Context Engineering: Why Hayek's Knowledge Problem Survives AI

Walker responds directly to Brynjolfsson and Hitzig: AI does not automatically codify knowledge — someone has to prepare, structure and maintain the context that makes knowledge usable by the model. What is missing from the theoretical frame is the human cost of making knowledge machine-usable. This connects with the practical experience that adopting AI requires transforming the organisation — documenting, structuring information, changing flows — which is exactly the kind of intangible investment that explains the J-curve. A necessary corrective to any story where AI just "reads the firm" and extracts value.