AI now has the capability to take over millions of jobs, yet why has there been no mass layoffs? Know what fear is stopping CEOs from taking steps.
Artificial Intelligence (AI) has become so advanced today that it can replace millions of jobs. Still, there has been no mass layoffs till now. The reason is not just technology, but the fear of the top officials of companies – fear that they may be the first to initiate this change and become the center of political controversies.
The technology is ready, but not the courage
AI technology is already so capable that it can do the work of humans in many sectors in a faster and cheaper way. But corporate leaders are looking at each other – who will take the first step. No one wants his company to become a symbol of this change and become a target of the public or politics.
Difference in thinking among generations
- There is a clear difference in thinking about generative AI on the basis of age.
- People under the age of 35 believe that the effect of AI is already visible and the threat of job loss is present immediately.
- People over the age of 35 think that this change will come after 5–10 years.
The problem is that people in the second category are behind reality. The pace of change is much faster than they think.
Also Read: Discover What Jobs Will AI Not Replace | TOP 10 Safe AI Jobs
What is the CEO saying
Palantir Company’s CEO Alex Karp told to CNBC News Channel Interviews in August that the company would reduce the many employees as it increases revenue. He clearly indicated that 500 employees will no longer be needed due to AI.
Amazon CEO Andy Jassy also warned employees in June that in the coming years, fewer people will be needed in many existing jobs and new types of jobs will be created. They already have more than 1 million robots, which will become more capable in the future.
Waiting for the political environment
CEOs know that if they eliminate jobs due to AI on a large scale, they will face political opposition from both sides. So they are waiting, perhaps hoping that someone else takes the step first and they will quietly do the same later.
Incomplete preparation of government and leaders
Politicians are also considering this change as a distant thing, when in reality it is happening right now. What will be the options for those who lose their jobs? What will happen to their health benefits and security before retirement? The answers to these questions are not yet decided.
Change is happening gradually
Instead of mass layoffs, companies are currently stopping hiring. Managers are being asked whether AI cannot do the work for the position which requires a human? According to data from Handshake, advertisements for entry-level corporate jobs have decreased by 15% in the last one year.
What the numbers say
According to a report by Challenger, Gray & Christmas, AI is among the top 5 reasons for job loss this year. More than 8 lakh private sector jobs have been lost since January the largest number since 2020. The tech industry is leading the way.
The last question – when?
The machines are ready, they can do the job, but your boss doesn’t have the courage to say that AI will take your job yet. They are waiting for someone else to become the “villain” first. The only question is how long this wait will last.
Also Read: AI Job Crisis: Google official warns of the end of the middle class by 2027
