That analysis only makes sense if companies value AI tools as much as equivalent human productivity. Hypothetically say you have a company with 100 junior developers. An AI service comes around that doubles the productivity of your junior developers, so you can keep only 50 of them. Would the company pay 5M dollars a year forever for that service?
In my experience, the answer is a resounding no. They’ll nickel and dime some kind of per-seat licensing on a monthly basis that costs less than 100 USD or whatever. So for every 100$ in salary you can automate away, you might get 2$ in subscription payments if you are lucky, at current rates.
In my experience, the answer is a resounding no. They’ll nickel and dime some kind of per-seat licensing on a monthly basis that costs less than 100 USD or whatever. So for every 100$ in salary you can automate away, you might get 2$ in subscription payments if you are lucky, at current rates.