What’s The Purpose Of Companies In The Age Of AI
Firms are good at organizing economic activity. But so is technology.
While there has been a lot of discussion about “what’s left for humans?” as AI improves at exponential rates, we now have to ask, “what’s left for firms?” And as computer technology simplifies and reduces transaction costs, the role of the firm in offering efficient transactions becomes less important. Instead, other things that firms do uniquely well that will come more to the forefront. Four in particular: managing tensions between competing priorities; taking a long-term perspective; providing purpose (a moral call to action); and nurturing “unreasonable” behavior including experimentation and unorthodox thinking.
