Gerstner argues replacing a software engineer may require 2 million expensive tokens where quality matters significantly.
“if you're talking about replacing a software engineer for two hours, that may take 2,000,000 expensive tokens. And the consequence of using something that's 95% as good is really high.”
Gerstner uses consulting firms charging $200/hour as example for AI agent replacement economics.
“if an AI agent is replacing a $200 an hour consultant right? Take that as an example. So three consulting firms, they're competing. They need the smartest consultant. It they're charging $200 an hour.”
Gerstner says Jensen claims NVIDIA can scale business 2-3x while increasing headcount only 20-25% using AI agents
“This idea that Jensen can scale the business two or three times with, you know, increasing the headcount by, you know, 20 or 25%. Right?”