Why AI Currently Costs More Than the Human Labor It Replaces
Wing Lam pushes back on the assumption that AI automatically cuts labor costs. He describes operators getting shocked by their AI bills at month's end, discovering they spent tens of thousands of dollars to replace a single employee because every interaction with an AI system runs a metered clock.
- Owners report being able to hire 20 people for what an AI system ends up costing.
- One example: spending $80,000 to replace a single employee's role.
- Every AI query is metered, so usage-based billing can outrun expectations fast.
- Wahoo's has looked at AI-driven kiosks and augmented-reality ordering but hasn't deployed them, partly on cost.
“It's AI is costing more than human labor right now.”
“And I spent 80 grand to replace one person.”