AI companies will fail. We can salvage something from the wreckage

(theguardian.com)

59 points | by kawera 3 hours ago ago

68 comments

  • whimsicalism 2 hours ago

    It’s funny reading this parallel world that some portion of people have constructed for themselves.

    It has been three years and these tools can do a considerable portion of my day to day work. Salvage the wreckage? Unfortunately I think that many people’s jobs are essentially in the “Coyote running off a cliff but not realizing it yet” phase or soon to be.

    • kuerbel 2 hours ago

      I think this comment is reacting to a different argument than the one the article is actually making.

      The piece isn’t claiming that AI tools are useless or that they don’t materially improve day-to-day work. In fact, it more or less assumes the opposite. The critique is about the economic and organizational story being told around AI, not about whether an individual developer can ship faster today.

      Saying “these tools now do a considerable portion of my work” operates on the micro level of personal productivity. Doctorow is operating on the macro level: how firms reframe human labor as “automation,” push humans into oversight and liability roles, and use exaggerated autonomy claims to justify valuations, layoffs, and cost-cutting.

      Ironically, the “Wile E. Coyote running off a cliff” metaphor aligns more with the article than against it. The whole “reverse centaur” idea is that jobs don’t disappear instantly; they degrade first. People keep running because the system still sort of works, until the ground is gone and the responsibility snaps back onto humans.

      So there’s no contradiction between “this saves me hours a day” and “this is being oversold in ways that will destabilize jobs and business models.” Those two things can be true at the same time. The comment seems to rebut “AI doesn’t work,” which isn’t really the claim being made.

      • whimsicalism an hour ago

        You can read my reply to another comment making a similar point. In short, I think you are giving Doctorow far too much credit - the assumption that these tools are fundamentally incapable is woven throughout the essay, the risk always comes from the fact that managers might think these tools (which are obviously inferior) can do your job. The notion that they can actually do your job is treated as invariable absurd, pie-in-the-sky, bubble thinking, or unmentionable.

        My point is I don’t think a technology that went from chatgpt (cool, useless) to opus-4.5+ in 3 years is obviously being oversold when it says that it can do your entire job beyond being just a useful tool.

        • happy_dog1 an hour ago

          I think we have to be careful when assuming that model capabilities will continue to grow at the same rate they have grown in recent years. It is very well-documented their growth in recent years has been accompanied by an exponential increase in the cost of building these models, see for example (of many examples) [1]. These costs include not just the cost of GPUs but also the cost for reinforcement learning from human feedback (RLHF), which is not cheap either -- there is a reason that SurgeAI has over $1 billion in annual revenue (and ScaleAI was doing quite well before they were purchased by Meta) [2].

          Maybe model capabilities WILL continue to improve rapidly for years to come, in which case, yes, at some point it will be possible to replace most or all white collar workers. In that case you are probably correct.

          The other possibility is that capabilities will plateau at or not far above current levels because squeezing out further performance improvements simply becomes too expensive. In that case Cory Doctorow's argument seems sound. Currently all of these tools need human oversight to work well, and if a human is being paid to review everything generated by the AI, as Doctorow points out, they are effectively functioning as an accountability sink (we blame you when the AI screws up, have fun.)

          I think it's worth bearing in mind that Geoffrey Hinton (infamously) predicted ten years ago that radiologists would all be out of a job in five years, when in fact demand for radiology has increased. He probably based this on some simple extrapolation from the rapid progress in image classification in the early 2010s. If image classification capabilities had continued to improve at that rate, he would probably have been correct.

          [1] https://arxiv.org/html/2405.21015v1 [2] https://en.wikipedia.org/wiki/Surge_AI

        • roxolotl an hour ago

          But Corey isn’t saying it’s oversold he’s saying the value capture by a few companies enabled by AI is dangerous to society.

          • whimsicalism an hour ago

            I do not agree with your reading of the article. The premise - both implicit and stated explicitly throughout the article - is that companies are hyping this up because they want to be seen as growing, that this technology cannot do your job, that these are statistical tools foolishly being used to replace real workers. Look at the bits I quote in my other comment.

            I would have been much more interested in reading the article you’re suggesting.

      • artninja1988 an hour ago

        > The piece isn’t claiming that AI tools are useless or that they don’t materially improve day-to-day work

        Would you call something that could replace your labor "spicy auto complete"? He also evokes nfts and blockchain, for some reason. To me this phrasing makes it sound like he thinks they are damn near useless.

      • sodapopcan 2 hours ago

        > I think this comment is reacting to a different argument than the one the article is actually making.

        The headline.

        • bee_rider an hour ago

          We’re supposed to pretend people read articles instead of just the headline (it is in the posting guidelines). To play along with that rule, people will write as if the poster they are responding to missed some nuance of the article.

          • whimsicalism an hour ago

            I like that you all are having your own little side conversation making fun of me without engaging at all on the substance.

            • sodapopcan 38 minutes ago

              This isn't a conversation, lol.

              I don't have much to offer here (and yes, sorry, after I made my snarky remark I realize you had indeed read the article). I recognize AI's capabilities but mainly don't use it primarily for political reasons but also because I just enjoy writing code. I'll sometimes use up the chatgpt free limit using it as a somewhat better search engine (and it's not always better) but there's no way I'm paying for agents, which is everything to do with where the money is going, not the money itself. Of course there are other reasons outside of how AI is used by programmers that would derail the general theme of these threads.

              I'm just drawn to these threads for the drama and sometimes it triggers me and I write a snarky throwaway comment. If the discussions, and particularly the companies themselves, could shift to actual societal good it can do and how it is concretely getting there, that would hold my attention. Instead we get Sona etc.

            • bee_rider an hour ago

              That’s fair.

              I was accepting sodapopcan’s premise while responding to them. My joke was intended to be aimed at the posting guides and these little Hackernews traditions. But, it was a bit dismissive toward you, which is a little rude. Sorry.

            • an hour ago
              [deleted]
        • zdragnar 2 hours ago

          Ah yes, the notoriously accurate headline.

    • Sharlin 2 hours ago

      I think you’ll find the essay much more nuanced than that. It only incidentally discusses what you’re thinking about.

      > Think of AI software generation: there are plenty of coders who love using AI. Using AI for simple tasks can genuinely make them more efficient and give them more time to do the fun part of coding, namely, solving really gnarly, abstract puzzles. But when you listen to business leaders talk about their AI plans for coders, it’s clear they are not hoping to make some centaurs.

      • kalkin 2 hours ago

        The article does a pretty lazy* job of defending its assumption that "solving really gnarly, abstract puzzles" is going to remain beyond AI capabilities indefinitely, but that is a load-bearing part of the argument and Doctorow does try to substantiate it by dismissing LLMs as next-word predictors. This is a description which is roughly accurate at some level of reduction but has not helped anyone predict the last three years of advances and so seems pretty unlikely to be a helpful guide to the next three years.

        The other argument Doctorow gives for the limits of LLMs is the example of typo-squatting. This isn't an attack that's new to LLMs and, while I don't know if anyone has done a study, I suspect it's already the case in January 2026 that a frontier model is no more susceptible to this than the median human, or perhaps less; certainly in general Claude is less likely to make a typo than I am. There are categories of mistakes it's still more likely to make than me, but the example here is already looking out of date, which isn't promising for the wider argument.

        *to be fair, it's clearly not aimed at a technical audience.

      • whimsicalism 2 hours ago

        I disagree. The article leads with the sentiment that I mention and has it woven throughout. The theme is AI is obviously not capable of doing your job, the problem is that the stupid managerial class will get convinced it is and make things shitty.

        > This is another key to understanding – and thus deflating – the AI bubble. The AI can’t do your job, but an AI salesman can convince your boss to fire you and replace you with an AI that can’t do your job.

        > Now, AI is a statistical inference engine. All it can do is predict what word will come next based on all the words that have been typed in the past. That means that it will “hallucinate” a library called lib.pdf.text.parsing,

        I think it is a convenient, palatable, and obviously comforting lie that lots of people right now are telling themselves.

        To me, all the ‘nuance’ in this article is just because the coyote in Doctorow has begun looking down but still cannot quite believe it. He is still leaning on the same tropes of statistical autocomplete that have been a mainstay of the fingers-in-ears gang for the last 3 years.

        • alpha_squared an hour ago

          You're in half the comment replies with a confrontational tone and, at times, quite aggressively. It does not feel as though you're sincerely engaging, but instead have an ideological world view that makes it difficult to reconcile different perspectives.

          I'm working directly with these tools and have several colleagues who do as well. Our collective anecdotal experience keeps coming back to the conclusion that the tech just isn't where the marketing is on its capabilities. There's probably some value in the tech here, which leads others like yourself to be so completely sold on it, but it's just not materializing that much in my day-to-day outside of creating the most basic code/scaffolding where I then have to go back and fix/correct because there are subtle errors. It's actually hard to tell if my productivity is better because I have to spend time fixing the generated output.

          Maybe it would help to recognize that your experience is not the norm. And if the tech were there, where are the actual profits from selling it? It's increasingly more common for it to be "under development" for selling to consumers or only deployed as a chatbot in scenarios where it's acceptable to be wrong and warnings to verify output yourself.

          • whimsicalism an hour ago

            I’m replying to the people replying to me, which is hopefully permissible? I will respond aggressively to people who say that my work must not be very important or hard if I feel that AI can do a considerable portion of my day to day because I feel like that is initiating rudeness and find that the HN tendency to talk down to people expressing this opinion is chilling important conversations.

            If my other replies come off as aggro, I apologize - I definitely can struggle with moderating tone in comments to reflect how I actually feel.

            > Our collective anecdotal experience keeps coming back to the conclusion that the tech just isn't where the marketing is on its capabilities. There's probably some value in the tech here, which leads others like yourself to be so completely sold on it

            Let me be clear - I am not so completely sold on the current iteration. But I think there has been a significant improvement even since the midpoint of last year, the number of diffs I am returning mostly unedited is sharply increasing, and many people I am talking to are privately telling me they are no longer authoring any code themselves except for minor edits in diffs. Given that this has only been 3 years since chatgpt, really I am just looking at the curve and saying ‘woah.’

          • kalkin an hour ago

            I don't think the commenter to whom you're replying is any more aggressive than, e.g., this one: https://news.ycombinator.com/item?id=46668988

            It's unfortunately the case that even understanding what AI can and cannot do has become a matter of, as you say, "ideological world view". Ideally we'd be able to discuss what's factually true of AI at the beginning of 2026, and what's likely to be true within the next few years, independently of whether the trends are good for most humans or what we ought to do about them. In practice that's become pretty difficult, and the article to which we're all responding does not contribute positively.

    • meroes 2 hours ago

      What masterful framing AI leaders developed that people say, “AI is doing my work”.

      Did other technologies get phrased this way? The accounting software is doing my work? The locomotive is doing my work?

      • whimsicalism 2 hours ago

        yeah it’s all branding. there is totally nothing different about this technology that might cause someone to say that…

        e:tone

        • zdragnar an hour ago

          The technology is different, but we've been told that we'll be replaced by foreign teams for years. It's had some impact, but in all but two of the cases I've personally seen it has been significantly detrimental. In the majority of cases, the offshore team was either replaced or relegated to pointless busy work.

          • whimsicalism an hour ago

            i don’t find that at all a compelling argument, but maybe others will

        • ctoth an hour ago

          Do you not remember the early days of Covid?

          People are really, really, really good at not seeing what they don't want to see.

    • DetectDefect 2 hours ago

      > It has been three years and these tools can do a considerable portion of my day to day work.

      Is this really something you want to have proudly said? Because it makes it sound like your "work" is not very important.

      • whimsicalism 2 hours ago

        My work involves reading papers, doing high level math, coding it, reasoning about the business environment, etc. etc. My work is important and I find the classic HN impulse to stigmatize people for saying this to be silly.

        It is you who is the fool if you haven’t managed to use these things to massively accelerate what you can do and if you cannot see the clear trend. Again, it has been three years since chatgpt came out.

        • DetectDefect 2 hours ago

          So the work is important and I am the fool because ... you think so? That is not a very intellectually-defensible position to hold. One could even reason the argument is so flawed because LLMs degrade thinking capacity.

          • whimsicalism 2 hours ago

            You’re arguing in a tautological fashion - anyone who suggests that AI can do a lot of their job must not have been doing important work in the first place. It’s a convenient psychological self defense mechanism that I see often here. Take care.

            • an hour ago
              [deleted]
        • hamdingers an hour ago

          > My work involves reading papers

          And yet you did not read this essay, or at least did not understand it.

          Whatever LLM you used to summarize it has let you down. I wonder how often that is happening in your day to day work, perhaps that's why you feel your job is at risk.

          • whimsicalism an hour ago

            I am commenting on something in the background space of assumptions of the essay. Just because it is not the main thrust doesn’t mean I didnt read the article or used an LLM to summarize it for me. Take care

            • hamdingers an hour ago

              > I am addressing an argument I know I can win, not the one the author made.

              Great. Good faith all around. Take care.

        • fzeroracer 2 hours ago

          > My work involves reading papers, doing high level math, coding it, reasoning about the business environment, etc. etc. My work is important and I find the classic HN impulse to stigmatize people for saying this to be silly.

          This is what every person who's been laid off by AI says. Every single time. People really like to assume that the work they do is important, except companies don't care about important they care about pushing shit out the door, faster and cheaper. Your high level math and business reasoning do not matter when they can just let someone cheaper go wild and deliver faster with no guard rails.

          • whimsicalism 2 hours ago

            My job is essentially delivering faster with no guard rails. I know it is a common HN sentiment that nobody can do my job better than me because I am the most thoughtful person to ever do it.

            This is explicitly not what I am saying given that I am leading with AI getting close to being able to do much of what is currently my job. I find it hard to imagine a world where we stagnate right where we are and it takes a decade to do anything more aka I cannot imagine a world where a considerable portion of jobs are not automatable soon - and I do not even think it will be shittier.

    • an0malous 2 hours ago

      What is your day to day work?

    • widowlark an hour ago

      Nothing AI can do replaces the important part of my work.

    • widowlark an hour ago

      If your job can be done with AI, why should your employer still pay you? Let us know what the title is so we can work to outmode your career

    • ninkendo 2 hours ago

      > It has been three years and these tools can do a considerable portion of my day to day work.

      Agreed.

      > Unfortunately I think that many people’s jobs are essentially in the “Coyote running off a cliff but not realizing it yet” phase or soon to be.

      Eh… some people maybe. But history shows nearly every time a tool makes people more efficient, we get more jobs, not less. Jevon’s paradox and all that: https://en.wikipedia.org/wiki/Jevons_paradox

    • kalkin 2 hours ago

      > AI is a statistical inference engine. All it can do is predict what word will come next based on all the words that have been typed in the past.

      If we keep saying this hard enough over and over, maybe model capabilities will stop advancing.

      Hey, there's even a causal story here! A million variations of this cope enter the pretraining data, the model decides the assistant character it's supposed to be playing really is dumb, human triumph follows. It's not _crazier_ than Roko's Basilisk.

      • prmoustache 2 hours ago

        > AI is a statistical inference engine. All it can do is predict what word will come next based on all the words that have been typed in the past.

        Ironically, that is also how humans "think" 99.9% of the time.

    • 2 hours ago
      [deleted]
    • IAmGraydon an hour ago

      You didn’t read the article. Why comment?

  • ahachete 2 hours ago

    There's a fundamental disconnect: OP refers to senior engineers being replaced with AI, whereas the evidence and logical reasoning points much more to junior engineers being replaced by AI. And that premise seems like a quite plausible one...

    • NitpickLawyer an hour ago

      I think the junior thing started ~24, early ~25. Because back then the level of the current models was at or above that level, with somewhat flaky reliability. In the past year that's changed. We are now at "mostly reliable" in any junior-level stuff, and "surprisingly capable, maybe still needs some hand-holding" at advanced / senior-level stuff. And somewhat super-human if the problem is easily verifiable in a feedback loop (see the atcoder stuff).

  • winstonwinston 18 minutes ago

    The race to the bottom of software quality accelerates using AI to generate software. Based on my experience using Claude for software development.

  • dayofthedaleks 2 hours ago

    Maybe worth noting in the title this is from Cory Doctorow.

    https://archive.is/ctuVG

    • jader201 an hour ago

      HN rarely (never?) attributes authors in the titles of articles.

      Why should we make an exception in this case?

  • baron816 an hour ago

    It’s so strange to see people accusing tech companies of using AI to concentrate power and wealth when thus far, AI has almost entirely been all consumer surplus. You have crazily high competition in the industry that allows you the consumer to use SOTA models for free, or even run them yourself.

    My prediction is that this will keep going all the way to the AGI stage. Someone will release (or leak) an AGI capable model that’s able to design AI chips, as well as the Fabs needed to build them, as well as robots to build and operate the Fabs and robot factories and raw material mines and refineries.

    • Eggpants 25 minutes ago

      OpenAI and Microsoft have defined AGI as a revenue number so yeah maybe using that definition.

      I believe AGI will require the ability to self tune its own Neutral network coefficients which the current tech cannot do because I can’t deduce it’s own errors. Oh sorry “hallucinations”. Developing brains learn from both pain and verbal feedback (no, not food!) etc.

      It’s an interesting problem where just telling a LLM model it’s wrong is not enough to adjust Billions of parameters with.

  • pessimizer an hour ago

    They're so obviously going to fail, but in a good way. The idea is that they were going to get the world addicted then raise the prices, but the reality is that there's going to be a race for the bottom in pricing because none of them are significantly better than the others. They don't own anything, it's just math; they can be undercut by an OSS bomb from China at any given moment.

    Even worse, they've bet against the math not advancing. If it gets significantly more power-efficient, which literally could happen tomorrow if the right paper goes up on arxiv, maybe a 10 year old laptop could give "good enough" results. All those data centers are now trash and your companies are now worth a negative trillion dollars.

    I think all of these factors are completely independent of whether AI works or not, or how well it works. Personally, I don't care if it replaces programmers: get another job. I just have experienced it, and it is at this point mediocre.

    Of course I am not using the bleeding edge, and I am not privy to the top secret insider stuff which may well be orders of magnitude better. But if they've got it, why would they keep it a secret when people are desperate to give them money? If they're hiding it, it's something that they know that somebody could analyze and knock off, and then it's a race for the bottom again.

    In a race for the bottom, we all win. Except the people and economies who bet their lives on it being a race to the top.

  • stephc_int13 33 minutes ago

    How ironic would it be if the AI productivity miracle ends up being negative growth because of the cost of cleaning up of slop?

  • jongjong 2 hours ago

    It's disappointing how so many people blame AI for our problems. I see this pattern over and over; people never blame the socio-economic system and blame technology instead. Technological improvement is the only thing which allows us to survive the social, cultural and moral decline that we've been experiencing. People blame tech because it allows the system to be highly inefficient and still hold together. But if people blame tech, root issues will not be addressed.

    • kuerbel 2 hours ago

      I don’t think the article is blaming AI as a technology. It’s criticizing how the current socio-economic system uses AI.

      The argument isn’t “tech is the problem,” but that autonomy narratives are used to shift risk, degrade labor, and justify valuations without real system-level productivity gains. That’s a critique of incentives and power structures, not of technological progress itself.

      In that sense, “don’t blame tech, blame the system” is very close to the article’s point, not opposed to it.

    • DetectDefect 2 hours ago

      It is pretty plain to see technology enables socio-economic disharmony, to say the least. While it may not be the "cause" it is certainly a potent accelerant.

    • Avicebron 2 hours ago

      > But if people blame tech, root issues will not be addressed.

      Agreed. I think people would be open to suggestions if you have actionable ways to improve the current socio-economic system.

      • hackable_sand 2 hours ago

        If it involves work then no, people are not open to suggestions.

        • an hour ago
          [deleted]
    • thundergolfer an hour ago

      The first 500+ words of this article are focused almost exclusively on the dynamics of corporate capitalism, not AI.

      Read the article.

    • sodapopcan an hour ago

      Well it's kinda both. One step towards socio-economic change would be if everyone just stopped giving billionaires upwards of $200/month, and didn't have their companies give it to them on their behalf.

    • ares623 an hour ago

      I think technology has always been a tool to impose will over others. Computing was just such a unique kind of technology where, for a decently long time, only a subset of people knew how to use it, and that subset didn’t have existing wealth and power (or not enough). It’s taken upto now for the ones with real power to catch up, or a mix of the ones who didn’t now have real power. And they will use technology for what it ultimately is for, to impose their will on others.

    • netsharc 2 hours ago

      How to fix the human/society instead? Technology has enabled a lot of evil: the society that had guns came and colonized the society without, and made them slaves (here's the opening to argue that Genghis Khan managed to enslave many societies without guns). The rise of the Internet and online shopping ruined "main street shops". "Uber for ___" enabled the exploitative gig-economy with retirement meaning dropping dead...

      Yeah, we're back to feudal lords having the power to control society, they can even easily buy governments... Seems like the problem is with neo-liberalist capitalism, without any controls coming from the society (i.e. democractically elected governments) it will maximize exploitation.

    • SideburnsOfDoom an hour ago

      > people never blame the socio-economic system and blame technology instead.

      If by "people" you mean "Cory Doctorow, the author of the article", then you really don't know anything about their work.

      For example, he coined the term "enshitifacation" and talks often about the "enshitogenic policy environment" that gives rise to it.

  • baron816 2 hours ago

    > Start with monopolies: tech companies are gigantic and they don’t compete, they just take over whole sectors, either on their own or in cartels.

    >Google and Meta control the ad market. Google and Apple control the mobile market,

    “Tech companies are monopolies”, proceeds to describe how tech companies compete with each other.

    • hippo22 2 hours ago

      A market with only two players isn't much of a market.

      • NitpickLawyer an hour ago

        TBF on the LLM side we currently have 4 big players, and a bunch of smaller ones. Plus a healthy bunch of open models, lagging ~1y behind SotA. The best thing for us consumers is that it stays this way. Any of them winning would be bad in general.

      • ares623 an hour ago

        Or nowadays, any number of players.

        Now that market data is made available by brokers and decisions can be colluded based on such data.

    • hamdingers an hour ago

      > or in cartels