Chapter 2: The AI Flywheel - Understanding Network Effects
Learning Objectives:
- Understand Metcalfe's Law and network effects
- Recognize how AI systems improve through data collection
- Identify winner-take-all dynamics in technology
Key Topics:
The AI Flywheel archetype
Network effects and platform dynamics
Data advantages and algorithmic improvement
Path dependence in technology adoption
Interactive CLD Examples:
Social media platform growth Search engine improvement cycles Recommendation system refinement