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According to report of Challenger, Gray & Christmas in May, over 4,000 people were laid off this year who lost their jobs because of Artificial Intelligence (AI). The firm has said that AI is the reason of 4.9% layoff in May.
According to the report between January to May, around 417,500 jobs were lost. It also mentioned, since 2009 when around 820,000 jobs were lost, these 5 months of 2023 has had the most number of layoff.
Labour expert and Senior Vice President of Challenger, Gray & Christmas said, “Consumer confidence is down to a six-month low and job openings are flattening. Companies appear to be putting the brakes on hiring in anticipation of a slowdown.” Another reason of layoff apart from AI, as per the report was business closure resulting in 19,600 people losing jobs. Behind 14,500 layoff market and economic conditions were mentioned and for 12,900 job losses no reason was provided.
As per report from Washington Post two copywriters lost their job because employers feel that ChatGPT can perform the job the at a lower price. Another Media company CNET, laid off reporters because they used AI for writing articles. Investment Bank Goldman Sachs speculated that AI will globally replace over 300 million full time jobs and around one-fifth of employment.
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