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The Economy of Algorithms: AI and the Rise of the Digital Minions
An insider's guide to the invisible new economy that is reshaping our lives
Welcome to the economy of algorithms. It's here and it's growing.
In the past few years, we have been flooded with examples of impressive technology. Algorithms have been around for hundreds of years, but they have only recently begun to 'escape' our understanding. When algorithms perform certain tasks, they're not just as good as us, they're becoming infinitely better, and, at the same time, massively more surprising. We are so impressed by what they can do that we give them a lot of agency. But because they are so hard to comprehend, this leads to all kinds of unintended consequences.
In the twentieth century, things were we had the economy of corporations. In the first two decades of the twenty-first century, we saw the emergence of the economy of people, otherwise known as the digital economy, enabled by the internet. Now we're seeing a new economy take the economy of algorithms.
How do you advertise to a fridge? Can an algorithm take your job? Do algorithms dream of electric sheep? These questions and more are answered by this exciting and ground-breaking book, which includes nine rules for flourishing in the new economy of algorithms.
'AI appears to be eating the world. How then to understand where this is taking us, both the promises and the threats? This book is for you. A down to earth tour that will help you understand how the algorithms are increasingly taking on human roles.' --Toby Walsh, Chief Scientist at the UNSW AI Institute and author of Machines Behaving Badly
Welcome to the economy of algorithms. It's here and it's growing.
In the past few years, we have been flooded with examples of impressive technology. Algorithms have been around for hundreds of years, but they have only recently begun to 'escape' our understanding. When algorithms perform certain tasks, they're not just as good as us, they're becoming infinitely better, and, at the same time, massively more surprising. We are so impressed by what they can do that we give them a lot of agency. But because they are so hard to comprehend, this leads to all kinds of unintended consequences.
In the twentieth century, things were we had the economy of corporations. In the first two decades of the twenty-first century, we saw the emergence of the economy of people, otherwise known as the digital economy, enabled by the internet. Now we're seeing a new economy take the economy of algorithms.
How do you advertise to a fridge? Can an algorithm take your job? Do algorithms dream of electric sheep? These questions and more are answered by this exciting and ground-breaking book, which includes nine rules for flourishing in the new economy of algorithms.
'AI appears to be eating the world. How then to understand where this is taking us, both the promises and the threats? This book is for you. A down to earth tour that will help you understand how the algorithms are increasingly taking on human roles.' --Toby Walsh, Chief Scientist at the UNSW AI Institute and author of Machines Behaving Badly
285 pages, Kindle Edition
First published March 5, 2024
24 people are currently reading
172 people want to read
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Displaying 1 - 16 of 16 reviews
March 12, 2024
A very good study of the current state of play of AI by an Australian expert in the field. He knows his stuff and can explain it simply with lots of good examples. He looks at the benefits of AI and the pitfalls. He cites several examples of AI related disasters including the crashing of the Mars Rover. He doesn't encourage firms to replace staff with AI. He sees a future where AI and humans work together, each using their strengths to achieve better outcomes.
November 7, 2024
Author is pro-business, hardly impartial. He also feels compelled to communicate jargon for the sake of it. The author talks more about business than AI. The content was superficial.
July 24, 2024
Here’s how one of these digital minion’s (perplexity.aI) describes the book:
“In his provocative and insightful new book, "The Economy of Algorithms: AI and the Rise of the Digital Minions," Marek Kowalkiewicz, a professor and Chair in Digital Economy at QUT Business School, takes readers on a thrilling journey into the rapidly evolving world of algorithms and artificial intelligence. With a keen eye for detail and a knack for distilling complex concepts into accessible prose, Kowalkiewicz illuminates the myriad ways in which these "digital minions," like the enchanted brooms in Goethe's classic poem "The Sorcerer's Apprentice," are reshaping our lives, our economy, and our very understanding of what it means to be human.
At the heart of Kowalkiewicz's book is a simple but profound observation: algorithms, once confined to the realm of abstract mathematics and computer science, have "escaped" our understanding and taken on a life of their own in the “real world”. They are no longer mere tools, but active agents in the world, making decisions that have far-reaching consequences for individuals, businesses, and society as a whole. As Kowalkiewicz puts it, "We are so impressed by what they can do that we give them a lot of agency. But because they are so hard to comprehend, this leads to all kinds of unintended consequences."
Through a series of vivid anecdotes and case studies, Kowalkiewicz illustrates the many ways in which algorithms are already shaping our lives, sometimes with disastrous results reminiscent of the flooding workshop in Goethe’s poem. From the hilarious bidding war between rival algorithms on Amazon that saw a copy of a biology book about flies listed for more than $23 million, to the tragic case of pedestrians mowed down by robotaxis, Kowalkiewicz shows how algorithms can be both ludicrously incompetent and terrifyingly powerful. He also delves into the more insidious ways in which algorithms can perpetuate bias and discrimination, as in the case of prisoners denied bail on the advice of software or welfare recipients hounded by an algorithmic debt collector.
But Kowalkiewicz is no Luddite. He is a tech enthusiast with a background in software development, and he sees tremendous potential in the rise of the digital minions. His book is geared towards businesses and entrepreneurs, offering practical advice on how to harness the power of algorithms to automate boring tasks, enhance decision-making, and drive innovation. At the same time, he implores us not to let this new economy "spiral out of control," arguing that the key to asserting human agency in the age of algorithms is digital literacy, lest we end up like the hapless apprentice, unable to control the forces we have unleashed.
Kowalkiewicz's writing is lively and engaging, peppered with pop culture references and wry observations. He has a gift for explaining complex technical concepts in plain language, making his book accessible to a wide audience. And while he is clearly enamored with the potential of algorithms, he is also clear-eyed about their limitations and the need for human oversight. As he puts it, "Minions want to be helpful, they want to work 24/7, full of energy right? But you look away for half a day and they start creating havoc.”
"The Economy of Algorithms" is a timely and important book, one that should be required reading for anyone seeking to understand the rapidly changing world we live in. Kowalkiewicz has written a lucid and compelling guide to the age of the digital minions, one that is both a celebration of their potential and a warning about their perils. It is a book that will leave readers both exhilarated and unsettled, eager to embrace the possibilities of this new economy while also mindful of the need to assert our own agency in the face of the machines, lest we find ourselves, like the sorcerer's apprentice, overwhelmed by the forces we have conjured.”
“In his provocative and insightful new book, "The Economy of Algorithms: AI and the Rise of the Digital Minions," Marek Kowalkiewicz, a professor and Chair in Digital Economy at QUT Business School, takes readers on a thrilling journey into the rapidly evolving world of algorithms and artificial intelligence. With a keen eye for detail and a knack for distilling complex concepts into accessible prose, Kowalkiewicz illuminates the myriad ways in which these "digital minions," like the enchanted brooms in Goethe's classic poem "The Sorcerer's Apprentice," are reshaping our lives, our economy, and our very understanding of what it means to be human.
At the heart of Kowalkiewicz's book is a simple but profound observation: algorithms, once confined to the realm of abstract mathematics and computer science, have "escaped" our understanding and taken on a life of their own in the “real world”. They are no longer mere tools, but active agents in the world, making decisions that have far-reaching consequences for individuals, businesses, and society as a whole. As Kowalkiewicz puts it, "We are so impressed by what they can do that we give them a lot of agency. But because they are so hard to comprehend, this leads to all kinds of unintended consequences."
Through a series of vivid anecdotes and case studies, Kowalkiewicz illustrates the many ways in which algorithms are already shaping our lives, sometimes with disastrous results reminiscent of the flooding workshop in Goethe’s poem. From the hilarious bidding war between rival algorithms on Amazon that saw a copy of a biology book about flies listed for more than $23 million, to the tragic case of pedestrians mowed down by robotaxis, Kowalkiewicz shows how algorithms can be both ludicrously incompetent and terrifyingly powerful. He also delves into the more insidious ways in which algorithms can perpetuate bias and discrimination, as in the case of prisoners denied bail on the advice of software or welfare recipients hounded by an algorithmic debt collector.
But Kowalkiewicz is no Luddite. He is a tech enthusiast with a background in software development, and he sees tremendous potential in the rise of the digital minions. His book is geared towards businesses and entrepreneurs, offering practical advice on how to harness the power of algorithms to automate boring tasks, enhance decision-making, and drive innovation. At the same time, he implores us not to let this new economy "spiral out of control," arguing that the key to asserting human agency in the age of algorithms is digital literacy, lest we end up like the hapless apprentice, unable to control the forces we have unleashed.
Kowalkiewicz's writing is lively and engaging, peppered with pop culture references and wry observations. He has a gift for explaining complex technical concepts in plain language, making his book accessible to a wide audience. And while he is clearly enamored with the potential of algorithms, he is also clear-eyed about their limitations and the need for human oversight. As he puts it, "Minions want to be helpful, they want to work 24/7, full of energy right? But you look away for half a day and they start creating havoc.”
"The Economy of Algorithms" is a timely and important book, one that should be required reading for anyone seeking to understand the rapidly changing world we live in. Kowalkiewicz has written a lucid and compelling guide to the age of the digital minions, one that is both a celebration of their potential and a warning about their perils. It is a book that will leave readers both exhilarated and unsettled, eager to embrace the possibilities of this new economy while also mindful of the need to assert our own agency in the face of the machines, lest we find ourselves, like the sorcerer's apprentice, overwhelmed by the forces we have conjured.”
Want to read
August 30, 202430/8/24: book recommendation from Mr Y
July 13, 2024
A good overview book regarding algorithms and specifically how they operate to make money for the major platforms. Loved the sections on automating ourselves out of roles, so much so that is a focus over this summer to try and improve automating elements of my life and work. The final section summarizing how businesses should go about Utilising algorithms or essentially go bust - is excellent and thought provoking:
- Automate relentlessly but mindfully
- Build an army of digital minions
- Empower people
- Automate relentlessly but mindfully
- Build an army of digital minions
- Empower people
July 9, 2024
A great book covering all areas of algorithms and AI, with eye opening insights and stats. Be aware, this book is mostly dedicated to entrepreneurs, business owners and executives rather than everyday people..
January 28, 2025
The Economy of Algorithms: AI and the Rise of the Digital Minions by Marek Kowalkiewicz is an entertaining primer on the rise of different elements of autonomous AI in the economy, including algorithms that buy things for you, as interventions between businesses and customers, and as assistants to help manage your day to day life. This is very much a business oriented work, which means that there's not a lot of threat awareness at play. Of course, Kowalkiewicz does a few things to nod in that direction, but its clear that he's on the optimistic side - even if the opening lines may lead one to doubt. This is worth a look if you want something quick, but perhaps something to be read along with other stuff.
December 20, 2024
I would tag this as a must read for non technical professionals so understand the impact of automation in day to day business
December 15, 2024
Marek Kowalkiewicz's The Economy of Algorithms is fascinating but not outstanding. The book has three parts: the first defines algorithms and includes a brief chapter on their history; the second discusses case studies and the status of algorithms today; and the concluding section discusses the nine rules for managing your business in this emerging environment.
I thought the first section to be the most interesting, significantly so, as it clarifies the definition of algorithms. As the author Marek Kowalkiewicz, says, algorithms have been part of our lives for centuries. I encourage all those unafraid of school mathematics to unearth their old geometry books and study Euclid’s theorems again. Pay attention to the systematic process required to prove a theorem, and a shock may go through you when you recognize you have studied algorithms as a school child.
Marek Kowalkiewicz discusses how algorithms have become more pervasive with the rise of computers, artificial intelligence, and machine learning. He makes an excellent point: AI and algorithms are here to stay for the foreseeable future. It is up to us to decide how to use them: do we allow them to rule us, or do we use them as digital minions?
However, while he makes an excellent point when he writes about digital minions, he does not discuss the flip side of the coin. Once we become accustomed to digital minions, our dependence on them grows, and will they then rule us? Consider the following case: fifty years ago, many of us did basic math in our heads, but now, most people depend on calculators to make even the most straightforward calculations.
His gushing tone about algorithms' benefits ignores the pitfalls of over-dependence, the dangers of human bias entering algorithms, and the pitfalls of human error that may affect algorithmic accuracy.
The last section is trite; he seems to have extracted these lessons from management texts. I like the concept of ‘transient advantage’ versus ‘competitive advantage,’ but he could have done better by analyzing where one term is used over the other.
The book will soon be outdated, so read it now!
I thought the first section to be the most interesting, significantly so, as it clarifies the definition of algorithms. As the author Marek Kowalkiewicz, says, algorithms have been part of our lives for centuries. I encourage all those unafraid of school mathematics to unearth their old geometry books and study Euclid’s theorems again. Pay attention to the systematic process required to prove a theorem, and a shock may go through you when you recognize you have studied algorithms as a school child.
Marek Kowalkiewicz discusses how algorithms have become more pervasive with the rise of computers, artificial intelligence, and machine learning. He makes an excellent point: AI and algorithms are here to stay for the foreseeable future. It is up to us to decide how to use them: do we allow them to rule us, or do we use them as digital minions?
However, while he makes an excellent point when he writes about digital minions, he does not discuss the flip side of the coin. Once we become accustomed to digital minions, our dependence on them grows, and will they then rule us? Consider the following case: fifty years ago, many of us did basic math in our heads, but now, most people depend on calculators to make even the most straightforward calculations.
His gushing tone about algorithms' benefits ignores the pitfalls of over-dependence, the dangers of human bias entering algorithms, and the pitfalls of human error that may affect algorithmic accuracy.
The last section is trite; he seems to have extracted these lessons from management texts. I like the concept of ‘transient advantage’ versus ‘competitive advantage,’ but he could have done better by analyzing where one term is used over the other.
The book will soon be outdated, so read it now!
April 14, 2024
Engaging, insightful, and thoroughly researched, the Economy of Algorithms is essential reading for anyone eager to grasp the influence of algorithms on their lives and the the impact on their families, friendships, workplaces, information channels, and consumer experiences.
As Mao Zedong aptly put it,
“We often limit our perspective. Like the frog at the bottom of the well, we perceive the sky to be just the size of the well's opening. Rise above, and a whole new world reveals itself.”
Prof. Marek Kowalkiewicz takes us to the 'top of the well' by elevating our understanding of the ubiquity of algorithms, their advantages, and the potential pitfalls they present. His nine guidelines for thriving in this evolving digital world offer valuable insight for those seeking to control their own destiny as external forces increasingly attempt to dictate & control.
As Mao Zedong aptly put it,
“We often limit our perspective. Like the frog at the bottom of the well, we perceive the sky to be just the size of the well's opening. Rise above, and a whole new world reveals itself.”
Prof. Marek Kowalkiewicz takes us to the 'top of the well' by elevating our understanding of the ubiquity of algorithms, their advantages, and the potential pitfalls they present. His nine guidelines for thriving in this evolving digital world offer valuable insight for those seeking to control their own destiny as external forces increasingly attempt to dictate & control.
April 18, 2025
If you don’t know anything about algorithms this might be a good book for you to read. If you have done any amount of math or computer science in your life, I don’t think this book will teach you much.
July 11, 2024
Interesting book, but some of the topics seemed like a stretch to categorise as being a product of the economy of algorithms.
September 15, 2024
Started in a very promising way but the last quarter of the book was a bit boring and sort of lost the argumentation that was very captivating in the beginning of the book.
December 30, 2024
An insightful journey throuhg the cuurent state of AI. This book stays at a level that means it will be consumable by the non-technical reader and shouldn't go out of date too quickly.
March 20, 2025
Did not like it. Struggled through the pages, giving up at the end.
June 15, 2025
A thought-provoking read that delves into the growing influence of algorithms on business, society, and decision-making. The Economy of Algorithms strikes a fine balance — neither too technical nor overly simplified — as it explores how algorithms shape outcomes, amplify biases, and increasingly operate with a level of autonomy that often escapes human oversight. The author weaves in historical context, sharp observations, and a few wry anecdotes to keep the narrative both accessible and reflective.
What stood out for me is the book’s ability to raise important questions without resorting to alarmism. It prompts the reader to think critically about the invisible forces shaping everyday choices and how we might better balance automation with human judgment. A solid pick for anyone curious about the intersection of AI, data, and the modern economy
What stood out for me is the book’s ability to raise important questions without resorting to alarmism. It prompts the reader to think critically about the invisible forces shaping everyday choices and how we might better balance automation with human judgment. A solid pick for anyone curious about the intersection of AI, data, and the modern economy
Displaying 1 - 16 of 16 reviews