Michael Koved: The Economics of Generative AI

Michael holds a PhD in Economics from the University of Pennsylvania, and is a Senior Fellow at Wharton (Artificial Intelligence and Analysis for Business). He’s also the president of Advanced Analytics, which is a consultancy that he founded.

In this episode, Michael describes various risks and opportunities associated with the growing adoption of AI tools. In particular, he describes a scenario where AI contributes to income disparity at the societal level by replacing significantly more low-skilled jobs than it creates, which is described in the Nobel-prize-winning work of Daron Acemoglu at MIT. Michael also covers how existing marketing attribution methods can be blind to the upstream impact of Generative AI, and how SEO and PPC might be affected by LLM-based search.