The economics of AI explained
Andrew Singleton in AI Economics for Dummies at McSweeney’s Internet Tendency:
Benjamin owns a farm. He employs 100 workers plowing his fields. His total payroll is $10 million/year. One day, he buys a mule, which provides the worker who uses it with a modest 10 percent productivity gain. Benjamin fires 99 of his workers and purchases 99 mules, expecting a 1,000 percent productivity gain. The driverless mules cause plow damage to his property in excess of $50 million. Benjamin loses another $5 million due to the loss of productivity from his one reMayning employee, who no longer guides a plow but instead spends 100 percent of his time shoveling mule shit. Goldman Sachs builds an altar to Benjamin in their lobby and cuts out the heart of a junior analyst on it every Friday. They call it “Blood Sacrifice Friday.” The name isn’t catchy, but the event becomes a management favorite nonetheless.
I try to keep it light on the AI stuff these days, because oh my god it is everywhere and it bores me to death, but this it too good.
Via.