@researchfairy
I think this cost analysis is probably best-case for AI.
In addition to what you mentioned:
It doesn't take into account that what they're paying for AI is well below even a break-even price, sustained by a bubble that will eventually pop. Every company paying to us AI is getting a massive discount that cannot be sustained for long.
It doesn't take into account the same sort of downstream costs outsourcing has, what happens when you no longer have local talent or domain knowledge.
It doesn't take into account the currently known issues with AI, much less the costs to fix those mistakes down the line. In addition to hiring actual people to go through the mess and fix mistakes there seems to be a widespread belief that companies can avoid any form of liability by pointing to "the AI did it" which is optimistic at best.
It doesn't take into account the massive amount of power it's drawing, the hardware it's eating up, and the effects THAT has on the economy.
It doesn't take into account the economic costs of unemployment. It doesn't take into account the fact that Ai is basically replacing junior talent which means when all these costs come due, and it takes people to fix them -- they're not going to have them and so will have to pay a hefty premium.
This very much feels like all these tech bros looked at the 90s tech bubble, the 2008 mortgage bubble and the the worst examples of outsourcing and went "What if we did all these at once, but like 10 times as hard?"
And every CEO went "We don't have to pay for labor? HELL YEAH. END OF DISCUSSION"
