Why Major Tech Firms’ Sudden Layoffs Are Signals of a Deeper Economic Collapse

Eleni Floros: Welcome back to Fintech Bytes where finance, tech and reality collide. AI is dominating the narrative right now. Markets are rewarding it. Companies are reorganizing around it and capital is pouring into anything with AI attached.

But at the same time, we're seeing a different story play out. Mass layoffs at companies like Meta and a prompt cuts across the industry, sometimes delivered in ways that feel almost algorithmic themselves. like early morning emails shutting off access before the workday even begins. So today we're asking if AI is the future, what's happening to the humans in the system right now?

And what are the real costs, economic, environmental and social of building this AI first world? Let's get into it. AI is being framed as the next industrial revolution. But at the same time, companies like Meta have gone through major layoffs.

How do those two trends coexist? Well, I'm not gonna sugarcoat anything. We're heading straight into a train crash because what's going on, it doesn't make sense whatsoever. I mean, you cannot fire people and cause this great disappointment and disillusionment because when people get fired, ⁓ it's not the people that work there, it's the people that are around, the families, the friends.

and then the community and people at us, we're looking at most people are standing on the sideline is like, when am I next? You know, because you might not work for Facebook, you might work for another company, but it's not only gonna go on the highest level at tech companies, it's gonna cascade down all the way down to the bottom. Skilled workers, delivery drivers, people are gonna get replaced by robots, by automation and so on and so on. One of the biggest ones, ⁓ Now let's not talk about the tech companies like Facebook which is firing 8000 people just last week.

Let's about Amazon. Amazon Jeff Bezos, the CEO has said that he wants to replace all human repetitive tasks robots because he says it will make the company more efficient and better. He doesn't realize when people start hearing that people got fired from Amazon ⁓ trying to make decent living Because it is a certain dignity, pride and purpose of making a decent living, earning a living. And when you hear that people are going to get fired, the first thing that people are to do, and I don't know about you, but I'm going to do that, is people are to start buying Amazon stuff.

Why should you spend your money at a company that doesn't respect humans, fires them at random, and you know, any regard to the consequences, what they do to the community, what they do to the families, and what do they do to the economy? And the economy as it goes is going to collapse because as we find people and we don't need to fire 90 % of the people, if you have unemployment 10 and above, we're at economic recessions and crisis is coming our way. It's not like a little thing.

Now just imagine you take, if you narrow it down to the youth, the youngest, it's 15 to 25. There is unemployment going up to 30%. Those are unheard of numbers. We're talking about 1936, know, like World War I time, like, you know, the Great Depression stuff.

No government can afford that. And then people are going to revolt. People are going to... You're going to have civil unrest.

People are just going to commit crime and become violent because it doesn't go that way. And people now, because everybody, when the sun is shining, you never think that there is going to be a storm coming your way or rain or whatever. But we're not just looking at a storm. We're looking at a tsunami combined with a storm all in one go.

And it's going to be disastrous and no government will be able to do anything about it because they will not have the means. And now here comes the catch. So the tech companies which are causing the problem, they have the solution. And what is the solution?

they will invest into the government. So they will kind of buy the government, they will control the government. So they will just give money, say, know, here, look, okay, there's a budget deficit here from the, you know, we'll help out, you know, and we get people ⁓ on UBI. And once we get, once they get us on the drip, the UBI drip and people get used to it, people just go, say, well, you know, I can just stay home.

It was, it's kind of the equivalent of... COVID and everybody went to lockdown. When you first heard about it, can stay home officially and legally. You're like, wow, let's do it.

And then you did that for a week and then two weeks and then you started getting weight and started getting less motivated. And then people started saying, well, how long is it last? And then you started having COVID fatigue and then it ended up almost in COVID rage where people said enough is enough. And that's why they stopped actually when you think about it.

COVID just evaporated over the day. It came in like that. I'm at furlough. Nobody's wearing masks anymore either.

And then all of a sudden it just disappeared. Nobody wears masks, no social distancing. It's like a light switch on and like a light switch off. But with AI there is going to be a light switch off and then it's not going to come on again because we are going to then become dependent on private capital.

It's insane. So yeah, it's... Yeah. Mm.

That's a scary thing. And that kind of leads me to my next question because there have been stories of layoffs happening via early morning emails such as Oracle, where they let go 30,000 staff and sudden access cuts. So what does that say about how tech companies are operating right now? It's that race to AI supremacy, I think.

Basically it's a total disregard and disrespect to workers, for humans. It is absolutely a no-go. Because you don't just ⁓ people 30,000, which is a massive amount, and then ⁓ say well... ⁓ for humans.

And bear in mind, some have worked there 10 years and then to be just like go through an email is quite a disgrace, I think. Yeah, it's despicable behavior and you can't do about it. to the sickening part is they fire people, well we have to because we need to ⁓ reduce our because we have infrastructure ⁓ investments to do and all that. Nobody cares about that.

But it was the best performing year for Oracle, frankly. Yeah, yeah, for all the tech companies, it's been record years. mean, if you just go into a five-trillion market cap, Apple, the CEO, he just resigned yesterday. He made Apple into a $4 trillion company.

And we're talking about all these trillions and trillions and trillions. And people are starving by the millions and by the billions because we don't have the $1 to buy food because in a lot of places in the world, $1 will buy you food if you, okay, not if you live in New York. But if you live in Africa, Latin America, some Asian countries, one dollar buys you food. You live like a human being.

So, and the way they go about it, then they like, okay, we invest in infrastructure, AI, and this is really the AI washing. I don't know what you want to call this. So what they say is like, okay, we fired 30,000 people today, but hey, don't worry, there's going to be more new jobs than jobs lost, okay? Which is a lie.

It's a fallacy, and they know that. And I'll give an example. So we're going to build data centers, 11,000 data centers, and we're going to invest billions and billions and billions and billions and billions and and and and and and and and and and and and and and and and billions and billions and billions and billions and billions and and to sweeten it out a little bit, to say well we're gonna open up a head office in London and Thropic said well if they do it, we're gonna do it so they're also gonna put let's say a couple hundred people there so you know they're gonna open up an office, open AI and they're gonna supposedly employ 500 but he's a proven pathological liar so he says 500 he might mean five or 50 people or 15 you know he thinks he's misunderstood Because what are these people going to do in London that they can't do where they are in the US?

And the crazy part is, we're talking about billions being invested into data centers, but how many people do these data centers actually employ? And they employ 10 to 50 people on an average data center. So you find 30,000 and you employ 50 and that kind of balances everything out. Even the big ones.

They will employ between two to three hundred. We're talking the mega projects that nobody wants in their backyard because of the pollution, because of the noise pollution, because you'll hear the computers zooming all day long. They zoom in the background. People complain about it.

They don't want that. And then, of course, the energy crisis. You cannot afford to heat your house because the energy price has gone up and the one that's gobbling up all the available supply. are the big tech companies and they're going to at best, at best, two to three hundred.

So let's take a round number between fifty and hundred. So from the eleven thousand data center, you're going to have fifty or hundred people per data center employed and then you're going to have so many people that are going to be unemployed. There is absolutely no sense. There is no balance.

This is just disgrace. ⁓ And then to go out and keep a straight face and tell everybody, well, we're doing it because AI is our future and we're going to solve a lot of our problems. Let's start solving the problems now before we build those data centers, which are going to be outdated before they even build. So let's focus with what we have right now.

We already came out with MIFOS. I'm sorry, we came out with MIFOS, which is such a powerful AI model that it can... hack into computer systems. I mean, it's like the ultimate cyber attack machine.

And that's why they don't bring it out and they have asked governments around the world and governments in turn have asked banks and financial institutions and everybody to come and talk about what can they do to protect something from like that happening. So on one hand you have this total ⁓ job displacement, unemployment, but on the other hand you have to cheer up and say, well, it's all in the name of the Lord and the AI God. And it's silly. ⁓ is the worst thing is that we're the safeguarding rails, you know, I mean, I'm still so surprised that governments aren't stepping in when they hear things like this, and that this race just keeps on going and nobody seems to be stopped.

And we're seeing these massive investments in data centers. Why is AI so dependent on physical infrastructure in a way past ⁓ softwares? waves weren't. Well, many reasons, but will start with the most explainable, not justifiable, the most explainable reason is what every big wants, ⁓ what every investor because ⁓ as we are about, we don't have money for this and we don't have money for that.

⁓ There is trillions trillions of dollars swirling around in the financial markets ⁓ and they don't how to deploy that kind of money because so much money. that is in Grand Cayman, Switzerland, even in London, you don't have to go anywhere, it's all over the world. And it's called private capital, which comes from trust funds, which are not paying any taxes. And this money is just sitting there and they can put it in the bank and get 1 % on it or 5 or 10 depending where they are, or they invest it into the companies.

But what is the biggest problem in commerce, in business, in corporate structures? The biggest headache and the biggest challenge is HR. the human resources is the most difficult thing to manage. And any MBA professor, any university professor, any CEO will tell you the same thing.

Handling people is difficult because people get sick. Some of them don't show up for work. Some of them go on holidays all the time. Some people are dishonest.

Some people are this. And then it kind of breaks the whole frame for all the people that do do their work properly, that do show up, that do their best for the company. and just want to get paid for their time and efforts. So what does a company like Amazon want to do?

And what all the big investors want to do? They want to remove the human element on all of this. And what better way than AI robotics? And that's the sad part.

That's the true story about what's going on right now. And so while they are sponsoring the government, because if you want to become a president of the United States, you need a couple hundred million dollars of donors. to be able to even be allowed to be nominated as a president. And you only have the two choices, either you're a Republican or Democrat.

You can say I'm a Green, I'm a president or whatever, but your chances are zero to none. And the same happens in the UK and in Europe. And all these big companies are kind of buying their influence with the money that they are making. So what they're trying to do now is, they were making millions, they're trying to get away...

and get rid of the human element and replace it by AI. That's the thinking behind all of this. And that's why the governments don't do anything because they say, at least they're investing into data centers and they're spending billions. They're spending billions and they are going to create a lot of money, but for who?

It's only going to be for the investors. I think I even saw a video once where President Trump was sitting with like the most richest people at one table, Mark Zuckerberg, then Sam Altman. And he was basically just asking, how much are you investing into the US economy? But the way he asked it made me laugh because it was it's not an investment, so to speak, right?

Like you're taking away jobs, you're actually ruining the whole economy. for everyone else involved so I don't understand why. Well, a lot of people didn't notice this when Trump made it to when he got elected as president and he was having his inauguration. way it goes, because inauguration is very formal where you swear on a Bible to the rights of the and the constitution and so on.

⁓ you you sign up and ⁓ you the oath to become a president. And there a very structured way of doing things. You have the president because he's getting elected and he's getting sworn in at the inauguration. And behind him is his cabinet, the people that are going to help him do whatever he wants to do.

are the people sitting right behind him. And then after that are the corporates and everybody else. ⁓ this year, and there's videos on it and people have been noticing it. ⁓ only the tech bros that are sitting behind.

So the cabinet is not even visible. They're like completely in the back. ⁓ what do you see? ⁓ Yeah, out of the picture.

Out of the picture you see the Google Bros, see Zuckerberg, see Jeff Bezos with his wife just like she's going to nightclub, salsa club. ⁓ ⁓ after hanging out it was embarrassing ⁓ I don't mean it to make her look bad but you have to be as a woman of one of the most powerful, richest people in America. You have to be presentable, especially if you go into an official fashion show. invite like for an inauguration or a White House dinner, you don't go in flip flops and shorts.

You have to follow protocol and all that. So to me it was just mind blowing. So you see these people behind Trump, they're just the tech companies. what they...

Yeah. So what has been going on is they talk behind closed doors and that's the key point here. They talk about closed doors. trying to get a good tax rate.

And then they say, going to do this and do that. And then when they come in front of the Senate hearings where you cannot say what you want because it's ⁓ you're under oath. And if you lie, it's a federal law perjury and you can go to jail big time. And a lot of people have gone because they've gone to to Senate hearings and ⁓ congressional hearings and they have lied on tape and then they go to jail.

⁓ ⁓ When they go to that, they have the PR and the legal teams sitting right behind them telling them, well, you know, don't say this, don't say that, don't say this, don't say that, talk positive and this and that. one of the funniest, again, they talking at a Senate hearing and there was Pam Bondi, is the ⁓ attorney general the United States of America. ⁓ But she got stepped on, ⁓ She got fired, not stepped down, they tried to present her, but she got kicked out by Trump. He just told her to ⁓ funny part is they were talking about all the victims of the Epstein files.

And as in the hearing and ⁓ people want hear about the Epstein victories, she just goes off on her Yeah. but she starts talking about the SMP 500 of how it's performing. She goes off and starts saying, well, the SMP has done so good, it's getting better, and everybody just dropped jaw. Stop what you're doing.

Like, what are you talking about? We're not talking about the SMP here. Do you know where you are? This is Congress.

We're talking about Epstein and the victims. And she went on here, don't you laugh. It's comical and cynical at the same time. I've never seen that.

⁓ here we are now. Yeah. Hmm. And they're sitting right behind you.

no empathy. So this is now what the tech bros do. when you, especially Altman is like really it's been proven by a lot of people and it's a big problem because in New York one of the reporters wrote a big article it blew up in Sam Altman's face because ⁓ a lot people around Sam Altman said that he's a pathological liar. He just lies about ⁓ anything and So ⁓ if it's outside, he will say no, no, it's raining because there's a cloud there.

⁓ He just lies no reason. And so he got ousted, he got kicked out by the board of OpenAI because they said, ⁓ between them, said, does anybody want to have Sam Altman his finger on the button, which is the nuclear button? Of course not. ⁓ now the president Trump has the hand on the nuclear button and Sam has his hand on the AI explosion button.

And so they are like now in some kind of collusion. And so what he tells the investors is one thing, what he tells the public is another thing, what he tells his charities and everything else that he pretends like he's an open AI with ethics and governance, it's all nonsense. And it's only getting worse on a daily basis. So look at it really bleak.

I mean, if we don't react soon at the United Nations level, ⁓ We're going to big problems and there's another video that we need to look at. was one, he's the head of the Canadian AI Institute of Safety. I don't remember the exact word. He also went to Canadian Parliament and he talked about what is going on.

And he said, if we do not start controlling this soon, the window is going to close. And this is the biggest, biggest problem. The velocity, the accelerating velocity of all of this. and the window closing where we can still do something because once we lose control and this is the key point once we lose control we cannot get it back because you know it can really go off the tracks and that's where we are right now so it's really scary I don't want to be the bearer of bad news we have been through many situations like that before comparable to the nuclear wars and the nuclear programs that we had around the world and the atomic bomb in Hiroshima and the Fukushima reactor disaster and Chernobyl, but we came together and we signed protocols.

We did that for climate change and we were going good till Trump just to them listen America's pulling out because it's all a hoax. So with Trump in the picture and he's going to be running until 2028, unfortunately they're going to have the midterm elections where he's going to lose a lot of people in Congress. A lot of them Republicans are not going to lose their mandate and it's going to be more Democrats, but Trump is unless something happens, which is not an impossibility because What's going on in the Middle East and so on?

It it is that he is gonna be until 2028 so we're gonna have to bite on our teeth for another two years and everybody is just Sweating and then now the crazy story the crazy story that I need to ask you You know, we're going off the fintech, but I think it's important to say that there is not a big debate What? bait on across the ⁓ When was an attempted assassination on Trump, when supposedly the bullet hit his ear, it turns out ⁓ it probably was a setup because ⁓ they've been asking for the records and nobody releases the records because what people don't understand is he's bleeding and he his ear covered and they take him away.

and from that point on everything stops so the records from the hospital are classified what happens after that is classified what happened to the shooter is classified everything is classified and the craziest part what everybody says is if his ear got hit by bullet and he's bleeding how come the next day you don't see anything on his ear he doesn't have any damage so it's really a thing that's happening right now as we're speaking And I can't wait to see how that is panning out.

So what could happen in relation to him staying president until 2028 that ⁓ people from Congress invoke 25, which means they can impeach the president ⁓ saying he's not fit for office, ⁓ not for duty. ⁓ He Or if they can prove any shred of lie in the assassination attempt or anything else. Hmm. and that's why he's trying to keep everything with files ⁓ up.

They ⁓ remove So he's actually, ⁓ think might even be the reason why he's ⁓ keeping going into Iraq and Iran, mean, I'm sorry, ⁓ because as as the war is going on, they cannot remove him. And that's what Netanyahu is. Netanyahu is a war criminal. If he leaves Israel anywhere, he goes to jail.

They arrest him as a war criminal. And so even in his own country, they don't want him because they know once he steps down or he's not in power anymore, they can take him to court, he goes to jail. And the same can happen with President Trump. And that's the reason I think that they are now attacking Iran and saying, you know, they have nuclear weapons.

We need to bomb ⁓ We need to break down the bridges and the buildings and all that. It's all ⁓ ⁓ masquerading of the facts. One more thing that is important to note, only three million ⁓ documents been released, which is about half. but none of the videos have been released and it's been proven that he has entire security systems in all his homes in Arizona, on his island, in New York and he has recordings of everybody coming in and everybody going and might even have compromising material like you know pictures like which has been released from former Prince of...

⁓ what's his Prince Andrew and there might be pictures of him because he's mentioned over 1 million times in those Epstein files. So this is all coming together now and it's like a boiling pot cooker that is about to where the lid is about to go off ⁓ that might change the things and ⁓ me and I don't care what people say it's time for a regime change in the Trump administration. We cannot have a loose channel like Trump saying one day we're going to blow up Iran, the next day we finish the war, the next day we are going to attack again.

And then in the meanwhile there is another scandal breaking out as we're speaking again. Insider trading, the cronies, his insiders are trading the stock market because they get advanced information about the Americans are going to do which will either bring up the prices of energy such as oil or drop share prices. ⁓ And ⁓ just along. you know, they're making billions on that as well.

that those are the three things that are now play in the thing. And then the ⁓ bros are involved because they are providing, that's the reason why Anthropy got blacklisted by the Pentagon and ⁓ is not because he wants to work with the Department of Defense with the American government and altogether it's called the Financial Military Establishment. They are the ones that are keeping everything going because they are the ones that want to have the war so they can sell their weapons and then, uh, Anthropica can keep on going and that's why nothing gets happened on the American level.

But let's not focus on the Americans. Let's focus on what we do here in the UK. What do we do in Europe and what do we do in the rest of the world? Because if the whole world unites against America, then they gonna have to change.

They're gonna have to adapt and they're gonna have to do something. And I think that's where we... going on because Europe is already looking in that direction. So let's see, there's a lot of geopolitical things coming into play that are affecting everything else.

And by doing that, we forget about what AI could cause us, which is job displacement. It affects the unemployment of youngsters and it can affect democracy and our entire economic model that is just pushed aside because everybody else is focus on all this war noise that's going on. So it's really sad. So we'll see.

Are investors currently overlooking environmental costs like emissions, water usage and pollution because of the AI opportunity? Again, I don't want to, I'm not going to sugarcoat it as well and I don't want to be the bearer bad news. do not give ⁓ damn. No, 99 % ⁓ companies, don't care because let's be honest about it, environmental and regulations cost money.

It takes time, people, resources to follow rules. But care. simply put. It is and it always has been profit over planet and people and it's only getting worse.

Yeah, always. So there's no regard in what's going to happen to humans in society and climate change and environment and sustainability. That is totally non-important. and It's irrelevant right now as long as we can profit.

It will profit, power and growth for the private capital. That's it. That's what's going on right now. You summarized it.

if companies are cutting stuff while ramping up AI investment, what does that mean for the future workforce in fintech and tech more broadly? Well, it's going to backfire. You know, we already spoke about if you fire people and they go live on social welfare benefits, what have you, UPI, unemployment, anything that the government has to pay out, which they don't have. And then the tax base shrinks because the people that are unemployed are not paying taxes.

And mind you, 60 % on average across the world, taxes comes in, the revenue, tax revenue comes from employment. So from people paying taxes on their work. The rest, the corporate, all of that is a small part of the tax receipts of a government. So the big companies, because they know how to play the rules and they take tax advantages, tax arbitrage between Luxembourg, Bahamas, Dublin and all of that, they don't pay taxes.

or heavily reduced taxes, for example, Facebook and Google and Apple all have base in Dublin and they have these arrangements called the double Dutch Irish sandwich. I don't know what it is, but it's like this. They give each other back and forth. They send money back home.

So this profit shifting is affecting everybody. And that is at the core of the problem. When the 60 % is falling off, then the corporates and the trust, the private capital that doesn't pay tax on the wealth that they have and the gains that they make through having wealth, having assets, those people are now going forward saying, okay, don't worry about it if people get unemployed because we have the money to pay for all of this. So because they didn't pay taxes, they are going to somehow get rewarded by being able to control more more of society, which is cynical.

You can't do that. Tax everybody, everybody, a flat rate, give everybody at the point of sale, you tax them 25%. I don't see why they still, because again, have arbitrage tax VET in Luxembourg is 16 and VET in Scandinavia is 25, you know, and then in the UK is 20 and other countries is 18 and 21. So within Europe, you already have this VAT tax arbitrage.

And that's not good. You need to say everybody 25%. Now, of course, it will make prices for us more expensive, ⁓ then the governments will have money ⁓ give us the programs that we need. And one good thing I wanted to add before we ⁓ move on to the next subject, the UK agreed in principle to join the Erasmus program, meaning that European students can come and study in London and the UK...

⁓ students can go and study across Europe, which is beneficial on the educational level, universities and for the communities around the universities which are going to benefit of people coming to live there, to work there, to buy, to consume and so on and so on. And then also foster the closer relationship between the different countries because then you have a mix of different cultures, different countries, different nationalities working together, which is what we need to do on a global level.

We need to stop this fighting and conflict and go from conflict to collaboration. That's the biggest step we need to do in order to save humanity. Looking ahead, do you think constraints whether human, environmental or regulatory will slow AI down or just reshape how it grows? ⁓ It will just be ignored.

And that's the sad part about it. It will be ignored at the cost of profit again, because they're just gonna say, well, you know, need to work, because that's the narrative now. You know, we need to win the war on AI, the race on AI, ⁓ ⁓ will create employment and then we can help everybody ⁓ our country. So we need to spend this money and therefore, yeah.

You know, we need to drill for oil. We need to start firing up coal mines and the coal power plants. And ⁓ need to ⁓ start drilling again in the North Sea. And ⁓ not go to Alaska?

Because there's a lot of minerals out there. And there's a reason why Trump wants Alaska. Apart from all the minerals and all that, cooling for the data centers so you can have the power, the energy. pump straight out of the ground into the power plant.

Of course you have to refine it. And then you also have the cooling effect of Greenland. So you don't need to cool as much. And you have abundance of water because you have ⁓ ice which you can just melt down and then you have cooling plants.

So that's one of the reasons why the Americans are so keen about Greenland. It's not about It has a certain reason. know, protect yourself from China and Russia, which is just around the corner at ⁓ You know, it's opposite, Russia is opposite the US. you always have to look at the ⁓ underlying What is it that you're trying to do?

⁓ sustainability, will be ignored, really. I mean, nobody even talks about the 1.5 benchmark or goal that we wanted to, you know, ⁓ maintain the world. even talks about it.

It's just completely forgotten. It's just insane. think what we're seeing is a very real contradiction. So on the one hand, AI is being treated as the most important technological shift in decades.

But on the other hand, the way companies are executing layoffs, sudden restructurings, even those early morning emails cutting people off, it shows how aggressively resources are being redirected. So it's not always that AI is directly replacing those jobs. In many cases, it's that companies are prioritizing AI investment over everything else. So capital that might have gone into hiring product teams or expansion is now going into data centers and infrastructure.

that shift makes the business look more efficient in the short term, but it comes with trade-offs. And we've seen it with certain examples where companies have chosen the AI ⁓ and it's backfired. It didn't go well as they had planned. So you're concentrating spend into highly capital-intensive systems that also have real-world costs, especially energy and environmental impact.

And culturally, it changes things too. So when people feel like they can be replaced overnight or by strategy pivot, it affects how sustainable that model is from a human perspective. yes, AI is driving growth. It gives us productivity gains, but it's also forcing companies to make sharper, sometimes harsher decisions about where value and people fit into the picture.

So any final words from you? Well, the final word is that humans will have to stay in the loop because humans are dealing with humans. even if you go to the ⁓ simplest form, we already didn't much like when somebody called our bank and there was a chat bot on the other side. Nobody liked it because ⁓ sometimes you're you are in a foreign country and your wallet got stolen, you need a credit card to access money.

⁓ And then you have a bot telling you, come to our office in London and we can give you the card immediately. You're like, well, I am in Africa and there's no plane. You know, I'm just giving an example. So I cannot come.

Yes. Well, thank you very much for sharing that information. You're just doing great. And you mentioned that Tesla video that you sent me where you say something and it takes the wrong, everything and then does the wrong outcome.

And it keeps on going down the wrong track ⁓ you're not solving the problem. And the thing that people don't realize is AI models work on computations. They work on data. They work on numbers, zeros and ones, bits.

These are numbers. So that's why, because sometimes you have these hallucinations, ⁓ the hallucinations ⁓ mostly context. Like if you take something out of context, it has a total different meaning, which only a person can understand. And that's why It makes these hallucinations and you say to yourself, what did it just say?

It doesn't make sense what it says. for coding, it works perfectly. Why? Because coding is computational.

It is ⁓ It is numbers. So AI is ⁓ ⁓ number crunching, better than humans. But it doesn't have the element that you need for human decision making, which is discernment, critical thinking, and you need also to understand human context. human everything that makes a human human, because at the end of the day, humans want to work with humans.

And as long as we don't have this collaborative intelligence is what I call it, this collaboration between human intelligence and artificial intelligence, you will see that the with computational power will get increasingly better. There's going to be an acceleration. It's going to be an explosion in that sense. But the models that focus on human interaction, those are the ones that are going to have problems.

And that's why they're not getting, they're not seeing the adoption at the companies where they get deployed because people, first of all, don't want to use it because they know that one day might replace them. But also they spend more time trying to correct what the AI produced than actually doing the work. And so it doesn't make sense. Why should I spend one hour trying to correct?

the output of an AI when I can do it in half an hour just by myself. Because the AI makes mistakes and this is what they want now. They want the human hands and the human eyes to kind of look about how you do it and then have the robot mimic thinking and behavior, human behavior. So that is not working out right now and that's why you don't see the adoption of AI and now it's just fashionable to say, oh you know we are doing AI, we have AI, we are following AI for the investor like, ooh.

You know, our plumbing company is now an AI plumbing company. What the hell? You know, it's a joke. It's a fallacy.

It really is, you know, and people like to be blinded and say, well, you know, we're on track with tech here. We just jumped the tech bandwagon. Even tech companies, they don't even start with AI itself, with the models. They just put another tech stack on top and say, well, we have AI.

what does that tech stack serve? It doesn't do anything specific. It's just there. ⁓ You you could just might as well connect it to a anthropic or to open AI.

So these are the disconnects that we have in the world of human AI interaction. And unless you address that, we're not going to do anything. And we're just going to go down this track where AI on one hand is going to get superlative better at what it's doing, which is coding and numerical computations and not as good. It's going to get better, but it's going to be very much slower on the human side.

And that's where the jobs are getting preserved, so to speak, because that transition period will keep people into employment ⁓ the AI can get as good to remove or displace those people. And that's the ⁓ period, which is five max 10 years, but we need to start today. it for today's episode of Fintech Bytes. AI might be the biggest opportunity in tech right now, but it's also reshaping how companies spend, hire and build.

From data centers to layoffs, the story is bigger and more complicated than just innovation. ⁓ you enjoyed this episode, follow the podcast and share it with someone thinking about where AI is really taking us, not just technologically, but economically and socially. See you next time. Have a nice day.

Bye bye.