Citadel Securities said in a recent report that adoption of generative AI is expected to follow a historical S-curve. It said the trend would ultimately enter a stagnation phase rather than keep expanding exponentially.
Citadel Securities cited economic and physical limits as the reason unlimited growth is not possible.
Replacing human labor with AI requires large-scale computing power, data centers and energy. It said that the faster AI automation spreads, the more computing demand surges, and marginal costs rise as a result.
Citadel Securities said companies will stop replacing workers once the cost of operating AI exceeds labor costs. It said that even if AI algorithms improve recursively, limits on physical capital and energy availability will block unlimited adoption across the broader economy.
Chi-gyu Hwang
delight@d-today.co.kr