The future of the innovation economy

In a special Future of Everything podcast episode recorded live before a studio audience in New York, host Russ Altman talks to three authorities on the innovation economy. His guests – Fei-Fei Li, professor of computer science and co-director of the Stanford Institute for Human-Centered AI (HAI); Susan Athey, professor and authority on the economics of technology; and Neale Mahoney, Trione Director of the Stanford Institute for Economic Policy Research – bring their distinct-but-complementary perspectives to a discussion on how artificial intelligence is reshaping our economy.

Athey emphasizes that both AI broadly and AI-based coding tools specifically are general-purpose technologies, like electricity or the personal computer, whose impact may be felt quickly in certain sectors but much more slowly in aggregate. She tells how solving one bottleneck to implementation often reveals others – whether in digitization, adoption costs, or the need to restructure work and organizations. Mahoney draws on economic history to say we are in a “veil of ignorance” moment with regard to societal impacts. We cannot know whose jobs will be disrupted, he says, but we can invest in safety nets now to ease the transition. Li cautions against assuming AI will replace people. Instead, she speaks of AI as a “horizontal technology” that could supercharge human creativity – but only if it is properly rooted in science, not science fiction.

Collectively, the panel calls on policymakers, educators, researchers, and entrepreneurs to steer AI toward what they call “human-centered goals” – protecting workers, growing opportunities, and supercharging education and medicine – to deliver broad and shared prosperity. It’s the future of the innovation economy on this episode of Stanford Engineering’s The Future of Everything podcast.

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Episode Reference Links:

• Stanford Profile: Fei-Fei Li
• Stanford Profile: Susan Athey
• Stanford Profile: Neale Mahoney

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Chapters:

(00:00:00) Introduction

Russ Altman introduces live guests Fei-Fei Li, Susan Athey, and Neale Mahoney, professors from Stanford University.

(00:02:37) Lessons from Past Technology

Comparing AI with past technologies and the bottlenecks to their adoption.

(00:06:29) Jobs & Safety Nets

The uncertainty of AI’s labor impact and investing in social protections.

(00:08:29) Augmentation vs. Replacement

Using AI as a tool to enhance, not replace, human work and creativity.

(00:11:41) Human-Centered AI & Policy

Shaping AI through universities, government, and global collaboration.

(00:15:58) Education Revolution

The potential for AI to revolutionize education by focusing on human capital.

(00:18:58) Balancing Regulation & Innovation

Balancing pragmatic, evidence-based AI policy with entrepreneurship.

(00:22:22) Competition & Market Power

The risks of monopolies and the role of open models in fair pricing.

(00:25:22) America’s Economic Funk

How social media and innovation are shaping America’s declining optimism.

(00:27:05) Future in a Minute

The panel shares what gives them hope and what they’d