Framework · Agrawal, Gans & Goldfarb · 2018

Prediction Machines

Economic thesis that AI cheapens prediction, raising the value of complementary judgement and data.

Best for

Boards and strategists framing the economics of AI.

Limitations

Theoretical, not operational. No prescriptions for build, deploy, or govern.

Ratings

StrategyFull ✅
ProductFull ✅
EnterprisePartial ◐
AgentsNone ❌
TechnicalNone ❌

The SCOI verdict

Sets the economic intuition SCOI operationalises across the supply chain.