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The Rise of Algorithmic Oracles and the Power They Hold

MIT Technology Review AI •
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A trio of new books examines how predictive algorithms shape modern life. Maximilian Kasy's 'The Means of Prediction' argues these tools, built on supervised learning using vast labeled datasets, inherently prioritize corporate profit over individual welfare. He contends consequences like biased hiring and reduced life expectancy are not unintended flaws but the system functioning as designed.

Benjamin Recht's 'The Irrational Decision' traces the roots of this reality back to post-WWII decision theory, where computers became ideal rational agents quantifying uncertainty for optimization. This mathematical rationality now drives everything from social media feeds to job applications, reducing human choices to cost-benefit calculations. The books collectively warn that algorithmic prediction is not neutral but a mechanism for control, demanding democratic oversight of 'the means of prediction' like data and infrastructure.