The AI Economist: The Skill You Need to Stay Employed in the Age of AI | Ajay Agrawal

23 snips

Oct 2, 2025

In a fascinating discussion, Ajay Agrawal, an AI economist and professor, unpacks the intricate relationship between AI and the economy. He draws parallels between AI and the historical adoption of electricity, emphasizing the slow yet transformative impact on productivity. With a focus on the evolving job market, he warns that entry-level positions face the greatest threat while advocating for judgment as the essential skill for future success. Agrawal also highlights the need for educational reforms to prepare graduates for an AI-driven landscape.

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INSIGHT

AI Is Underrated, Not Overhyped

Ajay Agrawal argues AI is not overhyped but its full impact is hard to grasp and will take time.
He expects AI to be transformational across the economy, though adoption speed will vary.

INSIGHT

Co-Invention Drives Big Gains

Agrawal explains transformational gains come from co-invention, not just plugging in new tech.
Early adoption yields small gains until workflows and designs get rebuilt around the technology.

ADVICE

Use AI Early To Build Feedback Loops

Start using AI now because it learns from use and creates feedback loops that improve performance.
Avoid ignoring AI to prevent falling behind competitors who gather usage data.

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In this episode of I’ve Got Questions, I sit down with leading AI economist, professor and author Ajay Agrawal to unpack whether AI is truly overhyped or if we’re fundamentally underestimating its long-term impact on the economy. We explore the historic parallels between AI and past pivotal moments in history, the risk of a bubble bursting in this economy and what it means for the future of work. We dive into how generative AI is already reshaping the labor market and how we can expect our jobs to evolve. We explore the impact of AI on new college graduates and how education institutions must adapt to prepare people for jobs that don’t look anything like the ones we know today. And Ajay shares the single most important skill to thrive in the future of work. 0:00 – Introduction 2:04 – Is AI Overhyped or Misunderstood? 3:39 – What Electricity Can Teach Us About AI’s Slow Start 6:22 – How Small Tweaks Triggered 500% Productivity Gains 10:25 – The Next “Amazons” Will Be AI-First Companies—But Who Wins? 13:24 – Are We Building a Data Center Bubble? 16:06 – What Happens If the “Magnificent Seven” Crash? 18:00 – Why Today’s AI Could Already Reshape Every Industry 20:12 – The Truth About Artificial General Intelligence (AGI) 23:00 – Why Entry-Level Jobs Are Disappearing First 27:05 – The #1 Skill Machines Can’t Replace 34:00 – Education’s Shift from Reading to Doing 39:01 – Rethinking the Knowledge Economy in the AI Age 43:00 – The Real Division of Labor Breakdown 47:05 – How AI Will Collapse Workflows and Redesign Industries 50:15 – What Happens To Professions on the Brink of Reinvention 52:30 – Will AI Create a Fairer Job Market or Widen the Gap? Follow my work here: Website: https://www.sineadbovell.com Substack: https://sineadbovell.substack.com/ Instagram: https://www.instagram.com/sineadbovell LinkedIn: https://www.linkedin.com/in/sineadbovell Twitter / X: https://twitter.com/SineadBovell YouTube: https://www.youtube.com/Sineadbovell TikTok: https://www.tiktok.com/sineadbovell