Is AI really driving recent layoff announcements??

I keep seeing layoff announcements (the latest being from Amazon) that indicate that the company is going to rely on AI to do the work of the people they are laying off. I just don’t see it – at least at this stage.

I use AI every day in my job and while it can be helpful at a surface level, every time I push it – even a little – it falls apart almost immediately. Network disconnects, losing its “memory”, hallucinations, quoting fake references…it goes on and on.

My theory? I think companies are blaming layoffs on AI to avoid admitting they over-hired and/or that their business is just not performing very well. Claiming it’s “AI” gives investors the idea the company is being innovative – instead of struggling.

For the record – I’m an AI optimist and I think eventually its capabilities will become truly useful in a way that expands economic activity and opportunity. But currently it’s far from prime time and certainly not as capable or reliable as an even a junior level recent graduate.

Would love to hear from real businesses – that aren’t in the AI space – that have found it more capable and/or materially less expensive than a human alternative and have actually made headcount reductions because they can rely on it.

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