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Different take than P1 but similar— the capabilities of what most clients think of as “AI” (LLMs etc) are grossly overstated and misunderstood among they majority of people at present. Even with rapid development (which, just a guess, will continue to plateau), that doesn’t seem likely to substantially change near term.
Productivity enhancement maybe, but not a replacement for people who know what they’re doing.
IMO anyone thinking they can lay off swaths of people either has those people doing something that already isn’t valuable or is a full moron.
Bowl Leader
Just one person’s perspective here: clients are driven by ROI vs. innovation in today’s business climate, especially for publically traded organizations. I sell AI by selling the production improvement, faster cycles, lower lag time once team members are trained in how to use their AI (whichever flavor it might be). I don’t sell buy AI and layoff the whole team. Humans always need to be involved as much as the AI scientists hate to hear it.
AI has gotten a bad rap and human abilities have been discounted…by humans. Greedy humans pandering to stockholders. AI doesn’t replace people. It might fool shareholders for awhile but the fact these mass layoffs happen at earnings calls as a way to cover disappointing results says something. Where are the actual plans when they say they’re replacing 10s of thousands employees with AI. There aren’t any.
Great Econ reads!