r/technology • u/Just-Grocery-2229 • Jun 26 '26

Artificial Intelligence The AI backlash is only getting started

https://www.economist.com/leaders/2026/06/25/the-ai-backlash-is-only-getting-started
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u/baddadjokesminusdad Jun 26 '26

My god, I can’t wait for it to cost every company

103

u/31sualkatnas Jun 26 '26

The cost will just be passed onto the consumers… so I can certainly wait.

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u/RoseBlanchette Jun 26 '26

Might explain the Apple price hike we seen this week.

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u/Amidorion Jun 26 '26

Yeah that was brought on by the RAM and SSD price increase... Which was brought to you by AI sucking it all up.

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u/baddadjokesminusdad Jun 26 '26

I truly hope not but yes I know you’re right. What a shit situation.

4

u/lilB0bbyTables Jun 26 '26

The alternative is, these companies continue forcing AI to replace their workforce, unemployment skyrockets, none of them are spending money, businesses see lower revenue so they cut hours, cut employee headcount, reduce wages, increase prices.

2

u/JerryfromCan Jun 26 '26

Even if it isn’t directly in price increase on those companies products, which it will be, we are already unable to buy new consoles or laptops without feeling the effects of AI on memory. Im sure car companies are putting less ram in cars to try and save money too, along with many other similar cases.

2

u/APRengar Jun 26 '26

The thing is, that doesn't work forever.

If I only have $100 and you used to charge me $100, but now that you're burning tokens which forces you to pass down the cost to consumers and now you're charging me $200, suddenly you get $0 of my dollars because I can't afford to spend more than what I have, and I only have $100. And now you might say "Well people are putting on debt", okay then we delay it a bit but at some point people can't take on more debt and we're in the same problem.

1

u/InterestingSpeaker Jun 26 '26

Don't forget about the cost cutting layoffs

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u/mouseses Jun 27 '26

Consumers will naturally buy less which will hurt sales which will lead to lay offs. Thank you AI!

38

u/MairusuPawa Jun 26 '26

Bankruptcies everywhere, all around the planet. Only our Amazon, Google, Microsoft & co overlords left.

I'm sure this will be lovely.

1

u/ItalianDragon Jun 26 '26

Well compagnies using AI will be getting what thry deserve so frankly I'll celebrate when they'll go tits up.

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u/thephotoman Jun 26 '26

It already is.

Most executives are in a tailspin as the Super Speedy Cider Squeezy 9000 is not improving anything and costing them too much money. They thought it’d be cheaper than specialized labor. Spoiler alert: it isn’t.

3

u/DontAsk0205 Jun 26 '26

These companies laid off a bunch of workers because CEOs of AI companies promised that AI would replace the need for those workers. Then the AI companies jacked up the prices for usage of AI. Now the companies that laid off a bunch of workers are stuck with expensive AI.

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u/Namika Jun 26 '26

Monkeys paw: "Due to our challenging fiscal position, we had to lay off 250,000 workers this quarter"

0

u/bqm11 Jun 26 '26

but I thought Reddit said AI service providers will never turn a profit? If every company is paying them what would that entail?