Wednesday, September 03, 2025

The AI Bubble Gets Bigger

Some people say were are in an AI bubble, with many billions being invested with no clear monetary return. P. Greenspun estimates that if AI power consumption continues at its present rate, it will exceed the Sun's generation in 43 years.

Here is a new Stanford study:

First, we find substantial declines in employment for early-career workers in occupations most exposed to AI, such as software development and customer support.

• Second, we show that economy-wide employment continues to grow, but employment growth for young workers has been stagnant.

• Third, entry-level employment has declined in applications of AI that automate work, with muted effects for those that augment it.

It is worse in Canada:
Canada's tech job market has gone from boom to bust in a matter of years, a new study says.
Canada has been radically importing Third World workers, and now they are being replaced by AI.

I believe that AI really is transforming the economy, but mostly in ways that are difficult to measure. Millions of jobs will be replaced or eliminated.

1 comment:

CFT said...

Humanity needs to think long and hard far more often, not less.
AI promises to make the world a wonderful place by humanity just stepping back and taking it easy. This is tantamount to letting someone else diet and exercise in the hopes you will get healthy and lose weight.

If thinking is too much of a struggle and effort for folks, folks are gonna learn the really hard way what happens when the king suddenly realizes he actually DOESN'T need the peasants anymore.