Eminent US consulting firm Challenger, Gray & Christmas disclosed in a recent report that the Artificial Intelligence adoption led to the loss of jobs for almost 4,000 individuals in the US during May. As per the report’s analysis, approximately 5% of job cuts occurring during this month were associated with the implementation of AI, cited as the leading cause behind the layoffs.
As confirmed by the recently released “The Challenger Report 2023,” it appears that the sizable scale of job cuts that took place in the United States last month can be traced back to the influence of Artificial Intelligence. The number of layoff announcements made by U.S. employers in May exceeded 80,000, representing a 20% increase from the previous month and nearly four times the figure for the same month last year.
The report specifies that approximately 5% of all lost jobs can be attributed to AI technology, with 3,900 cuts being made in May alone. This puts AI as the seventh-highest contributor to employment losses for the month, as confirmed by employers. It certainly appears that companies are actively embracing advanced AI technology to automate various tasks, leading to the recent surge in job cuts.
Andrew Challenger, the Senior Vice President and Labor Expert at Challenger, Gray & Christmas, has highlighted that recent mass layoffs in the United States could be attributed to consumer confidence dropping to a six-month low and job openings plateauing.
“Consumer confidence is down to a six-month low and job openings are flattening. Companies appear to be putting the brakes on hiring in anticipation of a slowdown,” said Andrew Challenger.
In recent months, there has been a growing concern and heightened sense of urgency surrounding the potential impact of Artificial Intelligence. A recent development has been the publication of a letter, signed by over 300 industry leaders, highlighting the possibility of AI causing human extinction. The letter emphasizes the need for the gravity of this issue to be acknowledged, comparing it to the serious consideration required for pandemics and nuclear war.
Via CBS News
