Incentives = Outcomes, Every Time

“Show me the incentive and I’ll show you the outcome.”
– Charlie Munger

This wise quote can be applied to many things in life, but in our current AI era it cuts right to the heart of the problem: if your company encourages/demands the use of AI without linking it to real-world positive outcomes (more software shipped, time saved, less-stressed employees, more bugs fixed, happier customers)…

🏎️ …then you’re in a race where your employees have put their car in neutral and are revving their engine to burn fuel without actually moving. ⛽️ You’re measuring the wrong thing, incentivizing the wrong behaviour, and wondering why no car with your logo has crossed the finish line but your fuel bill is high.

I am not anti-AI by any means: I use the tools daily and have experienced hitting usage limits when vibe coding projects. But would I spend my time using AI for the sake of using it without building something useful? No. My incentive is to learn new skills, make me a better future employee, and build things that help me solve challenges. Tools must have a reason to be used.

What incentive do your employees have to use AI in useful ways? Fear of job loss isn’t the incentive that will get the outcome you want.

My post is a reaction to this article.

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