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Cake day: November 19th, 2023

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  • If AI makes you twice as productive, and there’s fewer taxes on spending money for tokens than there is for spending money on salaries, the rational amount for a corporation to spend on it is more than a human’s entire salary, per person working with it.

    Naively assuming corporations approximate rational actors, and AI does measurably improve productivity, this implies a gain of roughly 2% if these employees are earning federal minimum wage, or well below 1% if they earn average software developer wages.

    Maybe their contract deliverables are poorly suited to this use case or something, but if they are given a fixed amount of money to produce some software item, then it makes sense to prioritize productivity per dollar.