Key points
- $100b to be invested in expanding AI infrastructure
- Over 1,000 AI tools in use or under development
- Executives across industries replacing roles with AI tools
ISLAMABAD: Amazon chief executive Andy Jassy said on Tuesday that artificial intelligence is expected to reduce the company’s corporate headcount as efficiency improves.
In a memo to staff, Jassy stated, “We’ll need fewer people doing some of today’s tasks, and more people carrying out different types of roles.” He added that Amazon is deploying generative AI “across virtually every part of the company.”
Amazon, which employs over 1.5 million people globally, plans to invest $100 billion this year in expanding AI capabilities and the data centres supporting them—up from $83 billion the previous year, according to NBC News.
Jassy expressed confidence that “AI agents” would significantly reshape how people work and live. While many of these tools are still in development, he said they’re “coming quickly” and will accelerate the company’s ability to innovate for customers.
Currently, Amazon has more than 1,000 AI tools either in use or under development.
AI adoption
Jassy’s comments are likely to heighten concerns among office workers, as AI adoption continues to appeal to efficiency-focused executives. A Bloomberg Intelligence report recently suggested AI could displace up to 200,000 banking roles.
AI’s capabilities in software development have also been widely recognised. In May, cybersecurity firm CrowdStrike cut 5 per cent of its staff, citing AI-driven efficiencies across operations.
Shopify CEO Tobi Lütke said managers would need to justify any additional hiring by showing AI couldn’t do the job. “Having AI not just consult but do the work for our merchants is a huge shift,” he noted.
Duolingo CEO Luis von Ahn announced plans to gradually replace contract
