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Well, if the AI really is that good, what's stopping the AI Company from charging just slightly less then the 90 saved engineers cost?
by mrln 9mo ago
Well, if the AI really is that good, what's stopping the AI Company from charging just slightly less then the 90 saved engineers cost?
- SuboptimalEng 9mo agoThat's a fair point. Model prices can increase. This raises the next question. Doesn't this mean that any company that depends on headcount growth (every SaaS), loses? 100 SWE -> 10 SWE, 100 slack/gmail/notion/zoom/etc. subscriptions become 10. And now let's recurse. These SaaS companies that use AI and dropped 90% of engineering headcount lose revenue because their customers also drop headcount. Let's say AI costs 89% more than it did before, so the SaaS companies still get 10x productivity from the 10 engineers, but now all their customers headcount is 90% smaller too. So what now? Does every company make a pact to grow headcount ;)
- ares623 9mo agoEveryone will adjust pricing to cover losses ad infinitum