Almost three years after ChatGPT's release, AI has not dramatically disrupted the job market. Executives sometimes use AI as a cover to downsize or outsource labor. The technology faces hallucination problems, legal risks, and security baggage that limit its ability to safely automate human roles. Ninety-five percent of businesses attempting AI overhauls fail. Investor enthusiasm often rewards mere mentions of an AI strategy with stock gains. Coinbase adopted AI coding assistants (Anysphere Cursor and GitHub Copilot) and pressured engineers to onboard within a week, with CEO Brian Armstrong scheduling meetings for those who did not comply. Effective corporate AI initiatives may take years.
Sure, AI makes a convenient cover for business executives who were already looking to downsize or outsource their labor force, but the tech's myriad hallucination issues, legal risks, and security baggage make it ill-suited to automate human jobs. That's to say nothing of the fact that 95 percent of businesses gunning for an AI overhaul see their efforts end in failure.
Yet as far as investors seem to be concerned, that's just background noise. Despite the software's many shortcomings, even the mere mention of an "AI strategy" on a businesses' quarterly earnings report can send its stock to the Moon, which is probably one reason why cryptocurrency exchange Coinbase fired employees who didn't join the bandwagon with its own rush into AI.
"I was like, 'AI's important," the 42-year-old CEO said. "We need you to all learn it and at least [be] on board. You don't have to use it every day yet until we do some training, but at least on board by the end of the week. And if not, I'm hosting a meeting on Saturday with everybody who hasn't done it, and I'd like to meet with you to understand why."
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