Amazon CEO Jassy: AI to Reduce Human Jobs, but New Opportunities Await

Amazon CEO Andy Jassy has stated that artificial intelligence (AI) will transform how companies operate, leading to a reduction in human jobs that can be automated. However, he emphasizes that this shift will also open up new opportunities in fields such as AI development, robotics, and other areas that require human innovation.

In a recent interview with CNBC’s Jim Cramer, Jassy acknowledged the inevitable changes brought by advancing technology, particularly with the rapid growth of generative AI. “Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate,” he said.

While the prospect of job automation can be concerning, Jassy highlighted the positive aspects. As AI takes over routine tasks, it will free up employees to focus on more meaningful and creative work. “But there’s going to be other jobs,” he added, suggesting that the transformation will not solely result in job cuts but will also involve a shift in focus.

This trend is not unique to Amazon. Over the past year, several tech giants have spoken about the impact of AI on their operations. Salesforce CEO Marc Benioff recently revealed that AI is now handling 30 to 50 percent of the work at his company. Similarly, other tech leaders like Shopify and Microsoft are encouraging their employees to integrate AI into their daily tasks.

At Amazon, Jassy has already warned internally that the company’s workforce may shrink in the coming years as it increasingly adopts AI. In a memo to employees earlier this month, he explained that while the exact outcomes are difficult to predict, the company’s corporate team is expected to become smaller as it finds ways to work more efficiently with AI tools.

The message is clear: AI will play a significant role in how Amazon operates, and some traditional roles may no longer be necessary. However, Jassy believes this will also provide employees with the chance to work on more innovative and impactful tasks. He stated that AI will help free people from “rote work” and enable them to focus on inventing better products and services at a faster pace.

Amazon has already been cutting jobs over the past couple of years, even before these latest AI developments. Since early 2022, the company has laid off more than 27,000 employees across various departments. Smaller rounds of targeted layoffs have also occurred in retail and device teams more recently.

Despite the challenges, Jassy remains optimistic about the future. He believes that AI will not only streamline operations but also drive innovation and creativity within the company.