The Bubble is About to Burst: What Comes Next?

You’ve likely seen the headlines: Nvidia’s share price dropped, sparking renewed claims that the AI bubble is on the verge of popping. But the truth is, the bubble we should be worried about isn’t AI—it’s employment. An employment bubble has been quietly inflating for years, and it’s about to burst as AI continues replacing jobs across multiple industries. And when this bubble bursts, millions of jobs could vanish almost overnight.

Backing the Employment Bubble Claim with Hard Data

It’s a bold claim, but the numbers speak for themselves. A recent survey revealed that 44% of companies expect AI to replace employees in 2024(NY1). Over a third of businesses already laid off workers in 2023 due to AI, and this trend is accelerating. Meanwhile, consumer spending has stagnated as job security declines, and wage growth has failed to keep up with inflation. With automation steadily infiltrating sectors like retail, manufacturing, and customer service, the pressure is mounting. Klarna, for example, replaced over 1,000 jobs with AI and aims to operate with as few as 2,000 employees(Yahoo)

Moreover, Tesla’s humanoid robots, set to launch next year at only $20,000-$30,000, are expected to replace human Labor in sectors such as manufacturing and warehousing(tesla) The fact that companies are actively investing in AI-driven replacements shows that the future of work is shifting. So, if we’re on the edge of a collapse, it won’t be a tech bubble—it will be the employment bubble, with massive consequences for workers worldwide.

The Cost of Inference: A Hidden Advantage

At the core of this transformation lies the cost of inference—an often-overlooked factor that makes AI both scalable and disruptive. Most people think the power of AI lies in its models, but the true breakthrough happens when these models are made affordable to run at scale.

Yepic AI low-cost inference models, for instance, can generate video for as little as $0.20 per hour (yes Hour) with its new models. This low-cost structure allows companies to replace humans in customer-facing roles and back-office operations, without breaking the bank.

The ability to run sophisticated AI systems at a fraction of the previous cost is what turns AI from a luxury for tech giants into a practical tool for businesses of all sizes. This is how AI will break into traditional industries, making entire roles redundant. AI’s capacity to lower costs while delivering more efficient results means that businesses no longer need to rely on expensive human labor to deliver value. This economic shift is where the employment bubble pops.

Yepic’s Role in Rethinking AI Monetization

Yepic is uniquely positioned within this AI revolution. Our EPICS Video Agents, powered by low-cost inference, are changing the way companies deliver training, customer service, and personalized experiences. Learners interacting with video agents can ask questions, take quizzes, and get feedback, just like they would with a human coach. This one-to-one personalized coaching, at a fraction of the cost, is making high-quality training accessible on a massive scale.

However, Yepic’s innovation goes beyond technology; we’ve also reimagined the way AI-generated value is shared. At Yepic, we pay a percentage of the revenue generated by AI avatars back to the actors whose likeness is used. This revenue-sharing model is essential in a world where AI could take away more jobs than it creates. By compensating humans for their contributions to AI, we create a sustainable pathway for people to benefit from AI, even as jobs disappear. This model serves as a blueprint for how AI companies can ensure that humans remain a part of the economic equation.

Why the AI Industry Needs to Rethink Its Approach

The AI industry at large must take responsibility for how it builds and sells its models. Too often, AI solutions are developed with efficiency and profit in mind, ignoring the long-term consequences for employment. But it’s clear that the industry needs to rethink how these tools are deployed.

One critical shift will be for AI companies to adopt more inclusive, human-centered models. Companies must ensure that people aren’t left behind in an AI-driven world. The employment bubble is bursting, and we need to find ways to ensure that AI-generated wealth is shared more equitably. Whether through revenue-sharing models like Yepic’s or other innovative approaches, AI must be designed to benefit humanity as a whole, not just corporations.

Preparing for the Employment Revolution

The AI bubble isn’t bursting anytime soon. If anything, it’s just getting started. But the employment bubble is fragile and on the brink of collapse. Companies like Klarna and Tesla have already made the shift to AI replacements, and this trend is set to accelerate. But there’s an opportunity here—if we prepare now, we can not only survive this employment revolution but thrive within it.

Yepic’s low-cost inference models, such as the Yepics Video Agents, offer a glimpse into how AI can help companies train and upskill their workforce affordably. By investing in these kinds of solutions, businesses can equip employees with the skills needed for an AI-dominated future. It’s not just about doing more with less—it’s about doing better with less, and that requires a bold rethinking of how we approach AI.

The future of work doesn’t have to be bleak, but it requires us to act now. AI offers incredible opportunities, but it’s up to us to ensure that those opportunities are accessible to everyone. The employment bubble is about to burst—are we ready for what comes next?