- Companies can save exponentially more money with AI.
- For example, as a company, you used to have to pay $85/hr and a total of 10 hours ($850 total) to write a good blog post for marketing. With LLMs (large language models), you can generate an article and ask your writer to spend one hour editing it. The cost to produce a similar quality of a blog post went from $850 to $85 and the speed to produce it went from 2 days to 1 hour.
- It's rare to see an exponential increase in productivity like the above. Perhaps this kind of tech comes around every 50 years? Steam engine, electricity, internet level of impact.
- Soon, many workers will be exponentially more productive.
- Things that used to cost a lot of money to produce will be cheap.
- We're starting to get generative AI in video games, movies, music, programming, etc. as well. Even Excel and Powerpoint are getting generative AI.
- I'm a software engineer. Github CoPilot is incredibly good at helping me write code signficantly faster.
- Like the iPhone which made many workers significantly more efficient and opened entirely new industries, AI can and will likely do the same.
- Thus, corporations and stocks will benefit.
- There will obviously be big losers and big winners but as a whole, I expect S&P 500 to continue to marge towards greater profitability and a bigger total market cap.
- GDP/year is a measure of products and services produced in a year. I expect significantly more products and services to be produced with AI than without AI. Hence, I expect GDP to accelerate.
[link] [comments] https://www.reddit.com/r/stocks/comments/13cj1uu/prove_me_wrong_itd_be_a_huge_mistake_not_to_hold/
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