Many global businesses, including banking and finance, pharmaceuticals, the automotive and medical technology sectors, manufacturing, and retail, have been touched by artificial intelligence (AI). However, it has just recently started on its quest toward more affordable, accurate, and quick predictions that guide critical business choices. When prediction is used to the fullest, industries change, and disruption results from those changes. What underlies this situation? Ajay Agrawal, Joshua Gans, and Avi Goldfarb, three renowned economists, laid out the straightforward yet revolutionary economics of AI in their best-selling first book, Prediction Machines. Now, in Power and Prediction, they delve deeper, focusing on the decision, which is the most fundamental analytical unit. The authors argue that prediction and judgement are the two essential components of decision-making, and we perform both simultaneously in our minds, frequently without recognising it. This sets the stage for a flourishing of new decisions and has profound implications for system-level innovation. Redesigning systems of interdependent decisions takes time?many industries are in the quiet before the storm?but when these new systems emerge, they can be disruptive on a global scale. Decision-making confers power. In industry, power confers profits; in society, power confers control. This process will have winners and losers, and the authors show how businesses can leverage opportunities, as well as protect their positions. Filled with illuminating insights, rich examples, and practical advice, Power and Prediction is the must-read guide for any business leader or policymaker on how to make the coming AI disruptions work for you rather than against you.