Amazon CEO Andy Jassy says AI will help streamline operations and reduce headcount over the next few years
Amazon CEO Andy Jassy has released a message he shared with employees. In a message titled 'Some thoughts on generative AI,' Jassy expressed his belief that the further expansion of generative AI and AI agents will lead to greater operational efficiency and a 'total workforce reduction,' or layoffs, over the next few years.
Update from Amazon CEO Andy Jassy on Generative AI
AI will shrink Amazon's workforce in the coming years, CEO Jassy says
Amazon offers its AI personal assistant Alexa, and also uses AI technology in a number of other areas, including its AI shopping assistant to help users make purchasing decisions, provide advice to sellers, and build AI tools to make advertising easier.
Amazon launches AI ad video auto-generation feature, a free AI tool that depicts how products are used in the real world - GIGAZINE
Internally, Fulfillment Network is using AI to improve inventory placement, forecast demand, and improve robot efficiency to improve costs and delivery times. Generative AI is also improving customer service chatbots and making product detail pages more engaging.
According to CEO Jassy, there are already more than 1,000 generative AI services and applications in use or built within Amazon, but given the scale of Amazon, this is still just a small fraction of the company, and the company plans to further strengthen its efforts to build agents in the coming months.
'I have a strong belief that AI service agents will change the way we all work and live,' Jassy said. 'We will need fewer people to do some of the jobs that are done today and more people to do other types of work. While it's hard to predict exactly what that will look like, we believe that over the next few years, widespread use of AI across the enterprise will lead to efficiencies that will reduce a company's total workforce,' he said, revealing that he expects it will ultimately lead to job cuts.
In addition, CEO Jassy mentioned that when he started working as an assistant program manager in 1997, 'There were no tools similar to generative AI, but I had broad authority and great ambition and saw an opportunity to improve and invent so many customer experiences.' 28 years later, AI tools that have begun to spread are described as 'the most transformative technology,' and employees were called to study, saying, 'Those who embrace change, are familiar with AI, and can help build and improve AI capabilities in-house and provide them to customers will have a big impact and help transform the company.'
Incidentally, since taking over as CEO in 2020, CEO Jassy has been reducing personnel in each division. In 2022, the company will cut a total of 10,000 employees in its device and book businesses.
The company is planning to cut 18,000 jobs in 2023, the largest cut in its history.
Amazon begins record layoffs of over 18,000 employees, mainly affecting retail and human resources divisions - GIGAZINE
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