by Erik Brynjolfsson and Andrew McAfee · 20 Jan 2014 · 339pp · 88,732 words
ERIK BRYNJOLFSSON ANDREW MCAFEE To Martha Pavlakis, the love of my life. To my parents, David McAfee and Nancy Haller, who prepared me for the second machine
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/sites/default/files/cbofiles/attachments/44521-LTBO2013.pdf. 4. Robert Solow, “We’d Better Watch Out,” New York Times Book Review, July 12, 1987. 5. Erik Brynjolfsson, “The Productivity Paradox of Information Technology,” Communications of the ACM 36, no. 12 (1993): 66–77, doi:10.1145/163298.163309. 6. See, e.g
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., Erik Brynjolfsson and Lorin Hitt, “Paradox Lost: Firm Level Evidence on the Returns to Information Systems,” Management Science 42, no. 4 (1996): 541–58. See also Brynjolfsson
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Improvement at CVS (A),” Harvard Business Review, Case Study, 2005, http://hbr.org/product/pharmacy-service-improvement-at-cvs-a/an/606015-PDF-ENG. 16. Erik Brynjolfsson, Lorin Hitt, and Shinkyu Yang, “Intangible Assets: Computers and Organizational Capital,” Brookings Papers on Economic Activity, 2002, http://ebusiness.mit.edu/research/papers/138_Erik
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_Intangible_Assets.pdf. 17. More details can be found in Erik Brynjolfsson and Adam Saunders, Wired for Innovation: How Information Technology Is Reshaping the Economy (Cambridge, MA; London: MIT Press, 2013). 18. According to the U.S
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in consumption like this are not picked up in changes in price indexes, and thus official numbers for both nominal and real GDP fall. 10. Erik Brynjolfsson, “The Contribution of Information Technology to Consumer Welfare,” Information Systems Research 7, no. 3 (1996): 281–300, doi:10.1287/isre.7.3.281. 11
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. Erik Brynjolfsson and Joo Hee Oh, “The Attention Economy: Measuring the Value of Free Goods on the Internet,” in NBER Conference on the Economics of Digitization, Stanford,
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Carol Corrado, Chuck Hulten, and Dan Sichel, “Intangible Capital and Economic Growth,” NBER Working Paper No. 11948, 2006, http://www.nber.org/papers/w11948. 21. Erik Brynjolfsson, Lorin Hitt, and Shinkyu Yang, “Intangible Assets: Computers and Organizational Capital,” Brookings Papers on Economic Activity, 2002, http://ebusiness.mit.edu/research/papers/138_Erik
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_Intangible_Assets.pdf (accessed August 18, 2013); Erik Brynjolfsson and Lorin M. Hitt, “Computing Productivity: Firm-Level Evidence,” SSRN Scholarly Paper (Rochester, NY: Social Science Research Network, 2003), http://papers.ssrn.com/abstract=290325
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.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en/us/googleblogs/pdfs/google_predicting_the_present.pdf (accessed September 11, 2013); Lynn Wu and Erik Brynjolfsson, “The Future of Prediction: How Google Searches Foreshadow Housing Prices and Sales,” SSRN Scholarly Paper (Rochester, NY: Social Science Research Network, 2013), http://papers.ssrn
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and Organizational Capital,” Brookings Papers on Economic Activity, 2002, pp. 137–98. 21. See Brynjolfsson, Hitt, and Yang, “Intangible Assets: Computers and Organizational Capital,” and Erik Brynjolfsson, David Fitoussi, and Lorin Hitt, “The IT Iceberg: Measuring the Tangible and Intangible Computing Assets,” Working Paper (October 2004). 22. E. Brynjolfsson and L. M
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. Hitt, “Computing Productivity: Firm-level Evidence,” Review of Economics and Statistics 8, no. 4 (2003): 793–808. 23. Timothy F. Bresnahan, Erik Brynjolfsson, and Lorin M. Hitt, “Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence,” Quarterly Journal of Economics 117, no. 1 (2002
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, 2012, http://www.nytimes.com/2012/11/18/business/as-boom-lures-app-creators-tough-part-is-making-a-living.html. 8. Heekyung Kim and Erik Brynjolfsson, “CEO Compensation and Information Technology,” ICIS 2009 Proceedings, January 1, 2009, http://aisel.aisnet.org/icis2009/38. 9. See Xavier Gabaix and Augustin Landier, “Why
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bundled products. But markets in which bundling is common also tend to be winner-take-all markets. See Yannis Bakos and Erik Brynjolfsson, Management Science 45, no. 12 (1999); Yannis Bakos and Erik Brynjolfsson, “Bundling and Competition on the Internet,” Marketing Science 19, no. 1 (2000): 63–82, doi:10.1287/mksc.19.1
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.63.15182. 16. See Michael D. Smith and Erik Brynjolfsson, “Consumer Decision-making at an Internet Shopbot: Brand Still Matters,” NBER (December 1, 2001): 541–58. 17. Catherine Rampell, “College Degree Required by Increasing Number
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that they form a straight line when graphed on a log-log scale, with the slope of the line given by the exponent, k. 23. Erik Brynjolfsson, Yu Jeffrey Hu, and Michael D. Smith, “Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers,” SSRN Scholarly
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in price led to a 1.1 percent increase in demand, so as a result total spending increased as technology made computers more efficient. See Erik Brynjolfsson, “The Contribution of Information Technology to Consumer Welfare,” Information Systems Research 7, no. 3 (1996): 281–300. 22. This is an example of Say’s
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Carr, The Shallows: What the Internet Is Doing to Our Brains (New York: W. W. Norton & Company, 2011); on cyberbalkanization, see Marshall van Alstyne and Erik Brynjolfsson, “Electronic Communities: Global Villages or Cyberbalkanization?” ICIS 1996 Proceedings, December 31, 1996, http://aisel.aisnet.org/icis1996/5; and Eli Pariser, The Filter Bubble: How
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is a must-read.” —Vivek Wadhwa, director of research at Duke University’s Pratt School of Engineering and author of The Immigrant Exodus Also by Erik Brynjolfsson and Andrew McAfee RACE AGAINST THE MACHINE How the Digital Revolution Is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy Also by
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FOR INNOVATION Also by Andrew McAfee ENTERPRISE 2.0 New Collaborative Tools for your Organization’s Toughest Challenges Copyright © 2014 by Erik Brynjolfsson and Andrew McAfee All rights reserved First Edition For information about permission to reproduce selections from this book, write to Permissions, W. W. Norton & Company,
by Andrew McAfee and Erik Brynjolfsson · 26 Jun 2017 · 472pp · 117,093 words
could understand. # Big data and analytics have also transformed human decision making, as we discuss in our article for Harvard Business Review: Andrew McAfee and Erik Brynjolfsson, “Big Data: The Management Revolution,” Harvard Business Review 90, no. 10 (2012): 61–67. ** Dean’s many contributions have made him something of a legend
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of papers by Erik with Yannis Bakos, and other coauthors. See, for example, Yannis Bakos and Erik Brynjolfsson, “Bundling Information Goods: Pricing, Profits, and Efficiency,” Management Science 45, no. 12 (1999): 1613–30; Yannis Bakos and Erik Brynjolfsson, “Bundling and Competition on the Internet,” Marketing Science 19, no. 1 (2000): 63–82; and Yannis
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Bakos, Erik Brynjolfsson, and Douglas Lichtman, “Shared Information Goods,” Journal of Law and Economics 42, no. 1 (1999): 117–56
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, 2017, http://flylib.com/books/en/1.20.1.44/1/. 33 A study by Erik and his colleagues: Sinan Aral, D. J. Wu, and Erik Brynjolfsson, “Which Came First, IT or Productivity? The Virtuous Cycle of Investment and Use in Enterprise Systems,” paper presented at the Twenty Seventh International Conference on
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): F174–84, http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0297.2008.02148.x/abstract. 39 Erik worked with Lynn Wu: Lynn Wu and Erik Brynjolfsson, “The Future of Prediction: How Google Searches Foreshadow Housing Prices and Sales,” in Economic Analysis of the Digital Economy, ed. Avi Goldfarb, Shane M. Greenstein
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Personality Assessment 50, no. 3 (1986): 370–75, http://www.tandfonline.com/doi/abs/10.1207/s15327752jpa5003_6. 42 Working with the US Census Bureau: Erik Brynjolfsson and Kristina McElheran, “Data in Action: Data-Driven Decision Making in US Manufacturing,” 2016, https://papers.ssrn.com/sol3/papers2.cfm?abstract_id=2722502. Early
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work using a smaller sample found similar results: Erik Brynjolfsson, Lorin M. Hitt, and Heekyung Hellen Kim, “Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?” 2011, https://papers.ssrn.com/sol3/papers2
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Concentration,” Economist, March 24, 2016, http://www.economist.com/blogs/graphicdetail/2016/03/daily-chart-13. 312 As we wrote in 2008: Andrew McAfee and Erik Brynjolfsson, “Investing in the IT That Makes a Competitive Difference,” Harvard Business Review 86, no. 7/8 (2008): 98. 314 Sandy Grossman and Oliver Hart asked
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, Joanne, 311 Yellow Cab Cooperative, 201 YouTube, 77, 231, 273 Zayner, Josiah, 272 Zervas, Georgios, 223 Zuckerberg, Mark, 8, 10 Also by Andrew McAfee and Erik Brynjolfsson The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies Race against the Machine: How the Digital Revolution Is Accelerating Innovation
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, Driving Productivity, and Irreversibly Transforming Employment and the Economy Also by Erik Brynjolfsson Wired for Innovation Also by Andrew McAfee Enterprise 2.0: New Collaborative Tools for Your Organization’s Toughest Challenges Copyright © 2017 by Andrew McAfee and
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Erik Brynjolfsson All rights reserved First Edition For information about permission to reproduce selections from this book, write to Permissions, W. W. Norton & Company, Inc., 500 Fifth
by Erik Brynjolfsson · 23 Jan 2012 · 72pp · 21,361 words
Race Against the Machine How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy. Erik Brynjolfsson and Andrew McAfee Digital Frontier Press Lexington, Massachusetts © 2011 Erik Brynjolfsson and Andrew McAfee All rights reserved. No part of the book may be reproduced in any form by any electronic or mechanical
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measurable correlates of skill, so this pattern suggests that demand for upskilling has increased faster than its supply. Studies by this book’s co-author Erik Brynjolfsson along with Timothy Bresnahan, Lorin Hitt, and Shinku Yang found that a key aspect of SBTC was not just the skills of those working with
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machine. We claim sole ownership of virtually none of the ideas presented here, but we’re emphatic that all the mistakes are 100% ours. Authors Erik Brynjolfsson is a professor at the MIT Sloan School of Management, Director of the MIT Center for Digital Business, Chairman of the Sloan Management Review, a
by Arun Sundararajan · 12 May 2016 · 375pp · 88,306 words
frequent were with Bhavish Aggarwal, Alisha Ali, Douglas Atkin, Michel Avital, Emily Badger, Mara Balestrini, Yochai Benkler, Rachel Botsman, danah boyd, Nathan Blecharczyk, Jennifer Bradley, Erik Brynjolfsson, Valentina Carbone, Emily Castor, David Chiu, Marc-David Chokrun, Sonal Choksi, Peter Coles, Chip Conley, Ariane Conrad, Arnab Das, Cristian Fleming (and his team at
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technologies permeate the economy today, but the enduring changes have not moved the organization of economic activity in any one specific direction. As MIT economist Erik Brynjolfsson and his collaborators (Lorin Hitt of the University of Pennsylvania, Timothy Bresnahan of Stanford University, and my NYU colleague Prasanna Tambe, among others) have discovered
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Systems on Organizations and Markets,” Communications of the ACM 34, 1 (1991), 59–73. 10. Ibid., 71. 11. Ibid., 71–72. 12. See, for example, Erik Brynjolfsson and Lorin Hitt, “Beyond Computation: Information Technology, Organizational Transformation and Business Performance,” Journal of Economic Perspectives 14, 4 (2000): 23–48, or Timothy F. Bresnahan
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, Erik Brynjolfsson, and Lorin M. Hitt, “Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence,” Quarterly Journal of Economics 117 (2002): 339–376,
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or Prasanna Tambe, Lorin Hitt and Erik Brynjolfsson, “The Extroverted Firm: How External Information Practices Affect Innovation and Productivity,” Management Science 58(2012): 678-697. 13. James Quinn, “Strategic Outsourcing: Leveraging Knowledge Capabilities
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variety and automated word-of-mouth promotions, however, is difficult, since once again, what has changed is primarily the quality of the consumer experience. As Erik Brynjolfsson, Yu (Jeffery) Hu, and Michael Smith argue in their study of consumer surplus in the digital economy, these benefits may be particularly difficult to measure
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doctor on demand. Universal Avenue offers a sales force on demand, and HourlyNerd gets you a consultant with an MBA. And what if offshoring, as Erik Brynjolfsson and Andrew McAfee suggest, is only a way station on the road to automation? The Second Machine Age Like offshoring, automation is by no means
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percent of the activities individuals are paid to perform can be automated by adapting currently demonstrated technologies.”14 Looking deeper into the future of work, Erik Brynjolfsson and Andrew McAfee in The Second Machine Age argue that although computers have been transforming work, economics, and everyday life for several decades, we have
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Levy and Richard J. Murnane, The New Division of Labor: How Computers Are Creating the Next Job Market (Princeton, NJ: Princeton University Press, 2004). 16. Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: W.W. Norton, 2014), 9. 17
by Carl Benedikt Frey · 17 Jun 2019 · 626pp · 167,836 words
positions reached by 160,000 professional players, was far greater than the experience any professional player could accumulate in a lifetime. The event marks what Erik Brynjolfsson and Andrew McAfee have called the “second half of the chessboard.”5 As Scientific American marveled, “An era is over and a new one is
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did not fully appreciate the obstacles involved in getting machines, computers, and sophisticated software to work together effectively. In a number of studies, the economists Erik Brynjolfsson, Timothy Bresnahan, and Lorin Hitt consistently found that investments in computer technology contributed to firm productivity mainly when complementary organizational changes were made.68 In
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For these reasons, Amara’s Law will likely to apply to AI, too. Myriad necessary ancillary inventions and adjustment are required for automation to happen. Erik Brynjolfsson, who was among those investigating the role of computer technologies in the productivity boom of the late 1990s, thinks that the trajectory of AI adoption
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put downward pressure on the wages of those with no more than a high school degree. In their best-selling book The Second Machine Age, Erik Brynjolfsson and Andrew McAfee make a similar observation: “Technological progress is going to leave behind some people, perhaps even a lot of people, as it races
by Steve Lohr · 10 Mar 2015 · 239pp · 70,206 words
and Michael Haydock in suburban Minneapolis. Many others were interviewed for this book. They include Sam Adams, Brooke Barrett, Richard Berner, Patrick Bosworth, Thomas Botts, Erik Brynjolfsson, John Calkins, Murray Campbell, Dennis Charney, Herbert Chase, Jeffrey Chester, Sharath Cholleti, Adam D’Angelo, Arne Duncan, Sue Duncan, Tony Fadell, Edward Felten, David Ferrucci
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intuition. The prospect of such data-animated nudges to sharpen decision making, repeated countless times, up and down corporations, throughout the economy, is the why Erik Brynjolfsson believes big data will bring a “management revolution.” Brynjolfsson is an economist at the Massachusetts Institute of Technology’s Sloan School of Management, director of
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likely to take on cognitive tasks long reserved for humans—when what is being replaced is not sweat but synapses. In The Second Machine Age, Erik Brynjolfsson and Andrew McAfee of MIT make the case for a technology-led surge in productivity and growth in the future, but one that will have
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big-data measurement and analysis is qualitatively different from the measurement of finance. They used different words and phrases to try to capture the difference. Erik Brynjolfsson of MIT’s Sloan School of Management speaks of a “quantum change,” while Michael Haydock of IBM talks of a new “genomics of business.” In
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something similar”: An interview on Oct. 28, 2013, with Dr. Martin Kohn. an intellectual champion for the transformative power of big data: I’ve interviewed Erik Brynjolfsson several times over the years, but most of the quotes and descriptions in this section come from an interview on Oct. 17, 2013. detailed survey
by Jamie Susskind · 3 Sep 2018 · 533pp
more productive and scarce it is, the greater the wealth it is likely to generate.8 In The Second Machine Age (2014) Andrew McAfee and Erik Brynjolfsson suggest that in the future, production will depend less on physical assets and more on intangible ones like intellectual property, organizational capital (business processes, production
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Schmidt and Jared Cohen, The New Digital Age: Reshaping the Future of People, Nations and Business (London: John Murray, 2014), 5; Shanahan, Technological Singularity, xviii; Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (NewYork: W.W. Norton & Company, 2014), 49;Wendell
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Infrastructure’, Internet Policy Review 5, no. 3 (30 September 2016) <http://policyreview.info/articles/ analysis/invisible-politics-bitcoin-governance-crisis-decentralisedinfrastructure> (accessed 30 November 2017); Erik Brynjolfsson and OUP CORRECTED PROOF – FINAL, 30/05/18, SPi РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS Notes 31. 32. 33. 34. 35. 36
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: Fourth Estate, 2012), 7–8. OUP CORRECTED PROOF – FINAL, 30/05/18, SPi РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS 390 Notes 21. Erik Brynjolfsson and Andrew McAfee, The Second Machine Age:Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: W. W. Norton & Company, 2014), 16
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Computer Science 2, e93 (24 October 2016). See further Harry Surden, ‘Machine Learning and Law’, Washington Law Review 89, no. 1 (2014): 87–115. 25. Erik Brynjolfsson and Andrew McAfee Machine Platform Crowd: Harnessing Our Digital Future (New York: W. W. Norton & Company, 2017), 41. 26. See Anthony J. Casey and Anthony
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, Power, and Status in the Twenty-First Century (New York: St. Martin’s Press, 2016), 119–20. 8. Avent, Wealth of Humans, 119–20. 9. Erik Brynjolfsson and Andrew McAfee, The Second Machine Age:Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: W. W. Norton & Company, 2014), 118
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. 10. Erik Brynjolfsson, Andrew McAfee, and Michael Spence. ‘New World Order: Labor, Capital, and Ideas in the Power Law Economy’, Foreign Affairs, July/August 2014 <https://www.foreignaffairs
by Aaron Benanav · 3 Nov 2020 · 175pp · 45,815 words
work they do. The Machines Are Coming Self-described futurists are the major disseminators of this automation discourse. In the widely read Second Machine Age, Erik Brynjolfsson and Andrew McAfee argue that we find ourselves “at an inflection point—a bend in the curve where many technologies that used to be found
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the appearance of steady labor-productivity growth in US manufacturing, at an average rate of around 3 percent per year since 1950. On that basis, Erik Brynjolfsson and Andrew McAfee suggest, automation could show up in the compounding effects of exponential growth, rather than an uptick in the growth rate.12 However
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claim to have discovered a general phenomenon: in the coming decades, full automation will supposedly lead to “full unemployment.” Like “whale oil” and “horse labor,” Erik Brynjolfsson and Andrew McAfee suggest in The Second Machine Age, human exertion may soon find itself “no longer needed in today’s economy even at zero
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of techno-optimists, like Ray Kurzweil, who imagine that technological change will generate a utopian world by itself, without the need for social transformation. 5 Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, W.W. Norton, 2014, pp. 34, 128, 134ff
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. Routine intellectual activities, even highly skilled ones, are apparently proving easier to automate than nonroutine manual jobs, which require more dexterity than machines presently possess. Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, W.W. Norton, 2014, pp. 28–9. 3
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for Labor 1 Wassily Leontief, “Technological Advance, Economic Growth and the Distribution of Income,” Population and Development Review, vol. 9, no. 3, 1983, p. 409; Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, W.W. Norton, 2014, p. 179. Nick Dyer
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, Harvard University Press, 2017, p. 8; Guy Standing, Basic Income: A Guide for the Open-Minded, Yale University Press, 2017. This proposal is discussed in Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, W.W. Norton, 2014, pp. 232–41; Ford
by Kate Raworth · 22 Mar 2017 · 403pp · 111,119 words
clerks and heart surgeons. This wave of digital automation is still in its infancy, but it has already led to what the digital economy expert Erik Brynjolfsson has called the ‘great decoupling’ of production from jobs, seen most clearly in the United States. From the end of the Second World War until
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contact – skills that are essential for many kinds of work, from primary school teachers and artistic directors to psychotherapists, social workers and political commentators. As Erik Brynjolfsson and his co-author Andrew McAfee put it, ‘Humans have economic wants that can be satisfied only by other humans, and that makes us less
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countries is possible because it is coming and it can be made environmentally sustainable. First, growth is on the way, argue technology optimists such as Erik Brynjolfsson and Andrew McAfee: thanks to the exponential growth in digital processing power, we are entering the ‘second machine age’, in which the fast-rising productivity
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Working Paper no. 109, and Brynjolfsson, E. (2013) ‘The key to growth? Race with the machines’, TED Talk, February 2013. https://www.ted.com/talks/erik_brynjolfsson_the_key_to_growth_race_em_with_em_the_machines?language=en 33. Bowen, A. and Hepburn, C. (2012) Prosperity with Growth: Economic Growth, Climate
by Robert Wachter · 7 Apr 2015 · 309pp · 114,984 words
, told me that “healthcare jumped out as an area whose complexity and nuances would be receptive to what Watson was representing.” Andy McAfee, coauthor with Erik Brynjolfsson of the terrific book The Second Machine Age, agrees with Khosla that computers will ultimately take over much of what physicians do, including diagnosis. “I
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’t come around very often, perhaps every 50 to 100 years. Information technology falls into the same category—in fact, in The Second Machine Age, Erik Brynjolfsson and Andrew McAfee call IT “the most general purpose of all.” Given the power and range of information technology, one would think that its implementation
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