AI overleverage - a prediction
It’s really terrible to see executives right now laying people off “because AI”. Yes, an employee can do a lot more than they once could, but I’m guessing that a lot of these companies aren’t really thinking about the systemic and long-term changes they’d need to make this work out well.
It seems to me that AI is creating a new kind of leverage - a leveraging of human capital. And, like precursors to other financial catastrophes in the past, a lot of companies are thoughtlessly over-leveraging their people with AI right now.
So, I’d like to make a prediction: within the next 2 years, a major company (public or otherwise) is going to have a significant, multi-day outage. They may not say it publicly, but it will be due to a dramatic increase in size and complexity of systems (juiced by AI), and not having the people to actually figure out and fix what’s broken, when it does.