TLDR IT · ANALYSIS & OPINIONS
AI WAS SUPPOSED TO MAKE SOFTWARE CHEAPER. SO WHY IS IT MORE EXPENSIVE NOW?
Summary from the TLDR IT newsletter
Despite dramatic improvements in developer productivity and falling unit costs for AI intelligence, software is becoming more expensive due to rising software scope and Jevons paradox driving up consumption. Software has historically been priced on the value delivered to the buyer rather than production labor costs. Consequently, efficiency gains are absorbed by increased inference usage and higher feature expectations rather than lower bills.