The Frictionless Future And Dislocation In Essence of Firms [SN]

The Frictionless Future And Dislocation In Essence of Firms [SN]

This is a Short Note from my LinkedIn update.

Our world is going through a redesign. Technology is restructuring the core elements of our economic systems. The essence of firms, the reduction of the friction that exists between buyer and seller, is challenged. In a friction-less market, the buyer and seller will connect directly without intermediaries (the firms). If savers can find people to lend directly, one of the core pillars of banking will go.

A firm is installing biochip implants in staff making it possible for them to shop and move around in offices seamlessly. That will go mainstream and humans will become nodes, just as we have IP addresses of modern computing and mobility. Add blockchain, the constructs of self-organizing systems will emerge. Even a dislocation in government powers will emerge.

As AI (artificial intelligence) evolves and machines increasingly become more cognitive, bosses will become algorithms. You go to work, you report to AI which will supervise your work. Because the AI can understand more complex systems, at scale, than humans, it has an edge.

The amalgam of brainy machines with humans as nodes under the control of blockchain will reduce the cardinal drivers of firms across sectors. Why do you need school when your brain is an extension of the internet? Unbounded possibilities; it’s ON.

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