Hayek called the assumption that central authority can gather and use all relevant knowledge “the fatal conceit.” Just as Soviet planners couldn’t capture the distributed knowledge embedded in economic decisions, today’s AI systems can’t aggregate and optimize all relevant social knowledge. Human behavior is too complex. Cultural context is too important and can’t be formalized.

 

What Would Hayek Think of AI?

The ‘fatal conceit’ that central planning can solve complex social problems arises in a new form.

By 

Gary Saul Morson

 and 

Julio M. Ottino

June 30, 2025 2:37 pm ET