AI saved Microsoft $500M while 15,000 lost jobs since January
What's the story
Microsoft's Chief Commercial Officer, Judson Althoff, has revealed that the company's artificial intelligence (AI) tools have significantly boosted productivity in sales, customer service, and software engineering. The announcement comes amid Microsoft's recent decision to lay off over 9,000 employees in its third round of layoffs this year. The company has now laid off around 15,000 workers since January 2025.
Cost savings
AI improves employee and customer satisfaction
Althoff revealed that Microsoft's AI tools saved the company over $500 million last year, just in its call centers. He also said these tools have improved employee and customer satisfaction. The tech giant is now using AI to manage interactions with smaller customers, a move that's already generating tens of millions of dollars.
Productivity boost
AI generates 35% of code for new products
Althoff also revealed that AI has been instrumental in Microsoft's product development process, generating 35% of the code for new products. This has contributed to faster product launches. He also emphasized that AI could make employees more effective as sellers. With Microsoft's Copilot AI assistant, each salesperson is finding more leads, closing deals faster, and generating 9% more revenue.
Workforce concerns
Microsoft's massive layoffs and soaring profits
The rise of AI has sparked fears of job displacement, especially in the tech sector. Microsoft has announced around 15,000 job cuts this year, with a recent wave targeting customer-facing roles like sales. The company's first-quarter profit stood at $26 billion with a revenue of $70 billion. Its market capitalization has also soared to about $3.74 trillion, surpassing Apple and only trailing NVIDIA.