How large language models will transform the economy

Writing is hard and time consuming. Thanks to ChatGPT, it just became easier and faster. Rudimentary chatbots have been writing simple articles, such as sports game summaries, for years. ChatGPT, from artificial intelligence (AI) supernova OpenAI, leaps far beyond this through its search of billions of internet texts and ability to generate passable prose from prompts and questions. It can even simulate software code. But it’s a large language model (LLM), so it’s still not great at math or many other things. It makes funny mistakes.

But it’s powerful enough to begin transforming dozens of tasks and businesses. And it doesn’t need to be perfect to be the source of unimaginable mischief too.

We’ll begin with the good news. Joel Mokyr’s book The Lever of Riches: Technological Creativity and Economic Progress springs to mind. Just as computers augmented many human capabilities, leading to boundless new products
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