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The $120 AI That Replaced a $63K Junior Dev Might Be the Dumbest “Smart” Move You’ll Ever Make 

 June 19, 2025

By  Joe Habscheid

Summary: The race to adopt cheap AI tools is accelerating—but there’s a hidden cost nobody wants to talk about: the slow decimation of early-career jobs that teach people how to grow into tomorrow’s leaders. What looks like cost-efficiency today may become a shortage of qualified professionals tomorrow. If cheap AI wipes out entry-level experience, who will you trust to run the system five years from now?


The Allure of AI Penny-Pinching Is Blinding Us

Luke Arrigoni made $63,000 as a junior dev back in 2007. Today, code-writing AI tools can outperform his 2007 self—for just $120 a year. That’s less than the cost of one catered lunch at a tech startup. At first glance, this seems like a miracle: powerful software at bargain-bin prices. But let’s slow down.

When companies use dirt-cheap AI to replace junior roles, they’re not just automating away menial tasks—they’re cutting the roots of the talent pipeline. No juniors. No mids. No seniors. No future. If new workers can’t afford to “be bad” for a while in the real world, they’ll never get good enough to lead large-scale systems later on. What happens when the so-called AI miracle needs adult supervision… and there are no adults left?

Cheap AI Cannibalizes Career Growth

Everyone wants leverage, but cheap leverage without human development is a recipe for institutional rot. Entry-level jobs aren’t about output; they’re about growth. They’re the learning gym where junior staff sweat it out and build judgment. AI may outperform a novice today, but will it learn leadership from scratch tomorrow? No. That comes from hard-won context and human mentorship over years of real work.

Here’s where Chris Voss teaches us something meaningful: when people say “No,” they’re protecting something. Often a fear. What fear shows up here? It’s the fear that we’ll lose the feeder system that keeps businesses innovative and society employed. How long can we pretend a $19/month subscription replaces a career path?

The Hidden Trap: Cheap Now, Expensive Later

Companies love short-term wins and quarterly targets. But what’s the long game here? If jobless juniors become jobless seniors, companies will eventually suffer because nobody remembers how things are actually built. That’s the trap. Look at OpenAI’s Sam Altman calling current AI agents “interns”—and next-gen AI “experienced workers.” He’s not wrong, but the metaphor misses the point: interns grow, AI doesn’t.

Has your company considered what you lose when you skip the mentorship ladder? Or are you just assigning tasks, not responsibilities?

Why Pricing Power Matters—and Why It Should Shift

Nobody’s asking tech companies to stop innovating—but capping AI tool pricing creates a perverse incentive. Why invest in humans when you can rent a fleet of agents for $250/year? Erica Brescia nailed it: the value delivered far outweighs the price. That discrepancy doesn’t help us. It turns a potential augmentor into a job killer.

Arrigoni’s idea to raise AI pricing isn’t a technophobic knee-jerk. It’s sensible economics. Make AI use slightly less convenient, so hiring a human again makes sense. AI doesn’t need to be priced out of reach for everyone—but it shouldn’t undercut entry-level workers so aggressively that we dry up the entire talent ecosystem.

Who’s Going to Be the AI Architect If No One Starts as a Junior Dev?

Someone still needs to architect these complex agent systems. Somebody needs the wisdom to see where a bot will blow things up or waste time. Right now, companies like Loti AI are doing the hard thing: hiring juniors, limiting dependency on AI code, and building internal resiliency. That’s not just ethical—it’s strategic. When others lose track of their talent pool, Loti keeps theirs swimming.

MIT economist Simon Johnson suggests lowering payroll taxes to incentivize entry-level employment. But let’s pause—who’s responsible for this shift? Should it be governments? Or should companies stop pretending there’s no cost to getting that cheap code?

What Happens When AI Hits a Wall of Context?

One engineer built an AI to save her from burnout by managing her calendar. It canceled all her meetings. Problem technically solved. But you and I know life doesn’t work on technicalities. A junior employee would’ve had the judgment to reschedule, not annihilate. Training that kind of judgment takes time, feedback, and room to make small mistakes. AI isn’t wired that way—yet.

So ask yourself: does convenience justify building a workforce that lacks judgment, empathy, and strategic clarity? Or would we be better off pricing AI high enough that people once again see humans as a good deal?

Who’s Taking Ownership, and Who’s Dodging It?

So far, AI vendors like OpenAI talk a lot about reskilling—but won’t touch meaningful pricing regulation. Internally, do any of these firms have real apprenticeships? Or are they hoping someone else will pick up the broken pieces later? Strategic silence here could invite reflection: What would it look like to build deliberate career ladders in tandem with agent adoption?

Now, think about your own company. Who are you hiring? Who are you training? Who will lead your AI strategy when it’s no longer flashy but mission-critical? If that person doesn’t exist yet, you’ve got a personnel problem, not a tech opportunity.

This Isn’t Anti-Tech. It’s Pro-Growth.

Nobody’s arguing we ditch AI. That’s nonsense. AI can boost productivity, fill gaps, and open creative space. But the real work is in keeping human growth in the loop. Cheap tools won’t build the kind of companies that last. People do. Especially the ones you take a chance on early, when they’re still figuring it out.

So let’s ask the uncomfortable question: Who benefits if you ‘save’ $60,000 by not hiring a junior dev—and lose a future CTO?


Let’s keep the tools. Let’s raise the price. And while we’re at it, let’s start hiring like the future depends on it—because it does.

#FutureOfWork #AIAndEthics #JuniorJobsMatter #CareerGrowth #AIResponsibility #HumanCapital #StrategicHiring #WorkforceDevelopment #ChrisVoss #PricingStrategy

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Featured Image courtesy of Unsplash and Ivan Gromakov (FxKSsmD-Oqk)

Joe Habscheid


Joe Habscheid is the founder of midmichiganai.com. A trilingual speaker fluent in Luxemburgese, German, and English, he grew up in Germany near Luxembourg. After obtaining a Master's in Physics in Germany, he moved to the U.S. and built a successful electronics manufacturing office. With an MBA and over 20 years of expertise transforming several small businesses into multi-seven-figure successes, Joe believes in using time wisely. His approach to consulting helps clients increase revenue and execute growth strategies. Joe's writings offer valuable insights into AI, marketing, politics, and general interests.

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