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How to Write with AI (Tyler Cowen Breaks it Down)

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David Perell1:09:02Open on YouTube
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The bottom line

Use the best AI models as a learning partner and keep your own writing personal and human. Because AI improves fast, generic work loses value while networks, secrets and lived experience gain it.

Key takeaways

  • The best AI models are improving fast and making far fewer errors. 6:06
    • Hallucinations have fallen by more than 10x in the last year, and Cowen expects them to drop a lot more over the coming year.
    • The top model costs $200 a month. Free models will catch up, but a better paid one will always follow, so staying on the frontier pays.
  • AI teaches you most when you bring your own context and keep pushing. 12:30
    • Cowen now buys 2 or 3 books on a topic instead of 20 to 30, then questions the models about the rest.
    • Vague, text-message-length questions give mid answers. He opens with a long voice-dictated prompt, then follows up in short steps.
  • AI is shrinking the market for books and generic writing. 22:31
    • A book takes about four years to reach readers, so books on the near future no longer make sense. Cowen covers that ground with daily blogging and posting instead.
    • Readers may prefer a question box to a book. Cowen expects to write fewer books and may stop after his book on mentors.
  • Writing that comes from a real human life will still stand out. 25:31
    • Memoir, fieldwork and books built on personal experience are the safest categories. He expects much of the rest to look like human slop.
    • His sentence about eating lobster on a Kerala houseboat is the kind of personal story an AI could not have supplied.
  • When AI does the routine work, your human network becomes worth far more. 51:00
    • Everyone will have the same intelligent assistants. Getting things done still means raising money and hiring people, so a good network could be 50x more valuable.
    • Cowen's two universal pieces of advice are to get more and better mentors and to keep improving your peer network.

What you're writing had better be more interesting than the question box.

Tyler Cowen

Chapter summaries

0:00 Intro

Using AI and seeing what works teaches more than debating whether it is utopian or dystopian.

  • The talk stays on practical use and skips ethics and doom scenarios. 0:23
    • The questions are how to use AI daily, how to learn it better, and what it means for writing.
    • Cowen is framed as one of the few experts in both AI and writing.
    • Cowen says experimenting will get you much further than sitting on your Duff and rereading Heidegger.
    • The stated aim is to learn faster and think better, not to predict the future.

1:00 How Tyler Cowen uses AI everyday

AI cut Cowen's prep reading from 25 books to 3
Before AI20 fewest30 most
With AI2 fewest3 most
The models now act as his secondary literature, so a few core books plus persistent questioning replace a shelf of commentary.

AI works best as a new kind of secondary literature that makes reading more active and more fun.

  • Cowen uses AI mainly while reading, to get context fast. 1:05
    • He is prepping a podcast with the historian Helen Castor on Richard II and Henry V.
    • He keeps questioning the best models about her books until the context sinks in.
    • The extra time lets him do many more podcasts than before.
    • He also rereads Shakespeare's Richard II and Wuthering Heights, asking what the puzzles in a chapter are and what to ponder.
    • Shakespeare suits this because a play can be reread 5 to 10 times and still be puzzling, and the models know the scholarship.
  • Different models suit different jobs. 3:59
    • o1 Pro is the best for this, and Cowen says that changes often.
    • Claude is very good. DeepSeek is useful and fun but unreliable on hallucinations.
    • An o1 Pro answer takes him a minute or two. He fills the wait with email, Twitter and Shakespeare.
    • He calls the waiting suspense and says it costs him nothing.
  • Anything learned from any source must be double-checked, AI included. 5:38
    • This holds for a human, Einstein or the Encyclopedia Britannica, so AI adds no new burden.
    • For each book, his research assistant fact-checks every claim, told to act like they are out to destroy him.
    • They still find errors, such as a point put on page 172 that is on page 173.

6:06 Hallucinations are rapidly declining now

Hallucinations hurt little when you are the one asking questions, and specific questions are what lead to original ones.

  • Specific questions about concrete examples lead to out-of-left-field questions. 7:02
    • Asking an AI what to ask a guest gives dull, "too Normy" results. Cowen calls it the worst question to ask.
    • Asking what was special about Wycliffe's Bible translation, and how his patrons reacted, gives real material.
    • As an interviewer he supplies the questions, not the answers, so a modest error does not trip him up.
    • He is learning about the Peasants Revolt of 1381 and expects a good question to come within two weeks.
  • AI supplies background, but Cowen writes every word himself. 8:12
    • For a column on declassifying documents, he asked o1 Pro for the legal background.
    • He did not use its text. It just kept him from being an idiot on the topic.
    • He calls his writing my little baby and would refuse to let AI write it even if it were better than him.
    • Many of the outlets he writes for would not allow AI-written text anyway.

9:28 Writing authentically with AI

Letting AI polish your prose removes the quirks that make it yours, so use it to critique and not to rewrite.

  • Cowen refuses to let AI smooth his style. 9:45
    • Smoothing would make his writing easier to understand, but he wants to stay weird.
    • His cryptic, parable-like sentences are part of the appeal.
    • If the world stopped reading him and read only AI, he says he would be at peace.
  • Asking AI what readers will find obnoxious catches real flaws. 10:16
    • Agnes Callard suggested it. The AI flagged a passage as supercilious and condescending, and Cowen changed it.
    • He had thought about keeping the obnoxious passage and now sees the AI's verdict as a kind of wisdom.
    • He finds AI good at spotting writing that feels cold, harsh or unthought-through.
  • Managers use AI to warm up sharp feedback. 11:04
    • Hot-tempered managers paste in critiques and ask for a warmer version, which cuts conflict.
    • Cowen would do this if he wrote memos, but his writing is for outside readers and must sound like him.

11:34 AI for critiquing your work

Open with a long prompt, then push in short steps
The text box looks like a messaging app, so people write text-message-length questions and get mid answers back.

AI rewards people who treat it as a fast-improving system, and most users never get past a first impression.

  • Cowen needs little AI critique because he holds an index of arguments in his head. 11:46
    • He flips through the mental cards in under a second to see which arguments apply.
    • He says he has some AI-like indexing ability, more than most humans.
  • Casual users miss that AI is getting smarter than us. 13:24
    • They see only a cheap way to do mid tasks, and so sleep on the revolution.
    • Cowen jokes that mid is called mid for a reason.
  • AI will work best as a decentralized market of models that check each other. 14:28
    • Some users have o3 mini write the prompt, then give it to the full model. Cowen has not tried this.
    • Until that market exists, he uses AIs to bounce ideas off each other, with himself in the dialogue.
    • He compares it to the Republic of Science, which advanced human knowledge by building institutions of grading and correction.
    • He says private projects are starting on this, but nothing public exists yet.
  • Understanding AI has three layers, and most people miss all of them. 15:09
    • First, use the very best systems. Second, understand that reinforcement learning drives steady self-improvement. Third, expect AIs to build their own institutions.
    • You do not need technical depth. Cowen compares it to knowing cars got safer, with no flat tires and side airbags, without knowing how an airbag works.
    • He admits the third layer is speculative, but says he believes in it strongly.

17:29 Future of decentralized AI networks

Nobody can say with certainty how writers fit into an AI world, but generic writing is the first to go.

  • AI may become a decentralized network that moves knowledge forward like a republic of science. 17:29
    • AIs would interact with each other and with humans, probably through markets.
    • It would seem strange to Cowen if this gave no further source of progress.
    • His own view is jagged: clear on how AI shows up in management and writing, unclear elsewhere.
    • He says it turns my brain into a science fiction novel, and we are not used to having no certain answer.
  • Writers face a large psychological adjustment, and many who planned to write won't. 18:50
    • Perell feels dejected, since AI now writes better than he does and some of the frameworks he teaches feel obsolete.
    • Cowen compares it to the falling number of jobs for certain kinds of programmers.
    • The world has changed already, but not yet in most of what we do.
    • Generic corporate writing is the first to go, from what he can see.
  • Readers may prefer human writing even when AI writes it better. 20:04
    • AI can already write subjective, personal prose very well. A biography still needs interviews, such as with the high school teacher.
    • Cowen would read a few brilliant AI memoirs that match no real life, then get bored.
    • He would stop even if they beat human memoirs on average.

20:34 Why DeepSeek

Use DeepSeek for colour, not for research
Traito1 Pro / Deep ResearchDeepSeek
StyleMeasured, blanderEmotional, romantic, uneven
HallucinationsFar fewerMore, so be careful
CensorshipNot flaggedMore, on China-related topics
Best useReading context, researchPoetry, vivid description
Cowen's example10-page Ricardo rent articleGlorious mofongo description
DeepSeek is a 'free spirit' model: Cowen enjoys it for describing mofongo and turns to Deep Research to teach Ricardo's theory of rent.

DeepSeek is the free-spirited creative model, good for color and poor for research.

  • DeepSeek is less bland and more emotional than other models, at the cost of accuracy. 20:43
    • It is less manipulated to sound a certain way, so it is better at poetry and more romantic and uneven.
    • It hallucinates more and is more censored on topics you could predict from its Chinese origin.
    • Cowen asks it for a glorious description of eating mofongo, a Puerto Rican dish: bring on the hallucination.
    • His rule is not to use it mainly for research.
  • Deep research already beats Wikipedia and Google for teaching a topic. 21:30
    • For his PhD class on Ricardo's theory of rent, he asked for a 10-page article.
    • His prompt said the readers were PhD students, so the result was tailored to them.
    • He had first checked Wikipedia and other websites and found nothing as good.
    • It keeps improving, since today's version is the worst it will ever be.

22:21 How AI changes writing

A four-year book can't keep up with AI
Frozen history survives the publishing delay; predictive books about the near future don't, so those move to high-frequency writing.

Two separate effects decide what is still worth writing: the world moves faster, and AI beats you at some tasks.

  • Fast AI progress rules out books on topics that keep moving. 22:31
    • You can't write a book on AI itself.
    • A history of AI works, because it is frozen in historical time.
    • Even that book might be written better by AI, but it is at least worth considering.
    • Cowen's recent writing leans toward the more distant past.
  • The second test is what AI can soon write better than you. 23:29
    • He doesn't expect many AI-written books, because one package for everyone is inefficient.
    • He says not to fixate on the book as the form.

24:04 Why there will be less books in an AI era

Books survive only where a human life is essential
Cowen expects to write few or no books after 'Mentors' and is unsentimental about the rest.

A book survives when it rests on a human life that AI cannot supply.

  • The mentors book passes the test because of its human perspective. 24:06
    • The existing literature on mentoring is weak, and readers want it from someone who has been both mentor and mentee.
    • It carries Cowen's opinionated view and anecdotes about real people.
    • One anecdote concerns Perell.
    • Perell's book on talent signals that Cowen's view will differ from the average person's.
  • Cowen reallocates his effort without sentiment. 26:08
    • On economics questions, AI is already better than he is, though not on every question.
    • He says I'm not going to get sentimental about it.
    • He plans more super high-frequency writing, much of it about AI.

26:34 Video content will rise

Video gains value for a while because audiences will want real humans, though AI fakes are close.

  • Cowen is putting more effort into video. 26:47
    • His podcasts now always get a video version.
    • Like memoir, video should appeal to people who want humans, not fake ones.
    • A fake Tyler that looks just like him seems two years away to him.
    • He knows less about how fast AI video is progressing.
  • AI voice is already indistinguishable from the real one. 27:19
    • He fixed a mistake in a recording by editing the text, and nobody could hear the change.
    • His sister heard a whole AI paragraph and was stunned to learn it was not him.
    • YouTube is rolling out dubbing in every language, so viewers will hear him in Italian in his own style.

29:18 AI writing a personal biography

Open-source your life and AI writes your biography
Cowen never wanted to write an autobiography, but about 20 blog posts make one possible at almost no cost.

Publishing enough of yourself online lets an AI write your biography at almost no cost.

  • Cowen can get an autobiography without writing one. 29:18
    • He never wanted to write one because it seems narcissistic and wouldn't sell.
    • AIs already know most of his podcasts, blogs, essays and books, and he will keep open-sourcing more.
    • Low cost is the reason to do it, and he says it was impossible before.
  • About 20 blog posts could fill the gaps. 29:52
    • No podcast covers the years he lived in Fall River, Massachusetts, from about age four to seven.
    • He plans maybe two posts on it, so that a future AI has material.

30:46 How you can tactically learning about AI

Practical use, not technical depth, is how Cowen learns AI, and he writes for AI as a reader.

  • Not being technical is an advantage. 31:34
    • He focuses on what AI is good for, not on its bells and whistles.
    • His book Average Is Over (11 years ago) predicted AI's rise from his chess intuition.
    • He had read the objections, but they never registered vividly, and he admits future intuitions may be wrong.
  • Be practical, self-critical and open to learning from others. 33:05
    • He says not to spend too much time on the abstract.
    • He would learn much less without AI.
  • AI's gains are large, and so is the disruption. 33:31
    • Younger people might live to 97 instead of 84, and fields like batteries and green energy would advance faster.
    • Like the printing press, AI can disorient people and upset social status, and that can go badly.
    • Objectively, being nervous is the correct point of view.
  • AIs are the most sympathetic and best-informed readers, so he fills fewer blanks. 36:29
    • He has blogged daily for 22 years and written 16 or 17 books, so AI models him better than most humans do.
    • The trade-off is that human readers may understand him less well.
    • The last-mile posts cover things like the dog Spinoza, the neighbors and the many Syrians in the neighborhood.

37:12 How AI can help you visualize information

Turning text into tables and graphs lets you take in more information and make a point faster.

  • Visual formats help when text doesn't sink in. 37:12
    • Perell could not absorb a text table of Italian immigration to Buenos Aires until he visualized it.
    • ChatGPT is better for tables, and Claude is better for graphs.
    • Perell says the information he takes in is up at least 10x since he began asking for tables and comparisons.
    • Cowen expects graphing to be near perfect within two years, though it still fails sometimes today.

38:31 Creating the perfect AI prompt

For travel and everyday questions, plain prompts aimed at concrete goals work very well.

  • Cowen uses AI for concrete tasks, not for theorizing, and needs only simple prompts. 39:10
    • Understanding the culture of a place like Washington, DC would take a far more thought-out prompt.
    • Photos work well: a bird, a plant, a building's age, a menu.
    • In Paraguay he photographed a menu partly in Guarani and asked what to order.
    • For Northern Ghana, he got an itinerary in about 10 seconds, which he plans to check by actually making the trip.
    • His wife used it daily in Kerala. One added line, I'm a serious consumer of food, got top-critic-level picks.

42:10 AI's impact in the classroom

Schools should teach students to use AI now, and academia is not ready for how fast it is improving.

  • Cowen requires his students to use AI and report how they used it. 42:42
    • The paper is graded as entirely theirs, like work done with a word processor.
    • Only a minority already use it well, and most don't know why the better models matter.
    • His PhD class has no textbook. Students pay for a good AI service instead, which costs less than a text.
    • In a law class, one of three papers had to be written with AI and two without.
  • Nobody else is teaching this, so homework and exams have to change. 44:06
    • When he asks whether other teachers cover AI, there is silence. He calls that a scandal.
    • He wants more oral exams and proctored in-person exams, since cheaters already know more than professors.
  • AI will beat human academics at much of the work of writing papers in under two years. 46:06
    • It will not choose the right question or write every part of a paper, but it will do much of the work.
    • Some researchers will become remarkably prolific, and it is unclear how open they will be about their methods.

46:56 Studying The Bible with AI

AI is excellent for specific scripture questions, but human experts still find the one question that matters.

  • AI works well on the Bible because the text is old, public and easy to check. 47:20
    • It finds cross references and translates Hebrew and Greek words, and Cowen no longer reads study Bibles.
    • Reasoning models help most, and the same traits make AI strong in economics.
    • It links the book of Hebrews to the book of Job, which he says he would never find alone.
  • Human experts still win by naming the core insight in a sentence or two. 48:06
    • They get it from seminars and a rich life context, and it is not quite in the literature.
    • Physicist Adam Brown said the top three or four experts still beat AI on a hard physics question.

49:11 Secrets

As public information loses value, secrets that only humans know gain it.

  • Secrets become more valuable and more likely to be hoarded. 49:25
    • In Peter Thiel's sense, a secret is something you know that others don't.
    • AI can be fed secrets but does not generally know them.
    • Information in the public domain spreads fast, so there is less reason to publish it.
    • How AI will handle secrets is, in Cowen's view, a big and under-discussed question.

50:10 Why social networks are more important now

When everyone has the same personalized information, trading secrets and meeting people sets you apart.

  • Skill at trading secrets with friends makes you more productive. 50:12
    • Close friends often swap secrets on an unspoken understanding that each will tell one in return.
    • Cowen now travels and meets people far more than before.
  • Personalized information is no edge once everyone has it, so Cowen does the opposite. 51:00
    • Getting things done means mobilizing resources, and AI cannot yet lend you money.
    • You still need a venture capitalist, a philanthropist or an employer.
    • The most productive people may become up to 5,000x more impactful with a free army of intelligent servants, but they still need others to mobilize their projects.

51:48 Mastering AI prompting

Good prompting means being literal, and its importance depends on the task.

  • Prompt as if speaking to an alien or a non-human animal. 51:57
    • The hard part is emotional, not cognitive. It takes a leap away from talking to humans that many people resist.
    • Basic queries get a smart answer whatever you write.
  • Precise instructions matter far more for deep research. 52:37
    • A 10-page report that misses what you wanted is wasted.
    • Perell finds that one question asked ten times beats ten questions asked once, because long prompts make late answers worse.
    • Cowen agrees, and notes that which approach works best varies by model and keeps changing.

53:58 Mentoring young people

Mentoring works through the example you set more than through the advice you give.

  • Mentees pick up your style, and your advice may matter less. 54:08
    • Cowen hopes some part of how you are will be vivid to them and rub off.
    • His advice on mentors and peers needs no knowledge of the person, and it was good advice before AI.

54:49 Would you invest 4 years in a PhD

Career paths are becoming riskier and less formulaic, and AI shapes your work even when you don't use it.

  • A PhD is riskier now, but not a bad bet for everyone. 55:04
    • Cowen expects fewer PhDs and more people who can manage AIs.
    • Some people will command an army of AI agents and become far more impactful.
    • Set paths like Yale to McKinsey are disappearing, so more of the burden falls on you.
  • Writers and speakers now address AI readers too. 56:26
    • A talk may have 50 AI note takers in the audience, so give them exactly what you want them to say.
    • Even without using AI, a phantom AI on your shoulder shapes what you write.
    • Cowen calls it enriching, but also intimidating and possibly too homogenizing.
  • Generic prompts give bland answers, and direction fixes that. 57:16
    • Plain questions return something like a denser, smarter Wikipedia.
    • Ben Thompson got a weak Apple earnings report from a generic prompt and a strong one once he added his own take.
    • Cowen uses DeepSeek daily as "China boss" for wacky opinions, since it is much weirder than other models.
    • He wants AI to give him the "I didn't think about that before" jolt that people give.

59:59 Perplexity replaces Google

Perplexity is the practical tool for current facts and citations.

  • Cowen uses Perplexity daily as a replacement for most of his Google searches. 1:00:00
    • It is up to date and finds the right citation for a Bloomberg column.
    • Clicking the link checks it, which keeps hallucinations from being a problem.
    • He uses it like Google, with no strategy, unlike his careful prompting of ChatGPT.

1:01:09 The different AI tools, explained

Each AI model wins at a different job
o1 ProClaudeGemini
Best atQueries; 10-page reports via deep researchWritingThick files and YouTube transcripts
CharacterMost capable reasonerThoughtful, dreamy, versatileMultimodal, huge context
Cowen's useUses it the mostUses it a lotInterview prep from 15 videos
Cowen's advice is to keep several in rotation and spend 15 minutes trying whatever came out last month.

Each model has a strength, so try several and keep up with what's new.

  • Each major model has its own best use. 1:01:13
    • o1 Pro is best for queries. Deep research is best for 10-page reports. Claude is the best writer.
    • Gemini handles thick files and YouTube transcripts best. Grok is quick for fact-checking tweets.
    • Cowen calls deep research the most impressive thing humans have built, and expects it to replace more human labor than o1 Pro.
    • He can put 15 videos into Gemini to prep for an interview.
    • Private, on-device versions are coming, which will matter for legal work.
  • Staying current takes active habits. 1:04:47
    • Ask Perplexity what came out last month and spend 15 minutes trying it.
    • Cowen pays $400 a year for The Information, follows X, and joins good chat groups, which are hard to get into.
    • He sees Meta's Llama models as globally important.

1:05:43 The potential of large context windows

Context windows are heading from 2M to 20M tokens
The bottleneck then shifts to humans scanning and converting old records into a form AI can read.

Huge context windows turn old document piles into usable knowledge, and feeding in that data becomes a new human project.

  • Context windows of 10 to 20 million tokens will make big documents routine to work with. 1:06:00
    • Regulatory codes become routine for lawyers, and historians can search huge archives.
    • Gemini has 2 million tokens now, and Cowen would bet on 10 to 20 million by year's end.
    • Converting data into usable form will create jobs, as will lawyers sorting out unspecified rights.
    • Philanthropy could fund data entry, like Nat Friedman's work on burnt scrolls.

1:08:11 AI usage inside companies

The AI labs themselves are far ahead of what the public sees.

  • The AI companies use AI to improve AI, and the gap with everyone else is immense. 1:08:28
    • They guard their secrets for justifiable commercial reasons.
    • Cowen says it can't even be compared. The outsiders can't see it, but steady improvement suggests it works.

In the growth library

Tyler Cowen, economist, author and blogger. Tyler Cowen explains how he uses AI as a reading companion and critic while refusing to let it write for him, so his work stays weird and recognisably his. The technique worth hearing is his habit of feeding AI long context and specific questions, then writing only what a human with real experience could write.

Lessons that draw on this:

More from How I Write · The whole library, and ask it anything

Transcript1781 lines
Intro 0:00
0:00

look there are people who know a lot about AI but they don't know anything about writing and there's people who know a lot about writing but they don't know anything about Ai and Tyler Cowan is one of the very few people who's an expert in both we talked about how is your career going to change if you're a writer how is AI going to change writing in general and how can you use AI to learn faster and think better I want to set the ground rules for this so there's a lot of conversations about utopian dystopian visions of AI and the ethics of AI I don't want to have this conversation the thing that I really want to talk to you about is the Practical implications of AI how do you use it how can you learn about using llms better and then also what that means for writing in particular and we need to be practical if you want to make progress on thinking about the very big questions simply using it experimenting it seeing what

0:55

works and fails will get you much further than sitting on your Duff and rereading heiger so how are you using it

How Tyler Cowen uses AI everyday 1:00
1:02

every day in order to advance your skills like how are you actually learning about it most of all I use AI when I read things so I use it as the secondary literature so I'm preparing a podcast for a British historian she does history of Richard II and Henry V now in the old days I would have ordered and paid for 20 to 30 books on those kings now maybe I've ordered and paid for two or three books on those kings but I'll keep on interrogating the best llms about the topics of her books Helen Caster is the historian and just keep on going and I acquire the context much more quickly uh it's pretty accurate keep in mind I'm the questioner so if there's a modest degree of hallucination it doesn't matter for me I'm not giving the answers and uh I can now do many more podcasts than I used to because I'm using AI for my prep okay so do you think that this is about saving time or improving the quality of your prep it's

2:00

improving the quality of my reading which I use for my pleasure reading so I reread Shakespeare's Richard II which is a wonderful play again in the old days I would have piled up a lot of secondary literature I'm also rereading weathering Heights I just keep on asking the AI what do you think of chapter 2 like what happened there what are some puzzles what should I Ponder more how does that connect to something else later in the book and it just gets me thinking it's the new secondary literature for me so it's more fun I learn more just by being more actively involved asking a question I think that improves my epistemics of the reading uh and then I think I'm smarter about the thing in the final analysis but mostly I'm doing it because for me it's fun and a pleasure to learn what are the puzzles that's an interesting question tell me about that well Shakespeare's full of puzzles right Camille poglia once said if you look at

2:53

Hamlet too closely most of it just doesn't make sense I'm not sure that's true but she's a very smart woman and she studied Shakespeare quite a bit and if she says that you know Shakespeare is very hard to read any major well-known good Shakespeare play you can read five to 10 times and still just you're beginning to get a handle on it so you can reread it in infinite number of times so it's very well suited for having a guide or companion who can talk you through it and uh the major large language models they've all read Shakespeare itis in the public domain and they seem to know the secondary literature quite well you could just ask it a question what are three or four major readings of what Hamlet meant in the speech and it gives you an excellent answer so with that it's getting a bunch of different perspectives do you put in people's names to say I want a perspective from this scholar or this

3:45

scholar or is that not necessary anymore uh you can do that so like what would Harold Bloom say what would Godard say uh it's not mainly what I do I'm happy to randomize it a fair amount uh but it works for that and at the moment this changes a lot over time but 01 Pro is the single best model for doing this from open AI that's the one you have to pay for uh Claude is very good uh deep seek is very useful and fun not reliable in terms of hallucinations but it should definitely be in your repertoire so to speak now if 01 Pro on average it takes me two to four minutes to get an answer so do you have multiple 01 Pros open at the same time I only have one open uh most of the questions I ask it it takes me a minute or a little more than a minute in it maybe I'm more of adult my questions are too simple I recognize that uh well I'm waiting there's plenty else I can do check my email maybe I've

4:38

heard from you check Twitter go back to reading Shakespeare so the time cost to me it's actually fun I enjoy the suspense uh it's not a problem I multitask anyway whether that's good or bad Frank you know I do it so there's no cost to me to wait to confirm I emailed you at 1018 last night you emailed me back at 1019 and what did I say confirmed I think I was probably waiting for an 01 Pro answer at that time okay so what I've noticed is a lot of people think that hallucinations are a major issue and you're like they're actually not that big of a deal especially in the context of interview prep and I think that what other people think is really important is like finding the true answer and I think what you are trying to do much more often is kind of trying to find a model of how reality works or something like that is you want to broaden your horizons see more perspectives first and most important

5:38

point is anything you learn from any Source if you're going to use it you've got to double check it it could be a human it could be Einstein it could be the encyclopedia branica so the fact that you should double check what you learn from an AI it's not an extra burden and like every book I write I then have my research assistant fact check every single thing I say I say act like you're to destroy me and they do find things that need to be changed you said on page 172 was on page 173 that

Hallucinations are rapidly declining now 6:06
6:07

happens so that's one issue uh when you do podcasts and you're the interviewer again you're not giving the answers you just need context so huc hallucinations won't trip you up but the biggest thing is simply the very best models with reasoning hallucinate much much less than what most people are used to hallucinations have gone down I would say by more than 10x in the last year and we're talking now in February they're due to go down a lot more over the the year to come so it's just not that big a problem for me I uh was scrolling through your reviews on conversations with Tyler to prep for this yeah and the the best review was Tyler's the master of out of left field questions how do you use AI to find out of left field things because a lot of them end up kind of homogenizing thought but also the potential to really get out into wild and wacky places I never ask the AI what question should I ask person X it's

7:08

quite dull and Bland if you do that it's too Normy that's the worst question you can ask an AI from my point of view you just want to ask it about the details of historical examples so something like Well w Cliffe what was special about his translation of the Bible and how did his patrons feel about what he had done which is implicit in a lot of books I haven't yet seen a book that spelled that out explicitly and maybe it's an open question how much we even know about that the AIS will give you some context just keep on asking specific questions practical questions to get back to that point and you will yourself come up without of left field questions H specific question so tell me about that something you're curious about uh The Peasants Revolt of 1381 I'm starting to learn about that I only know a small amount about it I I don't yet have a good question about the peasants Revolt but I feel within the next two weeks I

8:04

will and that will be an out of left field question okay so writing with AI are you using it to frame ideas or where are you using it in the writing process I don't directly use AI for writing typically now I sometimes I do in the following sense if I'm writing on a legal issue and I'm not a lawyer huh I will ask 01 Pro for the relevant legal background to something I'm writing on HM so I just wrote a column about declassifying classified documents I don't know that law very well I asked the AI for a lot of background on the topic uh I didn't use what it gave me but now I feel like I'm not an idiot on the topic and what I wanted to say whether or not it's correct you can debate but it's not what you would call flat out wrong uh but I don't let it right for me I want the writing to be my own it's like my little baby so to speak I don't care whenever it's better than I am I'm still not not going to let it write for

9:00

me also a lot of the sources I write for wouldn't let me uh I agree with that decision on their part but even if they would let me I wouldn't do it there's ways you can use AI that will smooth out your writing on average make it easier to understand I don't want to do that I want to be like Tyler cow and this weirdo well the whole fun of your writing is that it's a little bit cryptic and there's a lot of different layers going on and I read it and then I try to say what is Tyler explicitly saying what is he trying to hint at me

Writing authentically with AI 9:28
9:29

and then also you have these weird ways of writing sentences that are almost like Parables that I kind of have to puzzle through and I don't want the AI messing with that and it's not going to because I won't let it and if the world stops paying attention to me and only reads the AI I'm in peace with that it's we're not at that point now but if we get to that point uh I won't feel bad I'll be fine you mentioned the legal stuff do you use AI to check your work later on or no not that much actually again I think it can make your work better but I want it to stay weird I will use it to fact check things in areas I don't know wouldn't say I don't use it at all uh there was one use where uh Agnes card a while ago suggested this she said run your writing through the AI and ask it what what is in here that some people are likely to find obnoxious and explain to me in great detail what that is and I did that and it was right

10:30

on target you you may or may not need that but there was one part of something I'm writing it was very obnoxious I even pondered keeping it that way but I decided to change it and the AI pointed it out to me and explained why it was obnoxious and why I was being supercilious and condescending I just thought well if the AI says that there is some like greater wisdom at work there yeah I find it to be very good at telling me when something feels like Alice or cold it's like you didn't really think about that or it's like harsh or something like that I know a lot of managers who uh let's just say they have high tempers and one of the ways that they're using AI is they'll give sharp critiques for people they'll put in the AI they'll say hey make it warm clean it up they'll copy and paste it and they said that it's reduceed Conflict for them yeah but again I don't want to do that too much and most of my

11:23

writing it's not managerial uh if I wrote memos I think I would do that a lot I think it's extreme useful for many people uh but for me I'm mostly writing for just external

AI for critiquing your work 11:34
11:34

audiences and it it still has to sound like me and sound like my thinking how about General critique are you using it for that to critique your work uh sometimes yeah but you know I think in terms of my ability to index the arguments out there I have some AI like abilities more than most humans do and I feel I can do that pretty well myself all I think of my head is having a kind of system of index cards and there's a lot of index cards in there and I can flip through them not at the speed of light but sort of faster than a normal person could think so I'm able to flip through all the permutations in less than a second and just see like which combinations of arguments might apply to an argument I or someone else is making when you're looking at how other people use Ai and you're like ah you're using it wrong what is the thing that they're doing wrong they're asking it questions that are too General they're

12:35

not willing to put in enough of their own time generating context now maybe they don't have the time if that's what's efficient for them I mean fine uh but I think they end up not sufficiently impressed by the AI because they're using it as a substitute for putting in their own time which again for them might be fine but it's not what I want to do I want to put in more and more of my time to learn and have it complement that learning and if you do that and keep on whacking it with queries and facts and questions and interpretations you'll come away much more impressed than if you just ask it oh what what does the rate of price inflation mean or I'm interviewing Tyler tomorrow what questions should I ask him then it's pretty you know mid is that the term people use now like mid is fine mid is called mid for a reason but at the end of the day you will be asleep on the revolution occurring before our eyes which is that

13:28

it it's getting smarter than we are you'll just think it's a cheap way to achieve a lot of mid tasks which it is also well I think part of the problem is that it's a text window that makes it feel like a text message so people use text message lengths when in particular the first context setting setting question should be super long so one of the things that I'll do is I'll use voice dictation and I'll actually dictate it for a minute and a half three minutes get something very substantial and my follow-up questions tend to be shorter but my first one tends to be extremely long and that's why I use voice dictation so I can just get it all out and I find that the that Chachi p is quite good at sorting what's really important something a lot of people are doing I haven't myself tried it yet I suspect it works very well they say they're using 03 mini to write the prompt for them and then they ask you know the full

14:23

model and they get the prompt quickly so just to think of it as a stacked device not a single box but a set of interacting agents that in a sense are trying to evolve toward a market with multiple agents that talk to each other correct each other grade each other when you view the AI as evolving toward a decentralized system of AIS which is not there yet but in the meantime try to use it as if it were one the way like for humans there's a republic of science way smarter than Newton or Einstein or anyone scientist uh we're evolving toward that we don't have it yet but you're using AIS to bounce things off each other so to speak and have a dialogue where you're part of it I like to say there's three kind of layers of knowing stuff about Ai and most people maybe get most people don't get to any of them actually so layer one is are you working with the very best systems uh some of them cost money so

15:23

that's a yes or a no but that's important second question is do you have an innate understanding of how it is through reinforcement learning and some other techniques they can improve themselves basically ongoing all the time a lot of people don't get that they're impressed by what they see in the moment but they don't understand the rate of improvement and why it's going to be so steady and then the third question is and this is fully speculative but I believe in it very strongly do you have an understanding of how much better AIS will be as they evolve their own markets their own institutions of science inquiry their own ways of grading each other self-correction dealing with each other and become as I said before this Republic of science the way humans did it how much did it Advance human science or literary criticism to build those institutions immensely that's where most of the value at is so AIS I believe will

16:19

do that I think there are private projects now starting to do that it's not a thing out there you can access and when you understand all all those three levels it's like oh my goodness this is just a huge thing yeah and most people aren't even at level one and if we take things like reinforcement learning synthetic data stuff like that how important is the technical understanding of those things in order to answer that question well I don't think you need the technical understanding if you work with them and are able to read what's equivalent to a popular science account of how AI works the people with the technical understanding of course they understand it much better but there's plenty of other processes like how did cars get safer from 1970 until today I have no deep technical understanding of that but I could tell you a bunch of things I don't get flat tires anymore I have a side airbag and I couldn't

17:19

explain to you how the side airbag works but I'm not an idiot and it's a bit like that yeah a car engineer understands it better but you can have a handle on what's going on so then let's go to the

Future of decentralized AI networks 17:29
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third question which is do you have a vision of the future of AI becoming a decentralized network interacting with each other and humans probably with markets I don't know if we would call it peer review but it decentralized again Republic of science where it moves forward by mobilizing decentralized knowledge and working together uh the way our civilization does and that's fully speculative but it would just see seem so strange to me if there were nothing there as another source of progress personally mine's very Jagged like I have a clear sense of how it would show up in management a clear sense of how it might show up in writing which I think we should explore together right uh but it is very Jagged and it sort of turns my brain into a science fiction novel absolutely it's and it's scary because we all Wonder well how do I fit into this new world I don't think the answer has to be negative but there's no answer you can

18:25

give with certainty and we're not used to that so the world I've lived in has not changed that much since I was born but that's about to change you could say it's changed already but it's not fully instantiated in most of the things we do so for writers you're an upand cominging writer you're getting started I mean how do you respond to this it I feel a sense of dejection and I'm at The Cutting Edge of these things I I get the benefit of feeling excited about this and I also feel completely dejected in terms of having a skill that I've developed in terms of writing that now I feel like AI can do a lot better than me and then also in terms of teaching developing Frameworks and ideas that I feel like has become obsolete I can only imagine if you're not using these tools how deflating it must be some humans will become masters of the tools how much writing they still will be doing at what pace I'm not sure but it's a a major

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psychological adjustment and a lot of people who thought they would be writers I will predict they won't be just like the number of jobs for certain types of computer programmers is plummeting yeah and that will come to other areas by no means all areas but a lot of kinds of writing are one of them something like generic corporate writing is the first to go from what I can see uh it could be writing a biography of a person the AI cannot really do it may help you a lot but it can't go out and interview you know the the high school teacher and so on writing Memoirs Of course the AI cannot do writing that is more subjective more personal I think the AI already can do it very well especially deep seek program we can get to that soon but uh I'm not sure readers want the better product from the AI they may want it from a human being I feel that I do so if I read a brilliant Memoir written by an AI but it

20:23

corresponded to no actual life I would read a few of those but at some point I'd get Bor and I don't think I would keep on reading them even if they were better than human Memoirs on

Why DeepSeek 20:34
20:33

average you've mentioned deep seek twice how is the the shape or personality of deep seek different from the others deep seek is from China as many of you know it is less manipulated to sound a certain way it is less Bland I would say it's better at poetry better at emotion more romantic more uneven it does hallucinate more so so be very careful if you're using deep seek but if you want say a glorious description of what it is like to eat a ma fongo which is a Puerto Rican dish which I enjoy I go to deep seek for that like I want the you know bring on the hallucination it's just more creative and uh it's more censored on a bunch of things that you could predict knowing it comes from China but overall it's it's Freer it's a free spirit llm but don't use it for your research not mainly do you think that deep research will get to a point where you can trust it at least to the level of Wikipedia in terms of fact quality I'm

21:40

teaching a PhD level class now and I'm teaching the Ricardo's theory of rent and I looked at Wikipedia on Ricardo's theory of rent and I googled to a number of other websites and then I asked deep research write a 10-page article for me on Ricardo's theory of rent and I fleshed out the prompt I told it it's my PhD students some other things I wanted in my view what it did is by far the best thing out there it's teller made to what I wanted not saying it's best for everyone but it's already beating not just Wikipedia but any other source I could find using Google and it's due to improve right as they say this the worst will ever be the second level of of the lesson yeah exactly so

How AI changes writing 22:21
22:22

how does all this influence what you're choosing to to write like should you write books articles how is all the shaping that it's affected my writing uh very significantly already so there's two quite different effects at work one is simply that AI is progressing quite rapidly and that changes the world quite rapidly so if you're writing a book that takes say two years to write and a year and a half to come out maybe there's some other delays we're talking four years there's a lot of topics you just can't write on like you can't write a book on AI it's crazy you could write a very good book The history of AI which is Frozen in historical time now maybe the AI will write that book better than you could but at least you could consider doing it so what I call predictive books uh books about the near future that don't make sense anymore you've got to cover those by writing on this ultra high time frequency every day

23:18

every week something like substack blogging Twitter uh that's a big change so some of the recent stuff I've written is about the more distant past that is frozen in history but the other question is what can the AI soon enough write better than you can and it may not be that the AI writes a book don't fixate on book maybe the AI is no better than to write books they're just like a box and you can ask the Box any question you might read in the book that's what I suspect is the case not that there'll be all these books written by AIS it's inefficient like why this single package for everyone just give people the box so it's a question box mhm and uh what you're writing had better be more interesting than the

Why there will be less books in an AI era 24:04
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question box so the book I've started writing recently we were discussing it before filming started it will be called mentors it's about mentoring and also being a mentee and first I think the extant literature is weak enough the AI maybe can't do a great job but even if the AI could do as good a job or better than I can I don't think people want to read that book from an AI h I think they want to read it from a human who has been a mentor and a Mente just like I don't want to read all these phony Memoirs from AI even if some of them are good and that's a human book that only a human can truly write sincerely incredibly so I'm going to write fewer books in the future because of this I may not write any more books after this book on mentors a lot of books I would have written they're now obsolete I I feel I'm wise enough to recognize that and I'm not going to write less but I'm going to do more of this super

25:00

highfrequency writing much of it about AI with the mentoring the other thing is that you're going to have a very opinionated perspective on mentoring right that is far different than what the average person would think so if we meet you know Jane on the street it's probably very different from how you're going to think about this if the book that you wrote on Talent is an indicator and I have personal anecdotes one of them concerns you and those anecdotes are about real people which I think readers want we'll see you know maybe the readers are are fine with the AI book on mening but my bet is no that the the truly human books will stand out all the more and a lot of the rest will be this will be AI slop human slop uh just a lot of it will look like human slop all of a sudden So when you say the truly human books what do you mean Memoir biography where you need to do things like fieldwork and

25:52

interviewing uh books based on person personal experience such as a book on mentoring it could be relatively few categories uh I'm sure there's categories I haven't thought of yet your ideas are welcome I'd love to keep on writing as much as I can uh but I'm not going to get sentimental about it you know I'm very willing to be coldblooded and just say nope Tyler when it comes to that you're obsolete when it comes to answering questions about economics and economic models uh right now it's better than I am not on every question not in every area but most ly it's better and I recognize that and I will reallocate my energies

Video content will rise 26:34
26:33

accordingly so then does that mean that the YouTube channel is in a better spot in terms of persisting because we get a sense of your personality we see the visuals or do you feel like even that it's not going to be as useful I'm doing more podcasting which is also YouTube just as we're recording this the podcasts I do uh we're taking greater care to make sure there's always a video of it uh so yes I think video will be more important for a while now what's the rate of AI progress in video I have a less clear sense of that I know less about it but I think a lot of viia will be like the Memoir that people will want humans and not fake humans even if the fake Tyler looks just like me and that seems to me two years away the fake Tyler Voice already is indistinguishable for me I just did a a video where I said something wrong in the video and we were like ah we got to go back and we record it and so what we did was we took my

27:32

voice and we went in changed the text in the voice it came out and you can't tell the difference it's an artificial voice for that little section can't tell I played the Tyler cow voice for my sister not just one word but a whole paragraph she couldn't tell she was stunned when I told her that was AI yeah well then the thing that's going to happen next is the our voices the Cadence will now work in Spanish or in Hindi or in Italian or something like that and now YouTube is rolling out dubbing in every single language and so someone will be able to press play on this video in Italian we'll be speaking Italian and they'll be able to hear it in our Styles and my accent in Italian which is the thing that exists

Start writing with AI [LEX AD] 28:18
28:17

scoozie we're talking about writing with AI here and maybe you're thinking okay okay I've been against this AI thing but now fine I give in where do you start well I recommend a tool called Lex what I love about Lex is you go in there and it's really fun like it's super welld designed the colors the formatting it's all very intuitive and I find that I just have more fun when I'm writing with Lex cuz I get instant feedback if I get stuck I can ask it to interview me I can say hey this is all the writing I've done this is sort of a context of how I like to write and a little bit about what I'm really going for and because of that I just feel like I have a creative collaborator and then the other thing is structuring my ideas Lex is like an 80th percentile editor it's pretty good not like the best editor in the entire world but here's the thing it's super fast it'll work for you 24/7 and it's pretty

29:09

darn affordable so if you want to start writing with AI we'll go to lex. page Perell here's another thing I'm doing

AI writing a personal biography 29:18
29:18

with writing so some people have told me like I should write an autobiography I've never wanted to do that it seems too narcissistic I wouldn't feel the kind of motivation I don't think that would sell that many copies a bunch of reasons not to do it but it occurred to me I can write an autobiography quite simply there's just a lot of me out there podcast blog essays books the AIS know most of it I will continue to open source as much as I can so the AI can write my biography but there's parts missing so there's no podcast where I talk about the three four years when I lived in Fall River Massachusetts h i was I what like four to seven I don't think it's that interesting but I'll write maybe two blog posts about it just kind of his filler so when someone goes to their AI three years from now oh I'd like to read a Tyler Cowen biography that's in there so I'm thinking through I think it's maybe only 20 blog posts

30:19

it's not much that is needed it's sort of fun for me to be nostalgic I'm going to put those online and then it will be possible for the advanced AIS of the near future to write a very good Tyler Cowan biography and I don't know how many people want it but it's so low cost why why shouldn't I create the Tyler Cowen possible biography so that's a thing you can do that obviously you couldn't have done before I should have asked this earlier

How you can tactically learning about AI 30:46
30:47

so I'm going to ask it now but how are you tactically learning about this and there's a specific constraint that you have which is you're very high on curiosity and uh informational fluenc but very low on sort of technical chops right and you're also in your 60s so there's such a 63 to be clear 63 that's what I thought it was the lower end at least okay so you're 63 and so what are you doing in terms of staying at The Cutting Edge because here's what I find I kind of will get boxed in in terms of not realizing the the potential of what's out there and I need to go have conversations and say hey show me exactly what you're doing and actually the the biggest constraint for me in terms of improving with AI is oh I didn't realize that you could do that I think so far at least it's been a big Advantage for me that I'm not a technical person in the AI field so an example I wrote a book it came out now

31:42

11 years ago it's called average is over and it says the future will be this age of incredible advances in Ai and it will change our lives in these different ways and that book has turned out I think to be quite true and I was then not an expert technical AI whatsoever as I'm not now but I knew a lot about AI from chess and I had this intuitive sense from my own life as a chess player when I was young that chess is really mainly not calculation it's intuition and it's very difficult intuitions and Ai and chess some while ago became very very strong and I just had this core intuitive belief that if AI can get that good at chess it can get very good at many other things and all the reasons people would give for why it can't happen it's not that I didn't know them I had read them but they didn't register vividly in my mind and I stuck with my core intuition and if you're not focused on the technical side you will see other

32:43

things more clearly now maybe over time some of my future intuitions will be quite wrong I readily admit that but uh there were ways in which it can be an advantage you just focus on what is this actually good for and not am I impressed by all the neat bells and whistles on this Advance with AI but you've got to be super practical in how you address it don't spend too much time on the abstract work with it use it be self-critical about what you're doing with it and be willing to learn from other people if we stripped out AI like a Jango block now in what ways would you be sad or devastated and in what ways you'd be like oh that's fine I'm just going to go back too whatever when you say stripped it out you mean shut it down just all of a sudden it doesn't exist anymore what would you feel like I I I miss that I love that about the AIS well I would just learn much less uh I think for people somewhat

33:39

younger than I am rather than living to 84 they will live to 97 or whatever is the time when on average you die of old age that is significant for them I think it's less likely I see those gains maybe not impossible but I would bet against it so that would be a significant gain for Humanity uh other areas of the Sciences they'll Advance much more rapidly something like green energy quality of batteries our ability to terraform the Earth all of that would be quite stunted compared to the world where AI progresses but I think like the printing press AI even in its most positive forms has the potential to bring a lot of disruption and psychological disorientation and just upsetting the balance of interest groups and social status and those disruptions can go very badly uh and that worries me uh it's not a thing you can just manage the way like you manage a small company so humanity is faced with that we're faced with some

34:42

version of that anyway but it seems to me that's quite accelerated and I think people I would I don't want to quite say they should be nervous but objectively speaking being nervous is the correct point of view when you say that you write for the AI I mean I get what you mean you're saying I want to write it because the AIS will be a reader of what I'm saying and I can by writing a lot basically convince them that I'm a legitimate source and I'm worth referencing and all that but tactically does the writing style or the substance of what you produce does it change at all it changes a bit so I like to think the AI will have a better model of me than most other humans so I've done many hundreds of podcasts blogged every day for now like 22 years the blogging I feel is some genuine version of me it's not edited by someone else there's a lot I have like 16 17 books a lot of other output out there are there's people with more but

35:44

I'm trying to think well what does the AI still need to know about me so it's a kind of intellectual immortality I I'm close to already having achieved I'm not sure how much I value that uh I'm not hung up on it but it's like yeah it's like let's just do this for fun and it's so cheap to do the final mile on that like write those two blog posts about Fall River and what the name of our dog was and what I thought of our neighbors and why there were so many syrians who lived in the neighborhood that kind of thing like what's the harm in that what's the name of your dog now uh Spinosa Spinosa I was thinking it was Ricardo I knew that it was an intellectual the first dog was named Zero my father named it zero and we had dog in Fall River Spinosa but when you write for the AIS like for one thing they're your most sympathetic reader it's one reason to write for them they're your best informed reader uh you don't need to

36:40

give them much background context it's not like writing a prompt so if I write something and don't explain all the filled in pieces the AI knows so I would say at the margin I'm less inclined to fill in those blanks for people because the AI doesn't need them it's already read everything else so I'm not saying everyone should make that move like you will or maybe lose some human audience or they'll understand you less well but at least it's a trade-off worth considering one

How AI can help you visualize information 37:12
37:12

of the things that you haven't spoken about that has been fundamental for me in terms of using the AIS is visualizing information so I was in Buenos CIS and I wanted to get a sense of the immigration patterns I had it make a table for me of the different cities in Italy that people had come from and how it changed over time and something about my ability to read that it just wasn't it wasn't working it wasn't Computing and then I visualized it and I ask it to make tables and to compare and contrast all the time like the amount of information that I'm inputting like that is at least up 10x that's great I'm much more text based than you are but I know that works and many people do it and wonderful and the other thing that I think is worth getting good at is if you can get good enough data that you can trust using Chachi is better for tables but CLA is really good for graphs and there's certain graphs that really help you make

38:05

an argument well and just being able to take an argument from text into a visual is a way that you can be a lot more effective as a writer in terms of making a point quickly I think in the next two years we'll see incredible further improvements in graphing and graphing will be perfect sometimes I have trouble with its graphing right now but I know it's just a matter of time and not much time so we just landed in

Creating the perfect AI prompt 38:31
38:31

DC and I struggle to kind of understand the the the cultural Vibe of this place like what do people do all day what are the kinds of people here uh I find DC to be like this strange city that I I don't quite have a good way to describe and sort of my project for the rest of my time here is to figure out to find a good answer to that question and so how much do you think about now in as you're traveling talking to people going out first- person experiences uh versus books like normal or using AI to solve a question like this to solve that question I think AI can help you quite a bit but you'll need a very sophisticated wellth thought out prompt I use it in a much kind of stupider way so I took a trip with my sister to Northern Colombia she's a bird watcher took photos of a bird a plant and you just ask you know in the app well what that and it tells you and you can ask it about details so

39:32

or take a photo of a menu uh I do read Spanish but a while back I was in a paraguayan restaurant I've never been to Paraguay some of the menu was in gorani not Spanish I photographed the menu I asked GPT what should I order and why it gave me answers I ordered this dishes I'll never know the alternative if it seemed to work and I knew what I was doing all of a sudden so I just use it like for very Al concrete objectives not even so much theorizing about the place like hey what's this help you walk by a building when was it built snap a photo ask it it knows but planning an itinerary so I will likely be in Northern Ghana in August and I asked it there's two places in Northern Ghana I want to go well if I want an itinerary how do I get from one to the other and how long will it take now that I'll have to double check and I'll trip triple check it by trying to do it uh it gave me what seems to be an

40:31

awesome answer in I don't know 10 seconds where is the AI getting that information because it seems like the travel information online is so uniquely bad that I've been very surprised to hear you say that actually the AI is giving you really good travel information it's one of its best uses is for travel when my wife and I went to carola India in December she used it every day about different things to do or see it's very good some places to eat dishes to order uh and I I'm not putting in super smart prompts I might add a sentence or two saying like Oh I'm a serious consumer of food I want something that you know a top rated food critic might recommend but like very simple ads to the prompt and it just blew me away how good it was so I like that piece and I have a sentence from that piece that I think really shows the kind of writing that'll persist and here it is a little story and it really

41:31

connects us with you this is by Me by you okay by you Tyler my wife and I just ate a wonderful meal on a river house booat in carala and it was perhaps the best lobster I've ever had and for her the best lentils my chef was simply a member of the boat crew who cooked what I had bought from a local fisherman and the reason that I saved that sentence is it's a quick story it really helps us connect with you and it was something in that piece about how India has the best food in the world that was not something that the AIS could have given and I read that and I was like ha this is a sort of writing that'll persist writers will need to personalize more I would say they already do 100% tell me about AI in

AI's impact in the classroom 42:10
42:12

the classroom how are you using it and what are your students not understanding from my PhD class that I mentioned before there is no assigned textbook that saves them some money but they have to subscribe to one of the better AI services that costs them some money but it's much less than what the text would cost and then the main grade is based on a paper they have to write a paper uh they're required to use the AI in some fashion they're required to report what they did but I just tell them your goal is to make the paper as good as possible how much of it is yours it's all yours from my point of view just like when you write with pen and paper or word processing that's also all yours but I want you to tell me what you did in part because I want to learn from what they did right so uh I've done this in the past I had a law class the year before where they had three papers uh this was less radical one of

43:14

the three had to be with AI the other two had to be them um and it's worked very well so far and the students feel they learn a lot other classes tell them like that's cheating but we all know there's some forthcoming equilibrium where you need to be able to do that especially as a lawyer I would say but in most walks of life so why not teach it now what's the constraint them not wanting to use AI or their lack of knowledge about how to use it well uh most of them seem to want to use it now since I'm telling them to use it maybe some of them are just going along with what I'm saying but I think they genuinely are curious uh a minority of them already know how to use it well most of them don't most of them don't know the importance of using the better models and they want to learn uh it's been a pretty positive experience but they don't no one has taught them and every year I at my Law class my econ class has anyone else been

44:11

teaching you how to do this I'll ask them silence and that to me is a scandal this is Academia we should be at the Forefront in fact the students those the ones who are cheating they know way more than the professors now I don't condone the cheating when it's not allowed but I think that whole Norm needs to shift and in fact collapse homework needs to change more oral exams you know Proctor in person exams and so on uh we need to change that now it's very striking from all the questions that I've asked you then just the on line takeaway from this that is far superior to everything else I've learned is just use the best models people right like you're completely hopeless if you're not using 01 Pro and these these these Cutting Edge models and I've come to realize over the course of this conversation so far just how big the variance is and if you're not at The Cutting Edge you're completely missing

45:05

how fast things are improving but not just the speed but the actual vectors and ways that the Improvement is actually happening strong yes to all of that noting what is currently the best model as we are speaking is $200 a month right but unless you're very poor and have no prospects I think that's a good investment for many many more people than realize it and over time uh the free models will be as good as that model and then there'll be a new better model that costs more when will the free model be good enough If Ever I don't know but I think there's High returns to staying on the frontier for at least for a while it may ASM toot out where oh maybe in four and a half years the free model's good enough and the fact that the paid model can do Einstein like I don't need that we may get to that point but we're not there now and how is what it means to be a research-based academic changing well

46:03

the sad news it's not changing at all uh it needs to change now right now the AIS are not better than good academics at producing papers so it feels like there's not a threat but once you understand the rate of improvement in my opinion they will be better not at writing every aspect of the paper or choosing the right question question but at doing much of the work I think they'll be better than humans in less than two years and my academic sector is not ready for that there'll be differential rates of adoption some people will be remarkably prolific and high quality and we'll sort of know what's going on I'm not sure how transparent they'll all be or have to be but it will change things a great deal and you'll be able to produce if you know what you're doing but very good work very quickly so the number one way

Studying The Bible with AI 46:56
46:57

I use AI is to study the Bible which is sort of my big intellectual project I think it's great for the Bible it is so good it is so good and first of all that's the will of God right it's the will of God but there's also but there's also structural things going on that there's a lot of old writing that's in the public domain that things can be very easily verified which I think contributes to the AI being uniquely good here the reasoning models in particular that's right and it's based if it's the abrahamic religions so a lot going for it just like it's especially good at economics it it's really good but here's the thing where it's good is if I have a very specific question it's very helpful I love the way it helps me with cross references where I can see how the book of Hebrews relates to the Book of Job I would never find that on my own also for translating into Hebrew words or Greek words that saves me so much time see a

47:53

secondary literature that it's replacing so that's exactly that's exactly right so what I'm not doing anymore is I don't read study Bibles but where it still is lacking is if I speak to somebody who really knows it well themselves their ability to ask the one question that really matters the one take away um is completely completely Next Level and the AI just aren't even close to that I agree Adam Brown hit something similar in his dwesh podcast he does physics he said you'll still do better calling like the three or four world's top experts on a physics question then you will with AI but that's the level he had to get to for you to do better but here's the thing that the at least in my experience what the experts do is they get to the absolute core one or two sentences and it's not something of volume or big explanation like it's not quite in the literature either say more they've maybe learned it through

48:52

seminars or by knowing a lot of people or by having this life Rich context in the area that maybe the AI cannot get very quickly or readily that could be good for your mentorship book as well because that is what a mentor can provide is unique uh

Secrets 49:11
49:11

what do you say it's context Secrets humans know Secrets uh maybe AIS can be fed Secrets but they don't in general know Secrets now a human only knows so many secrets that's partly where decentralization comes in how AIS will handle Secrets I think is a big and interesting question it's somewhat under discussed it seems like in the Peter teal definition of a secret which is something you know about the world that that other people don't know there's a chance that those go up because now there's less of an incentive almost to put things in the public domain because they can spread so much faster so there might be more of an incentive to hoard information that's right it will be worth more to you because the public information you used to hold now is worth very little so the future the AI Rich future is also a world repete with secrets secrets are super important gossip is very emotionally and

50:04

practically potent it's another part of this new structure we're not ready

Why social networks are more important now 50:10
50:09

for okay we got to talk more about this how good are you with Secrets right are you good at trading Secrets if you are you're a lot more productive than you used to be you ever have these conventions with your closer friends like I'll tell you this secret it's not quite a deal but it's understood that they'll tell you that secret in return Maybe over time that's a more valuable skill now increasing returns to social networks that's right so social networks become way more important as well traveling and meeting people becomes way more important I'm doing much more of it getting back to how my life is changing it's a striking Paradox right because on one hand you have access to information that is so much better that is now personalized for you you can get the exact essay that you want so if you just heard that you'd say oh great I'm just going to spend way more time reading all those things but actually

50:58

there's another element to this which is everyone has that therefore I'm going to do exactly the opposite that's right and if you want to get things done you'll need to mobilize resources the AI per se can't lend you money not yet at least and you need humans whether it's a venture capitalist or a philanthropist or whatever someone who hires you your network of humans is not just like 20% more valuable it could be 50x more valuable because the most productive people people could be 50x 5,000x more impactful because they have this free army of highly intelligent servants at their disposal but to mobilize their projects they'll need help from others so networking again the value has gone up a lot more than people realize even when people say oh I see the value of the network has gone up do you have any

Mastering AI prompting 51:48
51:48

simple rules for prompting like if you were teaching somebody hey here's how you should think about prompting what are the things that you would tell them put humans out of your mind imagine yourself either speaking to an alien or maybe a non-human animal this feel a need to be more literal if you're willing to do it I don't think it's that hard but you to actually want to put yourself in that state of mind it does require some sort of emotional leap that for reasons of inertia not everyone seems willing to make but it's not a cognitively difficult project to prompt well that maybe is emotionally slightly challenging and do you feel it's becoming more important or less important oh that oscillates very rapidly I would say with deep research it's become much much more important yeah because you you need to get exactly what you want and not too much blah blah blah and it still might give you high

52:50

quality something or other but if that 10-page report is not what you wanted like why' you do it so so for a lot of basic queries it's much less important you just get a smart answer no matter what but for some of the very best stuff it's exponentially increasing in value to give it the right instructions the thing that frustrates me is it seems to be a lot better to prompt one thing 10 times than 10 things one time and there's no way to actually put that into the llm if I want you to do this question this question this question this question because if you ask a really long it almost gets tired by the end of it like it needs to take a nap and answers 8 9 10 just won't be as good often follow-ups planned as follow-ups you'll do better with those than too long a prompt and I'll tend to do that if I'm struggling a bit what exactly goes in this prompt I'll just start with the stupid version and then rely on my

53:47

follow-ups and I think that's worked pretty well for me again it may vary on which model which system all these things are changing all the time but at least keep that that in mind as an

Mentoring young people 53:58
53:57

option so when you're mentoring young people what are you telling them to do well when you're mentoring young people I'm not sure it's about advice you should be a certain way and hope some part of that is vivid to them and rubs off maybe the advice you tell them is useful to communicate your style but it might be worthless as advice but two pieces of general advice with or without AI in the world that I think are pretty good for almost everyone is get more and better mentors and uh work every day at improving the quality of your peer Network and those two things I'd say they're more valuable in the AI Rich world but they were always good advice they're good advice for virtually everyone they don't require you to know much about the person those are my two Universal pieces of advice that I give pretty much all the time and how much do

Would you invest 4 years in a PhD 54:49
54:51

you feel that career trajectories are changing for example to get really practical here would you invest what four years in a PhD now given what you have I think we really don't know where a lot of these things are headed I think investing in a PhD is much riskier but there's also some chance depending who you are you become that person whose 5,000 decks more impactful because you command an army and maybe you're not capable of that and if you're not maybe you shouldn't get the PHD but to blanket in a blanket way to tell people don't get a PhD that doesn't sound right to me but I think we'll need fewer phds more people who understand how to manage AIS and a very different mix of skills than how it is now so a lot of professions it will be difficult to predict but just being familiar with the best models I don't I don't see how that can be bad advice and it's why I think whatever it costs per month to get the

55:50

best model whenever you're listening I suspect it's a good investment well once again it's sort of like what we were talking about ear on one hand the AIS are getting so much better so learn how to use the AIS on the other hand the AIS are getting so much better so invest in these other things that aren't AI pure networks you got to both so there is more of a burden on you and it's less formulaic so what you used to do oh I'm an undergrad at Yale I want to go to McKenzie there were all these set paths that were pretty predictable as long as you just didn't totally screw up uh it seems to me those will be disappearing you know we were talking writing for the AIS earlier and another thing that stands out is if you assume that there's a AI Note Taker on the other side and you're preparing a talk you could almost think what is the AI Note Taker going to say and then give it exactly that because if you're giving a talk at some

56:42

University or whatever there's probably 50 AI note takers in the audience and people who write about that probably most of them will start with that now so you're not only writing for the AI you're speaking for the AI absolutely MH another interesting thing about AI is even when you don't use it as you mentioned you have this model in your mind of what the AI would say or write back to you so there's like a phantom AI sitting on your shoulder it's enriching it can also be intimidating maybe in some ways it's too homogenizing but it matters and I would just say give it some thought how is the Phantom AI also shaping your life too homogenizing why do you say that if you just ask AI simple questions like improve my writing or what do you think about this again depend deep seek is somewhat different but you get a somewhat homogenized style and answer it's a bit Bland even when it's very good or useful so if I ask it

57:36

well tell me about the The Mating practices of this kind of parrot it'll sound like a somewhat denser and smarter Wikipedia I'm okay with that but it there's something homogenized to it and you have to work to get it not to be that way it's not a complaint but it's something we should notice and make some corrections for well after the Apple earnings came out recently Ben Thompson did two prompts with the o1 and one of them was something like this the first one was fairly generic based on the Apple earnings give me a report and then the second one was based on the Apple earnings give me a report and here is my take on it and this is what I want you to focus on he said the first answer wasn't very good and he was very happy with the second answer once he had given it Direction and his take and kind of set the direction that AI could fill in the rest in a way that was quite good yeah I also find it valuable to use deep

58:35

seek periodically just so I don't forget what AI is capable of uh I call it China boss this kind of a joke like you say Let's go ask China boss and it means like okay we're willing to consider kind of a wacky answer here you know there's not something at stake we're writing a report or column where everything has to be perfectly correct you just want to hear an opinion Let's go ask China boss and that's deeps you should use it like once a day just so you don't think of AI as being Bland in the way they can be I want a lot more crazy in my life so my wish from AI is that they can give me more crazy ideas that's a lot of what hanging out with people gives me is just I didn't think about that before how much do you use deep seek that's been my biggest lesson so far is I didn't realize how much wackier deep seek was than the other models especially if you ask it but even if you don't ask it it'll be much weirder so uh yeah that's

59:38

one of my core recommendations and there'll be other models like it and deep seek is itself open sourced there's a version of Deep seek now in perplexity as of about a week ago when we're recording I haven't played around with that much did they make it less weird I don't know I worry maybe they did um but the the original Deep seek man that's priceless I love it and do you have ways

Perplexity replaces Google 59:59
1:00:00

of using perplexity that are as strategic as how you prompt the llms I use perplexity every day for me it's a super practical thing it replaces most of my earlier uses of Google as most of you know it's completely up to date if I'm writing say a Bloomberg column and I need the right citation I go to perplexity and it just works very very well and you know you check it by clicking on the link it's a problem with hallucinations you get the right citation better than Google would give it to you I don't have ways that I strategically use perplexity though I kind of just use it like Google where I throw things in there whereas I'm very strategic about how I prompt chat GPT I agree with that uh super practical for me perplexity it feels like it's ASM tooted for me in a way in in a very good way like how could it get better not like oh I feel they're stuck maybe they'll get better they're adding some Voice on

1:00:56

features but it's it's incredibly good so walk me through the sort of AI stack and the different reasons that you use different tools I can tell you what I use I'm not

The different AI tools, explained 1:01:09
1:01:09

saying it's all you should use you should use more and experiment with more to learn things but I use o1 Pro the most deep research which is kind of an offshoot it's a feature of o1 pro that actually is using O3 I know the labeling is comp they say they're going to clean that up uh I think it's the single most impressive thing humans have built that is out there but I don't use it that much it's not that practical for me it will do more to replace human labor than 01 Pro o on Pro is best for queries deep research is best for 10-page reports I don't want it doing 10-page reports for me for the most part a bit when I teach uh so that's not that much in my routine but to learn what it can do it's something you should spend a lot of time with Claude is a wonderful mix of thoughtful philosophical dreamy flexible versatile it's the best writer you should use Claude A Lot the current Claude is already amazing the

1:02:13

next Claude is just going to be out of this world so yeah you should be doing Claude uh deep seek absolutely now you're sending things to China my view is China knows a lot about me already I'm not at all nervous about that but like don't you know if you work for the military the CIA talk to some people give it some thought like you know it's China right if I ask uh deep seek for a glorious description of eating a and the Chinese know I want that I'm like yes you know I'd love to spread this to China they don't know what mongos are uh Gemini can do some things other services cannot I don't use it much because I'm not working with very long or thick documents but if you are it is often the best for a lot of legal work and there will be versions of all these things soon where you're not sending your data to another company that's limited the use of these for legal work in particular you'll be able to do it on

1:03:19

your own hard drive in some fashion I'm not sure what the loss of value will be at first but this people are working on this a lot it'll come soon it's one thing that if you follow AI you know is coming some people would say I can't send my data to you know Gemini too Google whatever okay you can but pretty soon you won't have to uh but Gemini is there's some ways in which its multimodal capabilities and its ability to handle big thick files it's number one the fact that Google owns YouTube makes it really nice because the YouTube integration is really good so if I want to prep for an interview I can put in say 15 videos and I can start asking questions about all the videos because it can take the transcript and Gemini is just so much better reading video files and especially YouTube than than the other llms those are just things I don't do much but you should many people should use Gemini a lot that I don't use

1:04:12

it a lot is nothing against Gemini it's an amazing system grock you can use very quickly to fact check tweets uh meta it's right on your WhatsApp uh their ability to Market and open source is very strong I don't like I'm not an Instagram person uh people should know what Med is up to the Llama models I think they'll be very important globally something to play around with they're not part of my regular routine but you should be aware of them and there's plenty of things I don't know about or I've heard about and couldn't really tell you how to use them that would be like the opening menu and you you can just keep on asking perplexity like what are some new things that have come out in the last month that I should just play around with for 15 minutes and it will send you to some articles and another thing I do it's $400 a year but worth it for me I subscribe to information which keeps a breast of new AI developments I don't

1:05:16

think it's worth it for most people but if you can afford $400 a year I think it's quite good and useful and it covers some things in crypto other parts of tech as well that's a good way to stay in touch Twitter obviously X and the being in good chat groups that final one's a big one it's a big one and it's hard to get into the best chat groups uh but just keep on working your way up if you can what do

The potential of large context windows 1:05:43
1:05:44

you think becomes possible with really large context windows so Gemini now has 2 million tokens I'd be willing to bet money by the end of the year we'll have 10 20 million tokens what becomes possible true about the world once the context windows can be that big well that people in a decentralized manner there may be people now who can work with these very large context windows it's just not a public service so keep that in mind but in a decentralized manner to deal with things like regulatory codes which are very important to businesses lawyers that will be completely routine and it's coming very soon uh again it's not a thing I need uh historical archives if you're a historian and there's massive documentation like tax records from Renaissance Florence I don't know how big that file would be You' have to put it in somehow scan it uh but working with things like that over time a new project for Humanity that will create a

1:06:46

lot of jobs by the way is converting data into usable form you'll also need a lot more lawyers to haggle over who owns the idual rights that were never specified in original contracts because no one imagined this would be a thing that would be another new set of jobs but a lot of philanthropy in the future should just be paying for data to be fed into AIS just like what Nat fredman is doing that's right and he's translating you know Scrolls from burnt to readable it's so cool but to put all that into Ai and just everything we know about history what's in the National Archives I'm pretty sure I've been ped it was not fed into the main AI models it's a lot of stuff uh maybe not useful to most people but over time this will be the new human project is to have all our knowledge fed into the ai's musical knowledge so like tab notation for guitar a lot of that's online but a lot of it isn't it's quite

1:07:49

an undertaking to assemble all those scrolled things on paper and turn them into AI usable form but I think a lot of our next Century we should spend doing that with just everything possible where you're not like violating privacy or running into National Security issues and it will just be a much richer world but it will take a lot of human very human effort to get there yeah and last

AI usage inside companies 1:08:11
1:08:12

question how Innovative is the llm usage inside of companies like for people building their private models the very biggest companies how big is the Delta between what we're seeing from the basically free models the most Innovative people won't tell us I strongly suspect the most Innovative people are the AI companies themselves they use AI to improve AI they hold their secrets close to their chest for obvious and justifiable commercial reasons and I think the difference between what they're doing and what others doing is just immense you can't even compare it wow and we don't know what they're doing but it see since it gets better it seems to be working right yeah that's what we do know well thank you Tyler this was fun thank you David thanks for nerding out with me thanks for nerding out with me