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Reistically its because layoffs have a high reputational cost. AI provides an excuse that lets companies do lay offs without suffering the reputation hit. In es
by bawolff 1y ago
Reistically its because layoffs have a high reputational cost. AI provides an excuse that lets companies do lay offs without suffering the reputation hit. In essence AI hype makes layoffs cheaper.
Doesnt really matter if AI actually works or not.
- zelphirkalt 1y agoI would dispute, that there is no reputation cost, when you replace human work with LLMs.
- bawolff 1y agoSure, i don't think its none, just less. It also matters a bit where the reputation cost hits. Layoffs can spook investors because it makes it look like the company is doing poorly. If the reputation hit for ai is to non-investors, then it probably matters less.
- jayd16 1y agoIt's not about consumer reputation, it's about the financial reputation. Slashing headcount can look desperate. AI makes it sound innovative, or at least that's the idea.