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McKinsey wonders how to sell AI apps with no measurable benefits

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Re: McKinsey wonders how to sell AI apps with no measurable benefits

#12

> while quoting an HR executive at a Fortune 100 company griping: "All of these copilots are supposed to make work more efficient with fewer people, but my business leaders are also saying they can't reduce head count yet." I'm surprised McKinsey convinced someone to say the quiet part out loud

How does it make sense to trade one group of labor (human) who are generally loosely connected, having little collective power for another (AI)? What you're really doing isn't making work more "efficient", you're just outsourcing work to another party -- one who you have very little control over. A party that is very well capitalized, who is probably interested in taking more and more of your margin once they figure out how your business works (and that's going to be really easy because you help them train AI models to do your business).

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#13
post #7

What most companies and CEOs fail to grasp is that with all the talk of headcount cuts from AI customers are expecting that AI will LOWER pricing and costs, not raise it. Challenge is that the cost cutting story is mostly vaporware (as many other studies have shown) so CEOs are in a tough spot. They can’t both boast to shareholders at how much cost savings they got from rolling out AI and then charge customers more.…

I can't wait until the AI vendors start charging according to the true costs of their tools (+ profit margin). Let's see what the cost savings are then.

Additionally once the AI vendors have locked these companies to their ecosystem, the enshittification will start and the companies who reduced their headcount to bare minimum will start to see why that was a really, really bad idea.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#14
I hadn't ever tried Notion before but I sort of vaguely understood it was a nice way to make some documentation and wiki type content. I had a need for something like a table that I could filter that I would normally just do in Google Sheets. So I go check out Notion and their entire site is focused on AI. Look at what this agent can do, or that. I signed up and the entire signup flow is also focused on AI. Finally I was able to locate what I thought was their core offering - the wikis etc. And ended up pretty impressed with the features they have for all of that.

Now maybe Notion customers love all these AI features but it was super weird to see that stuff so prominently given my understanding of what the company was all about.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#16

> while quoting an HR executive at a Fortune 100 company griping: "All of these copilots are supposed to make work more efficient with fewer people, but my business leaders are also saying they can't reduce head count yet." I'm surprised McKinsey convinced someone to say the quiet part out loud

I find it all quite strange: - AI companies of course will try and sell you that you can reduce headcount with AI - CEO's will parrot this talking point without ever talking a closer look. - Everyone lower down on the org chart minus the engineers are wondering why the change hasn't started yet. - Meanwhile engineers are ripping their hair out cause they know that AI in it's current state will likely not replace any…

AI is most capable of replacing the humans who have the power to decide or influence the choice to replace humans with AI.

But managers will not obsolete themselves.

So right now AI should be used to monitor and analyze the workforce and find the efficiency that can be achieved with AI.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#17
post #14

I hadn't ever tried Notion before but I sort of vaguely understood it was a nice way to make some documentation and wiki type content. I had a need for something like a table that I could filter that I would normally just do in Google Sheets. So I go check out Notion and their entire site is focused on AI. Look at what this agent can do, or that. I signed up and the entire signup flow is also focused on AI. Finally I…

Just read a single interview by the CEO etc, they are all in on AI

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#18

> while quoting an HR executive at a Fortune 100 company griping: "All of these copilots are supposed to make work more efficient with fewer people, but my business leaders are also saying they can't reduce head count yet." I'm surprised McKinsey convinced someone to say the quiet part out loud

How does it make sense to trade one group of labor (human) who are generally loosely connected, having little collective power for another (AI)? What you're really doing isn't making work more "efficient", you're just outsourcing work to another party -- one who you have very little control over. A party that is very well capitalized, who is probably interested in taking more and more of your margin once they figure…

It’s the same as robots in a factory.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#19
post #14

I hadn't ever tried Notion before but I sort of vaguely understood it was a nice way to make some documentation and wiki type content. I had a need for something like a table that I could filter that I would normally just do in Google Sheets. So I go check out Notion and their entire site is focused on AI. Look at what this agent can do, or that. I signed up and the entire signup flow is also focused on AI. Finally I…

They used to be like a really easy to use collaborative wiki. And I used it for a couple distributed projects and loved that aspect.

But I'm guessing their growth was linear, and hard fought, after initial success over tools like Atlassian's which are annoying and expensive.

So to get back to hypergrowth, they had to stuff AI in every nook and cranny.

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