How We Got Here and Where We're Going: AI History (and Future) w/ Vasant Dhar, Author of Thinking with Machines

Is AI making us smarter or dumber—and how do we make sure we’re on the right side of that divide?

In this episode of AI-Curious, we talk with Professor Vasant Dhar, author of the new book Thinking With Machines: The Brave New World of AI. Vasant isn’t just a historian of AI; he’s part of the story. In the 1990s, he helped bring machine learning to Wall Street, founded one of the world’s first ML-based hedge funds, and became the first professor to teach AI at NYU Stern, where he’s now the Robert A. Miller Professor of Business. He also hosts the podcast Brave New World.

We explore how AI evolved from early efforts around “thinking, planning, and reasoning” to the long era of pure prediction and machine learning, and then to today’s general-purpose models that blur the line between expertise and common sense. Vasant explains why the autocomplete problem turned out to be a gateway to something like “general intelligence,” and why that matters for how we define knowledge, understanding, and reasoning.

We then dive into finance and the search for “edge.” Vasant shares war stories from his days at Morgan Stanley, where machine learning systems quietly reshaped trading strategies and risk-taking. We unpack his work on “the DaBot,” an AI built on the writings and valuation framework of Aswath Damodaran, and what happens when every analyst and firm can tap this kind of supercharged valuation machine. Does AI erase the edge—or simply raise the bar for everyone?

Finally, we zoom out to careers, education, and everyday life. Vasant argues that AI is likely to bifurcate humanity into those who become “superhuman” by thinking with machines, and those who outsource their thinking and fall behind. We discuss how classrooms will change, why many teachers (and professors) may be more automatable than they realize, and how each of us can periodically test whether AI is making us smarter or dumber.

If you’re curious about how to work with AI rather than be replaced or outpaced by it, this conversation offers a grounded, big-picture way to think about your edge in the age of intelligent machines.