Equilibrium and Stagnation: The Mechanics of Progress in the Age of AI

This article provides a thorough analysis of the mechanics of progress in an era of dynamic artificial intelligence development. Drawing on the theories of Carl Benedikt Frey, the author explores the tension between knowledge exploration and exploitation. The text warns against the phenomenon of 'aitocracy' – a system in which AI serves more to perpetuate the status quo and surveillance than to drive genuine innovation. The technical limitations of LLM models, such as the 'curse of reversal,' which can lead to intellectual stagnation, are discussed. The analysis also encompasses geopolitical aspects, including the impact of the European AI Act on global market dynamics. This is essential reading for those seeking to understand whether AI will prove to be a driver of growth or a tool for resource centralization and technological stagnation.