AI Job Cuts Reach Record Numbers in May, Reveals New Report
Updated: Jan 4
[Edited] Artificial intelligence (AI) has already begun replacing human jobs, with nearly 4,000 job losses attributed to AI in May alone, according to a report by Challenger, Gray & Christmas.
The rapidly evolving technology's ability to perform advanced organizational tasks and lighten workloads has led to increased interest and adoption.
The report, released by the outplacement firm on Thursday, highlights that layoff announcements from U.S.-based employers reached over 80,000 in May, marking a 20% increase from the previous month and nearly four times the level of job cuts compared to the same month last year. AI was responsible for 3,900 job cuts, accounting for approximately 5% of all jobs lost and ranking as the seventh-highest contributor to employment losses in May.
Businesses are swiftly embracing advanced AI technology to automate various tasks, including creative work such as writing, as well as administrative and clerical work. Bloomberg Intelligence analysts predict that the AI industry will exceed $1 trillion in value, driven by significant technological advancements, notably the launch of OpenAI's ChatGPT bot last fall.
Key points from the report:
- Chatbots like ChatGPT are likely to replace the jobs most affected by AI.
- ChatGPT bot has even passed a law school exam.
While this is the first time AI has been included in the Challenger report, it is not the first instance of the technology replacing human workers. The Washington Post recently reported on two copywriters who lost their jobs as employers opted for ChatGPT's services at a lower cost. Media companies, including CNET, have already laid off reporters while utilizing AI to write articles, which later had to be corrected for plagiarism. Additionally, an eating disorder helpline had to discontinue the use of a chatbot after it provided problematic dieting advice.
In March, Goldman Sachs predicted that AI could eventually replace 300 million full-time jobs globally, impacting nearly one-fifth of employment. White-collar jobs, often considered automation-proof, such as administrative and legal professions, are expected to be particularly affected.
AI's impact is also evident in the ongoing TV and entertainment writers' strike, where writers are demanding better pay, job security, and a near-total ban on the use of AI to produce written entertainment content.
However, analysts note that, similar to previous technological advancements, generative AI is creating new job opportunities. The growing industry is projected to become a significant employment generator, with estimates of a $1.3 trillion AI market that will boost sales and advertising spending for the tech industry.
Ben Emons, a principal at NewEdge Wealth, commented, "Generative AI is expected to become a monster employment generator because of estimates of a mushrooming $1.3 trillion AI market that will boost sales and ad spending for the Tech industry."
AI has already led to the elimination of nearly 4,000 jobs in May, according to a report by Challenger, Gray & Christmas.
Businesses are adopting AI to automate tasks, including creative, administrative, and clerical work.
Chatbots like ChatGPT are likely to replace jobs most affected by AI.
Source: CBS NEWS