this post was submitted on 19 Feb 2026
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[–] NekoKoneko@lemmy.world 7 points 1 day ago* (last edited 1 day ago) (1 children)

The alternative prediction is that this is in fact sustainable and AI companies will in fact have revenue to keep the bubble inflated for a lot longer, just in the worst way - by extracting the value of human-created reliability and trust from the market:

CEOs have also bought into AI almost to a person, and are using it to replace workers, results be damned. AI can't do the things they believe it can, but to them, if they can fake satisfying a need with AI for $5, that is preferable to actually satisfying a need with a real employee for $10.

The CEO is happy because his company saved $5 and he's met his stock option incentive target, the AI companies are happy to pocket that $5 instead of the employee getting $10. Maybe they even raise the customer's price to $12 as AI rent-seeking starts rising, and both companies get $6 each. Win-win, life will go on, just worse for everyone else.

[–] northernlights@lemmy.today 5 points 1 day ago (1 children)

CEOs have also bought into AI almost to a person, and are using it to replace workers, results be damned. AI can’t do the things they believe it can, but to them, if they can fake satisfying a need with AI for $5, that is preferable to actually satisfying a need with a real employee for $10.

Yep that's exactly how me and my entire team were laid off. "Automatization".

[–] NekoKoneko@lemmy.world 2 points 1 day ago (1 children)

I'm sorry. Recently laid off myself and management avoided directly saying AI was the reason, but other statements (C-suite talking about whether AI can do other work months before the layoffs, in front of me) convince me that was the reasoning.

[–] northernlights@lemmy.today 4 points 23 hours ago

Yeah for us it was "return to office". Entire team was remote and has been the 9 years I worked there.