Prominent technology firms are making substantial investments in artificial intelligence (AI), a trend that is not without consequences for certain employees.
SAP, a major player in the tech industry, is the latest company to reduce its workforce while channeling significant financial resources into artificial intelligence.
The German software giant recently declared an investment exceeding $2 billion for the integration of artificial intelligence into its operations, constituting a segment of its designated “transformation program.”
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Simultaneously, the company revealed plans on Tuesday to restructure 8,000 positions.
This restructuring will involve both layoffs and the retraining of some workers to collaborate with AI technologies.
SAP has communicated its intention to maintain a workforce size at the conclusion of the year that is approximately consistent with the current level.
This occurrence is not unique to SAP.
Over the past year, since the availability of generative AI tools like ChatGPT, which relies on large language model technology, several major technology companies have announced their entry into the field of AI, often followed by workforce reductions.
Google Cuts Ad Sales Jobs Amid AI Investment
Last week, Google, a subsidiary of Alphabet, revealed the dismissal of numerous employees from its advertising sales team as part of its increased focus on AI investment.
While Google did not explicitly attribute the workforce reductions to AI, a memorandum to employees, obtained by Business Insider, from Google’s Chief Business Officer, Philipp Schindler, acknowledged the “profound moment we’re in with AI” while announcing the layoffs.
Simultaneously, Microsoft is intensifying its commitment to AI, channeling substantial investments into OpenAI, the creator of ChatGPT, while concurrently implementing job cuts.
Additionally, Duolingo, a language learning platform, acknowledged a 10% reduction in its contractor workforce at the close of 2023.
However, the company denied that all the workforce reductions were solely linked to increased AI utilization.
A spokesperson for Duolingo explained, “In some cases, this was because the contractor’s project concluded, and in some cases, this was because the contractor’s work was no longer needed due to changes in how we generate and share content between our 100+ language courses.” Furthermore, Duolingo clarified that AI is occasionally employed to produce sentences and translations, noting its potential to enhance the efficiency of contractors.