Just How Smart Are Smart Machines?

If popular culture is an accurate gauge of what's on the public's mind, it seems everyone has suddenly awakened to the threat of smart machines. Several recent films have featured robots with scary abilities to outthink and manipulate humans. In the economics literature, too, there has been a surge of concern about the potential for soaring unemployment as software becomes increasingly capable of decision making. Yet managers we talk to don't expect to see machines displacing knowledge workers anytime soon -- they expect computing technology to augment rather than replace the work of humans. In the face of a sprawling and fast-evolving set of opportunities, their challenge is figuring out what forms the augmentation should take.