Hearts, Hedge Funds, and Hidden Costs: Considering AI’s Promise

Original article appeared on LinkedIn.com

While completing the copious weekly reading for my recent Ethical Artificial Intelligence (AI) course, I was transported back to elementary school when we learned about Aesop’s fables. The tale that came to mind was the goose that laid the golden eggs. (Library of Congress Aesop Fables)

Reviewing the materials, I was reminded how in the world of technology and business, we make great advances that come with sometimes hidden and steep costs.

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Before I could get a chance to put pen to paper, another example of this very phenomena appeared in my news feed. I read that Southwest Airlines planned to complete their first set of layoffs.

One article (After 53 Years, Southwest Airlines Just Made a Heartbreaking Announcement. It's the Start of the End of an Era) suggested they’d even decided to abandon their philosophy of employees first, customers second, and shareholders last. 

Research has suggested that companies that treat their employees better, do better. Check out this Wharton article: https://knowledge.wharton.upenn.edu/article/want-to-improve-customer-service-treat-your-employees-better/

So, what happened? Why did they have this change of heart (pun intended)? Was this change predicated by a precipitous drop in profits? No, it’s all because a key investor, hedge fund Elliott Investment Management L.P., wanted larger returns. And this wasn’t the end of the changes at Southwest. Again, before I could type this up and hit publish, “Bags Fly Free®” was another casualty to this revamped focus on short-term gains.

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Artificial Intelligence in general and generative AI specifically has the potential for much good. However, there is also the potential to cause reparable damage.

Here are some articles discussing some of the benefits, trade-offs, and hidden costs of our increased reliance on generative AI:

• 9 Benefits of Artificial Intelligence (AI) in 2025 | University of Cincinnati

• The hidden cost of AI: Unpacking its energy and water footprint - IEEE Technology Climate Center (ITCC)

• Findings_The-Potential-Future-Risks-of-AI.pdf

• We must come together to build an AI future that works for all | World Economic Forum

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