I think this is where one of the biggest gains in productivity from AI will come from. Even if it levels off at current levels of “intelligence” a 30% reduction in team size will save alot of communication overhead.

We think of productivity as linear to the number of employees, but it’s more of Log(N) for knowledge work because of the communication overhead. If your AI spend and employee productivity improvement ends up being proportional to headcount thats a linear gain that used to be Log(N).

The drivers behind the asymptotic scaling are the tasks that can't be compartmentalized into prompts, the same tasks that couldn't be compartmentalized into a request for another person to do.