So far, the only company making loud, concrete claims backed by audited financials is Klarna and once you dig in, their improved profitability lines up far more cleanly with layoffs, hiring freezes, business simplification, and a cyclical rebound than with Gen-AI magically multiplying output. AI helped support a smaller org that eliminated more complicated financial products that have edge cases, but it didn’t create a step-change in productivity.
If Gen-AI were making tech workers even 10× more productive at scale, you’d expect to see it reflected in revenue per employee, margins, or operating leverage across the sector.
We’re just not seeing that yet.
I've agree with the fact that the last 10% of a project is the hardest part, and that's the part that Gen-AI sucks at (hell, maybe the 30%).
If we’re even just talking a 2x multiplier, it should show up in some externally verifiable numbers.
The issue is that I'm not a professional financial analyst and I can't spend all day on comps so I can't tell through the noise yet if we're seeing even 2x related to AI.
But, if we're seeing 10x, I'd be finding it in the financials. Hell, a blind squirrel would, and it's simply not there.
This isn't to say LLMs won't change software development forever, I think they will. But I doubt anyone has any idea what kind of tools and approaches everyone will be using 5 or 10 years from now, except that I really doubt it will be whatever is being hyped up at this exact moment.