this post was submitted on 18 Oct 2026
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[–] prime_number_314159@lemmy.world 8 points 4 hours ago (2 children)

If AI makes you twice as productive, and there's fewer taxes on spending money for tokens than there is for spending money on salaries, the rational amount for a corporation to spend on it is more than a human's entire salary, per person working with it.

Naively assuming corporations approximate rational actors, and AI does measurably improve productivity, this implies a gain of roughly 2% if these employees are earning federal minimum wage, or well below 1% if they earn average software developer wages.

Maybe their contract deliverables are poorly suited to this use case or something, but if they are given a fixed amount of money to produce some software item, then it makes sense to prioritize productivity per dollar.

[–] SpaceCowboy@lemmy.ca 1 points 1 hour ago

How many companies allow their employees to also be employed by their competitors?

Your idea of an AI being like an employee only if there's an AI company that will agree to an exclusive contract or at the very least respect data ownership and respect privacy. Is there an AI company that's like that?

[–] j_j@muenchen.social 4 points 4 hours ago (1 children)

@prime_number_314159
Maybe their business model does not depend on productivity. If the rate they charge for a developer with AI and without AI is approximately the same, they rather sell two people than making one more productive.
@FirmDistribution

[–] boonhet@sopuli.xyz 2 points 2 hours ago

Generally in the consulting business you'd just have your employees bill more hours than actually worked if they're being more productive than average. Obviously without telling your clients.

For government contracts it's not unusual that the agreed upon hours estimate is what is billed regardless of whether you actually spend more or less time.

[–] RememberTheApollo_@lemmy.world 4 points 4 hours ago* (last edited 4 hours ago)

“You must use AI!”

“No, no, no, no….not like that!”

Just trying to shoehorn profit into a system that was never going to deliver one in the first place.

[–] SeductiveTortoise@piefed.social 9 points 6 hours ago (1 children)

Why even bother at all? What can you do with those tokens? Ask for the weather twice?

[–] Epp@lemmus.org 7 points 6 hours ago (7 children)

The Haiku 5.5 model is actually quite inexpensive. I've used it to implement multiple features this month and have only spent $4 of my $20 monthly budget.

[–] SeductiveTortoise@piefed.social 9 points 6 hours ago (1 children)

The legacy code I'm managing is a clusterfuck of the highest order. Even Sonnet struggles to analyze it sometimes 😑

I'm happy this is only a small part of my job, but oh my...

[–] themaninblack@lemmy.world 6 points 4 hours ago (1 children)

Same. AI has fallen down repeatedly trying to analyse both of my repos. And they were written by a bad human originally. The problems are all the same, except AI will get you spaghetti faster.

[–] Epp@lemmus.org 1 points 2 hours ago

That is a pitfall that is difficult to mitigate. When using these models your own code base is the primary input, and it will match the style. Garbage in, garbage out. It may be worthwhile to refactor prior using a model. Even having intelligible method and variable names can make a difference. Maybe do a sweep of simple renaming, and adding supplemental explanatory comments, then you might get better results?

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[–] joey_builds@eviltoast.org 9 points 7 hours ago (1 children)

The $29 figure is doing a lot of quiet work in this story, because that's exactly what a Pro plan costs. So the real message isn't really a budget cap, it's 'stop expensing API tokens and expense a subscription instead'. I'd bet a chunk of that $1,000 spend was people wiring API access into internal tooling and prototypes, which feels productive right up until finance sees the invoice and has no idea what any of it maps to. The part that'll actually sting is that this is how a lot of shadow automation dies: not because it didn't work, but because nobody could explain the line item. At least a hard cap forces the conversation that should've happened months earlier.

[–] Wispy2891@lemmy.world 2 points 5 hours ago (1 children)

But anthropic and the others don't give subscriptions to enterprises, only tokens at full API prices

[–] BlackSwan@lemmy.blahaj.zone 1 points 4 hours ago (1 children)

Not quite true, for low seat organizations there's a fixed rate Teams plan

[–] EdyBolos@lemmy.world 1 points 2 hours ago

Yeah, but Accenture is anything but a low seat org.

[–] WesternInfidels@feddit.online 24 points 9 hours ago (5 children)

If you're spending $1K per month on LLMs -- putting aside whether this is productive or ethical for a moment -- wouldn't it make more sense to just pony up the $5K-$10K or so that it would cost to provision a private, local model? Might that not actually be superior in terms of corporate security?

[–] mirshafie@europe.pub 9 points 5 hours ago

Not at the moment. It's definitely cheaper to buy LLMs as a service than running an in-house server hall. Anthropic and OpenAI are running at a loss, you know.

Now, risking to lose your data to the service provider is another thing.

[–] Fiery@lemmy.dbzer0.com 1 points 3 hours ago

We have a few dgx sparks in the office that are gathering dust right now because nobody wants to bother with them (and because IT doesn't allow them on the network because Linux is scary so they're a pain to get set up).

Matching the level of productivity of frontier models on the local models is possible to a limited degree (depending on the exact task), but takes getting used to. For the local models you have to lean into the fact that tokens are 'free' so its fine to burn a lot of them. (Whereas with frontier models the recommendation is to take a higher model for complex tasks because a lower would take more tries to get it right)

[–] BigPotato@lemmy.world 7 points 6 hours ago

Look at it this way, if I pay Open AI $1k a month, their people make sure it works they month. If I let Joe from finance spend $10k on computer parts, Joe needs to ensure that it runs or I need to hire someone who is knowledgeable on local models. If I'm a simple firm, $12k a year might be cheaper because someone else makes sure it works and I can fire Joe when the fancy autocorrect loses a bunch of clients by falsifying work. Then I don't have to spend even bigger bucks hiring a new Joe because no one knows how to work the damn server he replaced the break room with.

[–] frongt@lemmy.zip 15 points 8 hours ago (3 children)

Definitely. We do this at my job. But a server big enough to provide a comparable service would cost at least $30k. And you likely need more than one. And you still need someone to maintain it.

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[–] plz1@sh.itjust.works 3 points 5 hours ago (1 children)

I didn't realize the business plans were token metered differently from the Pro plan I've been on for a while. $20/month, and it has session/weekly limits, but I rarely hit them, and I use it, a lot.

I do wonder if this will encourage businesses to branch out into running local models for simpler tasks.

[–] boonhet@sopuli.xyz 1 points 2 hours ago

You can get plans as a business too, but then it's per user, so if your plan has $200 worth of "usage" per user and one uses $0, that does not mean another can use $400 and you still have to pay for the non-user's $200, or you can use API pricing to pay for exactly what your users use, which for OpenAI and Anthropic is egregious. You get like 10x more per dollar with the Chinese models. And some of those providers ALSO have plans that make it much cheaper.

[–] crunchy@lemmy.dbzer0.com 176 points 13 hours ago (5 children)

Alternate headline: C-Suite Execs Come To The Realization That AI Costs Money

[–] yamper@piefed.social 23 points 10 hours ago

i saw a post that was something like "youd think the cocaine class would understand why the first hit is free"

[–] dan1101@lemmy.world 69 points 12 hours ago (12 children)

And it's going to cost a whole lot more once the investments dry up and they're going to have to actually pay for all the data centers under construction.

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[–] cecilkorik@piefed.ca 49 points 12 hours ago (4 children)

The title is misleading. They didn't cap it, they just declared that if you are spending more than that, you have to be able to explain what you're spending it on and why, giving it a business reason and a project to associate the costs to, which I expect almost all Claude users at Accenture probably can. This is simply an accounting change, not a company-wide shutdown of Claude.

Heavy use remains possible, but it now needs a budget owner.

[–] corsicanguppy@lemmy.ca 4 points 6 hours ago

explain what you’re spending it on and why, giving it a business reason and a project to associate the costs to

I love these chilling effects

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[–] AbsolutelyNotAVelociraptor@piefed.social 117 points 14 hours ago (1 children)

Wait what? How? But wasn't AI the thing to make business save tons of money by replacing workers with an almost free "artificial worker"??

Are you telling me that, as everyone and their mothers were saying, this was just a lie? Who could've thought?!

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