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Marginal Revolutionanalysis

Might AI hurt corporate profits? (from my email)

Marginal Revolution
Monday, June 8, 2026 at 5:08 AM
~4 min read

Original Report

From Clifford Sosin: I loved your talk about AI and wanted to bounce an idea off you. I think AI may be bad for corporate profit margins. A lot of companies make money because their customers can’t...

From Clifford Sosin: I loved your talk about AI and wanted to bounce an idea off you. I think AI may be bad for corporate profit margins. A lot of companies make money because their customers can’t be bothered to monitor them more closely, or to insource something. Customers let the company make some money […] The post Might AI hurt corporate profits? (from my email) appeared first on Marginal REVOLUTION.

Glass House Analysis

Corporate decisions reverberate through local communities—a merger might mean headquarters relocating, a restructuring could eliminate jobs, and strategic shifts affect suppliers and service providers in countless towns. Behind quarterly earnings numbers are real employment decisions, investment choices, and community impacts that shape the economic landscape of regions across the country.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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