Brookings: AI slashes the cost of expertise and redraws the firm's boundary
rvp · x · 2026-09-29
The post relays a Brookings essay by economist Garicano. His argument: AI radically lowers the fixed cost of acquiring expert knowledge, disrupting the classical economies of scale that historically forced firms to outsource complex tasks. By making specialized information accessible to non-experts, AI lets client firms pull routine professional services entirely in-house—shifting the traditional boundary of the firm and leaving external specialists only rare, highly complex cases.
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