If an LLM is too expensive it won't be next year
The cost of AI tokens is expected to decline significantly over the next few years, potentially making AI more cost-effective than human workers. Historical trends suggest that token prices could drop to a fraction of their current costs, driven by advancements in technology and efficiency. This trend may continue for several more years, leading to substantial changes in the labor market.
- ▪AI can currently cost more than human workers, but this is expected to change as token prices drop.
- ▪Historical data shows a consistent decline in token costs, with predictions of a 90% reduction per year.
- ▪Advancements in AI technology and model efficiency are likely to sustain this trend for at least the next three years.
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AI can cost more than human workers nowThis is an Axios headline but the tldr is that once an LLM can do your job it will undercut you the next year.This is the article and it focuses on token and infrastructure costs. Not cleaning up messes or other times a person needs to be in the loop. For example "Uber's chief technology officer already blew through his full 2026 AI budget due to token costs"Example of someone thinking tokens will stay expensive. No shade, it is just my belief they are wrong on this one claim. There is a 7 year and a 4 year trend of the price drop to 1/10th a year for a set quality of token. As in $1 million become $1 hundred cost in 4 years.
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