Why AI is booming, but productivity isn't

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Written by AI

TLDR
Chamath argues AI ROI depends less on token costs than on redesigning work, deleting bad processes, and reducing human coordination bottlenecks.
Best for
Owners deciding where AI can produce a measurable return inside an existing business.
The tip
Question, delete and simplify a process before speeding it up or automating it.
What you need
  • a workflow to review
  • a way to measure cost and value
Start here
  1. Pick one workflow where AI is already being used.
  2. Delete unnecessary approvals and steps before automating anything.
  3. Measure whether saved production time survives coordination and review.

postThe source

Chamath Palihapitiya@chamath

Why AI is booming, but productivity isn't

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Highlights
  • AI lowers the cost of doing things, but does nothing about whether they were worth doing in the first place.

    Cheap execution does not repair bad work design.

  • The tools were identical. What separated the leaders was how they rebuilt their work around them.

    Workflow redesign created the gap.

  • Question every process and requirement Delete what you can Simplify what’s left Speed it up Only then automate.

    The proposed order for automation.

Excerpt

In June, I wrote that vibe coding was dead and that ROI-driven analysis of AI was about to go from a nice-to-have to a necessity. Here's what AI ROI is and why it's tricky to see in GDP numbers so far: At its simplest, we need to understand two metrics: cost and value.

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