Amazon boss says AI will replace jobs at tech giant

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"Amazon CEO Andy Jassy Warns AI Integration Will Reduce Corporate Workforce"

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Amazon's CEO, Andy Jassy, has communicated to employees the significant impact that artificial intelligence (AI) will have on the company's workforce in the coming years. In a memo sent out on Tuesday, he encouraged staff to embrace AI, acknowledging that its integration into the company is expected to lead to efficiency gains that will ultimately reduce the corporate workforce. Jassy stated that while the exact outcomes are uncertain, it is anticipated that fewer personnel will be needed for certain jobs currently performed, while a demand for new roles will emerge. This shift reflects a broader trend within the tech industry, where companies are investing heavily in AI technologies that can automate tasks previously handled by humans, particularly in entry-level positions. Jassy's remarks align with concerns voiced by other tech leaders about the potential for significant job losses as AI tools continue to evolve and proliferate.

The memo also highlighted Amazon's extensive use of AI across various sectors of the company, where it is already streamlining operations and enhancing productivity. Jassy noted that AI is being utilized in nearly every aspect of Amazon's business, including routine tasks such as shopping and daily chores. He pointed out that many AI-driven agents are still in development but are on the horizon, emphasizing the importance for employees to adapt to these technological advancements. Jassy mentioned that a substantial number of sellers on Amazon's platform are already leveraging AI tools to enhance product information, showcasing the technology's growing integration into the company's ecosystem. As Amazon continues to innovate with AI, the workforce will need to evolve accordingly, with Jassy suggesting that those who are proactive in learning and adapting to these changes will be better positioned within the company moving forward.

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Amazon boss Andy Jassy has told staff to embrace artificial intelligence (AI) and warned the technology will lead to a smaller corporate workforce in the next few years. He shared the prediction in a memo to staff on Tuesday, which urged employees to "be curious about AI". The tech giant is the latest firm to set out its plans for using AI amid concerns the technology will lead to rapid job losses across the world. Mr Jassy said he expected AI to lead to "efficiency gains" that would allow the firm to reduce its corporate workforce. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," he wrote. "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." Companies, especially in the tech sector, have been investing heavily in AI in recent years, spurred on by technological advances that have made it easier than ever for chatbots to create code, images and text with limited instruction. But as the new tools gain traction, they have sparked warnings from some tech leaders of job losses, especially in entry-level office roles. Dario Amodei, chief executive of AI-firm Anthropic, told news website Axios last month that the technology could wipe out half of entry-level white collar jobs. Geoffrey Hinton, whose work on AI, including at Google, has earned him the moniker "Godfather of AI", echoed those warnings on a recent podcast. "This is a very different kind of technology," he said, pushing back against arguments that job losses from AI will be outweighed as the technology creates new kinds of positions, in a pattern seen with earlier technological leaps. "If it can do all mundane human intellectual labor, then what new jobs is it going to create? You'd have to be very skilled to have a job that it couldn't just do." Amazon directly employed more than 1.5 million people around the world at the end of last year. The majority of those staff are in the US, where it ranks as the country's second-largest employer after Walmart. While many staff the firm's e-commerce warehouses, about 350,000 people also serve the company in office roles. In his memo, Mr Jassy said Amazon was using AI in "virtually every corner of the company" and he expected the technology to eventually perform routine tasks, such as shopping and daily chores. "Many of these agents have yet to be built, but make no mistake, they're coming and coming fast," he wrote, saying staff who embraced such changes would be "well-positioned" at the company. He said half a million of the sellers on its platforms were already using the company's AI tools to create information about their products, while advertisers were also adopting its AI offerings.

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Source: Bbc News