In a landscape where modern factories and robust supply chains have rendered physical items such as shoes and kitchen utensils into mere commodities, a shift is emerging as generative artificial intelligence (AI) technology continues to develop. This shift may redefine the notion of value in the marketplace, particularly with the rise of abundant machine-generated content contrasting starkly with the scarcity of human experiences.
The conversation surrounding the transformation of value within economic systems has echoes of sentiments expressed by Kevin Hartz, co-founder of Eventbrite. In 2013, he noted that with the proliferation of easily accessible goods, experiences became the new luxury. “Live experiences are the new luxury good,” Hartz said, indicating that the satisfaction derived from unique and finite experiences has increased as material goods have become too commonplace.
The rapid development of AI technologies, particularly large language models capable of generating text, images, and even music, is expected to exacerbate this trend. As generative AI becomes ubiquitous, the potential exists for a surplus of content, potentially making human-centric services increasingly desirable. Hartz elaborated, stating, “The world’s information is being turned into 1s and 0s and all this is being commoditized. What can’t be commoditized is finite resources like real estate, travel, seeing the sunset on the Mediterranean, or surfing in Fiji.” This perspective positions human experiences as the next "limited-edition luxury item."
In various sectors, the implications of AI functionality are becoming evident. For instance, as automation enters the restaurant industry, personal chefs may see a rise in demand as individuals seek the human touch in culinary experiences. Hartz describes this dynamic, explaining that “the more that AI automates restaurants, the more we’ll want personal chefs.” Correspondingly, AI tutoring systems are becoming prevalent in education. Sal Khan, founder of Khan Academy, discusses how generative AI has the potential to replicate the personalised experience of having a personal tutor, predicting that within three to five years, AI tutoring will be mainstay in educational settings.
However, the allure of human interaction appears to persist in elite educational environments, where emphasising small teacher-to-student ratios remains a priority. Prestigious institutions in Silicon Valley are charging tuition fees upwards of $58,000 annually, and continue to attract a myriad of applications from the tech elite.
Financial management also reflects a similar trend. Wealthy individuals typically rely on skilled financial advisors to navigate their investment portfolios, despite advancements in AI trading models, which are still developing an understanding of rapidly changing markets. Noam Brown, an AI researcher, highlights the challenges that AI encounters with new market environments, stating, “Humans are very good at adapting to novel situations,” underscoring the value of human judgement in financial decision-making.
The realm of social media is undergoing a parallel transformation, as tech giants like Meta introduce lifelike AI models that intersect with human creators. Meta’s CEO Mark Zuckerberg recently suggested that the influx of AI content threatens to make genuine human interaction a rare commodity, as AI assistants will be able to engage users indefinitely while human engagement will become increasingly limited. This paradigm shift showcases how consumer engagement norms are evolving.
Equally in the medical field, while AI systems like Google DeepMind’s Med-PaLM 2 demonstrate advanced capabilities in interpretation and analysis, gravitating towards human doctors remains a prevalent choice for affluent families when life-altering health decisions arise. The acquisition of One Medical by Amazon for nearly $4 billion illustrates the rising demand for accessible human health specialists, thus reinforcing the significance of human touch in healthcare despite increasing reliance on technology.
As the landscape of labour and value continues to shift, Hartz identifies the guiding principles of this evolution as "utility, value and signaling." Basic tasks may increasingly come under the purview of machines; however, opportunities for humans may still be prioritised in areas where emotional intelligence or creative involvement is required. In the end, as technology continues to open new avenues for efficiency and productivity, the distinctive nature of genuine human interaction is likely to become a premium offering in various sectors.
The discourse informing these emerging trends highlights a notable trajectory: the scarcity of uniquely human experiences is projected to elevate their desirability, framing humans themselves as a distinct and valuable resource amid a landscape of automated abundance.
Source: Noah Wire Services