Job cuts have been in the news for the past few months. Even big companies like Google and Facebook (Meta) laid off their employees due to several reasons. Amid the low creation of jobs and more demand for employment, Artificial Intelligence (AI) has emerged as a potential threat to the market. However, it will also ease many tasks, especially regarding data.
But a recent report has revealed that AI was the reason behind 3,900 people's job loss in US. This was probably the first time that AI was included as one of the reasons behind American companies executing job cuts.
According to a report by Chicago-based outplacement firm Challenger, Gray & Christmas, the US companies cut over 80,000 jobs in May, up 20 per cent from April due to reasons such as market conditions, restructuring and buyouts and Artificial Intelligence. The report said that in May, 3,900 people were laid off due to AI. This figure accounts for around 4.9 per cent of the total job cuts reported for the month.
"We do believe Artificial Intelligence will cause more job loss, though we are surprised how quickly technology was cited as a reason," Andy Challenger, senior vice president of the outplacement firm, was quoted as saying by Fortune magazine. "It is incredible the speed the technology is evolving and being adapted," Challenger added.
Earlier in March, investment bank Goldman Sachs released a report predicting that AI could potentially displace 300 million full-time jobs worldwide, affecting nearly one-fifth of the global workforce.
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