Amazon’s workforce could decrease as artificial intelligence assumes repetitive duties.

Amazon's workforce could decrease as artificial intelligence assumes repetitive duties.
Andy Jassy, CEO of Amazon, informed employees on Tuesday that the introduction of generative AI and agents will likely cut down the company’s overall workforce in the upcoming years.

Artificial intelligence is transforming the global employment landscape by automating routine and repetitive tasks, leading industry leaders to anticipate a reduction or evolution of specific roles in various sectors.

While there are uncertainties, many specialists believe that AI will not result in mass unemployment but rather a reorganization of the workforce.
“As we implement more Generative AI and agents, it is expected to alter our work methods. Some current jobs may require fewer personnel, while other job types may demand more,” Jassy stated.

At the end of last year, Amazon employed over 1.5 million full-time and part-time staff. The company also brings in temporary workers and independent contractors as needed.

According to Jassy, the company is leveraging GenAI for internal operations to improve efficiency and enhance the customer experience. He mentioned that Amazon is using AI to refine inventory management and forecasting within its fulfillment network, upgrade its customer service chatbot, and enhance product detail pages.

“Amazon is echoing a sentiment increasingly voiced by other tech companies — AI is advancing rapidly in enhancing productivity, leading to reduced hiring needs over time,” remarked D.A. Davidson analyst Gil Luria.

“Currently, the primary roles being enhanced are in software development, and that is where we are experiencing the most significant hiring slowdown.”

Microsoft has asserted that AI will enhance productivity, yet it has also laid off thousands of workers, while Google has reportedly dismissed hundreds over the past year. Other technology firms are increasingly utilizing AI to automate coding for both their products and their internal processes.

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