The Singularity

We are not waiting for it. We are living through it. Why adoption alone changes everything, what the AI layoffs do and do not show, and how companies get through the transition.

October 31, 20269 min read9 chaptersBy Chris Johnston

01 · THE EDGE

Past the event horizon, no light comes back.

In physics, a singularity is where the models stop working. Nothing past the horizon can be seen from here.

02 · THE MERGE

We cannot see past this one either.

The singularity is not a machine waking up. It is people and software merging into one way of working. It already started.

  1. 1965

    “The first ultraintelligent machine is the last invention that man need ever make.”

    I. J. Good

    Source: I. J. Good, 1965 ↗

  2. 1993

    “Within thirty years, we will have the technological means to create superhuman intelligence.”

    Vernor Vinge

    Source: Vernor Vinge, 1993 ↗

  3. 2024

    The Singularity Is Nearer: When We Merge with AI.

    Ray Kurzweil

    Source: Ray Kurzweil, 2024 ↗

  4. 2026

    You are here.

    Inside it.

03 · ADOPTION

Even if the models never improved again.

Adoption alone changes everything. About one U.S. firm in five uses AI. The rest of the curve has not happened yet.

Source: U.S. Census Bureau, May 2026 ↗

0%25%50%75%100%full adoption

YOU ARE HERE

19.8% of U.S. firms, May 2026

Curve shape is illustrative. The marker is measured.

04 · AND THEY WILL IMPROVE

They will. The curve is measured.

4-5x

a year. Growth in the compute used to train frontier models, 2010 to 2024.

Source: Epoch AI, 2024 ↗

7 mo

for the length of task aan can finish to double. Six years running.

Source: METR, March 2025 ↗

Power law

Models get predictably better as size, data and compute grow.

Source: Kaplan et al., 2020 ↗

05 · THEN IT BUILDS ITSELF

Recursive self-improvement.

AI does the research that builds the next AI, which does that research faster. Good called it an intelligence explosion in 1965. Labs now build toward it on purpose.

Source: Sakana AI, Sept 2026 ↗

Not here yet. Today's still lack the judgment that open-ended research takes. It is where this is heading, not where it is.

Source: MIT Technology Review, Aug 2026 ↗

06 · THE CUTS

Companies have started saying it out loud.

U.S. announced job cuts where the employer named AI as the reason.

4,2472023

12,742*2024

54,8362025

120,1362026Jan to Sep

* Derived: Challenger's 71,825 AI-cited cuts since 2023, less the published 2023 and 2025 totals.

“The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.”
Oracle, annual report to the SEC

Source: Oracle 10-K, June 2026 ↗

“I think most companies are late.”
Jack Dorsey, Block, cutting nearly half the company

Source: Jack Dorsey, Feb 2026 ↗

07 · NOT EVERY CUT IS AI

Some of it was the hangover.

Tech overhired after COVID and rates rose. The 2023 wave was mostly that. The 2025 and 2026 waves are where AI shows up in the filings. Both are true.

57%

Alphabet headcount growth, Sept 2019 to Sept 2022. “We hired for a different economic reality.”

Source: Sundar Pichai, Jan 2023 ↗

293,753

Cuts in 2025 tied to DOGE, the year’s top reason. More than five times AI.

Source: Challenger, Gray & Christmas, Jan 2026 ↗

0

New York WARN filers who checked the new AI box in its first year. Over 160 filed.

Source: National Law Review, May 2026 ↗

08 · THE GAP

The gains are real. Society is not keeping up.

+14%

Issues resolved per hour by support agents using AI. +34% for the newest agents.

Source: Brynjolfsson, Li, Raymond, NBER ↗

19%

Employment gap for workers 22 to 25 in the most AI-exposed jobs, against trend. Mostly less hiring, not more firing.

Source: Stanford Digital Economy Lab, Aug 2026 ↗

0

Federal laws that require a company to disclose AI’s role in a layoff.

Source: Tech Times, May 2026 ↗

The tools work at the task level. The work around them has not been redesigned, the people have not been retrained, and the rules have not been written. That gap is where the damage happens. It is also where the upside is.

09 · THE WAY THROUGH

Adoption is the part you control.

You cannot slow the curve. You can decide which side of the gap your company lands on. The ones that come out ahead do three things: put on real work, redesign the work around them, and train the people who run it.

That is the job we do. We build lobstersagents that run inside your business, give your team one place to run them, and stay on after launch. Every works from an instruction file your team can read and change.

You can already see adoption on the open web. Most new sites share the same machine-made look. We wrote a series on it, starting with The Hero Formula and The Little Mono Labels.

We guide companies through it.

We build the , redesign the work around them, and train the team that runs it. So the gains land as growth, not only as cuts.

SOURCES

  1. 1I. J. Good, "Speculations Concerning the First Ultraintelligent Machine," Advances in Computers vol. 6, 1965
  2. 2Vernor Vinge, "The Coming Technological Singularity," NASA VISION-21 Symposium, March 1993
  3. 3Ray Kurzweil, The Singularity Is Nearer: When We Merge with AI, Viking, June 2024
  4. 4U.S. Census Bureau, Business Trends and Outlook Survey: AI use by businesses, May 2026
  5. 5Epoch AI, "Training compute of frontier AI models grows by 4-5x per year," 2024
  6. 6METR, "Measuring AI Ability to Complete Long Tasks," arXiv 2503.14499, March 2025
  7. 7Kaplan et al., "Scaling Laws for Neural Language Models," arXiv 2001.08361, January 2020
  8. 8Sakana AI, RSI Lab announcement, September 2026
  9. 9MIT Technology Review, "AI's recursive self-improvement might not come so quickly after all," August 18, 2026
  10. 10Challenger, Gray & Christmas, Andrew Challenger interview on AI job cuts (2023 total: 4,247), September 2024
  11. 11Challenger, Gray & Christmas, 2025 Year-End Job Cuts Report, January 2026
  12. 12Challenger, Gray & Christmas, September 2026 Job Cuts Report, October 1, 2026
  13. 13Oracle Corporation, Form 10-K for fiscal year ended May 31, 2026, filed with the SEC
  14. 14Jack Dorsey, post on X announcing Block's restructuring, February 2026
  15. 15Sundar Pichai, January 2023 message to Google employees, Google blog
  16. 16National Law Review, on the first year of New York's AI checkbox on WARN notices, May 2026
  17. 17Brynjolfsson, Li and Raymond, "Generative AI at Work," NBER w31161 (Quarterly Journal of Economics, 2025)
  18. 18Brynjolfsson, Chandar and Chen, "Canaries in the Coal Mine," August 2026 update, Stanford Digital Economy Lab
  19. 19Tech Times, on 2026 tech layoffs and the absence of a federal AI disclosure rule, May 18, 2026

Figures checked against these sources on October 31, 2026.

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