Technology changes what we value, often in ways we don’t see coming.
This may be one of the most important economic consequences of the artificial-intelligence revolution.
The internet made information abundant. Social media made it possible to connect with almost anyone. AI is now making digital experiences cheaper, faster and easier to produce. As digital abundance grows, physical experiences technology cannot replicate will become more valuable.
My career has been defined by a desire to forge connections. That was our reason for being at AOL: to connect people to information and one another in ways previously impossible. It succeeded. But as the internet evolved, the nature of those connections changed. Social media platforms began using algorithms designed to predict engagement. The pitch was that by filtering out the noise, you could connect with countless people who shared your interests and views. But it had unintended consequences. We were robbed of the serendipity of meeting people outside our filter bubbles.
The same trade-off exists in the convenience economy. When I was in my 20s, it was hard to get a late dinner delivered unless it was pizza. Today, an app can drop almost any meal at your front door in minutes. That’s great — but it also means you’re less likely to become a regular at the diner down the street. Convenience and connection are not the same thing.
In the early 1980s, the futurist John Naisbitt gave this dynamic a name: “high tech/high touch.” The more technology we push into our lives, he argued, the more we crave a counterbalancing human response. That idea takes on new urgency in the age of AI.
AI can summarize almost any subject, generate images in seconds and perform tasks that once required a human. When entertainment is available on demand, we seek events that give us reason to leave the house. When any place in the world can be explored virtually, being there in person becomes more meaningful.
The shift is already visible. One of National Geographic’s fastest-growing offerings is expedition travel. Disney’s theme parks continue to draw record crowds. Fans fill arenas and stadiums to hear songs they’ve each streamed hundreds of times — for the chance to experience it together. This summer’s World Cup illustrated the trend perfectly. For millions, it became a collective experience, watched together in parks and public squares.
Travis Kalanick, the cofounder of Uber, recently raised $1.7 billion for an industrial AI company. His mantra is blunt: “Land is the whole damn thing.” AI can make physical assets more productive, but it cannot make land, factories or real-world infrastructure more abundant. Bernard Arnault of LVMH also recognizes the puck has moved from owning products to valuing experiences, investing heavily in hotel properties. Barry Diller is seeking to acquire MGM Resorts, in part because it offers real-world assets and physical experiences AI can’t easily disrupt.
As consumers place a premium on experiences that require time and physical presence, entrepreneurs have an opportunity to build the places, businesses and experiences technology cannot easily reproduce. The next great wave of innovation may not be about making the physical world more like the digital one. It may be about making us want to return to it.
Steve Case is chief executive officer of Revolution, which invests in startups, and cofounder and former CEO of AOL.
BLOOMBERG
