AI Revolution Reshapes Economy As Human Judgment Becomes Key

Dror Berman, the founding partner of a venture capital firm with $2 billion under management, reflects on the rapid advancements in AI and its impact on the future. As a child captivated by the idea of traveling faster than light in Star Trek, Berman studied computer science and bioinformatics with the hope of contributing to technological breakthroughs. Today, AI has not only arrived but has upended industries and rewritten playbooks, making human creativity, empathy, and connection more valuable than ever.

In 2018, Berman predicted that the convergence of sensors, compute, and robotics would compress decades of progress into years. However, the acceleration has been even more exponential. AI is now capable of seeing what humans cannot, with context windows growing 100 times in just two years. This has enabled models to process entire codebases or simulate workflows in seconds, and the cost of running massive models has dropped significantly, making advanced technology accessible to solo developers.

The advent of agentic AI, which can research, reason, and execute entire projects autonomously, has further revolutionized the field. Top engineers have even stopped coding because their AI agents are that proficient. Google's latest video model, VEO3, generates visuals so realistic they are indistinguishable from reality, showcasing the leapfrogging of industries.

Despite the abundance driven by AI, the most powerful capabilities are becoming scarce. Compute, energy, and networking—the infrastructure AI needs—are not scaling fast enough to meet demand. Running a network of AI agents is orders of magnitude more expensive than traditional software. This scarcity is already evident, with users willing to pay premium prices for AI tools, indicating the real value these tools provide.

In the next three to five years, the best AI will not be universal but a luxury, changing the entire economy of knowledge. As AI consumes technical work, human judgment becomes the last real moat. For decades, technical skill was the holy grail, but now AI can replicate much of it instantly. Human judgment, earned from thousands of ambiguous decisions, is what will set leaders apart.

This shift flips the value stack, with skills that once earned the highest salaries becoming commoditized. What is irreplaceable is judgment, the kind earned from experience and intuition. Those who lean into their experience and intuition become the real power players, while others risk becoming middleware, human interfaces between AI engines.

In this new landscape, speed is the only sustainable advantage. AI capabilities evolve monthly, and market assumptions break quarterly. Disruption now comes from small teams using bleeding-edge stacks to ship faster than any incumbent can react. Companies that build for velocity and can make big decisions in days, not quarters, will be the ones that last.

This AI revolution changes how we decide and act, reshaping economic power around access to compute and elevating the value of uniquely human insight. For leaders, this means prioritizing creativity, intuition, and human connection over rote technical skills. For investors, it means betting on founders who can move fast and have good intuition. For everyone else, it’s a wake-up call: The machines can code, write, and reason, but they can’t be human. That’s not a flaw; it’s what makes us indispensable.