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I've been wondering about the impact of AI dev tools on standardization for a while. A lot of what you talk about echoes the tensions between different pace layers in an evolving system.

It's pretty normal for fast-moving unstable systems to be built atop a slow-changing, more stable layer. Examples abound in economics, biology, and of course software.

AI looks pretty normal through this lens, with the main concern being that AI vacuums up investment from all over the economy, starving other industries.

Normally they would become inefficient and get outcompeted, but we're entering a new market in which investor story time is often a better business model than selling products and services, since investors have most of the money.

Oh, this is _such_ a good way of framing it. I'm planning on exploring the impacts of decoherence on markets and economics in the next post, though in a bit of a different direction (essentially, why does pricing break down as a signal in highly technical markets) but I'll need to think on this

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Looking forward to it! Feel free to ping me when you post it. Price signals aren’t magic, they all come from people spending money, and I’ve been thinking about how much of the money is controlled by a few tech billionaires with founders’ shares…who all know each other and bandwagon together.

Price signals don’t come from people spending money. They come from coherence—people paying the same price. The “tech problem” for markets is not in tech itself, it’s in the ability to usefully price discriminate. That’s the *why* of surveillance capitalism from the capitalists’ pov.

Coherence isn’t really directly related to prices like that, prices are neither coherent nor decoherent. They are just data. Systems are coherent or decoherent, and prices influence the systems we build and how we build them.

If you want to exclude the price system from “systems that can be coherent”, I’ll find another word. But prices are not “just” data. They’re strategic variables. For the price system to work *for* society, it’s really important that goods that are close substitutes be priced similarly.

Historically, prices were useful for understanding what needed to be built, and then coherence came from trying to be more efficient in building it to make more profit. The issue in software is that price incentives encourage decoherent system design in a number of ways.