The end of the mega-employer (Category Economics)

Recently, Business Insider came out. curious How Artificial Intelligence is Changing Corporate America U.S. tech giants are undergoing a radical transformation that could end more than a century of mega-employers. This article was written by Aki Ito, chief correspondent of Business Insider, based on the unprecedented waves of cuts in the technology sector, which occur against the backdrop of rising corporate revenues and are caused not by economic difficulties, but by the strategic adoption of artificial intelligence.

The article examines key statements made by big tech executives, such as Andy Jesse, CEO of Amazon, who explicitly warned against this. 350 000 Corporate employees about future cuts due to “increased efficiency” thanks to AI (me handler memo before). Similar statements were made by other top managers: the head of JPMorgan predicted 10Ford’s chief executive said AI would destroy “literally half” of all office jobs. Similar statement And the CEO of Microsoft.

Aki Ito makes a historical excursion and shows how Americans came from an agrarian society to mega-corporations. 70year n 20 About a third of employees were employed in companies with a number of more than 10 000 man. But today, the opposite trend is observed. According to research firm Live Data, if Microsoft shifts all automated tasks to AI, it could lead to a reduction in the number of tasks that can be automated. 80 000 jobs (36% of the current state). Startups based on AI are initially created with the expectation of a minimum staff.

If we consider the consequences for different categories of employees, it is clear that office employees ("white collar") They are at the greatest risk, and they are 45Percentage of all employed in the United States. JPMorgan expert Murat Tuski warns of a possible "unemployment recovery phase" of the economy, with white-collar workers facing a structurally higher risk of unemployment following the next economic downturn. If we talk about students and young professionals, according to the survey, 49Percentages of Gen Z believe AI has devalued their university education in the labor market. Starting positions traditionally held by graduates disappear the fastest. Dario Amodei, CEO of Anthropic, suggests AI could replace up to half of all white-collar starting positions in technology, finance, law and consulting (I mean, he says a lot of things. handler prediction).

Interestingly, the author notes several advantages of the new model. Increased innovation – smaller companies are more prone to experimentation and innovation n Greater employee motivation – according to Gallup, employees of small companies demonstrate the highest level of engagement Reduction of bureaucracy - reducing the number of management layers and internal conflicts and a number of negative consequences Limited career opportunities – small companies may not offer the same career opportunities Reduced investment in training – small firms are less likely to invest in employee development Uncertainty in the labor market - workers will have to change companies more often

Speaking of economic prospects, Oxford economist Carl Benedict Frey compares the current situation with the early stages of the industrial revolution, when new technologies primarily accelerated existing processes without creating fundamentally new industries. The real benefits for workers came only later. 80 With the invention of electricity and automobiles.

In general, the question is, if big companies cut staff and start-ups start with a minimum workforce, will the economy be able to create enough new jobs to compensate for the disappearing positions, or will we face a period of mass unemployment among educated workers?

#AI #Economics #Software #ML