This cost disparity, in his view, undermines the value of entry-level positions. At his company, which focuses on detecting unauthorized deepfake content, there's growing concern that ultra-affordable AI tools are displacing opportunities crucial for launching long-term careers. He believes the economic structure should be adjusted—possibly by making AI tools more expensive—to incentivize hiring junior professionals.
Concerns over AI replacing human labor are nothing new, but current developments are heightening those fears. AI systems are now capable of tasks such as making sales calls or writing software—jobs that used to be reserved for people. So far, the situation is not dire. One hiring platform estimates that summer internships in the U.S. this year have returned to pre-pandemic levels.
However, this could change soon. At a recent tech conference, current AI tools were likened to interns, while upcoming generations were compared to more experienced workers. Some managers are already overseeing “agent teams” in the same way they previously managed junior staff.
While some players in the AI space are considering retraining programs to address potential employment crises, pricing strategies—especially raising costs to slow adoption—remain largely untouched. Meanwhile, AI tools for coding still cost far less than employing a junior engineer, which may prevent newcomers from acquiring the skills they need to lead future tech initiatives.
Since the launch of ChatGPT as a free chatbot in 2022, AI pricing has evolved. Most companies still offer free or very low-cost basic plans. Premium tiers have become more expensive but still aren't profitable or discouraging widespread use.
Pricing experts attribute this to fierce competition. Companies race for mass adoption and avoid setting higher prices than their rivals. Unless there’s a significant shortage of electricity or GPUs, or one company dominates the market, substantial price increases seem unlikely. Some startups claim to profit per user interaction (excluding overhead), though overall profitability remains elusive. Thanks to venture capital, these companies can focus on growth rather than immediate returns.
Some investors are astonished by how cheap AI tools are compared to the value they deliver. One recent example involved a premium AI plan that, in the investor’s opinion, should have cost twice as much. In another case, a tech executive suggested they’d willingly pay six figures annually for an effective AI agent.
Historically, pricing decisions were made differently. One major player launched a coding assistant at just $10 per month to attract a large user base and gather data for improving the service. According to some, the tool’s current value would justify a price 100 times higher. However, the company maintains its goal is to support, not replace, developers—and that pricing reflects a commitment to making powerful tools accessible.
That assistant now caps out at $21 a month. Similar tools have followed, including an AI-powered code editor launched for a minimum of $20 a month. Some startup founders believe prices will eventually need to rise, but are committed for now to keeping tools affordable—even for junior developers.
Others agree, saying they'd pay more if the tools were easier to use and more reliable. One experienced engineer attempted to build a burnout-prevention assistant, but the tool ended up canceling all her meetings—hardly a perfect solution.
Some companies are now hiring "AI architects" to oversee agent-based systems and reduce errors. But there's a looming question: who will fill these roles in the future if early-career professionals can’t gain experience today? An economist from a renowned U.S. university suggests that companies won’t consider social costs when setting prices. Instead, he recommends governments reduce payroll taxes for entry-level positions to encourage hiring.
Some entrepreneurs are taking matters into their own hands. One founder has chosen not to use AI coding tools and consistently hires junior developers, aiming to avoid contributing to a potential employment crisis.
Another startup, focused on customer service, offers AI chatbots that cost roughly half as much per interaction as human agents. In some cases, the bots outperform their human counterparts, but clients remain unwilling to pay more. For them, the main advantage of AI is efficiency—technology is meant to cost less than labor, and that’s precisely its purpose.
