The point is that if this article is correct about the assumption that AI is capable enough to reduce the friction of consumers rationally comparing options for a far wider basket of goods, then competition will reduce prices. No company wants to reduce prices if they don't have to -- their hand is forced by declining market share (or, with discounters, price reductions are a deliberate strategy to increase market share and absolute profit).
The bull case for AI and consumer welfare is 1) turning more markets into "perfect competition" like airline tickets, and 2) driving actual prices lower because the marginal cost of production is lower with less labor. Even if real inputs don't change, removing labor will reduce marginal cost (which implies that you'll see the largest price declines in labor-intensive industries).
Well-written; seems like an expanded and more detailed version of the Twitter essay that made the rounds a couple weeks ago.
One thing this piece doesn't contemplate is deflation. Competition will still exist in this world; if friction decreases and renders switching costs lower for a wider variety of industries, while AI efficiencies improve margins, prices in those markets will be competed down to a substantially lower marginal cost floor.
In other words, people may make less money, but goods in industries which benefit from AI should become cheaper in a growing set of competitive markets. The magnitude of the impact on prices should correlate with the magnitude of the employment impact; the better AI is at taking our jobs, the cheaper prices should get for an ever wider basket of goods.
Universities with large endowments still charge tuition. The available proceeds from appreciation of the trust may not be enough to cover their operating expenses.
Branch | Ecommerce Product Manager / Hybrid PM + Dev | Remote Friendly EST (NYC / Toronto Preferred)
Branch makes and sells work products for remote workers and growing teams. We're looking for a Digital Product Manager or hybrid PM / dev to lead the development of our ecommerce site and systems. You’ll ship beautiful, functional and accessible commerce experiences addressing both our enterprise and DTC customer segments, as well as full-stack applications to support our operations and broader enterprise ambitions.
As the only product management hire at Branch, you’ll have the opportunity to lead a product practice at a well-funded and rapidly-growing startup pursuing a unique opportunity that anchors in online commerce and extends far beyond it.
What we're looking for: as a pure PM, 2-5 years of relevant product management experience (preferably at a high-growth ecommerce startup) OR experience founding an ecommerce business, reps managing a sprint planning process and owning a product roadmap, deep knowledge of Shopify Plus and the Shopify ecosystem, strong portfolio featuring experience shipping exceptional features that users love, and comfort shipping low or no code features. We would also be very excited to hire a developer with 2-4 years of front-end development experience, ideally within the Shopify Plus ecosystem, with an interest in pivoting to product and a willingness to plan and build at the same time.
Open to any remote candidates in EST (or willing to work those hours), with NYC and Toronto preferred. If interested, email hn [at] branchfurniture.com with a few sentences about your background and interest, along with your favorite and least favorite things about the Shopify platform.
The bull case for AI and consumer welfare is 1) turning more markets into "perfect competition" like airline tickets, and 2) driving actual prices lower because the marginal cost of production is lower with less labor. Even if real inputs don't change, removing labor will reduce marginal cost (which implies that you'll see the largest price declines in labor-intensive industries).