Fair enough - I'm probably biased because I mostly see small practices (1-3 people) where headcount can't really shrink further. In that context it's about throughput per person. But you're right that in a larger org with a CFO making staffing decisions, the efficiency gains get captured as cost savings rather than more clients served. The 5-to-3 scenario you describe is realistic and happening now.
Sammi|15 days ago
Small teams or individuals that learn to use ai well can outpace larger teams, even if the larger teams also use ai, because communication / coordination overhead grows faster than team size. Tasks that before needed large teams to get done, can now be done by smaller teams.
Large Knowledge work teams have lost their competitive advantage.
I see this as a business opportunity for small actors. Every large knowledge work team that doesn't quickly adapt and downsize itself, is now something you can disrupt as a small team or individual.