Pyramid Replacement: how AGI could hollow out companies from entry level up

luke_drago_ · x · 2026-10-19

The "Pyramid Replacement" essay from The Intelligence Curse argues ever-stronger AI will systematically hollow out corporate structures: entry-level hiring freezes first, then waves of layoffs moving upward. Key evidence: labs define AGI as systems outperforming humans at most economically valuable work, with some CEOs eyeing 2026; top models went from solving 4.4% of real coding tasks (2023) to 49% (early 2025); METR finds AI task length doubling every 7 months; governments are already racing (Manhattan Project-style proposals). Implication: the jobs shock arrives bottom-up before any sci-fi scenario.

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