The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
But it doesn’t work!
You hear all sorts of anecdotes about a business who retrenched their workforce to replace with LLMs, everything comes crashing down and they have to rehire all their workforce at higher rates.
It would be interesting to see actual verified numbers.
I am sure that a lot of useless people can be replaced with computers, but most of the time, all it requires is a very small sh script, it doesn’t need a monstrous data centre that uses more water and power than a human.
It doesn’t work for some people and some businesses and when that happens, it gets blasted all over the place because it makes for a good headline.
Tons of jobs have been replaced by ai, though. Especially customer service chats and online help and a LOT of game production and design art jobs and music and editing jobs.
Plus all the jobs where people are still there but heavily relying on ai.
But it doesn’t work! You hear all sorts of anecdotes about a business who retrenched their workforce to replace with LLMs, everything comes crashing down and they have to rehire all their workforce at higher rates.
It would be interesting to see actual verified numbers. I am sure that a lot of useless people can be replaced with computers, but most of the time, all it requires is a very small sh script, it doesn’t need a monstrous data centre that uses more water and power than a human.
It doesn’t work for some people and some businesses and when that happens, it gets blasted all over the place because it makes for a good headline.
Tons of jobs have been replaced by ai, though. Especially customer service chats and online help and a LOT of game production and design art jobs and music and editing jobs.
Plus all the jobs where people are still there but heavily relying on ai.