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XenophileJKO | 7 days ago

I keep seeing the "Productivity Paradox" highlighted over an over again. I think one thing people are missing with this specific technology is that unlike many of the comparisons (computers, internet, broadband, etc), AI in particular doesn't have a high requirement at the consumer side. Everyone already has everything they need to use it.

There will be a period like we are in now where dramatic capability gain (like recent coding gains) take a while for people to adapt to, however, I think the change will be much faster. Even the speed of uptake in coding tools over the last 3 months has been faster than I predicted. I think we'll see other shifts like this in different sectors where it changes almost over a series of a few months.

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afavour|7 days ago

> AI in particular doesn't have a high requirement at the consumer side. Everyone already has everything they need to use it.

That isn’t actually true though, right now everyone has a hard dependency on a cloud service. That is currently sold to them at deep discount by companies that are losing billions.

When the market eventually corrects it’ll be interesting to see how much AI ends up costing. At the very least it will be comparable to the broadband internet connection you mentioned. Possibly a whole lot more.

slg|7 days ago

>That isn’t actually true though, right now everyone has a hard dependency on a cloud service. That is currently sold to them at deep discount by companies that are losing billions.

Isn't that a huge red flag? If customers are being given this product at a discount and it still isn't showing a positive ROI for them, what makes people think it will improve once we're charged full price?

BobbyJo|7 days ago

Is it actually being sold at a steep discount? Anthropic CEO has stated they have high margins on inference, so training is the big cost center.

fooster|7 days ago

>That is currently sold to them at deep discount by companies that are losing billions.

They're not losing billions on inference, they're losing billions in the arms race of training.

fallinditch|7 days ago

At the large insurance company I'm doing some work for the big capability gains have yet to materialize. There are some pockets of workflow innovation but big institutions can carry a kind of inertia and are slow to adapt.

But as the organization slowly learns and adapts I'm sure the capability gains will materialize.

sifar|7 days ago

> AI in particular doesn't have a high requirement at the consumer side

Effective use of these AI tools need high critical thinking skills which are in short supply.