economy
You're charging 2023 rates for work AI does in 40 minutes + 2 prompts to see your real exposure
Most of the world runs on inefficiency. Not broken-ness. Not stupidity. Gaps — between what something costs to produce and what the market will pay for it, between how fast information moves and how fast anyone acts on it, between what’s possible and what most people know is possible.
TL;DR
- The economy is built on exploiting 'gaps' or inefficiencies, not on fundamental brokenness or stupidity.
- These gaps include discrepancies in production costs versus market prices, information flow speed versus action speed, and the disparity between potential and known possibilities.
- AI is closing these inefficiencies at an extremely rapid pace, on the timescale of model releases rather than decades.
- Every time an inefficiency gap closes, three new ones emerge, fundamentally changing how work operates.
- A Polymarket bot demonstrated this by rapidly closing a pricing gap, turning $313 into nearly half a million dollars, while most users lost money.
- AI's impact categorizes into five types of newly exploitable inefficiencies, from speed gaps to knowledge asymmetry.
- Democratized AI access creates an illusion of democratized advantage, with a small percentage profiting while the majority do not.
- The rapid disruption means strategic plans must adapt to a world where disruption is constant.
- Identifying specific questions can help map an industry's future and anticipate value shifts.