The age of deep automation

Thanks to interconnected computers that are able to compute and communicate at incredibly low costs, we have entered a time of what I'll call deep automation. The story of modern economies has always been a story of automation, of course, but what what's going on today goes far beyond anything that's happened before. We don't know what the consequences will be, but the persistent, high levels of unemployment in developed economies may well be a symptom of deep automation. In a provocative article in the new issue of the McKinsey Quarterly, W. Brian Arthur argues that computer automation has in effect created a "second economy" that is, slowly, silently, and largely invisibly, beginning to supplant the primary, physical economy: I want to argue that something deep is going on with information technology, something that goes well beyond the use of computers, social media, and commerce on the Internet. Business processes that once took place among human beings are now being executed electronically. They are taking place in an unseen domain that is strictly digital. On the surface, this shift doesn't seem particularly consequential—it's almost something we take for granted. But I believe it is causing a revolution no less important...