks are automated.

Bearish

INSURANCE— Insurance markets may unravel as big data and AI enable insurers to know too much about likely outcomes, destroying the risk-pooling model that makes insurance viable.
LAW— Law firms are extremely skittish about AI adoption due to privacy concerns and fiduciary responsibilities, creating barriers to transformation in the legal sector.

Not investment advice.