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by gmt2027
510 days ago
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If AI increases the productivity of a single engineer between 10-100x over the next decade, there will be a seismic shift in the industry and the tech giants will not walk away unscathed. There are coordination costs to organising large amounts of labour. Costs that scale non-linearly as massive inefficiencies are introduced. This ability to scale, provide capital and defer profitability is a moat for big tech and the silicon valley model. If a team of 10 engineers become as productive as a team of 100-1000 today, they will get serious leverage to build products and start companies in domains and niches that are not currently profitable because the middle managers, C-Suite, offices and lawyers are expensive coordination overhead. It is also easier to assemble a team of 10 exceptional and motivated partners than 1000 employees and managers. Another way to think about it is what happens when every engineer can marshal the AI equivalent of $10-100m dollars of labour? My optimistic take is that the profession will reach maturity when we become aware of the shift in the balance of power. There will be more solo engineers and we will see the emergence of software practices like the ones doctors, lawyers and accountants operate. |
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