I thought this AI thing was all win/win.
Cisco Systems dropped 12.3% despite likewise topping analysts’ expectations for profit and revenue last quarter. The tech giant indicated that it may make less profit off each $1 of revenue during the current quarter than it did in the past quarter.
More broadly, questions are rising about whether businesses that are spending heavily on AI will end up seeing high-enough profits and productivity to make the investments worth it.
” … questions are rising about whether businesses that are spending heavily on AI will end up seeing high-enough profits and productivity to make the investments worth it.”
Well, here’s hoping. You know, one way ….. or maybe the other?
AI is a scam preying on people who think that they not only can but should replace the human proletariat with machines, just as we replaced horses with automobiles.
I’m pretty sure the moral outrage is that such sociopaths are suffered to keep any of their wealth or power over other human beings—much less openly plot humanity’s annihilation.
I miss the horses.
Stock values? That’s not my most pressing Ai concern. My primary concern is tax revenues. With Ai putting people out of work … becoming dependents not contributors to the tax coffers … and Corporations not increasing revenues and tax remittances … I can foresee a day when my SS pension and my wife’s CALSTRS pension will get whittled away … if not eliminated and we go into the welfare bin.
I can honestly see that coming
Along with ‘wealth’ taxes … turning our golden years into pot metal.
48% of Americans have a job. The unemployment rate is 4.3%.
52% of Americans are voting themselves a raise.
If your wife is on a pension backed by the state of California, I fear you two are out on a limb regardless. CALSTRS has over $100 billion in unfunded liabilities.
But they’re making BANK on their ESG investments … right? That was quite a thing under Obama-1, Obama-2, and Obama-3/Biden, eh?
I hope they’re not invested in the imaginary high-speed train.
Well … thus far … and there are sure to be multiple annual cost overruns … the Brightstar Line segment (East LA to Vegas) of CA’s high speed [sic] rail has collected $6.5B in public funds and another $6B in public loans … to make up about half the current project cost.
https://www.newsweek.com/california-high-speed-rail-tickets-2018428
So … if you’ve invested in Brightstar Lines, or bought the tax exempt Bonds … you’ll “soon” be collecting $120.00 one way fares between (East) LA and Vegas for a projected $1.1B in ticket revenue per year. That math says the Brightstar Rail between (Far East) LA and Vegas will sell 9.16 million tickets per year. Seriously. That’s their economic projection.
If that makes any kind of sense to you whatsoever … then go ALL IN on high speed rail investment … as I am sure CALSTRS and CALPERS have done.
Oh … and don’t worry that Vegas is pricing itself out of a huge chunk of tourism … I’m sure the added cost of $250/per person round trip (sure to inflate much higher) won’t curb tourism to Vegas any further. Psssst … right now the same trip takes about $150/round trip in gasoline in a comfy automobile.
I asked AI if businesses will make money investing in AI and it said … absolutely, but not ALL businesses. There will be some losers. The trick with AI (says AI) is not in the amount of the investment but in the execution.
So be prepared to be executed.
No one can push a rope uphill.
It’s absolutely going to depend on the quality of execution; but that is not unique to AI.
Big 3 automaker EV-related losses:
Stellantis – $26.5 billion
Ford – $32.5 billion
GM – $6 billion
This on a product for which both states and the federal government provided substantial tax incentives.
We should certainly expect some companies to mis-manage AI investments, if for no other reason than the scale of the investments they are making. The proliferation of incompetent managers in large corporations is astounding.
Continued…
Governed by morons.
https://insideevs.com/news/774263/ev-phev-tax-credits-rebates-us-states/
In the first 9 months of just one year (2024) government tax incentives paid relative to EV purchases exceeded $2 billion; so there’s a loss generated by incompetent members of government that is additive to the Big 3 losses described above.