The allocation economy: What comes after knowledge work

The Allocation Economy: Mastering AI for a Future of Generalist Superpowers

Mr. Dan Shipper, Co-founder and CEO of Every, introduced the “allocation economy” at Web Summit Lisbon 2025. This model shifts compensation from what one knows to the effective allocation of intelligent resources, primarily by managing Artificial Intelligence. It represents a fundamental change from the traditional knowledge economy, redefining how value is created.

Success in this new economy demands managerial skills: vision, taste, and task decomposition. Individuals will direct and integrate outputs from AI agents. This is already evident with tools like Claude Code, which autonomously performs complex programming, signaling AI’s growing capacity for high-quality work across various fields, including writing and design.

Every, Mr. Shipper’s company, exemplifies this shift, running five businesses with just 15 employees due to its “AI-native” structure. This implies nearly all workers, from farmers to scientists, will become AI managers. Learning AI management is accessible and affordable, democratizing this critical skill through hands-on practice with tools like ChatGPT.

AI acts as “a thousand different PhDs in your pocket,” empowering curious generalists to explore diverse domains without deep specialization. This also facilitates creative work with “fractured attention,” allowing intermittent engagement and improving work-life balance, enabling tasks like programming in short bursts between other commitments.

Mr. Shipper advised against rigid skill predictions, instead recommending cultivating curiosity and integrating AI into personal interests. For companies, successful AI adoption hinges on the CEO’s personal engagement. They should empower early adopters, then translate findings into practical tools and prompts for the broader workforce.

The allocation economy will reduce corporate hierarchies by minimizing middle management, as individual contributors manage AI tools directly. AI’s efficient information synthesis, exemplified by tools like Granola for meeting insights, streamlines communication. While optimistic, Mr. Shipper acknowledged downsides like job displacement, stressing transparently addressing these and mitigating negative impacts.