Their goal is to monopolize labor for anything that has to do with i/o on a computer, which is way more than SWE. Its simple, this technology literally cannot create new jobs it simply can cause one engineer (or any worker whos job has to do with computer i/o) to do the work of 3, therefore allowing you to replace workers (and overwork the ones you keep). Companies don't need "more work" half the "features"/"products" that companies produce is already just extra. They can get rid of 1/3-2/3s of their labor and make the same amount of money, why wouldn't they.
ZeroHedge on twitter said the following:
"According to the market, AI will disrupt everything... except labor, which magically will be just fine after millions are laid off."
Its also worth noting that if you can create a business with an LLM, so can everyone else. And sadly everyone has the same ideas, everyone ends up working on the same things causing competition to push margins to nothing. There's nothing special about building with LLMs as anyone can just copy you that has access to the same models and basic thought processes.
This is basic economics. If everyone had an oil well on their property that was affordable to operate the price of oil would be more akin to the price of water.
EDIT: Since people are focusing on my water analogy I mean:
If everyone has easy access to the same powerful LLMs that would just drive down the value you can contribute to the economy to next to nothing. For this reason I don't even think powerful and efficient open source models, which is usually the next counter argument people make, are necessarily a good thing. It strips people of the opportunity for social mobility through meritocratic systems. Just like how your water well isn't going to make your rich or allow you to climb a social ladder, because everyone already has water.
I have never been in an organization where everyone was sitting around, wondering what to do next. If the economy was actually as good as certain government officials claimed to be, we would be hiring people left and right to be able to do three times as much work, not firing.
Last I checked, the tractor and plow are doing a lot more work than 3 farmers, yet we've got more jobs and grow more food.
People will find work to do, whether that means there's tens of thousands of independent contractors, whether that means people migrate into new fields, or whether that means there's tens of multi-trillion dollar companies that would've had 200k engineers each that now only have 50k each and it's basically a net nothing.
People will be fine. There might be big bumps in the road.
Doom is definitely not certain.
So like....every business having electricity? I am not a economist so would love someone smarter than me explain how this is any different than the advent of electricity and how that affected labor.
Its also worth noting that if you can create a business with an LLM, so can everyone else.
One possibility may be that we normalize making bigger, more complex things.
In pre-LLM days, if I whipped up an application in something like 8 hours, it would be a pretty safe assumption that someone else could easily copy it. If it took me more like 40 hours, I still have no serious moat, but fewer people would bother spending 40 hours to copy an existing application. If it took me 100 hours, or 200 hours, fewer and fewer people would bother trying to copy it.
Now, with LLMs... what still takes 40+ hours to build?
> They can get rid of 1/3-2/3s of their labor and make the same amount of money, why wouldn't they.
Competition may encourage companies to keep their labor. For example, in the video game industry, if the competitors of a company start shipping their games to all consoles at once, the company might want to do the same. Or if independent studios start shipping triple A games, a big studio may want to keep their labor to create quintuple A games.
On the other hand, even in an optimistic scenario where labor is still required, the skills required for the jobs might change. And since the AI tools are not mature yet, it is difficult to know which new skills will be useful in ten years from now, and it is even more difficult to start training for those new skills now.
With the help of AI tools, what would a quintuple A game look like? Maybe once we see some companies shipping quintuple A games that have commercial success, we might have some ideas on what new skills could be useful in the video game industry for example.
> Its also worth noting that if you can create a business with an LLM, so can everyone else. And sadly everyone has the same ideas
Yeah, people are going to have to come to terms with the "idea" equivalent of "there are no unique experiences". We're already seeing the bulk move toward the meta SaaS (Shovels as a Service).
The price of oil at the price of water (ecology apart) should be a good thing.
Automation should be, obviously, a good thing, because more is produced with less labor. What it says of ourselves and our politics that so many people (me included) are afraid of it?
In a sane world, we would realize that, in a post-work world, the owner of the robots have all the power, so the robots should be owned in common. The solution is political.
> They can get rid of 1/3-2/3s of their labor and make the same amount of money, why wouldn't they.
Because companies want to make MORE money.
Your hypothetical company is now competing with another company who didn’t opposite, and now they get to market faster, fix bugs faster, add feature faster, and responding to changes in the industry faster. Which results in them making more, while your employ less company is just status quo.
Also. With regards to oil, the consumption of oil increases as it became cheaper. With AI we now have a chance to do projects that simply would have cost way too much to do 10 years ago.
Retail water[1] costs $881/bbl which is 13x the price of Brent crude.
[1] https://www.walmart.com/ip/Aquafina-Purified-Drinking-Water-...
Yeah, but a Stratocaster guitar is available to everybody too, but not everybody’s an Eric Clapton
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> Its also worth noting that if you can create a business with an LLM, so can everyone else. And sadly everyone has the same ideas
Yeah, this is quite thought provoking. If computer code written by LLMs is a commodity, what new businesses does that enable? What can we do cheaply we couldn't do before?
One obvious answer is we can make a lot more custom stuff. Like, why buy Windows and Office when I can just ask claude to write me my own versions instead? Why run a commodity operating system on kiosks? We can make so many more one-off pieces of software.
The fact software has been so expensive to write over the last few decades has forced software developers to think a lot about how to collaborate. We reuse code as much as we can - in shared libraries, common operating systems & APIs, cloud services (eg AWS) and so on. And these solutions all come with downsides - like supply chain attacks, subscription fees and service outages. LLMs can let every project invent its own tree of dependencies. Which is equal parts great and terrifying.
There's that old line that businesses should "commoditise their compliment". If you're amazon, you want package delivery services to be cheap and competitive. If software is the commodity, what is the bespoke value-added service that can sit on top of all that?