> Adopting AI tools that somebody else created, and are equally available to your competitors, won't increase your revenue or margins
The only way more efficient operations doesn't make margins go up is if prices go down. Is that what we're seeing?
The only way more efficient operations doesn't make margins go up is if prices go down. Is that what we're seeing?
https://www.accelerance.com/blog/2026-outsourcing-rate-trend...
https://www.reuters.com/world/india/ai-reshapes-indias-it-se...
> The only way more efficient operations doesn't make margins go up is if prices go down.
But in general, it is not true that more efficient operations + unchanged margins = observable lower prices. Especially when the mere existence of a technology can make non-adopters' processes overall less efficient. For example, if there is a RAM shortage, and storage becomes more expensive, then SaaS subscription prices will increase, even if all vendors adopt AI to make their operations more efficient.
So now you’ve got to maintain and manage all those new lines of code, which becomes a huge O&M budget problem. And it’s the wrong color of money.
And all that money you think you saved now has to get paid out the other end — with oodles of interest.
This is going to be a very expensive lesson for companies to learn. You can’t just vibe code your way into the future in any kind of a sustainable way.
Cheaper as in the customer who wants to _buy_ software is not willing to pay a high price for it.
It might become a massive problem for the people who use AI to _sell_ software, I don't think we disagree on that.