In recent years, many studies have emerged discussing the potential impact of artificial intelligence automation that might result in job cuts. Most of these studies are built on assumptions and attempt to forecast potential job losses. These predicted figures are often cited, despite lacking much solid evidence. I previously wrote about a particularly flawed study by the ILO, which is why I choose not to link to any similar studies.
It's clear that no one can predict with certainty the full impact of artificial intelligence on job replacement. Similarly, it is difficult to estimate how many new jobs may be created as a result of these advancements. The internet has already demonstrated its ability to generate various jobs that did not exist just a decade or two ago. These concerns about widespread job loss are not a new phenomenon and have been raised with each major technological advancement.
In 2016, James Bessen conducted a study examining 271 occupations listed in the 1950 Census. His findings showed that only one occupation could be definitively linked to automation by 2010: elevator operators. Now, there is much talk about the potential impact of generative AI and large language models on employment, with warnings of potential job losses.
This page aims to keep track of real-world examples where the use of generative AI has resulted in or been linked to job cuts.
Content editing is a significant feature offered by large language models like ChatGPT, ensuring proper grammar and even applying a specific style or tone to a text. Recently, the German tabloid magazine Bild, owned by Springer companies (which also owns Politico), declared their plans to downsize their team of editors. The company claims that traditional roles such as "editors, print production staff, subeditors, proofreaders, and photo editors" will no longer exist in their current form. According to sources within the company, the number of employees leaving is estimated to be in the "low" hundreds. Source
- In May 2024, the Buzzfeed News team was fired. CEO Jonah Peretti stated, "Over the next few years, generative AI will replace the majority of static content, and audiences will begin to expect all content to be curated and dynamic with embedded intelligence. AI will lead to new formats that are more gamified, more personalized, and more interactive." Source
- In November 2023, Luis von Ahn, the Chief Executive Officer of Duolingo, a popular language learning app, announced that they have implemented generative AI technology to create content at a faster pace. This includes scripts for shows that aid in teaching languages. As a result, about 10% of their contractors were let go. According to a company representative, this is due to the efficiency of AI and the fact that fewer people are needed for certain tasks. Source
- A PR firm in France is reducing its workforce by more than half, with plans to cut 209 positions and not fill an additional 8 already empty roles out of its current staff of 383. The company, located in Courbevoie (Hauts-de-Seine), employs individuals who compile press articles and create summaries for prominent economic figures. Source
In February of 2024, Klarna, an online payment platform that offers the option to buy now and pay later, revealed their plans to incorporate AI assistants into the checkout process. These AI assistants were proven to be as effective as 700 full-time agents, handling a whopping 2.3 million conversations and generating high levels of customer satisfaction.
Additionally, the use of these assistants resulted in a significant 25% decrease in repeated inquiries. This achievement is particularly noteworthy because it implies that they were able to overcome challenges such as false responses and hallucinations from AI-driven chatbots, which recently led to a legal dispute involving a Canadian airline. Source
IBM said the company expected to pause hiring for roles it thinks can be replaced by AI technology in the next few years. Around 30% of the jobs in back-office functions, such as human resources, could be automated with AI tools over a five-year period. Source
In a blog Henley Wing Chiu analyzed 5 million freelancing jobs that decreased most since the introduction of ChatGPT: writing, translation, and customer service. Translation jobs declined 19%, and customer service jobs declined 16%.
British Telecom announced in 2023 they would potentially replace 10 thousand employees using artificial intelligence by 2030. Source
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JPMorgan says its AI cash flow software cut human work by almost 90%. It is unclear from the article if actual jobs have been replaced by this automated forecasting system. Source
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