| ▲ | addaon 3 days ago | |
> AI is improving employee productivity, but that's not leading to more business profit... how does that happen? One trivial way is that the increase of productivity is less than the added cost of the tools. Which suggests that (either due to their own pricing, or just mis-judgement) the AI companies are mis-pricing their tools. If the tool adds $5000 in productivity, it should be priced at $4999, eventually -- the AI companies have every motivation to capture nearly all of the value, but they need to leave something, even if just a penny, for the purchasing company to motivate adoption. If they're pricing at $5001, there's no motivation to use the tool at all; but of course at $4998 they're leaving money on the table. There's no stable equilibrium here where the purchasing companies end up with a /significant/ increase in (productivity - cost of that productivity), of course. | ||
| ▲ | bilbo0s 3 days ago | parent [-] | |
the AI companies are mis-pricing their tools Sounds like the AI companies are not so much mispricing, as the companies using the tools are simply paying wayyy too much for the privilege. As long as the companies keep paying, the AI companies are gonna keep the usage charges as high as possible. (Or at least, at a level as profitable to themselves as possible.) It's unreasonable to expect AI companies to unilaterally lower their prices. | ||