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Why You Should Read “Power and Prediction: The Disruptive Economics of Artificial Intelligence” by Ajay Agrawal, Joshua Gans, Avi Goldfarb

Fahri Karakas
7 min readDec 14, 2024
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The Michael Jordan Moment That Changes Everything

Imagine it’s 1986, and Michael Jordan faces a career-defining decision. He’s nursing a broken foot, the playoffs are looming, and the weight of the Chicago Bulls’ future rests on his shoulders.

Should he play and risk permanent injury, or sit out and potentially miss the opportunity of a lifetime?

Now imagine the same scenario, but with one crucial difference: AI-powered prediction technology providing precise odds of re-injury, performance impacts, and long-term consequences. The decision is still Jordan’s to make, but he’s armed with unprecedented predictive insight.

This scenario, highlighted in “Power and Prediction: The Disruptive Economics of Artificial Intelligence” by Ajay Agrawal, Joshua Gans, and Avi Goldfarb, perfectly encapsulates why their book is arguably the most important text on AI you’ll read this year.

It’s not about AI replacing human decision-making — it’s about something far more revolutionary: the decoupling of prediction from judgment.

The False Dichotomy That’s Been…

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Fahri Karakas
Fahri Karakas

Written by Fahri Karakas

Associate Professor in Business & Leadership at University of East Anglia. Passionate about doodling, imagination, and creativity. Author of Self-Making Studio.

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