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It seems like an absolute dream for corporate execs who don't know anything about development, see a taped-together prototype built in a day, and think to themselves "Wow, we're 90% done... we could almost ship that!!"

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Well, from my experience, if the AI dev is ill intended, he can just say nothing then the exec will go "we can ship now as it is!"

nobody throws a prototype so this will happen

On the counter point, it is so much easier to throw away code that cost nothing to build.

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