| ▲ | alex_young an hour ago |
| Why is this time different? Won't super power AI tools allow companies to do more with the same number of people? Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so? If company A decides they just want the same slice of the market they have now and can fire half of their employees and pocket $$$, can't company B hire the same workers and compete harder with these new extra productive workers they hired? Won't the company B tend to capture more of the market and thus survive longer? In nature we say there are no unfilled niches, meaning that if there were space for something to come compete for resources, it would quickly be 'solved' by the motivating factors involved. Not a precise thing, but a good heuristic. US knowledge-worker compensation is around $10T / year. Anthropic and OpenAI have raised (not spent yet, just raised) $317B. That's ~3% of knowledge worker spending in one year alone. What business wouldn't pay 3, 5 or 10% more a year to make their worker productivity increase by larger factors? |
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| ▲ | ekidd an hour ago | parent | next [-] |
| > Why is this time different? If it was just programming being automated, then whatever. Lots of professions have been automated and society adapts. The underlying worry here is that current AI provides a partial automation of intelligence. The endgame for the investors and the corporations using AI is complete automation of intelligence (and manual labor, too). They want a $25,000 robot that works around the clock, and AI models that will do anything a human office worker can do for less money. Now, they don't know how to build either yet. But they'll spend every last dollar on the planet trying. Strictly speaking, they don't even need us as customers. They can just have the robots build them yachts and mansions directly. And act as security guards. |
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| ▲ | daxfohl 5 minutes ago | parent | next [-] | | Reminds me of the old short story "With Folded Hands" front 1947. https://en.wikipedia.org/wiki/With_Folded_Hands_... | |
| ▲ | unsnap_biceps 36 minutes ago | parent | prev | next [-] | | > Strictly speaking, they don't even need us as customers. They can just have the robots build them yachts and mansions directly. And act as security guards. That sounds like we'll devolve into wars over resources so houses can build more war-bots and get more resources.... | | |
| ▲ | neutronicus 20 minutes ago | parent | next [-] | | Once there are like 150,000 humans resources will be functionally unlimited | |
| ▲ | D-Machine 26 minutes ago | parent | prev | next [-] | | > That sounds like we'll devolve into wars over resources Two astronauts meme: "Wait, it's all been over resources?" "Always has been" | |
| ▲ | scoofy 4 minutes ago | parent | prev | next [-] | | I mean, you are describing the vast majority of history. | |
| ▲ | smallmancontrov 32 minutes ago | parent | prev [-] | | Starcraft for Billionaires In the voice of worker-bot: "That's your plan?!?!" |
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| ▲ | coffeemug 26 minutes ago | parent | prev | next [-] | | The future you're describing doesn't seem likely to me because in this event the public will force redistribution through political action. | | |
| ▲ | scarmig 18 minutes ago | parent | next [-] | | "Forcing redistribution" doesn't always happen. Typically, redistribution happens when negotiating leverage has increased such that the beneficiaries of any redistribution can make it more painful to not redistribute than to redistribute. I.e. they have labor power, which can be converted to force if necessary. In a world where capital can substitute for labor, however, that substitution also applies to force-wielding labor. People want to strike because of intolerable working conditions? Send in robot scabs. People want to demonstrate en masse against a regime? Have robot officers police them, and have models identify participants so post-event disincentives can be applied. They want to have a violent uprising? Send in the mass fleet of drones. Ideally, you'd avoid these outcomes entirely by molding the population into ideal consumers and distract them with superficial sports team style conflicts, so they never get to the point where collective action is even conceivable. But they're a useful backstop if those strategies fail. | | | |
| ▲ | asdff 6 minutes ago | parent | prev | next [-] | | How low do we go before that happens? Look at how poor people are in other countries and still aren't threatening their ruling oligarchy at all. And that is going to happen when all we have are what maybe some AR15s, and they have drones firing precision targeted ordinance at us from 50k feet? | |
| ▲ | idiotsecant 19 minutes ago | parent | prev | next [-] | | No they won't, not if they have just enough bread and circuses and someone below them to hate. Boil the frog slowly enough and it'll work out just fine for the capital class. | |
| ▲ | red-iron-pine 16 minutes ago | parent | prev [-] | | hasn't happened in the US yet, and probably won't. and they have all of the guns and trucks and toxic masculinity culture that requires survivalism and toughness and defending muh freedom if the yanks won't, why would the public elsewhere? | | |
| ▲ | fragmede 7 minutes ago | parent [-] | | There are plenty of other countries, with different cultures, and different expectations for how things should work. France for instance, is known for having unions that strike, frequently. Socialism isn't a evil concept in some countries. When America has been co-opted by various factions, why would it be up to the "Yanks" to show the rest of the world the way? |
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| ▲ | nerdsniper 29 minutes ago | parent | prev [-] | | > Strictly speaking, they don't even need us as customers. I think they'd employ some number of humans for entertainment. | | |
| ▲ | danaris 26 minutes ago | parent | next [-] | | At that point, why bother to employ? If we have no recourse, no power to resist them (as must be the case in that scenario), then they might as well just keep us as pets. Or slaves. | |
| ▲ | red-iron-pine 15 minutes ago | parent | prev [-] | | they're already replacing actors with AI, mate. Once the slop machine gets better you won't know the difference |
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| ▲ | dleslie an hour ago | parent | prev | next [-] |
| > Won't super power AI tools allow companies to do more with the same number of people? Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so? It is possible to have excess productivity. AI allows an existing labour pool to rapidly surpass necessary productivity levels for the existing demand. IE, let's say I live in a small town and I open a machine shop. Should I hire every mechanic that walks in the door, forever? No, absolutely not; there is an optimal number of mechanics to hire for the demand for services. If somehow a tool comes to exist that doubles the productivity of mechanics then laying off half the mechanics is next. |
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| ▲ | zozbot234 an hour ago | parent | next [-] | | > It is possible to have excess productivity. The most productive places in the world are also those with the highest incomes and wealth generation. "Excess productivity" is either temporary or a sector-specific phenomenon, it doesn't apply to society as a whole. | |
| ▲ | MVQ93 33 minutes ago | parent | prev | next [-] | | That's not what productivity means. You're thinking about output capacity | |
| ▲ | T-RN-R 41 minutes ago | parent | prev | next [-] | | You can aim to expand your addressable markets. A small town is a small market. Open a second location in a nearby town. Lower profit margins to undercut competition. | |
| ▲ | alex_young an hour ago | parent | prev | next [-] | | The small town constraint is a bit artificial to this problem isn't it? If you operate a machine shop in a large urban area, have competitors, and access to much improved low cost tooling, would you: a) lay off a bunch of workers, or
b) lower your prices and capture more orders? Same thing with accounting firms or marketers or business consultants. | | |
| ▲ | crabbone 15 minutes ago | parent | next [-] | | Well, it's the same problem with all sorts of free-market capitalism and derivatives. They all believe there's infinite "somewhere else" that resources can come from, or the customers, or the funding etc. But reality is very much finite. And so instead of the theoretical equilibrium we get monopolies and collusion to manipulate markets. The article, actually, addresses your claims: > The optimists will tell you this is just productivity gains. The economy has absorbed automation before; agricultural employment collapsed from ninety percent of the American workforce to two percent and civilization continued. David Autor at MIT has shown that roughly sixty percent of today’s jobs didn’t exist in 1940. New technologies create new categories of work. True. But there’s a difference between an observation about the past and a law of nature, and the optimists consistently confuse the two. The agricultural transition took a hundred and forty years. Carl Benedikt Frey at Oxford has documented that the Industrial Revolution took seventy years before wages and employment recovered for the workers it displaced. In the interim, wages stagnated, the labor share of income collapsed, profits surged, inequality skyrocketed, and the political consequences included the Chartist movement and widespread social upheaval. As Frey puts it: “Most economists will acknowledge that technological progress can cause some adjustment problems in the short run. What is rarely noted is that the short run can be a lifetime.” So, the author believes that the problem with your reasoning that it will take a long time for the niches you are talking about to be filled (lifetime, maybe more), meanwhile things will look quite bad for most those involved. I am even less optimistic than the author. The new aspect of this workforce displacement is the centralization. Of course, previous advances in automation also caused a degree of centralization, but AI is posed to become super-centralized if you will. There will be just a handful of suppliers and nobody will be able to challenge them, similar to situation we have with microprocessors today. Needless to say this is absolutely not a healthy situation for the world's economy. | | |
| ▲ | alex_young 4 minutes ago | parent [-] | | I read it, but I don't think it's compelling. "the short run can be a lifetime" is kind of a throw away phrase not backed by evidence. We've seen rapid growth of knowledge work at the same time as increased productivity, and there doesn't seem to be any compelling reason that greater productivity will reverse this persistent trend. |
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| ▲ | convolvatron 19 minutes ago | parent | prev [-] | | the number of functioning machine shop in the US in large urban areas has been plummeting for decades. where there were 50 there are now 3. the customers for machine shops are large production facilities with a need for custom parts. they're all gone. now its little bits of rnd work and some custom architectural design kind of stuff. and the margins are punishing. ok, so machine shops aren't really central to the argument, but the collapse of demand is. | | |
| ▲ | fragmede 3 minutes ago | parent [-] | | Kinda. What's the lead time on my high precision metal part that needs to be cut on a 6-axis lathe? Or a metal 3d print? Neither of those machines are cheap, so not only is lead time astronomical, profit on them is also pretty great for the machine shop. |
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| ▲ | vondur an hour ago | parent | prev | next [-] | | >It is possible to have excess productivity?
Isn't this what happened with the tech hiring during Covid? And also many of the big tech companies were hiring people just to make sure their competitors didn't have them? | |
| ▲ | Jblx2 an hour ago | parent | prev [-] | | Machinists work at a machine shop. |
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| ▲ | xiaoyu2006 an hour ago | parent | prev | next [-] |
| It's not about "this time's different" but rather "the recovery will take too long to an individual" if AI is indeed replacing humans as currently hyped by the model companies. |
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| ▲ | zozbot234 an hour ago | parent | next [-] | | There's no evidence that AI is replacing human jobs to any real extent. We're just seeing AI being blamed for ordinary layoffs that have more to do with broad economic instability. | | | |
| ▲ | Root_Denied 33 minutes ago | parent | prev | next [-] | | This seems a bit like a corollary to "The market can remain irrational longer than you can remain solvent". On the timescales that matter to an individual it won't matter if the eventual conclusion is that AI can't fully replace workers, because companies are going to do their damnedest to try. | |
| ▲ | beepbopboopp an hour ago | parent | prev [-] | | I mean you could have written this article for mechanization word for word, I think the difference is that its coming for the white collar folks this time, who also are the folks writing the think pieces and media. | | |
| ▲ | jonners00 17 minutes ago | parent [-] | | You couldn't have. Mechanical machines couldn't organise themselves into human-free supply chains that are economically productive for the owners of capital. AIs could. |
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| ▲ | idopmstuff an hour ago | parent | prev | next [-] |
| > Why is this time different? That depends if AI gets to the point where it can fully replace workers, as opposed to just augmenting them. I heard Alex Imas on a podcast recently talking about how a SWE can be running 10 agents to be 10x as productive, then that SWE is more valuable so firms should want to hire more SWEs and pay them more. That works for a while, but what if AI gets to the point where it can manage the 10 agents as well as the SWE? Of course you could say the SWE can now manage 10 agents who each manage 10 agents so he's even more valuable, but that has to break down eventually. You don't need 1,000 SWEs each managing 10,000 agents - you hit a bottleneck in the ability to give them work fast enough (even if you need the SWE at the top at all). I think it's easier to think of from the perspective of blue collar labor. It's further out there time-wise, but let's assume we get a humanoid robot that can do any labor a human can do. It costs $25,000 and maybe a couple grand a year to operate. Works 20 hours a day when it's not charging. The construction worker it replaces isn't going to start managing a team of robots construction robots - there's already a GC doing that, and you can't scale building nearly the way you can scale writing code because of physical constraints. When the robot I've described exists, a huge swathe of the population is going to be unemployed. There's no competitor to hire them because the competitors just get robots too. |
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| ▲ | zozbot234 an hour ago | parent | next [-] | | Someone will always have to prompt the AI, it can't just do that on its own. Or rather, maybe it can (you can just prompt it to "kindly do the needful" in a completely unspecific way) but the results won't be any good. | |
| ▲ | treis an hour ago | parent | prev [-] | | >The construction worker it replaces isn't going to start managing a team of robots construction robots Some of them will. You've slashed construction labor cost to 5% of what it was before. With that and a similar reduction throughout the supply chain means we're going to start building a lot more stuff. | | |
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| ▲ | 10xDev an hour ago | parent | prev | next [-] |
| Does every business scale that way? Sure video games for example have only required more people and resources to develop games as the ability to create larger scale games have increased. But does that really apply to accounting? Not a rhetorical question. |
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| ▲ | onlyrealcuzzo 41 minutes ago | parent [-] | | Does it need to? 99% of people used to work on farms. Now they don't. Maybe ~99% of engineers won't write code in the future. They'll do some other engineering like thing... Maybe ~99% of accountant type people won't do accounting things. They'll do some other financial thing... We haven't even seen a rounding error in total unemployment directly attributed to AI, despite people saying the sky fell 24 months ago, and crying that's it's still falling every day since. | | |
| ▲ | 10xDev 20 minutes ago | parent | next [-] | | Whether it "needs to" is its own debate. I'm just pointing out that even with mobile phones becoming dramatically better over the past decade, that hasn't really led to the transformation of mobile apps (outside of games) that take advantage of those resources. If anything, developers have arguably become more lazy and we are seeing lower quality software being deployed because people now have enough RAM even for your 500mb static webpage. Do we really believe people will start becoming more ambitious with AI or will most suffer from skill atrophy and less agency? | |
| ▲ | danaris 16 minutes ago | parent | prev [-] | | But your last sentence is talking about something completely different: the current reality, which most of the tech CEOs and AI boosters refuse to engage with. For those of us in the fact-based world, the idea that AI will replace most human jobs is still just a talking point. It's a future possibility (not a future certainty). But it's enough of a possibility that we need to be talking about it, and not just airily dismissing the concern as something that will obviously work itself out without any real problem. Even if 99% of the current programmers go the way of 99% of people who were farming in 1750, you have to remember that a huge percentage of the farmers who were made redundant by industrialization and modern farming methods fell into destitution; many died penniless. That's not something that seems either wise or compassionate to just handwave away! |
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| ▲ | worldsayshi an hour ago | parent | prev | next [-] |
| I guess it becomes different if instead of hiring more people to do more - all investment goes into more AI credits. Then again, as long as there is more demand and there's a limited supply of compute you can still continue to hire people as well. If we assume that the market has infinite demand for whatever AI + humans can produce together both will have jobs. If demand is limited and compute is plentiful it should make sense for a company to try to have AI do as much of the work as possible. |
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| ▲ | ReptileMan 21 minutes ago | parent | prev | next [-] |
| >Why is this time different? Because the intelligentsia is being bent over. The people that were jolly of the various rust belts of the world decaying. |
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| ▲ | asdff 26 minutes ago | parent | prev | next [-] |
| >Don't you think a smarter way to run a business is to capture more of the market if you have the resources to do so? The market is probably already at the limits of its size in most industries.
Great, you can ship app updates faster. Does that get you more customers? Nope. Is there now more money in the pot for everyone who is more productive to also make more money? Hell no. The pie we are competing for is finite. |
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| ▲ | aleqs 41 minutes ago | parent | prev | next [-] |
| > can't company B hire the same workers and compete harder with these new extra productive workers they hired How much of the current tech world is actually about competing based on innovation/quality/merit? I'd wager not much. The circular big AI deals we're used to seeing now are not a new thing - that shit has been the standard playbook for VCs and their startups for a long time. That being said, I don't see why a bunch of these swampy tech companies could not be easily outcompeted on the tech/product quality side. |
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| ▲ | deaton 31 minutes ago | parent | prev | next [-] |
| The thing is theres no reason to believe that there will be more market available to capture, certainly not in every industry. |
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| ▲ | alterom an hour ago | parent | prev | next [-] |
| >Why is this time different? If only someone wrote an entire article about this, huh. Oh well. I guess we'll never know. /s |
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| ▲ | asdfman123 31 minutes ago | parent | prev [-] |
| Because AI now can do what only humans could do previously: analyze open ended problems and make decisions. There's the horse argument the author touches upon: eventually, technology got to the point where there weren't any profitable reasons to keep a horse. |
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| ▲ | red-iron-pine 14 minutes ago | parent [-] | | "You're on to something! I will decide to delete this entire database, for some reason. Also run this command even through it will brick everything." |
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