The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
What it would look like is layoffs from a company without a change in output/productivity. Notably, we’re not at AGI yet, so I wouldn’t expect sci-fi levels of change.
There would necessarily be a lag time between layoffs and unchanged productivity. And even then, if we’re being fair, that’s not conclusive evidence of AI being useful; it could just be that they had more employees than they needed.
My point is more that I’m not sure we’d see an obvious sign that AI was changing the market yet.
Elon Musk is an idiot, and you’ve already noted that the market doesn’t track reality.
The paradigm shifting invention was the transformer (the T in GPT). If you’ll forgive a shitty analogy, it’s like someone invented a microscope and you’re asking why we don’t yet have insulin. Not having insulin doesn’t make the microscope useless.
As far as these things go, AI is improving at a breakneck speed-- hence why so many people in the field are begging for a pause in development. We don’t really understand why this technology works as well as if does, and that has a lot of people worried that we’re going to do something dangerous without understanding what we did.
When they invented the microscope, hey could instantly demonstrate its utility in it’s ability to observe previously invisibly tiny things.
I assure you that 400 some odd years ago, most people would not have grasped the utility in the microscope. Just like many people today don’t understand what the transformer has done for machine learning.
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What it would look like is layoffs from a company without a change in output/productivity. Notably, we’re not at AGI yet, so I wouldn’t expect sci-fi levels of change.
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There would necessarily be a lag time between layoffs and unchanged productivity. And even then, if we’re being fair, that’s not conclusive evidence of AI being useful; it could just be that they had more employees than they needed.
My point is more that I’m not sure we’d see an obvious sign that AI was changing the market yet.
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Elon Musk is an idiot, and you’ve already noted that the market doesn’t track reality.
The paradigm shifting invention was the transformer (the T in GPT). If you’ll forgive a shitty analogy, it’s like someone invented a microscope and you’re asking why we don’t yet have insulin. Not having insulin doesn’t make the microscope useless.
As far as these things go, AI is improving at a breakneck speed-- hence why so many people in the field are begging for a pause in development. We don’t really understand why this technology works as well as if does, and that has a lot of people worried that we’re going to do something dangerous without understanding what we did.
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I assure you that 400 some odd years ago, most people would not have grasped the utility in the microscope. Just like many people today don’t understand what the transformer has done for machine learning.
deleted by creator