mginszt

> IT investments don't appear to increase overall productivity. In truth, IT is benefiting the firms that invest in it, but it is taking away from those firm's competitors yielding no net gain. As Erik Brynjolfsson puts it, "IT rearranges the shares of the pie without making it any bigger."

The theorem presented on this site strikes me as extraordinarily bold, yet it seems to rely on sparse and selectively chosen evidence. I cant' wrap my head around how could the `automation` not increase the `productivity`.

Likewise, I don’t understand how a company could capture a larger share of the market without, in some meaningful sense, becoming more productive.

I'm sure giants like Microsoft would like to add more AI capabilities, and I'm also sure they would like to avoid running them on their own servers.

Another thing is that I wouldn’t expect LLMs to be free forever. One day, CEOs will decide that everyone has become accustomed to them - and that will be the first day of a subscription-based model and the last day of AI companies reporting financial losses.