So many companies cut their workforce as much as 10-15% citing that those jobs can be fully automated by the use of AI but I am still waiting to see any meaningful price cuts of their products from the said companies, etc.

Otherwise this will mean that they are doing this just to increase their profit margins and please their shareholders and don’t care about their customers or workforce.

  • NateNate60@lemmy.world
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    9 months ago

    Why the hell would they do that when their customers are already willing to pay the current prices?

    Suppose you make widgets at a cost of $50 and sell them online for $100 each. Through the use of AI, you were able to fire half of your employees and now the cost of producing a widget is down to $30, a net saving of $20.

    Why would you choose to lower the price of the widget from $100 to $80 instead of continuing to sell the widget at $100 and pocketing the $20 for yourself? What incentive have you got to reduce your price?

    • drunkosaurus@kbin.social
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      9 months ago

      Exactly. And the same thing will happen when fusion energy is figured out: energy prices remain the same, almost 100% of revenue gets pocketed as profit. “Limitless free energy” my ass.