Effect on the Labor Market Uncertain as Businesses Increasingly Embrace AI’s Potential

Although the statistics may not show it, as a growing number of companies take advantage of new technologies the potential of increasing numbers of employee layoffs grows stronger. Artificial intelligence (AI), which has met with robust enthusiasm within the business world, has ironically hit the technology industry the hardest. According to outplacement firm Challenger, AI-related job cuts within the sector totaled 4,000 between May 2023 to January 2024. However, “experts struggle to get an accurate picture of just how many job cuts are being eliminated as AI rapidly advances.” Following the fallout from IBM’s decision to go public with the announcement that “the company planned to pause hiring it thinks it could soon replace with AI,” others have taken heed, wanting to avoid the headlines, so “only a handful of companies have explicitly tied AI to job cuts or hiring freezes.” Although some companies are introducing AI as an augmentation rather than an elimination, even without the big announcements, the reality is if the help of AI enables one person to accomplish the work of multiple people – there will be jobs lost. Recognizing that employees within some industries are more vulnerable than others, “responsible integration of AI requires “comprehensive strategies the prioritize workers’ well-being, provides retraining and support programs to ensure a fair and inclusive job market in the era of AI.”

Source:    https://www.crainsnewyork.com/technology/ai-driving-more-layoffs-companies-want-admit