In October, a significant report highlighted mass layoffs across major IT companies, suggesting AI’s role in job loss. Experts foresee this trend continuing, as AI is utilized in various industries to replace entry-level roles and slow hiring of younger talent. A McKinsey report indicated that a substantial number of organizations anticipate workforce reductions attributed to AI, with one-third of respondents believing that AI’s adoption will decrease organizational headcount. Despite job reductions in some sectors, areas like digital marketing and asset management are experiencing an uptick in demand for AI-related skills due to the integration of AI into business processes.
The short-term impacts of this transition are already visible. For instance, Challenger, Gray & Christmas recently reported a dramatic rise in layoffs in October, with a total of 153,074 jobs lost, a staggering 175% increase compared to the same period last year. Of these layoffs, 31,039 were directly linked to automation driven by AI. This shows a growing trend where firms are emphasizing cost reduction and efficiency while utilizing AI capabilities. However, long-term effects of AI on employment remain uncertain, with discussions ongoing among researchers about the precise impacts of AI on job creation and loss.
👉 Pročitaj original: CIO Magazine
