Odd Lots Tyler Cowen on Why AI Hasn't Changed the World Yet
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Nov 20, 2025 
Tyler Cowen, an economics professor and co-author of the Marginal Revolution blog, explores why AI's impact remains subtle despite its capabilities. He discusses the resistance of legacy firms to adopt new technologies and highlights sectors like programming and finance already transformed by AI. Cowen delves into the cautious approach of law firms regarding data privacy and the medical field's rapid advancements. He examines AI's influence on creativity in music, public discourse, and education, advocating for a balanced curriculum that includes AI alongside essential life skills.
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AI As Add-On, Not Overhaul
- AI today mostly augments existing workflows rather than replacing them outright.
- Major economic transformation requires new organizations built around AI, which will take decades.
Where AI Breaks Through First
- Programming and finance show the earliest deep AI integration due to low fixed costs and fast feedback.
- Competitive sectors with immediate revenue capture will be revolutionized first.
Host Your Own Models When Possible
- Firms should aim to control their own models to overcome privacy and subpoena concerns.
- Wait for cheaper, on-premise models so regulated sectors can safely adopt AI.
