News Summary

• The Solow model has its uses, but it fails when it comes to major changes stemming from AI.
• In the model, intelligence and Polanyi knowledge combine to produce output.
• In this model, if someone or something could “commandeer” the Intelligence sector, their power over society would be much more limited than it might appear at first.
• The world does not change that much at first, because the necessary complements are lacking.
• But they keep on coming for a long period of time.
• There are further AI/Intelligence advances on tap, plus absorbing the advances to date, and exploiting them, takes a long time.