So, for some context, I work at an accounting company that provides tech services to banks. Really tiring shit but it was the only thing where they didn’t ask you for 100 years of previous experience to enter an entry-level position.
A couple of days ago the CEO came for an annual visit and gave a conference, which was 2 hours of generic corporate crap in the world’s most uncomfortable chairs (the only one that probably benefited from that meeting was the local chiropractor). I’m pretty sure the word “growth” was said at least 20 times, and I’m starting to genuinely hate that word.
The interesting bit is that, at the end, the guy answered some questions that were send beforehand by the employees’ and other bosses. One of them was if he saw the benefits of using AI.
He fucking admitted he did not see those benefits, but then said immediately afterwards that the company had to use it because the competitors were using it.
Thankfully the project I work at is such a mess that they don’t have the time to add AI to the workflow.
Much like an high-up-the-tree manager at IBM once said "we are outsourcing work to india. The competition does it too so it is a good decission "
This is how the whole AI bubble works. There is minimal value in AI but every company currently needs to be seen to be into AI to be perceived as cutting edge and modern.
The sensible counties will just market themselves as being into AI and not spend a penny on stuff they don’t need. The majority of dumb companies are wasting money on AI and getting little for their return.
The AI stock bubble is going to pop as valuations get more and more divorced from reality of revenues and profit. We’re already at the point that Nvidia is valued at $5trillion on revenues $130bn. That revenue is inflated by a rush to stockpile chips for data centres that don’t even exist yet as big tech companies fear being left behind.
Nvidia is massively over valued - it made a profit of 44bn last financial year, that’s a price to earning ratio of 113x. That means the share price is 113x for $1. It’s profits will be up this year but still won’t justify that ratio. And some of it’s deals now are stock and equity swaps to sell goods (such as a recent deal with OpenAI).
The p/e for the stock market fluctuates but 10- 20x is about long term. The nasdaq is on a recent high of market is at 31x, which is a decline from a recent high. Nvidia is at 113x. Madness and this bubble is going to burst. When it does, nvidias order book will disappear, as will it’s share price.
A lot of people are going to get burnt by this bubble.
I’m looking for a job in cybersecurity after being laid off and I had a round of interviews where nobody said ‘AI’. I’m liking that company.
I saw a job ad recently for a cyber security position and the description was all “how do we use AI without leaking patient data, and also do it ethically and train it to replace our workforce… ethically” it was the most insane thing I’ve seen yet and I’m sure an AI wrote it as part of a plan to take over.
“Everyone else is sticking a log into their bike wheels, so we should too!”
Yes! This person gets it.
If someone didn’t put a stick in their spokes they’d have an unfair advantage. It’s only right we do it too.
The benefits are in the stock prices.
I work at an accounting company that provides tech services to banks. Really tiring shit but it was the only thing where they didn’t ask you for 100 years of previous experience to enter an entry-level position.
Unrelated but you’ve got that on your resume. And it sounds interesting field tbh.
Having a hard time figuring out what you do. Are you techs or accounts? Or is the tech a spinoff division of the accounting firm?
I can imagine accounting companies that get brought in as business consultants, then use the opening to upsell technical solutions.
He fucking admitted he did not see those benefits, but then said immediately afterwards that the company had to use it because the competitors were using it.
I just realized the entire Ai bubble - and, by extension, the US economy, and then other linked economies in spill-over - is hoisted up on c-level FOMO.
That’s it? We’re fucked.
Please don’t go to chiropractors.
The benefit is vc funding. It’s not a real thing.
