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Luca Silipo's avatar

I find myself in the uncomfortable position of wholeheartedly agreeing with EVERYTHING you said in this beautiful, beautifully written post.

AI, instead of (or before) killing us all, will kill gullible businesses that have splurged on a technology with an extremely thin business case. And now those early splurgers are being told:

- that they have been lied to all along (https://www.forbes.com/sites/zacharyfolk/2026/09/13/dario-amodei-says-ai-industry-lied-about-technologys-risks/): see you in court;

- that the technology they were so swift and proud to integrate into all of their system can actually destroy them from within. On a whim and just for fun.

I'd say well done (the Chinese have a perfect saying for this: 活该, or hougai, something like 'serve you right' but much more brisk and crisp, typically Chinese). That's what happens when you herd like an imbecile and throw money at a new technology (1.3USD tn between 2013 and 2024, one year of the Netherlands' GDP) without asking what it is, how it will change, or whether there's even a business case that bears the faintest resemblance to your needs. For all the sanctity of 'shareholder value' pundits fill their mouths with, one would have thought they might respect their shareholders’ money more. Except that shareholders are just as gullible and throw their (not-so-) hard-earned money into buying shares of every company whose name contains the letters 'a' and 'i' in sequence.

The winners will be those who understand the technology better and ask themselves — and OpenAI and the others — the hard questions. Then they will get answers, look at their business model, and know exactly where AI can improve it, where it is overreach, and where it is simply a waste of money. So perhaps, only the AI itself....

Your productivity argument is even more interesting. Aside from the fact that I find myself working much more and longer hours assisting AI, I increasingly believe that, as you fear, AI will indeed reveal the 'worst adverse productivity shock we have ever suffered'. AI makes us work more, under the false pretence that we can make more when AI assists us. We produce more. But we have to stop producing. We have to stop making things. We have enough and too much, and we buy and throw away things we don't need. U.S. consumers spend 95% of their disposable income, and most of that spending is impulse buying (https://www.fool.com/money/research/wasteful-spending-statistics/). Your idea of a forced return to analogue is fascinating, but I am afraid, very optimistic.

Finally, on education, you are spot on. If AI will indeed kill us, it will not do so by taking control of flights, poisoning the air, or all the other ludicrous ideas I have read about around... The idea that if we contain AI from 'going rogue' we can avoid disaster is gullible and ridiculous. AI has had plenty to kill us for a long time: by making us and our children ignorant, killing their curiosity, the spirit of research, and the frissons of new ideas.

The only frissons that remain are those when Altman suspends (of course not 'cancel') the deployment of its new model, or when Google (mistakenly?) names its new Gemini model Argon, or 'lazy'.

But don't fret. These futile, fleeting emotions will soon disappear anyway.

KeynesmeetsHayek's avatar

Marco, I am so glad you suppressed the urge to write about bond yields this week.

I find a lot of good takes on yields in my substack and x feeds and, dare I say, even in mainstream media and the halls of central banks.

But I haven't seen as incisive, eloquent,.and hard-hitting a take on the AI scare, not even in your prior excellent posts.

Yes,.the "human capital" involved on the AI side is of peculiar nature. My hope is that after the massive overreach of similarly dubious intellectual and scientific "leaders" in the not so far away past, the general public, if not political leaders, have adopted an appropriately skeptical frame of mind.

But that only goes so far. There are real issues to be concerned about AI and you name them; and I found your wider-ranging point about what message we are sending to the young curuious minds on which humanity's future advance depends particularly novel and on point.

And then,.coming back down to macro-earth, there is of course that small issue how the sky-high hyper-scaling spending could even remotely happen in a real economy, and what would happen if it didn't.

Oops, I guess I just wandered into bond-yield territory...

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