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  • AI Costs More Than The People It Replaced

    07/03/2026 12:13:46 PM PDT · by george76 · 59 replies
    Forbes ^ | Jul 02, 2026, | Dr Jemma Green
    The tech industry faces a paradoxical crisis: companies are shedding human jobs to invest in AI tools that are currently more costly than the workers they replace. Major players like Uber and Microsoft report exorbitant AI spending, with budgets exhausted rapidly and little correlation to tangible value. This "tokenmaxxing" culture, where AI usage is incentivized over actual productivity, fuels massive waste. Despite widespread layoffs justified by AI reallocation, studies indicate AI is economically viable in only a fraction of roles. The unsustainable model of subsidized AI pricing is unwinding, forcing a market correction. The industry must now shift from indiscriminate...