“Artificial intelligence will literally replace half of the white-collar workers in the United States,” Ford Motor CEO Jim Farley said in an interview last week at the Aspen Ideas Festival. “AI will push a lot of white-collar workers out of the workforce,” Farley said.
At JPMorgan Chase, Marianne Lake, CEO of the bank's consumer and community business, predicts the bank's operational headcount could shrink by 10% in the coming years as the company deploys new AI tools.
These comments are not isolated, but echo recent warnings about jobs from leaders at Amazon, Anthropic and many other companies.
AI changes the way we work and the structure of our workforce
Amazon CEO Andy Jassy wrote in a memo to employees in June that the company's overall headcount would shrink because AI technology is "once in a lifetime."
“We will need fewer people doing some of the jobs we do today and more people doing other types of jobs,” Mr. Jassy explains.
In May, Dario Amodei, CEO of Anthropic, said half of all basic jobs could disappear within the next one to five years, leading to a US unemployment rate of 10% to 20%.
Mr Amodei called on CEOs and government officials to stop “downplaying” the situation.
The Ford CEO's comments are among the most candid from a major US company leader outside of Silicon Valley to date.
His remarks reflect a marked shift in views about the cost of AI, according to the WSJ .
In the past, few business leaders were willing to publicly acknowledge the extent to which office jobs might disappear.
In interviews, they often dodge questions about job losses. Instead, they often emphasize the advancements that always create a variety of new roles.
Yet in private conversations, CEOs have spent months discussing how their businesses can operate effectively with a fraction of their current staff.
Technologies like automation software, AI and robotics are being deployed to help make operations as lean and efficient as possible.
A multidimensional view of AI opportunities and challenges
Micha Kaufman, CEO of freelance marketplace Fiverr, wrote in a memo to employees this spring that professionals will need to accept the fact that very few positions will not be transformed by AI.
However, he also acknowledged that there would be job displacement and said that any new technology could lead to changes in the labor market.
Arvind Krishna, CEO of International Business Machines (IBM), said the company has used AI to replace the jobs of several hundred people in its human resources department.
But, he added, the company is also hiring more programmers and sales staff to meet the new demand.
Pascal Desroches, AT&T's chief financial officer, said in an interview last month that there are still many uncertainties about how AI will reshape work.
He also noted that past technological revolutions have shown that new jobs have emerged on a regular basis. “It’s hard to say definitively, ‘Oh, we’re going to have fewer workers but more productivity,’” he said. “We don’t know for sure.”
(According to WSJ)
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