Here are some interesting charts from a16z showing that, despite its dominance today, tech still represents a smaller percentage of the US stock market than railroads did at the turn of the 20th century. One parallel you could draw from this is that "tech" as we know it today, may not be so dominant a hundred years from now.

But railroads continue to play a critical function in the modern economy. They are still the most cost-effective way to move heavy goods over long distances. A single freight train can carry the load of several hundred semi-trucks.

The more interesting parallel might be the one that a16z raises in its post: railroads both led to further economic growth and rewired the way businesses and organizations were structured.

Railroads were a new kind of business requiring massive scale and coordination, which led to new ways of thinking about "management." Perhaps not surprisingly, it was around this time (1881) that the world's first collegiate business school was formed at the University of Pennsylvania.

The parallel to AI today, as argued by Jack Dorsey and maybe others, is that it's going to similarly rewire how businesses are organized and what middle management does:

"Instead of absorb and route information, maintain alignment, pre-compute decisions, etc.—the kind of coordination that management typically is responsible for—in an AI business, humans move to the edges, to focus their judgment on customer contact and human interactions."

At least, this is the hypothesis.

But if it does prove to be true, let's consider what we often discuss on this blog, which is: what will it mean for our cities and built environment? Well, what I find interesting about the above quote is that it suggests AI will push humans further toward the things that we are uniquely suited to do: interacting with other humans and building meaningful relationships.

And if that is, in fact, what happens, then there's no more efficient place to be than in dense urban cities. Looking someone in the eyes, shaking their hand, and slurping ramen noodles together at a busy bar counter is not something that AI will be able to do for us.

Cover photo by Mike Beaumont on Unsplash

Charts from a16z