- Responsible by ClearOPS
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- Responsible, by ClearOPS
Responsible, by ClearOPS
The $Dollars and Sense of AI
This past weekend, my sister in law told me about a senior in high school who gave an interesting thesis. He interviewed a bunch of people that included a lawyer, a consultant and an engineer. The consultant said that his clients pay him to not use AI. The lawyer is being challenged to bring down the time spent on tasks by using AI. But the engineer? The engineer is taking their output and figuring out how AI can replace them both.
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How much energy AI consumes is a big topic, that I have also written about in past newsletters. This week, though, I heard that the United States is at capacity. I have also heard about how many AI companies, like XAI, OpenAI, Anthropic etc. are building new data centers and encouraging additional investment into the grid. My pessimistic mind goes a little bit towards the Matrix movies, where the computers use humans as their energy resource. In our current reality, the AI companies are literally bankrolling their own energy supply in order to stay in business, continue to thrive and ultimately beat out the competition. And this is clearly a predominant thought process across the world. If everyone is increasing energy supply, what happens to the Earth? The one image that sticks in my mind from that Matrix scene is how the fields of humans destroyed the planet or, put another way, Earth was just a farm, and a human one at that. Seems like the worst outcome possible and one we are racing towards.

The founder of Anthropic has recently stated that AI will cause 10-20% unemployment. Regardless of the wide margin for error in that statement, and let me be clear, I hate this type of fear mongering; however, it has been pointed out to me that these statements tend to appear more frequently when a certain AI company is raising money. Interesting. Apparently that is exactly what Anthropic is doing right now. As I was pondering this more and listening to the All In podcast, they brought up the disruption of manufacturing in terms of job loss. That the effect of manufacturing significantly altered our heavily agricultural economy, taking it indoors. Please stay with me. So, I began thinking about all the other industries and jobs that popped up because of that indoor movement and you know where I went? Aerobic dancing (my mother’s line of work). Without working the fields all day and getting exercise while you work, we began to figure out ways to get exercise during our off hours. It is that sort of tangential effect that progress has. Sure, AI will replace jobs. But what new jobs and industries will it create? And can we please stop using this fear mongering in order to raise more money?
In the Legal AI tech space, I have noticed a very interesting trend. I have been testing two different services, one of which had a very low price to start that is now dramatically increasing (heavily VC backed company). And the other was very, very highly priced and is now starting to come down (they were bootstrapped and then raised two VC rounds within the last 9 months). Eventually, they will be the same price. But it doesn’t stop there. I have also found myself preferring my own custom GPTs on OpenAI’s marketplace over these tools. The output is just that much better (which I applaud myself that it is based on my foundational prompting skills). But, taking a step back, what is happening? Well, I think it might be exactly what everyone predicted. The underlying technology is progressing very quickly and some of these early tools cannot keep up with the technology they tried to wrap themselves around. From a macro perspective, this means many failures in this first “wave” of Generative AI companies. I guess all those laggards who wanted to “see how it all played out before buying” actually were right.
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