Google Reportedly Replacing Staff With AI
The steady march towards AI job automation continues — even at companies pioneering the tech.
According to a new report by The Information, search giant Google is looking to reassign or let go of sales workers whose jobs were automated by the company’s new AI tools.
While it’s unclear how many humans will end up being affected, it’s a clear sign of the times. Earlier this year, Google ushered in a new era of AI-powered ads. As part of the initiative, Google is trying to leverage AI tech to deliver new ad experiences, including automatically created assets that scrape content from existing ads and landing pages.
Some of these ads created by the company’s Performance Max feature can even change in real-time based on click-through rates to maximize visibility, a task that’s labor-intensive for human workers.
According to the Information, a growing number of advertisers have adopted PMax since, which has eliminated the need for some employees who specialized in selling ads for a particular Google service.
Per the report, almost half of the company’s 30,000-employee ad division was once dedicated to this kind of work.
It’s a notable shift for Google’s business, as advertising makes up a huge chunk of the company’s revenue. By replacing human workers, the company is presumably aiming to increase profit margins by cutting costs.
But at what cost? We’ve already seen several industries being affected by AI-driven job automation. Earlier this year, IBM CEO Arvind Krishna told Bloomberg that the company is slowing or suspending hiring for any jobs that could be done by an AI.
I could easily see 30 percent of that getting replaced by AI and automation over a five-year period, Krishna told the publication at the time, which means that in total, AI could replace up to 7,800 jobs.
German tabloid Bild, which is owned by media publisher Axel Springer, similarly announced that it would unfortunately be parting ways with colleagues who have tasks that in the digital world are performed by AI and/or automated processes, according to a leaked email obtained by German newspaper Frankfurter Allgemeine.
Certain low-level jobs in particular are on the chopping block amidst the rise of AI technologies.
It was [a] no-brainer for me to replace the entire [customer service] team with a bot, Suumit Shah, a 31-year-old CEO of an Indian e-commerce platform called Dukaan, told the Washington Post in October, which is like 100 times smarter, who is instant, and who cost me like 100th of what I used to pay to the support team.
In short, AI is already snatching up jobs left and right — and according to a study by the McKinsey Global Institute, that trend could accelerate faster than anybody expected.
Goldman Sachs found in its research report earlier this year that roughly 300 million jobs could soon be lost due to AI.
As technology advances, companies are increasingly turning to AI to automate tasks previously handled by humans. While this shift can result in increased efficiency and cost savings for businesses, it raises concerns about job security and the potential displacement of workers.
Google, a leader in the field of AI, is reportedly reassigning or laying off sales workers whose roles have been automated by the company’s new AI tools. The introduction of AI-powered ads has enabled Google to deliver new ad experiences, including automatically generated assets that scrape content from existing ads and landing pages. These ads can even adapt in real-time based on click-through rates, a task that previously required significant human effort.
The adoption of Google’s Performance Max feature by a growing number of advertisers has reduced the need for employees specializing in selling ads for specific Google services. Nearly half of Google’s 30,000 ad division employees were involved in such work in the past. By replacing human workers with AI, Google aims to increase profit margins by cutting costs in its advertising business, which contributes significantly to the company’s revenue.
The increasing automation of jobs through AI is not limited to Google. IBM CEO Arvind Krishna predicts that AI and automation could potentially replace up to 30 percent of jobs within the next five years, amounting to approximately 7,800 jobs. Other companies, such as German tabloid Bild, have also embraced automation, leading to layoffs in areas where AI and automated processes can perform tasks traditionally done by humans.
Low-level jobs, including customer service roles, are particularly vulnerable to automation. Companies like Dukaan, an Indian e-commerce platform, have replaced their entire customer service teams with AI-powered bots, citing cost savings and increased efficiency as key reasons for the switch.
The impact of AI-driven job automation is far-reaching and could lead to the loss of millions of jobs globally. A study by the McKinsey Global Institute suggests that the trend towards automation may accelerate at an unforeseen pace. Goldman Sachs research reports that around 300 million jobs could potentially be lost due to AI.
As AI continues to advance, the implications for the job market are significant. While automation offers undeniable benefits, such as increased productivity and reduced costs, the potential consequences for workers must be carefully considered. Efforts to upskill and reskill workers, as well as develop new job opportunities that complement AI technology, will be crucial to mitigate the negative effects of job automation.
