Amazon CEO Andy Jassy said in a memo to employees on Tuesday that the deployment of generative AI technologies and smart agents will lead to a reduction in the number of workers in management positions in the coming years.
Artificial intelligence is causing profound transformations in the global labor market by automating routine and repetitive tasks, and industry leaders expect this to reduce or reshape some roles across various sectors.
Despite the uncertainty, many experts agree that artificial intelligence will not lead to mass unemployment, but rather to a redistribution of the workforce.
Jassy said that with the continued rollout of generative AI and agents, the nature of our work will change, and we will need fewer people to perform some current tasks, but we will need more in new roles.
Amazon announced that its permanent and temporary employees exceeded 1.5 million people by the end of last year, in addition to using temporary contractors as needed.
Artificial intelligence improves efficiency and customer service.
Jassy explained that the company is using generative AI internally to improve efficiency and customer experience, as it is used to enhance inventory forecasting, develop customer service robots, and improve product detail pages.
It is worth noting that Microsoft also emphasized that artificial intelligence will enhance productivity, but at the same time, it laid off thousands of employees.
The same goes for Google, which laid off hundreds of employees last year, amid increasing use of artificial intelligence in writing code for products and internal processes.