"To explain why, Levie pointed to economist William Stanley Jevons. In 1865, Jevons observed that more efficient steam engines didn't curb coal use in England but drove it higher, as cheaper energy fueled new industries - a dynamic now known as the Jevons paradox. Levie said the same pattern has repeated itself in computing, with each major wave of cheaper technology - from mainframes to minicomputers to PCs - dramatically expanding adoption."
"Cloud computing followed a similar path, erasing many of the advantages large companies once had in procurement, infrastructure, and maintenance, and putting tools like accounting software, CRM systems, and marketing platforms within reach of nearly any business, he said. Those efficiency gains automated deterministic work, Levie said - tasks with clear rules and predictable outcomes, such as accounting, record-keeping, scheduling, and data processing, where the same inputs reliably produce the same result."
AI will sharply reduce the cost of knowledge tasks such as writing code and reviewing contracts. Cheaper knowledge work will make many projects economically viable, prompting companies to undertake more work and create jobs. Historical precedent shows increased efficiency can expand overall demand, as seen with steam engines and successive computing waves from mainframes to PCs. Cloud computing democratized tools and erased large-company advantages. Efficiency gains have automated deterministic tasks with clear rules and predictable outcomes. Industry views remain divided on whether AI will reshape or eliminate white-collar work.
Read at Business Insider
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