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AI investment the only thing keeping the US out of recession (www.theregister.com)
submitted 1 year ago by to c/hardware@lemmy.world
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[–] 9 points 1 year ago (6 children)

it's this the first bubble, where investment is done not due to speculation.

but because we all know we're in a massive financial crisis but they continue to invest in order to pretend it isn't there?

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  • [–] 8 points 1 year ago (5 children)

    I think it's still speculation. They're speculating that the naysayers are wrong and that AI will allow firms to produce a lot more with less people.

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  • [–] 3 points 1 year ago (2 children)

    it has been so obvious that it won't.

    so many major glitches, companies rehiring their programmes.

    it is so obvious that we are in a massive crisis, but investment is still going so they can pretend it isn't

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  • [–] -1 points 1 year ago (1 child)

    Well, yeah, when management is made up of dumbasses, you get this. And I'd argue some 90% of all management is absolute waffles when it comes to making good decisions.

    AI can and does accelerate workloads if used right. It's a tool, not a person replacement. You still need someone who can utilise the right models, research the right approaches and so on.

    What companies need to realise is that AI accelerating things doesn't mean you can cut your workforce by 70-90%, and still keep the same deadlines, but that with the same workforce you can deliver things 3-4 times faster. And faster delivery means new products (let it be a new feature or a truly brand new standalone product) have a lower cost basis even though the same amount of people worked on them, and the quicker cadence means quicker idea-to-profits timeline.

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  • [–] 4 points 1 year ago (1 child)

    Honestly I'm not even sure half of them are speculating. They're just thinking themselves smarter than the others, that they'll be able to ride the wave and exit just when the bubble bursts.

    And I guess that they'll probably manage thanks to having their noses glued to the screens and the bagholders will be pension funds and regular people.

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  • [–] 2 points 1 year ago* (last edited 1 year ago)

    You're probably right, especially for the fattest cats. They will survive and probably prosper as they buy up parts of the economy they don't already on at a discount.

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