Tomasz Tunguz - AI Impact Curves
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. AI Impact Curves
What is the impact of AI across different levels of seniority? Over the weekend, I read Sergey Tselovalnikov’s post on AI Impact Curves. The software engineering curve reveals an intriguing pattern. Junior engineers experience both benefits and risks from AI. Staff+ engineers also gain tremendous leverage at the senior end of the curve. However, mid-level engineers see more modest impacts, primarily because they are proficient with their codebases and can write effective code adeptly. I wondered about other disciplines : law, accounting, customer support financial analysis, consulting. I found myself drawing a chart with two y-axes instead : impact on the individual and impact on the business. Because they could be quite different. At the junior level, there’s a meaningful difference between the impact on an individual and an impact on a company. A junior person is much more likely to find their job or at least portions of it automated by more experienced colleagues employees moving up the organization - presuming they embrace AI. The owners of a business or the leaders of a business would find themselves benefiting from the efficiencies of AI driving greater profitability with potentially somewhat negative expense of managing smaller teams. Business leaders benefit from increased productivity & potentially reduced team sizes. But even this dual curve model is too simplistic. The real differentiator could be adaptation ability rather than seniority. A junior employee who masterfully leverages AI creates outsized value for both themselves and the organization - a truth that holds across all roles and levels. |
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