The Most Expensive Way to Use AI

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The most expensive way to use AI is to fire somebody for it. That sounds backwards, so here’s the math a lot of companies are quietly running right now and hating the answer to.

You let go of a person earning, say, 55,000 dollars, because the AI can handle most of what they did. It feels like a saving, and for about six months it is. Then the bill arrives. The AI did about 60% of that job, the repeatable part. It could not do the other 40%: the judgment calls, the weird exceptions, the customer who needed a human. So you go to hire that back. Except now you’re not hiring a 55,000 dollar person. You’re hiring someone who can do the hard 40% and manage the AI on top of it, and that person costs 75,000. Add recruiting, training, and everything the person who left knew that nobody...

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