The first wave of the second machine age automates and augments mental tasks that humans can understand well enough to turn into code. In the second wave, machines are learning how to do tasks on their own, without explicit instructions. This is creating a multi-trillion dollar opportunity. But the benefits are very uneven, with many companies worse off than they were before. In particular, a growing number of winner-take-all markets are dominated by superstar companies while incumbents are challenged to change or die. What’s more, technological advances have created a paradox of growing total wealth, but stagnant median income, undermining our society’s social contract. The implications of the next wave will depend not only the nature of the technology, but also on our management decisions, our policy choices and ultimately, our values.