• 0 Posts
  • 6 Comments
Joined 2 months ago
cake
Cake day: June 29th, 2024

help-circle



  • I’ve been applying similar thinking to my job search. When I see AI listed in a job description, I immediately put the company into one of 3 categories:

    1. It is an AI company that may go out of business suddenly within the next few years leaving me unemployed and possibly without any severance.
    2. Management has drank the Kool-Aid and is hoping AI will drive their profit growth, which makes me question management competence. This also has a high likelihood of future job loss, but at least they might pay severance.
    3. The buzzword was tossed in to make the company look good to investors, but it is not highly relevant to their business. These companies get a partial pass for me.

    A company in the first two categories would need to pay a lot to entice me and I would not value their equity offering. The third category is understandable, especially if the success of AI would threaten their business.


  • You got me thinking a bit on this one. One possibility is if you want to make a bet on it failing to deliver value in the near future, look at the companies whose stock prices have fallen on the fear of AI putting them out of business. For example, Concentrix does call center outsourcing and their stock is down significantly from their 2022 peak, partially on the expectation that AI is going to take business from them. Now, their profit margin is tiny and they don’t seem to be growing much, so I don’t know that they are a great investment, but there could be upside if the negative cloud of AI is removed. There are probably better examples out there, this one just came to mind.

    Note: I have not done any research on this idea or on Concentrix and don’t know if this is a good idea, but at least less risky than shorting the AI hype.