Digital Proficiency

A paradigm shift is occurring.  The territory is changing.  A new map is necessary. Trying to use your old map to understand the new territory will be unsatisfying.

This shift is caused by the difference between how "realspace" (the real world, analog) and "cyberspace" (the internet, digital) operate. While many things will stay the same; it is also the case that entirely new business models and products are possible.

Probably the biggest mistake one can make is misunderstanding the notion of intelligence and grouping "human intelligence" and "machine intelligence" together.

I would contend that it is a fool's errand to try and compare machine-intelligence to human-intelligence.  They are not even in the same ballpark and they won't be for a long time, if ever.  The notion of "superintelligence" in computers is a fantasy. Computers are nowhere close to achieving superintelligence which I would consider as being human-level intelligence or higher levels of intelligence beyond the capabilities of humans.  If you are interested in this topic, I would highly recommend the book The Myth of Artificial Intelligence which analyzes these ideas in great detail in a very approachable way.

That is not to say that nothing will change.  Plenty will change. But I look at what is going on differently than most others.  I define intelligence as effective “human-task” performance. Basically a "machine" (e.g. computer or other apparatus) for performing human tasks agreed to by a known group of stakeholders and the system has known goals and objectives.  In essence, this is a formal system with specific boundaries and the system is blind to something not covered by the rules of that specific defined system. This will be a combination of symbolic systems and machine learning, using the right tool for the job.

Increasing efficiency or productivity without maintaining quality or increasing quality is useless

Lawrence Lessig explains this difference between "realspace" and "cyberspace" in his book, Code and Other Laws of Cyberspace.  The book outlines what is referred to as the Theory of Regulation or the Pathetic Dot Theory; the four forces that constrain our actions:

  • Laws and regulations:  The law threatens sanction (which are to be avoided) if rules are not obeyed.
  • Norms: Social norms are enforced by the community (which people tend to want to conform to).
  • Markets: Supply and demand (e.g. better, faster, cheaper) set a price on various items or behaviors.
  • Architecture: The “social architecture” whether natural (made by nature, like physics) or designed (manmade, a tool) constrain our actions.

Changes must be considered within the context of all four of the above constraints.  You cannot simply consider one constrain and ignore others; all four must be considered together.

Proficiency is the capability, skill, and knowledge that you might have for doing something. There are general levels of proficiency: literacy, fluency, mastery. Proficiency is a progression.

Digital proficiency is the capability to understand the change between "realspace" and "cyberspace".  One key benefit of digital proficiency is that it helps you understand the true limitations of technology.

"Digital" is a thing. It is causing many changes, and not understanding what will change, why, and how is becoming increasingly risky. 

Accountants, and others, must choose what type of "cyberspace" they want.  The great transmutation to digital, things like "algorithmic regulation" and "digital twins", will cause the world to work in different ways than it has worked in the past. Completely new business models and products are possible. To effectively realize these capabilities, you need to understand not just your domain of knowledge; but also, technology as it might be applied to your domain of knowledge.  But also, efficiency without quality is useless.

To choose correctly; accountants, and others, need to have digital proficiency.  More people with liberal arts degrees need to correctly understand digital.

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