this post was submitted on 16 Jun 2024
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Technology

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[–] [email protected] 4 points 2 months ago

Replacing a human with any form of tech has been a long standing practice. Usually in this scenario the profitability or the efficiency takes a known pattern. Unfortunately what you said is the exact way the market always operated in the past, and will be operating in the future.

The general pattern is a new tech is invented or a new opportunity is identified, then a bunch of companies get into the market as competing entities. They offer competing prices to customers in an attempt to gain market dominance.

But the problem starts when low profit drives some companies to a situation where either they have to go bust or dissolve the wing, or sell the company to a competitor. Usually after this point a dominant company will emerge in a market segment. Then the monopolies are created. After this point companies either increase the price or exploit customers to get more money, and thereby start making profits. This has been the exact pattern in tech industries for several decades.

In the case of AI also, this is why companies are racing to capture market dominance. Early adopters always get a small advantage and help them get prominence in the segment.