Amazon (AMZN) CEO Andy Jassy anticipates that generative artificial intelligence will reduce its corporate workforce in the next few years. The e-commerce giant is increasing its usage of the technology in almost all functions of the company, putting several jobs at risk.
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said in a message to employees. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.” While this could help boost Amazon’s profits, it could dramatically affect humans in the workforce, as cutting costs thanks to AI essentially cuts several salaries altogether.
“As we go through this transformation together, be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team’s brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams,” the Amazon CEO added.
Amazon Continues AI Push Despite Human Workforce Concerns
To keep the train rolling on its AI-driven initiatives, Amazon is investing billions into new data centers across the US. In recent weeks, the company has pledged to aggressively expand its data center footprint. Earlier this month, it pledged $10B to invest in new data centers in North Carolina and Pennsylvania. “Generative AI is driving increased demand for advanced cloud infrastructure and compute power…” Amazon wrote in an announcement. The company also announced plans to invest more than $5 billion in its new cloud infrastructure in Taiwan.
Furthermore, in March, Amazon began testing artificial intelligence-aided dubbing for select movies and shows offered on its Prime streaming service. A month before that, the company rolled out a generative-AI-infused Alexa. The moves are positive for AI fans. However, several employees were likely left with concerns over their futures at the e-commerce powerhouse.
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Amazon (AMZN) stock forecast models reflect optimism around these innovations, with 71 analysts setting price targets averaging $240. Current trading shows Amazon at $215, indicating potential 11% upside over the next 12 months.
