Assessing the Impact of the Productivity Miracle

The Bridgewater research team explores the potential impact of a productivity miracle where the marginal cost of cognitive tasks approaches zero, noting that current AI/ML tools still face significant bottlenecks in deploying complex cognitive tasks, requiring substantial human intermediation. The study analyzes the core sources of corporate pricing power in a low-marginal-cost world, including high upfront investment barriers, quality differentiation, and switching costs.