[halfcat]

> it allows our margins to be higher and our speed of implementation to be faster

Faster than what? You will be faster than your previous self, just like all of your competitors. Where’s the net gain here? Even if you somehow managed to capture more value for yourself, you’ve stopped providing value to 5-10x that many employees who are no longer employed.

When costs approach zero on a large scale, margins do not increase. Low costs = you’re not paying anyone = your competitors aren’t paying anyone = your customers no longer have money = your revenue follows your costs straight to zero.

Companies that provide physical services can’t scale without hiring. A one-man “crew” isn’t putting a roof on a data center.

I want to be wrong. Tell me why you think any of this is wrong.

[throw1235435]

I don't think you are wrong. I find many tech people/founders excited by AI don't understand end game economics in general. Like kids excited by the new toy starting their new startup they don't see the end game if this all plays out; or they are hopeful that they are the lucky ones.

Generally industries once they become a cheap commodity are at best cost based pricing. If you aren't charging to cost I will go to where it is; especially in a saturated market.

Ironically large corp, instead of tech companies, is probably where the SWE jobs of the future are at. Cost based pricing in cost based centre's. Creating own software with domain knowledge; rather than generic SaaS. Shared platforms will probably still have some value; but the value there isn't from the effort in code - more things like network effects, physical control, regulation, etc. Not an industry to get into anymore IMO -> AI is destroying SWE.

Software was always a means to an end; albeit an expensive way to get there that often paid off anyway at scale. The means is getting cheaper; the end remains.

[jasondigitized]

But they can scale hiring