Named one of amp34The five best books to understand AIamp34 by The EconomistThe impact AI will have is profound but the economic framework for understanding it is surprisingly simple.Artificial intelligence seems to do the impossible magically bringing machines to lifedriving cars trading stocks and teaching children. But facing the sea change that AI brings can be paralyzing. How should companies set strategies governments design policies and people plan their lives for a world so different from what we know In the face of such uncertainty many either cower in fear or predict an impossibly sunny future.But in Prediction Machines three eminent economists recast the rise of AI as a drop in the cost of prediction. With this masterful stroke they lift the curtain on the AIismagic hype and provide economic clarity about the AI revolution as well as a basis for action by executives policy makers investors and entrepreneurs.In this new updated edition the authors illustrate how when AI is framed as cheap prediction its extraordinary potential becomes clearPrediction is at the heart of making decisions amid uncertainty. Our businesses and personal lives are riddled with such decisions.Prediction tools increase productivityamp8212operating machines handling documents communicating with customers.Uncertainty constrains strategy. Better prediction creates opportunities for new business strategies to compete.The authors reset the context describing the striking impact the book has had and how its argument and its implications are playing out in the real world. And in new material they explain how prediction fits into decisionmaking processes and how foundational technologies such as quantum computing will impact business choices.Penetrating insightful and practical Prediction Machines will help you navigate the changes on the horizon.