AI at work: Job cuts and tech leader opinions
Amazon recently announced to nearly 350,000 of its employees that they must either relocate to one of its main office hubs like Seattle, Arlington (Virginia), and Washington, D.C., or leave the company without receiving severance pay.
It is interesting to note how readily the company is willing to let go of employees simply to enforce a return to office-based work. However, this should not come as a surprise, given how Amazon CEO Andy Jassy has said time and again that AI adoption will reduce the company's corporate workforce.
Like Amazon, many other major tech firms, including Meta, Microsoft, Google, and others, have also been affected by waves of layoffs, especially given the disruption brought about by artificial intelligence (AI).
The United Nations Conference on Trade and Development (UNCTAD), in April, warned that AI could impact up to 40% of jobs worldwide.
Also Read: Jobs AI won't replace: Anthropic cofounder Jack Clark names safest roles
What CEOs say Global tech leaders have been expressing concerns about this development.
In May, former Google CEO Eric Schmidt said professionals in many fields, including art and medicine, could become irrelevant if they do not adapt to AI. Around the same time, Nvidia CEO Jensen Huang said that every job is going to be affected by AI. 'You are not going to lose your job to AI, but you are going to lose your job to somebody who uses AI,' Huang said.
Last month, Anthropic CEO Dario Amodei openly warned that AI could eat away nearly half of all entry-level white collar jobs, and soon. However, these are not just random claims but are backed by data. According to a report by McKinsey and Company, between 400 and 800 million jobs could be displaced worldwide within five years, depending on how quickly automation is adopted.This shift could force around 375 million workers—14% of the global workforce—to transition into entirely new careers.When it comes to India, the Economic Survey 2024-25 has raised similar concerns and called attention to the heightened worries of workers and the speed at which AI is transforming the labour market.
Hitesh Oberoi, CEO of Info Edge (which operates Naukri.com), recently said AI isn't just about job cuts but changing the nature of work. He emphasised the need to focus on developing new skills.
Zoho founder Sridhar Vembu, however, gave a more radical view on this issue. He said on X, 'The productivity revolution I see coming to software development (LLMs + tooling) could destroy a lot of software jobs. This is sobering but necessary to internalise.'
The other side However, not all CEOs are eager to expand AI use.
Klarna Group, a fintech firm, has chosen to reduce its AI-powered customer service. CEO Sebastian Siemiatkowski explained that the model led to a drop in service quality, and the company is now adjusting its approach. 'Really investing in the quality of human support is the way of the future for us,' he said.Many workers, too, have adopted a positive approach to AI integration in the workplace. A study by SnapLogic found that 81% of office workers believe AI enhances their job performance and overall work experience.While there is a diverse range of opinions on this topic, it is clear that workers will have to adapt to the changes brought in by the AI revolution.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
23 minutes ago
- Time of India
The AI frenzy is escalating. Again.
Academy Empower your mind, elevate your skills Silicon Valley's artificial intelligence frenzy has found a new and a half years after OpenAI set off the artificial intelligence race with the release of the chatbot ChatGPT, tech companies are accelerating their AI spending, pumping hundreds of billions of dollars into their frantic effort to create systems that can mimic or even exceed the abilities of the human tech industry's giants are building data centres that can cost more than $100 billion and will consume more electricity than 1 million American homes. Salaries for AI experts are jumping as Meta offers signing bonuses to AI researchers that top $100 venture capitalists are dialling up their spending. US investment in AI companies rose to $65 billion in the first quarter, up 33% from the previous quarter and up 550% from the quarter before ChatGPT came out in 2022, according to data from PitchBook, which tracks the industry."Everyone is deeply afraid of being left behind," said Chris V. Nicholson, an investor with the venture capital firm Page One Ventures who focuses on AI astonishing spending, critics argue, comes with a huge risk. AI is arguably more expensive than anything the tech industry has tried to build, and there is no guarantee it will live up to its potential. But the bigger risk, many executives believe, is not spending enough to keep pace with rivals."The thinking from the big CEOs is that they can't afford to be wrong by doing too little, but they can afford to be wrong by doing too much," said Jordan Jacobs, a partner with the venture capital firm Radical biggest spending is for the data centres. Meta, Microsoft, Amazon and Google have told investors that they expect to spend a combined $320 billion on infrastructure costs this year. Much of that will go toward building new data centres—more than twice what they spent two years OpenAI and its partners build a roughly $60 billion data centre complex for AI in Texas and another in the Middle East, Meta is erecting a facility in Louisiana that will be twice as large. Amazon is going even bigger with a new campus in Indiana. Amazon's partner, the AI startup Anthropic, says it could eventually use all 30 of the data centres on this 1,200-acre campus to train a single AI experts question whether companies like Anthropic will continue to improve their AI systems at the rapid rate they have maintained over the last few years. But Amazon says that even if the progress stops, it will use those 30 data centres to deliver AI systems to companies are spending so much on data centres, they see no problem with dropping several billions more to buy a startup or millions on a world-class AI researcher. In 2013, Google shocked Silicon Valley when it paid $44 million for just three researchers. Today, that seems like table just invested $14.3 billion in Scale AI, a startup that helps collect and organise the enormous amounts of digital data needed to train AI systems. In return, Meta landed Scale AI's young chief executive, Alexandr Wang, who is considered an up-and-coming deal maker in the AI was not the first big technology company to make such an unusual deal. Google, Microsoft and Amazon have also been investing hundreds of millions—or even billions—in startups just for the right to hire their employees and use their technology. In essence, they bought everything but the startups."Companies are acquiring other companies not necessarily for their products or their services or their revenues but just for their talent," said Dimitri Zabelin, an emerging-technology analyst at Scale AI investment was part of an effort by Mark Zuckerberg, Meta's chief executive, to start an AI research lab dedicated to the creation of superintelligence, a hypothetical technology that would be more powerful than the has been offering compensation packages worth as much as $100 million a person. He and his company made more than 45 offers to researchers at OpenAI alone, according to a person familiar with these approaches.(The New York Times has sued OpenAI and its partner, Microsoft, claiming copyright infringement of news content related to AI systems. The two companies have denied the suit's claims.)One Silicon Valley giant, Apple, has been more cautious about chatbots. But as the AI race escalates, Apple is also scrambling for talent. The company has had internal discussions about buying the AI startup Perplexity, according to a person familiar with those conversations. Perplexity is valued at $14 billion."Apple seems to be sitting on its hands. But I am sure they will surprise us before too long," said Matt Murphy, a partner at the venture firm Menlo Apple spokesperson did not respond to a request for as venture firms double down on their deal making, there is less appetite for investing in general AI systems designed to do everything, because that work is dominated by established companies like OpenAI and Google. Instead, they are starting to focus on AI that does specific tasks, like Ribbon, a company that does AI for job interviews, and Eleos Health, which creates AI to record and summarise doctor companies acknowledge that they may be overestimating AI's potential. But even if the technology falls short, many executives and investors believe the investments they're making now will be worth it."Christopher Columbus thought he was headed to the Orient, and he ended up in the Caribbean," said Nicholson of Page One Ventures. "He did not get to where he thought he was going, but he still got to a place that was highly valuable."
Time of India
39 minutes ago
- Time of India
Losing jobs to AI was just the start, Gen Z is outsourcing emotions too. New reports warn of a looming crisis
In the age of ChatGPT and AI-powered chatbots , Generation Z has found more than just a workplace assistant—they may have found a confidante. But is that necessarily a good thing? According to a June report from , an overwhelming 76% of Gen Z workers in the U.S. use AI chatbots, and 94% of those users rely on these tools to help with workplace issues. Many turn to AI to interpret a manager's tone, navigate miscommunication, and even draft sensitive emails. While this may offer comfort and convenience, it's raising red flags among career experts. Kara Dennison, head of career advising at , points out a key risk: 'Gen Z workers often feel more validated and confident after consulting AI because these tools offer immediate, judgment-free feedback.' However, she cautions that constant validation without challenge can foster a dangerous cycle. 'If an AI tool consistently validates a user's perspective without challenging it, it can reinforce a fixed mindset, enabling blame-shifting rather than self-reflection.' A Shift in Communication, But at What Cost? The data shows a marked transformation in how Gen Z communicates. Nearly half of those surveyed say they alter how they interact with colleagues after using AI. A third become more assertive, while 26% are more inclined to apologize or accept fault. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Most strikingly, 75% of users reported using AI to analyze digital communications like emails or messages. More than half of respondents even see AI as a colleague or a friend. Nearly half admitted they would rather ask a chatbot for help than approach their boss. But this evolving reliance may come with serious developmental consequences. As Dennison notes, 'AI can't interpret body language, understand power imbalances, or navigate complex organizational dynamics.' The absence of these crucial elements could hinder professional growth, limiting one's ability to build real-world communication skills and resilience. You Might Also Like: Nikhil Kamath's 'lifelong learning' advice is only step one: Stanford expert shares the key skills needed to survive the AI takeover MIT Study Adds to the Debate: Is AI Making Us Mentally Lazy? A separate but related concern has emerged from a recent MIT study that examined how prolonged AI use may affect cognitive engagement. In a controlled experiment, researchers found that participants who relied on ChatGPT to write essays showed significantly lower brain activity and had difficulty recalling what they had written. The study coined this phenomenon as 'cognitive debt'—a type of mental atrophy caused by offloading thinking tasks to machines. The most engaged group? Those who wrote essays without any AI assistance. Not only did they perform better, but they also displayed a higher sense of ownership over their work. The MIT researchers drew parallels to the introduction of calculators in the 1970s. Back then, education systems raised the bar, requiring students to apply higher-order thinking skills rather than basic arithmetic. Today, however, educators have largely failed to evolve curricula that integrate AI as a complementary tool, leading to what some experts are calling 'metacognitive laziness.' — rohanpaul_ai (@rohanpaul_ai) Emotional Intelligence in the Age of Automation While AI offers efficiency and reassurance, experts agree it cannot replace fundamental human faculties like emotional intelligence. 'Healthy workplace communication depends on empathy, active listening, and accountability,' says Dennison. 'AI can complement that process, but it cannot replace it.' You Might Also Like: Forget BTech. Zerodha's Nikhil Kamath says only one skill will matter to stay relevant in job market in 10 years McLean & Co., in a separate advisory report, urges employers and HR professionals to foster emotionally healthy workplaces that don't shy away from emotion but instead integrate it into a supportive work culture. 'Being proactive about how emotions and work coexist,' the report states, 'is essential to building workplaces where everyone can thrive.' The AI Generation's Challenge As AI tools become embedded in workplace dynamics, the next generation faces a delicate balancing act: using technology as a partner without letting it take over the hard parts of being human. Knowing when to consult a chatbot and when to face a situation head-on may be the defining skill of Gen Z's professional life. Because while AI can simulate support, it can't replace the grit, empathy, and growth that come from real-life challenges—and real-life people. You Might Also Like: Is ChatGPT making us dumb? MIT brain scans reveal alarming truth about AI's impact on the human mind
India Today
an hour ago
- India Today
Trump plans energy orders to power AI, challenge China's lead: Report
The Trump administration is readying a package of executive actions aimed at boosting energy supply to power the US expansion of artificial intelligence, according to four sources familiar with the economic rivals the US and China are locked in a technological arms race and, with it, secure an economic and military edge. The huge amount of data processing behind AI requires a rapid increase in power supplies that are straining utilities and grids in many moves under consideration include making it easier for power-generating projects to connect to the grid, and providing federal land on which to build the data centers needed to expand AI technology, according to the sources. The administration will also release an AI action plan and schedule public events to draw public attention to the efforts, according to the sources, who requested anonymity to discuss internal White House did not respond to requests for large-scale AI models requires a huge amount of electricity, and the industry's growth is driving the first big increase in US power demand in 2024 and 2029, US electricity demand is projected to grow at five times the rate predicted in 2022, according to power-sector consultancy Grid power demand from AI data centers could grow more than thirtyfold by 2035, according to a new report by consultancy and connecting new power generation to the grid, however, has been a major hurdle because such projects require extensive impact studies that can take years to complete, and existing transmission infrastructure is the ideas under consideration by the administration is to identify more fully developed power projects and move them higher on the waiting list for connection, two of the sources data centers has also been challenging because larger facilities require a lot of space and resources, and can face zoning obstacles or public executive orders could provide a solution to that by offering land managed by the Defense Department or Interior Department to project developers, the sources administration is also considering streamlining permitting for data centres by creating a nationwide Clean Water Act permit, rather than requiring companies to seek permits on a state-by-state basis, according to one of the January, Trump hosted top tech CEOs at the White House to highlight the Stargate Project, a multi-billion effort led by ChatGPT's creator OpenAI, SoftBank 9434.T and Oracle ORCL.N to build data centres and create more than 100,000 jobs in the USTrump has prioritised winning the AI race against China and declared on his first day in office a national energy emergency aimed at removing all regulatory obstacles to oil and gas drilling, coal and critical mineral mining, and building new gas and nuclear power plants to bring more energy capacity also ordered his administration in January to produce an AI Action Plan that would make "America the world capital in artificial intelligence" and reduce regulatory barriers to its rapid report, which includes input from the National Security Council, is due by July 23. The White House is considering making July 23 "AI Action Day" to draw attention to the report and demonstrate its commitment to expanding the industry, two of the sources is scheduled to speak at an AI and energy event in Pennsylvania on July 15 hosted by Senator Dave this month announced it would invest $20 billion in data centers in two Pennsylvania counties.- EndsMust Watch
