Around 4,000 job losses in May due to AI: Report
What's the story
Has AI begun to take over human jobs? The answer is YES.
Almost 3,900 people were laid off last month due to AI, according to the US-based executive outplacement firm, Challenger, Gray & Christmas.
This is the first time Challenger's monthly report has included AI as a reason, probably because the layoffs happened primarily in the tech sector, which is booming with AI advancements.
Context
Why does this story matter?
The latest developments in AI technology are causing a flurry in the tech industry. From ChatGPT to Bard and others, we see new features getting announced every week.
As a result, organizations are deploying advanced AI tools at work to automate tasks including creative as well as administrative and clerical jobs. While firms are inclined toward AI tools, it is negatively affecting the workforce.
Details
5% of layoffs in May occurred due to AI
According to the report, over 80,000 layoff announcements were made by US-based employers in May.
AI accounted for 3,900 layoffs, or about 5% of all jobs lost, placing it as the seventh-highest factor cited by employers for employment losses.
Other factors contributing to the loss of jobs included market and economic conditions, cost-cutting measures, restructuring, and mergers/acquisitions.
Scenario
Two copywriters lost their job due to ChatGPT
As per Washington Post, two copywriters lost their job this week after their employers/clients decided that ChatGPT could complete the task at a cheaper rate.
Meanwhile, media houses like CNET have already laid-off reporters in favor of AI to write articles.
Earlier, National Eating Disorder Association - a US-based eating disorder helpline, utilized an AI chatbot named Tessa, and replace six human staff members.
What lies ahead?
The layoff trend is expected to continue
The layoff trend is here to stay. In March, investment bank Goldman Sachs predicted that AI would eventually displace 300 million full-time jobs worldwide, affecting nearly one-fifth workforce.
A British telecommunications company is set to eliminate 55,000 jobs by 2030. BT Group CEO Philip Jansen confirmed that their existing chatbot 'Amy' will take over the responsibilities of 10,000 employees in the next seven years.
Positivity
Contrarily, AI is also creating jobs
The AI industry is anticipated to grow to more than $1 trillion, driven by significant advancements in the field of technology.
While AI might have replaced human workers, it is already creating new jobs. It is unclear though, how the number of jobs AI creates will compare to the number of employees getting the pink slip due to it.