Live data from Hacker News

The AI Replaces Services Myth

aimode.substack.com

11–20 of 60 posts

Re: The AI Replaces Services Myth

#12
post #5
post #3

Earlier quoted context omitted.

Not sure I quite get the point of the article. Sure, you won't capture $100k/year/dev. But if you capture $2k/year/dev, and you replace every dev in the world... that's the goal right?

I don't think the value stacks like that. Hiring 10 low level workers that you can pay 1/10th the salary to replace one higher level worker doesn't work.

Sure it does! Let me just hire 9 women for 1 month...

Re: The AI Replaces Services Myth

#14
Do execs really dream of entirely removing their engineering departments? If this happens then I would expect some seriously large companies to fail in the future. For every good idea an exec has, they have X bad ideas that will cause problems and their engineers save them from those. Conversely an entirely AI engineering team will say "yes sir, right on it" to every request.

Re: The AI Replaces Services Myth

#16
post #2

The title is slightly misleading. What the article is really about is the idea that all of the money that is now paid in wages will somehow be paid to AI companies as AI replaces humans. That idea being muddle-headed. It points out that businesses think of AI as software, and will pay software-level money for AI, not wage-level money. It finishes with the rhetorical question, are you paying $100k/year to an AI compan…

> What the article is really about is the idea that all of the money that is now paid in wages will somehow be paid to AI companies as AI replaces humans.

Is anyone actually claiming this?

Re: The AI Replaces Services Myth

#17

Do execs really dream of entirely removing their engineering departments? If this happens then I would expect some seriously large companies to fail in the future. For every good idea an exec has, they have X bad ideas that will cause problems and their engineers save them from those. Conversely an entirely AI engineering team will say "yes sir, right on it" to every request.

Yes, that is exactly how offshoring and enterprise consulting takes place.

Re: The AI Replaces Services Myth

#19
post #3
post #2

The title is slightly misleading. What the article is really about is the idea that all of the money that is now paid in wages will somehow be paid to AI companies as AI replaces humans. That idea being muddle-headed. It points out that businesses think of AI as software, and will pay software-level money for AI, not wage-level money. It finishes with the rhetorical question, are you paying $100k/year to an AI compan…

Not sure I quite get the point of the article. Sure, you won't capture $100k/year/dev. But if you capture $2k/year/dev, and you replace every dev in the world... that's the goal right?

that $2k won't last long as you will never maintain a margin on a service like that

employee salaries are high because your competitors can't spawn 50000 into existence by pushing a button

competition in the industry will destroy its own margins, and then its own customer base very quickly

soon after followed by the economies of the countries they're present in

the whole thing is a capitalism self destruct button, for entire economies

Post reply on HN