Lecture Notes on AI and Job Disruption

Context and Importance of the Date

• Date: August 28, 2024.
• Significance: NVIDIA is reporting its earnings post-market.
• Market Impact: AI is a major market driver since OpenAI's ChatGPT introduction in Nov 2022.

AI's Influence in the Market

• AI Revolution: Recognized as a revolutionary change in the market.
• Potential Winners and Losers:
  • Anointed winners: NVIDIA, Microsoft.
  • Many companies using AI as a pretext, potential wannabes and losers exist.

Personal Disruption by AI

• AI Job Threat: Article mentioning job replacement by AI, with predictions by Marc Andreessen.
• Example: Personal experience with a "Demodaran bot" created by a colleague to value companies.
  • The bot has consumed personal writings, videos, evaluations.
  • Upcoming contest: Bot vs. best student in company valuation.

Gauging AI's Threat to Jobs

• AI is a result of increasing computing power and data accumulation.
• Three Dimensions of AI Threat:
  • Mechanical vs. Intuitive/Adaptable Work
    • Mechanical work is more prone to AI replacement.
    • AI excels in predictable, rule-based environments (e.g., chess).
  • Rules-Based vs. Principles-Based Work
    • AI succeeds in rule-based disciplines.
    • Principle-based work is harder for AI to replicate.
  • Role of Bias:
    • Human bias can protect jobs as AI lacks subjective bias capability.

Strategies to Mitigate AI Disruption

• Develop Generalist Skills:
  • Importance of being a Renaissance person with broad skills.
• Emphasize Storytelling:
  • Connect numbers with stories for a stronger valuation process.
• Enhance Reasoning Abilities:
  • Avoid over-reliance on technology for answers.
  • Encourage reasoning to prevent skill atrophy.
• Embrace Empty Mind Time:
  • Creativity flourishes with time to think freely.
  • Historical insights often stem from unrelated thinking.

Final Thoughts on Staying Ahead of AI

• Adopt a Protective Strategy:
  • Maintain secrecy in work.
  • Seek system protection.
  • Develop personal moats similar to business strategies.
• Rediscover Human Aspects:
  • Focus on what makes us uniquely human to stay ahead of AI bots.

Conclusion

• Personal Reflection:
  • The speaker is in a unique position with publicly available work.
  • Stress on creating personal moats to remain relevant.
• Call to Action:
  • Encourage listeners to act as if a bot is coming for their job, and rediscover humanity to stay ahead.