Amazon CEO Andy Jassy said Tuesday that the company expects artificial intelligence \u2018will reduce our total corporate workforce as we get efficiency gains\u2019 over time. <\/p>\n
\u2018We will need fewer people doing some of the jobs that are being done today, and more people do other types of jobs,\u2019 Jassy added in a memo to Amazon\u2019s workforce. <\/p>\n
The CEO of the country\u2019s second-largest retailer and employer said Amazon is using generative AI \u2018in virtually every corner of the company.\u2019<\/p>\n
Amazon employs more than 1.5 million people worldwide, according its most recent annual report.<\/p>\n
This year, Amazon plans to spend $100 billion to expand AI services and data centers that power them, up from $83 billion last year.<\/p>\n
Jassy said he believes so-called \u2018AI agents\u2019 will \u2018change how we all work and live.\u2019 While \u2018many of these agents have yet to be built,\u2019 he said, \u2018they\u2019re coming, and fast.\u2019 <\/p>\n
He continued by saying that they will \u2018change the scope and speed at which we can innovate for customers.\u2019 <\/p>\n
Amazon currently has more than a thousand AI services and applications running inside the company or in progress of being built.<\/p>\n
Jassy\u2019s comments Tuesday will likely invoke fears that many corporate workers have had as artificial intelligence captures the eye of efficiency-minded executives across corporate America. A recent study from Bloomberg Intelligence said that AI could replace up to 200,000 banking jobs.<\/p>\n
Amazon CEO Andy Jassy in New York on Feb. 26.<\/span>Michael Nagle \/ Bloomberg via Getty Images<\/span><\/p>\n Artificial intelligence has also been shown to be effective at coding for software programs.<\/p>\n Cybersecurity firm Crowdstrike eliminted 5% of its workforce in May, saying that AI was driving \u2018efficiencies across both the front and back office.\u2019 <\/p>\n Shopify CEO Tobi Lutke said managers at the e-commerce company will be expected to prove why they \u2018cannot get what they want done using AI\u2019 before asking for more headcount.<\/p>\n \u2018Having AI alongside the journey and increasingly doing not just the consultation, but also doing the work for our merchants is a mind-blowing step function change here,\u2019 Lutke added.<\/p>\n Language learning firm Duolingo also recently said that it would replace contract workers with artificial intelligence. \u2018We\u2019ll gradually stop using contractors to do work that AI can handle,\u2019 CEO Luis von Ahn wrote in a memo to Duolingo employees in May. \u2018Headcount will only be given if a team cannot automate more of their work,\u2019 von Ahn added.<\/p>\n The CEO of U.K. telecom giant BT said this week that plans to cut 40,000 jobs from the company\u2019s workforce over the next 10 years \u2018did not reflect the full potential of AI.\u2019 <\/p>\n\n Amazon CEO Andy Jassy said Tuesday that the company expects artificial intelligence \u2018will reduce our total corporate workforce as we get efficiency gains\u2019 over time. \u2018We will need fewer people doing some of the jobs that are being done today, and more people do other types of jobs,\u2019 Jassy added in a memo to Amazon\u2019s <\/p>\n","protected":false},"author":0,"featured_media":35903,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-35902","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/posts\/35902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/comments?post=35902"}],"version-history":[{"count":0,"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/posts\/35902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/media\/35903"}],"wp:attachment":[{"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/media?parent=35902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/categories?post=35902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/americanfinancecore.com\/index.php\/wp-json\/wp\/v2\/tags?post=35902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}