AI may not be coming for your job just yet, but CEOs are certainly already exploring its potential.
Projections of incredible growth in AI-powered economies have long fuelled hype among businesses and governments.
News reports however have been rather divided on whether the AI revolution is already impacting jobs, or if the labour market has yet to see the effect of these new tools.
But there’s no doubt that some companies are seriously looking into streamlining, optimising, and cutting with AI. Inevitably, employees find themselves in the firing line.
This year, several CEOs came out publicly saying that AI will be integrated much more into their companies.
Duolingo was one of these, announcing in April to its employees that it would go “AI-first”, which entails gradually stopping hirings of contractors whose work can be done by AI.
The CEOs of Fiverr and Shopify also circulated memos among their staff earlier this year. Shopify chief Tobi Lutke was clear: Try boosting your productivity with AI before asking for more resources!
Inevitably, the tech sector is at the forefront as an early adopter of the tech. Several giants have started to shift their priorities, freeing up staff budgets to replace them with dedicated AI engineers.
In May, IBM laid off 8000 employees in its HR, marketing and sales departments. Meta recently replaced “lower performers” with AI engineers as it shifts its priorities towards AI-powered products rather than its traditional social media business.
Where is this all leading? It’s a question posed by MIT professor and Economics Nobel Prize winner Daron Acemoglu, who predicted companies might be jumping on the AI bandwagon and cutting jobs, only to regret this later when the gains failed to live up to expectations.
Some companies are already going down this path, but it might be too early to conclude that Acemoglu was entirely right. Much remains speculative, and there are plenty of companies that have yet to venture into the unfamiliar territory of AI.
In Europe, uptake is still low: the Commission’s 2024 report on the Digital Decade Programme shows this to be only around 11%.
Then again, the technology is also still evolving. Some experts anticipate “AI agents” will be ready to be integrated into all our products within the next two years. But this is also contested.
Who should be worried? Those working in media, public administration, and coding might be the first to feel AI breathing down their neck. (A confession: we made exceptional use of a certain chatbot to help with this headline.)
Yet whilst the debate is still open as to what extent the tech is impacting workplaces, the AI job revolution is certainly a hot topic in company boardrooms.
Roundup
Green hydrogen backfire – The EU push to produce green hydrogen could actually raise emissions, as in the wrong market conditions the framework could result in coal power plants making up for consumer demand.
Commission mulls major tax hike on tobacco – The EU executive is mulling a reform to the much-discussed Tobacco Excise Tax Directive after 15 member states called for new action against the sale of cigarettes. A source said that existing rules “are no longer fit for purpose”.
Bigger livestock farms raise welfare concerns – Animal welfare activists warn that Europe is turning its back on small, family operations, as major US-style farms become more prevalent. But the industry denies accusations that “big” equals “bad”.
Across Europe
Schuman roundabout bailout – The roundabout at the heart of Europe was due to be transformed by a multi-million-euro overhaul funded largely by the EU. But Brussels still can’t afford the works and has begged the EU for an “exceptional” financial contribution.
Ukraine’s inspirational drone war – The audacious drone operation Ukraine mounted against Russia on 1 June has fuelled interest among EU politicians and weapons makers in partnering with Ukraine’s innovative defence industry.
Germany legal battle over limits of press freedom – A court battle over the ban of a noxious far-right magazine is pitting Germany’s struggle to contain rising extremism against the limits of free speech.
