Amazon CEO says AI will eliminate some human Jobs
What's the story
Amazon's CEO Andy Jassy has said that artificial intelligence (AI) will change how companies work and lead to fewer people being required for some jobs. In an interview with CNBC's Jim Cramer, Jassy acknowledged that as technology advances, particularly with the rapid rise of generative AI, certain roles within organizations will be performed more efficiently by machines.
Operational changes
AI will free people from 'rote work': Jassy
Jassy believes that AI will play a bigger role in how Amazon operates, potentially making some traditional roles redundant. However, he also thinks this could give employees an opportunity to focus on more meaningful and creative tasks. He said AI would free people from "rote work" and let them concentrate on inventing better products/services faster.
Job transformation
AI will also create new opportunities, says Jassy
Jassy said, "Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate." However, he added that AI will also create new opportunities. He believes that even as some tasks are automated, more people will be employed in areas like AI development and robotics.
Industry shift
Other tech leaders echo Jassy's sentiments
Jassy's perspective aligns with a wider trend in the tech industry. Over the past year, several companies have acknowledged how AI is already taking over routine work. Salesforce CEO Marc Benioff recently revealed that AI now does 30-50% of the work at his company. Other tech giants like Shopify and Microsoft are also encouraging their employees to integrate AI into their daily tasks.
Workforce impact
Klarna has reduced its workforce by nearly 40%
Klarna, an online lender, has cut its workforce by nearly 40% with the help of AI and regular staff exits. At Amazon, Jassy has already warned that its workforce will reduce in the coming years as the company continues to adopt AI on a large scale. In a recent memo sent to employees, he said while it's hard to predict exactly what will happen, the corporate team is likely to get smaller over time because of advancements in AI.