According to data from Challenger, Gray & Christmas, there has been a rise in job layoffs as a result of increased interest in AI’s enhanced organizational skills. AI played a big part in the loss of over 4,000 jobs last month, as businesses increasingly appreciate the technology’s ability to simplify operations and cut workloads.
Over 80,000 layoffs were reported by US-based firms in May, and AI was responsible with 3,900 of these job losses, accounting for nearly 5% of total job losses. As a result, AI was the seventh-largest driver to employment losses recorded by companies in May. The survey also said automation will have an influence on a variety of employment sectors, with 46% of office and administrative support duties likely to be automated, followed by 44% of legal positions and 37% of architectural and engineering tasks.
According to the report, AI resulted in 3,900 job losses in May. Employers also cited market conditions, restructuring initiatives, and buyouts as contributing factors to the layoffs. All 4,000 AI-related job losses occurred in the IT business, which is now experiencing significant retrenchment and the highest number of layoffs since 2001. This is the first time that artificial intelligence has been acknowledged as a contributing factor.
Andy Challenger, senior vice president of Challenger, Gray & Christmas, believes AI will result in more job losses in the future and is shocked by how quickly the technology is being cited as a reason. He acknowledged the tremendous advancement and application of AI in business.
The sources for this piece include an article in CBSNews.
