3 ms·
Jevons Paradox likely applies here. There could be an initial reduction in jobs, but longer term humans using AI will reduce the cost (increase the efficiency)
by karmakaze 1y ago
Jevons Paradox likely applies here. There could be an initial reduction in jobs, but longer term humans using AI will reduce the cost (increase the efficiency) of those jobs which will increase demand more than merely satisfy it.
Basically any job that uses a word processor, spreadsheet, drawing tool, etc will all become more efficient and if Jevons Paradox applies, demand for those things will increase beyond the reduction due to efficiency gains.
I can imagine that for many fields it will be cheaper to have humans use AI (in the near term) rather than try to make fully automated systems that require no/little supervision.
- pants2 1y agoAgreed - let's say your employees cost $100/yr and your revenue is $150/yr, with a $50/yr profit. Now your employees suddenly become 2X more productive because of AI. Do you... A) Fire half your staff, now earning $100 profit? ($50/yr to employees, $150/yr revenue) B) Attempt to double your business, now earning $200 profit? ($100 emp, $300 rev) C) Double your headcount and earn $400 profit? If companies are profit-seeking, B and C should be more common than A!
- lightbritefight 1y agoFiring people is the number 1 way companies improve short term profits. Since our stock market is based on quarterly results, firing people is absolutely what the business will do. You can watch all the AI layoffs and "not hiring because of AI" in real time, right now.