Why AI coding is the new literacy | Andrew Ng

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Jul 1, 2025

In a thought-provoking discussion, AI pioneer Andrew Ng emphasizes that "AI coding is the new literacy" and sheds light on the need for democratizing AI creation. He explores why AI's creative potential remains largely untapped and predicts that future innovations will arise from widespread access to AI tools. Ng highlights the transformative effects of AI on knowledge work, the challenges of commercialization, and the importance of AI education. He also discusses the risks of bias and misinformation, advocating for transparency and fairness in AI development.

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INSIGHT

AI as General Purpose Tech

AI is a general purpose technology transforming many industries, similar to electricity a century ago.
The application layer offers vast creative and business opportunities beyond hardware or infrastructure.

ADVICE

Build Defensible AI Applications

Thin applications built on powerful AI APIs lack defensibility, resembling past flash-in-the-pan ideas.
Entrepreneurs should focus on building valuable, long-term AI-powered products like Airbnb or Uber.

INSIGHT

Economics of AI APIs

Generating text using GPT-3.5 Turbo API is extremely cost-effective, making AI services cheap for users.
Despite perceived user cost, cloud AI businesses remain highly profitable due to efficiency.

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This episode is part of our “Summer Selects” series—curated archival episodes that shifted our perspective and are worth revisiting.

Most people think of AI as a tool for experts and big tech. Andrew Ng argues that the real revolution begins when “AI coding is the new literacy”—and building AI moves from the hands of a few "high priests" to everyone.

In this archival episode of Strange Loop, AI pioneer and educator Andrew Ng joins Sana founder and CEO Joel Hellermark for a candid, wide-ranging conversation about what it means to democratize AI creation. Together, they explore why most of AI’s creative potential remains untapped, how the application layer will drive the next wave of innovation, and the urgent need to make AI literacy as universal as reading and writing.

What’s in this episode

Why “AI coding is the new literacy” and what that means for society
How the future of AI will be shaped by democratizing creation, not just consumption
The untapped creative potential in AI’s application layer
Lessons from past tech waves: moats, defensibility, and building lasting businesses
The economics and competition behind the large language model boom
How AI is transforming knowledge work, productivity, and who benefits
The real risks: bias, misinformation, concentration of power, and what to do about them
The future of AI education: personalized learning, AI tutors, and beyond

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Transcript: https://sanalabs.com/strange-loop/andrew-ng

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About Strange Loop

Strange Loop is a podcast about how artificial intelligence is reshaping the systems we live and work in. Each episode features deep, unscripted conversations with thinkers and builders reimagining intelligence, leadership, and the architectures of progress. The goal is not just to follow AI’s trajectory, but to question the assumptions guiding it.

Subscribe for more conversations at the edge of AI and human knowledge.

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Timestamps

(00:00:00) Are we still in the “radio show on TV” era of AI?

(00:03:20) Why application is AI’s biggest creative opportunity

(00:07:10) AI economics: cost, competition, and the new infrastructure

(00:12:45) Who wins in the age of AI-augmented knowledge work?

(00:17:15) The real risks: bias, misinformation, and concentrated power

(00:21:05) AI literacy and the democratization of building

(00:25:00) The future of AI education and what’s next for society

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Where to find Andrew

LinkedIn: https://www.linkedin.com/in/andrewyng
X (Twitter): https://x.com/AndrewYNg

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Where to find Joel

LinkedIn: https://www.linkedin.com/in/joel-hellermark/
X: https://x.com/joelhellermark