AI: The New Invisible Hand?

AI: The New Invisible Hand?

Adam Smith's “invisible hand” posits that individuals pursuing their self-interest will unwittingly serve the greater good – markets will regulate themselves, as if by some hidden, benevolent force. In the age of AI, we face a new “invisible hand” that belongs not to human nature but to the algorithms that shape it.

AI acts mainly in secret, subtly nudging us in specific directions, personalizing our feeds, and anticipating our decisions. It is the ultimate invisible hand. The silent architect orchestrates the flow of information, shapes public opinion, and decides what we want before we do. While Smith's hand is guided by millions of individual choices that add up to a kind of equilibrium, AI's hand is guided by a select few. Algorithms can be customized to maximize engagement and often corporate profit rather than societal equilibrium (Smith trusted in the self-correcting nature of the market, but with AI, self-correction becomes paradoxical). Rather than guiding individuals toward the common good, AI steers us toward outcomes defined by the underlying code and data written by unseen designers with motives that might as well be an unseen fist, no hand.

Unlike Smith's invisible hand, which trusted the will of many, the AI hand cloaks the intent of the few, nudging us down paths we might not choose if we indeed saw them.




More thought-provoking thoughts:




Not so much Smith's Invisible Hand as it is Heidegger's "Das Man" lit up in twinkling lights and set on overdrive: all of the 'shoulds' and 'oughts' propounded by no one and everyone, all of the latest fashions and trends that everybody who is anybody pays attention to.. and 'Das Man' is no external force that besieges humanity. It is a mode of being of humanity itself.

Brad Hutchings

Linguistic illusionist. Safety in the AI storm. Private, local LLMs for regular folks. Reluctant expert. Thought follower. I can help you effectively use AI in your business. Connect and DM me.

1 周

Adam Smith said that individuals pursuing their self interest would meet the material needs of society. Calling that "the greater good" bastardizes his message. He was not Jen-Jacques Rousseau. To your other point. LLMs (this incarnation of "AI") actually are quite understandable by regular people, much like an automobile engine was to endless driveway mechanics in years gone by. You don't have to learn to code to develop a good understanding of what they actually do. Teaching my clients "be the ball" with the LLM is how I inoculate them from the rampant BS from all sides in this industry.

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Can we say the invisible hands of a few puppeteering the many? Cognitive resilience is key to recognizing the gentle nudges, being critical of how algorithms are interacting with us and its intentions. Being aware of our own biases and behaviors and the choices we are given at the end of the day. If we don’t want to play their games, can we opt out ? Are darker psychology and network effects, too far gone that we are actually held hostage to these mechanisms?

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John C. Havens

Author, Heartificial Intelligence and Hacking Happiness. Director, IEEE Planet Positive 2030. Founding E.D. of IEEE AI Ethics program and IEEE 7000 Standards Series.

1 周

Great points and I’m often saddened so many people don’t know about Smith’s book on Moral Sentiments that positions (my interpretation and short version) an opportunity for people to envision an invisible partner helping us ruminate on our actions even when nobody is around. It’s not about surveillance or solely moral vindication or judgement, but the opportunity to base our lives on loving others whether or not it helps us. A deep challenge for classic neoliberal economics is the belief that everyone acts at their deepest level for selfish purposes & their own gain. Yet as parents we learn a core reality that you not only would give your life for your kids but that you will actively be giving your life for your kids until you die. While people might say, “caring for your kids still means essentially caring for yourself” and can talk about survival of the fittest logic & try to back it up with some of Darwin’s theories etc, I choose to believe that where a parent or caregiver puts their life and love on the line for their kids (by birth, adopted, in their community) they are expressing a form of caregiving that may include, but moves beyond an economics of survival for one’s specific cult, community or caste. Love will win.

Uli Huelsmeier

Ich glaube an die Zukunft und die Win-Win Situation in unabh?ngigen Branchen

1 周

Ein spannender Gedanke: Künstliche Intelligenz k?nnte die treibende Kraft sein, die unsere Zukunft formt. Lassen Sie uns auf einen verantwortungsvollen Umgang mit dieser Technologie setzen!

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