AI learned to answer,
Now it has to make decisions. 🧐
🌊Wave 1 was fluency — summarize, search, write, code. That already changed knowledge work.
🌊Wave 2 is judgment — hedge, price, allocate, reform. Every action rests on a forecast about what will happen next.
‼️The missing layer: calibrated judgment under uncertainty. When an AI says 70%, events like that should happen about 70% of the time.
Simple to say. Extremely hard to build.
To predict more accurately, you need Yarrow. ☘️
Every decision is a forecast. ✅
· A bank sizes an FX hedge → "Will USD/SGD break 1.30 by Q3?"
· An insurer prices a policy → "How large will claims run this year?"
· A government designs a carbon tax → "Will electricity prices rise more than 8%?"
A decision is only as good as the forecast underneath it. And only a calibrated forecast can be trusted. ☘️