AI’s productivity theater

🌈 Abstract

The article discusses the issues surrounding the use of AI technology in the workplace, particularly how bosses are being targeted by AI companies to replace human workers with chatbots, and the consequences this has on worker productivity, wages, and well-being.

🙋 Q&A

[01] Grocery Stores and Candy Aisles

1. What did the author learn about grocery stores in New Zealand? The author was delighted to learn that grocery stores in New Zealand had special aisles where all the kids'-eye-level candy had been removed, to minimize nagging from children.

2. Why do countries around the world limit advertising to children? Countries limit advertising to children for two main reasons:

• Kids may not be stupid, but they are inexperienced and gullible
• Kids don't have money of their own, so their path to getting the stuff they see in ads is nagging their parents, which creates a natural constituency to support limits on kids' advertising

[02] Bosses and AI

1. How are bosses similar to toddlers when it comes to AI? Bosses are easily convinced by AI salespeople, just like toddlers are easily convinced by ads for things like Sea Monkey farms. Bosses spend a lot of time thinking about worker productivity and are eager to replace human workers with cheaper, more compliant chatbots, even though the AI often fails to live up to the promises made by the salespeople.

2. What are the key findings from the Upwork Research Institute report on AI-equipped workplaces? The key findings are:

• Working in an AI-equipped workplace is like being the parent of a furious toddler who has bought a million Sea Monkey farms and is now demanding that you make them work
• Bosses respond to workers feeling burned out from AI by doubling down and implementing more intrusive monitoring and "wellness" technologies
• The "productivity paradox" is being resolved as companies find it more profitable to exploit workers through precarity and surveillance than to actually improve efficiency

3. How has the "consumer welfare" approach to antitrust contributed to the current situation? The "consumer welfare" approach to antitrust, which encouraged monopolies as long as they lowered prices for consumers, has allowed companies to suppress wages and worsen worker conditions while passing some of the savings on to customers. This has led to stagnating wages and worsening working conditions, as companies focus more on extracting value from workers and suppliers rather than improving productivity.

[03] The Future of AI and Worker Exploitation

1. How are companies turning on their customers as they run out of ways to squeeze more from workers? As companies exhaust the gains from suppressing worker wages and outsourcing, they are increasingly turning to exploiting their customers as well. This includes using algorithmic surveillance pricing to gouge customers in real-time, as well as providing worse service through chatbots and other AI-powered tools.

2. What do the reports from Goldman Sachs and Sequoia Capital suggest about the future of AI investments? The reports suggest that companies are struggling to figure out how to actually make use of the AI they have invested in, and that investors are starting to question whether AI investments will pay off. This casts doubt on the narrative that AI will be a multi-trillion dollar sector with unlimited growth.