It's already feeding on its own exhaust, and it's way too expensive. Hallucinations are the feature, not a bug. It's an excuse - to offshore, to cut headcount permanently (and dump the extra work on whoever's left), and to save face for leaders who are too embarrassed to admit they bought into the most obvious hype in history.
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Promises were made that AI would be a tremendous cost savings. It did not turn out that way but by God we have to show some gain from somewhere, so let’s have a multi year layoff until we can figure out a way to back out of this without too much embarrassment.
@ca You keep saying 13 levels of executive rankings - what are you talking about?
@a4 Not going to happen like you want it to. The cost of AI tokenization (which is where the huge costs are coming from) will go down drastically in the next 5 years. Additionally, the AI costs are (and have been) driving private LLMs which will also change the cost/benefit landscape. Private LLMs will be the crown jewels of these big banks - not the current AI vendors. In other words, the bubble "burst" isn't going to happen in the way that would bring back a big wave of hiring humans.
Until the next consent order which will likely be caused by AI errors. Then mass hiring will start again. Rinse, repeat. Been going on over a decade.
@ag And that is exactly why they have 13 levels of executive rankings. Every state side manager has an Indian mirror.
Offshore may have left lower unit costs, but any such savings were lost in the inevitable growth of overhead.
Citi already offshores to the tune of 70,000 - one of the biggest offshorers - up there with the big tech companies in regards to number and scope.
Only a matter of time before they realize AI spending is higher than the cost of employee salaries. Can’t wait for this bubble to burst.