Ep313 - Avi Goldfarb & Ajay Agrawal | Prediction Machines: The Simple Economics of AI
Talks at Google
00:00
Decision Making Is Not Prediction
We're trying to identify the things that become more valuable as prediction becomes cheap. And so in thinking through decision making, what we found it useful to do is put some structure around the components of a decision. We put prediction at the center because that's what's changed. But all sorts of other things are inputs into a final decision and an outcome. So your data is key. That's not news to most people here. Data is increasingly valuable because prediction is cheap and it's an input into prediction. Then the one of these that I want to talk about today is judgment. Judgment broadly speaking is knowing which predictions to make and what to do with those predictions once you have them.
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