| I strongly believe AI will drive efficiency. I’m less certain about whether that’s already happening or will happen in the future and when in the future. However, I’ve already seen a CTO of a F100 company explicitly state that whether AI is driving efficiency or not, the capital investment, and more importantly, the promises of efficiency to investors will mean some people will be let go. Efficiency is output/input. The input is easy to measure. It’s cost and in this particular case salaries. Output is a lot harder to measure, which means it can be fudged easily. So you cut the easily measurable inputs and inflate the easily manipulable output. One could imagine the reverse would also be possible, where you maintain inputs but inflate the output, but there is an asymmetry where investors will reward you for cutting costs even if there are no efficiency advantages that makes cutting inputs more sellable than inflating outputs. |
First and foremost, this is about Oracle. For the short period I worked there, my impression about culture and tech was: mediocre. Not excellent, not poor but just a around average.
Which raises the question: why is it such a successful company commercially? I believe it's being ruthless to customers, employees and suppliers combined with cooking the financials.
Which bring me to your remark about output being difficult to measure. Imho Oracle had been exceptionally good at manipulating and obfuscating their output. And this was true long before AI came to the scene.