AI is reshaping the workforce, often at the expense of employees, according to a CNBC report that compiled responses from management at companies like Amazon, PayPal and Microsoft. AI is being used to streamline operations, boost productivity, and reduce labor costs. AI tools are replacing roles in customer service, HR, finance, and software development, especially entry-level and repetitive jobs. PayPal’s AI assistant, for example, is cutting down on customer service calls and live interactions. Rising unemployment numbers in the tech sector have been voiced by young workers whose skills overlap with AI capabilities. Executives often frame layoffs as “restructuring” or “optimization,” though experts say these are often euphemisms for AI-driven cuts. AI is quietly becoming a powerful force behind workforce reductions, even as companies tout its benefits for efficiency and innovation. (Source: CNBC)
Why this is important for your firm and clients: Ever see an employee typing pool? Telephone switchboard operators? Gas station attendants? Blacksmiths? Technology has always replaced people. This is nothing new. In 2025 big companies are doing this, mainly by employing AI in customer service and software development. Ultimately this technology will make its way into operations, sales, marketing, accounting and right down on to the shop floor. Small businesses will follow. Labor will be disrupted. The smartest employees will lean into this stuff and use it well. Others will find themselves out of a job. I’m sure there will be other opportunities, just like there’s always been.