Hemmingway observed in ‘The sun also rises’ that ‘the future comes slowly, then all at once’.

He has been proven right many times.

Since the release in November last year, ChatGPT has proven the future of AI is here, all at once.

That reality leads to the key question: so, what now?

We often look back on the spread of electrification as a template for thinking about the digitisation of our economies. It is a fair representation except for one small detail, which makes all the difference.

Electrification was a process that proceeded sequentially, piece by piece added as efficiency improved. From the beginning of the digital age, and the recognition of the reality of Moore’s Law, this has changed.

The driver of change has been compounding, each stage building on the previous, with increasing speed. While this has been seen by most as just normal improvement, the cumulative impact has been far greater.

Einstein noted that the most powerful force in the universe is compounding. Imagining the impact of compounding is really hard, makes my head hurt. To imagine it, there is still no better metaphor than the old rice on the chessboard fable.

The emperor promised someone (probably an ancient consultant) a payment in rice on a progressive scale, calculated as doubling for each of the 64 squares on a chessboard. 1, 2,4,8,16,32, and so on. It seemed like a good deal to the emperor who was clearly not mathematically minded.

By the 31st square, payment topped a billion grains of rice, enough to cover your average ancient town square. That is where the problems started as payment kept on doubling, quickly outstripping the total world production of rice.

The tipping point is somewhere around square 25, where the rice was a couple of wheelbarrows full, then seemingly suddenly, it became a vast amount.

Such has been the case with digitisation.

We have been watching its progression since Gordon Moore wrote his 1965 article predicting a doubling of the number of circuits on a single chip every 18 months. A bit like the emperor, we have watched and suddenly it seems we have reached a tipping point led by ChatGPT and its sibling DALL-E. Hot on Chats heels came ‘Bard’ from Google, although stumbling at the launch last week, and no doubt Amazon and Apple are close behind.

The difference we face to that faced by the emperor, is that had he used his abacus, he could have predicted the outcome of his agreement, as it is calculable, to a point. What happens now with the compounding of AI is not so predictable. What we do know is that it will be a disruptive force coming at us with compounding speed and power.

This power to increase the speed, accuracy, and therefore efficiency of the processes we digitise will extract a range of very high tolls. These will be the increased risk of personal data being available and almost inevitably used against us, amplification of bias, ever increasing complexity of the systems we will come to absolutely rely on but not understand how they do what they do, and a complete ‘rework’ of work. This revision of work will make the changes from the cottage industries pre industrial revolution look like minor adjustments by comparison, and will happen at lightning speed.

Of concern to me is that only a few have the scale necessary to ‘train’ these systems. Microsoft, Amazon, Google, and Apple have that scale, which will serve to entrench their dominance in the space. Theoretically governments also have the scale, but will be hobbled by concerns unshared by commercial players.

Within a decade, every current job, those that remain, will be almost unrecognisable, and there will be new jobs we cannot yet predict taking their place. What will remain is the human element of creativity, that capability that distinguishes human beings from all other species, the ability to do something completely new.

The good news is that we will still need engineers, architects, doctors, plumbers, and bricklayers, but the shape of their day will be nothing like it is today.

When digital photography took off, putting a quality camera in every pocket, most thought it was the end of photography as a profession. Not so. What became quickly obvious was that there was a clear distinction between the real, creative skills of the elite photographers, and those of the ordinary. The pareto distribution of photographic skill applied, and those that survived as professionals had more time and better tools with which to capture and express their images. This will be repeated in every job across the economy.

Unanswered is the question of how we educate our kids to thrive in a work environment we are unable to visualise.

Header credit: Dall-E. The instruction I gave Dall-E was ‘Surrealist impression of the change from cottage industry to knowledge work’ This was one of 12 generated in about 30 seconds. Look closely at the face.