Amazon Web Services CEO: Stop Replacing Workers With AI | Entrepreneur
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Amazon Web Services CEO Matt Garman emphasized the importance of keeping junior employees instead of replacing them with AI. He described this approach as ineffective, given that junior employees are affordable and proficient with AI tools. Garman encouraged the hiring and training of these staff members while advising students to develop critical thinking skills to adapt to the evolving job landscape. His comments come amidst a notable decline in junior hires among major tech companies, attributed to AI taking over entry-level tasks, leading to increased unemployment among young tech workers.
Amazon Web Services CEO Matt Garman stated that replacing junior employees with AI tools is misguided because these employees are cost-effective and adept at utilizing AI technology.
Garman advised organizations to maintain investment in hiring and training junior staff instead of opting for AI, emphasizing the need for critical thinking skills in an evolving job market.
The shift away from hiring new graduates in big tech is significant, with SignalFire reporting that junior hires dropped from 25% in 2023 to just 7% the following year.
Goldman Sachs indicated that unemployment among young tech job seekers rose dramatically, with a 3% increase since 2024, much higher than the general unemployment rate.
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