Someone Still Has to Buy Your Product
3 hours ago
- The author questions the celebration of AI cost savings, highlighting the loss of income for workers and businesses that used to earn that money.
- AI tools like Claude and Higgsfield can produce marketing videos at a tenth of the time and cost, causing agencies to lose customers.
- AI can now complete tasks that take humans over 16 hours, and this capability is growing exponentially, making traditional cost structures unsustainable.
- AI offers a fraction of the cost of human labor, leading to a multiplier effect where lost revenue impacts the broader economy through decreased spending.
- Freelancers and small businesses in creative and service sectors will be hit hardest, and companies that replace solutions with AI may find their own customers leaving for cheaper alternatives.
- The economy will eventually find a new equilibrium, but many current firms will not survive, and the author warns that those cutting costs may become the ones being cut.