AOL co-founder Steve Case has stated that the expansion of artificial intelligence is making real-world human relationships and physical experiences more valuable than ever.
Writing in a commentary for 247 News Agency, the technology veteran argued that while digital tools make online content cheaper and faster to produce, physical interactions that technology cannot replicate will see their economic and social value increase dramatically.
Case, who currently serves as chief executive officer of the US venture capital firm Revolution, noted that technology frequently alters human values in ways that are difficult to anticipate, marking one of the most critical economic shifts of the artificial intelligence era.
Historical cycles of innovation
Comparing current technological changes to past economic revolutions, Case explained that major technological breakthroughs historically create new possibilities alongside new challenges. In the late 19th century, the expansion of railways connected nations in ways previously unimaginable, yet isolated communities located away from the tracks. The automotive industry subsequently emerged to serve the populations left behind by rail transport.
Case argued that a similar dynamic is unfolding today, with human contact becoming the scarce resource. Reflecting on his career leading America Online, the pioneering internet service provider launched in the 1980s, Case said his work was driven by the desire to connect people with information and each other. While the platform succeeded, subsequent online developments altered the nature of those connections.
Social media networks later introduced predictive algorithms intended to filter noise and link individuals with shared interests. However, Case noted that this approach generated unintended consequences by reducing deep personal connections and limiting unexpected encounters outside algorithmic filter bubbles.
Social media and the convenience economy
The trade-off between convenience and human connection is also visible in daily commerce. Case recalled that during his twenties, ordering food late at night was largely restricted to pizza, whereas modern smartphone applications can deliver almost any meal within minutes. Although convenient, Case observed that on-demand delivery reduces visits to local neighborhood restaurants and decreases opportunities to meet community members.
To explain this phenomenon, Case cited futurist John Naisbitt, who coined the concept of high tech and high touch in the early 1980s. Naisbitt posited that as technology becomes more pervasive, people increasingly seek human counterweights to balance their digital lives. Case stressed that this principle is growing even more relevant as artificial intelligence expands.
Artificial intelligence systems can now summarize complex topics, generate images in seconds, and perform tasks that previously required human labor. As digital content achieves unprecedented abundance, economic value shifts accordingly. When information is scarce, users pay for judgment and trust, but when digital entertainment is available on demand, people seek out live events that provide a reason to leave home.
Growing demand for real world experiences
Evidence of this shift toward physical presence is already emerging across multiple industries. National Geographic has seen exploration trips become one of its fastest-growing service lines. Similarly, theme parks operated by The Walt Disney Company continue to draw record visitor numbers despite the vast library of content available on the company's streaming service.
In the music industry, fans routinely fill stadiums to listen to songs they have already streamed hundreds of times on Spotify, seeking the shared experience of a live event rather than the audio alone. Case also pointed to this year's World Cup, where millions of spectators gathered in public parks and city squares to watch matches together in real time.
Investor focus on physical assets
Prominent technology founders and corporate executives are increasingly directing capital toward physical assets that artificial intelligence cannot replace. Uber co-founder Travis Kalanick recently raised 1.7 billion dollars for Atoms, an industrial artificial intelligence venture, operating under the principle that physical land remains finite. While artificial intelligence can optimize physical assets, it cannot create additional land, factories, or infrastructure.
Other major business figures are pursuing similar strategies. Bernard Arnault, chief executive of luxury group LVMH, has shifted emphasis from luxury goods ownership toward experiential offerings by investing heavily in hotel real estate. Meanwhile, media executive Barry Diller has sought to acquire MGM Resorts, pointing to the value of physical hospitality properties that digital technology cannot easily disrupt.
Looking ahead, Case emphasized that entrepreneurs face a major opportunity to build physical spaces, businesses, and gathering places that technology cannot replicate. He concluded that the next major wave of innovation may focus not on digitizing the physical world, but on encouraging people to return to it.
In addition to leading Revolution, Case heads Revolution Places and serves as chairman of Exclusive Collective, the parent organization of Exclusive Resorts, onefinestay, and Inspirato.
