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AI Innovations, and Consequences; to the U.S. Economy.

Consequences of AI -

AI has (some) innovations, but.

AI will replace (most, not all) computer dependent jobs (that can be) in the future, (easily) in the Millions over time; through automation efficiencies.

AI will take away Tax revenues (from those employees that were replaced) who contribute to consumer spending which will (not if) have a very Negative impact on the U.S. economy.

AI will create (some) high paying jobs, but unless Taxes are Increased on Corporations; and the wealthy; there will (not if) be a Major shortfall in Tax revenue.

The U.S. National debt is (currently) $38.7 Trillion (and rising) per usdebtclock, with $990.0 Billion a year in Interest paid by U.S. taxpayers to outside Investors (U.S. based, Japan; China; etc.) that finance it over time.

Wars are (Always) costly over time (but sometimes necessary to defend U.S. National security), and the U.S. National debt will spike because of it.

These are the facts.


Software is done for

L3H software personnel are going to have a RIF and be replaced by AI by the end of 2026.
Take the warning and do something to secure yourself and your financial future, be that move to a better company, vote the union in, or whatever other steps you can take and do this immediately.
https://youtu.be/oU11PttL90I


Angi Trims 350 Positions as Automation Expands

Angi confirmed it is eliminating around 350 positions as part of a plan to cut operating expenses and optimize its structure. Officials said advancements in AI have helped enable the workforce reduction.

https://www.businessinsider.com/angi-layoffs-angies-list-cuts-350-jobs-ai-efficiency-gains-2026-1


I asked AI what it thought about replacing a CEO with AI.

Response was


Using AI to replace a CEO’s decision‑making can be framed as beneficial when the focus is on cost efficiency, consistency, and data‑driven governance, especially in organizations where strategic decisions are already heavily analytics‑driven.

Core Argument: AI as a High‑Precision, Low‑Cost Executive

Replacing a CEO’s decision‑making with AI can be seen as a net positive because it removes one of the most expensive and variable elements of corporate leadership—human executive compensation—while potentially improving decision quality through constant, unbiased, data‑driven analysis.

AI systems don’t demand bonuses, equity packages, or golden parachutes. They operate continuously, process vastly more information than any human, and make decisions based on evidence rather than ego, politics, or fatigue.

Cost Savings: Regaining the CEO Salary

CEO compensation is extraordinarily high across most industries:
• The average CEO salary in the U.S. is about $812,900 per year A.
• At large public companies, total compensation often exceeds $18–23 million annually B C.
• Some CEOs earn over $100 million per year in total compensation packages B.

Replacing this with an AI system—even one requiring significant infrastructure and oversight—would cost a fraction of that. Even a robust enterprise‑grade AI system might cost low millions per year, and often far less, depending on scale.

Savings could range from $800,000 to over $20 million annually, depending on company size.

Those funds could be redirected toward:
• R&D and innovation
• Employee compensation
• Lower consumer prices
• Shareholder returns
• Long‑term strategic investments

Why AI Decision‑Making Can Be Better

  1. Data‑Driven Consistency
    AI evaluates every decision using the same logic, the same data, and the same criteria—no mood swings, no biases toward certain executives, no political maneuvering.

  2. 24/7 Strategic Awareness
    AI can monitor markets, competitors, supply chains, and internal metrics continuously, not just during quarterly reviews or executive meetings.

  3. Faster Decision Cycles
    AI can simulate outcomes, run forecasts, and evaluate risk scenarios in seconds, enabling rapid responses to market shifts.

  4. No Ego, No Personal Incentives
    Human CEOs may prioritize:

• Personal legacy
• Compensation tied to short‑term stock price
• Risk‑averse decisions to protect their position
AI has no such incentives and can be optimized for long‑term organizational health.

  1. Scalability
    One AI system could theoretically oversee multiple business units or even multiple companies, something no human could do.

Trade‑offs and Constraints
This argument is strongest in contexts where:

• Decisions are highly quantitative (e.g., logistics, pricing, supply chain, finance).
• The company already relies heavily on predictive analytics.
• The culture values efficiency and transparency over charismatic leadership.
• Oversight mechanisms exist to prevent runaway automation or misaligned incentives.

It is weaker in contexts requiring:
• Deep human intuition
• Complex interpersonal negotiation
• Visionary leadership
• Ethical judgment in ambiguous situations

But even here, AI can serve as a powerful co‑pilot or decision‑support system.

A Non‑Obvious Insight

The biggest benefit may not be cost savings or even better decisions—it’s eliminating the single point of failure that a CEO represents. Human executives can burn out, get sick, make emotional decisions, or cling to outdated strategies. AI systems can be versioned, audited, and improved continuously.


Data Townhall

It’s been a few months. What’s the verdict on the new GM?

Are we offshoring all data jobs in the next couple of years?

The only takeaway for me was the OE moment. Basically somebody executed some script that ran up a $4m bill in a day. That seems like a fire-able offense. Which id--t did this and that’s one expensive OE moment.

Oh and also a very long winded meeting where every manager talked about how they’re going to do AI, except half of our talent have already quit, with more of them coming next month after the bonus check clears.

I guess the answer is more EY.


FROM the FIELD

Meetings are being held (in person and Zoom) to encourage and push branch offices to use co-pilot.

Whereas the HO witnessed this type of hype in their "new system processes," which later showed itself as a RIF, so too will the field. It may take a couple of years, but its coming.

NEW employee slogan: "Participate in your own demise at EJ" ....instead of:
"Together We Serve" which really means "together we serve ---> the ELT."


Don’t use Eliza!!

Every time I walk around the office and see anyone with Eliza on their screen I just shake my head. Beside the fact that it’s not very good, I think it would be quite amazing to see the EC crash out if they saw a fat 0% use rate when they obsessively check the stats. I know our wonderful pals in Pune would never cooperate though


Jack Dorsey's BLOCK Axes Nearly Half of its Workforce in One Day

https://www.dailymail.co.uk/yourmoney/article-15597141/jack-dorsey-block-layoffs-ai.html

"Jack Dorsey has axed thousands of workers at Block, the parent company of Cash App, Square and Afterpay, in a move signaling a major shift toward artificial intelligence.

In a note to staff, Dorsey explained that Block would be taking on risk by investing in 'intelligence tools,' as the company cut more than 4,000 employees on Thursday:

  • "today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are being asked to leave or entering into consultation. i'll be straight about what's happening, why, and what it means for everyone."

The company said workers affected by the layoffs will receive 20 weeks of pay, in addition to an extra week's salary for every year they worked at the company.

Those let go will also keep their corporate devices, receive stock benefits through the end of May, six months of health coverage, and a $5,000 payment to help them through the transition.

Employees outside the US will be offered similar packages, though details will vary by country, the statement said.

All employees were told they would be informed the same day whether they were being laid off, entering consultation, or keeping their jobs.

Block's shares surged 24 percent following the announcement of the layoffs, according to CNN."


Desperate VPs looking for for ways to get you fired

I was in a call the other day.
She starts to ask how we can use ai to make our tools better. Offering suggestions that have already been solved last year. Literally doesn't know anything.

Worse is I looked her up and she has no direct reports. I asked around and apparently they gave all her reports to some poor schmuck and her role now is to literally look for ai opportunities wherever they are.

That's it, that's her job. $175k a year to for someone with no ai experience, no software experience, no hand on experience to do nothing except look for ways to justify more layoffs

This is a joke right...


Slob Thomas has spoken on COBOL

From his linkedin post

"AI has sparked a new round of conversation about COBOL, with tools emerging that claim to translate legacy code and, with it, solve the modernization challenge. It is worth being precise about what that means and what it does not."

This framing understates the reality. The modernization challenge was never about translating COBOL syntax—it’s about risk, economics, institutional knowledge, and business logic embedded over decades. AI didn’t suddenly “spark” this conversation; enterprises have been trying automated translation, wrappers, and re-platforming since the 1990s, with mixed results at best.


Help me understand this

Companies left and right are using AI to justify mass layoffs. Our leadership is peddling AI all over the place. We know Stankey is probably foaming at the mouth at the opportunity to ax tons more people and use AI to justify it like they use RTO as a cover for mass layoffs.

So explain why the he!! we are spending over a billion dollars to build a new playground that requires a specific number of people to be there in order to get Plano’s bribe? Shouldn’t someone maybe ask this question?

Just saying.


How are managers getting away with not understanding what they claim the wrote.

Forget getting laid off, people will start just leaving on their own if we’re too lazy to write appraisals. Come on, how did they get hired if they can’t pronounce the words AI gave them. And don’t forget that clown last night who was talking all that sm--k about being somewhere outside of NY yet ran sh-t in the CSSC. What trash have we hired for TLs.


AI Irony

The Cisco ELT and multiple layers of bloat beneath them are waking up to the fact that the very AI they are so aggressively promoting will completely destroy their lives.

Each and every one of Cisco's business units are being actively replaced by a small startup using a tech stack that costs them less than $5,000. This is reducing margins.

Every white collar office worker that gets laid off is fewer access points, switches, routers and software seats. This is reducing recurring revenue.

Cisco is, in effect, destroying it's own customer base.

Expect the ELT to start aggressively rewarding themselves with stock buybacks, increased executive compensation, reduced benefits to employees and mass layoffs to provide immediate short term boosts to the stock price.


Layoffs and AI...

I think many people do not get it - AI will impact many jobs for the simple reason that in the past 30 years we created lots of so-called bullsh-t jobs and many of you are doing them. And AI will ki-l those, but that is ok. Personal assistants, auditors, project managers, Excel monkeys, recruiters, HR, etc. to name a few - all will be gone soon.


Data & AI: A Leadership Failure

The Data & AI organization has been in steady decline since Kat H left, and it worsened under Ronke’s leadership. Key talent was laid off without strategic foresight, institutional knowledge was lost, and execution quality collapsed.

For 18 months there has been no clear vision, no strong cadence, and no accountability. After the JC merger, politics and power dynamics overtook delivery.

The team focuses on frameworks and ingestion optics while lacking fundamental data understanding, quality discipline, and business alignment.

There is hope new leadership restores clarity, accountability, and real data leadership — because what we have today is not working.


Block Cuts 4,000 Jobs

Block’s layoff news today is pretty fascinating.

Jack Dorsey just cut nearly half the company — over 4,000 employees. Headcount goes from 10k+ to under 6k.
Stock? Up 25% in a day.

And here’s the interesting part:
They’re not losing money. Q4 earnings beat expectations.

The reason given:
“AI and intelligent tools are fundamentally changing how companies are built and how work gets done.”

That feels like a real regime shift.

For the last decade, growth meant hiring.
Now growth might mean replacing org charts with AI leverage.

What makes it ironic is that Dorsey, as Twitter’s co-founder, left behind a famously bloated structure.
When Elon Musk took over, he cut roughly 80% of staff — about 6,000 people — and the platform kept running.

History has a sense of humor.

If fintech is cutting this aggressively in the name of AI efficiency, does that mean traditional big banks will accelerate layoffs too?

Feels like we’re entering the era of “AI + ruthless efficiency.”
Curious how durable this model really is.


AI to displace 4000 workers (40%) at Block - Holy cr-p

I'm not sure that AI washing can really explain this at this point. Seems extreme. Will this be another klarna moment where they are calling people back in 3 months?

https://www.wsj.com/business/jack-dorseys-block-to-lay-off-4-000-employees-in-ai-remake-28f0d869

Jack Dorsey’s Block to Lay Off 40% of Its Workforce in AI Remake
Parent of Square and Cash App says intelligence tools have changed how to run a company

By Angel Au-Yeung
Feb. 26, 2026 5:04 pm ET

Jack Dorsey, CEO of Twitter and co-founder & CEO of Square, at the Bitcoin 2021 Convention.
Jack Dorsey at a convention in Miami in 2021. Marco Bello/AFP/Getty Images
Block XYZ 4.99%increase; green up pointing triangle, the payments company founded by Jack Dorsey that includes Square and Cash App, said Thursday that it plans to lay off 40% of its workforce, or more than 4,000 employees.

Dorsey alluded to artificial-intelligence tools as the reason for the cuts in a letter to shareholders.

“The core thesis is simple,” wrote Dorsey. “Intelligence tools have changed what it means to build and run a company.”

The company said the plan would cost it $450 million to $500 million in expenses and severance. Shares rallied more than 20% in after-hours trading.

Big companies have already been laying off thousands of white collar workers over the past year, in some cases pointing to increased efficiency created by AI. Salesforce cut roughly 4,000 customer-support roles last year because of AI advancements. Pinterest, meanwhile, has said it is laying off nearly 15% of its workforce as part of a plan to focus more of the company’s resources on AI-related roles.

And the fear AI would shrink jobs and replace the functions of whole companies sparked a market rout earlier this week after a research report imaged a dystopian future for the U.S. economy.

Analysts and economists have pushed back against the scenarios laid out in the report, but Block’s drastic job cuts will likely stoke up those fears.

The company said most of the layoffs would occur in the first quarter of this year and be completed by the second quarter.

“I don’t think we’re early to this realization. I think most companies are late,” Dorsey wrote. “Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”


You are a number, remember that. They don't care. They never did.

Once certian projects are finished they will lay off the rest of that department and let L T I take over. Congrulations on working yourself out of a job. HR will mostly be replaced by a computer. Get used to talking to a machine.

Middle management will be gutted.

They won't be needed since LTI has their own management in place. Projects will be downsized further and support groups dismantled and/or gone. Operations you aren't safe. They are looking at you. Anyone who is of retirement age will be next. If you have several complaints in your file you will also be gone. There won't be anyone left at cpchem except for a few in corporate.


Goldman Sachs warns that accelerating AI adoption could raise US unemployment...

  • Major firms announcing AI linked job cuts include Nike, Amazon, Meta, Dow, HP, Allianz, Telstra, WiseTech, Pinterest, Autodesk, MercadoLibre, SEB, British American Tobacco, and Agora.
  • Goldman Sachs warns that accelerating AI adoption could raise US unemployment, estimating AI caused 5,000 to 10,000 monthly net job losses in highly exposed industries last year and accounted for 7% of planned layoffs in January.

  • Companies across sectors including technology, finance, manufacturing, telecoms, and consumer goods are restructuring to prioritize AI, automation, and digital transformation.

  • Workforce reductions range from hundreds to several thousand roles, with some companies cutting up to one third of staff as they redirect investment toward AI systems, cloud platforms, and efficiency programs.

  • The trend signals a broader shift in corporate strategy, as businesses reallocate capital toward AI driven productivity gains, raising concerns among investors and economists about structural labor market disruption.

https://www.reuters.com/business/world-at-work/companies-cutting-jobs-investments-shift-toward-ai-2026-02-25/


Agentic AI at PayPal

Does anyone know what we can expect from Agentic AI in PayPal in the next 12 to 24 months in terms of it's capabilities? I understand Lores is fully focused on Agentic AI and will likely use it to reduce the workforce like he has done at HP.

I'm not interested in what you've read from AI regarding Agentic AI as I've done that myself. If possible, I would like to hear from someone within the company who has been working with Agentic AI at PayPal or who knows what the general plans are? For example, will it handle 40% of disputes/limitations/fraud claims in 12 months.

Really curious as Lloyds bank announced this month they will be using Agentic AI for complex fraud and complaints reviews. With the advancement of Agentic AI, PayPal's desire for lightning fast changes and Lores's enthusiasm for Agentic AI and cuts, big changes could be on the way very soon. gulp


Our teams leads are being told to use AI for our appraisals. I’m not comfortable with them giving my information away with you my permission.

@b2+1kjbbze82 Makes a great point. These creeps are putting our pictures in Gemini, putting in our personal and work information and god knows what else. This needs to stop!!


Oracle isn’t going to do more with less

Oracle isn’t going to do more with less when their competition is doing more with more.

Everyone has AI agents now. You will only weaken your position if you lay people off and lean into those agents. Your competition doesn’t have to follow the same logic. Your competition will do more with more. Anything you do with less will lose footing.

That’s not even including smaller companies competing with Oracle now that they have AI agents. The drive for more software will increase with AI agents. Even more players are going to want a slice of that market share.


These AI Initiatives Are Going to Destroy This Company's Tech

Leadership is STILL going all-in on this insane, stupid idea that AI needs to be a part of every product in this company. That every engineering team needs to be shoving resource intensive LLMs into their application no matter if the use-case of AI is.. useful. Otherwise they lose out on funding.

The critical, cognitive defect of these re--rds is astounding. Engineers who do actual work are either fleeing en masse, quiet quitting, or burning themselves out as they struggle to keep pace with the level of stupidity from their leaders.

I have NEVER in my time here seen something so astoundingly fu--ing stupid, and there's been a lot of astoundingly stupid things from our braindead leaders. As much as they gray-haired boomers liked to bring up buzzwords like ML, blockchain, etc. I never recall an initiative that EVERY team needs to be working with ML, or arbitrarily shove blockchain into their application.

It'd be one thing if they were simply asking engineers to use AI in some way, i.e. Copilot, ChatGPT, etc. It's another thing to have them invest actual time, resources, and FUNDING into throwing chatbots uselessly into their apps.

This is insanely disastrous and has gone on long enough from our negligent leaders. This DOES NOT "better serve our customers," in fact it does quite the opposite. This is a malevolent use of funding.


AI's Impact on the Current-Future Labor Force & the U.S. National debt.

The U.S. National debt is -

(Currently) $38.7 Trillion (and rising) per U.S. usdebtclock.

AI will take away (most) computer dependent jobs in the future (not all) but enough for the Unemployment rate to spike significantly thus reducing Tax revenue.

So Income Tax, and Corporate Tax will (need) to be Increased (especially) on Corporations, and the wealthy; to be able to cover it.

Reality is, even with the Trump Import tariffs that were nullified ($200.0 Billion a year with refunds of $125.0+ Billion in process back to Corporations-businesses) by the Supreme Court it wouldn't even faze the (current) $990.0 Billion (and rising) a year in Interest paid by U.S. taxpayers to outside Investors that finance the U.S. National debt.

These are the facts.


Just AI it

Nike's motto is "Just do it". Today we learned that Sabre's new motto is "Just AI it". Perfect.

How are we supposed to get the work done after you laid off all the people who could do the work.

Just AI it.

Have you ever used AI to do anything that needed to not onky be done but also done correctly without AI slop hallucinations?

Just AI it.

Just 10x it by using AI

Just agenticly AI it

Just vibe code it

Hey how do we get the stock price back up to $20?

Just AI it?

I can tell you what, AI could replace you and your ivory tower AI fantasies.

For those of us living in the real world, no we cannot just AI it.