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If the work to be done is infinite, why would there necessarily be fewer people doing it?
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Because most companies aren't software driven, they sell physical products and software is a cost center.

There is a budget and when it is gone, no contractors until next budget round.

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it could mean they are not completely out of automation opportunities, and will lose to more innovative players if won't invest into software. The end state of these companies is grid of cheap robots controlled by software.
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