"First, Schultz said that AI would enable workers to perform existing tasks more efficiently - something that could lead to a company's headcount shrinking. "Existing stuff is going to be done more efficiently with AI as it exists today," Schultz said. "A lot of stuff can be automated, a lot of stuff can be done more efficiently. So that work, there will be less of it.""
"There are already signs of that playing out at some major tech giants. In June, Amazon CEO Andy Jassy said that he expected AI efficiency gains to reduce the company's corporate workforce. These AI efficiency cuts are leading to what some refer to as the " Great Shrinking.""
AI will both eliminate certain jobs through efficiency gains and create entirely new categories of work that were previously too costly. Efficiency and automation will reduce the amount of existing routine work, potentially shrinking headcount. Simultaneously, AI-enabled capabilities will make feasible new products, services, and roles that expand labor demand. The balance between these forces determines whether a company's workforce grows or shrinks. The emergence of advanced general intelligence could fundamentally change outcomes and accelerate shifts. Recent technology-industry trends include pandemic-era hiring booms, subsequent layoffs, and aggressive AI hiring and poaching.
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