The role of AI in layoffs is unclear as layoffs become more serious – but AI definitely has a role to play

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Layoff seasons are getting longer and longer, bucking the tech industry’s typical cyclical boom-and-bust pattern. Meanwhile, AI continues to dominate. At least current versions of neural networks trained on large datasets that drive developments like OpenAI’s ChatGPT and Anthropic’s Claude have an edge. In the conversations I have with technologists, executives, industry leaders, and front-line workers about all aspects of both trends, one topic always comes up: Specifically, it’s about how the AI ​​boom is contributing to an ongoing mass shakeout.

Everyone seems to agree that the emergence and proliferation of AI has played some role, if not in the timing, then at least in the extent of layoffs, driven by overall economic uncertainty. There is a high possibility that it will. Businesses are certainly shouting about the efficiency benefits that new AI products can bring to their businesses, but few actually mention them in the specific context of layoffs. Yet, there is news out there that AI will replace at least some of the people who will lose their jobs. effort to keep it a secret.

Salesforce has laid off about 700 people in its most recent round of layoffs, adding to the layoffs announced last year. SAP also announced major restructuring, but stressed that it expects its workforce to remain the same by the end of the year. This is an exaggeration of the message, but the real story is that these large companies typically grow every year, so even if there is a flattening in employment with restructuring, some acquisitions, and fill-in jobs, the companies as a business That means taking a step back. The usual.

These companies, and many other large technology companies currently struggling with layoffs, have also signaled or announced significant investments in AI to augment or replace jobs currently performed by humans. . These announcements are usually accompanied by assurances that automating certain tasks will free up real human resources to fill more creative and meaningful roles and jobs.

That may be true in the long run, but for now it’s all about the “regrettable” downsizing, along with huge budget-busting spending on AI products and innovation, which will create entirely new roles and new roles for workers. There are no encouraging signs as to when opportunities will emerge. In the meantime, evacuate.

While there are many comforting examples of how generative AI still falls short in many ways when compared to real humans, examples of people happily using tools like ChatGPT stand out. There are just as many, if not more. They put in the actual work every day and the results are at least satisfactory, if not better than before.

Technological revolutions are always disruptive and displace large numbers of people, but this one shows that the technology it promises will not only increase human efficiency in specific roles in every case, but will also actively It looks unique in that it replaces the entire functionality with . As these large companies continue to roll out, they need more transparency about when AI will take on roles once held by humans, but the chances of getting it in the middle of the action are slim. Low and likely to be researched and revealed later. by researchers trying to assess impact.