And your statement of it is incorrect. It can result in greater demand, but it's not about resulting greater resource usage.
Some minority of efficiency improvements can sometimes lead to greater resource consumption, but overall efficiency does result in less resource usage.
This is just saying throughput is increased, yes? The time to train, and thus iterate (i.e. dialing in hyperpaprams) will decrease.
Ie: more efficient steam engines lead to both an increase of steam engine throughput as well as coal consumption, an increase in AI efficiency can lead to an increase in training throughput and energy consumption.
The paradox is a result of prevalence scaling faster than efficiency and efficiency driving prevalence.