AI VS Humans: ‘Humans are much cheaper than AI’, giant tech company NVIDIA told the reality, then why are layoffs happening? – ai vs humans why nvidia says humans are cheaper than ai and why tech layoffs are happening despite high cost of compute
AI VS Human Economic Viability : A strange contradiction is being seen in today’s times. On one hand, companies like Meta and Microsoft are laying off thousands of people, while on the other hand, billions of dollars are being spent on AI like water. Because of this, a common belief is formed that AI is being prepared to replace humans. However the reality is something else.
In fact, giants like Nvidia say that today the cost of running AI is more than the salaries of the employees. It means that humans are much cheaper than AI. However, companies are running towards AI despite huge expenses and technical shortcomings.(REF.)
Humans are cheap, AI is expensive
Regarding AI and humans, Brian Catanzaro, Vice President of NVIDIA, says that for them the cost of AI is many times more than that of humans. A research by MIT also confirms this. Currently, only 23% of vision-based jobs are economically viable using AI. In the remaining 77% of the cases, it is still cheaper to get the work done by humans.
Despite this, according to Morgan Stanley, tech companies have announced to spend $740 trillion on AI infrastructure this year, which is 69% more than last year.
For my team, the cost of compute (power and resources to run AI) far outweighs the cost of employees.
Brian Catanzaro, Vice President, Applied Deep Learning, NVIDIA
Huge budget despite technical problems
The rising cost of AI has worried many big executives. Uber’s CTO says that due to the adoption of AI tools, their budget has increased much more than before. The problem here is not only of cost but also of trust.
Waiting for AI to become cheap?
According to the report, expert Keith Lee believes that this is a matter of short time. Today, hardware constraints and power consumption are making AI expensive, but Gartner’s report suggests that the cost of running large AI models could fall by 90% in the next four years.
It has also been said in this report that in future AI companies will take money on the basis of usage. Apart from this, AI can be thought of replacing humans only when it is cheap and does not make mistakes. At present this does not seem to be happening soon.
About the authorgrand bhardwajBhavya Bhardwaj is an experienced journalist from the world of tech and gadgets and is currently associated with Times.com as a Digital Content Producer. Active in the field of journalism for the last 11 years, Bhavya has closely observed and covered the changing landscape of technology, gadgets and consumer electronics. While working in reputed organizations like Zee News (DNA), India News, UC News, Oppo India and ByteDance (TikTok), he has brought technology to common users in Hindi language. He has improved his understanding of technical intricacies and users by working for global tech companies like Google and WhatsApp (Meta). As a tech journalist, Bhavya specializes in reviews of new gadgets, launch events and changes happening in the world of AI. Bhavya believes in reading and understanding about AI and using it to deliver useful things to people. Also, he not only keeps a keen eye on the latest smartphones, but he also examines audio devices and wearables in depth. Bhavya’s skill is to convey complex technical information to the readers in simple and colloquial language, so that even common readers can easily understand the new technology. Bhavya also has expertise in conveying useful tips and tricks to people in simple language using different technologies. Bhavya Bhardwaj graduated in Mass Media and Creative Writing from Jamia Millia Islamia University. He holds a Master of Journalism and Mass Communication (MJMC) degree from Guru Jambheshwar University, Hisar. His educational background gives him the strength to present technical news in a factual and creative manner. He doesn’t judge technology just on the basis of specifications, but looks at it from the perspective of what kind of experience a user will get with it. He believes that the real purpose of technology is to make life simpler and this thinking is also reflected in the way he describes technology.… read more
