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The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

libertas.software

31–40 of 218 posts

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#31
My pet theory is that AI enables programmers to be relatively more productive than other roles. So, if I want to grow my company, shouldn't I hire MORE programmers? Anyone know a good counterargument?

Along another vein, I guess I wonder with my limited knowledge of economics if the demand for programmers is elastic or inelastic.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#32
post #9

One datacenter rack of NVIDIA Vera Rubin GPUs costs $8 million. That's about the same cost as a team of software engineers. These data centers are not going to pay for themselves.

> One datacenter rack of NVIDIA Vera Rubin GPUs costs $8 million. That's about the same cost as a team of software engineers. How many engineers do you think that can pay for? At 100k/year that's a pretty huge team.

Where are you finding engineers at 100K/yr all-in? Also how many of them will be as good at coding as the models you deploy on the rack?

Also you need both now. It’s not enough to just have humans, and that OpEx needs to come from somewhere.

I’m not happy about it - just the way it is.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#33
post #10

I still think AI is just a cover story for these job cuts. Tech companies are still "rightsizing" after unsustainable growth during the pandemic. At the same time we're clearly headed into a recession. Investors like growth, not shrinkage. Claiming AI is replacing those jobs helps avoid the appearence of shrinkage, while also feeding the AI hype machine that many of these companies have invested heavily into.

Nobody ever knew what the right size was. There was a valve that was opened to allow hiring. And another "bung" that could be unplugged to facilitate firing. The algorithm was to open the valve when times are good/money cheap/greed is good, and opened the bung in other times. Totally decoupled from how many people (and largely what sort of people) are required. AI has changed that mechanism.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#34
post #14

Earlier quoted context omitted.

You must be joking, the vast majority of HN loves AI and thinks they don't need to write any code anymore.

Some people love AI, some don't. But the point about there being nothing new in the article still stands.

I don't see people complaining about the repetition of the dozens of daily topics about how LLMs will replace software engineers.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#35

Cutting people because of AI makes no sense, you know these people are good without AI, you'd want to keep them! Freeze the constant over-hiring instead, and take care of the people you know aren't lobotomized yet, and train them if needed. I'm seeing so much shedding of knowledge workers though, even though AI clearly isn't ready to replace people, just ready to augment them currently, that it looks like looney-tune…

The major issue, is that once people are more productive with AI, you are able to replace people because less of them are required.

You see this in enterprise consulting, wiht the increase in cloud, serverless, SaaS/iPaaS, low code/no code, content generation and translations, followed by AI agent orchestration, the teams can be reduced down to about 1/3 of what they used to be.

It isn't as if there are enough projects around to keep the other 2/3 busy, so eventually when there are enough of those people on bench they have to find something else.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#36
post #13

Earlier quoted context omitted.

On the scale of a company, augmenting is replacing. If a worker plus AI can do the work of two workers without AI (but cheaper), you go for that; and it doesn't matter how good or bad AI is without the human.

The point is if a worker plus AI can do the work of two workers without AI, then why not keep both workers and have them both use AI to have the equivalent of four non-assisted workers?

There's only so much to do and coordination costs (already burdensome) become overwhelming.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#37
post #13

Cutting people because of AI makes no sense, you know these people are good without AI, you'd want to keep them! Freeze the constant over-hiring instead, and take care of the people you know aren't lobotomized yet, and train them if needed. I'm seeing so much shedding of knowledge workers though, even though AI clearly isn't ready to replace people, just ready to augment them currently, that it looks like looney-tune…

On the scale of a company, augmenting is replacing. If a worker plus AI can do the work of two workers without AI (but cheaper), you go for that; and it doesn't matter how good or bad AI is without the human.

I think there are risks:

- AI pricing is variable, probably the cheapest it will ever be right now

- AI produces a lot more shit for humans to review, and you will always need humans. If you don’t focus on keeping things simple you will probably play yourself unless you’re good at separating out blast radiuses.

- I see a lot of super low quality work that doesn’t solve the problem but it’s like look that guy solved the problem in one day! Promote him! Everyone is happy except for the end users who for whatever reason are being totally ignored (whose problem it fails to appropriately solve) and I saw this in accounting software so…hello eventual lawsuits?

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#38
Another bury-your-head-in-the-sand article. It sucks but AI replacing coders is very real. I haven’t coded since last year but I’ve pushed more features at a rate faster than I ever could in my entire career. I pushed new code while chatting on WhatsApp with my friends yesterday using 2 prompts.

“Remove this old feature.” “Are you sure you didn’t break anything?”

That was it. Then I manually tested it to make sure nothing was broken. Then I did a brief review before posting it for code review and then pushed it. What would have taken me probably about 1 day to go through and figure out code changes and then actually change the code took me about 30 seconds.

To think that we need to maintain the post-Covid hiring bloat is nonsense. I’m not so arrogant to think that someone with an llm can’t replace me, if I survive a few more years in this industry I’ll be amazed and grateful.

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#39
post #24

Earlier quoted context omitted.

The point is if a worker plus AI can do the work of two workers without AI, then why not keep both workers and have them both use AI to have the equivalent of four non-assisted workers?

Because the entire structure of the business is designed for approximately the amount of work it currently does and likely has no particular immediate use for twice as much work in most departments.

In 20 years I have never been on a team that didn't have twice as much work as we had people to do it.

Businesses are not magically efficient

Re: The Companies Cutting Headcount for AI Will Lose to the Ones Who Didn't

#40
post #9

One datacenter rack of NVIDIA Vera Rubin GPUs costs $8 million. That's about the same cost as a team of software engineers. These data centers are not going to pay for themselves.

> One datacenter rack of NVIDIA Vera Rubin GPUs costs $8 million. That's about the same cost as a team of software engineers. How many engineers do you think that can pay for? At 100k/year that's a pretty huge team.

A large team at Meta (16 people) would cost the company more than $8m/year. That is all-in cost, including payroll taxes, benefits, etc.
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