this post was submitted on 25 Oct 2025
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[–] frezik@lemmy.blahaj.zone 11 points 2 months ago (1 children)

How do they reduce costs with AI if not by eliminating jobs?

[–] fonix232@fedia.io -4 points 2 months ago (1 children)

By improving the cadence of projects.

A project costs X amount because of the standard template of pay per time unit Y multiplied by timeframe in time unit Z.

Simply said if you have 100 people working on the project, that costs 100Y per hour. If the project takes 6 months (approx. 960 hours), you multiply the two and get that your costs are 96000Y.

Now the two ways to reduce this is to either reduce the number of employees, with AI you can get rid of maybe 2/3, reducing the expenses to 32000Y....

Or since AI speeds up almost every workflow by about 8 to 10 times, you can keep all the people, but cut down project time from 6 months to about 2 months, which doesn't just reduce the expenses by the same 2/3 but also increases potential profits for the same 6 month period by 200%, as instead of one product you're releasing three.

Cutting jobs ain't the only way to reduce costs with AI.

[–] frezik@lemmy.blahaj.zone 14 points 2 months ago (1 children)

since AI speeds up almost every workflow by about 8 to 10 times

Citation fucking needed.