Download "This time it's the intelligent ones who are affected: AI will make us all unemployed (Interview w..."

AI is bringing about even faster change than the internet. Andreas Beck and Prof. Rieck discuss stock market prices and future incomes. My new course on game-theoretic negotiation (pre-orders): https://www.rieck-verlag.de/verhandlungstraining ►FURTHER INFORMATION FROM TEAM RIECK: Digital transformation, embodied by the platform economy, has brought about a fundamental restructuring of economic principles. It is based on a dual network effect: The value of a platform increases non-linearly with the number of its users on both sides of the market (suppliers and consumers). This induces an inherent "tendency toward monopoly" or at least oligopoly, since the largest player generates the greatest benefit—a phenomenon manifested in companies like Meta, Amazon, and YouTube. The resulting concentration of power shifts value creation from the actual good (X) to the distribution mechanism (N). The marginal utility, and thus the price, of a digital copy is approaching zero, while economic and regulatory power is consolidating with the platform that controls economies of scale and network externalities. Artificial intelligence represents the next evolutionary stage of this paradigm and simultaneously acts as its catalyst and destabilizer. Its disruptive power lies in the cannibalization of existing digital business models. By generating text, code, and design at virtually no marginal cost, it devalues ​​standardized Software-as-a-Service solutions and challenges the profitability of platforms whose business model was based on the scarcity of these very services. In this competition, data sovereignty proves to be the critical competitive advantage. The quality and exclusivity of training data—whether proprietary enterprise data from SAP or consumer knowledge from Amazon—determines the performance of AI models and constitutes a resource that is difficult to imitate. The sectoral implications are profound. Routinizable knowledge work—from content creation and standard legal work to compliance—is subject to massive pressure for automation. In contrast, non-digitalizable activities are gaining in relative value creation: highly specialized crafts and physical production. The new winners are the "enablers" of the AI ​​economy, namely providers of computing power (Nvidia) and energy. The human workforce of the future will find its comparative advantages less in execution than in strategic curation, creative problem definition (prompt engineering), and complex decision-making based on AI-generated options. This development is philosophically grounded in the work of Burbach and Höffe ("Everything and Nothing"), who analyze the influence of binary logic on our economy. The reduction to 0 and 1 disembodies thought and promotes the described devaluation of the singular in favor of the network. One resulting danger is the phenomenon of "model collapse" or "digital dementia": The recursive training of AI models on synthetic data, i.e., AI-generated content, leads to a qualitative decline and an incestuous disconnect from empirical reality. For investors, this volatility and unpredictability implies the strategic priority of diversification. Broad diversification via global index funds is superior to speculative bets on supposed individual winners. Maintaining a liquidity reserve ("war chest") ensures the ability to act during the inevitable crises. From a socio-political perspective, this requires a fundamental shift in educational policy: away from purely factual knowledge and toward fostering critical judgment, creativity, and the ability to interact symbiotically with AI systems. ►MORE FROM CHRISTIAN RIECK: ○Instagram: https://www.instagram.com/profrieck ○Twitter: https://twitter.com/ProfRieck ○LinkedIn: https://www.linkedin.com/in/profrieck #profrieck #andreasbeck Disclaimer: This is an educational channel, not a financial, legal, or medical channel. The content of my videos and podcasts is for general information purposes only and does not constitute financial, legal, or medical advice, nor is it a personal recommendation. Always consult multiple independent sources and seek professional advice before making decisions, especially regarding investments or medicine. The opinions expressed do not constitute a call to action. This is not a solicitation to buy or sell any kind of asset, including securities or tangible assets. It is also not a recommendation for any form of self-treatment or self-diagnosis. Please take these disclaimers seriously.