AI Has Led to a Wave of Layoffs in the Labor Market Around the World
In Brief
Recent months have seen a wave of layoffs across the labor market due to automation technologies such as chatbots and natural language processing software.
Recent years have seen a wave of layoffs across the labor market as businesses search for ways to reduce costs and maximize profits. One technology driving many of these cutbacks is artificial intelligence, which has been adopted by a wide range of industries in the pursuit of more efficient automation. Although AI has allowed businesses to increase productivity, reduce costs, and improve customer service, it would also lead to thousands of job losses around the world.
The impact of AI on layoffs can be seen in the unemployment rates in the United States and the United Kingdom, where figures have increased significantly in the last few months. Automation technologies such as chatbots and natural language processing software have led to job losses in a variety of sectors, ranging from finance and accounting to retail and distribution. For example, companies like Walmart and Target have implemented AI-driven technologies to handle customer inquiries, eliminating the need for customer service representatives.
The Impact of Artificial Intelligence on Layoffs
Dropbox will cut 16% of its employees, and according to existing media coverage, the layoffs are caused by the implementation of AI. However, Dropbox’s CEO stated, “We want the competencies of using AI in a team and a startup atmosphere.” Well, maybe at least they will start doing something noticeable with new products. It is possible that the company is not yet fully utilizing AI in its operations and is looking to integrate it into its team dynamic. This could potentially lead to the development of innovative products and services.
Also, Insider announced a 10% employee reduction (this translates to 100 people losing their jobs) a few weeks ago. On a different occasion, the company’s CEO stated a month ago that AI “is capable of making independent journalism better than it ever was—or simply replace it.”
The impact of AI on layoffs is felt in other countries, too. In places like India and China, large-scale layoffs have occurred as businesses invest in automation technologies to replace manual labor. Even countries with higher levels of employment protection are feeling the effects of AI-driven job losses as technology progresses and more businesses move away from manual processes.
People in Kenya make a career by custom-writing essays, academic papers, and other documents for students in the United States, but it now seems ChatGPT is taking over their jobs, and the number of orders is decreasing. The number of clients dropped by two times for the writers interviewed on orders. GPT-4 is, of course, less expensive in this aspect.
At the same time, AI-driven technologies also create opportunities in new fields. As businesses move away from manual labor, new professions are opening up in software development and data science. This shift is making it easier for employees with certain skills to transition into more technical roles and retain their livelihood.
Technology is continuing to evolve and become more advanced, so it is impossible to predict what the future of work will look like. But with the right policies in place, companies can ensure that those left unemployed by automation are able to transition into new roles that are driven by AI technologies.
- Microsoft has recently eliminated its ethical AI team, focusing instead on investing in OpenAI, a startup that has developed advanced artificial intelligence systems. This has raised concerns about the company’s commitment to maintaining a close relationship between product design and AI principles.
- Also in March, Meta announced a major restructuring plan to reduce its team size by 10,000 people and close 5,000 open roles. The plan will involve flattening its organizational structure, canceling lower-priority projects and reducing hiring rates. This is the second round of layoffs over the past three months.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
