[bluefirebrand]

> It is, however, making me a bit crazy that the industry's response to (presumed!) increased productivity has been to cut costs rather than invest more broadly and deeply in software

It's almost like they don't actually believe (or care if) it is increasing productivity and are just using it as an excuse to cut costs

[reverius42]

Still doesn't make sense to me then, even ignoring AI -- why are they cutting costs while making record revenues and profits?

[coldtea]

Because they're seeing the writing on the wall - the economic is going to shit.

Their "record revenues and profits" just come from squeezing their customers, already at breaking point, to the max, to just move the needle in the stock market. They know this is not sustainable at all.

[reverius42]

Isn't the assumption of overall economic growth kind of load bearing for capitalism? What happens when the whole economy starts planning for contraction instead?