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This might actually be the reason they started this.
That would make the decision even more short sighted.
It won’t end with AI moderation, It will end with moderation that is very exploitable, bad to adjust to all subreddits and because of this whole mess they will drive community engagement into the ground. And that is without even so much as taking a peak on the possible affects to the IPO. It’s gonna be mess, even if the platform survives.
You are not wrong, but I can totally see a ceo saying “yeah with AI we do not need mods”, and then risking it.