alt Hacker NewsIf mainstream corporate America thought it would turn increasingly cheap intelligence into higher revenue growth and higher profit margins, then mainstream corporate America needs to go back to school.
If you want to increase your profit margins, you'll have to innovate! Adopting AI tools that somebody else created, and are equally available to your competitors, won't increase your revenue or margins. The ones who will see increased revenue and profit margins are the ones who actually innovated, by creating the AI.
This is exactly what Apollo reports: the Magnificent Seven increased their profit margins, while mainstream corporate America didn't.
Not really. Like, yes, relative to your competitors. But, if the cost of growing potatoes is ten cents per potato, and then I make something that can produce potatoes for one cent then I'd expect everyone to just have more potatoes. This would drive down the cost of potatoes, because the supply would be saturated eventually, but AI is supposed to just make more of everything. So, if AI works as advertised, then you'd probably expect a brief period of highly increased profit margins (by the consumers of AI) followed by rapid _deflation_ as the value of everyone's dollar increases exponentially. Of course, neither of those things is going to happen, because the AI sales pitch is actually a pyramid scheme, so you get the people at the top raking in cash, while everyone else tries to sucker the next tier of buyers so that they can make their buck.