Tech[1] will be first to suffer from the AI jobs slaughter. Microsoft, Meta, eBay, SAP, and PayPal are among the tech corporations that have been laying off staff at an alarming rate. Just this year, 34,000 positions have been eliminated, according to Layoffs.fyi, a website that records job losses in the tech sector´. It’s anticipated that things will get worse[2][3].
This trend is indicative of broader economic demand and is not limited to the tech sector. The labor market is clearly getting colder due to tighter monetary policies. But first, let’s examine the precise causes of the tech job losses.
Specific reasons why AI can play a role in job cuts
- Pandemic Over-Expansion: The IT industry grew rapidly during the pandemic, condensing approximately five years of change into just over a year. The excesses of those epidemic years are starting to become problematic as things get back to normal. Organizations shifting resources from low-growth proposals to future applications can contribute to layoffs.
- Artificial Intelligence (AI) that is generated: This brings us to a more worrying point. Artificial intelligence (AI), especially generative AI, is essential. The rate at which machines are learning has been astounding, and in many domains, they have already surpassed humans in coding proficiency. Even while we’re not quite in the world of Skynet from the Terminator films, there are still important ramifications for tech careers. Numerous IT firms are considering headcount reductions of at least 30%. Regretfully, high-paying jobs are frequently affected by layoffs, which may have an effect on tax receipts.
- AI’s Broader Impact: More than a third of corporate leaders think AI has already displaced some jobs, according to a recent survey. According to certain academic research, AI might potentially threaten up to 40% of jobs. Elon Musk has even gone so far as to say that all jobs will eventually succumb. This is irrational because a population without jobs wouldn’t provide the consumer demand required for economic output[4].
Positively speaking, generative AI may help resume stagnant productivity growth and rekindle income growth. Finding a balance between the development of technology and maintaining livelihoods is still a difficult task, though[5].
It’s important to understand that it’s not the sole cause and often interacts with other economic factors. Here are some other reasons why AI can play a role in job cuts:
Automation of tasks: AI excels at automating repetitive tasks, data analysis, and decision-making processes. This can lead to the elimination of jobs that involve these tasks, such as data entry, quality control, or certain aspects of customer service.
Increased efficiency: AI algorithms can optimize workflows and processes, leading to increased efficiency and potentially fewer human workers needed for the same output. This can be seen in manufacturing, logistics, and even creative fields like graphic design.
Changing skill requirements: As AI evolves, the skills needed in certain tech jobs are changing. Jobs that are highly susceptible to automation may require reskilling or upskilling to adapt to the new landscape. This can create difficulties for some workers, leading to job losses.
Economic factors: In times of economic downturn, companies often look for ways to cut costs. Layoffs may occur even in sectors where AI hasn’t directly replaced jobs, as part of broader cost-cutting measures. AI adoption may be seen as a way to achieve further efficiency and cost savings in such situations.
Investment shift: Companies may choose to invest heavily in developing AI and automation technologies, leading to decreased investment in areas that require more human labor. This shift in investment priorities can impact overall hiring trends.
It’s important to note:
- Not all tech jobs are at risk of being replaced by AI. Many require creativity, critical thinking, and social skills that are difficult for AI to replicate.
- AI can also create new jobs, particularly in developing, maintaining, and utilizing these technologies.
- The impact of AI on jobs is complex and varies across different industries and occupations.
Overall, while AI plays a role in tech job cuts, it’s crucial to consider the broader economic context and the evolving nature of work in the digital age.
How can I prepare for the impact of AI on my job?
Challenge or opportunity!
- Lifelong Learning: Continuous learning is essential in the age of AI. Keep abreast on new skills, industry trends, and upcoming technology. To expand your expertise, think about doing online workshops, certification programs, and courses[6].
- Build Soft Skills: AI is great at repetitive activities, but it is not as good at emotional intelligence, empathy, or creativity. Concentrate on developing abilities that are difficult for machines to comprehend, including collaboration[7], problem-solving, and communication.
- Adaptability : Have a adaptable mindset and be willing to change. AI will change the nature of jobs, and flexibility lets you change course as necessary[8].
- Remain Curious: Innovation stems from curiosity. Investigate novel technologies, try out new things, and have an interest in how AI may improve your job[9].
- Network and Connect: Create a network of contacts in your field. Building a network can help you navigate the AI-driven landscape by presenting you with possibilities, insights, and collaborative efforts[10].
Recall that AI presents both opportunities and threats. You can succeed in the changing employment market by embracing its possibilities and always improving your skills.
