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A January 2024 study by the International Monetary Fund has determined that more than half of all jobs in advanced economies will likely experience negative impacts from artificial intelligence (AI) in the near future. But some industries and markets are already feeling the pinch from AI when it comes to finding, getting, and keeping a job.
The head of Taher AI Solutions, Hassan Taher is just one among many AI experts to note the startling trend of layoffs that has been overtaking the tech sector. Taher’s passion for the subject of AI technology is certainly nothing new. While a computer science student at the University of Texas at Dallas, he studied AI in depth and participated as a highly involved member of the campus Artificial Intelligence Club.
Establishing the consulting firm Taher AI Solutions after graduation, Taher transformed his knowledge of AI into a successful entrepreneurial venture. While advising significant organizations of all kinds to optimize their operations with AI, he has developed a widespread reputation for his thoughts and feelings regarding the ethical and responsible use of this transformative technology.
In fact, Hassan Taher places the long profitable and rapidly growing tech industry at a major crossroads in 2024. “A startling trend has emerged: a wave of layoffs sweeping across major tech companies, leaving professionals and market analysts pondering the reasons behind these unexpected cuts,” writes Taher. “Amid various economic factors, one question stands out: Is artificial intelligence (AI) playing a role in these widespread layoffs?”
Workforce Reduction in the Tech Industry
The tech industry, known for its rapid pace and transformative nature, has always been a beacon of change. Observing that recent rounds of tech layoffs “have sent ripples of concern through the sector,” Hassan Taher contends that employment upheavals are “challenging the once unshakable job security in tech giants.”
Recent statistics from CNN Business show that over 5,500 tech professionals lost their jobs in the first two weeks of 2024 alone. CNN Business goes on to single out layoffs at Google and Amazon among “the latest rounds of tech job cuts are occurring across a range of roles and in both Big Tech companies and smaller startups.”
According to Hassan Taher, these figures show an unbroken continuation of trends that began to affect the industry in 2023, during which more than 200,000 tech positions were eliminated. Given their substantial and ongoing nature, Taher contends that “these layoffs are not isolated incidents but part of a broader pattern of restructuring within the industry.”
AI’s Role in Tech Industry Layoffs
When asked about the specific nature of the “broader pattern of restructuring” he discusses, Hassan Taher doesn’t mince words. “AI’s influence in these layoffs cannot be overstated,” he insists. “The tech industry’s shift towards AI-driven technologies is leading to significant restructuring and job cuts. Companies are prioritizing AI, with a focus on investing in areas that promise the most business value. This shift means that job roles traditionally held by humans are increasingly being reassigned to AI-powered systems.
As evidence for this notable shift toward AI, Taher singles out Google’s decision to layoff 30,000 employees as part of a larger strategy to leverage AI for maximum operational efficiency in sales among other internal divisions. “These figures are not just numbers but represent a substantial shift in how tech companies are viewing their workforce and operational strategies,” writes Taher.
Taking a close look at other tech sector giants, it is easy to see that Google is far from an outlier when it comes to transitioning heavily toward AI while making significant cuts in human resources. As CBS News reported on January 25, 2024, “Technology companies are investing heavily in artificial intelligence, and some workers are already paying the price.”
CBS News goes on to cite many examples to support this claim, including the software leader SAP, which recently announced plans to invest more than $2 billion to integrate AI into its business processes while simultaneously “restructuring” 8,000 employment posts. CBS News also named Microsoft and Duolingo among other large tech companies that are pouring money into AI and cutting their workforce at the same time.
The Disruptive Impact on the Tech Workforce
Hassan Taher sees the impact of AI on employment prospects in areas of the tech sector that range from content generation to sales to coding. “These developments have led to a reevaluation of workforce needs, with a growing preference for AI efficiencies over traditional human labor in certain sectors” writes Taher. “The move towards AI-driven automation has profound implications for the tech workforce. While AI adoption brings numerous advantages, such as increased efficiency and new capabilities, it also significantly impacts employees.”
Hassan Taher further warns that the impact of layoffs can leave ongoing negative reverberations that affect far more than just the former employees who have lost their jobs. “Layoffs, especially on a large scale, can lead to emotional and psychological distress, affecting both individual employees and the broader organizational culture,” he warns. “The human aspect of these layoffs is critical. Remaining employees may experience survivor’s guilt, anxiety about job security, and stress due to increased workloads. This can lead to decreased morale and productivity, making it crucial for companies to address these issues proactively.”
Adapting to Evolving AI Technology and a New Employment Landscape
Both in the grassroots nonprofit sector and on Capitol Hill in Washington, DC, leaders are working tirelessly to draw attention to the massive tech sector layoffs and address the root causes that underlie them. But Hassan Taher and many other tech experts warn that the onward march of AI is highly likely to continue and that it is likely to trample many things that lay in its path.
To remain relevant and valuable to employers in the new AI-driven environment, tech sector professionals are well advised to find a niche that technological advancements are unlikely to fill any time soon. “As the tech landscape evolves, so must the skills and adaptability of its professionals,” writes Hassan Taher. “Upskilling and training are becoming increasingly important for those looking to remain relevant in this changing environment. The demand for AI and machine learning expertise is growing, offering new opportunities for those willing to embrace these technologies.”
As AI continues to shape employment trends around the world, workers will have to do more than simply stay up to date on the latest technology. They may need to adapt to an entirely different employment landscape that is likely here to stay. This landscape will likely involve a focus on management and innovation while AI handles routine operations with supreme efficiency and precision.
“The current wave of layoffs may be indicative of a ‘new normal’ in the tech industry, where companies routinely reshape their workforce in response to technological advancements and market demands,” predicts Hassan Taher. “However, this also opens the door to new opportunities, both for businesses and for employees willing to reskill or upskill. The concept of job security in tech may evolve, with adaptability and continuous learning becoming key components of long-term career success. The relationship between AI advancements and human job roles will likely continue to be a dynamic and evolving landscape.”