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When Symbols Become Cheap and Reality Does Not

AI is driving the marginal cost of digital reality generation toward zero, but physical reality does not follow the same curve. We are entering a structural divergence between symbolic abundance and embodied constraint.

AI is driving the marginal cost of near real time digital generation toward zero.

Words. Images. Videos. Plans. Forecasts. Strategies. Entire operating narratives.

But reality does not follow the same curve.

  • Land is finite.
  • Energy requires infrastructure.
  • Machines wear out.
  • People get tired.
  • Time does not compress.

We are entering a structural divergence:

Symbolic abundance. Embodied constraint.

The Real Divide

The future is not online vs offline.

It is symbolic systems vs embodied systems.

Symbolic:

  • Models
  • Dashboards
  • Policies
  • AI-generated reasoning

Embodied:

  • Energy
  • Materials
  • Skilled labour
  • Physical risk
  • Maintenance

Symbols now scale at near-zero cost.

Embodiment does not.

Decision-Making in Simulation

AI can generate plausible worlds.

Market scenarios. Organisational designs. Technical architectures. Policy arguments.

Decisions will increasingly be made inside models before touching reality.

This will feel efficient. It will also increase fragility.

When plans are cheap, overconfidence is cheap.

A coherent model is not proof.

A persuasive argument is not resilience.

If it can be generated, it is not evidence.

Evidence requires contact with the physical world.

Scarcity Shifts

As symbols become abundant, scarcity moves to:

  • Attention
  • Trust
  • Grounded measurement

Reality becomes a premium signal.

Organisations will split into two loops:

  • Fast symbolic loop – generate, simulate, propose.
  • Slow embodied loop – execute, measure, correct.

The advantage goes to those who close the loop tightly:

claim -> test -> measure -> adapt.

The Prescient View

AI will make simulation abundant. Reality will remain constrained by matter and energy.

The widening gap between them is where systems fail - or where durable advantage is built.

The task is not to resist hyperreality.

It is to operate within it without forgetting the territory.


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