AI does much better when you level the playing field
One way they discovered that AI would do significantly better is if you "leveled the playing field". For example, they were giving AI the same exam humans were given, but the AI did it in five minutes whereas the humans were given two hours. Then they decided to allow AI to do more than one "pass through" which means they can check their work, try two or three approaches to solving a problem, etc. When they did that AI immediately scored much higher on the exams. Granted, two hours of compute time is more expensive than two hours of labor for a human. But that is also a fair way to level the playing field, give a human $200 to solve a problem and give the AI $200 of compute time to solve the problem. Generally AI is being used when it is 100x cheaper than humans. Again, if AI can do half the jobs that humans do 100x cheaper, and the other half of the things they do 2x more expensive, wouldn't that also mean they can do 100% of what they can do cheaper?
We are also learning that when you are training AI if you give it more time to solve a problem and let it try many times, evaluating each attempt it can also learn faster and better. couple this with recursive self learning and who knows how quickly it can improve. Already some are predicting AGI in six months (Elon Musk) and many more are predicting we hit this within 2 years.
So how do these companies adapt when AI is improving this rapidly? A hiring freeze only cuts your workforce by 5%. Incentives for early retirement can cut another 5% and layoffs can probably cut another 10%. But there is a much, much faster way for a Fortune 500 company to make the transition. Suppose they invest in a startup that is using AI to do the same work they are doing. They assign workers in their company to act as consultants to help the AI learn. They share the technology so the AI the startup is working with is used in the company to do the tasks. Then at some point the startup is able to replace 80% of the workers. The Fortune 500 company declares bankruptcy, everyone loses their job, but 20% of the workers are hired by the startup. It is a lot quicker, easier, and less liability if you simply declare bankruptcy. It is also easier for them to identify the 20% who are most productive than the 80% they need to layoff and go through all the hassle of documenting why, laying them off, and then dealing with the lawsuits.
One way they discovered that AI would do significantly better is if you "leveled the playing field". For example, they were giving AI the same exam humans were given, but the AI did it in five minutes whereas the humans were given two hours. Then they decided to allow AI to do more than one "pass through" which means they can check their work, try two or three approaches to solving a problem, etc. When they did that AI immediately scored much higher on the exams. Granted, two hours of compute time is more expensive than two hours of labor for a human. But that is also a fair way to level the playing field, give a human $200 to solve a problem and give the AI $200 of compute time to solve the problem. Generally AI is being used when it is 100x cheaper than humans. Again, if AI can do half the jobs that humans do 100x cheaper, and the other half of the things they do 2x more expensive, wouldn't that also mean they can do 100% of what they can do cheaper?
We are also learning that when you are training AI if you give it more time to solve a problem and let it try many times, evaluating each attempt it can also learn faster and better. couple this with recursive self learning and who knows how quickly it can improve. Already some are predicting AGI in six months (Elon Musk) and many more are predicting we hit this within 2 years.
So how do these companies adapt when AI is improving this rapidly? A hiring freeze only cuts your workforce by 5%. Incentives for early retirement can cut another 5% and layoffs can probably cut another 10%. But there is a much, much faster way for a Fortune 500 company to make the transition. Suppose they invest in a startup that is using AI to do the same work they are doing. They assign workers in their company to act as consultants to help the AI learn. They share the technology so the AI the startup is working with is used in the company to do the tasks. Then at some point the startup is able to replace 80% of the workers. The Fortune 500 company declares bankruptcy, everyone loses their job, but 20% of the workers are hired by the startup. It is a lot quicker, easier, and less liability if you simply declare bankruptcy. It is also easier for them to identify the 20% who are most productive than the 80% they need to layoff and go through all the hassle of documenting why, laying them off, and then dealing with the lawsuits.