"We've been hearing that AI is coming for our jobs for years. Is it finally happening now? Maybe. We're now seeing a slew of big companies ditching thousands of jobs, citing AI as an animating rationale. This week, for instance, Amazon said it was cutting 14,000 white-collar jobs, arguing that it can and should be leaner in an AI age. In July, Microsoft said the same when it got rid of 9,000 jobs. IBM says it has replaced hundreds of workers with AI."
"Companies always announce some reason for layoffs. That doesn't mean it's the reason. Companies are run by people, and people run in herds. If other people are chalking up layoffs to AI, maybe you'll do the same. Lots of companies are investing a lot in AI. There are not lots of examples of companies using AI effectively. An MIT study says 95% of corporate AI investments have generated "zero return" so far."
Since ChatGPT's 2022 debut, white-collar workers have worried that AI will cause layoffs. Large companies have announced thousands of job cuts while citing AI as a motivating rationale: Amazon cut 14,000 white-collar jobs, Microsoft cut 9,000, and IBM replaced hundreds of workers with AI. Companies routinely give reasons for layoffs that may not fully reflect underlying causes. Herd behavior can influence corporate explanations when peers link cuts to AI. Many firms invest heavily in AI despite limited demonstrated returns; an MIT study found 95% of corporate AI investments generated zero return so far. AI adoption is growing, but its causal role in current layoffs remains ambiguous.
Read at Business Insider
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