The Shift to a Zero Marginal Cost Society: What Does It Mean for You?

Remember the first time you hailed an Uber? It felt like magic. A stranger pulled up in a car, picked you up, dropped you off safely, and you didn’t even have to reach for your wallet. The experience was seamless, revolutionary even. But fast forward to the fourth or fifth time you used the app, and a technical glitch made you question it. “What’s wrong with this thing?!” you might have thought. We get used to technological marvels so quickly, don’t we?

That’s the nature of human beings—we acclimate, and what was once awe-inspiring becomes commonplace. But here’s the thing: we’re moving toward a new world where digital disruption is becoming the norm in every industry. Welcome to the era of the Zero Marginal Cost Society.

The Digital Transformation of Entire Industries

We’ve all witnessed the shift. Music, for instance, was once something we bought in CD shops—remember those? Today, Spotify curates music for us, and we don’t even think twice about it. We don’t buy albums; we consume genres, playlists, and artists we’ve never heard of, all suggested to us by algorithms. The cost of accessing music has plummeted. It’s practically free.

Photography used to be a labor-intensive process, too. We’d print photos and hope at least a couple turned out decent. Now, we take unlimited pictures, and thanks to editing software and filters, we all look like supermodels.

And how about movies? Gone are the days of renting DVDs or going to the cinema to see the latest release. We now have a plethora of streaming services at our fingertips, so much so that we often don’t even know what to watch.

What’s Next? Human Experience is Becoming Priceless

As these industries go digital and marginal costs approach zero, we’re seeing an interesting trend: human experiences are becoming more valuable. In fact, Netflix is building physical “Netflix Houses,” similar to Disney’s theme parks. As digital entertainment becomes saturated, companies are investing in creating immersive, real-world experiences. And as AI becomes more prevalent, experiences that can’t be digitized will hold even more value.

Communication has also become virtually free. We now talk to anyone around the world for hours without thinking twice about the cost, all thanks to apps like WhatsApp and free Wi-Fi. Did any of us imagine this would be possible? Likely not.

Looking Ahead: What Will Become Free Next?

Here’s where it gets even more interesting. Transportation is on the path toward becoming nearly free. Think about it: most of what we pay for in transportation today covers the cost of the driver, fuel, and maintenance. As autonomous vehicles and electric cars become more common, these costs will drop drastically, potentially making transportation almost free.

The next sector poised for disruption is power generation. With solar, wind, fusion, and hydrogen technologies advancing rapidly, the cost of energy could soon plummet as well.

And let’s not forget about computing power. The cost of computing continues to decrease as hardware becomes more efficient and capable. Every new chip contains billions of transistors, allowing us to do more at a fraction of the cost.

Finally, we have services. We are already witnessing the rise of algorithmic intelligence in service industries. Large language models (LLMs) like ChatGPT are revolutionizing the way we solve problems. Soon, we’ll see Action Models (LAMs)—AI systems capable of taking actions on our behalf, from booking restaurants to managing transportation. We’ve already seen early attempts at this with rudimentary products, but as history shows, the first iteration of any technology is often the least impressive. By year’s end, virtual assistants will become even more advanced, thanks to the integration of powerful AI models.

The Intimacy Economy: A New Relationship with AI

We’re on the cusp of the Intimacy Economy, where our relationship with AI will become personal, even intimate. Picture this: You’ll ask your AI assistant to find a restaurant, book a table, arrange transportation, and handle all the small details—without lifting a finger. This isn’t some far-off future; it’s happening now, and it’s only going to become more pervasive.

What Does It Mean to Be an Evolved Human?

With the world changing at breakneck speed, one question looms large: What does it mean to evolve as a human being in this age of disruption? Holding onto old ways of thinking and doing things will only leave us behind. Instead, we must embrace the changes, adapt, and continue to learn.

The Zero Marginal Cost Society isn’t just about making things free—it’s about fundamentally changing how we live, work, and interact with the world. So, are you ready to evolve?

Note: This blog post is an adaptation of the transcript from the video below, which forms part of my video series on AI.

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