I agree with a lot of what's said here, but don't agree fully with the doom and gloom.
The job losses have already happened. Companies have laid off quite a bit of employees because they wanted to get ahead of the AI wave. They thought they could replace most of their engineers, and turn 1x into 10x. The only field that has benefited is the parasitical companies that have sprung up around these AI services trying to rentseek their way to profitability. So when the bubble bursts, laid off talent will be able to demand a premium to come back and fix the smoldering remains.
That said, it's still going to cause reasonably bad damage as a whole because so much of the tech industry is dependent on angel investors which behaves in almost cult-like ways when it comes to trying to find something to fund.
The job losses were entirely from post Covid earnings expectations falling and from anti-inflationary efforts like the fed increasing rates. Very little if it had anything to do with AI.
The two are intrinsically tied together because many departments eviscerated their engineering talent while leaving their massive AI investments and teams untouched. That's entirely my point and is a particularly hard one to refute if you look at who is doing the layoffs and in what departments.
The job losses have already happened. Companies have laid off quite a bit of employees because they wanted to get ahead of the AI wave. They thought they could replace most of their engineers, and turn 1x into 10x. The only field that has benefited is the parasitical companies that have sprung up around these AI services trying to rentseek their way to profitability. So when the bubble bursts, laid off talent will be able to demand a premium to come back and fix the smoldering remains.
That said, it's still going to cause reasonably bad damage as a whole because so much of the tech industry is dependent on angel investors which behaves in almost cult-like ways when it comes to trying to find something to fund.