Will AI be life-changing for muggles by the end of 2029?
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100
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2030
55%
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This is the official record of a real-money bet between me and Svaťa Pleva. By new year's eve 2029, if something very life-altering has happened with AI since 2024-10-07, Svaťa owes Danny $100. Otherwise Danny owes Svaťa $10.

Of course AI is already somewhat life-changing for us nerds but normal humans are largely ignoring it so far. The question is, will they be able to continue to do so or not?

How things look if the answer is NO

AI continues to be a cool and useful tool. Maybe when you talk to a customer service person it's actually an AI -- normal people won't know or care which. There'll be new scams and deepfakes and such but people will learn to adapt and ultimately life will be normal through the 2020s.

How things look if the answer is YES

Something as huge and as unignorable as a whole category of jobs totally gone or the world economy doubling or new tech that's as life-altering as the internet or smartphones -- and that everyone is actually using, just as everyone uses smartphones and the internet today.

We'll add to that list via the following FAQ as we discuss further. Do ask clarifying questions if you want to bet in this market.

FAQ

1. What's "a whole category" of jobs?

All accountants or lawyers would certainly count. All call center jobs would probably count as long as the fact is clear to muggles. And "all" means "essentially all".

2. What does a doubled economy mean exactly?

Normally the world economy takes over 20 years to double. So this would be an unprecedented jump in the GDP trend line.

3. What if robocabs replace human-driven Ubers/Lyfts?

If this is universal enough, we'll count it. Namely, if it's as surprising to hear someone's never ridden in a car with no one in the driver's seat as it is for someone to not have a smartphone, we'll count it. (2024 status: Waymo is providing ~650k rides per month and growing fast.)

4. What if garbage AI content drastically degrades the internet?

We didn't say it had to be a change for the better so if this is serious enough to utterly ruin the ability to do web searches or get customer reviews -- things muggles used to do all the time -- this would count.

5. Would dramatic changes in pedagogy count?

Not unless it was so dramatic that a significant fraction of teachers were being replaced. We'll use a lower threshold on that than for FAQ1 since this would be life-changing for all students as well. (Arguably that's already true here in 2024 but we need something way beyond that.)

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Keywords: AI bulls vs bears

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I don't think there's any doubt that this will happen eventually. For it to happen this decade would mean that AI is pretty fundamentally different from other tech -- personal computers, smartphones, the internet, electricity, radio, plastic. For all of those, it took longer than 5-10 years to reach life-changing-for-muggles levels of saturation, right? What's the closest to a historical precedent for this?

To be clear, when AI becomes AGI, that just really is fundamentally different than any other technology. But assuming no AGI that soon, how realistic is a YES here?

What would you define as "everyone actually using" a new piece of AI tech? Probably not< 50% of the population, so like 60%? For reference, about 90% of people have a smartphone today.

@DanNelson88fb Good question. I haven't pinned down percentages yet but in another comment thread here I suggested using the adoption of the internet in the US in the year 2000 and the adoption of smartphones in 2010 as benchmarks. So I'd say we don't have to get to ubiquity, but common enough to be clear it's heading that way.

Question: in which years would hypothetical bets on similar terms but about smartphones or about the internet instead of AI have resolved YES for the first time?

@zzq Ooh, great question. Off the cuff, I'd say 2000 for the internet and 2010 for smartphones. But the impact diffused slowly enough that it's very hard to pick a specific year. This suggests we have work to do in pinning down the resolution criteria here.

@BrendanJackman fair, but that market is radically mispriced imo

I think that Criterion #3 is the tricky one. I know people who have gone without smart phones for a least a period of time and they are fine. For example, if most people are using AIs in the same way that they use Google to search these days - i.e. to ask questions, write emails - would that count? That seems like sort of an extension/improvement of what we have today, not really a phase transition in the same way that the internet was. Something on the scale of the internet would make sense to me as something one truly could not ignore though. I don't know anyone who has gone without the internet recently.

Also what counts as "a whole category" of jobs? E.g. would call center jobs count? Or are we talking bigger scale, like accounting.

Disagree with the premise when it comes to younger people. Essentially every college and high school student is already using LLMs. It’s not niche at all.

@LiamZ Very fair comment. I think I'll hedge that first sentence a bit better. (Currently: "AI is already somewhat life-changing for us nerds but normal humans are largely ignoring it so far.")

In any case, this is about predicting how much further it goes, defined by whether normal people can choose to ignore it. I mean, you can ignore anything if you try hard enough, so we're using smartphones / the internet as the benchmark. So maybe a 7.5 on the technological richter scale: https://forum.beeminder.com/t/more-fake-ai-podcasts-about-beeminder/11936/4?u=dreev

bought Ṁ50 YES

Doubling vs now or doubling vs some projection?

Would dramatic changes to pedagogy count?

@Juniper0rg1m Great questions; Svata and I shall discuss!

@Juniper0rg1m I mean hypothetically, if God came down from the heavens and said "AI will suddenly and immediately double everyone's productivity in 2040", the stock markets would immediately jump in anticipation of this new productivity minus the discount rate of 15 years. Right? So then when productivity did double, we wouldn't see a similarly discontinous jump in asset prices.

So what if that's already happened, and we don't see a discontinous doubling of the economy now because it's already priced in?

Well, productivity numbers are published, so we could be sensitive to that. But we could also just compare to a long term growth trend. I.e. if GDP in 2030 is about what you'd expect from an extrapolation of 1970-2000, I wouldn't call that life changing

@Juniper0rg1m If, in 1970, you assigned a 40% chance of Futurama by 2030, and then increased your confidence by 1 percentage point each year, you'd be 100% confident of Futurama by 2030 by the time 2030 rolled around, but the 2030 gdp would be what you expected extrapolating the trend from 1970-2000.

@GG I don't think we started pricing in AI before 2000 in any meaningful sense. Also I don't think GDP will have anything priced into on the same way it would be in the stock market. It's dependent on actual economic activity. (With caviats relating to the notional value of some assets being transacted)

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