Artifact Production Just Got Cheap – What remains when code costs nothing (dekodiert.de)

Recent advancements in AI have dramatically reduced inference costs, enabling the creation of knowledge work artifacts—like operating models and board presentations—at unprecedented speeds and low costs. A recent instance highlighted that an individual could produce a comprehensive operating model and a polished presentation in less than an hour using AI tools like Claude, compared to traditional analysts who would take a full day. This shift signifies a significant disruption in sectors like consulting, where foundational models are crumbling as automation takes over tasks historically performed by junior staff. With reduction in artifact production costs, firms are forced to reevaluate their value propositions. The implications of this trend are profound, not only for operational efficiency but for the essence of what organizations offer. As the output of knowledge work becomes commoditized, firms must shift focus from production to ensuring quality through human judgment, or "taste," which cannot be automated. This change is reshaping consulting practices, with fewer layers in the organizational structure and reduced reliance on junior consultants. Companies need to emphasize brand differentiation and critical evaluation rather than mere execution, as they adapt to a landscape where artifacts can be generated at negligible costs, pushing the boundaries of how value is defined and delivered in the business world.