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this post was submitted on 04 Sep 2024
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Are we sure it's cheaper though? I mean it legitimatly might not be. I have some friends who work in tech and they use an AI model for, amongst other things, summarizing information on their internal documentation. They've told me what their company is paying for the license to use this thing, and it's eyewatering. also, uhh last time I checked, the company they got that license from does not turn a profit... so it appears to be too cheap at the moment.
It might really be the case that it isn't cheaper than just paying someone a normal salary to do that work, and it probably isn't cheaper than just jamming the work being done by the AI now back onto preexisting employees (which is what they did before ~2 years ago anyway).
The other thing that makes me feel this might not be unreasonable is that everyone on the team likes the tool, except their manager, who has thrown out the idea to cut it twice now (that I know of).
I've been curious about this too, but haven't been able to find anything that puts a real price (including future profit margin) on GenAI. For example, having a chat conversation with a customer service agent in India might cost about $2-3. Is a GenAI bot truly cheaper than that once you factor in the energy & water costs, hardware, training, profits, etc.? It might be, but I'm skeptical.