The tech sector is pouring billions of dollars into AI. But it keeps laying off humans::The tech sector has kicked off the new year with a spate of fresh job cuts that are coming at the same time as the industry is doubling down on investments into artificial intelligence.
Is this not exactly what people said would happen? Is this not exactly the point of AI? Aside from the fact that layoffs have been going on for a year or more, of course.
This headline is gaining traction because it fits the pattern of what people expected to see. It’s confirmation bias.
Speaking from first hand experience, a lot of companies are coming down from their pandemic high. People spent a fuck load of money on technology products and services over the pandemic, and in 2023 they went back to spending money on traveling, concerts, brick and mortar shopping, and other in-person things.
I work for a company that has both online and brick and mortar products, and I can see it in my data. Customer behavior changed back to normal, which made tech businesses less profitable. And that made tech companies freak out and cut “expenses” to get back to growth.
AI is disruptive AF, but it’s not replacing engineers, designers, and PMs yet. And those are the jobs that are being cut. Companies are scaling back and doing less.
No, this is independent on AI. AI for big tech is a core product, like a car for BMW. The layoffs are completely unrelated to AI, and related to stock price and interest rates of borrowing money. None of the layoff employee has been substituted by AI. It’s pure old school finance
Unrelated news in a single title just to attract readers. Usual sh**y to ride the AI hate bandwagon