Comment by willchis

I've recently come to the thought that the reason why I find AI so snake-oily is because it isn't solving the bottlenecks of the use-cases it is being applied to.

The problem with customer service was never the frontline support agents but rather that these frontline agents are not empowered to solve the problems they encounter. I once had a human agent admit to me I was wrongly charged but they could not refund me on the spot because of protocol. Replace that agent with the smartest model and it still wouldn't have improved that interaction! (Of course, the business saves money if the AI costs a fraction of a human agent's salary.)

I'll take a shot in the dark and bet there was always an obscure/poorly documented way to solve your problem and that the AI could just find it in its playbook faster; it's search after all! It's also not inconceivable to go as far as to wager that a _human agent_ would just have been as effective; maybe the protocol to do it wasn't some obscure procedure for customer support.

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That said, this is why I'm in disbelief that AI is bringing in as much value to the table as claimed. I realized that in software, it was never shipping the code that was the bottleneck to profit. I could be the mythical 10x productive engineer but all my output is still gonna be gated by things like testing of all sorts, customer acquisition, product development and design. Testing and product dev you could maybe automate but only after putting in considerable legwork yourself.

And of course, shipping 10x more features does not mean you'll get 10x more profit, not even that you'll get 10x more customers.

I have a friend working for an international law firm which has recently made a big push for responsible AI use. (I won't say which firm but the first partner name has to do with croissants and they recently organized an internal AI congress in Spain.) So, they are paying for AI subscriptions but I sincerely wonder if that's adding to their bottom line since their profit is bottlenecked by (a) how much billable hours they can account for and (b) the judicial process which famously moves at a glacial pace.

It's just a pattern I repeatedly notice when I look closer into things. And of course, as we all know, the cost of AI services today is still heavily subsidized by VC money. When that money is gone, I worry we'll be stuck with _expensive_ AI-centric workflows that's not really adding value to the business.

it really depends on if it can do useful actions, and both you and the company can reasonably trust that it will actually do the right thing