WorkLab Economist Tyler Cowen on the positive side of AI negativity
Jan 7, 2026
Tyler Cowen, an economist and author, joins to discuss the complexities of AI adoption in workplaces and education. He explores why discomfort can signal progress, presenting a counterintuitive perspective on change. Cowen emphasizes the importance of teaching AI literacy and interpersonal skills in higher education. He also predicts that energy and biomedicine will drive job creation. With insights on managing employee morale amid AI advancements, Cowen illustrates how personal skills will become essential in the evolving job market.
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AI And Biomedicine End The Great Stagnation
- Tyler Cowen argues AI and biomedicine are ending the prior era of stagnation and returning us to real progress.
- He notes many people prefer stagnation because predictability feels comforting even if growth is slower.
Chess Progress Illustrated AI's Potential
- Cowen recalls observing chess computers' rapid improvement from the 1970s to Deep Blue beating Kasparov in 1997.
- He uses chess as evidence computers can handle intuition, foreshadowing modern AI advances.
Legacy Institutions Are Poor AI Transformers
- Major existing institutions will struggle to reorganize around AI because deep structural change is required.
- Cowen predicts startups will build new AI-native firms that gradually become dominant over decades.
