[lanthissa]

AI is the first technology that doesn't incentivize offshoring, and incentivizes co-location of talent.

A NYC dev and a dev in india have the same ai costs, based the ratio tokens/salary it becomes less of comparative disadvantage to be in NYC.

Now combine that with the fact that AI makes the act of generating code less a % time of the job, and the ability to get/refine requirements more of the job and you have a decent shift.

[fbrncci]

The tokens/salary ratio is not relevant at all. Because while 200-500$ is a lot of money, it’s still a fraction of the salary you’d pay any dev in the world. It just comes out as a tooling expense. It also matters how those devs use the tools; you can’t assume everyone gets the same out of it. So that amount can last a day or it can last a month. I would say a dev in a developing nation would be more budget aware than someone being used to everything being priced in NYC rates.

For example I build other AI products and I have been hyper aware of the token spend of our users. I was going crazy seeing that some users were having 5$ conversations. So that was optimized and I found ways to use sub agents to get it down to 1-2$. Just for management asking me why I was worrying to begin with? The users using these are consultants being paid 120$ per hour. They have a daily 10-20$ token expense, no problem. “But amazing job on the cost reduction.”.. well 5$ for me is what I spend on food daily. While the consultant is slamming: “yes” 10 times in a chat , for whatever reason for the same cost. Would the NYC dev care as much natively? No.

You can still hire three devs in India for the price of a dev in NYC. Now you give them AI and you might only need 1-2. That makes offshoring even more appealing, not less. And the dev in India now having tooling to out compete local talent. Well that’s my reality (I am not in India though).

[Sammi]

Errr you just responded to someone that is offshore and is using AI to be much cheaper than local talent.