Amazon won't need as many human workers in the future, according to CEO Andy Jassy, but that’ll be a good thing for those that remain.
In a recent interview, Jassy doubled down on the AI plans outlined in a memo to staff last month. At the time, Jassy said the use of the technology will enable the company to unlock “efficiency gains” - a common talking point for companies ramping up AI adoption.
Ultimately, the strategy will lead to "fewer people doing some of the jobs that are being done today”, Jassy said.
Speaking to CNBC, the Amazon chief exec defended the move when asked about the impact of the technology on the workforce, suggesting that it will deliver benefits for both the company and staff.
"This AI technology is going to be the most transformative technology in our lifetime," Jassy said, adding: "it's going to change the way we work."
He claimed AI agents would be able to do coding, research, analytics, security, website localization and "they'll do spreadsheets over time."
"That means it's going to change a lot of these particular job functions,” he added.
Given the scale of the predicted change, Jassy said businesses and employees alike now face a decision - they can either “lean into it and embrace it” or they can “wish it away and have it happen to you”.
Amazon is leaning into AI
Jassy argued that Amazon is better off doing the former, suggesting it would make for better work for the staff who remain employed.
"They won't have to do as much work," he said, "and every single person gets to start every single task at a more advanced starting spot. That's going to make all of our jobs more interesting."
"Like with every technical transformation, there will be fewer people doing some of the jobs that the technology actually starts to automate," Jassy added.
"But there’s going to be other jobs — we're going to hire more people in AI, more people in robotics."
Amazon has reportedly cut more than 20,000 jobs since 2022, including recent cuts to its books and driverless divisions.
While these cuts weren’t linked to AI and largely occurred during the infamous “year of efficiency” in 2023, concerns are growing over the impact of the technology on the job market.
Recent analysis found that entry-level roles are being impacted by the influx of AI tools across a range of industries, for example.
This has prompted calls from leading industry figures to initiate a frank discussion on the matter, with Anthropic CEO Dario Amodei suggesting workers are “burying their heads in the sand” on the topic.
There have already been high-profile examples of AI-related job cuts, most notably at Klarna. The buy now, pay later giant cut staff as part of a sharpened focus on AI adoption, which proved highly beneficial for the company.
Similarly, Salesforce pinned jobs cuts on an AI focused reorganization, Intuit slashed 1,800 jobs to power AI investment, and CrowdStrike cut 500 jobs earlier this year as part of a strategic shift to AI.
Some industry leaders appear unfazed despite growing concerns, however. Google CEO Sundar Pichai offered a relaxed outlook on the topic in a recent interview, for example.
According to Pichai, while the technology may impact jobs, it will ultimately lead to better quality of work - at least for those still employed.
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