For many, decentralization is a step in the proper direction when it comes to avoiding a dystopian future due to technology. On this account, I could agree.

However, when it comes to superior agents, things get turned on their ears.

We are not talking about a simple agent to write an email. Nor are we focusing upon the common trading bot. Instead, we are going to be dealing with agents that can write their own code, based upon real world activities. These agents, however, have no regulation nor corporate overlords.

One positive, it is likely the pushback against Big Tech. These agents can be built on decentralized networks, using oracles and database information tied to those systems.

Of course, the incentive systems already built into decentralization is going to help tilt things in that direction.

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Superior AI Agents Will Be Decentralized

A trading bot is programmed to take action based upon certain parameters showing up. When these conditions are met, the bot makes a trade. This is the case for both the traditional financial markets (such as stocks) and cryptocurrency.

One known trading strategy is "buy the dip". This is one that works, until it doesn't. A normal trading bot would simply keep adopting the strategy, even as losses build. Again, if the conditions are met, it trades upon it.

This differs from a superior agent. It is no longer "dumb". Instead, it will code itself based upon what it learned. Thus, perhaps the next time a condition shows up, along with some other parameters, the agent moves to a stablecoin for protection.

All without human intervention.

While this can sound a bit scary, the reality is that decentralized AI pulls from a range of AI models and distributes the benefits across a wider range of people. In other words, the incentive mechanism is inherent. This contrasts Big Tech which pulls in large numbers into the process yet provides the benefits (mostly financial) to a few.

The Battle For Data

The centralized versus decentralized battle brings up another point. This spills over into the quest for attention. Eyeballs are always key, especially when they are tied to fingers that operate a keyboard.

Most are aware of the data factory known as the Internet. Since the earliest days, success can from data monetization. This meant getting the attention of people while offering incentive (non-monetary) to provide the data. Like the lemmings humanity is, we succumbed.

Data value is well known today. That does not stop billions from feeding Big Tech on a regular basis. Truth be told, Web 2.0 established a fantastic system that makes it hard to escape.

With superior agents, the game changes. Going back to our trading bot, anyone will be able to leverage a trading bot for cryptocurrency trading.

The key is infrastructure. As more is built out, the next generation agents will be able to do more with less compute. Modest infrastructure will provide agents with the capabilities to excel.

Part of this comes from specialization. Less compute is required when an agent is only focused upon certain things. It is not concerned with the latest movies reviews or who won the EPL championship.

That said, there will be more "general" agents. Each will have this to a degree in the ability to pull real time from the Internet. The result is the self improvement will come from targeted knowledge the agent incorporates.

By removing the puppet masters (Big Tech), the masses can profit. Naturally, we are referring to more than just financial, although that is a major part of it.

Agents are going to completely upend markets and the economy. These entities will be able to manipulate markets in ways the greediest Wall Street trader only dreamed of. For a period of time, the ability to influence sentiment will cause agents to push things in the direction of their trades.

This will dissipate over time as agents take over markets. When people are removed from the equation, things operate without interference. Agents will counter each other, perhaps providing true market equilibrium.

Why Is This Important

AI is taking over. We are only seeing the first generation of what is to come.

Over the next couple years, the shift will be from agent-to-human interaction to agent-to-agent. The humans will be removed from the process.

Before anyone gets upset with this, there are many examples of humans not involved in the running of things. Humans are no longer involved in the routing of phone calls. Elevators move without the guidance of humans. Traffic lights run, for the most part, without any input from people. All our calculations online are done by computers.

This is where the economy is being reshaped.

The Brookings Institution found that generative artificial intelligence may disrupt at least 50% of tasks performed by more than 30% of all workers. The same study also estimates that genAI may affect at least 10% of tasks performed by approximately 85% of the human workforce.

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Things are moving fast. We best get ready.

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