The kondratieff cycles
Before going to the heart of the subject let me tell you about the Kondratieff cycles.These cycles were invented by an Austrian economist Joseph Aloïs Schumpter at the nineteenth century who predicted the appearance and consequences of artificial intelligence in 1928 Each economic cycle lasts (on average) 50 years and consists of 4 stages:
1. Expansion (= growth)
2. The crisis
3. The recession
4. Recovery
Each beginning of the cycle begins with a major innovation that boosts the economy.
Talking about of innovation we had 5 majors:
1. Product Innovation
Example: the creation of automobiles in 1889
2. Opportunities
Example: the emergence of new markets or new consumption needs, such as that of social networks in 2006
3. Raw materials
Example: the adoption and use of oil instead of coal
4. Work organization
Example: Fordism, a model of factory work organization implemented by Henry Ford in 1908 that revolutionized factories
5. Production methods
And it is precisely this type of innovation that interests us today. In history, it is the one that has turned our economy upside down the most. Whether with the agricultural revolution in the 1600s and 1700s, when beasts and machines began to replace the work of half the peasants.
Or the industrial revolution of the nineteenth century which tipped a rather artisanal society towards a commercial and industrial society
Or the digital revolution with the appearance of the Internet in 1989. Joseph called this phenomenon "creative destruction."
The Creative destruction is the process of disappearance of productive activities that are replaced by new activities as a result of technological progress. To summarize simply:
The email killed the Fax.
The iPhone destroyed Nokia.
These are perfect examples of creative destruction.
What about AI?
If you look closely, we are at the dawn of a new cycle. Since it has been about 40 years since the Internet, was born, which means that a new innovation will come to revolutionize our economy very soon. And this revolution is AI.
So it is very important not to miss this new technological advance, do research to position yourself on innovative projects
