Widespread Automation Causes Price Collapse; High-Cost Lawyers Replaced by Compute Costs

zacharynado · x · 2026-08-29

An analysis of AI automation from an economics perspective: Two simple but hard concepts are marginal vs. average and equilibrium. Tasks automated at scale become cheap. Automating a $1000/hr lawyer won't yield multiplied returns; instead, the task's price will collapse to the cost of compute if competition exists.

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