The Digital Press

The article challenges the popular belief that AI will massively expand software markets by fully replacing human service jobs and capturing their entire salary costs. Instead, it argues that businesses treat AI as standard software and thus pay only a fraction of the equivalent human wages, limiting market growth.

Why it matters: AI replacing labor does not translate to software revenues equaling replaced human salaries; software pricing caps revenue capture.

The big picture: Venture capitalists promote an exaggerated AI narrative to attract funding, despite uncertain real-world economic impact.

Stunning stat: AI software captures roughly 11% of the equivalent human labor cost in a sales outreach example, far below expectations.

Commenters say: Readers debate AI’s true market impact, noting it democratizes access and changes pricing dynamics but won’t fully replace human teams soon.