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Under state our progress. because the new machine age is more about knowledge creation than just physical pro dpuks. it's mind not matter, brain not brawn, ideas not things. that creates a problem for standard metrics, because we are getting more and more stuff for free. >> eric joins us now. what do you mean ideas create a problem for standard metrics? >> wikipedia has tremendous value for me and other people. it is available for free that means that it doesn't show up in their gdp statistics which measures value of goods and services bought and soeltd. >> one example you used is the robot ib...

Today -- world's best diagnostictition, i would not be surprised if it was in years. john: you wrote we had the first industrial revolution, about expanding people's strength and power of our bodies this is about expanding our brains, you say this is bigger. >> we talk about the increase in living standards brought boo about -- brought about by the steam engine, that is physical power, now we're improving mental power cognition, with tools like watson. john: that is just going to keep happening, computer performance doubles every 18 to 24 months. >> computers get better faster than anything el...

If it is not the world's best diagnostician i wouldn't be surprised if in 20-years it was and we go to doctor watson. >> you have written we have the first industrial revolution expanding peopleally strength and power of our bodies. this is about expanding our brain. you say this one is bigger. >> we talk about the incredible increase in living standard brought about by the steam engine in the first industrial revolution. that was about physical power. now we are improving mental power, cognition, through cools like watson and big data and other tools. ultimately i don't see how that wouldn't ...

Faster than any human could. and shortly after dave showed this chart to my class at m.i.t., watson beat the world jeopardy champion. john: he won a million dollars, ibm gave it to charity. >> eric also covered what happened to watson next. >> it i its teachers let it sure internet unsuperviseed, the next day it starteed answering questions with profanitys, but watson is growing up fast, tested for jobs in call center, and getting them, applying figure legal, banks and medical jobs, and getting some of home. john: really? legal jobs? doctor jobs? absolutely, watson is reading all medical liter...

The new machine age is more 'knowledge creation than physical production, it is mind not matter, brain not braun, ideas not things that creates eye problem for -- creates a problem for standard metrics we're getting more and more stuff for free. john: eric is joining us now what did that mean. >> wikipedia available for free, that means it does not show up in their statistics that measure value of goods and services bought and sold. john: one example you used in youred to talk, robot that -- ted talk was ibm named watson, that went on jeopardy to compete with people and lost, but that was in 2...