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AI is proving to be costlier for companies, spending more on humans than humans

SPIL
Nepal Life

Kathmandu. The world’s biggest tech companies are undergoing a big change right now. At a time when companies are spending heavily on artificial intelligence (AI), the exodus of employees is also increasing rapidly.

According to recent reports, many companies are now spending up to $640,000 per month on AI per employee. This includes the cost of AI tools, cloud services, data processing, and computing power. The focus of companies is shifting from humans to machines.

Esewa
Crest

Reports have revealed that AI is becoming a major cause of layout in the US. By 2026, the number of AI-related layouts will exceed the total number of layouts in the last two years.

Many large companies have reduced their workforce and invested the same amount of budget in AI infrastructure. This means that companies now want to do more with fewer people.

AI has become a long-term investment for companies. Once the system is ready, it works continuously, doesn’t get tired and reduces the need for a large team. For example, where a company previously had to maintain a large team for customer support, that work is now handled by an AI chatbot. The use of AI in data analysis is also increasing rapidly. That’s why companies are investing in AI systems instead of employee salaries.

This change is affecting those who are employed the most. Entry-level and mid-level jobs are particularly vulnerable. Experts believe that only those who know how to work with AI will be able to survive in the future. This means that you will now need to understand not just skills but how to work with AI.

In simple terms, where 10 people needed to do the same thing before. Now 2-3 people and an AI can complete the same task. This means that jobs are not being lost. But their way of working is completely changing.

On the other hand, companies that started investing in AI are now retreating. This is because AI is doing more expensive work than humans.

Many companies, including Uber and Microsoft, have acknowledged that AI is becoming more cumbersome to pay bills. This is because AI doesn’t work for free and needs credit. At the corporate level, millions of credits sometimes expire within a month. Many companies are finishing their annual AI budgets within a month.

However, companies that have recently started adopting AI are firing people at a fast pace. Experts believe that in a few years, as AI becomes increasingly expensive, companies will return to recruiting people.

AI presents both opportunities and challenges for companies. On the one hand, it is making work easier and faster, and on the other hand, it is completely changing the way it works. –Agency

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