The American business model is obsessed with cutting costs to raise profits. Increasing market share and developing new streams of revenue all have an investment cost and take time. Cutting labour has no immediate cost and it makes line go up for the next quarter, and that’s what their compensation packages are dependent on.
That’s why the idea of AI is so attractive to pretty much every CEO, it’s the business hack to reduce labour cost that they’ve been looking for since we outlawed slavery.
The American business model is obsessed with cutting costs to raise profits. Increasing market share and developing new streams of revenue all have an investment cost and take time. Cutting labour has no immediate cost and it makes line go up for the next quarter, and that’s what their compensation packages are dependent on.
That’s why the idea of AI is so attractive to pretty much every CEO, it’s the business hack to reduce labour cost that they’ve been looking for since we outlawed slavery.
i would like to see the day when a PE firm buys ford, GM.