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cjbgkaghtoday at 1:57 PM1 replyview on HN

I find that productivity follows a Pareto distribution (80:20 rule) and that AI is a sharper tool in that it enables the already productive to be proportionally more productive and this effect increases as the intelligence of AI increases. So 80:20 becomes a 90:10, 95:5, 99:1 etc. I also think that corporate bureaucratic change is laggy so change there will still be rather slow. I think where change will be rapid is when the most productive employees leave the company to create a new smaller company to compete with it, so there will be a displacement of medium to large companies by much smaller ones. On one hand this greater competition of more efficient companies will result in an increased in consumer surplus, on the other hand it will result in mass economic displacement and a collapse of the tax base. I think AI has only recently been good enough to do this and it takes time to spin up competing companies so I wouldn’t expect to see this effect in any lagging indicators just yet. From personal experience, I’m well down the path of commoditizing my niche industry where I can practically give away a better version of the top tier software and still personally make a lot of money. Additionally it would be counter productive to alert my competitors to this new reality. I know I’m not the only person doing this, so this multiplied by a bunch of industries would be absolutely world changing.


Replies

mk89today at 2:36 PM

> so there will be a displacement of medium to large companies by much smaller ones.

There are so many regulations EE companies follow and offer that no startup owner or worker could ever deal with. The moment your company shifts to that sort of work, you're automatically not anymore a startup (by definition).

Only if you get super smart robots that can manage a lot of bureaucracy etc. Starting from multicloud/region deployments, local regulations, accounting, taxes, laws, etc. Which is what companies like SAP (but not only them) do basically.

But if that happens we are all in a situation that we don't need companies anymore (the way we know them).

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