Concerns over the impact of artificial intelligence (AI) on employment have grown recently amid the ongoing job cuts in the technology sector.
AI has already cost thousands of jobs, and this tendency may continue. UPS and IBM CEOs have announced that AI-driven automation may harm specific jobs. Moreover, a McKinsey poll found that 25% of business professionals foresee AI-related layoffs.
Google dismissed hundreds of key engineering and hardware employees, including voice-activated assistant developers, on January 10.
In an email, Google advised impacted staff to apply for available opportunities to stay employed. The memo states that people who are unable to find new employment have until April 9th to take action. The Tech giant laid off thousands in 2023, starting with a 6% worldwide staff decrease (approximately 12,000 individuals) in January.
To address this mounting AI issue, tech giants Cisco, Google, Microsoft, and IBM launched the AI-Enabled ICT Workforce Consortium. Cisco leads the collaboration, which investigates AI's influence on employment and provides AI training, per TechCrunch.
The ITC's initial goal is to assess AI's impact on 56 ICT jobs and suggests training. These jobs were chosen for their strategic relevance in ICT and AI-induced transformation.
AI to Continue Impacting Tech Jobs
The consortium's goals are encouraging, but industry-led attempts to address tech job cuts are still doubtful. IBM and Intel have pledged to train millions of people in AI, but analysts say demand for AI-related jobs may be stagnant.
As the ITC prepares to publish its conclusions this summer, doubts remain regarding the consortium's long-term plan and practical goals. Given the changing nature of AI technology and its effects on the workforce, stakeholders expect specific efforts to prevent job losses and boost workforce growth.
(Photo : Spencer Platt/Getty Images)
A two-armed robot called "ADAM" prepares a cup of coffee for a customer at Botbar coffee shop on May 31, 2023 in the Brooklyn borough of New York City.
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Notably, layoffs hit technology, media, finance, and retail in 2023. Big companies including IBM, Google, Microsoft, Goldman Sachs, and Dow cut employment, according to Business Insider.
Employment remained grim in 2024, with April offering little relief. Almost 40% of company owners expect layoffs this year, and 50% expect hiring freezes, according to ResumeBuilder. The study of 900 CEOs from companies with over 10 workers cited recession fears as a major factor.
AI was another major contributor to job cutbacks, with 4 in 10 respondents planning to replace humans with AI. Dropbox, Google, and IBM have announced AI-related layoffs.
Dismissed Workers Struggling in Shifting Job Market
Notably, as tech firms adapt to changing market dynamics and improve operational efficiency, the workforce confronts problems due to economic instability and the rapid use of AI technology. Software engineers and data scientists, long prized for their expertise, now face unclear career prospects. The sector has changed, forcing many to consider leaving in pursuit of better chances, according to CNBC.
Roger Lee, founder of Layoffs.fyi, highlighted the changing dynamics, noting that securing a new position in the tech sector has become increasingly challenging. Sales professionals and recruiters are shifting away from tech roles, while even engineers are facing compromises such as accepting positions with reduced stability, tougher work conditions, or diminished compensation packages.
Data from Comprehensive.io, a compensation tracker he recently contributed to, supports Lee's claim that tech salaries have largely plateaued over the past two years.
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