Amazon recently announced plans to reduce its corporate workforce by approximately 14,000 positions. This decision has reignited concerns surrounding the impact of artificial intelligence (AI) on employment, as it aligns with a trend among several U.S. companies attributing job cuts to advancements in AI technologies.
Some analysts have questioned whether AI is the sole cause of these layoffs. For instance, Chegg announced a 45% workforce reduction, citing “new realities” due to AI, while Salesforce’s layoffs of 4,000 customer service roles were linked to AI agents taking over those responsibilities. Similarly, UPS revealed it has eliminated 48,000 jobs since last year, partially attributing this to machine learning innovations.
Despite these statements, experts like Martha Gimbel from Yale University caution against over-interpreting these corporate announcements. She noted that individual company circumstances often contribute to workforce changes, which may not be reflective of broader AI impacts on the labor market.
Recent research, including a study from the Federal Reserve Bank of St. Louis, has shown a correlation between occupations more prone to AI adoption and rising unemployment rates. Morgan Frank, an assistant professor at the University of Pittsburgh, reported that since the launch of ChatGPT in November 2022, only the office and administrative support sector saw a notable increase in unemployment claims. He indicated that jobs in tech-related fields did not demonstrate similar trends.
Industry experts suggest that recent layoffs by Amazon and others may also result from normal cyclical patterns following extensive hiring during the pandemic, alongside economic factors such as rising interest rates. Additionally, Amazon’s significant size may enable it to automate tasks more swiftly than its competitors.
Understanding the relationship between AI advancements and job reductions remains complex, with ongoing debates regarding the specific drivers behind current workforce trends.
Source: https://www.bbc.com/news/articles/clyk7zg0gzvo?at_medium=RSS&at_campaign=rss