Companies rein in AI usage as costs strain budgets
1–10 of 112 posts
Re: Companies rein in AI usage as costs strain budgets
#2Companies are learning that even with mass layoffs, AI isn't worth what it costs for most use cases. This is an important inflection point because none of the AI companies are profitable, i.e. they're all still charging substantially less than what it costs to actually deliver the service. With things in that intermediate state, it's hard to know what a future stable state will be like.
Re: Companies rein in AI usage as costs strain budgets
#3We're in a dangerous valley where AI is _just_ good enough to fool some otherwise very smart people. Similar to the old adage of "a little bit of information is a dangerous thing." Lots of CEOs got duped into thinking that model capabilities were far ahead of where they actually were. I'm actually not sure if we're going to get out of the valley without figuring out a surefire way to reliably evaluate these things.
Re: Companies rein in AI usage as costs strain budgets
#4I genuinely have no idea how some of these companies got so far over their skis on AI. It simply does not make sense to me.
Re: Companies rein in AI usage as costs strain budgets
#5I genuinely have no idea how some of these companies got so far over their skis on AI. It simply does not make sense to me.
They believed and were financially incentivized to embrace the hype and operationalized it because technical leadership thought rapid PoCs would apply to the rest of the tech stack.
Re: Companies rein in AI usage as costs strain budgets
#6Re: Companies rein in AI usage as costs strain budgets
#7Does anyone know the inside story of some of these AI adoptions that have been downsized? The company I’m at has only only recently gotten an enterprise license.
Re: Companies rein in AI usage as costs strain budgets
#8I genuinely have no idea how some of these companies got so far over their skis on AI. It simply does not make sense to me.
Once you realize most execs are literal sociopaths driven by pure greed and power a lot of things start to make sense. Of course for simple minded folks like us none of it is remotely understandable
Re: Companies rein in AI usage as costs strain budgets
#9If your choices are “reduce productivity, make money” or “increase productivity, but still make the same money”, why would you ever choose the latter?
The thing about option 1 is that you still have “potential productivity” that you can tap into during critical times, where as in option 2, employees have already used up the “potential productivity” doing god knows what with AI, and you can’t push them more without breaking.
Re: Companies rein in AI usage as costs strain budgets
#10Corporate AI will likely go on prem where costs can be fixed.