By Heather Stewart
Publication Date: 2026-01-04 12:18:00
TMerriam-Webster’s 2025 word of the year was “slop,” which it defines as “low-quality digital content, usually produced in large quantities using artificial intelligence.” The choice underscores the fact that while AI is being widely adopted, not least by company bosses looking to cut labor costs, its drawbacks are also becoming apparent. In 2026, coming to terms with reality poses a growing economic risk for AI.
Ed Zitron, the foul-mouthed poster child of AI skepticism, argues quite convincingly that, as things stand, the industry’s “unit economics” – the cost of servicing a single customer’s requests compared to the prices companies can charge them – simply doesn’t add up. In typically colorful language, he calls them “dog shit.”
AI revenues are rising rapidly as more paying customers sign up, but so far they are not enough to cover the huge investments: $400bn (£297bn) in 2025, with much more…
