[HN Gopher] Microsoft drops AI sales targets in half after sales...
       ___________________________________________________________________
        
       Microsoft drops AI sales targets in half after salespeople miss
       their quotas
        
       Author : OptionOfT
       Score  : 333 points
       Date   : 2025-12-04 15:31 UTC (7 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | jqpabc123 wrote:
       | _AI agent technology likely isn't ready for the kind of high-
       | stakes autonomous business work Microsoft is promising._
       | 
       | It's unbelievable to me that tech leaders lack the insight to
       | recognize this.
       | 
       | So how to explain the current AI mania being widely promoted?
       | 
       | I think the best fit explanation is simple con artistry. They
       | know the product is fundamentally flawed and won't perform as
       | being promised. But the money to be made selling the fantasy is
       | simply too good to ignore.
       | 
       | In other words --- pure greed. Over the longer term, this is a
       | weakness, not a strength.
        
         | ahartmetz wrote:
         | Imagine your supplier effectively telling you that they don't
         | even value you (and your money) enough to bother a real human.
        
         | jollyllama wrote:
         | They've gotten away with shipping garbage for years and still
         | getting paid for it. They think we're all stupid.
        
           | jqpabc123 wrote:
           | _They think we 're all stupid._
           | 
           | As time goes by, I'm starting to think they may be right more
           | than they're wrong.
           | 
           | And this is a sad and depressing statement about humanity.
        
             | somenameforme wrote:
             | Not really. It's just that the point you have to push
             | people to get them to start pushing back on something tends
             | to be quite high. And it's very different for different
             | people on different topics.
             | 
             | In the past this wasn't such a big deal because businesses
             | weren't so large or so frequently run by myopic sociopaths.
             | Ebenezer Scrooge was running some small local business, not
             | a globe spanning empire entangling itself with government
             | and then imposing itself on everybody and everything.
        
               | sallveburrpi wrote:
               | Scrooge is a fictional person and Microsoft have been
               | getting away with it since I'm alive with people hating
               | it probably just as long. So I think GP definitely has a
               | point.
        
           | stocksinsmocks wrote:
           | Given that they aren't meeting their sales targets at all, I
           | guess that's a little bit of encouraging about the
           | discernment of their customers. I'm not sure how Microsoft
           | has managed to escape market discipline for so long.
        
             | SAI_Peregrinus wrote:
             | Their customers largely aren't their users. Their customers
             | are the purchasing departments at Dell, Lenovo, and other
             | OEMs. Their customers are the purchasing departments at
             | large enterprises who want to buy Excel. Their customers
             | are the advertisers. The products where the customers and
             | the users are the same people (Excel, MS flight simulator,
             | etc.) tend to be pretty nice. The products where the
             | customers aren't the users inevitably turn to shit.
        
             | thewebguyd wrote:
             | > I'm not sure how Microsoft has managed to escape market
             | discipline for so long.
             | 
             | How would they? They are a monopoly, and partake in
             | aggressive product bundling and price manipulation tactics.
             | They juice their user numbers by enabling things in
             | enterprise tenants by default.
             | 
             | If a product of theirs doesn't sell, they bundle it for
             | "free" in the next tier up of license to drive adoption and
             | upgrades. Case in point, the InTune suite (includes EntraID
             | P2, Remote assistance, endpoint privilege management) will
             | now be included in E5, and the price of E5 is going up (by
             | $10/user/month, less than the now bundled features cost
             | when bought separately). People didn't buy it otherwise, so
             | now there's an incentive to move customers off E3 and into
             | E5.
             | 
             | Now their customers are in a place where Microsoft can
             | check boxes, even if the products aren't good, so there's
             | little incentive to switch.
             | 
             | Try to price out Google Workspace (and also, an office
             | license still because someone will need Excel), Identity,
             | EDR, MDM for Windows, mac, mobile, slack, VoIP, DLP, etc.
             | You won't come close to Microsoft's bundled pricing by
             | piecing together the whole M365 stack yourself.
             | 
             | So yeah, they escape market discipline because they are the
             | _only_ choice. Their customers are fully captive.
        
         | zdragnar wrote:
         | I was just in a thread yesterday with someone who genuinely
         | believed that we're only seeing the beginnings of what the
         | current breed of AI will get us, and that it's going to be as
         | transformative as the introduction of the internet was.
         | 
         | Everything about the conversation felt like talking to a true
         | believer, and there's plenty out there.
         | 
         | It's the hopes and dreams of the Next Big Thing after
         | blockchain and web3 fell apart and everyone is desperate to
         | jump on the bandwagon because ZIRP is gone and everyone who is
         | risk averse will only bet on what everyone else is betting on.
         | 
         | Thus, the cycle feeds itself until the bubble pops.
        
           | MengerSponge wrote:
           | All these boosters think we're on the leading edge of an
           | exponential, when it's way more likely that we're on the
           | midpoint to tail of a logistic
        
             | rm_-rf_slash wrote:
             | AI research has always been a series of occasional great
             | leaps between slogs of iterative improvements, from Turing
             | and Rosenblatt to AlexNet and GPT-3. The LLM era will
             | result in a few things becoming invisible architecture* we
             | stop appreciating and then the next big leap starts the
             | hype cycle anew.
             | 
             | *Think toll booths ("exact change only!") replaced by
             | automated license plate readers in just the span of a
             | decade. Hardly noticeable now.
        
           | empath75 wrote:
           | Two things can be true:
           | 
           | 1) We have barely scratched the surface of what is possible
           | to do with existing AI technology. 2) Almost all of the money
           | we are spending on AI now is ineffectual and wasted.
           | 
           | ---
           | 
           | If you go back to the late 1990s, that is the state that most
           | companies were at with _computers_. Huge, wasteful projects
           | that didn't improve productivity at all. It took 10 years of
           | false starts sometimes to really get traction.
        
             | rizzom5000 wrote:
             | It's interesting to think Microsoft was around back then
             | too, taking approximately 14 years to regain the loss of
             | approximately 58% of their valuation.
        
           | mikkupikku wrote:
           | > _" someone who genuinely believed that we're only seeing
           | the beginnings of what the current breed of AI will get us,
           | and that it's going to be as transformative as the
           | introduction of the internet was."_
           | 
           | I think that. It's new technology and it always takes some
           | years before all the implications and applications of new
           | technology are fully worked out. I also think that we're in a
           | bubble that will hose a lot of people when it pops.
        
           | treis wrote:
           | I don't see how people don't see it. LLMs are a revolutionary
           | technology and are for the first time since the iPhone are
           | changing how we interact with computers. This isn't block
           | chains. This is something we're going to use until something
           | better replaces it.
        
             | solumunus wrote:
             | I agree to some extent, but we're also in a bubble. It
             | seems completely obvious that huge revenue numbers aren't
             | around the corner, not enough to justify the spend.
        
         | Gormo wrote:
         | > In other words --- pure greed.
         | 
         |  _Pure_ greed would have a strong incentive to understand what
         | the market is actually demanding in order to maximize profits.
         | 
         | These attempts to try to steer demand despite clear indicators
         | that it doesn't want to go in that direction aren't just driven
         | by greed, they're driven by abject incompetence.
         | 
         | This isn't pure greed, it's _stupid_ greed.
        
           | wubrr wrote:
           | Pure greed is stupid greed.
           | 
           | Also, if the current level of AI investment and valuations
           | aren't justified by market demand (I believe so), many of
           | these people/companies are getting more money than they would
           | without the unreasonable hype.
        
           | paganel wrote:
           | > Pure greed would have a strong incentive to understand what
           | the market is actually demanding in order to maximize
           | profits.
           | 
           | Not necessarily, just look at this clip [1] from _Margin
           | Call_ , an excellent movie on the GFC. As Jeremy Irons is
           | saying in that clip, the market (as usually understood in
           | classical economy, with producers making things for
           | clients/customers to purchase) is of no importance to today's
           | market economy, almost all that matters, at the hundreds of
           | billions - multi-trillion dollars-levels, is for your company
           | "to play the music" as best as the other (necessarily very
           | big) market participants, "nothing more, nothing less"
           | (again, to quote Irons in that movie).
           | 
           | There's nothing in it about "making what people/customers
           | want" and all that, which is regarded as accessory, that is
           | if it is taken into consideration at all. As another poster
           | is mentioning in this thread, this is all the direct result
           | of the financialization of much of the Western economy, this
           | is how things work at this level, given these (financiliazed)
           | inputs.
           | 
           | [1] https://www.youtube.com/watch?v=UOYi4NzxlhE
        
           | binary132 wrote:
           | you seem to be committing the error of believing that the
           | problem here is just that they're not selling what people
           | want to buy, instead of identifying the clear intention to
           | _create_ the market.
        
         | empath75 wrote:
         | It's not "fundamentally flawed". It is brilliant at what it
         | does. What is flawed is how people are applying it to solve
         | specific problems. It isn't a "do anything" button that you can
         | just push. Every problem you apply AI to still has a ton of
         | engineering work that needs to be done to make it useful.
        
           | stingraycharles wrote:
           | You're correct, you need to learn how to use it. But for some
           | reason HN has an extremely strong anti-AI sentiment, unless
           | it's about fundamental research.
           | 
           | At this point, I consider these AI tools to be an invaluable
           | asset to my work in the same way that search engines are.
           | It's integrated into my work. But it takes practice on how to
           | use it correctly.
        
             | rtp4me wrote:
             | My suspicion is because they (HN) are very concerned this
             | technology is pushing hard into their domain expertise and
             | feel threatened (and, rightfully so).
        
               | seanw444 wrote:
               | While it will suck when that happens (and inevitably it
               | will), that time is not now. I'm not one to say LLMs are
               | useless, but they aren't all they're being marketed to
               | be.
        
               | LtWorf wrote:
               | Or they might know better than you. A painful idea.
        
               | rtp4me wrote:
               | Painful? What's painful when someone has a different
               | opinion? I think that is healthy.
        
             | bigstrat2003 wrote:
             | > for some reason HN has an extremely strong anti-AI
             | sentiment
             | 
             | It's because I've used it and it doesn't come even close to
             | delivering the value that its advocates claim it does.
             | Nothing mysterious about it.
        
               | ToValueFunfetti wrote:
               | I think what it comes down to is that the advocates
               | making false claims are relatively uncommon on HN. So,
               | for example, I don't know what advocates you're talking
               | about here. I know people exist who say they can vibe-
               | code quality applications with 100k LoC, or that guy at
               | Anthropic who claims that software engineering will be a
               | dead profession in the first half of '26, and I know that
               | these people tend to be the loudest on other platforms. I
               | also know sober-minded people exist who say that LLMs
               | save them a few hours here and there per week trawling
               | documentation, writing a 200 line SQL script to seed data
               | into a dev db, or finding some off-by-one error in a
               | haystack. If my main or only exposure to AI discourse was
               | HN, I would really only be familiar with the latter group
               | and I would interpret your comment as very biased against
               | AI.
               | 
               | Alternatively, you are referring to the latter group and,
               | uh, sorry.
        
             | mrob wrote:
             | There is no scenario where AI is a net benefit. There are
             | three possibilities:
             | 
             | 1. AI does things we can already do but cheaper and worse.
             | 
             | This is the current state of affairs. Things are mostly the
             | same except for the flood of slop driving out quality. My
             | life is moderately worse.
             | 
             | 2. Total victory of capital over labor.
             | 
             | This is what the proponents are aiming for. It's disastrous
             | for the >99% of the population who will become economically
             | useless. I can't imagine any kind of universal basic income
             | when the masses can instead be conveniently disposed of
             | with automated killer drones or whatever else the victors
             | come up with.
             | 
             | 3. Extinction of all biological life.
             | 
             | This is what happens if the proponents succeed better than
             | they anticipated. If recursively self-improving ASI pans
             | out then nobody stands a chance. There are very few goals
             | an ASI can have that aren't better accomplished with
             | everybody dead.
        
               | ToValueFunfetti wrote:
               | What is the motivation for killing off the population in
               | scenario 2? That's a post-scarcity world where the elites
               | can have everything they want, so what more are they
               | getting out of mass murder? A guilty conscience,
               | potentially for some multiple of human lifespans?
               | Considerably less status and fame?
               | 
               | Even if they want to do it for no reason, they'll still
               | be happier if their friends and family are alive and
               | happy, which recurses about 6 times before everybody on
               | the planet is alive and happy.
        
               | mrob wrote:
               | It's not a post-scarcity world. There's no obvious upper
               | bound on resources AGI could use, and there's no obvious
               | stopping point where you can call it smart enough. So
               | long are there are other competing elites the incentive
               | is to keep improving it. All the useless people will be
               | using resources that could be used to make more
               | semiconductors and power plants.
        
           | dbspin wrote:
           | I'd consider hallucinations to be a fundamental flaw that
           | currently sets hard limits on the current utility of LLMs in
           | any context.
        
             | SoftTalker wrote:
             | I thought this for a while, but I've also been thinking
             | about all the stupid, false stuff that actual humans
             | believe. I'm not sure AI won't get to a point where even if
             | it's not perfect it's no worse than people are about
             | selectively observing policies, having wrong beliefs about
             | things, or just making something up when they don't know.
        
           | bigstrat2003 wrote:
           | > Every problem you apply AI to still has a ton of
           | engineering work that needs to be done to make it useful.
           | 
           | Ok, but that isn't useful to me. If I have to hold the bot's
           | hand to get stuff done, I'll just _do it myself_ , which will
           | be both faster and higher quality.
        
             | solumunus wrote:
             | That's not my experience at all, I'm getting it done much
             | faster and the quality is on par. It's hard to measure, but
             | as a small business owner it's clear to me that I now
             | require fewer new developers.
        
         | nightski wrote:
         | I think on some level it is being done on the premise that
         | further advancement requires an enormous capital investment and
         | if they can find a way to fund that with today's sales it will
         | give the opportunity for the tech to get there (quite a
         | gamble).
        
         | giancarlostoro wrote:
         | I have a feeling that Microsoft is setting themselves up for a
         | serious antitrust lawsuit if they do what they are intending
         | on. They should really be careful about introducing products
         | into the OS that take away from all other AI shops. I fear this
         | would cripple innovation if allowed to do so as well, since
         | Microsoft has drastically fatter wallets than most of their
         | competition.
        
           | delfinom wrote:
           | Under the current US administration the only thing Microsoft
           | is getting is numerous piles of taxpayer bailouts.
        
             | shevy-java wrote:
             | Corruption is indeed going strong in the current corporate-
             | controlled US group of lame actors posing as government
             | indeed. At the least Trump is now regularly falling asleep
             | - that's the best example that you can use any surrogate
             | puppet and the underlying policies will still continue.
        
               | eastbound wrote:
               | If I mention a president who was more of a general
               | secretary of the party, taking notes of decisions taken
               | for him by lobbies from the largest corporations, falling
               | asleep and having incoherent speech to the point that he
               | seems to be way past the point of stroke, I don't think
               | anyone will guess Trump.
        
           | dreamcompiler wrote:
           | There's no such thing as antitrust in the US right now.
           | Google's recent slap on the wrist is all the proof you need.
        
           | Eddy_Viscosity2 wrote:
           | Trump has ushered in a truly lawless phase of american
           | politics. I mean, it was kind of bad before, but at least
           | there was a pretense of rule of law. A trillion dollar
           | company can easily just buy its way out of any enforcement of
           | such antitrust action.
        
         | danans wrote:
         | > So how to explain the current AI mania being widely promoted?
         | 
         | > I think the best fit explanation is simple con artistry.
         | 
         | Yes, perhaps, but many industries are built on a little bit of
         | technology and a lot of stories.
         | 
         | I think of it as us all being caught in one giant infomercial.
         | 
         | Meanwhile as long as investors buy the hype it's a great story
         | to use for triming payrolls.
        
         | h2zizzle wrote:
         | It's part of a larger economic con centered on the financial
         | industry and the financialization of American industry. If you
         | want this stuff to stop, you have to be hoping (or even working
         | toward) a correction that wipes out the incumbents who
         | absolutely are working to maintain the masqerade.
         | 
         | It will hurt, and they'll scare us with the idea that it will
         | hurt, but the secret is that we get to choose where it hurts -
         | the same as how they've gotten to choose the winners and losers
         | for the past two decades.
        
           | hereme888 wrote:
           | It's like when a child doesn't want something, you "give them
           | a choice": would you like to put on your red or white shoes?
        
           | tech_ken wrote:
           | > correction that wipes out the incumbents who absolutely are
           | working to maintain the masqerade
           | 
           | You need to also have a robust alternative that grows quickly
           | in the cleared space. In 2008 we got a correction that
           | cleared the incumbents, but the ensuing decade of policy
           | choices basically just allowed the thing to re-grow in a new
           | form.
        
             | h2zizzle wrote:
             | I thought we pretty explicitly bailed out most of the
             | incumbents. A few were allowed to be sacrificed, but most
             | of the risk wasn't realized, and instead rolled into new
             | positions that diffused it across the economy. 2008's
             | "correction" should have seen the end of most of our
             | investment banks and auto manufacturers. Say what you want
             | to about them (and I have no particular love for either),
             | but Tesla and Bitcoin are ghosts of the timeline where
             | those two sectors had to rebuild themselves from scratch.
             | There should have been more, and Goldman Sachs and GM et
             | al. should not currently exist.
        
               | tech_ken wrote:
               | > A few were allowed to be sacrificed, but most of the
               | risk wasn't realized, and instead rolled into new
               | positions that diffused it across the economy.
               | 
               | Yeah that's a more accurate framing, basically just
               | saying that in '08 we put out the fire and rehabbed the
               | old growth rather than seeding the fresh ground.
               | 
               | > Tesla and Bitcoin are ghosts of the timeline where
               | those two sectors had to rebuild themselves from scratch
               | 
               | I disagree, I think they're artifacts of the rehab
               | environment (the ZIRP policy sphere). I think in a world
               | where we fully ate the loss of '08 and started in a new
               | direction you might get Tesla, but definitely not TSLA,
               | and the version we got is really (Tesla+TSLA) IMO.
               | Bitcoin to me is even less of a break with the pre-08
               | world; blockchain is cool tech but Bitcoin looks very
               | much "Financial Derivatives, Online". I think an honest
               | correction to '08 would have been far more of a focus on
               | "hard tech and value finance", rather than inventing new
               | financial instruments even further distanced from the
               | value-generation chain.
               | 
               | > Goldman Sachs and GM et al. should not currently exist.
               | 
               | Hard agree here
        
               | h2zizzle wrote:
               | I would say yes and no on Tesla. Entities that survived
               | becaue of the rehab environment actually expected it to
               | fail, and shorted it heavily. TSLA as it currently exists
               | is a result of the short squeeze on the stock that ensued
               | when it became clear that the company was likely to
               | become profitable. Its current, ridiculous valuation
               | isn't a product of its projected earnings, but recoil
               | from those large shorts blowing up.
               | 
               | In our hypothetical alternate timeline, I imagine that
               | there would have still been capital eager to fill the
               | hole left by GM, and possibly Ford. Perhaps Tesla would
               | have thrived in that vacuum, alongside the likes of
               | Fisker, Mullen, and others, who instead faced incumbent
               | headwinds that sunk their ventures.
               | 
               | Bitcoin, likewise, was warped by the survival of
               | incumbents. IIUC, those interests influenced governance
               | in the early 2010s, resulting in a fork of the project's
               | original intent from a transactional medium that would
               | scale as its use grew, to a store of value, as controlled
               | by them as traditional currencies. In our hypothetical,
               | traditional banks collapsed, and even survivors lost all
               | trust. The trustless nature of Bitcoin, or some other
               | cryptocurrency, maybe would have allowed it to supercede
               | them. Deprived of both retail and institutional deposits,
               | they simply did not have the capital to warp the crypto
               | space as they did in the actual 2010s.
               | 
               | I call them "ghosts" because, yes, whatever they might
               | have been, they're clearly now just further extensions of
               | that pre-2008 world, enabled by the our post-2008
               | environment (including ZIRP).
        
             | vjvjvjvjghv wrote:
             | "In 2008 we got a correction that cleared the incumbents,"
             | 
             | I thought in 2008 we told the incumbents "you are the most
             | important component of our economy. We will allow everybody
             | to go down the drain but you. That's because you caused the
             | problem, so you are the only ones to guide us out of it"
        
           | mason_mpls wrote:
           | This assumes fair competition in the tech industry, which has
           | evaporated without a path for return years ago.
        
           | jbs789 wrote:
           | Looking forward to the OpenAI (and Anthropic) IPOs. It's
           | funny to me that this info is being "leaked" - they are
           | sussing out the demand. If they wait too long, they won't be
           | able to pull off the caper (at these valuations). And we will
           | get to see who has staying power.
           | 
           | It's obvious to me that all of OpenAIs announcements about
           | partnerships and spending is gearing up for this. But I do
           | wonder how Altman retains the momentum through to next year.
           | What's the next big thing? A rocket company?
        
             | the__alchemist wrote:
             | Hell yes! Would love to short.
        
             | cmiles8 wrote:
             | Increasing signs the ship has sailed on the IPO window for
             | these folks but let's see.
        
             | piva00 wrote:
             | > But I do wonder how Altman retains the momentum through
             | to next year. What's the next big thing? A rocket company?
             | 
             | Hmm, there were news about Sam Altman wanting to buy/invest
             | on a rocket company. [0]
             | 
             | [0] https://www.wsj.com/tech/ai/sam-altman-has-explored-
             | deal-to-...
        
           | ranger207 wrote:
           | How do you guarantee your accelerationism produces the right
           | results after the collapse? If the same systems of regulation
           | and power are still in place then it would produce the same
           | result afterwards
        
           | pjmlp wrote:
           | Yeah, it started with the whole Wall Street, with all the
           | depression and wars that it brought, and it hasn't stopped,
           | at each cycle the curve has to go up, with exponential
           | expectations of growth, until it explodes taking the world
           | economy to the ground.
        
           | LeifCarrotson wrote:
           | Agreed! I recently listened to a podcast (video) from the
           | "How Money Works" channel on this topic:
           | 
           | "How Short Term Thinking Won" - https://youtu.be/qGwU2dOoHiY
           | 
           | The author argues that this con has been caused by three
           | relatively simple levers: Low dividend yields, legalization
           | of stock buybacks, and executive compensation packages that
           | generate lots of wealth under short pump-and-dump timelines.
           | 
           | If those are the causes, then simple regulatory changes to
           | make stock buybacks illegal again, limit the kinds of
           | executive compensation contracts that are valid, and
           | incentivize higher dividend yields/penalize sales yields
           | should return the market to the previous long-term-optimized
           | behavior.
           | 
           | I doubt that you could convince the politicians and
           | financiers who are currently pulling value out of a fragile
           | and inefficient economy under the current system to make
           | those changes, and if the changes were made I doubt they
           | could last or be enforced given the massive incentives to
           | revert to our broken system. I think you're right that it
           | will take a huge disaster that the wealthy and powerful are
           | unable to dodge and unable to blame on anything but their own
           | actions, I just don't know what that event might look like.
        
             | baggachipz wrote:
             | One need only look at 1929 to understand what's in store.
             | Of course, the rich/powerful will say "who could have seen
             | this coming?"
        
             | robot-wrangler wrote:
             | Stupidity, greed, and straight-up evil intentions do a
             | bunch of the work, but ultimately short-term thinking wins
             | because it's an attractor state. The influence of the
             | wealthy/powerful is always outsized, but attractors and
             | common-knowledge also create a natural conspiracy that
             | doesn't exactly have a center.
             | 
             | So with AI, the way the natural conspiracy works out is
             | like this. Leaders at the top might suspect it's bullshit,
             | but don't care, they always fail upwards anyway. Middle
             | management at non-tech companies suspect their jobs are in
             | trouble on _some_ timeline, so they want to  "lead a
             | modernization drive" to bring AI to places they know don't
             | need it, even if it's a doomed effort that basically
             | defrauds the company owners. Junior engineers see a tough
             | job market, want to devalue experience to compete.. decide
             | that only AI matters, everything that came before is the
             | old way. Owners and investors hate expensive senior
             | engineers who don't have to bow and scrape, think they have
             | to much power, would love to put them in their place.
             | Senior engineers who are employed and maybe the most clear-
             | eyed about the actual capabilities of technology see the
             | writing on the wall.. you _have_ to make this work even if
             | it 's handed to you in a broken state, because literally
             | everyone is gunning for you. Those who are unemployed are
             | looking around like well.. this is apparently the game one
             | must play. Investors will invest in any horrible doomed
             | thing regardless of what it is because they all think they
             | are smarter than other investors and will get out in just
             | in time. Owners are typically too disconnected from
             | whatever they own, they just want to exit/retire and
             | already mostly in the position of listening to lieutenants.
             | 
             | At every level for every stakeholder, once things have
             | momentum they don't need be a
             | healthy/earnest/noble/rational endeavor any more than the
             | advertising or attention economy did before it. Regardless
             | of the ethics there or the current/future state of any
             | specific tech.. it's a huge problem when being locally
             | rational pulls us into a state that's globally irrational
        
               | LeifCarrotson wrote:
               | Yes, that "attractor state" you describe is what I meant
               | by "if the changes were made I doubt they could last or
               | be enforced given the massive incentives to revert to our
               | broken system". The older I get and the more I learn, the
               | less I'm willing to ascribe faults in our society to
               | individual evils or believe in the existence of
               | intentionally concealed conspiracies rather than just
               | seeing systemic flaws and natural conspiracies.
        
             | h2zizzle wrote:
             | I disagree. Those place the problem at the corporate level,
             | when it's clearly extended through to being a monetary
             | issue. The first thing I would like to see is the various
             | Fed and banking liquidity and credit facilities go away.
             | They don't facilitate stability, but a fiscal shell game
             | that has allowed numerous zombie companies to live far past
             | their solvency. This in turn encourages widespread fiscal
             | recklessness.
             | 
             | We're headed for a crunch anyway. My observation is that a
             | controlled demolition has been attempted several times over
             | the past few years, but in every instance, someone has
             | stepped up to cry about the disaster that would occur if
             | incumbents weren't shored up. Of course, that just makes
             | the next occurrence all the more dire.
        
             | somat wrote:
             | What is wrong with stock buybacks?
             | 
             | Genuine question, I don't understand the economics of the
             | stock market and as such I participate very little
             | (probably to my detriment) I sort of figure the original
             | theory went like this.
             | 
             | "We have an idea to run a for profit endeavor but do not
             | have money to set it up. If you buy from us a portion of
             | our future profit we will have the immediate funds to set
             | up the business and you will get a payout for the
             | indefinite future."
             | 
             | And the stock market is for third party buying and selling
             | of these "shares of profit"
             | 
             | Under these conditions are not all stocks a sort of
             | millstone of perpetual debt for the company and it would
             | behoove them to remove that debt, that is, buyback the
             | stock. Naively I assume this is a good thing.
        
               | oblio wrote:
               | My view is that you don't want more layers. Chasing ever
               | increasing share prices favor shareholders (limited
               | amount of generally rich people) over customers (likely
               | to be average people). The incentives get out of whack.
        
             | tokioyoyo wrote:
             | There was a long standing illusion that people care about
             | long-term thinking. But given the opportunity, people seem
             | to take the short-term road with high risks, instead of
             | chasing a long-term gain, as they, themselves, might not
             | experience the gain.
             | 
             | The timeframe of expectations have just shifted, as
             | everyone wants to experience everything. Just knowing the
             | possibility of things that can happen already affects our
             | desires. And since everyone has a limited time in life, we
             | try to maximize our opportunities to experience as many
             | things as possible.
             | 
             | It's interesting to talk about this to older generation
             | (like my parents in their 70s), because there wasn't such a
             | rush back then. I took my mom out to some cities around the
             | world, and she mentioned how she really never even dreamed
             | of a possibility of being in such places. On the other
             | hand, when you grow in a world of technically unlimited
             | possibilities, you have more dreams.
             | 
             | Sorry for rambling, but in my opinion, this somewhat
             | affects economics of the new generation as well. Who cares
             | of long term gains if there's a chance of nobody
             | experiencing the gain, might as well risk it for the short
             | term one for a possibility of some reward.
        
           | theflyinghorse wrote:
           | Problem with "it will hurt" is that it will actually hurt
           | middle class by completely wiping it out, and maybe slightly
           | inconvenience the rich. More like annoy the rich, really.
        
           | bluefirebrand wrote:
           | > you have to be hoping (or even working toward) a correction
           | that wipes out the incumbents who absolutely are working to
           | maintain the masqerade.
           | 
           | I'm not hoping for a market correction personally, I'm hoping
           | that mobs reinvent the guillotine
           | 
           | They deserve nothing less by now. If they get away with
           | nothing worse than "a correction" then they have still made
           | out like bandits
        
             | h2zizzle wrote:
             | I tend to agree, but there's something to be said for a
             | retribution focus taking time and energy away from problem-
             | solving. When market turmoil hits, stand up facilities to
             | guarantee food and healthcare access, institute a
             | nationwide eviction moratorium, and then let what remains
             | of the free market play out. Maybe we pursue justice by
             | actually prosecuting corporate malfeasance this time. The
             | opposite of 2008.
        
         | stingraycharles wrote:
         | Don't attribute to malice that which can equally be contributed
         | to incompetence.
         | 
         | I think you're over-estimating the capabilities of these tech
         | leaders, especially when the whole industry is repeating the
         | same thing. At that point, it takes a lot of guts to say "No,
         | we're not going to buy into the hype, we're going to wait and
         | see" because it's simply a matter of corporate politics: if AI
         | fails to deliver, it fails to deliver for _everyone_ and the
         | people that bought into the hype can blame the consultants  /
         | whatever.
         | 
         | If, however, AI ended up delivering and they missed the boat,
         | they're going to be held accountable.
         | 
         | It's much less risky to just follow industry trends. It takes a
         | lot of technical knowledge, gut, and confidence in your own
         | judgement to push back against an industry-wide trend at that
         | level.
        
           | foobarchu wrote:
           | > if AI fails to deliver, it fails to deliver for everyone
           | and the people that bought into the hype can blame the
           | consultants / whatever.
           | 
           | Understatement of the year. At this point, if AI fails to
           | deliver, the US economy is going to crash. That would not be
           | the case if executives hadn't bought in so hard earlier on.
        
             | saubeidl wrote:
             | And if it does deliver, everyone's gonna be out of a job
             | and the US economy is _also_ going to crash.
             | 
             | Nice cul-de-sac our techbro leaders have navigated us into.
        
               | rwyinuse wrote:
               | Yep, either way things are going to suck for ordinary
               | people.
               | 
               | My country has had bad economy and high unemployment for
               | years, even though rest of the world is doing mostly OK.
               | I'm scared to think what will happen once AI bubble
               | either bursts or eats most white collar jobs left here.
        
             | anjel wrote:
             | Race to "Too big to fail" on hype and your losses are
             | socialized
        
             | tokioyoyo wrote:
             | There's also a case that without the AI rush, US economy
             | would look even weaker now.
        
           | morkalork wrote:
           | It's mass delusion
        
           | Teever wrote:
           | Ultimately it's a distinction without a difference.
           | Maliciously stupid or stupidly malicious invariably leads to
           | the same place.
           | 
           | The discussion we should be having is how we can come
           | together to remove people from power and minimize the
           | influence they have on society.
           | 
           | We don't have the carbon budget to let billionaires who
           | conspires from island fortresses in Hawaii do this kind of
           | reckless stuff.
           | 
           | It's so dismaying to see these industries muster the capital
           | and political resources to make these kinds of infrastructure
           | projects a reality when they've done nothing comparable w.r.t
           | to climate change.
           | 
           | It tells me that the issue around the climate has always been
           | a lack of will not ability.
        
           | avidiax wrote:
           | I suspect that AI is in an "uncanny valley" where it is
           | definitely good enough for some demos, but will fail pretty
           | badly when deployed.
           | 
           | If it works 99% of the time, then a demo of 10 runs is 90%
           | likely to succeed. Even if it fails, as long as it's not
           | spectacular, you can just say "yeah, but it's getting better
           | every day!", and "you'll still have the best 10% of your
           | human workers in the loop".
           | 
           | When you go to deploy it, 99% is just not good enough. The
           | actual users will be much more noisy than the demo executives
           | and internal testers.
           | 
           | When you have a call center with 100 people taking 100 calls
           | per day, replacing those 10,000 calls with 99% accurate AI
           | means you have to clean up after 100 bad calls per day. Some
           | percentage of those are going to be really terrible, like the
           | AI did reputational damage or made expensive legally binding
           | promises. Humans will make mistakes, but they aren't going to
           | give away the farm or say that InsuranceCo believes it's
           | cheaper if you die. And your 99% accurate-in-a-lab AI isn't
           | 99% accurate in the field with someone with a heavy accent on
           | a bad connection.
           | 
           | So I think that the parties all "want to believe", and to an
           | untrained eye, AI seems "good enough" or especially "good
           | enough for the first tier".
        
             | gdulli wrote:
             | Agreed, but 99% is being very generous.
        
               | s1mplicissimus wrote:
               | And that's for tasks it's actually suited for
        
             | lawlessone wrote:
             | >I suspect that AI is in an "uncanny valley" where it is
             | definitely good enough for some demos
             | 
             | Sort of a repost on my part, but the LLM's are all really
             | good at marketing and other similar things that fool CEO's
             | and executives. So they think it must be great at
             | everything.
             | 
             | I think that's what is happening here.
        
           | inetknght wrote:
           | > _Don't attribute to malice that which can equally be
           | contributed to incompetence._
           | 
           | At this point I think it might actually be _both_ rather than
           | just one or the other.
        
           | bwfan123 wrote:
           | "Worldly wisdom teaches that it is better for reputation to
           | fail conventionally than to succeed unconventionally." -
           | Keynes.
           | 
           | Convention here is that AI is the next sliced bread. And big-
           | tech managers care about their reputation.
        
             | bluefirebrand wrote:
             | It's pretty pathetic that they can build a brand based on
             | "doing the exact same thing everyone else is doing" though
        
           | brazukadev wrote:
           | > Don't attribute to malice that which can equally be
           | contributed to incompetence.
           | 
           | This discourse needs to die. Incompetence + lack of empathy
           | is malice. Even competence in the scenario they want to
           | create is malice. It's time to stop sugar-coating it.
        
           | bluefirebrand wrote:
           | > At that point, it takes a lot of guts to say "No, we're not
           | going to buy into the hype, we're going to wait and see"
           | because it's simply a matter of corporate politics
           | 
           | Isn't that the whole mythos of these corporate leaders
           | though? They are the ones with the vision and guts to cut
           | against the fold and stand out among the crowd?
           | 
           | I mean it's obviously bullshit, but you would think at least
           | a couple of them actually would do _something_ to distinguish
           | themselves. They all want to be Steve Jobs but none of them
           | have the guts to even try to be visionary. It is honestly
           | pathetic
        
             | kevin_thibedeau wrote:
             | What you have is a lot of middle managers imposing change
             | with random fresh ideas. The ones that succeed rise up the
             | ranks. The ones that failed are forgotten, leading to
             | survivorship bias.
        
         | ReptileMan wrote:
         | It was the same with the cloud adoption. And I still think that
         | cloud is expensive, wasteful and in the vast majority of cases
         | not needed.
        
         | dehrmann wrote:
         | > In other words --- pure greed.
         | 
         | It's the opposite; it's FOMO.
        
         | bgwalter wrote:
         | They want to exfiltrate the customers' data under the guise of
         | getting better "AI" responses.
         | 
         | No company or government in the EU should use this spyware.
        
         | GoblinSlayer wrote:
         | Fake it till you make it.
        
           | dfedbeef wrote:
           | outside of the recovery community, this is known as 'fraud'
        
         | didibus wrote:
         | Thing is, it's hard to predict what can be done and what
         | breakthrough or minor tweak can suddenly open up an avenue for
         | a profitable use-case.
         | 
         | The cost of missing that opportunity is why they're heavily
         | investing in AI, they don't want to miss the boat if there's
         | going to be one.
         | 
         | And what else would they do? What's the other growth path?
        
           | binary132 wrote:
           | this idea that AI is the only thing anyone could possibly do
           | that might be useful has absolutely got to go
        
           | layer8 wrote:
           | > And what else would they do? What's the other growth path?
           | 
           | Are you arguing that if LLMs didn't exist as a technology,
           | they wouldn't find anything to do and collapse?
        
             | rsynnott wrote:
             | _Number would not go up sufficiently steeply_, would be the
             | major concern, not collapse. Microsoft might end up valued
             | as (whisper it) a normal mature stable company. That would
             | be something like a quarter to a half what it's currently
             | valued. For someone paid mostly in options, this is clearly
             | a problem (and people at the top in these companies mostly
             | _are_ compensated with options, not RSUs; if the stock
             | price halves, they get _nothing_).
        
           | solumunus wrote:
           | The cost of the boat sinking is also very high and that's
           | looking like the more likely scenario. Watching your
           | competitors sink huge amounts of capital into a probably
           | sinking boat is a valid strategy. The growth path they were
           | already on was fine no?
        
         | layer8 wrote:
         | US technocapitalism is built on the premise of technological
         | innovation driving exponential growth. This is why they are
         | fixated on whatever provides an outlook for that. The risk that
         | it might not work out is downplayed, because (a) they don't
         | want to hazard _not_ being at the forefront in the event that
         | it does work out, and (b) if it doesn't work out, nobody will
         | really hold them accountable for it, not the least because
         | everybody does it.
         | 
         | After the mobile and cloud revolution having run out of steam,
         | AI is what promises most growth by far, even if it is a dubious
         | promise.
         | 
         | It's a gamble, a bet on "the next big thing". Because they
         | would never be satisfied with there not being another "big
         | thing", or not being prominently part of it.
        
           | binary132 wrote:
           | Riding hype waves forever is the most polar opposite thing to
           | "sustainable" that I can imagine
        
         | apercu wrote:
         | It's not just AI mania, it's been this way for over a decade.
         | 
         | When I first started consulting, organizations were afraid
         | enough of lack of ROI in tech implementations that projects
         | needed an economic justification in order to be approved.
         | 
         | Starting with cloud, leadership seemed so become rare, and
         | everything was "us too!".
         | 
         | After cloud it was data/data visualization, then it was over-
         | hiring during Covid, the it was RTO, and now it's AI.
         | 
         | I wonder if we will ever return to rationalization? The
         | bellwether might be Tesla stock price (at a rational
         | valuation).
        
           | eastbound wrote:
           | If rationalization comes back, everyone will talk like in
           | Michael Moore's documentary about GM and Detroit. A manager's
           | salary after half a career will be around $120k, like in an
           | average bank, and that would be succeeding. I don't think we
           | even imagine how much of a tsunami we've been surfing since
           | 2000.
        
         | Balinares wrote:
         | > So how to explain the current AI mania being widely promoted?
         | 
         | Probably individual actors have different motivations, but
         | let's spitball for a second:
         | 
         | - LLMs are genuinely a revolution in natural language
         | processing. We can do things now in that space that were
         | unthinkable single-digit years ago. This opens new opportunity
         | spaces to colonize, and some might turn out quite profitable.
         | Ergo, land rush.
         | 
         | - Even if the new spaces are not that much of a value leap
         | intrinsically, some may still end up obsoleting earlier-
         | generation products pretty much overnight, and no one wants to
         | be the next Nokia. Ergo, _defensive_ land rush.
         | 
         | - There's a non-zero chance that someone somewhere will
         | actually manage to build the tech up into something close
         | enough to AGI to serve, which in essence means deprecating the
         | labor class. The benefits (to that specific someone, anyway...)
         | would be staggering enough to make that a goal worth pursuing
         | even if the odds of reaching it are unclear and arguably quite
         | low.
         | 
         | - The increasingly leveraged debt that's funding the land
         | rush's capex needs to be paid off somehow and I'll venture
         | everyone knows that the winners will possibly be able to, but
         | not everyone will be a winner. In that scenario, you really
         | don't want to be a non-winner. It's kind of like that joke
         | where you don't need to outrun the lions, you only need to
         | outrun the other runners, except in this case the harder
         | everyone runs and the bigger the lions become. (Which is a
         | funny thought _now_ , sure, but the feasting, when it comes,
         | will be a bloodbath.)
         | 
         | - A few, I'll daresay, have perhaps been huffing each other's
         | farts too deep and too long and genuinely believe the words of
         | ebullient enthusiasm coming out of their own mouths. That,
         | and/or they think everyone's job except theirs is simple
         | actually, and therefore just this close to being replaceable
         | (which is a distinct flavor of fart, although coming from
         | largely the same sources).
         | 
         | So basically the mania is for the most part a natural
         | consequence of what's going on in the overlap of the tech
         | itself and the incentive structure within which it exists,
         | although this might be a good point to remember that cancer and
         | earthquakes too are natural. Either way, take care of
         | yourselves and each other, y'all, because the ride is only
         | going to get bouncier for a while.
        
           | 12_throw_away wrote:
           | > There's a non-zero chance that someone somewhere will
           | actually manage to build the tech up into something close
           | enough to AGI
           | 
           | Bullshit
        
         | adventured wrote:
         | It's not "pure greed." It's keeping up with the Joneses. It's
         | fear.
         | 
         | There are three types of humans: mimics, amplifiers,
         | originators. ~99% of the population are basic mimics, and
         | they're always terrified - to one degree or another - of being
         | out of step with the herd. The hyper mimicry behavior can be
         | seen everywhere and at all times, from classrooms to Tiktok &
         | Reddit to shopping behaviors. Most corporate leadership are
         | highly effective mimics, very few are originators. They
         | desperately herd follow ('nobody ever got fired for buying
         | IBM').
         | 
         | This is the dotcom equivalent of every business must be e and @
         | ified (the advertising was aggressively targeted to that at the
         | time). 1998-2000, you must be e ready. Your hotdog stand must
         | have its own web site.
         | 
         | It is not greed-driven, it's fear-driven.
        
         | Workaccount2 wrote:
         | People think that because AI cannot replace a senior dev, it's
         | a worthless con.
         | 
         | Meanwhile, pretty much _every single person in my life is using
         | LLMs almost daily_.
         | 
         | Guys, these things are not going away, and people will pay more
         | money to use them in future.
         | 
         | Even my mom asks ChatGPT to make a baking applet with a picture
         | she uploads of the recipe, that creates a simple checklist for
         | adding ingredients (she forgets ingredients pretty often). She
         | loves it.
         | 
         | This is where LLMs shine for regular people. She doesn't need
         | it to create a 500k LOC turn-key baking tracking SaaS AWS back-
         | end 5 million recipes on tap kitchen assistant app.
         | 
         | She just needs a bespoke one off check list.
        
           | trollbridge wrote:
           | Is she going to pay enough to fund the multitrillion dollars
           | it costs to run the current AI landscape?
        
             | Workaccount2 wrote:
             | Yeah, she is, because when reality sets in, these models
             | will probably have monthly cellphone/internet level costs.
             | And training is the main money sink, whereas inference is
             | cheap.
             | 
             | 500,000,000 people paying $80/mo is roughly a 5-yr ROI on a
             | $2T investment.
             | 
             | I cannot believe on a tech forum I need to explain the "Get
             | them hooked on the product, then jack up the price"
             | business model that probably 40% of people here are kept
             | employed with.
             | 
             | Right now they are (very successfully) getting everyone
             | dependent on LLMs. They will pull rug, and people will pay
             | to get it back. And none of the labs care if 2% of people
             | use local/chinese models.
        
           | joshstrange wrote:
           | I think there are 2 things at play here. LLMs are, without a
           | doubt, absolutely useful/helpful but they have shortcomings
           | and limitations (often worth the cost of using). That said,
           | businesses trying to add "AI" into their products have a much
           | lower success rate than LLM-use directly.
           | 
           | I dislike almost every AI feature in software I use but love
           | using LLMs.
        
           | hagbarth wrote:
           | > People think that because AI cannot replace a senior dev,
           | it's a worthless con.
           | 
           | Quite the strawman. There are many points between "worthless"
           | and "worth 100s of billions to trillions of investment".
        
           | billywhizz wrote:
           | is this really the best use case you could come up with? says
           | it all really if so.
        
           | sensanaty wrote:
           | Are your mother's cooking recipes gonna cover the billions
           | and even trillions being spent here? I somehow doubt that,
           | and it's funny to me that the killer usecase the hypesters
           | use is stupid inane shit like this (no offense to your mom,
           | but a recipe generator isn't something we should be
           | speedrunning global economic collapse for)
        
           | YY843792387 wrote:
           | This false dichotomy is still frustratingly all over the
           | place. LLMs are useful for a variety of benign everyday use
           | cases, that doesn't mean that they can replace a human for
           | anything. And if those benign use cases is all they're good
           | at, then the entire AI space right now is maybe worth
           | $2B/year, tops. Which is still a good amount of money! Except
           | that's roughly the amount of money OpenAI spends every
           | minute, and it's definitely not "the next invention of fire"
           | like Sam Altman says.
        
             | ncr100 wrote:
             | Use case == Next iteration of "You're Fired" may be more
             | like it.
        
             | keeda wrote:
             | Even these everyday use-cases are infinitely varied and can
             | displace entire industries. E.g. ChatGPT helped me get $500
             | in airline delay compensation after multiple companies like
             | AirHelp blew me off:
             | https://news.ycombinator.com/item?id=45749803
             | 
             | For reference, AirHelp alone had a revenue of $153M last
             | year (even without my money ;-P):
             | https://rocketreach.co/airhelp-profile_b5e8e078f42e8140
             | 
             | This single niche industry as a whole is probably worth
             | billions alone.
             | 
             | Now multiply that by the number of niches that exist in
             | this world.
             | 
             | The consider the entire universe of formal knowledge work,
             | where large studies (from self-reported national surveys to
             | empirical randomized controlled trials on real-world tasks)
             | have already shown significant productivity boosts, in the
             | range of 30%. Now consider their salaries, and how much
             | companies would be willing to pay to make their employees
             | more productive.
             | 
             | Trillions is not an exaggeration.
        
         | rsynnott wrote:
         | I mean, see Windows Vista. It was eventually patched up to the
         | point where it was semi-usable (and then quietly killed off),
         | but on introduction it was a complete mess. But... something
         | had to be shipped, and this was something, so it was shipped.
         | 
         | (Vista wasn't the only one; Windows ME never even made it to
         | semi-usable, and no-one even remembers that Windows 8
         | _existed_.)
         | 
         | Microsoft has _never_, as far as I know, been a company to be
         | particularly concerned about product quality. The copilot stuff
         | may be unusually bad, but it's not that aberrant for MS.
        
         | DebtDeflation wrote:
         | >So how to explain the current AI mania being widely promoted?
         | 
         | CEOs have been sold on the ludicrous idea that "AI" will
         | replace 60-80% of their total employee headcount over the next
         | 2-3 years. This is also priced into current equity valuations.
        
         | int_19h wrote:
         | At this point, the people in charge have signed off on so much
         | AI spending that they _need_ it to succeed, otherwise they are
         | the ones responsible for massive losses.
        
       | ChrisArchitect wrote:
       | [dupe] https://news.ycombinator.com/item?id=46135388
        
       | forks wrote:
       | If you click through to the article shared yesterday[0]:
       | 
       | > Microsoft denies report of lowering targets for AI software
       | sales growth
       | 
       | This Ars Technica article cites the same reporting as that
       | Reuters piece but doesn't (yet) include anything about MSFT's
       | rebuttal.
       | 
       | [0]: https://news.ycombinator.com/item?id=46135388
        
         | mwkaufma wrote:
         | Semantics + Spin
        
       | nba456_ wrote:
       | made up story
        
       | shevy-java wrote:
       | Have we finally reached peak AI already? In that event we will
       | see the falling down phase next.
        
         | verdverm wrote:
         | Yea, we're getting their, had some people reach out to me who
         | only do so once a hype bubble is well formed
        
           | ares623 wrote:
           | What do you do and why do people reach out to you?
        
       | meindnoch wrote:
       | Top signal. Phase transition is imminent.
        
         | justonceokay wrote:
         | Blaming slow sales on salespeople is almost always a scapegoat.
         | Reality is that either the product sells or it doesn't.
         | 
         | Not saying that sales is useless, far from it. But with an
         | established product that people know about, the sales team is
         | more of a conduit than they are a resource-gathering operation.
        
           | seanw444 wrote:
           | > Reality is that either the product sells or it doesn't.
           | 
           | Why do people use this useless phrase template?
           | 
           | Yeah, the point is that it's not selling, and it's not
           | selling because people are getting increasingly skeptical
           | about its actual value.
        
             | Ylpertnodi wrote:
             | > it's not selling because people are getting increasingly
             | skeptical about its actual value.
             | 
             | So why are the sales-peops being blamed?
        
               | jccooper wrote:
               | I think the point of this headline is that they're not
               | being blamed in this one instance.
        
           | throwawaylaptop wrote:
           | I worked car sales for years. The same large dealership can
           | have a person anyone would call a decent salesperson, and
           | they made $4k a month. There was also two people at that
           | dealership making $25k+ a month each.
           | 
           | If your organization is filled with the $4k type and not the
           | $25k type, you're going to have a bad time.
           | 
           | I was #7 in the US while working at a small dealership. I
           | moved the the large dealership mentioned above and instantly
           | that dealership became #1 for that brand in the country,
           | something they had never done before. Because not only did I
           | sell 34 cars a month without just cannibalizing others sales,
           | I showed others that you can show up one day and do well so
           | there weren't many excuses. The output of the entire place
           | went up.
           | 
           | So, depending on the pay plan and hiring process, who exactly
           | is working at Microsoft right now selling AI? I honestly have
           | no idea. It could be rock stars and it could be the $4k guys
           | happy they're making $10k at Microsoft.
        
         | cosmicgadget wrote:
         | Lol "Microsoft can't make something work ergo the technology is
         | not feasible".
        
           | parliament32 wrote:
           | "The technology is not useful", at least in enterprise
           | contexts, is what this comes out to. Which is really where
           | the money is, because some vibecoder paying $20/mo for Claude
           | really doesn't matter (especially when it costs $100/mo to
           | run inference for his queries in the first place). Enterprise
           | is the only place this could possibly make money.
           | 
           | Think about it: MS has a giant advantage over every other AI
           | vendor, that they can directly insert the product into the OS
           | and LOB apps _without_ the business needing to onboard a new
           | vendor. This is best case scenario, and by far the easiest
           | sell for these tools. Given how badly they 're failing, yeah,
           | turns out orgs just don't see the value in it.
           | 
           | Next year will be interesting too: I suspect a large portion
           | of the meager sales they managed to make will not renew,
           | it'll be a bloodbath.
        
             | cosmicgadget wrote:
             | MS has a giant advantage over every other vendor for all
             | kinds of products (including defunct ones). Sometimes they
             | function well, sometimes they do not. Sometimes they make
             | money, sometimes they do not. MS isn't the tech (or even
             | enterprise tech) bellcow.
             | 
             | Considering enterprise typically is characterized by
             | perfunctory tasks, information silos, and bit rot, they're
             | a perfect application of LLMs. It's just Microsoft kind of
             | sucks at a lot of things.
        
       | lysace wrote:
       | Is "The Information" credible? It's the sole source.
        
       | type0 wrote:
       | But is it sold enough to regular Windows Home users? If MS brings
       | an ultimatum: "you need to buy AI services to use Windows", they
       | might get a bunch more clueless subscribers. In the same way as
       | there's no ability to set up Windows without internet connection
       | and MS account they could make it mandatory to subscribe to
       | Copilot.
        
         | N19PEDL2 wrote:
         | I think Microsoft's long-term plan is exactly that: to make
         | Windows itself a subscription product. Windows 12 Home for
         | $4.99 a month, Copilot included. It will be called OSaaS.
        
         | add-sub-mul-div wrote:
         | > In the same way as there's no ability to set up Windows
         | without internet connection and MS account
         | 
         | Not true. They're clearly unwilling or unable to remove this
         | code path fully, or they would have done so by now. There's
         | just a different workaround for it every few years.
        
       | mythz wrote:
       | Despite having an unlimited warchest I'm not expecting Microsoft
       | to come out as a winner from this AI race whilst having the
       | necessary resources. The easy investment was to throw billions at
       | OpenAI to gain access to their tech, but that puts them in a
       | weird position of not investing heavily in cultivating their own
       | AI talent and being in control of their own destiny by having
       | their own horse in the race with their own SOTA models.
       | 
       | Apple's having a similar issue, unlimited wealth that's
       | outsourcing to external SOTA model providers.
        
       | ceroxylon wrote:
       | As someone who appreciates machine learning, the main dissonance
       | I have with interacting with Microsoft's implementation of AI
       | feels like "don't worry, we will do the thinking for you".
       | 
       | This appears everywhere, with every tool trying to autocomplete
       | every sentence and action, creating a very clunky ecosystem where
       | I am constantly pressing 'escape' and 'backspace' to undo some
       | action that is trying to rewrite what I am doing to something I
       | don't want or didn't intend.
       | 
       | It is wasting time and none of the things I want are optimized,
       | their tools feel like they are helping people write "good morning
       | team, today we are going to do a Business, but first we must
       | discuss the dinner reservations" emails.
        
         | xnorswap wrote:
         | I broadly agree. They package "copilot" in a way that
         | constantly gets in your way.
         | 
         | The one time I thought it could be useful, in diagnosing why
         | two Azure services seemingly couldn't talk to each other, it
         | was completely useless.
         | 
         | I had more success describing the problem in vague terms to a
         | different LLM, than an AI supposedly plugged into the Azure
         | organisation that could supposedly directly query information.
        
           | yoyohello13 wrote:
           | I had the experience too. Working with Azure is already a
           | nightmare, but the copilot tool built in to Azure is
           | completely useless for troubleshooting. I just pasted log
           | output into Claude and got actual answers. Mincrosoft's first
           | party stuff just seems so half assed and poorly thought out.
        
             | foobarian wrote:
             | Why is this, I wonder? Aren't the models trained on about
             | the same blob of huggingface web scrapes anyway? Does one
             | tool do a better job of pre-parsing the web data, or pre-
             | parsing the prompts, or enhancing the prompts? Or a better
             | sequence of self-repair in an agent-like conversation? Or
             | maybe more precision in the weights and a more expensive
             | model?
        
               | blibble wrote:
               | > Why is this, I wonder?
               | 
               | because that's Microsoft's business model
               | 
               | their products are just just good enough to allow them to
               | put a checkbox in a feature table to allow it to be sold
               | to someone who will then never have to use it
               | 
               | but not even a penny more will be spent than the absolute
               | bare minimum to allow that
               | 
               | this explains Teams, Azure, and everything else they make
               | you can think of
        
               | elorant wrote:
               | Probably compute isn't enough to serve everyone from a
               | frontier LLM.
        
           | smileson2 wrote:
           | that's what happens when everyone is under the guillotine and
           | their lives depend on overselling this shit ASAP instead of
           | playing/experimenting to figure things out
        
           | vjvjvjvjghv wrote:
           | "They package "copilot" in a way that constantly gets in your
           | way."
           | 
           | And when you try to make it something useful, the response is
           | usually "I can't do that"
        
             | greazy wrote:
             | I asked copilot in outlook webmail to search my emails for
             | something I needed.
             | 
             | I can't do that.
             | 
             | that's the one use case where LLM is helpful!
        
           | Arwill wrote:
           | I had a WTF moment last week, i was writing SQL, and there
           | was no autocomplete at all. Then a chunk of autocomplete code
           | appeared, what looked like an SQL injection attack, with some
           | "drop table" mixed in. The code would have not worked, it was
           | syntactically rubbish, but still looked spooky, should have
           | made a screenshot of it.
        
             | xnorswap wrote:
             | This is the most annoying thing, and it's even happened to
             | Jetbrains' rider too.
             | 
             | Some stuff that used to work well with smart autocomplete /
             | intellisense got worse with AI based autocomplete instead,
             | and there isn't always an easy way to switch back to the
             | old heuristic based stuff.
             | 
             | You can disable it entirely and get dumb autocomplete, or
             | get the "AI powered" rubbish, but they had a very
             | successful heuristic / statistics based approach that
             | worked well without suggesting outright rubbish.
             | 
             | In .NET we've had intellisense for 25 years that would only
             | suggest properties that could exist, and then suddenly I
             | found a while ago that vscode auto-completed properties
             | that don't exist.
             | 
             | It's maddening! The least they could have done is put in a
             | roslyn pass to filter out the impossible.
        
               | cyberax wrote:
               | The regular JetBrains IDEs have a setting to disable the
               | AI-based inline completion, you can then just assign it
               | to a hotkey and call it when needed.
               | 
               | I found that it makes the AI experience so much better.
        
               | mrguyorama wrote:
               | There is no setting to revert back to the very reliable
               | and high quality "AI" autocomplete that reliably did not
               | recommend class methods that _do not exist_ and reliably
               | figured out the pattern I was writing 20 lines of without
               | randomly suggesting _100 lines of new code_ that only
               | disrupts my view of the code I am trying to work on.
               | 
               | I even clicked the "Don't do multiline suggestions"
               | checkbox because the above was so absurdly anti-
               | productive, but it was _ignored_
        
               | blackadder wrote:
               | This is my biggest frustration. Why not check with the
               | compiler to generate code that would actually compile?
               | I've had this with Go and .Net in the Jetbrains IDE. Had
               | to turn ML auto-completion off. It was getting in the
               | way.
        
               | harvey9 wrote:
               | Loosely related: voice control on Android with Gemini is
               | complete rubbish compared to the old assistant. I used to
               | be able to have texts read out and dictate replies whilst
               | driving. Now it's all nondeterministic which adds
               | cognitive load on me and is unsafe in the same way touch
               | screens in cars are worse than tactile controls.
        
               | vel0city wrote:
               | I've been immensely frustrated by no longer being able to
               | set reminders by voice. I got so used to saying "remind
               | me in an hour to do x" and now that's just entirely not
               | an option.
               | 
               | I'm a very forgetful person and easily distracted. This
               | feature was incredibly valuable to me.
        
               | netsharc wrote:
               | I got Gemini Pro (or whatever it's called) for free for a
               | year on my new Pixel phone, but there's an option to keep
               | Assistant, which I'm using.
               | 
               | Gotta love the enshittification: "new and better" being
               | more CPU cycles being burned for a worse experience.
               | 
               | I just have a shortcut to the Gemini webpage on my home
               | screen if I want to use it, and for some reason I can't
               | just place a shortcut (maybe it's my ancient launcher
               | that's not even in the play store anymore), so I have to
               | make a tasker task that opens the webpage when run.
        
               | tbd23 wrote:
               | The most WTF moment for me was that recent Visual Studio
               | versions hooked up the "add missing import" quick fix
               | suggestion to AI. The AI would spin for 5s, then delete
               | the entire file and only leave the new import statement.
               | 
               | I'm sure someone on the VS team got a pat on the back for
               | increasing AI usage but it's infuriating that they broke
               | a feature that worked perfectly for a decade+ without AI.
               | Luckily there was a switch buried in settings to disable
               | the AI integration.
        
             | zoeysmithe wrote:
             | The problem with scrapping the web for teaching AI is that
             | the web is full of 'little bobby tables' jokes.
        
             | a_t48 wrote:
             | The last time I asked Gemini to assist me with some SQL I
             | got (inside my postgres query form):                 This
             | task cannot be accomplished       USING         standard
             | SQL queries against the provided database schema.
             | Replication slots         managed through PostgreSQL system
             | views AND functions,         NOT through user-defined
             | tables. Therefore,         I must return
             | 
             | It's feels almost haiku-like.
        
               | wubrr wrote:
               | Gemini weirdly messes things up, even though it seems to
               | have the right information - something I started noticing
               | more often recently. I'd ask it to generate a curl
               | command to call some API, and it would describe
               | (correctly) how to do it, and then generate the
               | code/command, but the command would have obvious things
               | missing like the 'https://' prefix in some case,
               | sometimes the API path, sometimes the auth header/token -
               | even though it mentioned all of those things correctly in
               | the text summary it gave above the code.
               | 
               | I feel like this problem was far less prevalent a few
               | months/weeks ago (before gemini-3?).
               | 
               | Using it for research/learning purposes has been pretty
               | amazing though, while claude code is still best for
               | coding based on my experience.
        
             | mk89 wrote:
             | Same thing happened to me today in vs code. A simple helm
             | template:
             | 
             | ```{{ .default .Values.whatever 10 }}``` instead of the
             | correct ```{{ default 10 .Values.whatever }}```.
             | 
             | Pure garbage which should be solved by now. I don't
             | understand how it can make such a mistake.
        
           | mk89 wrote:
           | My 2 cents. It's when OKRs are executed without a vision, or
           | the vision is that one and well, it sucks.
           | 
           | The goal is AI everywhere, so this means top-down everyone
           | will implement it and will be rewarded for doing so, so thrre
           | are incentives for each team to do it - money, promotions,
           | budget.
           | 
           | 100 teams? 100 AI integrations or more. It's not 10 entry
           | points as it should be (maybe).
           | 
           | This means for a year or more, a lot of AI everywhere,
           | impossible to avoid, will make usability sink.
           | 
           | Now, if this was only done by Microsoft, I would not mind.
           | The issue is that this behavior is getting widespread.
           | 
           | Things are becoming increasingly unusable.
        
             | wlesieutre wrote:
             | Reminds me of when Google's core mission was to put Google
             | Plus integrations in everything
        
           | raw_anon_1111 wrote:
           | I have had great luck with ChatGPT trying to figure out a
           | complex AWS issue with
           | 
           | "I am going to give you the problem I have. I want you to
           | help me work backwards step by step and give me the AWS cli
           | commands to help you troubleshoot. I will give you the output
           | of the command".
           | 
           | It's a combination of advice that ChatGPT gives me and my own
           | rubberducking.
        
           | lostphilosopher wrote:
           | This seems like what should be a killer feature: Copilot
           | having access to configuration and logs and being able to
           | identify where a failure is coming from. This stuff is
           | tedious manually since I basically run through a checklist of
           | where the failure could occur and there's no great way to
           | automate that plus sometimes there's subtle typo type issues.
           | Copilot can generate the checklist reasonably well but can't
           | execute on it, even from Copilot within Azure. Why not??
        
         | butlike wrote:
         | That's because in its current form, that's all it's good for
         | reliably. Can't sell that it might hallucinate the numbers in
         | the Q4 report
        
         | PyWoody wrote:
         | > ...Microsoft's implementation of AI feels like "don't worry,
         | we will do the thinking for you"
         | 
         | I feel like that describes nearly all of the "productivity"
         | tools I see in AI ads. Sadly enough, it also aligns with how
         | most people use it, in my personal experience. Just a total
         | off-boarding of needing to think.
        
           | netsharc wrote:
           | The term is "cognitive offloading".
           | https://duckduckgo.com/?q=cognitive+offloading
           | 
           | Sheesh, I notice I also just ask an assistant quite a bit
           | rather than putting effort to think about things. Imagine
           | people who drive everywhere with GPS (even for routine
           | drives) and are lost without it, and imagine that for
           | everything needing a little thought...
        
         | latchkey wrote:
         | Dissonance runs straight through from top of the org chart.
         | 
         | https://x.com/satyanadella/status/1996597609587470504
         | 
         | Just 22 hours ago...
         | https://news.ycombinator.com/item?id=46138952
        
         | Edmond wrote:
         | >As someone who appreciates machine learning, the main
         | dissonance I have with interacting with Microsoft's
         | implementation of AI feels like "don't worry, we will do the
         | thinking for you".
         | 
         | This the nightmare scenario with AI, ie people settling for
         | Microsoft/OpenAI et al to do the "thinking" for you.
         | 
         | It is alluring but of course it is not going to work. It is
         | similar to what happened to the internet via social media, ie
         | "kickback and relax, we'll give you what you really want, you
         | don't have to take any initiative".
         | 
         | My pitch against this is to vehemently resist the chatbot-style
         | solutions/interfaces and demand intelligent workspaces:
         | 
         | https://codesolvent.com/botworx/intelligent-workspace/
        
         | pupppet wrote:
         | Too many companies have bolted AI on to their existing products
         | with the value-prop _Let us do the work (poorly) for you_.
        
         | jfarmer wrote:
         | I've worked in tech and lived in SF for ~20 years and there's
         | always been something I couldn't quite put my finger on.
         | 
         | Tech has always had a culture of aiming for "frictionless"
         | experiences, but friction is necessary if we want to maneuver
         | and get feedback from the environment. A car can't drive if
         | there's no friction between the tires and the road, despite
         | being helped when there's no friction between the chassis and
         | the air.
         | 
         | Friction isn't fungible.
         | 
         | John Dewey described this rationale in Human Nature and Conduct
         | as thinking that "Because a thirsty man gets satisfaction in
         | drinking water, bliss consists in being drowned." He concludes:
         | 
         | "It is forgotten that success is success of a specific effort,
         | and satisfaction the fulfillment of a specific demand, so that
         | success and satisfaction become meaningless when severed from
         | the wants and struggles whose consummations they are, or when
         | taken universally."
         | 
         | In "Mind and World", McDowell criticizes this sort of thinking,
         | too, saying:
         | 
         | > We need to conceive this expansive spontaneity as subject to
         | control from outside our thinking, on pain off representing the
         | operations of spontaneity as a frictionless spinning in a void.
         | 
         | And that's really what this is about, I think. Friction-free is
         | the goal but friction-free "thought" isn't thought at all. It's
         | frictionless spinning in a void.
         | 
         | I teach and see this all the time in EdTech. Imagine if
         | students could just ask the robot XYZ and how much time it'd
         | free up! That time could be spent on things like relationship-
         | building with the teacher, new ways of motivating students,
         | etc.
         | 
         | Except...those activities supply the "wants and struggles whose
         | consummations" build the relationships! Maybe the robot could
         | help the student, say, ask better questions to the teacher, or
         | direct the student to peers who were similarly confused but
         | figure it out.
         | 
         | But I think that strikes many tech-minded folks as
         | "inefficient" and "friction-ful". If the robot knows the answer
         | to my question, why slow me down by redirecting me to another
         | person?
         | 
         | This is the same logic that says making dinner is a waste of
         | time and we should all live off nutrient mush. The purposes of
         | preparing dinner is to make something you can eat and the
         | purpose of eating is nutrient acquisition, right? Just beam
         | those nutrients into my bloodstream and skip the rest.
         | 
         | Not sure how to put this all together into something pithy, but
         | I see it all as symptoms of the same cultural impulse. One
         | that's been around for decades and decades, I think.
        
           | greenavocado wrote:
           | People want the cookie, but they also want to be healthy.
           | They want to never be bored, but they also want to have
           | developed deep focus. They want instant answers, but they
           | also want to feel competent and capable. Tech optimizes for
           | revealed preference in the moment. Click-through rates,
           | engagement metrics, conversion funnels: these measure
           | immediate choices. But they don't measure regret, or what
           | people wish they had become, or whether they feel their life
           | is meaningful.
           | 
           | Nobody woke up in 2005 thinking "I wish I could outsource my
           | spatial navigation to a device." They just wanted to not be
           | lost. But now a generation has grown up without developing
           | spatial awareness.
        
             | seg_lol wrote:
             | > They want to never be bored
             | 
             | This is the problem. Learning to embrace boredom is best
             | thing I have ever done.
        
             | phantasmish wrote:
             | > Tech optimizes for revealed preference in the moment.
             | 
             | I appreciate the way you distinguish this from actual
             | revealed preference, which I think is key to understanding
             | why what tech is doing is so wrong (and, bluntly, evil)
             | despite it being what "people want". I like the term
             | "revealed impulse" for this distinction.
             | 
             | It's the difference between choosing not to buy a bag of
             | chips at the store or a box of cookies, because you know
             | it'll be a problem _and your actual preference is not to
             | eat those things_ , and having someone leave chips and
             | cookies at your house without your asking, and giving in to
             | the impulse to eat too many of them when _you did not want
             | them in the first place_.
             | 
             | Example from social media: My "revealed preference" is that
             | I sometimes look at and read comments from shit on my
             | Instagram algo feed. My _actual_ preference is that I have
             | no algo feed, just posts on my  "following" tab, or at
             | least that I could default my view to that. But IG's gone
             | out of their way (going so far as disabling deep link
             | shortcuts to the following tab, which used to work) to make
             | sure I don't get any version of my preference.
             | 
             | So I "revealed" that my preference is to look at those algo
             | posts sometimes, but _if you gave me the option_ to use the
             | app to follow the few accounts I care about (local
             | businesses, largely) but never see algo posts at all, ever,
             | I 'd hit that toggle and never turn it off. That's my
             | _actual_ preference, despite whatever was  "revealed". That
             | other preference isn't "revealed" because it's not even an
             | option.
        
               | greenavocado wrote:
               | Just like the chips and cookies the costs of social meida
               | are delayed and diffuse. Eating/scrolling feels good now.
               | The cost (diminished attention span, shallow
               | relationships, health problems) shows up gradually over
               | years.
        
           | TheOtherHobbes wrote:
           | I think that's partially true. The point is to have the
           | freedom to pursue higher-level goals. And one thing tech
           | doesn't do - and education in general doesn't do either - is
           | give experience of that kind of goal setting.
           | 
           | I'm completely happy to hand over menial side-quest
           | programming goals to an AI. Things like stupid little
           | automation scripts that require a lot of learning from poor
           | docs.
           | 
           | But there's a much bigger issue with tech products - like
           | Facebook, Spotify, and AirBnB - that promise lower friction
           | and more freedom but actually destroy collective and cultural
           | value.
           | 
           | AI is a massive danger to that. It's not just about
           | forgetting how to think, but how to _desire_ - to make
           | original plans and have original ideas that aren 't pre-
           | scripted and unconsciously enforced by algorithmic control
           | over motivation, belief systems, and general conformity.
           | 
           | Tech has been immensely destructive to that impulse. Which is
           | why we're in a kind of creative rut where too much of the
           | culture is nostalgic and backward-looking, and there isn't
           | that sense of a fresh and unimagined but inspiring future to
           | work towards.
        
           | ecshafer wrote:
           | I don't think I could agree with you more. I think that more
           | in tech and business should think about and read about
           | philosophy, the mind, social interactions, and society.
           | 
           | ED Tech for example I think really seems to neglect the kind
           | of bonds that people form when they go through difficult
           | things together, and the pushing through difficulties is how
           | we improve. Asking a robot xyz does not improve ourselves. AI
           | and LLMs do not know how to teach, they are not Socratic
           | pushing and prodding at our weaknesses and assessing us to
           | improve. The just say how smart we are.
        
           | isk517 wrote:
           | In my experience part of the 'frictionless' experience is
           | also to provide minimal information about any issues and no
           | way to troubleshoot. Everything works until it doesn't, and
           | when it doesn't you are now at the mercy of the customer
           | support que and getting an agent with the ability to fix your
           | problem.
        
           | davidivadavid wrote:
           | Looking at it from a slightly different angle, one I find
           | most illuminating, removing "friction" is like removing
           | "difficulty" from a game, and "friction free" as an ideal is
           | like "cheat codes from the start" as an ideal. It's making a
           | game where there's a single button that says "press here to
           | win." The goal isn't the remove "friction", it's the remove a
           | specific type of valueless friction, to replace it with
           | valuable friction.
        
           | whatever1 wrote:
           | I don't know. You can be banging your head against the wall
           | to demolish it or you can use manual/mechanical equipment to
           | do so. If the wall is down, it is down. Either way you did
           | it.
        
           | bwfan123 wrote:
           | > but friction is necessary if we want to maneuver and get
           | feedback from the environment
           | 
           | You are positing that we are active learners whose goal is
           | clarity of cognition and friction and cognitive-struggle is
           | part of that. Clarity is attempting to understand the "know-
           | how" of things.
           | 
           | Tech and dare I say the natural laziness inherent in us
           | instead wants us to be zombies being fed the "know-that" as
           | that is deemed sufficient. ie the dystopia portrayed in the
           | matrix movie or the rote student regurgitating memes. But
           | know-that is not the same as know-how, and know-how is
           | evolving requiring a continuously learning agent.
        
           | jjkaczor wrote:
           | This is perhaps one of the most articulate takes on this I
           | have ever read - thank-you!
           | 
           | And - for myself, it was friction that kickstarted my
           | interest in "tech" - I bought a janky modem, and it had IRQ
           | conflicts with my Windows 3 mouse at the time - so, without
           | internet (or BBS's at that time), I had to troubleshot and
           | test different settings with the 2-page technical manual that
           | came with it.
           | 
           | It was friction that made me learn how to program and read
           | manuals/syntax/language/framework/API references to
           | accomplish things for hobby projects - which then led to
           | paying work. It was friction not having my "own" TV and
           | access to all the visual media I could consume "on-demand" as
           | a child, therefore I had to entertain myself by reading
           | books.
           | 
           | Friction is good.
        
         | stogot wrote:
         | The disappointing thing is I'd rather them spend the time
         | improving security but it sounds like all cycles are shoved
         | into making AI shovels. Last year, the CEO promised security
         | would come first but it's not the case
         | 
         | https://www.techspot.com/news/102873-microsoft-now-security-...
        
         | dustingetz wrote:
         | Dear MS please use AI to autocomplete my billing address
         | correctly when I fill out web forms, thanks
        
       | justapassenger wrote:
       | AI is people looking at EV hype and saying - I'll 100x it.
       | 
       | It has all the same components, just on much higher scale:
       | 
       | 1. Billionaire con-man convincing large part of market and
       | industry (Altman in AI vs Musk in EV) that new tech will take
       | over in few years.
       | 
       | 2. Insane valuations not supported by an actual ROI.
       | 
       | 3. Very interesting and amazing underlying technology.
       | 
       | 4. Governments jumping on the hype and enabling it.
        
         | cosmicgadget wrote:
         | The valuations are based on value, not revenue.
        
       | grim_io wrote:
       | What can you even do in the ms enterprise ecosystem with their
       | copilot integration?
       | 
       | Is it just for chatting? Is it a glorified RAG?
       | 
       | Can you tell copilot co to create a presentation? Make a
       | visualisation in a spreadsheet?
        
         | cosmicgadget wrote:
         | It wants to help create things in Office documents, I imagine
         | just saving you the copy and paste from the app or web form.
         | The one thing I tried to get it to do was to take a spreadsheet
         | of employees and add a column with their office numbers (it has
         | access to the company directory). The response was something
         | like "here's how you would look up a office number, you're
         | welcome!"
         | 
         | It is functional at RAG stuff on internal docs but definitely
         | not good - not sure how much of this is Copilot vs corporate
         | disarray and access controls.
         | 
         | It won't send emails for me (which I would think is the agentic
         | mvp) but that is likely a switch my organization daren't turn
         | on.
         | 
         | Tldr it's valuable as a normal LLM, very limited as a add-on to
         | Microsoft's software ecosystem.
        
         | jabroni_salad wrote:
         | Chatting and everything you normally do in chats is there.
         | needle hunting info out of all my Teams group chats is probably
         | my favorite thing. It can retrieve info out of sharepoint I
         | guess.
         | 
         | Biggest complaint for me personally is that you run out of
         | context very quickly. If you are used to having longer running
         | chats on other platforms you won't be happy when Copilot tells
         | you to make a new chat like 5 messages in.
         | 
         | For most of my clients they are only interested in meeting
         | minutes and otter does that for 25% of the price. I think in
         | any given business the qty of people who actually use textgen
         | regularly is pretty low. My workplace is looking to downsize
         | licenses and asking people to use it or lose it because
         | $21/user/mo is too much to have as a every now and then
         | novelty.
        
         | LtWorf wrote:
         | It's basically clippy without the funny animations.
        
       | glimshe wrote:
       | The difference between poison and medicine is the amount. AI is
       | great and very useful, but they want the AI to replace you
       | instead of supporting your needs.
       | 
       | "AI everywhere" is worse than "AI nowhere". What we need is "AI
       | somewhere".
        
         | gdulli wrote:
         | That's what we had before LLMs. Without the financially imposed
         | contrivance of it needing to be used everywhere, it was free to
         | be used where it made sense.
        
       | pjmlp wrote:
       | Even Devblogs and anything related to Java,.NET, C++ and Python
       | out of Redmond seems to be all around AI and anything else are
       | now low priority tickets on their roadmaps.
       | 
       | No wonder there is this exhaustion.
        
       | kryogen1c wrote:
       | I went to Ignite a few weeks ago, and the theme of the event and
       | most talks was "look at how we're leveraging AI in this product
       | to add value".
       | 
       | Separately, the theme from talking to Every. Single. Person on
       | the buy-side was _gigantic eye roll_ yes I cant wait for AI to
       | solve all my problems.
       | 
       | Companies I support are being directed from their presidents to
       | use ai, literally a solution in search of a problem.
        
       | derekcheng08 wrote:
       | Super interesting how this arc has played out for Microsoft. They
       | went from having this massive advantage in being an early OpenAI
       | partner with early access to their models to largely losing the
       | consumer AI space: Copilot is almost never mentioned in the same
       | breath as Claude and ChatGPT. Though I guess their huge stake in
       | OpenAI will still pay out massively from a valuation perspective.
        
         | Zigurd wrote:
         | Microsoft seems to be actively discarding the consumer PC
         | market for Windows. It's gamers and enterprise, it seems.
         | Enterprise users don't get a lot of say in what's on their
         | desktop.
        
         | xnorswap wrote:
         | It's because Copilot isn't (just) a model, it's a brand that's
         | been slapped on any old rubbish.
         | 
         | If Clippy were still around, that'd have been rebranded as
         | Copilot by now.
        
           | blitzar wrote:
           | If they resurected Clippy and made it the face of their Ai I
           | would switch in a heartbeat.
        
             | int_19h wrote:
             | https://felixrieseberg.github.io/clippy/
        
               | blitzar wrote:
               | That is impressive! I really want clippy to chime in and
               | tell me it looks like i am writing a letter and offer to
               | help.
        
         | downrightmike wrote:
         | They made Copilot the term for AI and smeared it everywhere to
         | the point that it has no meaning and therefore no usage when
         | talking about AI.
        
       | cmiles8 wrote:
       | Hearing similar stories play out elsewhere too with targets being
       | missed left and right.
       | 
       | There's definitely something there with AI but a giant chasm
       | between reality and the sales expectations on what's needed to
       | make the current financial engineering on AI make any sense.
        
       | more_corn wrote:
       | I wonder if it's because Microsoft is hyper focused on a bunch of
       | crap people don't want or need?
        
       | rewilder12 wrote:
       | Anyone who has had the pleasure of being forced to migrate to
       | their new Fabric product can tell you why sales are low. It's
       | terrible not just because it's a rushed buggy pile of garbage
       | they want people to Alpha test on users but because of the "AI
       | First" design they are forcing into it. They hide so much of
       | what's happening in the background it is hard to feel like you
       | can trust any of it. Like agentic "thinking" models with zero way
       | to look into what it did to get to the conclusion.
        
         | yoyohello13 wrote:
         | Every new Microsoft product is like this. It all has that
         | janky, slapped together at the last minute feeling.
        
           | codr7 wrote:
           | I can see why Microsoft likes AI and thinks it's great for
           | writing code.
           | 
           | The kind of code AI writes is the kind of code Microsoft has
           | always written.
        
       | mayhemducks wrote:
       | Hopefully this is the beginning of the trough of disillusionment,
       | and the steady return of rationalism.
        
       | Bluescreenbuddy wrote:
       | Good. Go make your OS useful and stop alienating your enterprise
       | customers.
        
       | lawlessone wrote:
       | People are wondering how we got here when these AI's make so many
       | mistakes.
       | 
       | But the one thing they're really good at is marketing.
       | 
       | That's why it's all over linkedin etc, marketing people see how
       | great it is and think it must be great at everything else too.
        
       | aabajian wrote:
       | I think MSFT really needs some validated user stories. How many
       | users want to, "Improve my writing," "Create an image,"
       | "Understand what is changed" (e.g. recent edits), or "Visualize
       | my data."?
       | 
       | Those are the four use cases featured by the Microsoft 365
       | Copilot App (https://m365.cloud.microsoft/).
       | 
       | Conversely, I bet there are a lot of people who want AI to
       | improve things _they are already doing repeatedly._ For example,
       | I click the same button in Epic every day because Epic can 't
       | remove a tab. Maybe Copilot could learn that I do this and
       | just...do it for me? Like, Copilot could watch my daily habits
       | and offer automation for recurring things.
        
         | blitzar wrote:
         | > Copilot could watch my daily habits and offer automation for
         | recurring things
         | 
         | Pretty sure the advertising department already watches you and
         | helpfully suggests things that you need to buy.
        
         | trollbridge wrote:
         | I can't find any use case for Copilot at all, and I frequently
         | "sell" people Microsoft 365. (I don't earn a commission; I just
         | help them sign up for it.) I cannot come up with a reason
         | anyone needs Copilot.
         | 
         | Meanwhile I spent 3-4 hours working with a client yesterday
         | using Dreamhost's free AI tools to get them up and running with
         | a website quickly whilst I configured Microsoft 365,
         | Cloudflare, email and so forth for them.
        
         | gibsonsmog wrote:
         | >improve things they are already doing repeatedly. For example,
         | I click the same button in Epic every day because Epic can't
         | remove a tab. Maybe Copilot could learn that I do this and
         | just...do it for me?
         | 
         | You could solve that issue (and probably lot's of similar
         | issues) with something like Auto Hotkey. Seems like extreme
         | overkill to have an autonomous agent watch everything you do,
         | so it might possibly click a button.
        
           | fainpul wrote:
           | And in an ideal world, one could report this as a bug or
           | improvement and get it fixed for every single user without
           | them needing to do anything at all.
        
             | aabajian wrote:
             | Well, it isn't every user. We use a version of Epic called
             | Epic Radiant. It's designed for radiologists. The tab that
             | always opens is the radiologist worklist. The thing is, we
             | don't use that worklist for procedures (I'm an
             | interventional radiologist). So that tab is always there,
             | always opens first, and always shows an empty list. It
             | can't be removed in the Radiant version of Epic.
        
               | PenguinCoder wrote:
               | I'm sure you have, but try be bringing that up to Epic,
               | not introducing AI slop and Data gathering into HIPPA
               | workflows.
        
             | MengerSponge wrote:
             | But why would Epic spend money improving or fixing their
             | software? If they spend money developing their product then
             | they can't spend that money on their adult playground of a
             | campus!
        
           | aabajian wrote:
           | Auto Hotkey doesn't work well for Epic manipulation because
           | Epic runs inside of a Citrix Virtual Machine. You can't just
           | read Window information and navigate that way. You'd have to
           | have some sort of on-screen OCR to detect whether Epic is
           | open, has focus, and is showing the tab that I want to close.
           | Also, the tab itself can't be closed...I'm just clicking on
           | the tab next to it.
        
             | BeetleB wrote:
             | Doable in Autohotkey. You can take a screenshot of what to
             | look for, and tell AutoHotKey to navigate the mouse to it
             | on the screen if it finds it.
             | 
             | I've done similar things.
        
         | mey wrote:
         | But do you (or MSFT) trust it to do that correctly,
         | consistently, and handle failure modes (what happens when the
         | meaning of that button/screen changes)?
         | 
         | I agree, an assistant would be fantastic in my life, but LLMs
         | aren't AGI. They can not reason about my intentions, don't ask
         | clarifing questions (bring back ELIZA), and handle state in an
         | interesting way (are there designs out there that automatically
         | prune/compress context?).
        
         | abrichr wrote:
         | > Like, Copilot could watch my daily habits and offer
         | automation for recurring things.
         | 
         | We're working on it at
         | https://github.com/openadaptai/openadapt.
        
         | ManuelKiessling wrote:
         | I think what people want in the long term is truly malleable
         | software: https://manuel.kiessling.net/2025/11/04/what-if-
         | software-shi...
        
         | BeetleB wrote:
         | I actually would like it to improve my writing. Problem is LLMs
         | aren't particularly good for this (yet).
        
       | mwkaufma wrote:
       | Meanwhile, divisions that make actual products people wants are
       | expected to subsidize the hype department:
       | https://www.geekwire.com/2025/new-report-about-crazy-xbox-pr...
        
       | niceworkbuddy wrote:
       | I wonder what part of these failed sales is due to GDRP
       | requirements in the IT enterprise industry. I have my own
       | european view, and it seems our governments are treating the
       | matter very seriously. How do you ensure an AI agent won't leak
       | anything? It just so happened that it wiped entire database or
       | cleared a disk and later being very "sorry" about it. Is the risk
       | worth it?
        
       | knowitnone3 wrote:
       | Why do they have salespeople when AI could have done the job?
        
       | zkmon wrote:
       | >> The Information notes that much of Microsoft's AI revenue
       | comes from AI companies themselves renting cloud infrastructure
       | rather than from traditional enterprises adopting AI tools for
       | their own operations.
       | 
       | And MS spends on buying AI hardware. That's a full circle.
        
       | drumhead wrote:
       | Too much money being spent on a technology that isnt ready to do
       | what they're saying it can do. It feels like the 3G era all over
       | again. Billion spent on 3G licences which didnt deliver what they
       | expected it would.
        
       | breve wrote:
       | Why wasn't AI able to help them meet their sales targets?
       | 
       | Can't Microsoft supercharge its workflow with these five weird
       | prompts that bring a new layer of intelligence to its
       | productivity:
       | 
       | https://fortune.com/2025/09/02/billionaire-microsoft-ceo-sat...
        
       | maxdo wrote:
       | It's almost a revenge of the engineers. The big players' path to
       | "success" has been to slap together some co-pilot loaded with
       | enterprise bloat and try to compete with startups that solve the
       | same problems in a much cleaner way.
       | 
       | Meanwhile, they believed the market was already theirs--so their
       | logic became: fire the engineers, buy more GPUs.
       | 
       | I have mixed feelings about this. I've interviewed several people
       | who were affected by these layoffs, and honestly, many of them
       | were mediocre engineers by most measures. But that still doesn't
       | make this a path to success.
        
         | kace91 wrote:
         | >I've interviewed several people who were affected by these
         | layoffs, and honestly, many of them were mediocre engineers by
         | most measures. But that still doesn't make this a path to
         | success.
         | 
         | How mediocre are we talking about here? (I'm curious)
        
           | fingerlocks wrote:
           | Very poor & mediocre.
           | 
           | You can find secret little pockets within Microsoft where
           | individuals & small teams do nothing at all, day in and day
           | out. I mean literally nothing. The game is to maximize life
           | and minimize work at the expense of the company. The managers
           | are in on the game and help with the cover-up. I find it
           | hilariously awesome and kind of sad at the same time.
           | 
           | Anyway, one round of layoffs this year was specifically
           | targeted at finding these pockets and snuffing them out. The
           | evidence used to identify said pocket was slowly built out
           | over a year ahead of time. It's very likely that these
           | pockets also harbored poor & mediocre developers, it stands
           | to reason that a poor or mediocre developer is more likely to
           | gravitate to such a place.
           | 
           | Not saying all the developers that were laid off were in a
           | free-loader pocket, or that this cohort must be the ones that
           | were interviewed. I'm only suggesting that the mediocre
           | freeloaders form a significant slice of the Venn diagram.
        
             | lawlessone wrote:
             | Damn that is crazy, how do you measure it? , AI use? , i
             | hope you saying this doesn't affect the employment
             | prospects of the ones that aren't "mediocre" but happened
             | to be on those teams.
        
           | lawlessone wrote:
           | Aren't most of us mediocre?
        
       | tinyhouse wrote:
       | Microsoft is strange cause it reports crazy growth numbers for
       | Azure but I never hear about any tech company using Azure (AWS
       | and GCP dominate here). I know it's more popular in big
       | enterprises, banks, pharma, government, etc. and companies like
       | Openai use their GPU offerings. Then there's all the Office stuff
       | (Sharepoint, One Drive, etc). Who knows what they include under
       | Azure numbers. Even Github can be considered "cloud".
       | 
       | My point is, outside of co-pilot, very few consider Microsoft
       | when they are looking for AI solutions, and if you're not already
       | using Azure, why would you even bother check what they offer. At
       | this point, their biggest ticket is their OpenAI stake.
       | 
       | With that being said, I should give them some credit. They do
       | some interesting research and have some useful open source
       | libraries they release and maintain in the AI space. But that's
       | very different than building AI products and solutions for
       | customers.
        
       | ChrisArchitect wrote:
       | Again? https://news.ycombinator.com/item?id=46135388
       | 
       | Not only that but the headline and story changed by the time Ars
       | went to print:
       | 
       |  _Microsoft denies report of lowering targets for AI software
       | sales growth_
        
       | gwerbret wrote:
       | A bit tangential and pedantic, but:
       | 
       | > At the heart of the problem is the tendency for AI language
       | models to confabulate, which means they may confidently generate
       | a false output that is stated as being factual.
       | 
       | "Confabulate" is precisely the correct term; I don't know how we
       | ended up settling on "hallucinate".
        
         | kace91 wrote:
         | >fabricate imaginary experiences as compensation for loss of
         | memory
         | 
         | Uh, TIL. This is wildly different to the Spanish meaning,
         | confabular means to plot something bad (as in a conspiracy).
         | 
         | Which is a weird evolution in both languages, as the Latin root
         | seems to mean simply "talking together".
        
         | rsynnott wrote:
         | I mean, neither is a great term, in that they both refer to
         | largely dissimilar psychological phenomena, but confabulate is
         | at least a lot _closer_.
        
         | delecti wrote:
         | The bigger problem is that, whichever term you choose
         | (confabulate or hallucinate), that's what they're _always_
         | doing. When they produce a factually correct answer, that 's
         | just as much of a random fabrication based on training data as
         | when they're factually incorrect. Either of those terms falsely
         | implies that they "know" the answer when they get it right, but
         | "confabulate" is worse because there isn't "gaps in their
         | memory", they're just always making things up.
        
       | gjmveloso wrote:
       | "They just have no taste" - Steve Jobs
       | 
       | Microsoft had a great start with the exclusive rights over OpenAI
       | tech but they're not capable of really talking with developers
       | within those large companies in the same sense Google and AWS are
       | rapidly catching-up.
        
       | cleandreams wrote:
       | For the first time I have begun to doubt Microsoft's chosen
       | course. (I am a retired MS principal engineer.) Their integration
       | of copilot shows all the taste and good tradeoff choices of Teams
       | but to far greater consequence. Copilot is irritating. MS
       | dependence on OpenAI may well become dicey because that company
       | is going to be more impacted by the popping of the AI bubble than
       | any other large player. I've read that MS can "simply" replace
       | ChatGPT by rolling their own -- maybe they can. I wouldn't bet
       | the company on it. Is google going to be eager to license Gemini?
       | Why would they?
        
       | keeda wrote:
       | This is annoying because Ars is one of the better tech blogs out
       | there, but it still has instances of biased reporting like this
       | one. It's interesting to decipher this article with an eye on
       | what they said, what they implied, and what they _didn 't say_.
       | 
       | Would be good if a sales person chime could in to keep me honest,
       | but:
       | 
       | 1. There is a difference between _sales quotas_ and _sales growth
       | targets_. The former is a goal, latter is aspirational, a
       | "stretch goal". They were not hitting their stretch goals.
       | 
       | 2. The stretch goals were, like, _doubling_ the sales in a year.
       | And they dropped it to 25% or 50% growth. No idea what the
       | adoption of such a product should be, but doubling sounds pretty
       | ambitious? I really can 't say, and neither did TFA.
       | 
       | 3. Only a fraction met their _growth goals_ , but I guess it's
       | safe to assume most hit their sales quotas, otherwise that's what
       | the story would be about. Also, this implies some DID hit their
       | growth goals, which implies at least some doubled their sales in
       | a year. Could be they started small so doubling was easy, or
       | could be a big deal, we don't know.
       | 
       | 4. Sales quotas get revised all the time, especially for new
       | products. Apparently, this was for a single product, Foundry,
       | which was launched a year ago, so I expect some trial and error
       | to figure out the real demand.
       | 
       | 5. From the reporting it seems Foundry is having problems
       | connecting to internal data sources... indicating it's a problem
       | with engineering, and not a problem with the _AI_ itself. But TFA
       | focuses on AI issues like hallucinations.
       | 
       | 6. No reporting on the dozens of other AI products that MSFT has
       | churned out.
       | 
       | As an aside, it seems data connectivity issues are a stickier
       | problem than most realize (e.g. organizational issues) and I
       | believe Palantir created the FDE role for just this purpose:
       | https://nabeelqu.substack.com/p/reflections-on-palantir
       | 
       | Maybe without that strategy it would be hard for a product like
       | this to work.
        
       | naves wrote:
       | It truly looks like they didn't learn anything from Clippy...
        
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