The argument is that labor depending on LLM’s is dangerous but it makes speculative assumptions that the big AI labs will win.

> Consider large law firms, aka Big Law. Currently certain legal-AI star­tups license LLMs from Big AI and repackage them for Big Law at high prices. These star­tups claim to add other special sauce. OK, sure. Where’s the economic equi­lib­rium? If legal-AI star­tups prove that money can be made selling AI to Big Law—won’t Big AI just sell to Big Law directly, and cut out the star­tups? Or if legal-AI star­tups prove that AI can effec­tively provide legal services—won’t legal-AI star­tups just sell to clients directly, and cut out Big Law? Won’t members of Big Law that adopt AI have to lay off a lot of equity part­ners, because adop­tion of AI will shrink profit margins?

…

> Along these lines, I expect that to succeed finan­cially, Big AI will likely need to demolish a signif­i­cant number of existing tech compa­nies and grab their revenue for itself.

Nobody knows how this will play out. Maybe the legal-AI startups win because they know their market better? They can switch to cheaper providers.