Platforms by its very nature pushes for commoditisation. AI can hasten it and do so in areas which hasn’t been touched yet. The example of expertise of Clinicians being augmented and thereafter being commoditised would mean nothing is out of its bounds. Platforms + AI = No jobs are safe. Once again the way you have analysed and modelled this is amazing.
Precisely! AI expands the domain of knowledge work that can be pushed to commoditization. For the first time, it is not just labor, but talent, that is being commoditized.
I see regulation, unions, laws, taxes , and general democracy getting involved in this sooner or later. Two computers suing each other for the benefit of the worker.
Agree that continuous regulation that follows the evolution of AI-augmented impact on industries seems to be the only solution here. However, my worry is more about the Competition Law, and the Weaponization of these Platform Tools- and there should be a Tax (akin to Carbon Tax) on the fact that these platforms are exploiting these natural monopolies and doing Restrictive Trade Practices and pocketing the income that results.
Having worked on shaping regulation for the platform economy, my experience suggests there are limits to how much regulation can address commoditization.
Regulation is most effective at addressing end-effects e.g. downward pressure on wages, employer vs contractor relationship etc.
Regulation is far less effective at addressing mechanics that play out over time through accelerating feedback loops. This is through no fault of the regulator. Regulating long-term commoditization involves regulating platform mechanics which essentially involves painting multiple future scenarios instead of one real current scenario. It is far more difficult to shape regulation in such a context. The other side can easily paint 5 other scenarios where they don't play out. The data for which scenarios win will only emerge going forward.
This is why regulating automation and proposing solutions in the short term is far simpler than regulating commoditization that plays out over time.
Continuous regulation is a possible solution but in order to do that you need continuous data monitoring, which is possible only through public digital infrastructure. India is taking a shot at such an approach and that's our best bet for getting this right with regulation.
Excellent as always, thanks Sangeet. I'm working with a client in the knowledge work domain (roughly trad. consulting), and they see this train coming but want to design ways to protect their workers as the train rolls through. McKinsey or other biggies might be happy to ultimately replace all human consultants, but this firm I'm supporting has a vision for always keeping human-in-the-loop.
Curious, do you see ways industries might be pro-worker, without things becoming contentious and fraught like with the recent actors and writers strikes and the like? Is there a way we can design systems of shared value for everyone, because ultimately this tech is coming for all of us, in one way or another.
We need to design shared goods from the surplus generated by tech. Traditionally, tax has been a way to do this but hasn't always proven effective and is rendered further ineffective through lobbying. Until we have a mechanism to divert the spoils of tech into shared goods, this will keep failing.
We need to understand that platforms are more feudalists than capitalists and that makes taxation of profits ineffective as a solution as platforms can keep charging rent while deferring profits. We need better ways to channelize that surplus towards shared goods.
Platforms by its very nature pushes for commoditisation. AI can hasten it and do so in areas which hasn’t been touched yet. The example of expertise of Clinicians being augmented and thereafter being commoditised would mean nothing is out of its bounds. Platforms + AI = No jobs are safe. Once again the way you have analysed and modelled this is amazing.
Precisely! AI expands the domain of knowledge work that can be pushed to commoditization. For the first time, it is not just labor, but talent, that is being commoditized.
Thoughtful and well reasoned- thank you.
Exceptional analysis 🧐 👏
I see regulation, unions, laws, taxes , and general democracy getting involved in this sooner or later. Two computers suing each other for the benefit of the worker.
a) more awarness needs to be created (the more difficult piece) and b) an AI-secure job insurance to be built (the more simple thing)
Agree that continuous regulation that follows the evolution of AI-augmented impact on industries seems to be the only solution here. However, my worry is more about the Competition Law, and the Weaponization of these Platform Tools- and there should be a Tax (akin to Carbon Tax) on the fact that these platforms are exploiting these natural monopolies and doing Restrictive Trade Practices and pocketing the income that results.
“Commoditization is inevitable when augmentation is at play.”
☝️
Wouldn’t regulation add friction to commoditization ?
Having worked on shaping regulation for the platform economy, my experience suggests there are limits to how much regulation can address commoditization.
Regulation is most effective at addressing end-effects e.g. downward pressure on wages, employer vs contractor relationship etc.
Regulation is far less effective at addressing mechanics that play out over time through accelerating feedback loops. This is through no fault of the regulator. Regulating long-term commoditization involves regulating platform mechanics which essentially involves painting multiple future scenarios instead of one real current scenario. It is far more difficult to shape regulation in such a context. The other side can easily paint 5 other scenarios where they don't play out. The data for which scenarios win will only emerge going forward.
This is why regulating automation and proposing solutions in the short term is far simpler than regulating commoditization that plays out over time.
Continuous regulation is a possible solution but in order to do that you need continuous data monitoring, which is possible only through public digital infrastructure. India is taking a shot at such an approach and that's our best bet for getting this right with regulation.
Public policy needs public technology.
It would for sure. Regulation will always be a follower but eventually it would give in.
Wonderful as always Sangeet. As an educator I am curious what do we teach and how donwe teach AI
Excellent as always, thanks Sangeet. I'm working with a client in the knowledge work domain (roughly trad. consulting), and they see this train coming but want to design ways to protect their workers as the train rolls through. McKinsey or other biggies might be happy to ultimately replace all human consultants, but this firm I'm supporting has a vision for always keeping human-in-the-loop.
Curious, do you see ways industries might be pro-worker, without things becoming contentious and fraught like with the recent actors and writers strikes and the like? Is there a way we can design systems of shared value for everyone, because ultimately this tech is coming for all of us, in one way or another.
We need to design shared goods from the surplus generated by tech. Traditionally, tax has been a way to do this but hasn't always proven effective and is rendered further ineffective through lobbying. Until we have a mechanism to divert the spoils of tech into shared goods, this will keep failing.
We need to understand that platforms are more feudalists than capitalists and that makes taxation of profits ineffective as a solution as platforms can keep charging rent while deferring profits. We need better ways to channelize that surplus towards shared goods.