I never heard of any company promising price cuts due to AI and layoffs. Even if they had, I wouldn't have believed it one bit.
this post was submitted on 01 Mar 2024
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When a company saves money they almost never pass it on to the customer. Just a sad reality.
Yeah economics is about "how do I maximize profit and never reduce prices." Then they just lie about how supply and demand works or how productivity increases and mergers will help prices go down. Prices only ever go up.
NO COMPANY WILL WILLINGLY GIVE UP MORE PROFIT.
The way supply and demand works is the thing that forces companies to give up profit is a competing company willing to take a little less profit (and hence undercut prices).
It doesn’t work if there’s no competition, or insufficient competition.
So in other words, it doesnt work in the real world
It does work in the real world. That’s why food doesn’t cost a billion dollars a meal.
That being said, the forced business closures we had a couple years ago definitely consolidated markets, reducing competition and driving prices way up.
Sounds like there is a space for a competitor if anyone with enough capital wants to invest. It's one industry, Michael. How much could it cost, ten million dollars?
That's pretty much it in a nutshell. Anyone with the hundreds of billions of dollars necessary to compete in that space is already there, and doing layoffs.
exactly
economics is a dumb field, we should get rid of it (and the economy)
Shall we drop a few asteroids on the planet while we’re talking about destroying ourselves?
Don't defend economics, you aren't being paid too. All of economic thought is either trivially true or brought to you by someone who has a motivation to lie.
Once the labor force is truly laid off en masses as AI gets better, then competition will force prices lower, dramatically reducing margin for profits. It's the Tendency for the Rate of Profit to Fall, you just have to wait a few years for the full effects.
10-15% cuts are nothing compared to what may come.
You are so very naive
How so? This is basic Marxist analysis.
No no, the value proposition is not that it's cheaper. It's more consistent. 24/7, same output, no sick days or vacation, no own opinion... It does what you tell it, to the T.
The cost is the same and paid by the companies to the ai suppliers. Same as with the medication that cured hepatitis. The pharmaceutical company calculated the total cost of care for a terminal hepC patiënt, and then set the price of the medication to 80% of that.. it's cheaper so we're the good guys.
Corporations will charge what the market will bare.
Haha, saying that it does everything to the T shows how little you have used generative AI, as it seems to hallucinate every now and then or return inconsistent results on more complex prompts.
And the worst part is that the AI is still like a black box and it is extremely difficult to compare the quality of different prompts, as it will return all the time different outputs if you ask it the same thing.
Additionally, I truly believe we are currently in the AI honeymoon period where people have extremely high expectations about the capabilities of the AI and we will soon reach a threshold of what the generative AI can achieve which will be like a awakening for the whole industry.
Just look at the self driving cars who were predicted to show up on the streets and we still don't have a full Level 4 capable car.
It was a hyperbole, but perhaps I should have said "it is good enough for many tasks".
Sure are a customer service rep it might give a customer the occasional refund, or as an HR rep it might award some extra leave. The bottom line is that it does not need to be perfect, humans are not either.
And the honeymoon period, for sure. A lot of people project their wishes on ai, and the selling people are more than happy not to correct them. And as long as Space Karen can get away with selling stuff that has not panned out and race 0 reprecussions.. why wouldn't others do it.
The examples we (the collective we) get from those at the perceived top of our society, is blatant lies, Grift, theft, more lies.. and it pays off! Companies selling AI are no different, there is no downside to over promising and under delivering.
But I stand by the reason why this is not going to bring proces down.
It just means billionaires can do another few victory laps around the Earth in their private jets while the world burns. We need to eliminate them and institute universal basic income
Buy ETFs then
Those extortionate licensing fees are not going to pay themselves!
Are you discovering capitalism now?
As soon as we finish swimming...
Don't you mean price jumps?
In the pockets of investors?
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