this post was submitted on 14 May 2026
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No higher ROI AND they now have a mission critical dependency on a powerful third party (rather than on the far more fragmented and generally weaker counterparties which are employees).
Even on pure business terms and not even considering the longer term accumulation of problems and hence fall in returns over time due to second order problems of using AI in certain areas (i.e. the consequences of the much higher high-severity-error rates of AI compared to even barelly trained humans or the inability of AI to learn and improve) it's a seriously incompetent choice.
I mean, you can excuse a Manager for not understanding the higher level structural problems of AI given how much the messaging around it for non-techies so far has just swamped people with "butterflies and rainbows" views on AI, but considering the risks of dependencies on third parties is a central skill for any decent Upper level manager as is looking at what an investment is returning and pivoting when it's not delivering.