Raoul Pal: The Journey Man The Last Economy: Predicting the AI-Driven World
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Oct 30, 2025 
Emad Mostaque, co-founder of Stability AI and author of 'The Last Economy,' discusses the revolutionary impact of AI on economics. He introduces the concept of an economic singularity, which may lead to a profound deflationary shock and a shift from scarcity to abundance. Emad explains how generative AI can reshape traditional economic models by lowering cognitive labor value and emphasizes the importance of adapting swiftly. The conversation touches on the future of digital assets, the role of personal AIs, and the need for innovative monetary systems.
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AI Returns May Decentralize Locally
- Localized, efficient models can run on common hardware, so AI returns won't all centralize to mega-data-centers.
- This enables small businesses and individuals to run powerful AIs, shifting where economic value accrues.
Networks Become Human Value Anchors
- Network value and human relationships become primary sources of human economic value as cognitive work commoditizes.
- Emad calls this the 'abundance trap' where identity and social roles face rapid disruption.
Markets Face AI-Driven Price Discovery Shift
- Financial markets will shift as AIs become dominant predictors and participants, eroding human edges and increasing market manipulation risks.
- Emad warns that prediction markets and price discovery mechanisms may fundamentally change when AIs outperform humans.
