timtyler comments on Intelligence explosion in organizations, or why I'm not worried about the singularity - Less Wrong
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Examples of automation in the software industry are refactoring, compilation and unit testing. The entire industry involves getting machines to do things - so humans don't have to.
Automation is not the same as recursive self-modification. There's no loop.
The context is GIT improving GIT - where "GIT" refers to all the humans and machines involved in making GIT.
So: there's your loop, right there.