The world is witnessing a dramatic shift in the job market, with the rise of agentic AI replacing human workers. This phenomenon is not just a trend but a fundamental change in the way businesses operate. The collapse in the price of intelligence, driven by the rapid advancements in AI technology, is making it possible for companies to replace human workers with AI agents. These agents are designed to apply AI reasoning and data to specific business tasks, such as dealing with customer queries, developing marketing plans, or processing legal documents. The price of intelligence has dropped significantly in the past two years, with the price of middling intelligence falling from $30 to 3 cents. This drop in price has been caused by competition, with new players like DeepSeek from China offering a full range of PhD-level reasoning for free. The result is that LLM tokens have become a commodity, and the companies that produce them are quickly becoming low-margin utilities. This shift in the job market is not just about the replacement of human workers with AI agents. It's also about the way AI is changing the world. Companies are now 'hiring' AI agents to work for them, instead of just asking AI questions. These agents are designed to operate like the agents that companies are using to replace human workers, doing the work for you rather than just telling you the answer. As the price of intelligence continues to collapse, the future of work is likely to be shaped by AI, with human workers being replaced by intelligent machines. This shift will have significant implications for the job market, with the potential for mass job losses and the need for workers to adapt to new roles. The question remains: how far will this go? Will AI eventually replace all human workers, or will it simply augment human capabilities? The answer to this question is not yet clear, but one thing is certain: the future of work is being shaped by the rapid advancements in AI technology.
