Discussion about this post

User's avatar
Charles Hugh Smith's avatar

First off, thank you for the thoughtful comments based on real experiences.

Second, I apologize for being MIA in responding, I haven't had the time to be coherent recently.

Per BJ and ChiChi's comments, it seems one potential source of this systemic problem is obtaining an MBA from an A-List university. The MBA mentality appears to be highly reductive, looking at everything as numbers on a spreadsheet that can be "optimized" in some bloodless fashion. Hence offshoring, etc. I've often mentioned that CEOs and CFOs are just as prone to following fads as the rest of us, with zero experience of the realities. AI is the fad du jour.

This MBA POV overlooks the need to *actually know something about the realities behind the numbers.* I see this everywhere: people toss out fantasy panaceas with zero knowledge of the field experience required. When you object based on real-world factors, everyone's offended.

I think a lot of AI hype follows this model. When I tell an MBA that no robot can do what I can do because my knowledge can't be formalized, they don't get it. They look at a robot dancing or sweeping the floor or running around an Amazon warehouse (all easily formalizable tasks) and they make a leap of fantasy to the certainty that a robot/AI can encounter a new problem-state that's not a close match to anything they've been programmed to do and them solve it. That is a description of most construction/repair work on old structures. There is no way to program "tacit knowledge" because those who acquire it over the decades can't explain it themselves.

I also have to smile at the assumption that all these AI-powered robots are going to work perfectly and be cost-free. Meanwhile, here in the real world, global corporations can't even make simple appliances that function properly for more than a few years, basic vehicle repairs cost thousands of dollars, and yet vastly more complex robots are all gonna work perfectly?

This is one example of many of the fantasy assumptions being made.

I've already written about the vast quantity of bureaucratic BS Work in the economy that AI is supposed to do now, yet few question whether all this data-shuffling and box-checking should be eliminated as needless waste. Instead we're spending hundreds of billions of dollars so AI can do useless work? Is this an "intelligent use of resources"?

As we old hands know, AI has gone through this same cycle of hype and disillusionment a number of times. the AI hype today is truly over the top, over-promising while the actual products are under-performing. This is why Jing Hu's statistics show half of all corporate AI projects are being shelved--the hype over-promised, reality intruded and voila, billions wasted.

The blowback from this disconnect is going to be epic. the disillusionment will eventually reach the Mag 7 and funding will dry up because the profits won't match the promises.

As Jing Hu suggested, corporations will use AI as the cover story for mass layoffs they need to do regardless of whether AI works or not.

the next few years promise to be "interesting." warm regards, charles

Expand full comment
BJ's avatar

Thanks,. That touches on some of the glaring weak points I've mentioned over the last few years. So called "AI" isn't intelligent. BUT, HR types and suits are easy to dazzle with techno babble and buzz words. Most are mid wits at BEST. Which means that all too many will buy into the hype and actually attempt to replace their work force with these flawed tools. If you have read Putts Law you know what comes next... https://www.goodreads.com/book/show/2345523.Putt_s_Law_and_the_Successful_Technocrat

This is much akin to the off shoring craze. One of the dirty little "secrets" that all too many companies and corporations experienced was hiring people from India (among other places) to do tech work. Let us draw a kindly curtain over the resulting horrors... Lets just say that their culture is alien to much of the west, and that many tend to be VERY literal. Make no mistake, some Indians are VERY intelligent and have learned to transcend their culture. But most of those fled India years ago.

Bottom line, many jobs are likely to be lost due to the mid wits in HR, and the dazzled suits attempting to appease the hysterical lemmings in the wall street casinos.

Expand full comment
8 more comments...

No posts