4,000 people lost their jobs within one month…and the reason is artificial intelligence

According to an article on The American Business Insider website, published on June 2, 2023, about 4,000 individuals lost their jobs in May 2023 due to the implementation of artificial intelligence. This marks the first time that artificial intelligence has been listed as a reason for job cuts in the monthly report published by Challenger, Gray, and Christmas.

According to the report, 3,900 jobs were lost in May due to artificial intelligence out of the total 80,000 lost jobs. Job losses were also attributed to factors such as economic and market conditions, cost-cutting measures, restructuring, or mergers and acquisitions.

Artificial intelligence affects the labor market

Artificial intelligence affects the labor market

According to the Challenger report, the company discovered that from January to May 2023, approximately 417,500 individuals lost their jobs. This five-month period marked the worst at the beginning of the year since 2020, when more than 1.4 million people were laid off due to the pandemic. Excluding the pandemic year, 2023’s initial months resulted in the highest number of laid-off workers since 2009, when 820,000 employees were laid off.

According to a company spokesperson, the May 2023 report was the first to attribute layoffs to the implementation of artificial intelligence. These layoffs only occurred in the technology sector, where new advancements in AI technology are constantly emerging from companies like Google, Adobe, and Amazon. Starting with ChatGPT and continuing with weekly feature releases, this sector is at the forefront of AI innovation.

Impact of artificial intelligence on the future of work

The Challenger report predicted that the trend of job loss due to artificial intelligence would persist, though some companies might hesitate to attribute their layoffs to AI. However, it remains uncertain whether the number of jobs created by AI will outweigh those lost to automation.

Brittney Nguyen from the American site spoke to the National Eating Disorders Association, confirming that their helpline will be replacing at least six employees with an artificial intelligence chatbot named Tessa. However, on Tuesday, May 30, Project Tessa was temporarily closed after a user reported that Tessa had advised him on habits such as weekly weigh-ins and calorie counting, which raised concerns about the possibility that such advice might have contributed to his eating disorder.

 Thousands of employees are expected to be laid off 

A British telecom company revealed its intention to lay off approximately 55,000 workers by 2030 while announcing its profit plans in May 2023. The majority of layoffs will be part of pre-existing plans, and they will also follow the completion of certain projects.

According to Philip Jansen, the CEO of BT Group, the company will replace AI with around 10,000 employees who were laid off within the next seven years. Amy, the company’s current chatbot, is capable of responding to many users’ questions and will continue to improve with time.


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