alt Hacker NewsAn idea that has been living rent free in my head is that "AI is ultimately nothing but a pure destruction of value". It's promise is unlimited value to everyone on demand; but if everyone can do everything without any effort, it is no longer valuable. Value and scarcity go hand in hand.
I realize the hyperbolic framing of the idea, but none-the-less I haven't been able to get it out of my head. This article feels like it's another piece of the same puzzle.
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When something becomes abundant, we focus on something else which is still scarce. That's human nature. Salt used to be scarce and very valuable, but nowadays who thinks about it?
> but if everyone can do everything without any effort, it is no longer valuable
It's called utopia.
But my issue with AI hype is that it's not clear how it will lead to "everyone can do anything." Like how is it going to free up lands so everyone can afford a house with yard if they want?
I think it is a step towards a money free world. Only if we could invent a food printer.
Price and scarcity go hand in hand, not value and scarcity.
Diamonds are pretty worthless but expensive because they're scarce (putting aside industrial applications), water is extremely valuable but cheap.
No doubt there are some goods where the value is related to price, but these are probably mostly status related goods. e.g. to many buyers, the whole point in a Rolex is that it's expensive.
Is water less valuable because it comes out of a tap almost for no money?
Only if you assume that the only kind of value is the ability to be sold for a price. Marx would have a word about use value vs exchange value.
> An idea that has been living rent free in my head is that "AI is ultimately nothing but a pure destruction of value". It's promise is unlimited value to everyone on demand; but if everyone can do everything without any effort, it is no longer valuable. Value and scarcity go hand in hand.
1) I think it's the destruction of our value, as workers. Without an unthinkable change in society, we'll be discarded.
2) I think it will also destroy the unrealized value of not-yet-created work, first by overwhelming everything with a firehouse mediocre slop, then by disincentivizing the development of human talent and skill (because it will be an easy button that removes the incentives to do that). AI will exceed humans primarily by making humans dumber, not by exceeding humans' present-day capabilities. Eventually creative output will settle at some crappy, derivative level without any peaks that rise above that.
I think it's a fundemental misunderstanding of value. Things are useful regardless of their price, the price is speculative but if there is a cost producing something (from earth, the mind or AI) the price will not be zero. Scarcity is the basis of value only for things that have no other utility and cost, for example some crypto made just for pump and dump.
> It's [sic] promise is unlimited value to everyone on demand
No, it’s not. This is where your concept fails. AI is a tool, like any other tool. It doesn’t provide unlimited anything, and, furthermore, it needs human inputs and direction to provide anything. “Go make me a profitable startup from scratch” is not a useful prompt.
The business sociopaths need to be able to shit out code and logos and voices and ads for their SaaS crypto casino social media feed fake therapy dating gig worker app, and AI makes it much cheaper to do so. The social value is there, AI lets us do more with less but it's always captured by the few people on top.
> Value and scarcity go hand in hand
Not really. The value to a thirsty soul of water in the desert is as high as they value their own life (to some there is little) and have a currency of value to the seller. Still, once thirst is quenched the value to that soul drops nearer to zero.
For an optional good the value only rises to the point that there is excess asset in the inventories of those that would like to add the option.
I would suggest what you are looking for is that some scarcities are shifted by each new technology. Things like the sincere attention of others or more exclusive emotional attachments become relatively more scarce in a goods abundant existence. Earlier, insights on where to apply the tool and to where one should attend become more scarce.
Something you would have to accept if you believe your statement is that you would never value (i.e. need) water again if we could produce far more than we ever could use. Your body's need and use would not cease even if the economics might collapse.
Financializing everything can lead one into foolish conclusions.