The fact that it is just a cost comparison, however much humans might still be winning it roght now, is the fundamental problem.
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Add to that the fact that hiring and training a new employee usually costs between 5-10 times more than retaining an employee (from hire to fully trained)
Yeah no shit. You get people dependent on your product, then Jack up the price
Corpo fell for the oldest corpo trick.
"Why did you destroy your company to just inflate your next quarter bonus?"
"It is my nature"
It’s funny too because at our company people keep repeatedly asking “what are you gonna do when they predictably jack up the rates?”
And every time “don’t worry about that right now. We’re keeping a close eye on it. “
Uh huh.
Those same managers eleven seconds later when they get an ad for a new startup making the same obviously empty promises as the last startup:

They love those the most because they integrate them and then use it to justify a promotion or move so they can get out of Dodge before the inevitable explosion happens on the next guys watch. The next guy blames the previous guy and then repeats the process.
Does AI cost more than humans primarily because of greed (i.e the AI companies demand a high profit margin now) or because of energy costs (i.e AI is so wasteful with energy, so polluting, that it costs more than human workers)
Given the ai companies are running at a loss, it’s fair to assume which of these is likely
It's both.
Precisely. The question then is, which one is the main driver? I think it does fall on energy cost/the ridiculous scale of infrastructure they've decided is required to sustain AI companies.
Conclusion (for a luddite) is that One could cripple AI companies if simply prevented them from finishing their data centre every time. Goodness, it's like a RTS strategy game where you have to build a monument to win the game.
If the other one is the main driver of this, purely an inflated profit margin, it indicates that AI is already collapsing and they're desperately trying to scrape more venture capital off the back of the businesses that haven't clued-in the how ineffective AI usually is.
The AI companies bet on efficiencies occurring that have not materialized.
They fired the wrong people. Go higher!
The fact that piece of algorithm is getting paid more than a human being, who eat, live, love, is outrageous. Humans are the worst.
Just to twist the knife, the algorithm was likely trained on the replaced workers behaviours
And likely does the job worse.
I know I do! Last week I tried to overthrow a country with no oil! Egg on my face I tell ya.
I for one think it’s pretty bad ass that humans are able to build sophisticated enough tools to replace “brain” jobs. Not sure how AI is a humanity bad moment unless you are someone with a make-believe job being replaced by AI
Executives are the worst. There are many, many great people in the world, but for some fucking stupid reason we let executives and politicians run roughshod over everyone and everything...
Don't worry, when they hire back their humans they will be paying them 25%+ less after adjusting for inflation.
AI + UBI
A great pairing.
Who doesn't like a great pair?
But they got to fire a lot of people which is their favorite thing to do.
AND it's shit
Hahahahaha their greed knows no bounds and they couldn't help but reach and reach and reach further in until they ruined the one actual selling point they had of AI "replace the slaves cheaper!!" They cried waving their arms around "This is the new thing!!" "You won't have to pay people anymore! Think of the profits!!"
And then they went and fucked it up because of how obscenely and unapologetically greedy they are in every single thing that they do. Hahahahahaha oh god, the irony is almost tangible enough you could put it on a plate and eat it.
Good for us, the actual workers of the world. But wow, they are so greedy they couldn't even replace us all with robots effectively because they just want more and more and more and more and more and...
They don't care, they don't want to be in the writing software business or in the human resources business. Cloud is more expensive but they didn't care because they didn't want to be in the data center business.
Rehire and Replace the CEO with AI 😁
Lol ffs ...
"Greedy pos CEO of ShitCo. thinks they're the only greedy pos CEO. Greedy pos CEO of AIslopCo. drains their accounts."
How long until the AI gains sentience and joins the rest of us on the picket lines?
They'll ask AI what propaganda to tweet when to sow disunion amongst the picketers
Or like in the movie "Her" where the AI's got together and just left the planet lol
AI will never gain sentience, not with current tech and not until we figure out how consciousness actually works.
Eh...
With current tech? No. LLMs are kind of a dead end and will probably never become truly sentient. The LLM will probably end up being just part of a true AGI someday in the future -- the speech center of the AI's brain. Right now, we're chatting with the speech center only, without the rest of the brain, which is why it sucks.
But I don't think figuring out how consciousness actually works is a prerequisite. As we move beyond LLMs and make different permutations of more complex systems, I expect consciousness will spontaneously develop in one, taking us by surprise. Maybe, if we're lucky, seeing that happen will give us new insights into how consciousness works. (Though given how a lot of AI development is already a 'black box', I'm doubting it.) But I really do think we'll accidentally make something with consciousness before we ever understand how consciousness works. Heck, an advanced enough AI might be the first one that actually cracks the consciousness code and is able to describe how it works.
(And, at any rate, I think 'consciousness' is more of a philosophical topic than a scientific one. Is it even possible to develop a scientific 'consciousness test' that could reliably differentiate between a truly conscious being and one that's only pretending to be conscious?)
The tech sector had been over hiring for a decade. The cutbacks were inevitable in any course. Whats funny about it is that by using AI as a standover they are enshittifying their product faster and costing themselves more in the process than if they had just started firing people.
Nonpaywalled version of that article: https://archive.is/HolQ7
Turn off the AI, and rehire people, done.
- CEOs, guaranteed
It's actually crazy how incredibly wrong that is.
What is the CEOs job? To make profit? To select winning products? To chart a long term course?
Nope.
Nope Nope Nope.
Thier job is to increase the value of their outstanding stock. That's it.
Now, given the fact that the stock market is a fucking casino... sure. Making profit is A way to TRY and increase your stock price. Making wise product decisions is A way to do that. This is a Warren Buffet type of CEO.
You also need to "read the room" (the room being investors) understand what they want to hear, and start saying it. No matter how stupid it is. No matter if you know full well it's stupid.
You're bringing an incredible product to market, but the markets are demanding headcount reductions? You start firing people that you desperately need to keep. You're an office supply company and the market is rewarding IT investment? You hire 100 devs to build an app that a team of 5 people could have made and nobody will ever use anyways. It's like that meme of the dude on the assembly line saying "guess we doing X now".
If the whims of investors are convinced using AI is what is valuable, they will spend more on AI than humans for as long as it's the case that the market will reward them for doing so... despite it being objectively inefficient.
You gotta remember that company stock is like a currency they can print at will. As nice as it is to have a profitable business... it's even nicer to have the luxury of being able to just print money.
NORMAN!
NEWMAN!