AI to Transform Workforce, Amazon CEO Warns

Amazon CEO Andy Jassy has predicted that artificial intelligence (AI) will lead to significant changes in the workforce as the technology begins to automate many tasks. In an interview with CNBC's Jim Cramer, Jassy emphasized, “AI is going to be the most transformative technology in our lifetime. It's also going to change the way we work.”

Jassy explained that, like with every technical transformation, there will be fewer people doing some of the jobs that technology starts to automate. However, there will also be new jobs created that require higher skill levels. He added, “People won't have to do as much routine work, allowing every single person to start every task at a more advanced starting spot.”

“This is going to make all our jobs more interesting,” Jassy noted. Amazon plans to continue hiring employees in its AI, robotics, and other divisions despite recent layoffs. Last month, the Amazon chief admitted that he expects the company's workforce to decline in the coming years as the e-commerce giant embraces new technology.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company,” Jassy wrote in a memo to employees.

Salesforce CEO Marc Benioff recently claimed that AI is doing 30% to 50% of the work at his software company. Meanwhile, Klarna’s CEO stated in May that the company has managed to cut its workforce by 40% due to investments in AI and natural attrition. Amazon has cut over 27,000 jobs since the start of 2023 and has announced targeted layoffs in its retail and devices divisions in recent months.

The shift towards AI is not just about reducing costs; it's about enhancing the quality and efficiency of work. As Jassy put it, “AI will not only automate routine tasks but will also create new opportunities for innovation and growth.”