Age of Intelligence

Originally written July 17, 2020

Hindsight is 2025

Five years on, the Age of Intelligence is no longer theory, its here. The "big bang" moment is obvious in hindsight: the launch of ChatGPT in late 2022. Since then, we’ve watched investment explode, and the same familiar dance between capital, technology, and society begin again. We are squarely in the irruption phase. Frenzy is yet to come.

What follows is the original essay from 2020 — written at a time when the shift was visible only at the edges.


I believe that we're currently living near the end of the 5th techno-economic paradigm according to the model described by Carlotta Perez in her book Technological Revolutions and Financial Capital.

Starting roughly 49 years ago when Intel launched the first commercial mirco-processor, the 5th techno-economic paradigm (also known as the information age), has largely defined our notions of the modern world. The computational metaphor has installed itself into our collective mind, and the products and infrastructure that have sprung from it: computers, the internet, mobile phones, and all the associated software have created massive productivity gains across virtually every industry (and immense wealth for it's winners). But we're also starting to see cracks in this paradigm, it has failed to deliver on many of its uptopian promises. All paradigms must end, and I believe this one is now in the mature phase.

Below I'll summarize the model presented by Perez and explain why we're already starting to see the irruption phase of what I believe to be the 6th paradigm - The Age of Intelligence.

A Model for Progress

In her 2002 book Technological Revolutions and Financial Capital Carlotta Perez lays out a model of how "progress" happens in our world. It's a dynamic dance between technology, capital, and society, that, through a series of great surges and recessions, propels the world to higher levels of productivity and wealth.

The model proposes that since the industrial revolution there have been 5 "techno-economic paradigms", each lasting roughly 50 years. During each paradigm a set of new technologies takes the world by storm, fundamentally altering the economy and later the social institutions globally, as they propagate from initial applications outwards to all industries. These technologies alter the workings of the world so fundamentally that they actually change the mental model of those living through it, hence becoming more than a technology but a full on paradigm. This also indicates why

The 5 paradigms described in the book are:

  • The industrial revolution
    • Core technology: Machines
  • The age of steam and railways
    • Core technology: Steam Engines, Trains
  • The age of steel and electricity
    • Core Technology: Steel & Electrical power
  • The age of oil, automobile and mass production
    • Core Technology: Oil production, Internal Combustion Engines, Plastics
  • The information age
    • Core Technology: Microprocessor, the internet, mobile phones

Each paradigm passes through four stages: Irruption, Frenzy, Deployment, and Maturity — moving from explosive early adoption to a period of saturation, consolidation, and diminishing returns.

By Perez’s timeline, the Information Age is now well into its maturity phase.

  • Core technologies (microprocessors, networks) are improving incrementally, not exponentially.
  • Economic gains from digitalization have plateaued in many sectors.
  • Cultural narratives have shifted from optimism (“the internet will democratize everything”) to disillusionment (“big tech is too powerful”).

History suggests that this is when a new paradigm’s irruption phase begins to overlap with the tail end of the current one, setting the stage for a dramatic shift.

The 6th Paradigm

I believe the 6th paradigm will be known as the "Age of Intelligence", and that it's already underway. In the last 5 years or so that the core technology constellation has coalesced:

  • machine learning algorithms
  • massive datasets
  • extremely large parallelized compute hardware.

And we're starting to see demos which truly bend our expectations of what technology can do. We'll see in retrospect what people consider the "big bang" event is, but I'd be willing to guess that high-profile demos like the AlphaGo tournament, or GPT-3 will be seen as likely candidates. These are not mere incremental improvements - they are hints of a new mental model, where “software” is less about explicit rules and more about adaptive intelligence.

What to Expect

If the Age of Intelligence follows Perez’s model:

  • Irruption (soon): Breakthroughs inspire a flood of investment and experimentation. Many projects fail, but the winners lay the foundation for decades to come.
  • Frenzy: Capital overshoots into hype-driven bubbles; markets become obsessed with AI, automation, and intelligence augmentation.
  • Deployment: AI becomes embedded in every industry, from manufacturing to healthcare to creative work.
  • Maturity: The limits of the paradigm become clear, and society begins searching for the next great surge.

Closing thought

If Perez is right, we’re living through the chaotic first act of the 6th paradigm. Just as steam powered the railways, electricity lit up cities, and silicon transformed communication, intelligence - in machines and in augmented humans - will define the decades ahead.