CEOs who think AI replaces their employees are just bad CEOs

https://www.techdirt.com/2026/06/09/ceos-who-think-ai-replaces-their-employees-are-just-bad-ceos/

by speckx • 1 month ago

844 309 1 month ago

A custom-built AI would be pretty good at replacing a CEO. Think of all the things a company could do if they reduced overhead by that much?

grim_io• 1 month ago

You can get a lot of tokens for a CEO. I'd say it's worth a try.

JTbane• 1 month ago

You don't need custom built anything, ChatGPT could generate corporate initiatives and PR statements all day and no one would notice.

ottoflux• 1 month ago

100% been saying this for a while now. the main thing AI will be able to replace is a C suite.

mmmm22• 1 month ago

The hallucinations would be a feature in this case.

vjvjvjvjghv2• 1 month ago

I still remember when I used ChatGPT the first time to write an email. I thought to myself “Oh. This sounds like 99% of the corporate communication from above”. We were joking that corporate had BossGPT for years and just didn’t tell anybody.

It also made me realize that most the so called “creatives” in marketing and PR also just repeat variations of the same few templates. Not much real creativity there.

m463• 1 month ago

and people actully MIND if your CEO is a liar.

But AI is expected to lie^H^H^H hallucinate

lawn• 1 month ago

Our CEO bragged about him "just building stuff" now (vibe coding) while outsourcing his other tasks to AI.

I don't think that's the flex he thinks it is.

Terr_• 1 month ago

Robotics aren't there yet, it needs to go on golf playdates with investors and board members.

mmmm22• 1 month ago

Maybe a virtual / Zoom agent could allow the elderly investor to stay in the game. When you get too old to go golfing you can still stay in the game.

hoppp• 1 month ago

I am building a project now and then will create an AI to manage it and be the CEO.

The code is human + AI, the management is only AI

phyzix5761• 1 month ago

Who takes responsibility when the AI does something unethical or illegal? Do we put the computer in jail? Or do we just look the other way like we do with human CEOs?

rrauenza• 1 month ago

Remember the printer in Office Space?

stvltvs• 1 month ago

It sounds like you already know the answer.

surgical_fire• 1 month ago

lol CEOs in jail.

celdon25• 1 month ago

I think Grok on x.com is a reasonable case study. There’s the stuff we heard about and then there’s a separate category of things that weren’t newsworthy, and only the newsworthy things prompted changes to be made.

watwut• 1 month ago

To be fair here, CEO dont take responsibility and dont go to jail. In rare case they do, they will be pardoned.

vineyardmike• 1 month ago

While I agree that AIs would do a good job…

Would you rather take instructions from a ruthless robot or ruthless flesh sack?

vitally3643• 1 month ago

The flesh sack is choosing to be an insufferable twat, and the robot either doesn't have any choice or has a decent statistical justification for what it does.

yoyohello13• 1 month ago

Weirdly enough, I'd take the robot. At least we can pretend the robot doesn't know any better. The human is actively choosing to be a dick and profiting off it.

ungreased06753• 1 month ago

A robot with access to all of the company data and mediocre decision making wouldn’t be terrible.

dijksterhuis• 1 month ago

https://replaceyourboss.ai

(discussed 6 months ago https://news.ycombinator.com/item?id=46072002)

ozgrakkurt• 1 month ago

AI means mediocre. Mediocre companies are pretty bad to work in. So it would guarantee a soulless and pointless company imo

ungreased06753• 1 month ago

My charitable word would be average. AI means average. And an average CEO isn’t that bad. It’d be a deliberate trade in exchange for less spending on salaries. (just one very large salary)

nobodyandproud• 1 month ago

I posited that one as a question.

Naive and stupid, but it was downvoted and flagged away into oblivion with zero chance for a conversation.

manicennui• 1 month ago

It's pretty disappointing that people on this site of all places have no idea what CEOs do. Many of them are certainly overpaid, and like any other profession, many are not good at their jobs, but they aren't sitting around drafting memos and coming up with deciding who to fire all day.

bluefirebrand4• 1 month ago

I would never accuse CEOs of sitting around drafting memos or daydreaming about who to fire

They're too busy playing golf

dartharva4• 1 month ago

I reckon such AIs are already in place, but by proxy. There must be CEOs somewhere who have completely offloaded what meagre amount of thinking they needed to do to some bespoke AI setup while they LARP around convincing people they are the one running things.

misano4• 1 month ago

A common misconception about AI is that it is intended to fully replace humans, which is incorrect. The purpose of AI is to reduce the need for human labor, and it has already been doing so. For example—though this is not an exact figure—a task that previously required 15 people might now only need 10. In no instance has the human element been completely replaced; rather, the reliance on manual labor has simply been reduced.

pavel_lishin• 1 month ago

though this is not an exact figure

You mean, this is an entirely made-up figure.

sbarre2• 1 month ago

So what if it is? The example still stands.

A "unit of work" that required X people to complete in Y time can now be done by X/Z people in Y time, where Z is whatever efficiency you are able to get out of applying AI tooling to your business.

For some companies, Z might be less than 1 though. ;-)

So you still need skilled people, just not the same amount as before, because you have different tools available to you.

This has happened before with other advancements in industrial/technological automation. It's not a new concept.

nitwit005• 1 month ago

It's not exactly a misconception, when companies are pitching AI as a full and complete replacement for human employees. People are just reading the billboards on the side of the road.

armada651• 1 month ago

I always found advertisements for AI to be so strange, why would you advertise your AI to the public as a danger for humanity that will also put everyone out of work? Such advertising would only appeal to sociopaths, but of course that's because it's intended to appeal to CEOs.

yCombLinks• 1 month ago

That sounds like 5 humans got replaced by AI. I don't think most people worry about whether all humans will be replaced, simply whether or not they will be replaced, or people they care about.

trio84532• 1 month ago

Which is very short sighted. You or anyone close to you might not be replaced but it should be clear that you don't want to live in a society with 20% unemployment.

jjk1663• 1 month ago

Or all 15 people are still employed doing the work of 22.5. Or even more people have been hired now that each person can generate 50% more value than they previously could. Or people are reallocated from the AI assisted task to another. Or some combination thereof.

figers2• 1 month ago

You'd think we would see a large spike in unemployment if AI was reducing the number of employees needed for jobs the way these CEO talk about AI replacing people...

misano4• 1 month ago

In a free market, there are many competitors, new startups, companies and teams may be created, but the general trend is that fewer people are needed to produce a product as productivity increases. A few years ago, a programmer would look for a front-end programmer and vice versa, but now it is not an obvious issue because they can almost work full stack for their small projects.

ChrisArchitect• 1 month ago

Previously:

Tech CEOs are apparently suffering from AI psychosis

https://news.ycombinator.com/item?id=48295679

I believe there are entire companies right now under AI psychosis

https://news.ycombinator.com/item?id=48153379

everdrive4• 1 month ago

There are a lot of bad CEOs, though. It's a lot like a politician -- it's quite difficult to become a CEO, and the skills to make it to that position don't always intersect nicely with the skills necessary to actually do the job well.

willio58• 1 month ago

CEOs do get there with lots of politics in almost all cases. It’s all about who’s ass you kiss and who’s ass you don’t and if you’re lucky with timing things might just fall into place.

I think it’s exceedingly rare that a CEO is actually competent at their job. In most cases it’s the labor class propping the company up, and in some cases the workers are doing so against the wishes of the CEO. Not that executives want to ruin the company, they’re just incompetent and therefore make terrible decisions constantly.

Henchman212• 1 month ago

You’re making the case for worker-owned cooperatives. Love it — we need more of them!

jimbokun10• 1 month ago

Knowing which ass to kiss at the right time is an important skill not everyone has.

jandrewrogers• 1 month ago

I’ve worked with CEOs in multiple large companies. I wouldn’t wish that job on my worst enemy. Nonetheless, someone needs to do that job and the intersection of difficulty and masochism is beyond what most people can do or endure. Many people try and fail. Their job, at the end of the day, is to eat an endless stream of shit sandwiches with a smile and a plan.

Much of the “competency” of a CEO in practice is to be able to accept the relentless drama and abuse without turning into an emotional wreck. Yeah, they have to make decisions, but that isn’t the part that makes the job difficult. That role takes an insane toll on the human spirit, and very few can do it for any length of time.

The cush job is often being CEO adjacent. You get most of the perks but also avoid most of the emotional abuse and drama.

zerobees• 1 month ago

It’s all about who’s ass you kiss and who’s ass you don’t ... I think it’s exceedingly rare that a CEO is actually competent at their job.

But... that is kinda the job? CEOs are, first and foremost, the public face of the company. They're the one who talk to VCs / banks, regulators, major customers, the press. They're very highly paid PR reps / fall guys that shield everyone else, including the board of directors and all the VPs and SVPs, if something goes wrong.

For most companies, especially large companies, it's not important for a CEO to be good with software engineering, business development, etc. That, at least in principle, can be handled by other parts of the hierarchy.

matwood2• 1 month ago

CEOs do get there with lots of politics in almost all cases.

I know this can be hard for engineers to sometimes accept, but relationships (aka politics) are a key part of business. Rarely is one technical solution absolutely superior to another, making purchasing decisions come down to relationships.

Politics is also about compromise and managing a bunch of differing opinions/desires, which is one of the key skills of a CEO.

dandanua• 1 month ago

So, we live in the economy where everything is done by labour that receive minimal acceptable wages, while all the profits are collected by the ruling class who do nothing except constantly kissing each other asses.

eks391• 1 month ago

I personally know a lot of people (n>15) who are the CEOs of their own companies (ignoring unsuccessful ones). If I broke these into a couple groups, I mostly still see competent, hard working people:

Group 1: company stays small, like a ma & pa shop or small service, with few employees. This is a mixed bag of really hard working individuals and scumbags. The scummy ones aren't breaking any laws or doing anything nefarious, they just found a financial opportunity and shoved themselves in as a middleman and just subcontract out everything and do literally nothing except sit to the side and collect a paycheck.

Group 2: large company, making a name for themselves with hundreds of employees. I only know one guy who meets this category, and he is incredibly talented and hard working

Group 3: wildly successful, international company. Again I only know one guy, so I can't generalize, but he is super lazy. I think this is what y'all are referring to when y'all are hating on CEOs. To give him some slack, he was hard working when we met, and he actually made numerous companies, but this one exploded and now he lives in luxury. He hasn't lost his moral compass, but he doesn't really needs to work hard anymore either.

I should caveat that all of these folks who I know built their company. They weren't hired into one and fought their way to the top with politics or anything. Maybe I surround myself with ambitious people rather than politically toxic people, because otherwise I think it is odd that every single one of the many CEOs I know built their company, rather than getting the seat in a different way.

dominotw2• 1 month ago

what about zukerberg he didnt have to do any politics to get to ceo. yet he is the face of ai layoffs and bad ceo.

orphea2• 1 month ago

What about him?

  have to do politics -> bad ceo

doesn't mean

  NOT(have to do politics) -> NOT(bad ceo)

SpicyLemonZest5• 1 month ago

He's the face of bad CEOs because people like to make up things about how bad he is. The Social Network, a major 2010 biopic about the early days of Facebook, famously cut his college sweetheart and now-wife out of the story in favor of a fabricated character arc involving an ex-girlfriend who does not exist.

jimbokun10• 1 month ago

The Winkelvoss twins would beg to differ.

dijit• 1 month ago

it's quite difficult to become a CEO

on the contrary, it seems to be one of the few jobs that seems to require absolutely no qualifications to have.

What you need to do to be CEO is.... convince someone to lend you money in the hope that you'll get it back to them.

I've worked under some absolutely awful people who wouldn't pass an interview anywhere, but somehow they're CEOs, because they can smarm there way into more money consistently.

Hoasi• 1 month ago

To be fair, raising money takes a certain skill, that few people possess; and in many cases, it’s essential for a startup to even exist.

jongjong• 1 month ago

Often, they are good at taking things, keeping things, misdirecting and setting boundaries (especially communication boundaries). They are good at keeping their positions.

This is a broad range of skills and to actually be a CEO, you need to really hone these skills and be among the very top. To be good at those, just enough to qualify for a modest CEO role at a small start-up, you generally don't have the time to be good at anything else.

Saying that you don't need any skills is mischaracterizing it. You don't need any value-creating skills, yes, but you need significant value-capturing skills.

I can imagine a world were all companies become empty of workers and only executives remain and they would just have meetings with each other while they starve and would explain it away as a new diet they're on. There would be no petrol and they would be forced to walk to work and would say that it's their new fitness routine... And they would all believe each other.

slg• 1 month ago

convince someone to lend you money in the hope that you'll get it back to them

And it should be noted that many of these people lending money are in a similar situation of not being required to have any qualifications. Sure, some of them have worked their way up through sound investment after sound investment, but many of them were either born into their position or simply got lucky at some point along the way. Just think of all the money investors threw away pursuing crypto and NFTs for example. Many of those investments were transparently stupid from day 1.

59nadir2• 1 month ago

It's not difficult at all to become one, and the work involved in being a CEO is not particularly difficult in comparison to senior technical work at all. The only thing that is harder about being a CEO is the responsibility. I'm sure being the CEO of Microsoft or whatever is plenty difficult and demanding in many ways, but most CEOs are not that, and speaking just from experience most CEOs and CTOs are clueless morons.

With that said, I've been programming for 25 years and I've only been a CEO for 3, so take what I said with a pinch of salt.

I do think people overestimate titles like this a lot, though, and it really comes down to what the company actually does and what is demanding for that company at that position/role. The CTO of a some-bullshit-as-a-service company may as well be straight out of college, because they're likely doing something trivial that literally anyone (including LLMs) could put together. The CTO of a well-used and reliable streaming service that handles a meaningful part of the world's Internet traffic is obviously solving a more interesting and demanding problem, and their decisions are going to be more important.

everdrive4• 1 month ago

It's difficult in the sense that it's rare and much of it is out of your hands. That's a very different kind of difficulty than honing a technical skill. I'm happy to call it something other than difficult, but most of those engineers would not succeed in becoming CEOs -- whether or not they would actually do a good job at it.

firefax3• 1 month ago

What skills? I've met several.

Most of them got into a prestigious school on legacy, paid for by wealthy parents. Many were above average IQ, but by no means geniuses. They had access to computers earlier than others, due to said affluence. They seem unable or unwilling to comprehend they're overwhelmingly on average, "nepo babies" to steal a term from the world of entertainment.

cm112• 1 month ago

I think it's private schools in general. Even those from second and third tier ones, which can filter more by means than the elite ones, find themselves atop companies. It's the natural access and the natural ability to socialize with other private school personalities. Their definition of capable leader is a particular type of leader. They can make and take jokes, but particular types of jokes. They hide each other's shortcomings, insecurities, guilt whereas people from other backgrounds, even people they like and think highly of, tend to serve as a mirror.

Getting funding is a value add, but I agree calling it "skill" misses most of what makes someone "good" at it. We've built things to overwhelmingly rely on funding gated by other private school people though. It would be nice if we could have that person with access pitching without them also being in charge of running a company, product development, or managing people. But then it would require the same of the investors. The investors would then need to evaluate products and ideas and markets. And the markets would have to reward that. Things would need to be different.

everdrive4• 1 month ago

Quite frankly speaking and acting as if you are from the upper crust is itself a criteria for success. It might be fine to say that this is not a skill, but people can definitely tell and they select for it.

I spent most of my time in government, and I was quite shocked in private industry how enthusiastically nearly everyone had taken to the class divide. It was a bit like A Brave New World. Even when resenting it, the lower class totally bought into the mythos of the upper class. It was very clear I would never be an executive at my company, but at the same time, my particular company was riddled with incompetent and corrupt executives.

I didn't feel or sound like one of them, and I refused to lie or bullshit. And every one of them could tell, and it forever marked me as an outsider.

elzbardico4• 1 month ago

Years of ZIRP, QE, bailouts and stymulus money muddled the waters a lot. Add to this the Old Boys (and Girls now) Networks, a culture that values getting money fast as the ultimate value, the prevalence of politics and you end up getting a boatload of bad CEOs.

There was a time when I used to recommend "Out of the Crisis", a book from Demming, to business leaders.

Problem is, "Out of the crisis" still assumes as a premise that companies compete on the quality of their products, that making money comes from actually making and selling stuff. That leaders are not the anti-intelectual morons that believe that absolutely any thing can be explained with a 15 minutes deck, that math and statistics are passtimes for weird geeks that don't add "business value" and because of that, is a book that could have steered us toward a better world in the 80s, but now it is completely useless, because its recipes can't handle the level of degradation things goto into.

ChiperSoft• 1 month ago

it's quite difficult to become a CEO

It literally just requires filing an LLC or Corporation. There are several SaaS companies that will do it for you.

seydor• 1 month ago

What about employees who think AI replaces their CEO

Fordec• 1 month ago

Upper management material written all over them.

saadn92• 1 month ago

It’s hilarious to me that when you stop investing in juniors and seniors who use your AIs retire, what are they going to do then?

glitchc• 1 month ago

Who wants to be CEO for that long? The company will be sold off to a larger conglomerate long before that happens.

Waterluvian• 1 month ago

Get your state governor to go on tv and ask for people who know how to program Cobalt.

moregrist• 1 month ago

You bring in contractors.

Ideally contractors that benefit you personally (eg: your buddy who now owes you one), but definitely contractors that let you outsource the responsibility.

Even better if you get some management consultant to suggest the idea and/or do the subcontracting.

Definitely buys you a few quarters of bonus and some time to land your next gig.

AngryData• 1 month ago

Complain how nobody wants to work and/or blame foreigners. The usual.

jmyeet• 1 month ago

The primary product of AI is labor displacement and consequently wage supression. This is what OpenAI and Anthropic are really selling. It didn't start with AI but AI is accelerating it.

This is what layoffs have been about since the pandemic. People in fear of losing their jobs do extra unpaid work and aren't asking for raises. The theoretical potential of AI gives companies the excuse to fire more people. The investment itself is directly used as a reason of why they need to cut back on labor.

Any sufficiently sized business can only feed the insatiable hunger for ever-increasing profits ultimately by cutting costs and raising prices. And what do we have now? High inflation and a decline in real wages. CEOs are just following this playbook.

And the result is that society is bouldering towards collapse. We're seeing the first hints of this with the youth unemployment crisis [1][2][3].

Also, who is going to buy anything when nobody has any money?

[1] https://www.americanprogress.org/article/americas-10-million...

[2] https://www.brookings.edu/articles/twelve-ways-to-fix-the-yo...

[3] https://www.bbc.com/news/articles/cy026x9jpd0o

thewebguyd3• 1 month ago

Also, who is going to buy anything when nobody has any money?

This assumes that a mass consumer economy is necessary, when it isn't. Mass consumption is relatively new, for most of history economies functioned with just a small consuming elite and large underclass that consumed very little. We are already approaching that again in the states given that the top 10% of earners are already responsible for nearly half of all consumer spending.

There's a floor even in a mostly automated economy where some services are resistant to automation simply because the human element is the product. Luxury hospitality, personal care, etc. That billionaire is going to want a human masseuse, not a robot.

A highly automated economy could stabilize like this with a small elite population consuming luxury goods & services, served by a low-wage economic underclass human workforce.

Its certainly not a pleasant society, but its also not unsustainable given enough oppression or pacification (bread and circuses anyone?)

geraneum2• 1 month ago

Care to share some sources that corroborate any of these claims and explains how the dots connect?

dominotw2• 1 month ago

it necessary for ceos doing layoffs. i thought thats context we are talking about.

ChrisMarshallNY11• 1 month ago

Reminds me of the old joke "90% of the code is 90% of the work. The last 10% of the code is the other 90% of the work."

I have spent almost my entire adult life (since 1986) shipping products. One of the very first things that I learned, was that "shipping" > "designing".

There's so much work in delivering products that will carry your brand, and then must be supported.

I liken it to having children. Conceiving them is fun. Delivering them is painful. Raising them, is a lifetime of work.

In my experience, the same type of thing applies to products that we ship (and charge money for).

pknomad• 1 month ago

I like this analogy; raising children well like delivering products well pays dividends. They’re less likely to cause problems and if they do, they tend to be smaller in scope.

socketcluster2• 1 month ago

Fully agree. Shipping a complete product with a functioning user acquisition funnel is much harder. It's like; you have to build the whole product first with lots of features and then you have to try to create a highly condensed overview of all those features to expose them all on the landing page.

If you can't make the visitor understand your entire complex product in 10 seconds, then you've lost them.

Your product has to be complex because that's where the software market is at. All of the low-hanging fruits have been taken by the time you identify them. Sure, someone will find a way to make money using new low-hanging fruits that arise due to technological changes but it's not going to be you. You probably don't have the business connections to make that work.

tauserfunnel3• 1 month ago

I hate to use a throwaway, but this bit:

with a functioning user acquisition funnel

How do you actually get this. I've got a product, the site is hand crafted, shows the complex product really well (and had good feedback on it) but how do I acquire the users?

It seems as the cost of creating software has plummeted, it's the actual sales side of it that's going to matter even more. I'm stuck at this point.

cornholio• 1 month ago

I'm not entirely sure how that dismisses the CEO's putative argument: they go big on AI precisely because shipping end-to-end is hard, so they think they shouldn't waste resources on tasks that can be automated.

The structure of a good argument would be something like: certain tasks are fundamentally human and impossible to automate (which and why?) and by pushing AI use beyond what is optimal you are actually hurting your employees ability to do those hard parts.

A weaker but still useful argument is that most everything can probably be automated, but frontier models aren't there yet.

mullingitover2• 1 month ago

Conceiving them is fun. Delivering them is painful. Raising them, is a lifetime of work.

Then there's the technical debt!

Shipping is frankly the easy part. It's the operating overhead that often breaks you.

I liken it to free puppies.

lokar2• 1 month ago

Every line of code is a liability

ChrisMarshallNY11• 1 month ago

This is true.

I have always prided myself on writing concise, high-Quality code, because it tends to be quite debt-free.

So far, LLMs seem to deliver code with "Louie Da Loan Shark"-levels of tech debt.

himata4113• 1 month ago

now it's closer to 95% of work can be done by AI and requires 5% mental effort, but 5% of the work requires 95% of the mental effort to finish because of all the unoptimial decisions AI has taken. I find that AI works best in small micro-service type architecture where each component has a clear goal and doesn't have interconnected parts within the same application that can break. But you do run into an issue where changes in microservice a need changes in microservice b and updating it is not ideal since it usually cascades thru the entire system or requires stacks of legacy support.

lokar2• 1 month ago

IME it’s possible to have good clear APIs, limited scopes/goals, etc in a normal (macro?) service. But it requires a level of discipline and process many teams are unwilling to engage in.

stasomatic2• 1 month ago

I skimmed the article, guilty, but I think what I got from it is that CEOs will CEO? No disrespect meant, I’ve seen your name here often and thoroughly enjoy the folklore that you share, but I don’t understand what context you reacted to. Cheers.

ChrisMarshallNY11• 1 month ago

The context that they think that shipping is simple. Shipping (what you need all those annoying peons for) is really terribly difficult, and has a lot of moving parts that designers often fail to take into account, until the deployment people lock them into a restroom stall, and refuse to let them out, unless they listen.

That's common with newer engineers (and now, non-engineers). I believe that Mr. Dunning, and Mr. Kruger had something to say about it.

I also spent most of my career at hardware-oriented companies, and shipping hardware is orders of magnitude more difficult than shipping software.

hintymad2• 1 month ago

There's so much work in delivering products that will carry your brand, and then must be supported.

People think otherwise with AI partly because Anthropic kept telling us that they didn't have to write code or review code any more for most of their work. Their agent swarms just comb through their github, slack and wikis to figure out what to do next, and another swarm of agents just review, test, merge, deploy, A/B test, and revert the code. Boris alone merged nearly 300 PRs in the past week (or two?). So the top research labs seem have broken the productivity seal.

And then they talk about this recursively self-improving AI that is so powerful, so autonomous that they advocate that every company should be prepared to "pause" the effort. And their Fable/Mythos has this specific restriction as mentioned in their model card[1] that they are going to reject requests to tune and train models because, well you guess it, the models are too powerful to be used by mere mortals.

[1] We’ve implemented new interventions that limit Claude’s effectiveness for requests targeting frontier LLM development (for example, on building pretraining pipelines, distributed training infrastructure, or ML accelerator design). Using Claude to develop competing models already violates our Terms of Service, but enforcing this restriction through our safeguards avoids accelerating the actors most willing to violate these terms. Unlike our interventions for cybersecurity, biology and chemistry, and distillation attempts, these safeguards will not be visible to the user. Fable 5 will not fall back to a different model. Instead, the safeguards will limit effectiveness through methods such as prompt modification, steering vectors, or parameter-efficient fine-tuning (PEFT).

californical• 1 month ago

the safeguards will limit effectiveness through methods such as prompt modification, steering vectors, or parameter-efficient fine-tuning (PEFT)

Holy crap that is dark. I like learning about ML for fun, and now I have to assume that their model is intentionally misinforming me to sabotage my learning? It is absolutely bananas that somebody decided that was ok behavior.

elzbardico4• 1 month ago

Anthropic is full of shit.

techblueberry4• 1 month ago

I’ve been wondering if “you’re not google” when learning about googles software dev process applies to Anthropic. Anthropic is a company that A. Has cheap unlimited access to its models and B. Is probably largely insulated from the types of tradeoffs that the rest of industry has had to observe in the post-ZIRP era.

Like did they break through the productivity seal? Or are they willing to spend that much more on it since they see their failure as a like existential threat to humanity. I doubt it our boss sees your software the same way.

koe1232• 1 month ago

I think taking Anthropic or any company in this space at face value is naive at best though. AGI has been 6 months away for years now. Surely anyone can think this through: Anthropic knows what theyre doing with their public facing repositories, they know to make things enabled by their tech seem impressive. I would consider Bun etc. examples of this.

Realistically, nobody intellectually honest really knows.

onion2k• 1 month ago

People think otherwise with AI partly because Anthropic kept telling us that they didn't have to write code or review code any more for most of their work.

Even if that were 100% true, it only collapses the coding effort to near zero. Anyone who's built and shipped a real product should know that coding is maybe 50% of the work, and on a mature product it can be much less.

benterix• 1 month ago

People think otherwise with AI partly because Anthropic kept telling us that they didn't have to write code or review code any more for most of their work. Their agent swarms just comb through their github, slack and wikis to figure out what to do next, and another swarm of agents just review, test, merge, deploy, A/B test, and revert the code. Boris alone merged nearly 300 PRs in the past week (or two?).

Apart from many other issues with this, heavily subsidized subscription plans won't last forever, and if you start burning your own money on tokens in this way, you'll soon realize it's terribly inefficient.

dieselgate• 1 month ago

90% of the code is 90% of the work. The last 10% of the code is the other 90% of the work.

Don't think I've heard that one but certainly rings true to my experience.

Reminds me of "ninety percent of the game is half mental"

radley• 1 month ago

I've heard it as "once you think you're 90% done, you're really halfway done."

Tangential: it's always made me wonder about teams that believe "80% effort" is optimal.

strangattractor2• 1 month ago

%80 of CEOs are Meh. %10 of the CEOs add value to the company. %10 of the CEOs are actually detrimental. The %80 will always try and do what they think the top %10 CEOs do because of FOMO. The bottom %10 will do it because they know their days are numbered and hope that it might put them in the %80 keeping their jobs. A good LLM could probably replace most and not do any worse.

Good CEOs don't see their employees as an expense.

fuzzfactor2• 1 month ago

Those percent estimates look about right :0

Good CEO's make such good money on their employees that everybody gets raises and bonuses, the company grows responsibly, and the stock is a good investment.

Too bad it's out of reach for so many executives.

If that's too challenging, I understand, but if they had real confidence as a business operator I don't see why so many would be kicking out anybody over AI when they could at least continue to make the same money off the same people going forward. OTOH in cases where AI is almost ideally helpful it should be no surprise if hiring is slowed, and doing the accounting it could very well add up about the same either way. But one way clearly indicates the limited vision of a lesser leader, why settle for that?

Two of the most macro giveaway characteristics are emotionalism and superstition.

Not just for CEO's and other executives, but anyone in a leadership position or with decision-making tasks to perform.

One of the legendary combinations is when superstition is used in place of technology, and emotional reactions completely prevail instead of genuine business acumen.

It's a pretty good estimate that almost every CEO who thinks it would be good if AI replaced their employees, that these CEO's fit squarely in the superstitious camp.

I would say that's just one growing subset of a much larger smorgasbord of superstitions to choose from, and some big-shots are bound to indulge a whole lot more than others :\

Yokohiii• 1 month ago

I liken it to having children. Conceiving them is fun. Delivering them is painful. Raising them, is a lifetime of work.

I am not a children person. But I love this analogy.

To deliver something nice, we also must accept some suffering.

newsicanuse2• 1 month ago

Great analogy all the way through. Also the last 10% takes thre most effort/iteration to get the work done such that you don't spend a lot of time maintaining it later.

BLKNSLVR• 1 month ago

In various different projects I've been involved in where we've been implementing (not developing) software solutions I've noticed that, at management level, there is little regard given to the level of maintenance required of running the software; that people are still needed; that, yes, processes are automated, but there's a helluva lot of ongoing work required to ensure that new data won't pop the automation off the rails.

It's as if the installation part is the hard bit, and after that it'll take care of itself for ... far enough into the future that it won't be <current manager>'s problem. It is solved.

... and that's just using the system, not fixing bugs and adding features.

safety1st2• 1 month ago

Honestly I am burned out on public discussion of AI. There are so many hot, low info takes on both sides. All the dumb stuff revolves around this imbecilic notion that AI will take your job.

In that sense Altman and Dario et. al. were extremely successful in their cringeworthy campaign to establish themselves as priests of a new machine god religion. Even the people who don't want it believed them.

The good news is at least this year companies are starting to get a little more thoughtful about why they're paying for AI and what specific business function it serves.

Realities:

1. AI is a tool. You don't replace a job with a tool, just like you don't replace an apple with a sock. It was always an error of classification to think this way.

2. AI is a useful tool. For every CEO who thinks it justifies mass layoffs, there are dozens of people who don't want to admit that it does have a lot of utility. Anyone who isn't figuring out where this tool can make them more productive will have a hard time down the line imho.

3. We can infer from the priors that jobs will continue to be a thing, just like they still were after the inventions of printing presses, cars, power looms, etc. but there will be some pretty massive churn, some roles maybe disappearing entirely, new ones getting created, same goes for skill sets.

4. Businesses will use this churn to the best of their ability to either reduce costs or increase output. That second part is the key the AI haters don't seem to recognize. Thanks to competition, not every business wants to just fire everyone. Yeah, America's financialized and monopolized and less competitive than it used to be, but still, plenty of businesses will repurpose their budgets to produce more and expand.

So in terms of real specific and concrete things I've seen so far.

If you're in customer support that's a pretty rough spot, a well designed RAG system can turn 20 minutes of research into 20 seconds. Customer support budgets flow downstream from actual usage/customer base so if they can do more with less people will get laid off, they don't expand scope, they automate and cut the budget.

If you're a developer, your position's a lot more secure than that, coding agents are pretty incredible but they are simply not at a point where they can think through architectural decisions, and they occasionally go off the rails and trash everything. These things need to be operated and steered. Yes that's 100% the future of the profession and I'm sorry if someone doesn't like that, being a blacksmith who forges metal things by hand is also very niche these days, kind of sad if you loved blacksmithing but it happens. Devs also have to be aware that a PM/product owner can likely do some of their job now and I think any dev whose preference was to avoid thinking about customer or business requirements is going to find his utility is shrinking. A mass shrinking of the profession is unlikely but things will change and the only rational paths forward honestly are to retire or to figure out now how you fit in, it's a career opportunity if you get ahead of the curve even.

Lastly there is a whole other domain now which for lack of a good term I'll refer to as "prompt engineering," it requires some level of systems design thinking, but basically no programming expertise. The best candidate for this work is a person who possesses business process knowledge as well as systems oriented thinking. Maybe these jobs will end up finding a home in the IT department or something. As an economy we're barely recognizing them yet but I see that in engineering we can increasingly implement places for a prompt input, and then hand some workflow/business domain decisions off to someone who understands them better and they just tweak their prompts over time to get a great system. Pretty sure new jobs will be created and formalized around this over time.

cpt_sobel• 1 month ago

I think this is the most level-headed take I've read in a while, sums up perfectly the HN discourse on "AI taking our jobs", thanks!

ilteris• 1 month ago

Amen. Or I should say RIP.

leokennis• 1 month ago

Beautifully said. Engineering is often just a cost center and I often have the feeling management is suspicious that the engineers are just wasting time and throwing up roadblocks for nothing. This in turn makes managers always on the lookout for "the shortcut" to cut out as many of those engineers as possible.

There is a definite lack of appreciation for the often repetitive grit, toil and maintenance work required to just have profit generating working software running reliably in production.

BobbyJo• 1 month ago

Software companies really are just operations companies that use software to deliver services.

ksec• 1 month ago

Or more like the last 20% of work takes the same effort as first 80% of work. Which is the 80/20 rule. But increasingly I believe the 90/10 rules works better.

As a matter of fact I tend to think of it the first 80% is 80% of work, the 80% of the 20% left is same as first 80% of work. The last 4% polishing is another first 80% of the work. I think that is a good rule for general project management.

chopete3• 1 month ago

> Yes, the tools are powerful, but a CEO who thinks they replace the work of employees is simply a bad CEO.

This is a broad generalization of employees. There will be some "routine tasks" that can be done by AI, now that is a lot more powerful.

There won't be as many employees needed for routine work - for example L1 and L2 support work. For example, many companies had ML engineers building models for various models. Companies can get that off the shelf from AI companies. They don't need a big team of model builders now.

wwweston• 1 month ago

If L2 support work is the example then I doubt we’re near replacement.

L2 issues are already involved in some way often revealing some kind of system failure, requiring context and exploration to understand, and judgement (and perhaps even system overrides) to fix.

I could see “automated L2 is the new L1” improvements, but without a big capability jump and/or a resource bonfire, I don’t think even frontier models would effectively replace good L2 staff.

They might magnify good L2 staff so fewer are needed (and maybe even help L1 staff become L2).

alex_sf• 1 month ago

My agent is currently doing the work of ~6 senior engineers, based on ticket closures. These are not trivial tasks: all of them involve a mix of code, judgement, executing remote commands in a production environment, etc.

This is at a well-known tech company operating at massive scale (and resulting complexity).

L1/L2 tech support is completely dead within a couple years. The delay is only around how long it takes people to realize.

gowld2• 1 month ago

I often use AI chatbot to generate step-by-step instruction for setting or repairing up some bit of tech. It's incredibly empowering, and saved me a a lot of money that would have been spent on buying replacement tech.

You know who can't do that? People who call L1 support.

noncoml3• 1 month ago

The CEOs that think AI replaces their employees are the same that at the same time don't want to pay the AI costs.

matheusmoreira2• 1 month ago

Why can't we get AI models that replace these CEOs? I bet they're pretty good at running a company.

noncoml3• 1 month ago

It's our fault for stupidly naming everything AI:

A* search -> AI

Backtracking -> AI

Neural Networks -> AI

Fuzzy Logic -> AI

Genetic Algorithm -> AI

Deep Learning -> AI

Generative "AI" -> AI

Similar to Tesla naming it's driver assistant "auto-pilot" in 2015 and your average Joe thought he would be able to sleep while the car would drive him to work.

The CEO just hear AI and think of AGI. They expect Skynet.

gowld2• 1 month ago

Aircraft autopilot is over 100 years old, and Testla autopilot is an automotive version that fits the definition by analogy to what aircaft autopilot does and what the human metaphor means (doing simple tasks aithout higher-level cognition or handling of surprising stimuli). Autopilot is not end-to-end driverless.

noncoml3• 1 month ago

The point isn’t whether the aviation term "autopilot" has a technically defensible meaning, but that "Autopilot" predictably made normal people think "the car drives itself", just like "AI" now makes non-technical CEOs think "AGI employee replacement machine".

You are arguing the dictionary while I’m arguing the predictable, if not very well calculated and purposeful, misunderstanding.

themafia2• 1 month ago

the definition by analogy to what aircaft autopilot does

It's a bad analogy. Autopilot just maintains the aircraft in some state, then there's the flight director which maintains the flight path, and you can connect or disconnect the two at will. When connected the director can change the autopilot state.

To use the flight director you must fully specify your flight. The weight, the fuel, the weather, expected winds, takeoff and landing runway length, runway conditions, expected brake demand, as well as every single waypoint you're going to cross and the expected state at that crossing.

what the human metaphor means

We learned after high levels of cockpit automation that maintaining situational awareness was still required. Pilots are freed of some stress during high workload portions of the flight, provided they planned correctly in advance, and that zero changes to their flight plan (not likely) occur.

As a result pilots are mostly told and trained to hand fly the plane during take offs and landings if the weather allows for it. You should only use high levels of automation if the situation demands it.

ninjahawk1• 1 month ago

Wait, tech CEOs don’t understand why employees are valuable?

Astronaut holding up gun to other astronaut

Always have been.

ReptileMan• 1 month ago

A story from today - I needed a small utility to remap my logitech buttons under windows without installing their horrendous GHUB. Logitech Onboard Memory Manager still required ghub to be put into onboard mode.

The solution - linux has utility called piper. I downloaded the repo and just told codex - figure out what piper is doing and create me a small utility to do it under windows. So the jolly critter started experimenting with hex commands, then pulled some other repo on which piper depended figured out how to enable said onboard mode and 10-sh minutes later I had small python script that did what i needed to do.

That would have taken probably half a day of work for a human.

There are many stupid CEO and organizations which are not committed to quality. And a lot of employees that are too set in their ways. But the instinct that underinvesting in AI is more dangerous than overinvesting is right. Doomed if you do, doomed if you don't

"To err is human, but to really foul things up requires a computer" - this is from the 60, but right now is turned into overdrive.

socketcluster2• 1 month ago

Wow the token leaderboard idea is nuts. It's similar to trying to measure the productivity of software engineers based on number of lines of code.

ACCount372• 1 month ago

The message isn't subtle, and isn't meant to be: "we don't care how, but we expect you to stick your nose into AI tools and find some way to fit them into your workflow".

Which indicates: the management believes there are productivity gains from AI use, but adoption lags due to inertia and reluctance to change existing workflows.

jjk1663• 1 month ago

Which indicates: the management believes there are productivity gains from AI use, but adoption lags due to inertia and reluctance to change existing workflows.

Methinks adoption lags due to management's inability to align incentives such that productivity gains are rewarded.

themafia2• 1 month ago

more of "we whined and cried and screamed that we needed new budget in order to buy these tools or we would literally die. now we have them, they don't work as well as we hoped, they aren't leading to productivity gains, and they're actively alienating our workforce and users alike. we're so screwed we literally have no idea how to do reverse this."

Nasrudith2• 1 month ago

It also indicates several different levels of 'cannot manage their way outside a paper bag'. If you had a construction foreman who decided because nailguns would be the way of the future vs hammers, therefore the metrics would be based on the number of nails used and wound up with thoroughly nailed pieces of lumber but no houses built, he belongs fired as a complete incompetent who has absolutely no business on a job site.

Due diligence, judgement, and ability to know what the hell is going on are essential skills for management. The token metrics are a complete abdication of all of the above. It isn't a cream you just slather on to boost productivity.

GreenSalem• 1 month ago

There are a LOT of bad CEOs.

There are also a LOT of bad software developers.

When they meet, the software developer is fired.

The CEO exits after a while, after exercising their stock options...

elzbardico4• 1 month ago

bad CEO + bad software developer = new CTO.

ing33k• 1 month ago

lol, what does it mean ?

spoonjim• 1 month ago

CEOs who think that excavators replace their hand-diggers are just bad CEOs

as1mov• 1 month ago

If the excavators only worked half the time, sometimes goes out of control bonking someone in the head and costs a billion dollars, then yeah they're pretty bad CEOs

einpoklum• 1 month ago

So much of this hype feels like astroturf in preparation for the upcoming IPOs:

https://tomtunguz.com/spacex-openai-anthropic-ipo-2026/

and I don't know what worries me more - a burst in this bubble (and maybe some other tech stocks), or a failure of these valuations to be burst somehow, and even more concentration of capital and power around those corporations.

josefritzishere• 1 month ago

Most CEOs are not special. They are not especially smart, or skilled, or technical. The role self selects for sociopathy. That's not a quality that has any kind of linear relationship with intelligence. Quite the contrary.

profdevloper• 1 month ago

Sociopathy is a valuable skill in today's competitive marketplace.

bmitc• 1 month ago

CEOs are probably the most replaceable position, period, by human or AI. Everyone just gives them information. They don't know any information themselves.

Problem is, a CEO can fire employees, find out it was a dumb decision, then leave with a million dollar severance package. So they don't really care when they're wrong.

claytongulick• 1 month ago

This is a great article, and I agree with most of it.

The problem is that the wrong eyes are seeing it.

We need these kinds of articles to be published in places that executives read, and tailored to their audience.

AI recovery is going to be a big wave of consulting over the next several years, maybe very publicly or maybe quietly, but it's going to be a thing. That doesn't mean "all AI is bad" or any other such nonsense, it means that there are a lot of companies out there right now that are doing it wrong and will need help.

The executives that get ahead of this are going to be the winners.

mountainriver• 1 month ago

If AI makes you more capable, it’s basically like having a capital injection.

CEOs that look at that and think they need to reduce headcount seem to also be signaling they don’t know what to do with increased resources

StellarScience• 1 month ago

CEOs understands that AI offers potential productivity increases. Using that productivity boost to cut staff is an unimaginative approach. Bolder approaches include using that boost to exceed the expectations of current customers, or to increase sales without proportional increase in staff, etc.

rq1• 1 month ago

I think sooner rather than later, AI will replace CEOs.

taylodl• 1 month ago

Maybe the CEOs who think AI replaces their employees should be replaced by AI?

MisterKent• 1 month ago

I keep seeing this sentiment in general and in this thread.

I wrote about it here too:

https://blog.nilesh.io/post/llms-and-jobs

Just because people have a vague idea of what someone's job is and a deep understanding of their own job, it feels like AI can replace everyone but you.

habosa• 1 month ago

I saw someone on Xitter say "Any CEO who wants to replace jobs with AI should first have to replace their own assistant with AI" and I think that's the perfect rule. Every AI demo is some version of a personal assistant, surely AI can do that job right?

I think we'd get zero volunteers from CEOs who have assistants.

(Note: this is not meant to be an insult to human assistants! I think they do a valuable job and should not be replaced by AI either).

scubadude• 1 month ago

It's the eating your own dog food.

The Open AI guy said it's now better than doctors (he said it, not me lol). He's replaced his doctor, right?

SpicyLemonZest5• 1 month ago

What he said (https://economictimes.indiatimes.com/tech/artificial-intelli...) is that he doesn't want AI to replace his doctor even if it is better at diagnosis. He wants both and he expects most people to agree.

outime• 1 month ago

I don't think that's a fair comparison since LLMs can't e.g. prescribe medical tests or medication. That's not something I'd be looking for anyway, but we should at least compare apples to apples.

zuzululu• 1 month ago

I donno

CEOs get signals from multiple channels that cantbe accessed by AI or ordinary workers

so that alone becomes a moat

same with sales jobs theres a plane that AI cannot observe (yet)

bondolo• 1 month ago

Early in my career I read "Peopleware" by Tom DeMarco and Timothy Lister. Between that book Brooks' "Mythical Man Month" and Humphrey's "Managing the Software Process" it seemed that there was hope for the software industry learning some necessary lessons and growing to become a true engineering discipline. Nope. Never happened. The industry standard, despite improvements in some areas, is still a farcical shitshow with little beyond lipservice to process, predictability or proper self-evaluation. I can only describe agile, as it is practised, more of a coping mechanism than an actual methodology. Indeed the methodology is embodied mostly in the infrastructure; issue tracking, version control, code review, continuous integration with as little methodology glue between them as required to produce output.

Modern first and second tier software management seems less professional, is contributing less and is generally worse than it was twenty years ago. The quality of the engineering and program managers, their training and commitment to their craft seems really low and is not generally valued. On average team level software management has gotten worse rather than better and, given what is expected and how it is valued, this shouldn't be much of a surprise. It is truly disappointing that what could have been a valuable and productivity enhancing role became so useless.

Things aren't going to change for the better though until the dust settles somewhat on the role of AI in software and systems development and we start again to consider how software should be developed in the 21st century. Maybe it is possible that with AI doing most of the low-level work that the focus will change to building and maintaining architecture and systems. Many programmers might become more like traditional engineers doing a lot more systems work than they do today and continuing to solve problems. Lord knows though it won't be today's software management doing this work; they have nothing in the way of skills to offer to the problem.

rimliu2• 1 month ago

I've had a urge to give that book to a couple of bosses when leaving the company (mostly because of said bosses).

rayiner• 1 month ago

The working horse population continued to grow for almost 20 years after the introduction of the Oldsmobile in 1901: https://www.reddit.com/r/dataisbeautiful/comments/i2lmdx/num.... The number of horses didn’t fall below the 1900 level until 1930, two decades after the Model T was introduced.

threethirtytwo• 1 month ago

We're laughing now but the trendlines point to a future where this is true. That is the most realistic take as of right now.

Cue rationalizations claiming that it isn't:

techblueberry4• 1 month ago

Future? Try present.

99954bb63ccc• 1 month ago

So, a lot of the article makes several points that aren't necessarily new, but

The problem tends to show up when a CEO is handed an agentic tool like Claude Code, and has it create something, which will work just fine, and thinks “oh, wait, why do we need so many people, when I can just sit here and make things work?”
This is a bad CEO.

As described, this seems to me more like a lack of reasoning/critical thinking ability, and it's not unique to CEOs. Tracks more with a combo of "Gell-Mann Amnesia" and automation bias IMO.

This all reminds me of cargo cult thinking: The CEO knows that somewhere in the org, employees are pecking away at computers and work gets done. So they figure that themselves pecking away with Claude Code and seeing work get done is the same thing. It’s not. All those other steps those people are handling — the ones the CEO never sees — still need to happen.

"Cargo culting" as described here by the author may be happening. But, I think it's CEOs seeing other CEOs doing layoffs and claiming it's because of AI efficiency gains. They see the other CEO's stock go up/get hyped/etc, so they decide to do it. I think it's the same thing that happens inside companies IE people see how others behave and it works, so they do the same. Effectiveness aside because that's not at all what I'm arguing, AI is just the current flavor; it is a very safe thing to "cargo cult" at the moment.

bloaf• 1 month ago

I'm don't know what makes a bad CEO but I've definitely worked with people who could be replaced by a current-gen AI.

gitliterally• 1 month ago

I have unfortunately worked with people who don't understand git. I mean Post-covid, to quell some of you funny guys.

lenerdenator• 1 month ago

The problem tends to show up when a CEO is handed an agentic tool like Claude Code, and has it create something, which will work just fine, and thinks “oh, wait, why do we need so many people, when I can just sit here and make things work?”
This is a bad CEO.

There is one and only one measure of whether a CEO is good or bad:

Does the CEO keep the majority of shareholders happy?

Since they are more often than not kept happy with money, if the AI makes the CEO ask the question above and the result is a larger return on the shareholders' investment, then that is a good CEO.

When your domain of knowledge considers Jack Welch to be a genius, there is no floor.

weare138• 1 month ago

CEOs see that AI can do their job and assume it can do everyone else's too.

elzbardico4• 1 month ago

It is useless to preach against the wind.

We're all now on this and we will go together in it till the very end, whatever it maybe.

Look around: lots of places ressurected Lines of Code as a productivity metric for Software Teams. Companies that should have known better, as they are supposedly led by the Elite Human Capital, instituded token usage leaderboards.

We can't stop that thing. It has too much momentum. Sooner or later we would have to pay for our culture of anti-intelectualism in business anyway. If it was not this, it would be another thing.

waterTanuki• 1 month ago

I will say that I hate the term “AI psychosis” because the term is extremely misleading, and many psychologists and psychiatrists have complained that it is inaccurate and may cause more problems itself. But the general sense that CEOs are going overboard with AI is definitely happening.

It's getting exhausting how x field of experts constantly bemoan the coining of one term or another, rather than provide a decent alternative. It's not very goal-oriented thinking. Just empty complaining.

SpicyLemonZest5• 1 month ago

When people object to the coining of a term, what they're usually trying to say is that it just fails to refer to any coherent thing or group of things for which you could develop an alternate term.

"AI psychosis" tries to group together the phenomenon where people fall in love with an LLM-generated character, the phenomenon where people spend too much time talking philosophy with LLMs and stop expressing coherent thoughts, and the phenomenon where tech evangelists say "AI can do all of these 5 million things" when actually it can't do all of them. But what if these are all different phenomena with different causes and solutions?

rimliu2• 1 month ago

is it inaccurate because "AI" is not really AI? ;)

sleepybrett• 1 month ago

I'm not sure I've ever met a good ceo...

tty456• 1 month ago

Modern day CEOs of public companies are just more or less hedge fund operators looking to squeeze every last dollar out of their workforce. AI is a tantalizing, if ineffective, lever for that.

wolfi1• 1 month ago

why shouldn't AI then replace the CEOs?

notepad0x90• 1 month ago

I think it's more of a workforce reduction technique in some areas. how much is the issue, and lots of "it depends" but even at a higher up-front cost, LLMs have higher value and less liability. Instead of offshoring/outsourcing for example, you can have the same local devs that were leading/managing the offshore teams manage LLMs instead. Or if you have 10 expensive devs making 200k, just halving that is a million/year. even if that million is spent on tokens (even double or triple that) it might not be that much outside of what they would have been willing to pay for more devs anyways if there was the need, except now they have to deal with less people to manage overall. less lawyers, less hr, less lawsuits, less hiring and promption costs, less insurance premiums. Even if the quality of the work is a whole lot less, they only care about a viable product being shipped, and how much the lower quality affects profit margins.

I'll say this, laws and regulation are sorely needed. all this hate against billionaires, ceos, ai-bros, whatever... might or might not be warranted, but it is fruitless. Redirect this energy to your law makers.

In China for example, they made it illegal to use AI for the sole purpose of replacing human workers. The CEOs aren't bad CEOs, they aren't great either, it depends on the outcome. There are scenarios where entire job roles can be replaced by LLMs, but for complex roles like developers, you always need some human devs still, but likewise, almost always less of them than before. However, although less devs might be needed to do the same work, in some cases LLMs open up possibilities that weren't there before, so more devs babysitting LLMs or working on designing/shipping more features is also a strong possibility.

I mean, companies aren't trying to simply save cost on employees, they also want to maximize profits. Less devs per feature isn't the same as less devs period.

Overall, I'll say that demand creates its own supply. The internet itself killed many job roles and reduced the number of people you needed for many others, but it's not like we have the huge unemployment many were afraid of decades ago, if anything it created lots of more jobs. LLMs simply can't do everything people can, so they're not a drop-in replacement, that alone should mean a lot in terms of supply/demand economics.

notenkidev• 1 month ago

The token leaderboard example was shocking.

Counting token usage as a productivity metric is completely counterproductive. I believe that effectively leveraging AI means reducing wasted tokens, not increasing them.

The visibility gap is serious. I create local activity logs for Claude Code, but most developers have no idea what the AI is actually doing at the file or command level until they look at the logs.

geopsist• 1 month ago

I've been a founder since before any of this existed, same flavor of small team then and now. What I see now is that anyone can produce more but less due to their skills from scratch (slop?). A big company sees the headlines and a CEO reads that as "fewer people", or force use of LLMs and people seeing it as a preparation for AI processes taking over (and rightfully so). But frankly probably for smaller teams it reads "same people, wider surface". Imo bad CEOs existed before AI and will exist in the future...

zurfer• 1 month ago

I do think it's more subtle. AI can replace very few jobs end to end with the same quality, maybe none. But AI can be put to work on high ROI problems. Now when the new marginal job is not obviously as high ROI as putting another 100k of tokens to work, no human gets hired.

Next, comes natural attrition in a company where a certain percentage will leave every year. Will they get replaced with a human or their budget goes into tokens?

Only when these 2 angles are exhausted, a typical company will start thinking about layoffs.

Now, some companies are already stressed: customer buy AI products instead of theirs, AI makes it easier to build what they offer, customers believe they can vibe code things. These companies will layoff first, because of AI. Not because AI will do the persons job but because the money gets spend differently.

amai• 1 month ago

AI is the new outsourcing. It is cheap in the short term, but in the medium to long term it generates many problems, like loss of know-how and competitivness, huge maintenance cost, loss of control, and dependency on other foreign companies, with misaligned goals compared to your company.

Before using AI ask yourself: Would you outsource this task, with all the risk that come with it? If yes, go for it. But if no, then don‘t use AI.

vips7L2• 1 month ago

Fits perfectly with typical capitalistic short sightedness.

bob1029• 1 month ago

AI will never be able to replace a human board member. I think that's what bothers technology people the most here. It's quite asymmetric. At best, LLM agents will be granted certain non voting advisory roles, but anything the llm generates will need a human to assume responsibility.

The point of a human being on the board is that they can be made to suffer the consequences of bad decisions. Executive pay might seem astronomical, but it is often commensurate with the level of stress and responsibility involved. It's easy to look at the perks and not see the struggle behind them. No one in media is going to get a lot of clicks if they publish articles about how being a CEO is actually really hard and maybe some of what they're doing is actually justified once you assume all of the same context and stress they have.

If we want to do to the executive staff what is being done to the technical staff, I'm afraid we will need to first figure out a way to make the AI experience human emotions as strongly as we do. It often sounds fun in first order terms to threaten to fire a CEO and replace them with a clanker, but have we considered the consequences of this? What would it be like to be under the management of an emotionless robot? Being managed by a robot vs managing robots are wildly different things to me.

matheusmoreira2• 1 month ago

What would it be like to be under the management of an emotionless robot?

Depends. Is the robot looking out for our best interests? Or is the robot looking out for the shareholders?

I already ask AI to manage a lot of things, including my own activities. It all depends on whether the model can be trusted to act in our best interests.

cableshaft• 1 month ago

Executive pay might seem astronomical, but it is often commensurate with the level of stress and responsibility involved.

I call bull on that. Employees often have just as much stress, often imposed on them from those higher up, where if they don't do well they could get fired and it could mean they can't put food on the table.

Several times I've worked in environments where the stress was incredibly high, and once it even put me in the hospital after a long stretch of working 70 hour weeks to satisfy the insane deadlines my CEO boss wanted (this was at a startup).

Whereas if an executive screws up they just golden parachute to another cushy gig elsewhere, oftentimes, because even if they screw up, they're still valued as having experience running companies by other companies. And even if they cannot, they still likely got paid enough that they won't be struggling financially if they go through a period without a job.

trolleski2• 1 month ago

But the number up, what wrong? Less word more time, me good CEO.

code51• 1 month ago

Bad CEO but still CEO. That's the thing.

Cost-saving is quite an easy idea to sell.

robeym2• 1 month ago

AI impacts so much. So many white collar chores just get obliterated with AI. Legal & regulatory docs, production planning, sales materials, etc. Just yesterday I used AI to generate 235 new system docs based on our codebase, and added automated .md -> html publishing so final drafts go straight to the website. This work that would've taken a contractor 1-2 weeks got done in a day, by me, someone who definitely isn't a technical writer.

When the person who knows what's needed can handle the technical execution themselves, you no longer need that second person.

I certainly wouldn't say you need "more humans"

aiisjustanif• 1 month ago

Just yesterday I used AI to generate 235 new system docs based on our codebase

For who? Will it ever be read? I’m bias on good documentation and I think AI is better at publishing documents for machines, for now.

robeym2• 1 month ago

For PAX ERP. It'll be read by both humans and llms. "Paxy AI" will be the primary reader, which is the AI support tool in the system. When users ask it a question about how to do something, it'll answer based on the technical docs.

AtlasBarfed• 1 month ago

The interests of the shareholders is to maximize the final stages of the war on labor by capital.

jfreds• 1 month ago

The worst case of these were the few companies that set up token leaderboards, which is perhaps the dumbest way possible to encourage learning how to use LLMs well

My company does something dumber now. A leaderboard of how many lines of code you shipped, weighted by how complex they were (assigned by a heuristic). You can imagine the incentive this creates. I wish we just measured tokens

koliber• 1 month ago

Over the past 9 months I've been advising one small client of mine on AI adoption, and engineering maturity in general. They have a team of 5 engineers. One very capable lead and 4 ICs. They did not use AI at all before.

It was a whirlwind of a ride as the company caught up on 10 years of engineering maturity and 3 years of AI usage progress in 9 months. The improvement in output has been noticeable, and the quality has not dropped. In short, cycle time and throughput rose and quality remained stable.

One of the things we are talking about is the future. As the team learns how to use AI well, the amount of code will grow at a faster pace. The focus is now on writing things we really need, and ensuring the quality does not degrade.

We are trying to get the engineering team to lean into understanding the product and business domain, and also adopting a QA mindset.

One of the engineers is not interested in the business domain. He loves typing code. I am afraid that within six months it will not make sense to have him around. He is relatively junior and wants well-specced tickets, and is reluctant to use AI. Right now, Opus writes better code than him, and solves business problems more acutely, with less time spent on writing careful specs.

If he gets fired, the budget will likely be re-allocated to AI.

In 7 months, it will be fair to say that we replace 20% of the team with AI. If that happens, it will have been a thoughtful process focused on upskilling willing employees, and not a boneheaded hype-driven decision. But it will be judged on the summary and not the process that went into it.

CEOs who think AI replaces their employees are just bad CEOs

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