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AI Drives Efficiency: A Double-Edged Sword
Many companies are leveraging AI, particularly through foundation models, to rapidly scale and boost profitability by reducing labor costs. Startups are notably employing fewer people than they did three years ago, reflecting a 50% reduction in workforce size attributed to the integration of AI technologies. Historically, startups have been early adopters of emerging technologies, similar to how cloud computing was initially embraced, showcasing a trend where innovations enhance operational efficiency but also disrupt traditional employment models.
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