AI Technology Responsible For 4,000 Job Cuts In May: Report

Artificial Intelligence (AI) has reportedly emerged as the cause for nearly 4,000 job losses in May 2023, as per a monthly report released by the multinational HR company, Challenger, Gray & Christmas. This figure accounts for around 4.9% of the total job loss reported for the month.

From January to May, an astounding 417,500 jobs were lost, making it the worst five-month period since 2020, when the COVID-19 pandemic prompted over 1.4 million layoffs. Even excluding the pandemic's impact, the report noted that the start of 2023 has seen the highest number of layoffs since the recession of 2009, which witnessed approximately 820,000 job cuts, as per the Business Today report.

These job losses are across sectors. IBM CEO Arvind Krishna had said in an interview that his company would be replacing 6,800 jobs by AI in a phased manner over time. CBS News reported that two copywriters lost their jobs as employers sought the cost-effective alternative of utilising AI, while media company CNET laid off reporters while implementing AI to generate articles, according to a Business Today report.

"Consumer confidence is down to a six-month low and job openings are flattening. Companies appear to be putting the brakes on hiring in anticipation of a slowdown," said Andrew Challenger, labor expert and Senior Vice President of Challenger, Gray & Christmas, Inc.