Tag: Tacit Knowledge

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AI Business

The Reverse Information Paradox We’ve Always Had

Satya Nadella wrote recently about what he calls the Reverse Information Paradox: enterprises pay for AI intelligence twice. Once in money. Again in the proprietary knowledge they surrender through every prompt, correction, and evaluation. The better they use the model, the more of their own institutional understanding leaks into someone else’s system. The vendor ends up knowing more about the buyer’s business than the buyer knows about what the vendor retained.

Replace “model” with “employee” (or “consultant”) and the paradox is not new at all.

You pay for a person once with salary. You pay again with something harder to price: the context, relationships, and judgment they must absorb to become useful to you. The better they perform, the deeper the immersion, the more of your particular way of doing things moves into their head. Every correction and late-night conversation is another trace of institutional memory changing hands. When they leave, some of that memory leaves with them. Not always through theft. Usually just through the ordinary residue of good work.

The visible cost is salary; the invisible cost is the slow transfer of what makes you distinctive. High performers get more access precisely because they’re high performers, which means the leakage accelerates exactly when you can least afford it. The exhaust is just harder to see with people than with tokens — it moves through conversation and mental models instead of logs.

The analogy has a limit, and the limit matters. Employees bring knowledge in, not just absorb it. They have judgment and relationships a model doesn’t. Models are purely absorptive, and once something is inside them, it’s infinitely reproducible — a person can only be in one place, working for one employer, at a time. We’ve had a few hundred years to build tools for the human version of this problem: contracts, culture, non-competes. The model equivalent is still being invented in real time, which is exactly why Nadella felt the need to name it.

Apple’s recent legal action against former employees who joined OpenAI is this pattern in its sharpest form. Whatever the specifics, the shape is familiar: people who spent years inside one of the most sophisticated organizations in the world, carrying out knowledge that never appeared on any balance sheet and was hard to contain. No one fully anticipates what a mind absorbs simply by being in the room long enough.

That’s the real difference between the silicon case and the human one. You can try to take action to wall off knowledge flowing to a model. You cannot wall off what someone has learned to notice.

Categories
AI Learning Photography

Autopilot

“Superb photographs are not just taken with cameras. They come from within you, your eyes, your mind, your heart, not ice cold equipment.” Fan Ho

There’s a half-second on the street, somewhere between seeing a frame and shooting it, that used to take me whole minutes. Early on, with a camera in my hands on the streets of San Francisco or on the subway platforms in New York, I’d see something — light falling a certain way, a gesture about to resolve into a gesture — and I’d think my way through it. Assess the composition or the angle. Worry about the background. By the time I’d worked it out, the moment might be gone, replaced by some lesser version of itself.

That doesn’t happen to me anymore, and I couldn’t tell you when it stopped. Somewhere along the way the thinking disappeared and the shooting stayed. I see the frame and the shutter goes, and only afterward, looking at the file, do I understand what I saw. I didn’t explicitly decide to skip the thinking. It just stopped showing up, the way a habit eventually stops asking your permission. Or how driving a car becomes second nature.

I think about this because of a problem the AI labs have been calling continual learning. The AI models we use are like brilliant interns. They can solve a hard problem at nine in the morning and a harder one by five, and they’ll astonish you doing it. But every session starts over from zero. Whatever they got right on Tuesday evaporates by Wednesday, the way a dream is gone by the time you’ve found your slippers.

The industry’s first answer was to give them a longer memory — let the window hold the whole case file in front of them, all the time. This works for a while, the same way it would work for me on the street if I stopped and re-derived the exposure math for every frame. But that isn’t how I shoot anymore. I don’t have the math open. I have what’s left after thousands of frames did the math for me and then got out of the way.

Based on some exploration I did this morning using AI I found three different AI research efforts that are now chasing that gap, from different angles, none of them all the way there.

A team out of Stanford and NVIDIA built something called TTT-E2E, which lets a model keep adjusting its own internal weights while it reads — not just holding the page in front of it, but being changed by the page, a little, as it goes. It runs thirty-five times faster than the brute-force method of remembering everything, because it isn’t remembering everything.

Google’s research arm published something called Nested Learning around the same time, built on the idea that a mind isn’t one system learning at one speed, but several systems nested inside each other — some updating by the minute, some by the year.

And a scrappier strand of work called self-distillation has models teaching cheaper versions of themselves, not by handing over a transcript, but by training the cheaper model to arrive on its own at whatever the well-informed version would have concluded.

None of this is what happens when I make a photo. Not yet. But it’s aimed at the same gap I live in every time I shoot before I understand what I’m shooting. The gap between having the math and having the eye.

I once asked Doug, a good friend who’s spent as many days on the street as I have, how he knew when to press the shutter. He didn’t have an answer, not really — just a shrug, and something about the moment feeling complete before he could explain why. That shrug took him years to earn. He didn’t keep the years. He kept the shrug.

And then a few years ago Doug did something I still don’t fully understand. He abandoned digital and went back to film. Not for any project, not for the look of it — he could get that in post if he wanted it. He went back to the actual mechanics: loading a roll, metering by hand, often using a tripod, etc. I needled him about it some, the way you’d needle a cigarette smoker who’d taken up a pipe instead, as if the inconvenience were the point. He told me he wanted to slow down, and that film was the only thing that reliably made him do it. Twelve frames and then you stop and reload and you can’t fix it later. The very friction he’d spent decades shooting his way out of, he went looking for again, on purpose.

I don’t know what to do with that, except to notice that he’s the same man who can give me the shrug and also the man who walked back toward the thing the shrug had replaced. Maybe that’s the part the labs haven’t gotten to yet, underneath all the vocabulary of weight updates and meta-learned initializations. Compression is the whole point, until the day it isn’t.

Note: This line of thinking started with a recent essay by Dwarkesh Patel on what he calls continual learning. It’s become a real focus of his thinking about how we get to a better future with AI.

See: https://www.dwarkesh.com/p/the-next-paradigm

Categories
Creativity Curiosity Living Work

The Human Router

There is a distinct difference between information and wisdom, and often, that difference is measured in velocity. We are accustomed to thinking that faster is better—fiber optic cables, 5G, real-time Slack notifications. We want knowledge to travel at the speed of light.

But Dan Wang, in his book Breakneck, captures a sociological truth about Silicon Valley that defies this obsession with speed:

“When I worked in Silicon Valley, people liked to say that knowledge travels at the speed of beer. Engineers like to talk to each other to solve technical problems, which is how knowledge diffuses.”

It is a charming, slightly irreverent metric, but it points to something profound about how humans solve difficult problems. There is “codified knowledge”—the explicit instructions found in textbooks, API documentation, and internal wikis. This travels instantly. It is frictionless. It is also, usually, insufficient for true innovation.

Then there is “tacit knowledge.” This is the intuition, the heuristic, the war story about why a specific architecture failed three years ago. This knowledge is heavy. It doesn’t travel through fiber optics; it travels through proximity. It requires the social friction of a shared table and the serendipitous collision of two engineers venting about a seemingly unrelated problem.

Crucially, this mechanism requires a specific type of operator: the Connector. These are the unsung heroes of the “speed of beer” economy. They aren’t always the 10x engineers on the leaderboard. They are the “human routers”—the people who instinctively know that the problem you are facing today is the same one Sarah from the Platform team solved last year. They are the ones who drag the introverted genius out to the pub, not to distract them, but to plug them into the grid. They curate the environment where the spark can jump the gap.

In our modern drive for remote efficiency, we are optimizing for the transfer of data. But we must be careful not to optimize away the people who pour the drinks, literal or metaphorical. That slow, liquid diffusion of ideas is often where the real breakthrough hides—steered by those special few who know exactly who needs to talk to whom.

Categories
AI Work

The Rungs We Leave Behind

“Companies, too, must prepare. To thrive they need not only to make the best use of ai, but also to find and nurture the best people to work with it. Some back-office workers will lose their jobs. But others with tacit knowledge of the business may be trained for new roles. The biggest mistake would be to stop hiring young people altogether. That would not only choke off the pipeline for future talent, it would rob businesses of AI natives. Instead, companies should rethink the type of work they offer young people—less grunt labour, more judgment and analysis; speedier rotations across the business so they gain insight that ai cannot have; piloting new roles and trying new approaches.”
— The Economist

There is a specific kind of quiet panic in boardrooms today. It isn’t just about the bottom line; it’s about the lineage of knowledge. For decades, the “entry-level” role served a hidden purpose. It wasn’t just about getting the spreadsheets done; it was about osmosis. By doing the “grunt labor,” a young professional absorbed the culture, the politics, and the subtle, unwritten rhythms of an industry—what we call “tacit knowledge.”

We often view AI as a replacement for the “boring stuff,” but we forget that the boring stuff was the soil in which expertise grew. If we remove the bottom rungs of the ladder because a machine can climb them faster, how do we expect anyone to reach the top?

The shift from “labor” to “judgment” is a profound psychological leap. We are essentially asking 22-year-olds to skip the apprenticeship of execution and move straight into the apprenticeship of discernment. This requires a radical empathy from leadership. We cannot simply hand a junior employee a powerful AI tool and expect them to know what “good” looks like if they’ve never seen “bad” up close.

The “AI native” brings a fluidity with technology that my generation might never fully replicate, but they lack the scars of experience that inform intuition. To thrive, companies must become teaching hospitals rather than just production factories. We need to create “judgment-rich” roles where young people are encouraged to experiment, to fail safely, and to rotate through the business at a pace that keeps them ahead of the automation curve.

The disruption is here. It is unavoidable. But there is a soulful middle ground: using AI to strip away the drudgery while doubling down on the human mentorship that transforms a “worker” into a “leader.” The goal isn’t just to make the best use of AI; it’s to ensure that when the AI provides an answer, there is still a human in the room with the soul and the context to know if that answer is right.