In an interview with tech newsletter Big Technology, Kurian emphasized that AI’s primary role is to expand what employees can achieve, rather than reduce the headcount. The technology, he explained, primarily takes on tasks that were previously neglected, such as handling minor customer queries, and do not warrant contacting a service agent. He further said, “I think there is definitely a middle ground,” Kurian said, dismissing predictions of mass job automation that could lead to job cuts.
Earlier, Google CEO Sundar Pichai echoed this viewpoint in a June appearance on the Lex Fridman podcast, noting that AI tools have helped boost productivity. The company has been able to measure this gain by calculating the additional hours of engineering capacity enabled by AI-powered assistance.
He further stated that the impact of AI on development is already measurable. According to Pichai, over 30% of Google’s new code is now AI-generated, up about 25% in October. CEO Darren Hardman reported similar findings, revealing that the GitHub Copilot now produces 40% of the code at Microsoft, enabling the firm to launch more products in a single year than in the previous three years combined.
Are the statements in direct contrast with the actual conditions
A few months back, in July, the global tech industry was said to be facing one of its toughest issues. As per earlier media reports, a significant number of jobs were cut across major tech companies. Big names that cut jobs included Microsoft, Intel, Google, and Amazon. The shake-up is not just about reducing the headcount, but streamlining the team,s it was stated at that time
Microsoft’s layoff
It was in July this year that Microsoft itself confirmed it was laying off close to 9,100 employees as per a Times of India report, and this was the second major round of layoffs this year, as the brand had previously let go of close to 6,000 workers, mainly from engineering and product roles. Microsoft had at that time said that these job cuts were a part of a broader plan to recognize and invest in AI infrastructure, for which it committed around $80 billion over the next few years.
And beyond Microsoft, Google had slashed its Google TV team by 52%, which reportedly accounted for close to 75 employees. The budget of the team was reduced by 10%, prompting the company to downsize its workforce. Even agooge wanted to streamline its workforce to incorporate Ai into its work process. tehbrand just like others, was planning to move more resources towards AI . Beyond that, similar job cuts were also reported from Amazon, and the brand had showcased plans to integrate AI into its operations for a smoother work process.
Earlier yesterday, JPMorgan Chase CEO Jamie Dimon gave a clear warning about the disruption that AI could cause in the workforce. As reported by Business Insider in an interview with Bloomberg TV, Dimon said
Dimon said that the bank has invested about $2 billion as an annual investment in AI and is already making $2 billion in direct benefits. This includes the headcount reductions and operational savings. “We know about $2 billion of actual cost savings,” he said. “It’s the tip of the iceberg.”
He further stated that
“People shouldn’t put their heads in the sand. It is going to affect jobs,” he said. “AI will enhance some aspects of work, but also eliminate some jobs.”
It would be fair to point out that the tech industry is going through significant changes – significant layoffs around July.
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