[mikgp]

> Why can't we have a red-queen's race where non-tech companies are implementing AI, but it's not increasing the total profits of those sectors, just meeting rising customer demands/fighting over the share of existing profits?

But then if this happens - all of the stock market has risen in the promise of AI. If AI eats profits instead of grows them, then the economy shrinks right? So maybe that’s worse? That there is no productivity increase?

[eru]

> If AI eats profits instead of grows them, then the economy shrinks right?

No, why? The economy is bigger than company profits. Eg there's workers' wages and customer surplus and investments etc.

[rurufjcir]

Because companies need earnings growth and they’ll fire workers to meet those targets

[eru]

Firings workers doesn't make earnings grow in general.

And company don't _need_ earnings growth. That's why many companies buy back shares or pay dividends instead of always investing retained earnings.