DeepMind's Shane Legg co-authors model of how AI reorganizes firms and the economy

soumitrashukla9 · x · 2026-11-07

Alex Imas, Andrew Koh and Shane Legg (Google DeepMind) release "Organizing Intelligence", a model of how intelligence sorts into firms. Key points: competence shifts productivity levels while coordination governs scaling; AI expertise is reproducible unlike fixed human expertise; AI coordination can break the Coasean ceiling on firm size, driving a phase transition toward large, AI-heavy firms; employment shifts are gradual within mixed firms but sudden when AI firms outcompete; a reorganization effect can reverse technology-driven wage changes.

Related event: DeepMind's Legg Co-authors Paper Modeling How Intelligence Gets Organized into Firms(3 posts)→

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