Comment by pier25

2 months ago

If using AI had a "substantial profit or revenue growth" wouldn't it make more sense to hire more people so they can use more AI and increase revenue?

If I can pay a person 100k and the result of hiring them is 1mil in my pocket, I am going to do that every day of the week.

The only reason to fire them would be that I think the money will still end up in my pocket without them.

It depends if your market has room to grow. If it’s saturated it’s just about COGS.

  • If the market had been saturated then there wouldn't have been any (hypothetical) revenue growth which is what the comment above was arguing.

    Personally I don't think there was any revenue growth to begin with. They are spending a lot on AI and haven't seen any ROI but for reasons they prefer to fire people and keep investing on AI.

  • That shouldn't apply to tech where there's generally always more market to capture and competitors looking to offer a better product and take your market share.